Repeal Provisions

SEC. VIII. "That sections twenty-nine hundred and ninety, twenty-nine hundred and ninety-one, twenty-nine hundred and ninety-two, twenty-nine hundred and ninety-three, twenty-nine hundred and ninety-four, twenty-nine hundred and ninety-five, twenty-nine hundred and ninety-six, twenty-nine hundred and ninety-seven of the Revised Statutes be and the same are hereby repealed."

Limitations on Time of Shipment

SEC. IX. "That no merchandise shall be shipped under the provisions of this act after such merchandise shall have been landed ten days from the importing vessel, and merchandise not entered within such time shall be sent to a bonded warehouse by the collector, as unclaimed, and held until regularly entered and appraised."

Liens for Freight on Imported Goods

SEC. X. "That whenever the proper officer of the customs shall be notified in writing of the existence of a lien for freight upon imported goods, wares, or merchandise in his custody, he shall, before delivering such goods, wares, or merchandise to the importer, owner, or consignee thereof, give seasonable notice to the party or parties claiming the lien; and the possession by the officers of the customs shall not affect the discharge of such lien, under such regulations as the Secretary of the Treasury may prescribe; and such officer may refuse the delivery of such merchandise from any public or bonded warehouse or other place in which the same shall be deposited, until proof to his satisfaction shall be produced that the freight thereon has been paid or secured; but the rights of the United States shall not be prejudiced thereby, nor shall the United States or its officers be in any manner liable for losses consequent upon such refusal to deliver. If merchandise so subject to a lien regarding which notice has been filed, shall be forfeited to the United States and sold, the freight due thereon shall be paid from the proceeds of such sale in the same manner as other charges and expenses authoried by law to be paid therefrom are paid."

As to liens for freight, it is further provided by the Act of May 21, 1896:

"That whenever the collector of the port of entry of the vessel, or other proper officer of the customs, shall be duly notified in writing of the existence of a lien for freight, charges, or contribution in general average upon imported goods, wares, or mer

chandise in his custody, he shall, before delivering such goods, wares, or merchandise to the importer, owner, or consignee thereof for consumption, or to any vessel or vehicle for transportation or exportation, give seasonable notice to the party or parties claiming the lien; and the possession by the officers of the customs shall not affect the discharge of such lien, under such regulations as the Secretary of the Treasury may prescribe; and such officer shall refuse the delivery of such merchandise from any public or bonded warehouse or other place in which the same shall be deposited until proof to his satisfaction shall be produced that the freight, charges, or contribution in general average thereon has been paid or secured; but the rights of the United States shall not be prejudiced thereby, nor shall the United States or its officers be in any manner liable for losses consequent upon such refusal to deliver.

If merchandise so subject to a lien, regarding which notice has been filed, shall be forfeited to the United States and sold, the freight, charges, or contribution in general average due thereon shall be paid from the proceeds of such sale in the same manner as other charges and expenses authorized by law to be paid therefrom are paid."

Bonding of Common Carriers

SEC. 6. Under regulations prescribed by the Secretary of the Treasury (Article 659 of the Customs Regulations, 1915), common carriers desiring to transport merchandise in bond must execute a bond in the penal sum of $100,000, conditioned that they will safely transport, report and deliver the merchandise entrusted to their care under the statutes, and in case of failure to so transport, report and deliver, shall pay to the United States as liquidated damages an amount equal to the value of the non-dutiable merchandise not so transported, reported and delivered, the damages on any one shipment not to exceed $25, and shall pay an amount equal to the duties on dutiable merchandise not so transported, reported and delivered except where delivery shall have been made to the ultimate consignee or owner instead of to the collector or other proper officer of the customs, in which case an

amount equal to twice the duties shall be paid, together with all costs, charges and expenses caused by the failure to make such transportation, report and delivery.

The bonding of such of the common carriers as are operating under Federal control during the period of the war and for twenty-one months thereafter, has been taken over by the Director-General of Railroads, who has duly executed a bond for the transportation of merchandise in customs custody by lines under Federal control, and for the lading and unlading of merchandise under the provisions of the Act of February 13, 1911. (T. D. 37747 of August 30, 1918.)

CHAPTER XVII

MANUFACTURE FOR EXPORT UNDER BOND

No Provisions for Free Ports or Free Zones

SEC. 1. The laws of the United States make no provision for free ports or free zones, similar to those existing in foreign countries.

Merchandise may not, therefore, be imported from abroad without becoming subject to the requirements of the invoice and entry provided for under existing law heretofore cited.

Manufacture in Bond

SEC. 2. If it is the desire to use imported materials in the manufacture for export, this may be done under bond without the payment of duty under the following provisions:

Construction of Vessels

SEC. 3. Paragraph J, Subsections 5 and 6, Section IV of the Act of October 3, 1913:

Subsection 5. "That all materials of foreign production which may be necessary for the construction of naval vessels or other vessels of the United States, vessels built in the United States for foreign account and ownership, or for the purpose of being employed in the foreign or domestic trade, and all such materials necessary for the building of their machinery, and all articles necessary for their outfit and equipment, may be imported in bond under such regulations as the Secretary of the Treasury may prescribe; and upon proof that such materials have been used for such purposes no duties shall be paid thereon."

Subsection 6. "That all articles of foreign production needed for the repair of naval vessels of, or other vessels owned or used

by, the United States and vessels now or hereafter registered under the laws of the United States may be withdrawn from bonded warehouses free of duty, under such regulations as the Secretary of the Treasury may prescribe."

Manufacture of Cigars and Other Articles for Export

SEC. 4. Paragraph M, Section IV, Act of October 3, 1913, provides:

"That all articles manufactured in whole or in part of imported materials, or of materials subject to internal-revenue tax, and intended for exportation without being charged with duty, and without having an internal revenue stamp affixed thereto, shall, under such regulations as the Secretary of the Treasury may prescribe, in order to be so manufactured, and exported, be made and manufactured in bonded warehouses similar to those known and designated in Treasury Regulations as bonded warehouses, class six: Provided, That the manufacturer of such articles shall first give satisfactory bonds for the faithful observance of all the provisions of law and of such regulations as shall be prescribed by the Secretary of the Treasury: Provided further, That the manufacture of distilled spirits from grain, starch, molasses, or sugar, including all dilutions or mixtures of them or either of them shall not be permitted in such manufacturing warehouses.

"Whenever goods manufactured in any bonded warehouse established under the provisions of the preceding paragraph shall be exported directly therefrom or shall be duly laden for transportation and immediate exportation under the supervision of the proper officer who shall be duly designated for that purpose, such goods shall be exempt from duty and from the requirements relating to revenue stamps.

"Any materials used in the manufacture of such goods, and any packages, coverings, vessels, brands and labels used in putting up the same may, under the regulations of the Secretary of the Treasury, be conveyed without the payment of revenue tax or duty into any bonded manufacturing warehouse, and imported goods may, under the aforesaid regulations, be transferred without the exaction of duty from any bonded warehouse into any bonded manufacturing warehouse; but this privilege shall not be held to apply to implements, machinery, or apparatus to be used in the construction or repair of any bonded manufacturing warehouse or for the prosecution of the business carried on therein.

"No articles or materials received into such bonded manufacturing warehouse shall be withdrawn or removed therefrom ex