[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR19.18]

[Page 311]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 19--CUSTOMS WAREHOUSES, CONTAINER STATIONS AND CONTROL OF MERCHANDISE THEREIN--Table of Contents
 
Sec. 19.18  Smelting and refining; allowance for wastage; withdrawal for consumption.

    (a) Except where absolute deductions have been allowed in the 
liquidation of the entry for losses on copper, lead, and zinc content of 
metal-bearing materials, pursuant to Chapter 26, Additional U.S. Note 1, 
Harmonized Tariff Schedule of the United States (see Sec. 151.55 of this 
chapter), the actual percentage of losses by weight shall be allowed if 
more than 90 percent by weight of:
    (1) The zinc content initially treated at any lead plant, (2) the 
copper content of the imported materials treated at any zinc plant, or 
(3) the copper, lead, or zinc content of the imported material initially 
treated at any plant other than a copper, lead, or zinc plant is lost in 
processing such materials. Such actual percentage of losses by weight of 
the metal content shall be that shown by the manufacturer's annual 
statement. Such losses shall be applied in the liquidation of the entry 
to materials entered for consumption or for warehouse, during a 12-month 
period beginning on the first day of the month nearest to 90 days after 
the close of the manufacturer's fiscal year immediately preceding such 
90-day period, provided the importer makes claim therefor in writing at 
the time the merchandise is entered. No further wastage shall be 
allowed. The full dutiable contents of such metal-bearing materials, as 
ascertained by commercial assay made by the Government chemists, less 
the wastage allowance (including dutiable metals entirely lost in 
smelting or refining, or both), shall constitute the quantity of 
dutiable metal which must be either exported, duty-paid, or transferred 
to another bonded warehouse in order to secure the cancellation of the 
charge made against the proprietor's bond as shown by the warehouse or 
rewarehouse entry account.
    (b) Upon the withdrawal for consumption of metal so smelted or 
refined, or both, duty shall be collected thereon without the allowance 
for wastage, except where the metal was transferred to a bonded Customs 
warehouse other than a smelting warehouse and withdrawn therefrom for 
consumption. However, duty-paid warehouse withdrawals for consumption 
may be filed with regard to metal which will be physically withdrawn in 
the form of smelted or refined products whether at the time of the 
filing of the withdrawal papers the dutiable metal covered by the bond 
charge being cancelled by the withdrawal is in the form of ores, 
concentrates, crude metals, or intermediate products. If the warehouse 
withdrawal for consumption covers a product which does not sustain the 
full wastage allowable (see Sec. 19.22) prior to being physically 
released from Customs custody, a proportionate part only of such wastage 
may be allowed. The warehouse withdrawal and delivery permit shall state 
the estimated amount of the dutiable metal contained in the products, 
and the warehouse withdrawal shall specify the applicable wastage. A 
quantity of dutiable metal equivalent to the smelted or refined products 
covered by each withdrawal for consumption must be actually on hand at 
the plant or plants covered by the bond at the time of filing the 
withdrawals; but neither the actual ability to withdraw smelted or 
refined products from the warehouse nor the actual physical condition 
described in the withdrawal will be required at the time of filing the 
withdrawal.

[28 FR 14763, Dec. 31, 1963, as amended by T.D. 73-175, 38 FR 17446, 
July 2, 1973; T.D. 82-90, 47 FR 20753, May 14, 1982; T.D. 89-1, 53 FR 
51254, Dec. 21, 1988]