[Code of Federal Regulations] [Title 19, Volume 2] [Revised as of April 1, 2006] From the U.S. Government Printing Office via GPO Access [CITE: 19CFR148.37] [Page 146] TITLE 19--CUSTOMS DUTIES CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED) 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]