[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: 19CFR19.15]

[Page 317-318]
 
                        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. 19.15  Withdrawal for exportation of articles manufactured in bond; waste or byproducts for consumption.

    (a) Except cigars manufactured in bond and supplies for vessels, no 
articles or materials received into a bonded manufacturing warehouse or 
articles manufactured therefrom shall be withdrawn or removed therefrom 
except for direct exportation or transportation and exportation in bond 
to a foreign country. The exportation or shipment shall in every case be 
under the supervision of Customs.
    (b) The coverings or containers of imported articles or materials, 
whether or not subject to duty apart from their contents, are not 
``articles or materials'' within the meaning of section 311, Tariff Act 
of 1930, as amended, and need not be exported, but may be withdrawn from 
the warehouse for consumption under Customs Form 7501 upon payment of 
the duties applicable to such coverings or containers in their condition 
as withdrawn.
    (c) Labels, coverings, and empty containers imported to be used in 
putting up the manufactured articles, if subject to duty or tax, 
constitute ``articles or materials'' within the meaning of section 311, 
Tariff Act of 1930, as amended, but may be withdrawn for consumption 
upon payment of all applicable duties and taxes.
    (d) When waste or a byproduct is withdrawn for consumption, Customs 
Form 7501 shall be used, modified as necessary and describing in detail 
the waste or byproduct and the imported material from which it was 
produced. Such waste or byproduct shall be appraised at its wholesale 
value at the time of withdrawal in the principal markets of the country 
from which the material was imported, determined in accordance with the 
provisions of section 402, Tariff Act of 1930, as amended. Upon payment 
of the duty, the withdrawal permit shall be issued for delivery and a 
proper credit given upon the manufacturer's bond.
    (e) Each withdrawal covering the items which are permitted to be 
withdrawn for consumption shall contain a summary statement thereon, 
showing for each class of merchandise the quantity on hand in the 
account, the quantity covered by the withdrawal presented, and the 
quantity remaining in the warehouse account, if any.
    (f) The general procedure covering warehouse withdrawals for 
exportation shall be followed in the case of articles withdrawn for 
exportation from a bonded manufacturing warehouse, except that in the 
case of flour each copy of Customs Form 7512 shall bear the following 
legend:

    Produced from wheat imported after September 15, 1930, without 
payment of duty thereon. Must not be exported to Cuba without permission 
from the director of the port of withdrawal.

    (g)(1) Articles may be withdrawn for transportation and delivery to 
a bonded storage warehouse at an exterior port under the provisions of 
section 311, Tariff Act of 1930, as amended (19 U.S.C. 1311), for the 
sole purpose of immediate export, except for distilled spirits which may 
be withdrawn under the provisions of section 311 for transportation and 
delivery to any bonded storage warehouse for the sole purpose of 
immediate export, or may be withdrawn pursuant to section 309(a) of the 
Tariff Act of 1930, as amended (19 U.S.C. 1309(a)). Such withdrawal 
shall be affected on Customs Form 7512, as provided for in Sec. 144.36 
of this chapter. A rewarehouse entry shall be made in accordance with 
Sec. 144.34(b) of this chapter, supported by a bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.63 of this chapter.
    (2) Domestic distilled spirits transferred from a Customs bonded 
manufacturing warehouse, class 6, to a Customs bonded storage warehouse, 
class 2 or 3, in accordance with section 311, Tariff Act of 1930, as 
amended (19 U.S.C. 1311), shall be rewarehoused in

[[Page 318]]

accordance with the procedure for withdrawal and rewarehousing set forth 
in paragraph (g)(1) of this section. For other regulations concerning 
the entry and withdrawal of distilled spirits, see Sec. 144.15 of this 
chapter.
    (h) No merchandise manufactured in a bonded manufacturing warehouse 
may be withdrawn by a person other than the manufacturer either from the 
manufacturing warehouse or from a warehouse where the merchandise is 
stored awaiting direct exportation, unless an authorization of the 
manufacturer is endorsed on the face of the withdrawal, or the 
manufacturer previously and in writing has transferred the right of 
withdrawal.
    (i) When spirits and wines are withdrawn for shipment to Puerto Rico 
under section 311, Tariff Act of 1930, as amended, the procedure 
outlined in Sec. 7.1 of this chapter shall be followed.
    (j) As proof of manufacture and exportation, the manufacturer, 
within 6 months from the date of demand by the port director, shall file 
in the case of each transaction or period of manufacture a statement 
certified by the warehouse proprietor showing the date and number of the 
bond, the quantity and identity of the dutiable or taxable merchandise 
used, and the quantity and description of the articles into which it has 
been manufactured, together with the quantities of any byproducts and 
waste produced. In the case of articles manufactured with the use of 
distilled spirits, the statement shall also be verified by the foreman 
or chemist of the factory and shall show the number of packages of 
spirits used, the marks and numbers, the number of wine, proof and 
taxable gallons, and the degree of proof.
    (k) The same proofs of exportation shall be required as in the case 
of other warehouse withdrawals for exportation.
    (l) When the fact of exportation of all the products has been 
established by such proofs and any byproducts and waste have been 
exported or released for consumption, the bond given by the 
manufacturer, or the charges against his bond, shall be canceled.
    (m) Shortage, irregular delivery, and nondelivery occurring with 
respect to merchandise withdrawn from bonded manufacturing warehouse 
while it is under transportation in bond shall be charged against the 
bonded carrier.

[28 FR 14763, Dec. 31, 1963, as amended by T.D. 73-62, 38 FR 5630, Mar. 
2, 1973; T.D. 73-175, 38 FR 17446, July 2, 1973; T.D. 78-298, 43 FR 
38382, Aug. 28, 1978; T.D. 80-271, 45 FR 75641, Nov. 17, 1980; T.D. 82-
204, 47 FR 49373, Nov. 1, 1982; T.D. 84-213, 49 FR 41170, Oct. 19, 1984; 
T.D. 89-1, 53 FR 51254, Dec. 21, 1988; T.D. 95-81, 60 FR 52295, Oct. 6, 
1995]