[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: 19CFR162.52]



[Page 255-256]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)

 

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



[[Page 256]]



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]