US Laws, Codes, Statutes & Cases

From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 19USC1508]

 
                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 4--TARIFF ACT OF 1930
 
                 SUBTITLE III--ADMINISTRATIVE PROVISIONS
 
       Part III--Ascertainment, Collection, and Recovery of Duties
 
Sec. 1508. Recordkeeping


(a) Requirements

    Any--
        (1) owner, importer, consignee, importer of record, entry filer, 
    or other party who--
            (A) imports merchandise into the customs territory of the 
        United States, files a drawback claim, or transports or stores 
        merchandise carried or held under bond, or
            (B) knowingly causes the importation or transportation or 
        storage of merchandise carried or held under bond into or from 
        the customs territory of the United States;

        (2) agent of any party described in paragraph (1); or
        (3) person whose activities require the filing of a declaration 
    or entry, or both;

shall make, keep, and render for examination and inspection records 
(which for purposes of this section include, but are not limited to, 
statements, declarations, documents and electronically generated or 
machine readable data) which--
        (A) pertain to any such activity, or to the information 
    contained in the records required by this chapter in connection with 
    any such activity; and
        (B) are normally kept in the ordinary course of business.

(b) Exportations to free trade countries

                           (1) Definitions

        As used in this subsection--
            (A) The term ``associated records'' means, in regard to an 
        exported good under paragraph (2), records associated with--
                (i) the purchase of, cost of, value of, and payment for, 
            the good;
                (ii) the purchase of, cost of, value of, and payment 
            for, all material, including indirect materials, used in the 
            production of the good; and
                (iii) the production of the good.

        For purposes of this subparagraph, the terms ``indirect 
        material'', ``material'', ``preferential tariff treatment'', 
        ``used'', and ``value'' have the respective meanings given them 
        in articles 415 and 514 of the North American Free Trade 
        Agreement.
            (B) The term ``NAFTA Certificate of Origin'' means the 
        certification, established under article 501 of the North 
        American Free Trade Agreement, that a good qualifies as an 
        originating good under such Agreement.

                   (2) Exports to NAFTA countries

        (A) In general

            Any person who completes and signs a NAFTA Certificate of 
        Origin for a good for which preferential treatment under the 
        North American Free Trade Agreement is claimed shall make, keep, 
        and render for examination and inspection all records relating 
        to the origin of the good (including the Certificate or copies 
        thereof) and the associated records.

        (B) Claims for certain waivers, reductions, or refunds of duties 
                or for credit against bonds

            (i) In general

                Any person that claims with respect to an article--
                    (I) a waiver or reduction of duty under the last 
                paragraph of section 1311 of this title, section 
                1312(b)(1) or (4) of this title, section 1562(2) of this 
                title, or the last proviso to section 81c(a) of this 
                title;
                    (II) a credit against a bond under section 1312(d) 
                of this title; or
                    (III) a refund, waiver, or reduction of duty under 
                section 1313(n)(2) or (o)(1) of this title;

          must disclose to the Customs Service the information described 
            in clause (ii).
            (ii) Information required

                Within 30 days after making a claim described in clause 
            (i) with respect to an article, the person making the claim 
            must disclose to the Customs Service whether that person has 
            prepared, or has knowledge that another person has prepared, 
            a NAFTA Certificate of Origin for the article. If after such 
            30-day period the person making the claim either--
                    (I) prepares a NAFTA Certificate of Origin for the 
                article; or
                    (II) learns of the existence of such a Certificate 
                for the article;

          that person, within 30 days after the occurrence described in 
            subclause (I) or (II), must disclose the occurrence to the 
            Customs Service.
            (iii) Action on claim

                If the Customs Service determines that a NAFTA 
            Certificate of Origin has been prepared with respect to an 
            article for which a claim described in clause (i) is made, 
            the Customs Service may make such adjustments regarding the 
            previous customs treatment of the article as may be 
            warranted.

              (3) Exports under the Canadian agreement

        Any person who exports, or who knowingly causes to be exported, 
    any merchandise to Canada during such time as the United States-
    Canada Free-Trade Agreement is in force with respect to, and the 
    United States applies that Agreement to, Canada shall make, keep, 
    and render for examination and inspection such records (including 
    certifications of origin or copies thereof) which pertain to the 
    exportations.

(c) Period of time

    The records required by subsections (a) and (b) of this section 
shall be kept for such periods of time as the Secretary shall prescribe; 
except that--
        (1) no period of time for the retention of the records required 
    under subsection (a) or (b)(3) of this section may exceed 5 years 
    from the date of entry, filing of a reconciliation, or exportation, 
    as appropriate;
        (2) the period of time for the retention of the records required 
    under subsection (b)(2) of this section shall be at least 5 years 
    from the date of signature of the NAFTA Certificate of Origin; and
        (3) records for any drawback claim shall be kept until the 3rd 
    anniversary of the date of payment of the claim.

(d) Limitation

    For the purposes of this section and section 1509 of this title, a 
person ordering merchandise from an importer in a domestic transaction 
does not knowingly cause merchandise to be imported unless--
        (1) the terms and conditions of the importation are controlled 
    by the person placing the order; or
        (2) technical data, molds, equipment, other production 
    assistance, material, components, or parts are furnished by the 
    person placing the order with knowledge that they will be used in 
    the manufacture or production of the imported merchandise.

(e) Subsection (b) penalties

                    (1) Relating to NAFTA exports

        Any person who fails to retain records required by paragraph (2) 
    of subsection (b) of this section or the regulations issued to 
    implement that paragraph shall be liable for--
            (A) a civil penalty not to exceed $10,000; or
            (B) the general recordkeeping penalty that applies under the 
        customs laws;

    whichever penalty is higher.

             (2) Relating to Canadian agreement exports

        Any person who fails to retain the records required by paragraph 
    (3) of subsection (b) of this section or the regulations issued to 
    implement that paragraph shall be liable for a civil penalty not to 
    exceed $10,000.

(June 17, 1930, ch. 497, title IV, Sec. 508, as added Pub. L. 95-410, 
title I, Sec. 104, Oct. 3, 1978, 92 Stat. 889; amended Pub. L. 100-449, 
title II, Sec. 205(b), Sept. 28, 1988, 102 Stat. 1864; Pub. L. 103-182, 
title II, Sec. 205(a), title VI, Sec. 614, Dec. 8, 1993, 107 Stat. 2093, 
2174; Pub. L. 104-295, Sec. 3(a)(6)(B), Oct. 11, 1996, 110 Stat. 3515.)

                       References in Text

    The customs laws, referred to in subsec. (e)(1)(B), are classified 
generally to this title.


                            Prior Provisions

    A prior section 1508, acts June 17, 1930, ch. 497, title IV, 
Sec. 508, 46 Stat. 732; Aug. 8, 1953, ch. 397, Sec. 19, 67 Stat. 518, 
related to commingling of goods, prior to repeal by Pub. L. 87-456, 
title III, Sec. 301(a), May 24, 1962, 76 Stat. 75, effective, pursuant 
to section 501(a) of Pub. L. 87-456, with respect to articles entered, 
or withdrawn from warehouse, for consumption on or after Aug. 31, 1963.


                               Amendments

    1996--Subsec. (c)(1). Pub. L. 104-295 inserted ``, filing of a 
reconciliation,'' after ``entry''.
    1993--Subsec. (a). Pub. L. 103-182, Sec. 614(1), amended subsec. (a) 
generally. Prior to amendment, subsec. (a) read as follows: ``Any owner, 
importer, consignee, or agent thereof who imports, or who knowingly 
causes to be imported, any merchandise into the customs territory of the 
United States shall make, keep, and render for examination and 
inspection such records (including statements, declarations, and other 
documents) which--
        ``(1) pertain to any such importation, or to the information 
    contained in the documents required by this chapter in connection 
    with the entry of merchandise; and
        ``(2) are normally kept in the ordinary course of business.''
    Subsec. (b). Pub. L. 103-182, Sec. 205(a)(1), amended subsec. (b) 
generally. Prior to amendment, subsec. (b) read as follows: ``Any person 
who exports, or who knowingly causes to be exported, any merchandise to 
Canada shall make, keep, and render for examination and inspection such 
records (including certifications of origin or copies thereof) which 
pertain to such exportations.''
    Subsec. (c). Pub. L. 103-182, Sec. 205(a)(2), amended generally 
subsec. (c), as amended by Pub. L. 103-182, Sec. 614(2) (see below). 
Prior to amendment, subsec. (c) read as follows: ``The records required 
by subsections (a) and (b) of this section shall be kept for such period 
of time, not to exceed 5 years from the date of entry or exportation, as 
appropriate, as the Secretary shall prescribe; except that records for 
any drawback claim shall be kept until the 3rd anniversary of the date 
of payment of the claim.'' See Construction of 1993 Amendment note 
below.
    Pub. L. 103-182, Sec. 614(2), amended subsec. (c) generally. Prior 
to amendment, subsec. (c) read as follows: ``The records required by 
subsection (a) and (b) of this section shall be kept for such periods of 
time, not to exceed 5 years from the date of entry, as the Secretary 
shall prescribe.'' See Construction of 1993 Amendment note below.
    Subsec. (e). Pub. L. 103-182, Sec. 205(a)(3), amended subsec. (e) 
generally. Prior to amendment, subsec. (e) read as follows: ``Any person 
who fails to retain records required by subsection (b) of this section 
or the regulations issued to implement that subsection shall be liable 
to a civil penalty not to exceed $10,000.''
    1988--Subsecs. (b) to (e). Pub. L. 100-449 added subsec. (b), 
redesignated former subsec. (b) as (c) and inserted ``and (b)'' after 
``subsection (a)'', redesignated former subsec. (c) as (d), and added 
subsec. (e).


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-295 applicable as of Dec. 8, 1993, see 
section 3(b) of Pub. L. 104-295, set out as a note under section 1321 of 
this title.


                    Effective Date of 1993 Amendment

    Amendment by section 205(a) of Pub. L. 103-182 effective on the date 
the North American Free Trade Agreement enters into force with respect 
to the United States [Jan. 1, 1994], see section 213(b) of Pub. L. 103-
182, set out as an Effective Date note under section 3331 of this title.


            Effective and Termination Dates of 1988 Amendment

    Amendment by Pub. L. 100-449 effective on date 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.


                     Construction of 1993 Amendment

    Amendment by section 205(a) of Pub. L. 103-182 to be made after 
amendment by section 614 of Pub. L. 103-182 is executed, see section 212 
of Pub. L. 103-182, set out as a note under section 58c 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.

                  Section Referred to in Other Sections

    This section is referred to in sections 81c, 1311, 1312, 1313, 1509, 
1520, 1553a, 1562, 1592 of this title.