United States Customs Service, Treasury § 127.33
value to justify its sale, the merchan- Subpart D—Proceeds of Sale
dise shall be destroyed, unless it can be
advantageously sold for export from § 127.31 Disposition of proceeds.
continuous Customs custody or unless From the proceeds of sale of mer-
the Commissioner of Customs has au- chandise remaining in public stores or
thorized other disposition to be made in bonded warehouse beyond the time
under the law. These articles may be fixed by law, the following charges
sold for domestic consumption even shall be paid in the order named:
though the proceeds of sale will not (a) Internal revenue taxes.
cover the duties due.
(b) Expenses of advertising and sale.
(h) Unclaimed merchandise remaining (c) Expenses of cartage, storage and
on dock. Unclaimed merchandise re- labor. When the proceeds are insuffi-
maining on the dock which, in the cient to pay such charges fully, they
opinion of the port director, will not shall be paid pro rata. (For merchan-
sell for enough to pay the cost of cart- dise entered for warehousing, see
age and storage shall be sold at public § 127.32 of this subpart.)
auction upon public notice of not less (d) Duties.
than 6 or more than 10 days. (e) Any other charges due the United
(i) Chemical substances, mixtures, and States in connection with the mer-
articles containing chemical substances or chandise.
mixtures. Chemical substances, mix- (f) Any sum due to satisfy a lien for
tures, and articles containing a chem- freight, charges, or contributions in
ical substance or mixture, as these general average, of which due notice
items are defined in section 3, Toxic shall have been given in the manner
Substances Control Act (‘‘TSCA’’) and prescribed by law.
section 12.120 of this chapter, shall be
inspected by a representative of the (Secs. 491, 493, 559, 46 Stat. 726, as amended,
727, as amended, 744, as amended, sec. 4, 73
Environmental Protection Agency to
Stat. 18; (19 U.S.C. 1491, 1493, 1559, 1753))
ascertain whether they comply with
TSCA and the regulations and orders § 127.32 Expenses of cartage, storage,
issued thereunder. If found not to com- and labor.
ply with these requirements they shall
The expenses of cartage, storage, and
be exported or otherwise disposed of
labor for merchandise entered for
immediately in accordance with the
warehousing shall be paid in the fol-
provisions of §§ 12.125 through 12.127 of
(a) When such merchandise was
(Secs. 491, 492, 46 Stat. 726, as amended, 727, warehoused in public stores, expenses
as amended, sec. 201, 72 Stat. 1412, 68A Stat. of storage and labor shall be paid after
716, as amended, 86 Stat. 995; (19 U.S.C. 1491, expenses of sale (pro-rated when pro-
1492, 26 U.S.C. 5688, 5753); sec. 13, 90 Stat. 2034 ceeds are insufficient to pay them
(15 U.S.C. 2612), R.S. 251, as amended (19 fully) and any cartage charges shall be
U.S.C. 66), and secs. 484, 485, 624; 46 Stat. 759
(19 U.S.C. 1484, 1485, 1624))
(b) When such merchandise was
[T.D. 74–114, 39 FR 12092, Apr. 3, 1974, as warehoused in a bonded warehouse, ex-
amended by T.D. 83–158, 48 FR 34740, Aug. 1, penses of storage, cartage, and labor
1983; T.D. 98–74, 63 FR 51290, Sept. 25, 1998] shall be paid last (pro-rated when pro-
ceeds are insufficient to pay them
§ 127.29 Unsold merchandise.
Merchandise offered for sale but not
(Secs. 491, 493, 559, 46 Stat. 726, as amended,
sold shall be included in the next reg- 727, as amended, 744, as amended; (19 U.S.C.
ular sale of unclaimed and abandoned 1491, 1493, 1559))
merchandise. If the port director is sat-
isfied that such merchandise is § 127.33 Chargeable duties.
unsalable or of no commercial value, it
The duties chargeable on any mer-
shall be destroyed. chandise within the purview of this
(Secs. 491, 559, 46 Stat. 726, as amended, 744, subpart shall be assessed on the ap-
as amended; (19 U.S.C. 1491, 1559)) praised dutiable value at the rate of
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§ 127.34 19 CFR Ch. I (4–1–02 Edition)
duty chargeable at the time the mer- claimed merchandise which has become
chandise became subject to sale. abandoned and sold under section 491 of
Household and personal effects of the the Tariff Act of 1930, as amended (19
character provided for in Chapter 98, U.S.C. 1491), shall be supported by the
Subchapter IV, Harmonized Tariff original bill of lading. If only part of a
Schedule of the United States (19 shipment is involved, either a photo-
U.S.C. 1202), which belong to persons static or certified copy of the original
who have not arrived in this country bill of lading may be submitted in lieu
before the effects become subject to of the original bill of lading.
sale, are dutiable at the rates in effect (2) Involuntarily abandoned merchan-
when the effects become subject to dise—(i) Warehouse goods deemed aban-
sale, even though such persons arrive doned. Claims for surplus proceeds of
and make entry for the effects before sale of warehouse goods deemed invol-
they are sold. untarily abandoned sold under section
(Secs. 491, 493, 559, 46 Stat. 726, as amended, 559 of the Tariff Act of 1930, as amended
727, as amended, 744, as amended; (19 U.S.C. (19 U.S.C. 1559), shall be established by
1491, 1493, 1559)) reference to the warehouse entry, or, if
[T.D. 74–114, 39 FR 12092, Apr. 3, 1974, as
the right to withdraw the merchandise
amended by T.D. 89–1, 53 FR 51255, Dec. 21, from warehouse has been transferred,
1988; T.D. 97–82, 62 FR 51770, Oct. 3, 1997] by reference to the documents by
which the transfer was made.
§ 127.34 Auctioneer’s commissions. (ii) Trade fair articles deemed aban-
The duties of the auctioneer shall be doned. Claims for surplus proceeds of
confined to selling the merchandise sale of trade fair articles deemed invol-
and his charge for such service shall in untarily (mandatorily) abandoned
no case exceed the commissions usual under section 4 of the Trade Fair Act of
at the port. Such commissions shall be 1959 (19 U.S.C. 1753(c)), shall be sup-
based on the amount of the successful ported by the original bill of lading. If
bid. only part of a shipment is involved, ei-
ther a photostatic copy or certified
(Secs. 491, 493, 559, 46 Stat. 726, as amended, copy of the original bill of lading may
727, as amended, 744, as amended; (19 U.S.C.
be submitted in lieu of the original bill
1491, 1493, 1559))
of lading. (See § 147.47 of this chapter.)
§ 127.35 Presentation of accounts. (b) Payment of claim. If a claim of the
owner or consignee of unclaimed or
Accounts for the auctioneer’s charges
abandoned merchandise for the surplus
and all other expenses of sale which
proceeds of sale is properly established
may be properly chargeable on the
as provided in this section, such pro-
merchandise shall be presented to the
ceeds of sale shall be paid to him pur-
port director for payment within 10
suant to section 493 of the Tariff Act of
days from the date of sale. Such ex-
1930, as amended (19 U.S.C. 1493).
penses shall be apportioned pro rata on
the amounts received for different lots (c) Doubtful claims. Any doubtful
sold. claims for the proceeds of sale along
with all pertinent documents and infor-
(Secs. 491, 493, 559, 46 Stat. 726, as amended, mation available to the port director
727, as amended, 744, as amended; (19 U.S.C. shall be forwarded to the Commissioner
1491, 1493, 1559))
of Customs for instructions or for re-
§ 127.36 Claim for surplus proceeds of ferral to the General Accounting Office
sale. for direct settlement.
(a) Filing of claim. Claims for the sur- (Secs. 491, 493, 559, 46 Stat. 726, as amended,
plus proceeds of the sale of unclaimed 727, as amended, 744, as amended, sec. 4, 73
or abandoned merchandise shall be Stat. 18 (19 U.S.C. 1491, 1493, 1559, 1753))
filed with the port director at whose di-
rection the merchandise was sold. The § 127.37 Insufficient proceeds.
following shall be used in filing a (a) Warehouse merchandise deemed in-
claim: voluntarily abandoned. If the proceeds
(1) Unclaimed merchandise. Claims for of sale of warehouse merchandise
surplus proceeds of the sale of un- deemed involuntarily abandoned are
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