[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR148.37]

[Page 146]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 148--PERSONAL DECLARATIONS AND EXEMPTIONS--Table of Contents
 
              Subpart D--Exemptions for Returning Residents
 
Sec. 148.37  Replacement of unsatisfactory articles acquired abroad.

    (a) Free entry of replacement articles. An article furnished by a 
foreign supplier to replace a like article of comparable value 
previously exempted from duty under the $400, $600, or $1,200 exemptions 
for articles acquired abroad shall be allowed free entry if the original 
article is found by the importer to be unsatisfactory and the procedures 
provided by paragraph (b) of this section are followed. In any case in 
which the importer has failed to follow these procedures, the port 
director may allow free entry of the replacement article if he is 
satisfied that the unsatisfactory article was timely exported and that 
the failure to comply with the procedures of paragraph (b) of this 
section was due to inadvertence or lack of experience in Customs matters 
and was without willful intent to avoid Customs supervision.
    (b) Procedure for replacement. Any article previously exempted from 
duty under the $400, $600, or $1,200 exemptions found by the importer to 
be unsatisfactory shall be returned to Customs custody and exported 
under Customs supervision at the expense of the importer within 60 days 
after its importation. A certificate of registration on Customs Form 
4455 shall be issued to the importer with instructions as to its use 
when the unsatisfactory article is exported for replacement under the 
provisions of subheading 9804.00.75, Harmonized Tariff Schedule of the 
United States.
    (c) Articles found damaged upon declaration. The requirement that 
the original article be exported under Customs supervision does not 
apply when a duplicate article is furnished by a foreign supplier as a 
replacement for an article declared for entry under the $400, $600, or 
$1,200 exemption and found by the Customs inspector or other examining 
officer to be so damaged as to constitute a nonimportation (Sec. 158.11 
of this chapter). In such a case, Customs Form 4455 shall be issued to 
the importer at the time the determination of nonimportation is made and 
the duplicate replacement shall be considered to have been acquired 
abroad for the purposes of the $400, $600, or $1,200 exemption 
provision, provided no charge is made to the importer for the duplicate 
replacement.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 86-118, 51 FR 
22516, June 20, 1986; T.D. 89-1, 53 FR 51264, Dec. 21, 1988; T.D. 97-75, 
62 FR 46442, Sept. 3, 1997]