19 U.S.C. § 1562 | Manipulation in warehouse

Merchandise shall only be withdrawn from a bonded warehouse in such quantity and in such condition as the Secretary of the Treasury shall by regulation prescribe. Upon permission being granted by the Secretary of the Treasury, and under customs supervision, at the expense of the proprietor, merchandise may be cleaned, sorted, repacked, or otherwise changed in condition, but not manufactured, in bonded warehouses established for that purpose and be withdrawn therefrom—

(1)

section 4502 of this title section 4534(a) of this title without payment of duties for exportation to a USMCA country, as defined in , if the merchandise is of a kind described in any of paragraphs (1) through (8) of ;

(2)

section 4534(a) of this title for exportation to a USMCA country if the merchandise consists of goods subject to USMCA drawback, as defined in , except that—

(A)

the merchandise may not be withdrawn from warehouse without assessment of a duty on the merchandise in its condition and quantity, and at its weight, at the time of withdrawal from the warehouse with such additions to or deductions from the final appraised value as may be necessary by reason of change in condition, and

(B)

section 4534(e) of this title duty shall be paid on the merchandise before the 61st day after the date of exportation, but upon the presentation, before such 61st day, of satisfactory evidence of the amount of any customs duties paid to the USMCA country on the merchandise, the customs duty may be waived or reduced (subject to ) in an amount that does not exceed the lesser of—

(i)

the total amount of customs duties paid or owed on the merchandise on importation into the United States, or

(ii)

the total amount of customs duties paid on the merchandise to the USMCA country;

(3)

without payment of duties for exportation to any foreign country other than to Chile, to a USMCA country, or to Canada when exports to that country are subject to paragraph (4);

(4)

without payment of duties for exportation to Canada (if that country ceases to be a USMCA country and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter terminates), but the exemption from the payment of duties under this paragraph applies only in the case of an exportation during the period such Agreement is in operation of merchandise that—

(A)

is only cleaned, sorted, or repacked in a bonded warehouse, or

(B)

is a drawback eligible good under section 204(a) of the United States-Canada Free-Trade Agreement Implementation Act of 1988;

(5)

without payment of duties for shipment to the Virgin Islands, American Samoa, Wake Island, Midway Island, Kingman Reef, Johnston Island or the island of Guam; and

(6)

(A)

without payment of duties for exportation to Chile, if the merchandise is of a kind described in any of paragraphs (1) through (5) of section 203(a) of the United States-Chile Free Trade Agreement Implementation Act; and

(B)

for exportation to Chile if the merchandise consists of goods subject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, except that—

(i)

the merchandise may not be withdrawn from warehouse without assessment of a duty on the merchandise in its condition and quantity, and at its weight, at the time of withdrawal from the warehouse with such additions to, or deductions from, the final appraised value as may be necessary by reason of a change in condition, and

(ii)

duty shall be paid on the merchandise before the 61st day after the date of exportation, except that such duties may be waived or reduced by—

(I)

January 1, 2004 100 percent during the 8-year period beginning on ,

(II)

January 1, 2012 75 percent during the 1-year period beginning on ,

(III)

January 1, 2013 50 percent during the 1-year period beginning on , and

(IV)

January 1, 2014 25 percent during the 1-year period beginning on .

Merchandise may be withdrawn from bonded warehouse for consumption, or for exportation to Canada if the duty exemption under paragraph (4) of the preceding sentence does not apply, upon the payment of duties accruing thereon, in its condition and quantity, and at its weight, at the time of withdrawal from warehouse, with such additions to or deductions from the final appraised value as may be necessary by reason of change in condition. The basis for the assessment of duties on such merchandise so withdrawn for consumption shall be the adjusted final appraised value, and if the rate of duty is based upon or regulated in any manner by the value of the merchandise, such rate shall be based upon or regulated by such adjusted final appraised value. The scouring or carbonizing of wool shall not be considered a process of manufacture within the provisions of this section. Under such regulations as the Secretary of the Treasury shall prescribe, imported merchandise which has been entered and which has remained in continuous customs custody may be manipulated in accordance with the provisions of this section under customs supervision and at the risk and expense of the consignee, but elsewhere than in a bonded warehouse, in cases where neither the protection of the revenue nor the proper conduct of customs business requires that such manipulation be done in bonded warehouse.

June 17, 1930, ch. 497 46 Stat. 745 June 25, 1938, ch. 679 52 Stat. 1077 Aug. 8, 1953, ch. 397, § 18(f)67 Stat. 518 June 30, 1955, ch. 258, § 2(a)(5)69 Stat. 242 Pub. L. 91–271, title III, § 301(b)June 2, 197084 Stat. 287 Pub. L. 100–449, title II, § 204(c)(4)Sept. 28, 1988102 Stat. 1863 Pub. L. 103–182, title II, § 203(b)(4)Dec. 8, 1993107 Stat. 2090 Pub. L. 108–77, title II, § 203(b)(4)Sept. 3, 2003117 Stat. 928 Pub. L. 109–280, title XIV, § 1635(e)Aug. 17, 2006120 Stat. 1170 Pub. L. 116–113, title V, § 501(e)(4)Jan. 29, 2020134 Stat. 69 Pub. L. 116–260, div. O, title VI, § 601(c)(2)(A)(iv)Dec. 27, 2020134 Stat. 2150(, title IV, § 562, ; , §§ 2, 25, , 1088; , ; , ; , , ; , , ; , , ; , , ; , , ; , , ; , , .)

Amendment of Section

section 107(c) of Pub. L. 108–77For termination of amendment by , see Effective and Termination Dates of 2003 Amendment note below.

section 501(c) of Pub. L. 100–449For termination of amendment by , see Effective and Termination Dates of 1988 Amendment note below.

Editorial Notes

References in Text

section 204 of Pub. L. 100–449 section 2112 of this titleSection 204 of the United States-Canada Free-Trade Agreement Implementation Act of 1988, referred to in par. (4)(B), is , which is set out in a note under .

section 203(a) of Pub. L. 108–77 section 3805 of this titleSection 203(a) of the United States-Chile Free Trade Agreement Implementation Act, referred to in par. (6), is , which is set out in a note under .

Prior Provisions

act Sept. 21, 1922, ch. 356, title IV, § 562 42 Stat. 978June 17, 1930Provisions similar to those in this section were contained in , . That section was superseded by section 562 of act , comprising this section, and repealed by section 651(a)(1) of the 1930 act.

act Sept. 21, 1922, ch. 356, title IV, § 642 42 Stat. 989Prior provisions substantially the same, in effect, as those in this section with respect to the quantity of merchandise which might be withdrawn, were contained in R.S. § 2980, prior to repeal by , .

Amendments

Pub. L. 116–113, § 501(e)(4)(A)section 3301(4) of this title section 3333(a) of this title2020—Par. (1). , added par. (1) and struck out former par. (1) which read as follows: “without payment of duties for exportation to a NAFTA country, as defined in , if the merchandise is of a kind described in any of paragraphs (1) through (8) of ;”.

Pub. L. 116–113, § 501(e)(4)(B)section 4534(a) of this title section 3333(a) of this titlePar. (2). , substituted “” for “”, in introductory provisions, and “USMCA” for “NAFTA” wherever appearing.

Pub. L. 116–260 section 4534(e) of this title section 1508(b)(2)(B) of this titlePar. (2)(B). substituted “(subject to )” for “(subject to )” in introductory provisions.

Pub. L. 116–113, § 501(e)(4)(C)Pars. (3), (4). , substituted “USMCA” for “NAFTA” in two places.

Pub. L. 109–2802006—, in introductory provisions, substituted “Merchandise shall only be withdrawn from a bonded warehouse in such quantity and in such condition as the Secretary of the Treasury shall by regulation prescribe. Upon permission” for “Unless by special authority of the Secretary of the Treasury, no merchandise shall be withdrawn from bonded warehouse in less quantity than an entire bale, cask, box, or other package; or, if in bulk, in the entire quantity imported or in a quantity not less than one ton weight. All merchandise so withdrawn shall be withdrawn in the original packages in which imported unless, upon the application of the importer, it appears to be the appropriate customs officer that it is necessary to the safety or preservation of the merchandise to repack or transfer the same; except that upon permission therefor”.

Pub. L. 108–772003—Par. (3). , §§ 107(c), 203(b)(4)(A), temporarily substituted “to Chile, to a NAFTA country,” for “to a NAFTA country”. See Effective and Termination Dates of 2003 Amendment note below.

Pub. L. 108–77Par. (6). , §§ 107(c), 203(b)(4)(D), temporarily added par. (6). See Effective and Termination Dates of 2003 Amendment note below.

Pub. L. 103–1821993— substituted “be withdrawn therefrom—” for “be withdrawn therefrom without payment of duties—” in second sentence, substituted “paragraph (4) of the preceding sentence” for “paragraph (1) of the preceding sentence” in third sentence, added pars. (1) to (5), and struck out former pars. (1) to (3) which read as follows:

January 1, 1994“(1) for exportation to Canada, but on or after , or such later date as may be proclaimed by the President under section 204(b)(2)(B) of the United States-Canada Free-Trade Agreement Implementation Act of 1988, such exemption from the payment of duties applies only in the case of the exportation to Canada of merchandise that—

“(A) is only cleaned, sorted, or repacked in a bonded warehouse, or

“(B) is a drawback eligible good under section 204(a) of such Act of 1988;

“(2) for exportation to any foreign country except Canada; and

“(3) for shipment to the Virgin Islands, American Samoa, Wake Island, Midway Island, Kingman Reef, Johnston Island or the island of Guam.”

Pub. L. 100–449Provided1988— temporarily substituted the except clause and following sentence for proviso at end of second section which read as follows: “: , That upon permission therefor being granted by the Secretary of the Treasury, and under customs supervision, at the expense of the proprietor, merchandise may be cleaned, sorted, repacked, or otherwise changed in condition, but not manufactured, in bonded warehouses established for that purpose and be withdrawn therefrom for exportation to a foreign country or for shipment to the Virgin Islands, American Samoa, Wake Island, Midway Islands, Kingman Reef, Johnston Island, or the island of Guam, without payment of the duties, or for consumption, upon payment of the duties accruing thereon, in its condition and quantity, and at its weight, at the time of withdrawal from warehouse, with such additions to or deductions from the final appraised value as may be necessary by reason of change in condition.” See Effective and Termination Dates of 1988 Amendment note below.

Pub. L. 91–2711970— substituted reference to appropriate customs officer for reference to collector.

June 30, 19551955—Act , inserted “Johnston Island”.

Aug. 8, 19531953—Act , in third sentence struck out “the entered value or” after “consumption shall be”, “whichever is higher,” after “the adjusted final appraised value,”, and “; but for the purpose of the ascertainment and assessment of additional duties under section 1489 of this chapter adjustments of the final appraised value shall be disregarded” after “such adjusted final appraised value”.

June 25, 19381938—Act , inserted sentence providing for manipulation of imported merchandise entering and remaining in continuous customs custody in cases where neither the protection of the revenue nor proper conduct of business requires such manipulation be done in a bonded warehouse, and inserted “Wake Island, Midway Islands, Kingman Reef” before “or the island of Guam”.

Statutory Notes and Related Subsidiaries

Effective Date of 2020 Amendment

Pub. L. 116–260July 1, 2020section 601(h) of div. O of Pub. L. 116–260 section 81c of this titleAmendment by effective , see , set out as a note under .

Pub. L. 116–113July 1, 2020section 501(g) of Pub. L. 116–113 section 81c of this titleAmendment by effective on the date the USMCA enters into force () and applicable with respect to goods entered, or withdrawn from warehouse for consumption, on or after that date, see , set out as a note under .

Effective Date of 2006 Amendment

Pub. L. 109–280Aug. 17, 2006section 1641 of Pub. L. 109–280 section 58c of this titleAmendment by applicable with respect to goods entered, or withdrawn from warehouse for consumption, on or after the 15th day after , see , set out as a note under .

Effective and Termination Dates of 2003 Amendment

Pub. L. 108–77Jan. 1, 2004Pub. L. 108–77 section 3805 of this titleAmendment by effective on the date the United States-Chile Free Trade Agreement enters into force (), and to cease to be effective on the date the Agreement ceases to be in force, see section 107(a), (c) of , set out in a note under .

Effective Date of 1993 Amendment

Pub. L. 103–182Jan. 1, 1996Jan. 1, 2001section 213(c) of Pub. L. 103–182 section 3331 of this titleAmendment by applicable (1) with respect to exports from the United States to Canada on , if Canada is a NAFTA country on that date and after such date for so long as Canada continues to be a NAFTA country and (2) with respect to exports from the United States to Mexico on , if Mexico is a NAFTA country on that date and after such date for so long as Mexico continues to be a NAFTA country, see , formerly set out as an Effective Date note under former .

Effective and Termination Dates of 1988 Amendment

Pub. L. 100–449Jan. 1, 1989Pub. L. 100–449 section 2112 of this titleAmendment by effective on date the United States-Canada Free-Trade Agreement enters into force (), and to cease to have effect on date Agreement ceases to be in force, see section 501(a), (c) of , set out in a note under .

Effective Date of 1970 Amendment

Pub. L. 91–271 section 203 of Pub. L. 91–271 section 1500 of this titleFor effective date of amendment by , see , set out as a note under .

Effective Date of 1955 Amendment

June 30, 1955July 1, 1955section 1401 of this titleAmendment by act , effective , see note set out under .

Effective Date of 1953 Amendment; Savings Provision

Aug. 8, 1953Aug. 8, 1953section 1304 of this titleAmendment by act , effective on and after thirtieth day following , and savings provision, see notes set out under .

Effective Date of 1938 Amendment

June 25, 1938June 25, 1938June 25, 1938section 1401 of this titleAmendment by act , effective on thirtieth day following , except as otherwise specifically provided, see section 37 of act , set out as a note under .