19 U.S.C. § 1311 — Bonded manufacturing warehouses

Page 76 TITLE 19—CUSTOMS DUTIES § 1310 this section] shall apply only with respect to articles withdrawn as provided in section 309(a) of the Tariff Act of 1930, as amended [subsec. (a) of this section], on or after the date of the enactment of this Act [July 7, 1960].’’ 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. 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. § 1310. Free importation of merchandise recov- ered from sunken and abandoned vessels Whenever any vessel laden with merchandise, in whole or in part subject to duty, has been sunk in any river, harbor, bay, or waters subject to the jurisdiction of the United States, and within its limits, for the period of two years and is abandoned by the owner thereof, any person who may raise such vessel shall be permitted to bring any merchandise recovered therefrom into the port nearest to the place where such vessel was so raised free from the payment of any duty thereupon, but under such regulations as the Secretary of the Treasury may prescribe. (June 17, 1930, ch. 497, title III, § 310, 46 Stat. 691.) Editorial Notes PRIOR PROVISIONS Provisions similar to those in this section were con- tained in act Oct. 3, 1913, ch. 16, § IV, L, 38 Stat. 197, su- perseding similar provisions of previous tariff acts. That section was superseded by act Sept. 21, 1922, ch. 356, title III, § 310, 42 Stat. 938, and repealed by section 321 of that act. Section 310 of act Sept. 21, 1922, was su- perseded by section 310 of act June 17, 1930, and re- pealed by section 651(a)(1) of the 1930 act. § 1311. Bonded manufacturing warehouses All articles manufactured in whole or in part of imported materials, or of materials subject to internal-revenue tax, and intended for expor- tation without being charged with duty, and without having an internal-revenue stamp af- fixed thereto, shall, under such regulations as the Secretary of the Treasury may prescribe, in order to be so manufactured and exported, be made and manufactured in bonded warehouses similar to those known and designated in Treas- ury Regulations as bonded warehouses, class six: Provided, That the manufacturer of such articles shall first give satisfactory bonds for the faith- ful observance of all the provisions of law and of such regulations as shall be prescribed by the Secretary of the Treasury: Provided further, That the manufacture of distilled spirits from grain, starch, molasses, or sugar, including all dilu- tions or mixtures of them or either of them, shall not be permitted in such manufacturing warehouses. Whenever goods manufactured in any bonded warehouse established under the provisions of the preceding paragraph shall be exported di- rectly therefrom or shall be duly laden for transportation and immediate exportation under the supervision of the proper officer who shall be duly designated for that purpose, such goods shall be exempt from duty and from the requirements relating to revenue stamps. No flour, manufactured in a bonded manufac- turing warehouse from wheat imported after ninety days after June 17, 1930, shall be with- drawn from such warehouse for exportation without payment of a duty on such imported wheat equal to any reduction in duty which by treaty will apply in respect of such flour in the country to which it is to be exported. Any materials used in the manufacture of such goods, and any packages, coverings, vessels, brands, and labels used in putting up the same may, under the regulations of the Secretary of the Treasury, be conveyed without the payment of revenue tax or duty into any bonded manufac- turing warehouse, and imported goods may, under the aforesaid regulations, be transferred without the exaction of duty from any bonded warehouse into any bonded manufacturing ware- house; but this privilege shall not be held to apply to implements, machinery, or apparatus to be used in the construction or repair of any bonded manufacturing warehouse or for the prosecution of the business carried on therein. Articles or materials received into such bond- ed manufacturing warehouse or articles manu- factured therefrom may be withdrawn or re- moved therefrom for direct shipment and expor- tation or for transportation and immediate ex- portation in bond to foreign countries or to the Philippine Islands under the supervision of the officer duly designated therefor by the appro- priate customs officer of the port, who shall cer- tify to such shipment and exportation, or lad- ening for transportation, as the case may be, de- scribing the articles by their mark or otherwise, the quantity, the date of exportation, and the name of the vessel: Provided, That the by-prod- ucts incident to the processes of manufacture, including waste derived from cleaning rice in bonded warehouses under the Act of March 24, 1874, ch. 65, 18 Stat. 24, in said bonded ware- houses may be withdrawn for domestic con- sumption on the payment of duty equal to the duty which would be assessed and collected by law if such waste or by-products were imported from a foreign country: Provided, That all waste material may be destroyed under Government supervision. All labor performed and services rendered under these provisions shall be under the supervision of a duly designated officer of the customs and at the expense of the manufac- turer. A careful account shall be kept by the appro- priate customs officer of all merchandise deliv- ered by him to any bonded manufacturing ware- house, and a sworn monthly return, verified by the customs officers in charge, shall be made by the manufacturer containing a detailed state- ment of all imported merchandise used by him in the manufacture of exported articles. Before commencing business the proprietor of any manufacturing warehouse shall file with the Secretary of the Treasury a list of all the arti- cles intended to be manufactured in such ware- house, and state the formula of manufacture and the names and quantities of the ingredients to be used therein. Page 77 TITLE 19—CUSTOMS DUTIES § 1311 1 See References in Text note below. Articles manufactured under these provisions may be withdrawn under such regulations as the Secretary of the Treasury may prescribe for transportation and delivery into any bonded warehouse for the sole purpose of export there- from: Provided, That cigars manufactured in whole of tobacco imported from any one coun- try, made and manufactured in such bonded manufacturing warehouses, may be withdrawn for home consumption upon the payment of the duties on such tobacco in its condition as im- ported under such regulations as the Secretary of the Treasury may prescribe, and the payment of the internal-revenue tax accruing on such ci- gars in their condition as withdrawn, and the boxes or packages containing such cigars shall be stamped to indicate their character, origin of tobacco from which made, and place of manufac- ture. The provisions of section 3433 of the Revised Statutes shall, so far as may be practicable, apply to any bonded manufacturing warehouse established under this chapter and to the mer- chandise conveyed therein. Distilled spirits and wines which are rectified in bonded manufacturing warehouses, class six, and distilled spirits which are reduced in proof and bottled in such warehouses, shall be deemed to have been manufactured within the meaning of this section, and may be withdrawn as herein- before provided, and likewise for shipment in bond to Puerto Rico, subject to the provisions of this section, and under such regulations as the Secretary of the Treasury may prescribe, there to be withdrawn for consumption or be rewarehoused and subsequently withdrawn for consumption: Provided, That upon withdrawal in Puerto Rico for consumption, the duties im- posed by the customs laws of the United States shall be collected on all imported merchandise (in its condition as imported) and imported con- tainers used in the manufacture and putting up of such spirits and wines in such warehouses. No article manufactured in a bonded ware- house from materials that are goods subject to drawback,1 as defined in section 4534(a) of this title, may be withdrawn from warehouse for ex- portation to a country,1 as defined in section 4502 of this title, without assessment of a duty on the materials in their condition and quan- tity, and at their weight, at the time of importa- tion into the United States. The duty shall be paid before the 61st day after the date of expor- tation, except that upon the presentation, be- fore such 61st day, of satisfactory evidence of the amount of any customs duties paid to the country 1 on the article, the customs duty may be waived or reduced (subject to section 4534(e) of this title) in an amount that does not exceed the lesser of— (1) the total amount of customs duties paid or owed on the materials on importation into the United States, or (2) the total amount of customs duties paid on the article to the country.1 If Canada ceases to be a country 1 and the sus- pension of the operation of the United States- Canada Free-Trade Agreement thereafter termi- nates, no article manufactured in a bonded warehouse, except to the extent that such arti- cle is made from an article that is a drawback eligible good under section 204(a) of the United States-Canada Free-Trade Agreement Imple- mentation Act of 1988, may be withdrawn from such warehouse for exportation to Canada dur- ing the period such Agreement is in operation without payment of a duty on such imported merchandise in its condition, and at the rate of duty in effect, at the time of importation. No article manufactured in a bonded ware- house from materials that are goods subject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agree- ment Implementation Act, may be withdrawn from warehouse for exportation to Chile without assessment of a duty on the materials in their condition and quantity, and at their weight, at the time of importation into the United States. The duty shall be paid before the 61st day after the date of exportation, except that the duty may be waived or reduced by— (1) 100 percent during the 8-year period be- ginning on January 1, 2004; (2) 75 percent during the 1-year period begin- ning on January 1, 2012; (3) 50 percent during the 1-year period begin- ning on January 1, 2013; and (4) 25 percent during the 1-year period begin- ning on January 1, 2014. (June 17, 1930, ch. 497, title III, § 311, 46 Stat. 691; June 26, 1936, ch. 830, title IV, § 404, 49 Stat. 1960; Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84 Stat. 287; Pub. L. 96–39, title VIII, § 856(b), July 26, 1979, 93 Stat. 295; Pub. L. 97–446, title II, § 202, Jan. 12, 1983, 96 Stat. 2350; Pub. L. 100–449, title II, § 204(c)(1), Sept. 28, 1988, 102 Stat. 1862; Pub. L. 103–182, title II, § 203(b)(1), Dec. 8, 1993, 107 Stat. 2088; Pub. L. 108–77, title II, § 203(b)(1), Sept. 3, 2003, 117 Stat. 925; Pub. L. 116–113, title V, § 501(e)(1), Jan. 29, 2020, 134 Stat. 68; Pub. L. 116–260, div. O, title VI, § 601(c)(2)(A)(i), Dec. 27, 2020, 134 Stat. 2150.) AMENDMENT OF SECTION For termination of amendment by section 107(c) of Pub. L. 108–77, see Effective and Ter- mination Dates of 2003 Amendment note below. For termination of amendment by section 501(c) of Pub. L. 100–449, see Effective and Ter- mination Dates of 1988 Amendment note below. Editorial Notes REFERENCES IN TEXT Act March 24, 1874, referred to in text, which provided that ‘‘importers’ bonded warehouses, to be used for the storage and cleansing of imported rice intended for ex- portation to foreign countries, may be established at any port of entry in the United States, under such rules and regulations as the Secretary of the Treasury may prescribe’’, was repealed by act Sept. 21, 1922, ch. 356, title IV, § 643, 42 Stat. 989. R.S. § 3433, referred to in text, was amended by act Feb. 27, 1877, ch. 69, 19 Stat. 248. The provisions of R.S. § 3433 as they existed prior to the amendment by act Feb. 27, 1877, were reenacted as section 10 of act Oct. 1, 1890, ch. 1244, 26 Stat. 614. Section 55 of said act Oct. 1, 1890, repealed all laws and parts of laws inconsistent therewith. The provisions of said section 10 of act Oct. 1, 1890, were incorporated into the Internal Revenue Page 78 TITLE 19—CUSTOMS DUTIES § 1311 Code of 1939, as subsections (a), (b), (c), and (d)(1) of sec- tion 3177. See section 5521 of Title 26, Internal Revenue Code. The terms ‘‘drawback’’ and ‘‘country’’, referred to in text, are not defined in sections 4534(a) and 4502 of this title. However, the terms ‘‘USMCA drawback’’ and ‘‘USMCA country’’ are defined in those two sections, respectively. Amendment by section 501(e)(1)(A) of Pub. L. 116–113 struck out ‘‘NAFTA’’ before those terms but did not insert ‘‘USMCA’’. See 2020 Amendment note below. Section 204 of the United States-Canada Free-Trade Agreement Implementation Act of 1988, referred to in text, is section 204 of Pub. L. 100–449, which is set out in a note under section 2112 of this title. Section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, referred to in text, is section 203(a) of Pub. L. 108–77, which is set out in a note under section 3805 of this title. PRIOR PROVISIONS Provisions similar to those in this section were con- tained in act Oct. 3, 1913, ch. 16, § IV, M, 38 Stat. 197, which was superseded by act Sept. 21, 1922, ch. 356, title III, § 311, 42 Stat. 938, and repealed by section 321 there- of. Section 311 of the 1922 act was superseded by section 311 of act June 17, 1930, comprising this section, and re- pealed by section 651(a)(1) of the 1930 act. Section IV, M, of the act of 1913 superseded previous similar provisions of the Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 23, 36 Stat. 88, which superseded those of the Dingley Tariff Act of July 24, 1897, ch. 11, § 15, 30 Stat. 207. Similar provisions were contained in the Wilson Tariff Act of Aug. 27, 1894, ch. 349, § 9, 28 Stat. 548. AMENDMENTS 2020—Pub. L. 116–260, in eleventh par., substituted ‘‘(subject to section 4534(e) of this title)’’ for ‘‘(subject to section 1508(b)(2)(B) of this title)’’. Pub. L. 116–113, § 501(e)(1)(B), (C), in eleventh par., substituted ‘‘section 4534(a) of this title’’ for ‘‘section 3333(a) of this title’’ and ‘‘section 4502 of this title’’ for ‘‘section 3301(4) of this title’’ in introductory provi- sions. Pub. L. 116–113, § 501(e)(1)(A), in eleventh par., struck out ‘‘NAFTA’’ before ‘‘drawback’’ in introductory pro- visions and before ‘‘country’’ in introductory provi- sions in two places, in par. (2), and in concluding provi- sions. 2003—Pub. L. 108–77, §§ 107(c), 203(b)(1), temporarily added par. at end relating to goods subject to Chile FTA drawback. See Effective and Termination Dates of 2003 Amendment note below. 1993—Pub. L. 103–182 amended last par. generally. Prior to amendment, last par. read as follows: ‘‘No arti- cle manufactured in a bonded warehouse, except to the extent that such article is made from an article that is a drawback eligible good under section 204(a) of the United States-Canada Free-Trade Agreement Imple- mentation Act of 1988, may be withdrawn from such warehouse for exportation to Canada on or after Janu- ary 1, 1994, or such later date as may be proclaimed by the President under section 204(b)(2)(B) of such Act of 1988, without payment of a duty on such imported mer- chandise in its condition, and at the rate of duty in ef- fect, at the time of importation.’’ 1988—Pub. L. 100–449 temporarily added par. at end re- lating to articles withdrawn for exportation to Canada on and after Jan. 1, 1994, and to drawback-eligible goods under the United States-Canada Free-Trade Agreement Implementation Act of 1988. See Effective and Termi- nation Dates of 1988 Amendment note below. 1983—Pub. L. 97–446 struck out ‘‘at an exterior port’’ after ‘‘bonded warehouse’’ and ‘‘immediate’’ after ‘‘sole purpose of’’ in eighth par. 1979—Pub. L. 96–39, in par. relating to distilled spirits and wine, struck out provision that no internal revenue tax be imposed on distilled spirits and wines rectified in class six warehouses if such distilled spirits and wines are exported or shipped in accordance with the provisions of this section, and that no person rectifying distilled spirits or wines in such warehouses be subject by reason of such rectification to the payment of spe- cial tax as rectifier. 1970—Pub. L. 91–271 substituted references to the ap- propriate customs officer for references to the collector wherever appearing. 1936—Act June 26, 1936, inserted par. at end relating to distilled spirits and wine. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2020 AMENDMENT Amendment by Pub. L. 116–260 effective July 1, 2020, see section 601(h) of div. O of Pub. L. 116–260, set out as a note under section 81c of this title. Amendment by Pub. L. 116–113 effective on the date the USMCA enters into force (July 1, 2020) and applica- ble with respect to goods entered, or withdrawn from warehouse for consumption, on or after that date, see section 501(g) of Pub. L. 116–113, set out as a note under section 81c of this title. EFFECTIVE AND TERMINATION DATES OF 2003 AMENDMENT Amendment by Pub. L. 108–77 effective on the date the United States-Chile Free Trade Agreement enters into force (Jan. 1, 2004), and to cease to be effective on the date the Agreement ceases to be in force, see sec- tion 107(a), (c) of Pub. L. 108–77, set out in a note under section 3805 of this title. EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–182 applicable (1) with re- spect to exports from the United States to Canada on Jan. 1, 1996, 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 Jan. 1, 2001, 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 section 213(c) of Pub. L. 103–182, formerly set out as an Effective Date note under former section 3331 of this title. EFFECTIVE AND TERMINATION DATES OF 1988 AMENDMENT Amendment by Pub. L. 100–449 effective on date the United States-Canada Free-Trade Agreement enters into force (Jan. 1, 1989), and to cease to have effect on date Agreement ceases to be in force, see section 501(a), (c) of Pub. L. 100–449, set out in a note under section 2112 of this title. EFFECTIVE DATE OF 1979 AMENDMENT Pub. L. 96–39, title VIII, § 856(b), July 26, 1979, 93 Stat. 295, provided that: ‘‘Effective January 1, 1980, the sec- ond proviso to the last paragraph of section 311 of the Tariff Act of 1930 [this section] is hereby repealed.’’ 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. WITHDRAWAL OF DISTILLED SPIRITS TO MANUFACTURING BONDED WAREHOUSES; TRANSFERS TO WAREHOUSES PENDING EXPORTATION Pub. L. 96–39, title VIII, § 856(a), July 26, 1979, 93 Stat. 295, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘In the case of articles de- scribed in section 5522(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954, 26 U.S.C. 5522(a)] (as in ef- fect before its repeal by section 807(a)(50) of the Dis- tilled Spirits Tax Revision Act of 1979 [section 807(50) of Pub. L. 96–39]) the first sentence of the eighth para- Page 79 TITLE 19—CUSTOMS DUTIES § 1312 graph of section 311 of the Tariff Act of 1930 (19 U.S.C. 1311) shall be applied as if such first sentence did not include the phrase ‘at an exterior port’.’’ 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. Customs officers, referred to in text, are under Department of the Treasury. § 1312. Bonded smelting and refining warehouses (a) Bond; charges against bond Any plant engaged in smelting or refining, or both, of metal-bearing materials as defined in this section may, upon the giving of satisfactory bond, be designated a bonded smelting or refin- ing warehouse. Metal-bearing materials may be entered into a bonded smelting or refining ware- house without the payment of duties thereon and there smelted or refined, or both, together with metal-bearing materials of domestic or for- eign origin. Upon arrival of imported metal- bearing materials at the warehouse they shall be sampled according to commercial methods and assayed, both under customs supervision. The bond shall be charged with a sum equal in amount to the duties which would be payable on such metal-bearing materials in their condition as imported if entered for consumption, and the bond charge shall be adjusted to reflect changes in the applicable rate of duty occurring while the imported materials are still covered by the bond. (b) Cancellation of charges against bond The several charges against such bond may be canceled in whole or in part— (1) upon the exportation from the bonded warehouses which treated the metal-bearing materials, or from any other bonded smelting or refining warehouse, of a quantity of the same kind of metal contained in any product of smelting or refining of metal-bearing mate- rials equal to the dutiable quantity contained in the imported metal-bearing materials less wastage provided for in subsection (c); except that— (A) in the case of a withdrawal for expor- tation of such a product to a USMCA coun- try, as defined in section 4502 of this title, if any of the imported metal-bearing materials are goods subject to USMCA drawback, as defined in section 4534(a) of this title, the duties on the materials shall be paid, and the charges against the bond canceled, be- fore the 61st day after the date of expor- tation; 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 product, the duties on the materials may be waived or reduced (subject to section 4534(e) of this title) in an amount that does not exceed the lesser of— (i) the total amount of customs duties owed on the materials on importation into the United States, or (ii) the total amount of customs duties paid to the USMCA country on the prod- uct, and (B) in the case of a withdrawal for expor- tation of such a product to Chile, if any of the imported metal-bearing materials are goods subject to Chile FTA drawback, as de- fined in section 203(a) of the United States- Chile Free Trade Agreement Implementa- tion Act, the duties on the materials shall be paid, and the charges against the bond can- celed, before the 61st day after the date of exportation, except that the duties may be waived or reduced by— (i) 100 percent during the 8-year period beginning on January 1, 2004, (ii) 75 percent during the 1-year period beginning on January 1, 2012, (iii) 50 percent during the 1-year period beginning on January 1, 2013, and (iv) 25 percent during the 1-year period beginning on January 1, 2014, or (2) upon payment of duties on the dutiable quantity of metal contained in the imported metal-bearing materials, or (3) upon the transfer of the bond charges to another bonded smelting or refining ware- house by physical shipment of a quantity of the same kind of metal contained in any prod- uct of smelting or refining of metal-bearing materials equal to the dutiable quantity con- tained in the imported metal-bearing mate- rials less wastage provided for in subsection (c), or (4) upon the transfer of the bond charges to a bonded customs warehouse other than a bonded smelting or refining warehouse by physical shipment of a quantity of the same kind of metal contained in any product of smelting or refining equal to the dutiable quantity contained in the imported metal- bearing materials less wastage provided for in subsection (c), and upon withdrawal from such other warehouse for exportation or domestic consumption the provisions of this section shall apply; except that— (A) in the case of a withdrawal for expor- tation of such a product to a USMCA coun- try, as defined in section 4502 of this title, if any of the imported metal-bearing materials are goods subject to USMCA drawback, as defined in section 4534(a) of this title, the duties on the materials shall be paid, and the charges against the bond canceled, be- fore the 61st day after the date of expor- tation; 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 product, the duties on the materials may be waived or reduced (subject to section 4534(e) of this title) in an amount that does not exceed the lesser of— (i) the total amount of customs duties owed on the materials on importation into the United States, or (ii) the total amount of customs duties paid to the USMCA country on the prod- uct, and