[Title 19 CFR 158]
[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 158 - RELIEF FROM DUTIES ON MERCHANDISE LOST, DAMAGED, ABANDONED, OR EXPORTED]
[From the U.S. Government Printing Office]


19CUSTOMS DUTIES22002-04-012002-04-01false158PART 158CUSTOMS DUTIESUNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
PART 158--RELIEF FROM DUTIES ON MERCHANDISE LOST, DAMAGED, ABANDONED, OR EXPORTED--Table of Contents




Sec.
158.0  Scope.

  Subpart A--Lost or Missing Packages and Deficiencies in Contents of 
                                Packages

158.1  Definition of ``permitted'' merchandise.
158.2  Shortages in packages released under immediate delivery or entry.
158.3  Allowance for lost or missing packages included in an entry 
          summary.
158.4  Liability of carrier for lost or missing packages.
158.5  Deficiencies in contents of packages--general.
158.6  Deficiencies in contents of examination packages.
158.7  Allowance for reduction or loss of merchandise by a natural force 
          or by leakage.

               Subpart B--Damaged or Defective Merchandise

158.11  Merchandise completely worthless at time of importation.
158.12  Merchandise partially damaged at time of importation.
158.13  Allowance for moisture and impurities.
158.14  Perishable merchandise condemned.

[[Page 216]]

      Subpart C--Casualty, Loss, or Theft While in Customs Custody

158.21  Allowance in duties for casualty, loss, or theft while in 
          Customs custody.
158.21a  Time period.
158.22  Not applicable when allowances made under other provisions.
158.23  Filing of application and evidence by importer.
158.24  Place of filing.
158.25  Partial destruction or injury.
158.26  Loss or theft in public stores.
158.27  Accidental fire or other casualty.
158.28  Waiver of evidence.
158.29  Decision by port director.
158.30  Review of port director's decision.

        Subpart D--Destroyed, Abandoned, or Exported Merchandise

158.41  Destruction of prohibited merchandise.
158.42  Abandonment by importer within 30 days after entry.
158.43  Abandonment or destruction of merchandise in bond.
158.44  Disposition of abandoned merchandise.
158.45  Exportation of merchandise.

    Authority: 19 U.S.C. 66, 1624, unless otherwise noted. Subpart C 
also issued under 19 U.S.C. 1563.

    Source: T.D. 72-258, 37 FR 20171, Sept. 27, 1972, unless otherwise 
noted.



Sec. 158.0  Scope.

    This part sets forth general rules for granting relief from duties 
on merchandise which is lost, damaged, abandoned, or exported.



  Subpart A--Lost or Missing Packages and Deficiencies in Contents of 
                                Packages



Sec. 158.1  Definition of ``permitted'' merchandise.

    For the purpose of this subpart, merchandise is ``permitted'' when 
Customs authorizes the carrier bringing the shipment to the port to make 
delivery to the consignee or the next carrier and:
    (a) These parties in interest, or their agents, make a joint 
determination of the quantities being delivered, or,
    (b) The carrier bringing the shipment to the port, at its option, 
independently declares the quantities available for delivery by filing 
with the port director, no later than the close of business on the next 
working day after a determination of quantities is made, a signed 
statement that:
    (1) An independent determination of quantities of merchandise 
available for delivery has been made, with the date of the determination 
shown;
    (2) At least 4 days have elapsed since the consignee or his agent 
was notified that Customs has authorized delivery; and,
    (3) The merchandise was and is available for delivery.



Sec. 158.2  Shortages in packages released under immediate delivery or entry.

    An importer may file an entry summary for consumption or an entry 
summary for warehouse for less than the invoiced and manifested number 
of packages in a shipment ``permitted'' and delivered to him or 
deposited in a bonded warehouse under the immediate delivery procedure 
in Sec. 142.21 of this chapter, or under the entry documentation in 
Sec. 142.3(a), if he files with the entry summary a Customs Form 5931 in 
triplicate. The Customs Form 5931 shall be completed by the importer 
with attached copies of the dock receipt or other documents evidencing 
nonreceipt of the lost or missing packages.

[T.D. 85-159, 50 FR 38520, Sept. 23, 1985]



Sec. 158.3  Allowance for lost or missing packages included in an entry summary.

    Allowance shall be made in the assessment of duties for lost or 
missing packages of merchandise included in an entry summary whenever it 
is established to the satisfaction of the port director before the 
liquidation of the entry summary becomes final that the merchandise 
claimed to be lost or missing was not ``permitted.'' A claim for such 
allowance shall be made on Customs Form 5931, in triplicate, executed by 
the importer and the importing carrier or bonded carrier, as 
appropriate. When the importing or bonded carrier refuses to execute the 
Customs Form 5931, a claim may be allowed if the importer properly 
executes the Customs Form 5931 and attaches copies of the dock receipt 
or other document

[[Page 217]]

evidencing nonreceipt of the lost or missing packages.

[T.D. 72-258, 37 FR 20171, Sept. 27, 1972, as amended by T.D. 79-221, 44 
FR 46829, Aug. 9, 1979]



Sec. 158.4  Liability of carrier for lost or missing packages.

    Upon a joint determination or independent determination of quantity 
as set forth in Sec. 158.1 (a) or (b) resulting in the merchandise being 
``permitted,'' the carrier shall be responsible only for any discrepancy 
between the manifested quantity and the ``permitted'' quantity. In the 
case of an importing carrier, when there is a difference between the 
quantity shown on the inward foreign manifest and the quantity 
``permitted,'' liquidated damages or duties shall be assessed under the 
provisions of the carrier's bond or under the provisions of section 448, 
Tariff Act of 1930, as amended (19 U.S.C. 1448), unless the carrier 
corrects his manifest (see Sec. 4.12 of this chapter). In the case of a 
bonded carrier, liquidated damages for lost or missing merchandise shall 
be assessed in accordance with Sec. 18.8 of this chapter.



Sec. 158.5  Deficiencies in contents of packages--general.

    An allowance shall be made in the assessment of duties for 
deficiencies in the contents of packages when, before the liquidation of 
the entry becomes final, the importer files:
    (a) In the case of a concealed shortage, a Customs Form 5931, in 
triplicate, executed by the importer alone, and the port director 
satisfies himself as to the validity of the claim; or,
    (b) In the case of an unconcealed shortage, a Customs Form 5931, in 
triplicate, executed by both the importer and the importing or bonded 
carrier, as appropriate.



Sec. 158.6  Deficiencies in contents of examination packages.

    Allowance for deficiency in the contents of any examination package 
reported to the port director by a Customs officer shall be made in the 
liquidation of the entry. No Customs officer except one making an 
examination contemplated by section 499, Tariff Act of 1930, as amended 
(19 U.S.C. 1499), shall report a supposed deficiency to the port 
director unless it is established to the satisfaction of the reporting 
officer that the merchandise was not imported.

(Sec. 499, 46 Stat. 728, as amended; 19 U.S.C. 1499)



Sec. 158.7  Allowance for reduction or loss of merchandise by a natural force or by leakage.

    Merchandise subject to ad valorem, specific, or compound rates of 
duty found at the time of importation to be reduced or diminished by a 
natural force, such as evaporation, or by leakage, shall be appraised in 
its condition as imported, with an allowance made in the value, weight, 
quantity, or measure to the extent of the reduction or loss, except when 
forbidden by law or regulation.

(R.S. 251, as amended, sec. 499, sec. 624, 46 Stat. 728, as amended, 759 
(19 U.S.C. 66, 1499, 1624))

[T.D. 78-448, 43 FR 53713, Nov. 17, 1978]



               Subpart B--Damaged or Defective Merchandise



Sec. 158.11  Merchandise completely worthless at time of importation.

    (a) Nonperishable merchandise. When a shipment of nonperishable 
merchandise, or any portion thereof which shall have been segregated 
from the remainder of the shipment under Customs supervision at the 
expense of the importer, is found by the port director to be entirely 
without commercial value at the time of importation by reason of damage 
or deterioration, an allowance in duties on such merchandise on the 
ground of nonimportation shall be made in the liquidation of the entry.
    (b) Perishable merchandise. In the case of perishable merchandise, 
an allowance in duties may be made under the following conditions:
    (1) An application for such allowance shall be filed with the port 
director on Customs Form 4315 in duplicate, within 96 hours after the 
unlading of the merchandise and before any of the shipment involved has 
been removed from the pier (or other area permitted under 
Sec. 142.2(b)(2) of this chapter) pursuant to the entry permit.

[[Page 218]]

    (2) Should an application filed in accordance with paragraph (b)(1) 
of this section be withdrawn, the merchandise involved shall thereafter 
be released upon presentation of an appropriate permit.
    (3) Allowance in duty shall be made in the liquidation of the entry 
on such of the merchandise covered by the application as is found by the 
port director to be entirely without commercial value by reason of 
damage or deterioration.

(Sec. 506, 46 Stat. 732, as amended; 19 U.S.C. 1506)

[T.D. 72-258, 37 FR 20171, Sept. 27, 1972, as amended by T.D. 76-220, 41 
FR 33248, Aug. 9, 1976]



Sec. 158.12  Merchandise partially damaged at time of importation.

    (a) Allowance in value. Merchandise which is subject to ad valorem 
or compound duties and found by the port director to be partially 
damaged at the time of importation shall be appraised in its condition 
as imported, with an allowance made in the value to the extent of the 
damage. However, no allowance shall be made when forbidden by law or 
regulation; for example, Chapter 72, Additional U.S. Note 3, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202), provides that no 
allowance or reduction of duties for partial damage or loss in 
consequence of discoloration or rust occurring before importation shall 
be made upon iron or steel or upon any article of iron or steel.
    (b) No allowance in specific duties. In the case of merchandise 
subject to specific or compound duties and found to be partially damaged 
at the time of importation, no allowance may be made in the specific 
duties or in the weight, quantity, or measure (except that an allowance 
for any excessive moisture or other impurities may be made in accordance 
with Sec. 158.13). However, any part of the shipment which is totally 
worthless and can be segregated from the rest of the shipment may be 
treated as a nonimportation in accordance with Sec. 158.11.

(Sec. 506, 46 Stat. 732, as amended; 19 U.S.C. 1506)

[T.D. 72-258, 37 FR 20171, Sept 27, 1972, as amended by T.D. 89-1, 53 FR 
51270, Dec. 21, 1988]



Sec. 158.13  Allowance for moisture and impurities.

    (a) Application by importer. (1) Petroleum and petroleum products. 
An application for an allowance in duties under section 507, Tariff Act 
of 1930, as amended (19 U.S.C. 1507), for all detectable moisture and 
impurities present in or upon imported petroleum or petroleum products 
shall be made by the importer on Customs Form 4315. The application 
shall be filed with the port director within 10 days of the port 
director's receipt of the gauging report or within 10 days of Customs 
acceptance of the entry's invoice gauge.
    (2) Other products. An application for an allowance in duties under 
19 U.S.C. 1507 for products other than petroleum or petroleum products 
for excessive moisture or other impurities not usually found in or upon 
such or similar merchandise shall be made by the importer on Customs 
Form 4315. The application shall be filed with the port director within 
10 days after the report of weight or gauge has been received by the 
port director or within 10 days after the date upon which the entry or a 
related document was endorsed to show that invoice weight or gauge has 
been accepted by the Customs inspector or other Customs officer.
    (b) Allowance by port director. If the port director is satisfied 
after any necessary investigation that the merchandise contains moisture 
or impurities as described in paragraph (a) of this section, he shall 
make allowance for the amount thereof in the liquidation of the entry.

[T.D. 90-78, 55 FR 40167, Oct. 2, 1990]



Sec. 158.14  Perishable merchandise condemned.

    (a) Application by importer. When fruit or other perishable 
merchandise has

[[Page 219]]

been condemned by health officers or other legally constituted 
authorities within 10 days after landing, an importer who desires 
allowance in duties under section 506(2), Tariff Act of 1930, as amended 
(19 U.S.C. 1506(2)), shall within 5 days after such condemnation file 
with the port director written notice of the condemnation. The date of 
landing in the case of merchandise forwarded under an entry for 
immediate transportation is the date of arrival at the port of 
destination.
    (b) Allowance in duties. If the port director is satisfied after any 
necessary investigation that the claim is valid, allowance in duties 
shall be made in the liquidation of the entry. Such allowance shall be 
limited to perishable goods condemned by the health officers or 
authorities in the original package, unless segregation of the 
merchandise was under constant Customs supervision at the importer's 
expense.

(Sec. 506(2), 46 Stat. 732, as amended; 19 U.S.C. 1506(2))



      Subpart C--Casualty, Loss, or Theft While in Customs Custody



Sec. 158.21  Allowance in duties for casualty, loss, or theft while in Customs custody.

    Section 563(a), Tariff Act of 1930, as amended (19 U.S.C. 1563(a)), 
provides for allowance in duties upon satisfactory proof of the loss or 
theft of any merchandise while in the public stores, or of the actual 
injury or destruction, in whole or in part, of any merchandise by 
accidental fire or other casualty, while in bonded warehouse, or in the 
public stores, or while in transportation under bond, or while in 
Customs custody although not in bond, or while within the limits of any 
port of entry and before having been landed under Customs supervision. 
Such allowance is subject to the conditions set forth in this subpart.



Sec. 158.21a  Time period.

    An abatement or refund of duties shall be made in the case of injury 
to, or destruction of, merchandise in a bonded warehouse as a result of 
accidental fire or other casualty only if the fire or casualty occurs 
within 3 years from the date of importation.

[T.D. 79-221, 44 FR 46829, Aug. 9, 1979]



Sec. 158.22  Not applicable when allowances made under other provisions.

    The procedures in this subpart do not apply in cases where 
allowances in duties are made under subpart A or subpart B of this part, 
or Sec. 18.6 of this chapter.



Sec. 158.23  Filing of application and evidence by importer.

    Within 30 days from the date of his discovery of the loss, theft, 
injury, or destruction, the importer shall file an application in 
duplicate on Customs Form 4315, and within 90 days from the date of 
discovery shall file any evidence required by Sec. 158.26 or 
Sec. 158.27.



Sec. 158.24  Place of filing.

    The application and evidence shall be filed with the director of the 
port where the loss, theft, injury, or destruction occurred. In the case 
of total loss of merchandise by fire or other casualty while in 
transportation under bond, the application and evidence shall be filed 
with the director of the port at which the transportation entry was 
made. In the case of partial destruction of or injury to such 
merchandise, the application and evidence shall be filed with the 
director of the port of destination, except that if the merchandise is 
returned to the port at which the transportation entry was made, the 
application shall be filed at that port.



Sec. 158.25  Partial destruction or injury.

    In the case of partial destruction or injury, no application shall 
be entertained unless the port director shall have had an opportunity to 
examine the merchandise or the remainder thereof for the purpose of 
fixing the percentage of injury or destruction. Whether the duty 
involved is ad valorem, specific, or compound, the percentage of injury 
for the purpose of the allowance shall be determined by comparing the 
market value of comparable sound merchandise with the net salvage value 
of the injured merchandise computed on the basis of the market

[[Page 220]]

value of comparable injured merchandise, such comparison to be made as 
of the time and place of examination.



Sec. 158.26  Loss or theft in public stores.

    In the case of alleged loss or theft while the merchandise is in the 
public stores, there shall be filed a declaration of the importer, 
owner, or ultimate consignee that he did not receive the merchandise and 
that to the best of his knowledge and belief it was lost or stolen as 
alleged in the application. If the alleged loss or theft consisted of 
only a part of an examination package and was discovered after the 
release of the package from Customs custody, the following evidence 
shall be submitted:
    (a) A declaration of each cartman, lighterman, or other carrier 
handling the package between the public stores and the place of 
delivery, setting forth the condition of the package at the time of 
receipt and delivery by him and whether or not there was an abstraction 
of the merchandise while the package was in his possession.
    (b) A declaration of the person who first received the package for 
the importer, owner, or ultimate consignee as to whether or not he 
examined the package at the time of receipt, and, if so, as to its 
condition at that time.
    (c) A declaration of the person who opened the package after release 
from Customs custody that the alleged missing merchandise was not found 
by him in the package or elsewhere.



Sec. 158.27  Accidental fire or other casualty.

    In the case of injury or destruction by accidental fire or other 
casualty, the following evidence shall be submitted:
    (a) A declaration of the master of the vessel, the conductor or 
driver of the vehicle, the proprietor of the warehouse, or other person 
(except a Customs officer) having charge of the merchandise at the time 
of casualty, stating:
    (1) The time, place, and nature of such casualty;
    (2) That the merchandise was on board the vessel or vehicle, in the 
warehouse, or otherwise in his charge, as the case may be, at the time 
of the casualty; and
    (3) That it was totally destroyed and there is no probability of 
recovering or saving any part thereof, or that it was injured as the 
result of the casualty.
    (b) The bill of lading, the entry summary (where appropriate) and 
the invoice covering the merchandise, or certified copies of the 
foregoing, unless such documents are already in the possession of the 
director of the port where the claim is filed.
    (c) A copy of the insurance appraiser's report, if any.

[T.D. 72-258, 37 FR 20171, Sept. 27, 1972, as amended by T.D. 79-221, 44 
FR 46829, Aug. 9, 1979]



Sec. 158.28  Waiver of evidence.

    The port director may waive the production of any of the evidence 
required by this subpart if the validity of the claim is otherwise 
established to his satisfaction.



Sec. 158.29  Decision by port director.

    When the application and evidence have been received and examined by 
the port director, he shall determine whether the desired abatement or 
refund of duty shall be made and notify the importer of his decision.



Sec. 158.30  Review of port director's decision.

    (a) Filing of petition. The importer may file with the port director 
a petition addressed to the Commissioner of Customs for a review of the 
port director's decision. Such petition shall be filed in duplicate 
within 30 days from the date of the notice of the port director's 
decision, shall completely identify the case, and shall set forth in 
detail the objections to the port director's decision.
    (b) Decision by Commissioner. When the petition has been filed, the 
port director shall promptly transmit both copies thereof and the entire 
file to the Commissioner, together with a full statement of his views. 
When the Commissioner's decision is received, the port director shall 
proceed in conformity therewith.

[[Page 221]]



        Subpart D--Destroyed, Abandoned, or Exported Merchandise



Sec. 158.41  Destruction of prohibited merchandise.

    Merchandise regularly entered or withdrawn for consumption in good 
faith and denied admission into the United States by any Government 
agency after its release from Customs custody, pursuant to a law or 
regulation in force on the date of entry or withdrawal for consumption, 
may be destroyed under Government supervision. In such case, the 
destroyed merchandise is exempt from duty and any duties collected 
thereon shall be refunded. In lieu of destruction, the merchandise may 
be exported under Customs supervision in accordance with Sec. 158.45(c).

(Sec. 558(a), 46 Stat. 744, as amended; 19 U.S.C. 1558(a))



Sec. 158.42  Abandonment by importer within 30 days after entry.

    Allowance in duties for merchandise abandoned to the Government in 
accordance with section 506(1), Tariff Act of 1930, as amended (19 
U.S.C. 1506(1)), shall be subject to the following conditions:
    (a) Minimum quantity to be abandoned. The merchandise being 
abandoned shall represent 5 percent or more of the total value of all 
the merchandise of the same class or kind entered in the invoice in 
which the merchandise being abandoned appears.
    (b) Application within 30 days. The importer shall file written 
notice of abandonment with the director of the port where the entry was 
filed within 30 days after the date of entry, or, in the case of 
examination packages, within 30 days after release, whether or not 
delivery is taken by the importer immediately after entry or release as 
the case may be.
    (c) Delivery of merchandise. Within the 30-day period set forth in 
paragraph (b) of this section, the importer shall deliver the abandoned 
merchandise to such place as the port director specifies, unless the 
port director is satisfied that the merchandise is so far destroyed as 
to be nondeliverable.
    (d) Identification of merchandise. The importer shall identify the 
abandoned merchandise with that described in the invoice used in making 
entry to the satisfaction of the port director, who shall make such 
examination as may be necessary to verify such identification.
    (e) Segregation and repacking. When repacking is necessary to 
segregate the abandoned merchandise from the remainder of the shipment, 
such repacking shall be done at the expense of the importer and under 
Customs supervision.

(Sec. 506, 46 Stat. 732, as amended; 19 U.S.C. 1506)



Sec. 158.43  Abandonment or destruction of merchandise in bond.

    Allowance in duties for merchandise entered under bond destroyed 
under section 557(c), Tariff Act of 1930, as amended (19 U.S.C. 
1557(c)), or for merchandise in bonded warehouse abandoned to the 
Government under section 563(b), Tariff Act of 1930, as amended (19 
U.S.C. 1563(b)), shall be subject to the following conditions:
    (a) Application by importer. The importer shall file an application 
for abandonment or destruction of merchandise in bond with the port 
director on Customs From 3499, with the title modified to read 
``Application and Permit to Abandon (or Destroy) Goods in Bond.'' When 
an application is for permission to destroy, the proposed method of 
destruction shall be stated in the application and be subject to the 
approval of the port director.
    (b) Concurrence of warehouse proprietor. An application to abandon 
or destroy warehoused merchandise shall not be approved unless concurred 
in by the warehouse proprietor.
    (c) Abandonment--(1) Costs. When in the opinion of the port director 
the abandonment of merchandise under section 563(b), Tariff Act of 1930, 
as amended (19 U.S.C. 1563(b)), will involve any expense or cost to the 
Government, or if the merchandise is worthless or unsalable, or cannot 
be sold for a sum sufficient to pay the expenses of sale, such 
abandonment shall not be permitted unless the importer deposits a sum 
which in the opinion of the port director will be sufficient to save the

[[Page 222]]

Government harmless from any expense or cost resulting from such 
abandonment. The sum so advanced shall be placed in a special deposit 
account and expended to cover the cost of destruction or to meet any 
deficit should the merchandise be sold and the proceeds of sale be less 
than the expenses of such sale. After meeting such expenses or deficit, 
any balance remaining shall be refunded to the importer. However, the 
applicant may elect to destroy such merchandise under Customs 
supervision pursuant to the provisions of section 557(c), Tariff Act of 
1930, as amended (19 U.S.C. 1557(c)).
    (2) Time period. The importer may abandon his warehoused merchandise 
voluntarily to the Government within 3 years from the date of 
importation.
    (d) Destruction--(1) Costs. Destruction of merchandise under section 
557(c), Tariff Act of 1930, as amended (19 U.S.C. 1557(c)), shall be at 
the expense of the importer.
    (2) Time period. The importer may request destruction of his 
warehoused merchandise within 5 years from the date of importation.
    (e) Action by port director. When the conditions set forth in 
paragraphs (a) through (d) of this section are met, the port director 
may grant applications and make an allowance in duties for the 
merchandise abandoned or destroyed. In any case where doubt exists, the 
matter shall be referred to the Commissioner of Customs.

(Secs. 557, 563, 46 Stat. 744, as amended, 746, as amended; 19 U.S.C. 
1557, 1563)

[T.D. 72-258, 37 FR 20171, Sept. 27, 1972, as amended by T.D. 79-221, 44 
FR 46829, Aug. 9, 1979]



Sec. 158.44  Disposition of abandoned merchandise.

    (a) General conditions. The disposition of merchandise abandoned to 
the Government pursuant to Sec. 158.42 or Sec. 158.43, and not retained 
for official use, shall be governed by the regulations of the General 
Services Administration applicable to the United States Customs Service.
    (b) Sale of merchandise. If the merchandise is cleared for sale, it 
shall be sold in accordance with the applicable provisions of part 127 
of this chapter, unless it is worthless or it appears probable that the 
expenses of sale will exceed the proceeds. If the merchandise is sold, 
no part of the proceeds shall be returned to the importer.
    (c) Disposition of worthless merchandise. If the merchandise or any 
part thereof is worthless or it appears probable that the expenses of 
its sale will exceed the proceeds, it shall be destroyed or otherwise 
disposed of as the port director shall specify. The port director shall 
insure that such merchandise is destroyed or removed from the control of 
the importer to avoid the possibility of any part of the same 
merchandise being made the subject of another application.

(Secs. 506(1), 563(b), 46 Stat. 732, as amended, 746, as amended; 19 
U.S.C. 1506(1), 1563(b) R.S. 251, as amended, sec. 624, 46 Stat. 759 (19 
U.S.C. 66, 1624))

[T.D. 72-258, 37 FR 20171, Sept. 27, 1972, as amended by T.D. 77-12, 41 
FR 56629, Dec. 29, 1976]



Sec. 158.45  Exportation of merchandise.

    (a) From continuous Customs custody. Merchandise in Customs custody 
for which entry has not been completed and merchandise which has 
remained in continuous Customs custody that is covered by a liquidated 
or unliquidated consumption entry may be exported under Customs 
supervision in accordance with Secs. 18.25 through 18.27 of this 
chapter, with refund of any duties that have been paid.
    (b) After release from Customs custody. Except as provided for in 
paragraphs (c) and (d) of this section, no refund or other allowance in 
duties shall be made because of the exportation of merchandise after its 
release from Customs custody unless a drawback of duties is expressly 
provided for by law (see part 191 of this chapter).
    (c) Prohibited merchandise. If merchandise has been regularly 
entered or withdrawn for consumption in good faith and is thereafter 
found to be prohibited entry under any law of the United States, it may 
be exported under Customs supervision in accordance with Secs. 18.25 
through 18.27 of this chapter, with refund of any duties that have been 
paid. In lieu of exportation, the merchandise may be destroyed in 
accordance with Sec. 158.41.

[[Page 223]]

    (d) Not legally marked merchandise. When merchandise found to be not 
legally marked is exported or destroyed under Customs supervision after 
once having been released from Customs custody, as provided for in 
section 304(f), Tariff Act of 1930, as amended (19 U.S.C. 1304(f)), such 
exportation or destruction shall not exempt such merchandise from the 
payment of duties other than the marking duties.

(Sec. 558, 46 Stat. 744, as amended; 19 U.S.C. 1558; R.S. 251, as 
amended, sec. 624, 46 Stat. 759 (19 U.S.C. 66, 1624))

[T.D. 72-258, 37 FR 20171, Sept. 27, 1972, as amended by T.D. 83-212, 48 
FR 46771, Oct. 14, 1983; T.D. 90-51, 55 FR 28191, July 10, 1990]