CHAPTER NINE.

DRAWBACK.

[This Chapter comprises sections 3015 to 3057 R. S.]

SEC. 3015. A drawback of duties, as prescribed by law, shall be allowed and paid on all merchandise imported into the United States, in respect to all such merchandise as shall be exported to any foreign port other than the dominions of any foreign state immediately adjoining to the United States, either from the district of original importation, or from certain other districts; and all duties, drawbacks, and allowances which shall be payable, or allowable, on any specific quantity of merchandise, shall be deemed to apply in proportion to any greater or lesser quantity, except as herein otherwise provided.

SEC. 3016. No merchandise imported shall be entitled to a drawback of the duties paid, unless the duties so paid shall amount to fifty dollars at least; nor unless they shall be exported in the original casks, cases, chests, boxes, trunks, or other packages, in which they were imported, without diminution or change of the articles which were therein contained, at the time of importation in quantity, quality, or value, necessary or unavoidable wastage or damage only excepted.

The limitation of $50 is not applicable to goods manufactured in the U. S. from imported materials under 3019. s. s. 3541. See note 14, § 3019.

SEC. 3017. No drawback of the duties shall be allowed on merchandise entitled to debenture under existing laws, unless such merchandise shall be exported from the United States within three years from the date of the importation of the same. One per centum on the amount of all drawbacks allowed shall be retained for the use of the United States by the collectors paying such drawbacks, respectively.

SEC. 3018. All drugs, medicines, and chemical preparations entered for exportation and deposited in warehouse or public store, may be exported by the owner thereof in the original package, or otherwise, subject to such regulations as shall be prescribed by the Secretary of the Treasury.

1. For certain regulations, see 1878, s. s. 3620.

2. Where drugs are to be repacked under the authority of this section, and the goods are of the same kind, the parties must exhaust entire cases before breaking new ones. 1884, s. s. 6572.

SEC. 3019. There shall be allowed on all articles wholly manufactured of materials imported, on which duties have been paid when

exported, a drawback equal in amount to the duty paid on such materials, and no more, to be ascertained under such regulations as shall be prescribed by the Secretary of the Treasury. Ten per centum on the amount of all drawbacks so allowed shall, however, be retained for the use of the United States by the collectors paying such drawbacks respectively.

[Section 3 of Act of March 3, 1875, provides as follows: And provided further, That of the drawback on refined sugars exported, allowed by section three thousand and nineteen of the Revised Statutes of the United States, only one per centum of the amount so allowed shall be retained by the United States.]

1. Foreign grain bags cannot be imported to be filled with grain and then exported, so as to be entitled to drawback; nor foreign salt to cure meat to be exported. 1874, s. s. 1952; 1879, id. 4137.

2. Grain cannot be imported free for the purpose of having the same ground and a return or export made of the product; the law authorizing importations for the purpose of manufacture and export cannot be extended beyond the specific articles named. 1875, 8. s. 2157.

3. Paper cannot be admitted free for use in printing sheets for books to be returned to the foreign country. 1875, s. s. 2206.

4. Bags of imported material in which domestic twine of insignificant value is used are entitled to drawback. 1879, s. s. 4217.

5. Exportation of articles manufactured of imported material is encouraged; and no inquiry will be made as to insignificant parts of such articles, such as caps on tin cans, or resin used in manufacture of same. 1879, s. s. 4274, 4282.

6. The manufacturer is entitled to recover the drawback whoever is the owner when the goods are exported. 1882, s. s. 5086.

7. The goods of different manufacturers may be entered for drawback in one entry upon the oath of their authorized agent. 1881, s. s. 5056.

8. Limitation under § 3016 to $50, no application here; see § 3016 n.; and n. 13, post. 9. Articles exported with benefit of drawback, cannot be returned free upon refunding the drawback, or otherwise than as foreign importation. 1882, s. s. 5200.

10. Glue sizing manufactured wholly from imported glue, is entitled to drawback. 1883, s. s. 5669.

11. Lumber cannot be imported in bond to be planed and exported, there being no provision to authorize the alteration of merchandise entered for exportation in bond. 1883, s. s. 5672.

12. No drawback is allowed on disks and scraps of tin from which cans have been made. 1885, s. s. 6756.

13. Articles entitled to the benefit of drawback under this section are not subject to the limitations of time and amount contained in sections 3016 and 3017. Hence tin cans, made of tin imported three years before, are entitled to drawback. 1885, s. s. 6748.

14. Drawback is allowed where the duties originally amounted to $50, but by reason of evaporation and leakage they were reduced to $41. 1885, s. s. 7089.

15. Scarfs, manufactured from imported lace streamers, by cutting the same to different lengths, are entitled to drawback upon exportation. 1885, s. s. 7090.

16. As to what constitutes a manufacture of lumber within the meaning of the drawback law, see 1886, s. s. 7364.

17. No allowance of drawback is granted where preliminary notice of intention to ship for drawback has not been filed, whatever may have been the cause of such failure, whether ignorance of the law or any other reason. 1886, s. s. 7842.

18. Tin boxes made from imported materials are not entitled to drawback when exported empty, if any portion of the boxes, the wire for hinges is not shown to be imported, although the wire forms an exceedingly small portion of value. 1887, s. s. 7997. 19. Planing of boards on one side does not constitute them "manufactured" articles so as to entitle them to drawback. 1887, s. s. 8315.

20. No drawback can be allowed on exportation of scraps or wastage resulting from the conversion of imported material into manufactured articles. 1887, s. s. 8573

21. Cable or rope, composed wholly of imported wire, is entitled to drawback upon export. 1888, s. s. 8609.

22. Axles imported and finished in the United States are entitled to drawback when they are exported as axles, and not when exported with domestic made wheels. 1888, 8. s. 8612.

23. No drawback is allowed on Japanese fans imported and afterwards printed with the importer's name. 1888, s. s. 8658.

24. Tin-plates which have been imported and simply cut in halves, are not entitled to drawback. 1888, s. s. 8714.

25. China goat-skins prepared in the United States by cleaning, dyeing and re-sewing, drawback allowed upon exportation. 1888, s. s. 8723.

26. Embossed tin-plates, manufactured wholly from imported tin-plates, are entitled to drawback. 1888, s. s. 8744.

27. Copper wire to be brazed and redrawn is not entitled to free entry under § 2507 as machinery for repairs, but upon exportation is entitled to drawback under this section. 1888, s. s. 8772.

28. Water-proof and tarred cordage is entitled to drawback upon exportation. 1888, s. s. 8774.

29. Articles must be manufactured wholly of imported materials to become entitled to drawback. 1888, s. s. 8800.

30. Tin-cans are entitled to drawback at the rates fixed by the Department only. Allowances of drawback are not subject to protest and appeal under § 2931 of the Revised Statutes. 1888, s. s. 8801.

31. The following have been held entitled to drawback: Crystalized sugar, commercially known as rock candy, made wholly from refined sugar, which would be entitled to drawback if exported as a sugar. 1888, s. s. 8823; Steel nails manufactured wholly from imported steel slabs; 1888, s. s. 8838; Cordage, nianufactured wholly from imported jute. 1888, s. s. 8866; Handles for petroleum tin-cans made from imported tin. 1888, s. s. 8934; Box shooks for petroleum cases. 1888, s. s. 9092; Marble floor tiles, treads, risers, and tomb-stones. 1888, s. s. 9079.

32. No drawback can be allowed on woven-wire mattresses manufactured in part of domestic wood. 1888, s. s. 9104.

33. Hungarian steel nails, manufactured from imported steel, are entitled to drawback. 1888, s. s. 9117.

34. Expenses of ascertaining the amount of drawback is not to be charged to the exporter. Ames v. Hager, 1888, s. s. 9129. See Morrill v. Jones, 106 U. S. 467; Campbell v. United States, 107 U. S. 407, and Pascal v. Sullivan, 21 Fed. Rep. 496.

35. Hackled tow is not recognized as a manufacture, and is therefore not entitled to drawback. 1888, s. s. 9173.

36. Steel nails, manufactured wholly from imported steel, are entitled to drawback. 1887, s. s. 8424 followed; 1889, s. s. 9193.

37. Two or more preliminary entries made by the same party and payable to the same party, covering exportations of domestic manufactures may, for the purposes of liquidation and payment of draw back, be united in one entry. 1889, s. s. 9272. 38. A boiler for use on a vessel is not entitled to drawback. 1889, s. s. 9283. 39. Grain bags loaned or rented to an exporting vessel, are not entitled to drawback. 1889, s. s. 9209. See opinion of Attorney-General, s. s. 5829.

40. The following have been held to be entitled to drawback: Drawback is allowed on galvanized fencing made wholly from imported steel and spelter. 1889, s. s. 9294; Rackarock made from imported chlorate of potash. 1889, s. s. 9330; Iron bolts and nails, manufactured wholly from imported old iron rails. 1889, s. s. 9360; Burlaps forming the wrapping of hams and bacon (not manufactures). 1889, s. s. 9366; Rivets, manufactured wholly of imported steel rods. 1889, s. s. 9394.

41. The painting of imported plate glass is not a manufacture within the intent of the statute, such as to entitle it to the benefit of a drawback. 1889, s. s. 9622.

42. Bleached Spool Cotton Thread, manufactured here from imported unbleached skein thread, and wound on domestic spools, the bleaching, winding, etc., of the thread increasing its value substantially, is not entitled to drawback, which it seems it would be if the spools were imported or manufactured from imported wood. 1889, s. s. 9627. 43. Refusal of allowance of drawback on boxes made from imported shooks reaffirmed upon the ground that the intrinsic value of the imported shooks is not materially enhanced by the cost of labor involved in converting them into boxes. 1889, 8. s. 9663.

44. Bolts manufactured from imported iron, and exported together with nuts made

from domestic iron, it appearing that the nuts belong to the bolts and must be attached when both are warm, are not to be regarded as wholly manufactured from imported materials, and are not entitled to drawback. 1889, s. s. 9689.

SEC. 3020. Where fire-arms, scales, balances, shovels, spades, axes, hatchets, hammers, plows, cultivators, mowing-machines, and reapers, manufactured with stock or handles made of wood grown in the United States, are exported for benefit of drawback under the preceding section, such articles shall be entitled to such drawback in all cases where the imported material exceeds one-half of the value of the material used. And where cans, manufactured in whole or in part of imported material, filled with products grown or produced in the United States, are exported for benefit of such drawback, the same shall, in all cases, be entitled to the drawback provided for in the preceding section where the imported material used in the manufacture of such cans shall equal seventy per centum of the value of all the material used in the manufacture thereof.

The one-half value may include the value of the stocks. 1876, s. s. 2966.

SEC. 3021. Railroad-iron, partially or wholly worn, may be imported into the United States without payment of duty, under bond to be withdrawn and exported after such railroad-iron shall have been repaired or remanufactured. The Secretary of the Treasury is hereby authorized and directed to prescribe such rules and regulations as may be necessary to protect the revenue against fraud, and secure the identity, character, and weight of all such importations, when again withdrawn and exported, restricting and limiting the export and withdrawal to the same port of entry where imported, and also limiting all bonds to a period of time of not more than six months from the date of the importation.

Importation of railroad iron for manufacture into bar iron, and for export as such, is not permitted under this section, as it loses its identity. 1874, s. s. 1955.

SEC. 3022. Imported salt in bond may be used in curing fish, taken by vessels licensed to engage in the fisheries, under such regulations as the Secretary of the Treasury shall prescribe; and upon proof that the salt has been used in curing fish, the duties on the same shall be remitted.

Salt used in salting the seines to preserve them is not within this section, and is dutiable. 1875, s. s. 2323.

SEC. 3023. Upon all merchandise gaugeable by law, hereafter exported, upon which drawback or return duty is allowed, and upon all merchandise gaugeable by law, withdrawn from bonded warehouses for export, there shall be collected by the collectors of the several ports ten cents per cask.

SEC. 3024. Upon all weighable articles hereafter exported, upon which a drawback or return duty is allowed, and upon all weighable merchandise withdrawn from bonded warehouses for export, there shall be collected by the collectors of the several ports three cents per hundred pounds, to be determined by the returns of the weighers.

1. Tin cans filled with petroleum, and exported, are not "weighable articles" under this section; the quantity of tin should be ascertained. 1877, s. s. 3302; see 1868, id. 408.

2. The fee provided for in this section is to be collected in all cases whether weighing is thought necessary or not. 1883, s. s. 5602.

SEC. 3025. No return of the duties shall be allowed on the export of any merchandise after it has been removed from the custody and control of the Government, except in the cases provided in sections three thousand and nineteen, three thousand and twenty, three thousand and twenty-two, and three thousand and twenty-six.

SEC. 3026. There shall be a drawback on foreign saltpetre, manufactured into gunpowder in the United States and exported therefrom, equal in amount to the duty paid on the foreign saltpetre from which it shall be manufactured, to be ascertained under such regulations as shall be prescribed by the Secretary of the Treasury, and no more. The word "saltpetre" as used in this section shall be construed to mean the element of nitre, so used, whether it be the nitrate of potash or the nitrate of soda. Ten per centum on the amount of drawbacks so allowed shall, however, be retained for the use of the United States by the collectors paying such drawbacks respectively.

Section 10 of Act of Feb'y 8, 1875, does not restrict the privilege of drawback given by § 3019 and 3026. 1879, s. s. 4212.

SEC. 3027. No part of the additional or discriminating duty imposed by law on merchandise on account of its importation in foreign vessels shall be allowed to be drawback, but the whole shall be retained.

SEC. 3028. Where articles are imported in bulk they shall be exported in the packages, if any, in which they were landed; for which purpose the officer delivering the same shall return the packages they may be put into, if any, with their marks and numbers, and they shall not be entitled to drawback, unless exported in such packages, which shall be deemed the packages of original importation, nor unless they fully agree with the return made by the officer.

SEC. 3029. It shall be lawful for the exporter of any liquors in casks, or any unrefined sugars, to fill up the casks or packages out of other casks or packages included in the same original importation, or into new casks or packages corresponding therewith, to be marked and numbered as the original casks or packages, in case the original casks or packages shall, in the opinion of the officer appointed to examine the same, be so injured as to be rendered unfit for exportation, and in no other case. The filling up or change of package must, however, be done under the inspection of a proper officer, appointed for that purpose by the collector and naval officer, where any, of the port from which such liquors or unrefined sugars are intended to be exported; and the drawback on articles so filled