[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR127.14]

[Page 622-623]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 127--GENERAL ORDER, UNCLAIMED, AND ABANDONED MERCHANDISE--Table of Contents
 
             Subpart B--Unclaimed and Abandoned Merchandise
 
Sec. 127.14  Disposition of merchandise in Customs custody beyond time fixed by law.

    (a) Merchandise subject to sale or other disposition--(1) General. 
If storage or other charges due the United States have not been paid on 
merchandise remaining in Customs custody after the expiration of the 
bond period in the case of merchandise entered for warehouse, or after 
the expiration of the general order period, as defined in Sec. 127.4, in 
any other case, even though any duties due have been paid, such 
merchandise will be sold as provided in subpart C of this part, retained 
for official use as provided in subpart E of this part, destroyed, or 
otherwise disposed of as authorized by the Commissioner of Customs under 
the law, unless the merchandise is entered or withdrawn for consumption 
in accordance with paragraph (b) of this section.
    (2) Destruction of merchandise.--(i) Proprietor responsibility. If 
the port director concludes that merchandise in general order has no 
commercial value or is otherwise unsalable and cannot be disposed of at 
public auction (see Sec. 127.29), and that its destruction is warranted, 
the warehouse proprietor must assume responsibility under bond, 
including the expense, for destroying the merchandise (see 
Sec. 113.63(c)(3) of this chapter). The port director will authorize 
such destruction on Customs Form (CF) 3499, or on a similar Customs 
document as designated by the port director or an electronic equivalent 
as authorized by Customs.
    (ii) Notice of destruction. Before destroying the merchandise, the 
warehouse proprietor must first make a reasonable effort under bond (see 
Sec. 113.63(b) and (c) of this chapter), to identify and inform the 
importer (owner) or consignee regarding the intended destruction of the 
merchandise. When the appropriate party is identified, notice of 
destruction will be provided to the party on Customs Form (CF) 5251, 
appropriately modified, or other similar

[[Page 623]]

Customs document as designated by the port director or an electronic 
equivalent as authorized by Customs, at least 30 calendar days prior to 
the date of intended destruction.
    (b) Entry of merchandise subject to sale. Merchandise subject to 
sale (except merchandise abandoned under section 506(1) or 563(b), 
Tariff Act of 1930, as amended (19 U.S.C. 1506(1), 1563(b))), may be 
entered or withdrawn for consumption at any time prior to the sale upon 
payment of the duties, any internal revenue tax, and all charges and 
expenses that may have accrued thereon. Such merchandise may not be 
exported without payment of duty nor entered for warehouse.
    (c) Release of merchandise to warehouse proprietor. The following 
merchandise for which a permit to release has been issued shall be held 
to be no longer in the custody of Customs officers and shall be released 
to the warehouse proprietor:
    (1) Merchandise upon which all duties and charges have been paid.
    (2) Free and duty-paid merchandise upon which all charges have been 
paid, not entered for warehouse which remains in bonded warehouse for 
more than the general order period.

[T.D. 74-114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 75-161, 40 
FR 28790, July 9, 1975; T.D. 79-221, 44 FR 46814, Aug. 9, 1979; T.D. 82-
204, 47 FR 49375, Nov. 1, 1982; T.D. 02-65, 67 FR 68034, Nov. 8, 2002]