[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR162.75]

[Page 261-262]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 162--INSPECTION, SEARCH, AND SEIZURE--Table of Contents
 
          Subpart G--Special Procedures for Certain Violations
 
Sec. 162.75  Seizures limited under section 592, Tariff Act of 1930, as amended.

    (a) When authorized. Merchandise may be seized for violation of 
section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592) only if the 
port director has reasonable cause to believe that a person has violated 
the statute and that
    (1) The person is insolvent,
    (2) The person is beyond the jurisdiction of the United States,
    (3) Seizure otherwise is essential to protect the revenue, or
    (4) Seizure is essential to prevent the introduction of prohibited 
or restricted merchandise into the Customs territory of the United 
States.

[[Page 262]]

    (b) No seizure if prior disclosure. Under no circumstances shall 
merchandise be seized under the authority of 19 U.S.C. 1592 if there has 
been a prior disclosure of the violation. This paragraph does not limit 
seizures under the authority of any other applicable law or regulation.
    (c) Seizure notice. If merchandise is seized, the Fines, Penalties, 
and Forfeitures Officer shall promptly issue a written notice of seizure 
to the person concerned and to any other person the facts of record 
indicate has an interest in the merchandise. The seizure notice shall 
contain the information required by Sec. 162.31 and shall state why the 
seizure was necessary.
    (d) Release of seized merchandise--(1) To person from whom seized. 
The Fines, Penalties, and Forfeitures Officer shall return seized 
mechandise to the person from whom seized upon the deposit of security, 
in a form acceptable to the Fines, Penalties, and Forfeitures Officer, 
equal to the maximum penalty which may be assessed, if the entry of the 
merchandise into the commerce of the United States is not prohibited or 
restricted.
    (2) To others. The Fines, Penalties, and Forfeitures Officer may 
release seized merchandise to any other person upon the deposit of 
adequate security, in a form acceptable to the Fines, Penalties, and 
Forfeitures Officer, if the entry of the merchandise into the commerce 
of the United States is not prohibited or restricted, and if:
    (i) The Fines, Penalties, and Forfeitures Officer is satisfied that 
the person has a substantial interest in the merchandise, and
    (ii) The person submits either an agreement to hold the United 
States and its officers and employees harmless, or a release from the 
owner and/or the person from whom the merchandise was seized.
    (3) Forfeiture. If neither a petition for relief is filed in 
accordance with part 171 of this chapter, nor compliance made with the 
decision within the time provided by law, the Fines, Penalties, and 
Forfeitures Officer immediately shall report the facts and refer the 
case to the Department of Justice for the institution of court 
proceedings.

[T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 84-18, 49 
FR 1679, Jan. 13, 1984; T.D. 85-90, 50 FR 21431, May 24, 1985; T.D. 86-
118, 51 FR 22516, June 20, 1986; T.D. 88-43, 53 FR 28195, July 27, 1988; 
T.D. 99-27, 64 FR 13676, Mar. 22, 1999]