US Laws, Codes, Statutes & Cases

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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 19USC1491]

 
                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 4--TARIFF ACT OF 1930
 
                 SUBTITLE III--ADMINISTRATIVE PROVISIONS
 
       Part III--Ascertainment, Collection, and Recovery of Duties
 
Sec. 1491. Unclaimed merchandise; disposition of forfeited 
        distilled spirits, wines and malt liquor
        

(a) Appraisal and sale of unclaimed merchandise

    Any entered or unentered merchandise (except merchandise entered 
under section 1557 of this title, but including merchandise entered for 
transportation in bond or for exportation) which shall remain in a 
bonded warehouse pursuant to section 1490 of this title for 6 months 
from the date of importation thereof, without all estimated duties, 
taxes, fees, interest, storage, or other charges thereon having been 
paid, shall be considered unclaimed and abandoned to the Government and 
shall be appraised and sold by the Customs Service at public auction 
under such regulations as the Secretary of the Treasury shall prescribe. 
All gunpowder and other explosive substances and merchandise liable to 
depreciation in value by damage, leakage, or other cause to such extent 
that the proceeds of sale thereof may be insufficient to pay the duties, 
taxes, fees, interest, storage, and other charges, if permitted to 
remain in \1\ pursuant to section 1490 of this title in a bonded 
warehouse for 6 months, may be sold forthwith, under such regulations as 
the Secretary of the Treasury may prescribe. Merchandise subject to sale 
hereunder or under section 1559 of this title may be entered or 
withdrawn for consumption at any time prior to such sale upon payment of 
all duties, taxes, fees, interest, storage, and other charges, and 
expenses that may have accrued thereon, but such merchandise after 
becoming subject to sale may not be exported prior to sale without the 
payment of such duties, taxes, fees, interest, charges, and expenses nor 
may it be entered for warehouse. The computation of duties, taxes, 
interest, and fees for the purposes of this section and sections 1493 
and 1559 of this title shall be at the rate or rates applicable at the 
time the merchandise becomes subject to sale.
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    \1\ So in original. The word ``in'' probably should not appear.
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(b) Notice of title vesting in United States

    At the end of the 6-month period referred to in subsection (a) of 
this section, the Customs Service may, in lieu of sale of the 
merchandise, provide notice to all known interested parties that the 
title to such merchandise shall be considered to vest in the United 
States free and clear of any liens or encumbrances, on the 30th day 
after the date of the notice unless, before such 30th day--
        (1) the subject merchandise is entered or withdrawn for 
    consumption; and
        (2) payment is made of all duties, taxes, fees, transfer and 
    storage charges, and other expenses that may have accrued thereon.

(c) Retention, transfer, destruction, or other disposition

    If title to any merchandise vests in the United States by operation 
of subsection (b) of this section, such merchandise may be retained by 
the Customs Service for official use, transferred to any other Federal 
agency or to any State or local agency, destroyed, or otherwise disposed 
of in accordance with such regulations as the Secretary shall prescribe. 
All transfer and storage charges or expenses accruing on retained or 
transferred merchandise shall be paid by the receiving agency.

(d) Petition

    Whenever any party, having lost a substantial interest in 
merchandise by virtue of title vesting in the United States under 
subsection (b) of this section, can establish such title or interest to 
the satisfaction of the Secretary within 30 days after the day on which 
title vests in the United States under subsection (b) of this section, 
or can establish to the satisfaction of the Secretary that the party did 
not receive notice under subsection (b) of this section, the Secretary 
may, upon receipt of a timely and proper petition and upon finding that 
the facts and circumstances warrant, pay such party out of the Treasury 
of the United States the amount the Secretary believes the party would 
have received under section 1493 of this title had the merchandise been 
sold and a proper claim filed. The decision of the Secretary with 
respect to any such petition is final and conclusive on all parties.

(e) Appraisal and sale or other disposition of forfeited distilled 
        spirits, wines, and malt liquor

    All distilled spirits, wines, and malt liquor forfeited to the 
Government summarily or by order of court, under any provision of law 
administered by the United States Customs Service, shall be appraised 
and disposed of by--
        (1) delivery to such Government agencies, as in the opinion of 
    the Secretary have a need for such distilled spirits, wines, and 
    malt liquor for medical, scientific, or mechanical purposes, or for 
    any other official purpose for which appropriated funds may be 
    expended by a Government agency:
        (2) gifts to such eleemosynary institutions as, in the opinion 
    of the Secretary, have a need for such distilled spirits, wines, and 
    malt liquor for medical purposes;
        (3) sale by Customs Service at public auction under such 
    regulations as the Secretary shall prescribe, except that before 
    making any such sale the Secretary shall determine that no 
    Government agency or eleemosynary institution has established a need 
    for such spirits, wines, and malt liquor under paragraph (1) or (2); 
    or
        (4) destruction.

(June 17, 1930, ch. 497, title IV, Sec. 491, 46 Stat. 726; June 25, 
1938, ch. 679, Sec. 14, 52 Stat. 1083; Pub. L. 91-271, title III, 
Sec. 301(j), June 2, 1970, 84 Stat. 289; Pub. L. 95-410, title II, 
Sec. 208, Oct. 3, 1978, 92 Stat. 901; Pub. L. 103-182, title VI, 
Sec. 659, Dec. 8, 1993, 107 Stat. 2213; Pub. L. 104-295, Sec. 21(e)(8), 
Oct. 11, 1996, 110 Stat. 3531.)


                            Prior Provisions

    Provisions similar to those in this section were contained in R.S. 
Secs. 2973, 2975 and 2976, all of which were superseded by act Sept. 21, 
1922, ch. 356, title IV, Sec. 491, 42 Stat. 963, and repealed by section 
642 thereof. Section 491 of the 1922 act was superseded by section 491 
of act June 17, 1930, comprising this section, and repealed by section 
651(a)(1) of the 1930 act.


                               Amendments

    1996--Subsec. (a). Pub. L. 104-295 substituted ``in a bonded 
warehouse pursuant to section 1490'' for ``in in a bonded warehouse 
pursuant to section 1490'' and ``Customs Service'' for ``appropriate 
customs officer''.
    1993--Subsec. (a). Pub. L. 103-182, Sec. 659(1), substituted ``in a 
bonded warehouse pursuant to section 1490 of this title for 6 months'' 
for ``customs custody for one year'', ``estimated duties, taxes, fees, 
interest, storage,'' for ``estimated duties and storage'', ``duties, 
taxes, fees, interest, storage, and other charges, if permitted'' for 
``duties, storage, and other charges, if permitted'', ``pursuant to 
section 1490 of this title in a bonded warehouse for 6 months'' for 
``public store or bonded warehouse for a period of one year'', ``duties, 
taxes, fees, interest, storage, and other charges'' for ``duties, 
storage, and other charges'', ``duties, taxes, fees, interest, charges, 
and expenses'' for ``duties, charges, and expenses'', and ``computation 
of duties, taxes, interest, and fees for the purposes'' for 
``computation of duties for the purposes''.
    Subsecs. (b) to (d). Pub. L. 103-182, Sec. 659(2), added subsecs. 
(b) to (d). Former subsec. (b) redesignated (e).
    Subsec. (e). Pub. L. 103-182, Sec. 659(2), (3), redesignated subsec. 
(b) as (e) and substituted ``Customs Service'' for ``appropriate customs 
officer'' in par. (3).
    1978--Pub. L. 95-410 amended section catchline, designated existing 
provisions as subsec. (a), and added subsec. (b).
    1970--Pub. L. 91-271 substituted reference to appropriate customs 
officer for reference to collector, and struck out reference to 
appraiser of merchandise.
    1938--Act June 25, 1938, amended generally so much of this section 
as preceded ``shall be considered unclaimed and abandoned''.


                    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 thirtieth 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 liabilities of the 
United States Customs Service of the Department of the Treasury, 
including functions of the Secretary of the Treasury relating thereto, 
to the Secretary of Homeland Security, and for treatment of related 
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 November 25, 2002, as modified, set out as a note 
under section 542 of Title 6.


                      Extension of One-Year Period

    For extension of one year period prescribed in this section, see 
Proc. No. 2948, Oct. 12, 1951, 16 F.R. 10589, 65 Stat. c41, set out as a 
note under section 1318 of this title.
    Proc. No. 2599, Nov. 6, 1943, 8 F.R. 15359, 57 Stat. 758, as amended 
by Proc. No. 2712, Dec. 4, 1946, 11 F.R. 14133, 61 Stat. 1947, was 
superseded by Proc. No. 2948, Oct. 12, 1951, 16 F.R. 10589, 65 Stat. 
c41.

                  Section Referred to in Other Sections

    This section is referred to in sections 1493, 1753 of this title.