19 U.S.C. § 1499 — Examination of merchandise

Page 196 TITLE 19—CUSTOMS DUTIES § 1499 ‘‘the Tariff Schedules of the United States’’ in closing provisions, added subpars. (A) to (C), and struck out former subpars. (A) to (C) which read as follows: ‘‘(A) schedule 3, ‘‘(B) parts 1, 4A, 7B, 12A, 12D, and 13B of schedule 7, and ‘‘(C) parts 2 and 3 of the Appendix,’’. 1984—Subsec. (a)(1). Pub. L. 98–573 substituted ‘‘$1,250’’ for ‘‘$250’’ and inserted provision that this paragraph does not apply to articles valued in excess of $250 classified in schedule 3, parts 1, 4A, 7B, 12A, 12D, and 13B of schedule 7, and parts 2 and 3 of the Appendix, of the Tariff Schedules, or to any other article for which formal entry is required without regard to value. 1980—Subsec. (a). Pub. L. 96–609 added par. (2) and re- designated former pars. (2) to (11) as (3) to (12), respec- tively. 1953—Subsec. (a)(1). Act Aug. 8, 1953, § 16(d), increased valuation figure with respect to informal entries from $100 to $250, and inserted provisions with respect to pos- sible variation for different classes or kinds of mer- chandise and different classes of transactions. Subsec. (a)(11). Act Aug. 8, 1953, § 16(e), substituted ‘‘paragraph 1631 of section 1201 of this title’’ for ‘‘sec- tions 472 to 574 of this title’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–418 effective Jan. 1, 1989, and applicable with respect to articles entered on or after such date, see section 1217(b)(1) of Pub. L. 100–418, set out as an Effective Date note under section 3001 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–573 effective on 15th day after Oct. 30, 1984, see section 214(a), (b) of Pub. L. 98–573, set out as a note under section 1304 of this title. EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS PROVISION Amendment by act Aug. 8, 1953, effective on and after thirtieth day following Aug. 8, 1953, and savings provi- sion, see notes set out under section 1304 of this title. CUSTOMS DECLARATIONS; PROXIMITY OF LIVESTOCK Pub. L. 108–90, title V, § 513, Oct. 1, 2003, 117 Stat. 1154, provided that: ‘‘For fiscal year 2004 and thereafter, none of the funds appropriated or otherwise made avail- able to the Department of Homeland Security may be used for the production of customs declarations that do not inquire whether the passenger had been in the prox- imity of livestock.’’ § 1499. Examination of merchandise (a) Entry examination (1) In general Imported merchandise that is required by law or regulation to be inspected, examined, or appraised shall not be delivered from cus- toms custody (except under such bond or other security as may be prescribed by the Sec- retary to assure compliance with all applica- ble laws, regulations, and instructions which the Secretary or the Customs Service is au- thorized to enforce) until the merchandise has been inspected, appraised, or examined and is reported by the Customs Service to have been truly and correctly invoiced and found to com- ply with the requirements of the laws of the United States. (2) Examination The Customs Service— (A) shall designate the packages or quan- tities of merchandise covered by any invoice or entry which are to be opened and exam- ined for the purpose of appraisement or oth- erwise; (B) shall order such packages or quantities to be sent to such place as is designated by the Secretary by regulation for such pur- pose; (C) may require such additional packages or quantities as the Secretary considers nec- essary for such purpose; and (D) shall inspect a sufficient number of shipments, and shall examine a sufficient number of entries, to ensure compliance with the laws enforced by the Customs Serv- ice. (3) Unspecified articles If any package contains any article not spec- ified in the invoice or entry and, in the opin- ion of the Customs Service, the article was omitted from the invoice or entry— (A) with fraudulent intent on the part of the seller, shipper, owner, agent, importer of record, or entry filer, the contents of the en- tire package in which such article is found shall be subject to seizure; or (B) without fraudulent intent, the value of the article shall be added to the entry and the duties, fees, and taxes thereon paid ac- cordingly. (4) Deficiency If a deficiency is found in quantity, weight, or measure in the examination of any pack- age, the person finding the deficiency shall make a report thereof to the Customs Service. The Customs Service shall make allowance for the deficiency in the liquidation of duties. (5) Information required for release If an examination is conducted, any infor- mation required for release shall be provided, either electronically or in paper form, to the Customs Service at the port of examination. The absence of such information does not limit the authority of the Customs Service to conduct an examination. (b) Testing laboratories (1) Accreditation of private testing laboratories The Customs Service shall establish and im- plement a procedure, under regulations pro- mulgated by the Secretary, for accrediting private laboratories within the United States which may be used to perform tests (that would otherwise be performed by Customs Service laboratories) to establish the charac- teristics, quantities, or composition of im- ported merchandise. Such regulations— (A) shall establish the conditions required for the laboratories to receive and maintain accreditation for purposes of this subsection; (B) shall establish the conditions regard- ing the suspension and revocation of accredi- tation, which may include the imposition of a monetary penalty not to exceed $100,000 and such penalty is in addition to the recov- ery, from a gauger or laboratory accredited under paragraph (1), of any loss of revenue that may have occurred, but the Customs Service— Page 197 TITLE 19—CUSTOMS DUTIES § 1499 (i) may seek to recover lost revenue only in cases where the gauger or laboratory in- tentionally falsified the analysis or gaug- ing report in collusion with the importer; and (ii) shall neither assess penalties nor seek to recover lost revenue because of a good faith difference of professional opin- ion; and (C) may provide for the imposition of a reasonable charge for accreditation and peri- odic reaccreditation. The collection of any charge for accreditation and reaccreditation under this section is not prohibited by section 58c(e)(6) of this title. (2) Appeal of adverse accreditation decisions A laboratory applying for accreditation, or that is accredited, under this section may con- test any decision or order of the Customs Service denying, suspending, or revoking ac- creditation, or imposing a monetary penalty, by commencing an action in accordance with chapter 169 of title 28 in the Court of Inter- national Trade within 60 days after issuance of the decision or order. (3) Testing by accredited laboratories When requested by an importer of record of merchandise, the Customs Service shall au- thorize the release to the importer of a rep- resentative sample of the merchandise for testing, at the expense of the importer, by a laboratory accredited under paragraph (1). The testing results from a laboratory accredited under paragraph (1) that are submitted by an importer of record with respect to merchan- dise in an entry shall, in the absence of testing results obtained from a Customs Service lab- oratory, be accepted by the Customs Service if the importer of record certifies that the sam- ple tested was taken from the merchandise in the entry. Nothing in this subsection shall be construed to limit in any way or preclude the authority of the Customs Service to test or analyze any sample or merchandise independ- ently. (4) Availability of testing procedure, meth- odologies, and information Testing procedures and methodologies used by the Customs Service, and information re- sulting from any testing conducted by the Customs Service, shall be made available as follows: (A) Testing procedures and methodologies shall be made available upon request to any person unless the procedures or methodolo- gies are— (i) proprietary to the holder of a copy- right or patent related to such procedures or methodologies, or (ii) developed by the Customs Service for enforcement purposes. (B) Information resulting from testing shall be made available upon request to the importer of record and any agent thereof un- less the information reveals information which is— (i) proprietary to the holder of a copy- right or patent; or (ii) developed by the Customs Service for enforcement purposes. (5) Miscellaneous provisions For purposes of this subsection— (A) any reference to a private laboratory includes a reference to a private gauger; and (B) accreditation of private laboratories extends only to the performance of functions by such laboratories that are within the scope of those responsibilities for determina- tions of the elements relating to admissi- bility, quantity, composition, or character- istics of imported merchandise that are vest- ed in, or delegated to, the Customs Service. (c) Detentions Except in the case of merchandise with respect to which the determination of admissibility is vested in an agency other than the Customs Service, the following apply: (1) In general Within the 5-day period (excluding weekends and holidays) following the date on which merchandise is presented for customs exam- ination, the Customs Service shall decide whether to release or detain the merchandise. Merchandise which is not released within such 5-day period shall be considered to be detained merchandise. (2) Notice of detention The Customs Service shall issue a notice to the importer or other party having an interest in detained merchandise no later than 5 days, excluding weekends and holidays, after the de- cision to detain the merchandise is made. The notice shall advise the importer or other in- terested party of— (A) the initiation of the detention; (B) the specific reason for the detention; (C) the anticipated length of the detention; (D) the nature of the tests or inquiries to be conducted; and (E) the nature of any information which, if supplied to the Customs Service, may accel- erate the disposition of the detention. (3) Testing results Upon request by the importer or other party having an interest in detained merchandise, the Customs Service shall provide the party with copies of the results of any testing con- ducted by the Customs Service on the mer- chandise and a description of the testing pro- cedures and methodologies (unless such proce- dures or methodologies are proprietary to the holder of a copyright or patent or were devel- oped by the Customs Service for enforcement purposes). The results and test description shall be in sufficient detail to permit the du- plication and analysis of the testing and the results. (4) Seizure and forfeiture If otherwise provided by law, detained mer- chandise may be seized and forfeited. (5) Effect of failure to make determination (A) The failure by the Customs Service to make a final determination with respect to the admissibility of detained merchandise Page 198 TITLE 19—CUSTOMS DUTIES § 1500 within 30 days after the merchandise has been presented for customs examination, or such longer period if specifically authorized by law, shall be treated as a decision of the Customs Service to exclude the merchandise for pur- poses of section 1514(a)(4) of this title. (B) For purposes of section 1581 of title 28, a protest against the decision to exclude the merchandise which has not been allowed or de- nied in whole or in part before the 30th day after the day on which the protest was filed shall be treated as having been denied on such 30th day. (C) Notwithstanding section 2639 of title 28, once an action respecting a detention is com- menced, unless the Customs Service estab- lishes by a preponderance of the evidence that an admissibility decision has not been reached for good cause, the court shall grant the ap- propriate relief which may include, but is not limited to, an order to cancel the detention and release the merchandise. (June 17, 1930, ch. 497, title IV, § 499, 46 Stat. 728; June 25, 1938, ch. 679, §§ 15, 16(a), 52 Stat. 1084; Pub. L. 91–271, title III, § 301(k), June 2, 1970, 84 Stat. 289; Pub. L. 103–182, title VI, § 613(a), Dec. 8, 1993, 107 Stat. 2171.) Editorial Notes PRIOR PROVISIONS Provisions similar to those in this section were con- tained in act Sept. 21, 1922, ch. 356, title IV, § 499, 42 Stat. 965. That section was superseded by section 499 of act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act. A prior provision prohibiting delivery of merchandise liable to be inspected or appraised, until it had been in- spected or appraised, or until the packages sent to be inspected or appraised, should be found correctly invoiced, and be so reported, with a further provision as to the taking of bonds conditioned for delivery of the merchandise, and the forfeiture of such bonds, was con- tained in R.S. § 2899. Provisions substantially similar to those in this sec- tion concerning the number of packages to be examined (not including the provision for designation of a less number by the Secretary of the Treasury) and con- cerning packages found to contain articles not speci- fied in the invoice, with a further provision for remis- sion of the forfeiture, were contained in R.S. § 2901. A prior provision, concerning deficiencies somewhat similar to that in this section, was contained in R.S. § 2921. A special provision concerning the number of pack- ages to be examined and appraised at the port of New York was contained in R.S. § 2939. A provision concerning returns by weighers, gaugers, and measurers, was contained in R.S. § 2890. All of the foregoing sections of the Revised Statutes were repealed by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989. AMENDMENTS 1993—Pub. L. 103–182 amended section generally, sub- stituting present provisions for provisions which re- quired imported merchandise to be inspected, exam- ined, appraised, and reported by appropriate customs officer to have been truly and correctly invoiced and found to comply with requirements of laws of the United States prior to release of such merchandise from customs custody. 1970—Pub. L. 91–271 substituted references to appro- priate customs officer or such officer for references to collector or appraiser wherever appearing, and struck out references to duties of appraiser. 1938—Act June 25, 1938, amended section generally and among other changes inserted provision relating to invalidity of appraisements made after effective date of Customs Administrative Act of 1938. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1970 AMENDMENT For effective date of amendment by Pub. L. 91–271, see section 203 of Pub. L. 91–271, set out as a note under section 1500 of this title. EFFECTIVE DATE OF 1938 AMENDMENT Amendment by act June 25, 1938, effective on thir- tieth day following June 25, 1938, except as otherwise specifically provided, see section 37 of act June 25, 1938, set out as a note under section 1401 of this title. TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and li- abilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- ber 25, 2002, as modified, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Se- curity, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended gen- erally by Pub. L. 114–125, and section 802(b) of Pub. L. 114–125, set out as a note under section 211 of Title 6. EXISTING LABORATORIES Pub. L. 103–182, title VI, § 613(b), Dec. 8, 1993, 107 Stat. 2174, which related to accreditation of private testing laboratories, was repealed by Pub. L. 116–113, title VI, § 601, Jan. 29, 2020, 134 Stat. 78, effective on the date the USMCA entered into force (July 1, 2020). Executive Documents TRANSFER OF FUNCTIONS Functions of all other officers of Department of the Treasury and functions of all agencies and employees of such Department transferred, with certain exceptions, to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of such officers, agencies, and employees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Em- ployees. § 1500. Appraisement, classification, and liquida- tion procedure The Customs Service shall, under rules and regulations prescribed by the Secretary— (a) fix the final appraisement of merchandise by ascertaining or estimating the value there- of, under section 1401a of this title, by all rea- sonable ways and means in his power, any statement of cost or costs of production in any invoice, affidavit, declaration, other document to the contrary notwithstanding; (b) fix the final classification and rate of duty applicable to such merchandise; (c) fix the final amount of duty to be paid on such merchandise and determine any in- creased or additional duties, taxes, and fees due or any excess of duties, taxes, and fees de- posited; (d) liquidate the entry and reconciliation, if any, of such merchandise; and