[Title 19 CFR D]
[Code of Federal Regulations (annual edition) - April 1, 2002 Edition]
[Title 19 - CUSTOMS DUTIES]
[Chapter I - UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY]
[Part 148 - PERSONAL DECLARATIONS AND EXEMPTIONS]
[Subpart D - Exemptions for Returning Residents]
[From the U.S. Government Printing Office]


19CUSTOMS DUTIES22002-04-012002-04-01falseDSubpart DCUSTOMS DUTIESUNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURYPERSONAL DECLARATIONS AND EXEMPTIONS
              Subpart D--Exemptions for Returning Residents



Sec. 148.31  Effects taken abroad.

    (a) Exemption. Each returning resident (including American citizens 
who are residents of American Samoa, Guam, the Commonwealth of the 
Northern Mariana Islands, or the Virgin Islands of the United States) is 
entitled to bring in free of duty and internal revenue tax under 
subheading 9804.00.45, and Chapter 98, U.S Note 3, Harmonized Tariff 
Schedule of the United States, (19 U.S.C. 1202), all personal and 
household effects taken abroad. To ensure allowance of the exemption, 
articles of foreign origin should be registered in accordance with 
Sec. 148.1. Automobiles and other vehicles, aircraft, boats, teams and 
saddle horses, together with their accessories, may be brought in free 
of duty if taken abroad for noncommercial use (see Sec. 148.32).
    (b) Repair or alteration while abroad. If any such personal or 
household effect taken abroad has been advanced in value or improved in 
condition while abroad by repairs (including cleaning) not merely 
incidental to wear or use while abroad, or by alterations (including 
additions) which did not change the identity of the article, the cost or 
value of such repairs or alterations is subject to duty unless all or 
part of such cost or value is covered by an allowance of the $400, $600, 
or $1,200 exemption for articles acquired abroad (see Sec. 148.33). An 
effect taken abroad and there changed into a different article is 
dutiable at its full value when returned to the United States, unless 
covered in whole or in part by some provision for free entry.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-394, 43 FR 
49788, Oct. 25, 1978; 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 46441, Sept. 3, 1997]



Sec. 148.32  Vehicles, aircraft, boats, teams and saddle horses taken abroad.

    (a) Admission free of duty. Automobiles and other vehicles, 
aircraft, boats, teams and saddle horses, together with their 
accessories, taken abroad for noncommercial use and returned by a 
returning resident shall be admitted free of duty upon being 
satisfactorily identified.
    (b) Identification of articles taken abroad. Upon the request of the 
owner or his agent, the port director shall cause any article described 
in paragraph (a) of this section to be examined before it is taken 
abroad, and shall issue a certificate of registration therefor on 
Customs Form 4455. On the return of the article, the certificate may be 
accepted as satisfactory identification of the described article for the 
purpose of admitting the article free of duty. In lieu of Customs Form 
4455, the following may be accepted as satisfactory identification of 
such articles taken abroad:
    (1) For an automobile, the State registration card;
    (2) For an aircraft, the certificate of registration issued by the 
Federal Aviation Administration; and
    (3) For a pleasure boat, the yacht license or motorboat 
identification certificate.
    (c) Repairs, alterations, and accessories. Repairs made abroad to 
articles described in paragraph (a) of this section, if incidental to 
use abroad, are not subject to duty. Repairs not incidental to use 
abroad, and alterations and additions made abroad, shall be assessed 
with duty upon their value at the rate at which the article itself would 
be dutiable if imported. Accessories for articles described in paragraph 
(a) of this section which are acquired abroad are

[[Page 142]]

dutiable as if separately imported. Any accessories, repairs, 
alterations, or additions, which accompany the returning resident at the 
time of his return to the United States shall be included in his baggage 
declaration.
    (d) Entry. Entry on a baggage declaration or regular entry (see 
Sec. 148.5) shall be required if:
    (1) The owner or his agent is unable to produce a proper 
registration card or certificate to cover the article;
    (2) A claim for free entry of repairs, alterations, additions, or 
accessories is to be made under the $400, $600, or $1,200 returning 
resident's exemption for articles acquired abroad; or
    (3) Duty is to be collected.

[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. 97-75, 62 FR 46441, Sept. 3, 1997]



Sec. 148.33  Articles acquired abroad.

    (a) Exemption. Each returning resident is entitled to bring in free 
of duty and internal revenue tax under subheadings 9804.00.65, 
9804.00.70 and 9804.00.72, and Chapter 98, U.S. Note 3, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202), articles for his 
personal or household use which were purchased or otherwise acquired 
abroad merely as an incident of the foreign journey from which he is 
returning, subject to the limitations and conditions set forth in this 
section and Secs. 148.34-148.38. The aggregate fair retail value in the 
country of acquisition of such articles for personal and household use 
shall not exceed:
    (1) $400, and provided that the articles accompany the returning 
resident;
    (2) Whether or not the articles accompany the returning resident, 
$600 in the case of a direct arrival from a beneficiary country as 
defined in Sec. 10.191(b)(1) of this chapter, not more than $400 of 
which shall have been acquired elsewhere than in beneficiary countries; 
or
    (3) Whether or not the articles accompany the returning resident, 
$1,200 in the case of a direct or indirect arrival from American Samoa, 
Guam, the Commonwealth of the Northern Mariana Islands, or the Virgin 
Islands of the United States, not more than $400 of which shall have 
been acquired elsewhere than in such locations except that up to $600 of 
which may have been acquired in one or more beneficiary countries as 
defined in Sec. 10.191(b)(1) of this chapter.
    (b) Application to articles of highest rate of duty. The $400, $600, 
or $1,200 exemption shall be applied to the aggregate fair retail value 
in the country of acquisition of the articles acquired abroad which are 
subject to the highest rates of duty. If an internal revenue tax is 
applicable, it shall be combined with the duty in determining which 
rates are highest.
    (c) Gifts. An article acquired abroad by a returning resident and 
imported by him to be disposed of after importation as his bona fide 
gift is considered to be for the personal use of the returning resident 
and may be included in the exemption.
    (d) Tobacco products and alcoholic beverages. Cigars, cigarettes, 
manufactured tobacco, and alcoholic beverages may be included in the 
exemption to which a returning resident is entitled, with the following 
limits:
    (1) No more than 200 cigarettes and 100 cigars may be included, 
except that in the case of American Samoa, Guam, the Commonwealth of the 
Northern Mariana Islands and the Virgin Islands of the United States the 
cigarette limit is 1,000, not more than 200 of which shall have been 
acquired elsewhere than in such locations;
    (2) No alcoholic beverages shall be included in the case of an 
individual who has not attained the age of 21; and
    (3) No more than 1 liter of alcoholic beverages may be included, 
except that:
    (i) An individual returning directly or indirectly from American 
Samoa, Guam, the Commonwealth of the Northern Mariana Islands or the 
Virgin Islands of the United States may include in the exemption not 
more than 5 liters of alcoholic beverages, not more than 1 liter of 
which shall have been acquired elsewhere than in such locations and not 
more than 4 liters of which shall have been produced elsewhere than in 
such locations; and
    (ii) An individual returning directly from a beneficiary country as 
defined in Sec. 10.191(b)(1) of this chapter may include in the 
exemption not more than 2 liters of alcoholic beverages if at

[[Page 143]]

least 1 liter is the product of one or more beneficiary countries.
    (e) Exemption not applicable. The exemption does not apply to 
articles intended for sale or acquired on commission, i.e., for the 
account of another person, with or without compensation for the service 
rendered. Articles acquired on one journey and left in a foreign country 
cannot be allowed the exemption accruing upon the return of the resident 
from a subsequent journey.
    (f) Remainder not applicable to subsequent journey. A returning 
resident who has received a total exemption of less than the $400, $600, 
or $1,200 maximum in connection with his return from one journey is not 
entitled to apply the unused portion of that maximum amount to articles 
acquired abroad on a subsequent journey.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-394, 43 FR 
49788, Oct. 25, 1978; T.D. 80-179, 45 FR 45580, July 7, 1980; 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 46441, Sept. 3, 1997]



Sec. 148.34  Family grouping of exemptions for articles acquired abroad.

    (a) Grouping of exemptions. Each member of a family is entitled to 
the $400, $600, or $1,200 exemption for articles acquired abroad, 
subject to the conditions prescribed in this subpart. When members of a 
family residing in one household travel together on their return to the 
United States, the $400, $600, or $1,200 exemption to which the several 
members of the family may be entitled may be grouped and allowed without 
regard to which member of the family is the owner of the articles. 
However, a group exemption shall not include an exemption for a family 
member not entitled to it in his own right, nor shall a group exemption 
be applied to any property of such a member. The exemption of a family 
member who has not attained the age of 21 shall not be applied under the 
group exemption to alcoholic beverages. No exemptions allowable to a 
resident servant accompanying the family shall be included in the family 
grouping.
    (b) Members of a family residing in one household. The term 
``members of a family in one household'' shall include all persons, 
regardless of age, who:
    (1) Are related by blood, marriage, or adoption;
    (2) Lived together in one household at their last permanent 
residence; and
    (3) Intend to live together in one household after their arrival in 
the United States.

[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. 97-75, 62 FR 46442, Sept. 3, 1997]



Sec. 148.35  Length of stay for exemption of articles acquired abroad.

    (a) Required for allowance of $400, $600, or $1,200 exemption. 
Except as otherwise provided in this paragraph or in paragraph (b) of 
this section, the $400, $600, or $1,200 exemption for articles acquired 
abroad shall not be allowed unless the returning resident has remained 
beyond the territorial limits of the United States for a period of not 
less than 48 hours. The $400 exemption may be allowed on articles 
acquired abroad by a returning resident arriving directly from Mexico 
without regard to the length of time the person has remained outside the 
territorial limits of the United States.
    (b) Not required for allowance of $1,200 exemption on return from 
Virgin Islands. The $1,200 exemption applicable in the case of the 
arrival of a returning resident directly or indirectly from the Virgin 
Islands of the United States may be allowed without regard to the length 
of time such person has remained outside the territorial limits of the 
United States.
    (c) Computation of time. The 48-hour period a returning resident 
must have completed abroad to be entitled to an exemption shall be 
computed exactly. For example, a resident leaving United States 
territory at 1:30 p.m. on June 1 would complete the 48-hour period at 
1:30 p.m. on June 3.

[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. 97-75, 62 FR 46442, Sept. 3, 1997]



Sec. 148.36  Frequency of allowance of exemption for articles acquired abroad.

    (a) 30-day period. The $400, $600, or $1,200 exemption for articles 
acquired

[[Page 144]]

abroad shall not be granted to a returning resident who has taken 
advantage of such exemption within the 30-day period immediately 
preceding his return to the United States. The date of the returning 
resident's latest prior arrival on which he declared articles acquired 
abroad for allowance of the $400, $600, or $1,200 exemption shall be 
deemed the date he took advantage of the applicable exemption.
    (b) Computation of time. The 30-day period immediately preceding the 
resident's return shall be computed by excluding the day of arrival and 
counting backward 30 days. For example, in the case of an arrival on May 
28, the resident would not be entitled to the $400, $600, or $1,200 
exemption if he had taken advantage of such exemption on or after the 
preceding April 28.

[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. 97-75, 62 FR 46442, Sept. 3, 1997]



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]



Sec. 148.38  Sale of articles acquired abroad.

    An article brought in under the $400, $600, or $1,200 exemption for 
articles acquired abroad for personal or household use and subsequently 
sold is not dutiable or subject to forfeiture by reason of the sale if 
the returning resident actually acquired and imported the article for 
his bona fide personal or household use and not for sale.

[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. 97-75, 62 FR 46442, Sept. 3, 1997]



Sec. 148.39  Rented automobiles.

    (a) Importation for temporary period. An automobile rented by a 
resident of the United States while abroad may be brought into the 
United States by or on behalf of such resident for a temporary period 
not to exceed 30 days under subheading 9804.00.60, Harmonized Tariff 
Schedule of the United States (HTSUS) (19 U.S.C. 1202), without payment 
of duty. The automobile shall be used for the transportation of

[[Page 145]]

the resident and that of his family and guests, and for such incidental 
carriage of articles as may be appropriate to his personal use of the 
automobile. No entry or security for exportation shall be required.
    (b) Unauthorized use or failure to export. If any automobile 
exempted from duty under subheading 9804.00.60, HTSUS (19 U.S.C. 1202), 
is used otherwise than for the purpose expressed or is not returned 
abroad within 30 days, without prior payment to a port director of the 
duty which would have been payable at the time of entry if entered 
without benefit of the exemption, the automobile or its value (to be 
recovered from the importer) shall be subject to forfeiture.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51264, Dec. 21, 1988]