[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: 19CFR162.52]

[Page 255]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 162--INSPECTION, SEARCH, AND SEIZURE--Table of Contents
 
               Subpart E--Treatment of Seized Merchandise
 
Sec. 162.52  Disposition of proceeds of sale of property seized and forfeited under 19 U.S.C. 1592.

    (a) Order of disposition of proceeds. Section 613 of the Tariff Act 
of 1930, as amended (19 U.S.C. 1613), provides for the disposition of 
the proceeds from the sale of property seized and forfeited under 
section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592), as 
provided for in Sec. 162.75 of this part. Distribution shall be made in 
the following order:
    (1) Internal revenue taxes.
    (2) Marshal's fees and court costs.
    (3) Expenses of advertising and sale.
    (4) Expenses of cartage, storage, and labor. When proceeds are 
insufficient to pay these expenses fully, they shall be paid pro rata.
    (5) Duties.
    (6) Any sum due to satisfy a lien for freight, charges, or 
contributions in general average, provided notice of the lien has been 
given in the manner prescribed by law.
    (7) The monetary penalty assessed under 19 U.S.C. 1592.
    (8) The remaining proceeds, if any, shall be paid to the appropriate 
party-in-interest as provided in paragraph (b).
    (b) Determination of appropriate party-in-interest. (1) If the 
property is subject to a judicial forfeiture proceeding and if it 
appears at the time of this proceeding that 2 or more parties claim an 
interest in the remaining proceeds referred to in paragraph (a)(8), each 
of the parties shall be joined in the proceeding so that the issue of 
proper distribution may be determined by the court.
    (2) If the property is sold under the summary forfeiture procedure, 
or if the court has not specified the manner of distribution, the Fines, 
Penalties, and Forfeitures Officer shall hold the excess proceeds for 3 
months from the date of the sale to allow any party-in-interest to claim 
the proceeds.
    (3) If there is one alleged violator and no petition has been filed 
for the excess proceeds by another person, the excess proceeds shall be 
disbursed to the person against whom the penalty was assessed.
    (4) If there are 2 or more persons with claims or possible claims to 
the excess proceeds, the Fines, Penalties, and Forfeitures Officer shall 
attempt to obtain a written agreement from the parties as to the 
distribution. If an agreement cannot be reached, the matter shall be 
referred to Customs Headquarters for determination.
    (c) Official use of seized and forfeited property. If the seized and 
forfeited property has been authorized for official use, its retention 
or delivery shall be regarded as a ``sale'' for the purposes of section 
613, Tariff Act of 1930, as amended (19 U.S.C. 1613). The appropriation 
available to the receiving agency for the purchase, hire, operation, 
maintenance, and repair of the type of property involved shall be 
distributed as provided in paragraphs (a) and (b).

[T.D. 79-160, 44 FR 31958, June 4, 1979, as amended by T.D. 99-27, 64 FR 
13676, Mar. 22, 1999]

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