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607 Subpart D— Proceeds of Sale

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607 Subpart D— Proceeds of Sale Powered By Docstoc
					                                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
                                                                                          lowing order:
                                this chapter.
                                                                                            (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
                                                                                          paid last.
                                (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.
                                                                                          fully).
                                  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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