Suppporting Regulation

§ 19.16

19 CFR Ch. I (4–1–02 Edition)

(l) When the fact of exportation of all
the products has been established by
such proofs and any byproducts and
waste have been exported or released
for consumption, the bond given by the
manufacturer, or the charges against
his bond, shall be canceled.
(m) Shortage, irregular delivery, and
nondelivery occurring with respect to
merchandise withdrawn from bonded
manufacturing warehouse while it is
under transportation in bond shall be
charged against the bonded carrier.
[28 FR 14763, Dec. 31, 1963, as amended by
T.D. 73–62, 38 FR 5630, Mar. 2, 1973; T.D. 73–
175, 38 FR 17446, July 2, 1973; T.D. 78–298, 43
FR 38382, Aug. 28, 1978; T.D. 80–271, 45 FR
75641, Nov. 17, 1980; T.D. 82–204, 47 FR 49373,
Nov. 1, 1982; T.D. 84–213, 49 FR 41170, Oct. 19,
1984; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D.
95–81, 60 FR 52295, Oct. 6, 1995]

§ 19.16

[Reserved]

SMELTING AND REFINING WAREHOUSES
§ 19.17 Application to establish warehouse; bond.
(a) Application. Application for the
bonding of a plant of a manufacturer
engaged in the smelting or refining, or
both, of metal-bearing materials as
provided for in section 312, Tariff Act
of 1930, as amended, to reduce the
metal content thereof to an unwrought
metal, or metal in the form of oxides or
other compounds which are obtained
directly from the treatment of the dutiable materials provided for in chapters 26 and 71 through 83, Harmonized
Tariff Schedule of the United States (19
U.S.C. 1202), shall be made by the manufacturer, to the director of the port
nearest in which such plant is situated,
giving the location of the premises and
setting forth the work proposed to be
carried on therein.
(b) [Reserved]
(c) Discontinuance. At the request of
the proprietor the bonded status of the
warehouse may be discontinued at any
time provided the port director approves such discontinuance and the
proprietor complies with directions of
the port director with respect to the
disposition of merchandise which may
remain in the warehouse. The number
of warehouses covered by a blanket
smelting and refining bond may be reduced by discontinuance without ne-

cessitating a new bond unless the proprietor so desires.
(d) Upon the importation at any seaboard or frontier port of the United
States of metal-bearing materials in
any form intended for a bonded smelting or refining warehouse situated at
some other port of entry, they may be
forwarded under an immediate transportation without appraisement entry.
(e) Bond. Upon the arrival of imported metal-bearing material in any
form for the purpose of being smelted
or refined, or both, in bond at a port
where a bonded smelting or refining
warehouse is established, it shall be entered for warehouse. A bond on Customs Form 301, containing the bond
conditions set forth in § 113.62 of this
chapter shall be on file. The port director shall thereupon issue a permit to
the inspector to send such metal bearing materials from the importing vessel or vehicle by designated bonded
vessels or vehicles to the smelting and
refining warehouse named in the entry.
(f) Bonded metal-bearing materials
shall be kept separate and distinct
from nonbonded material until they
have been sampled and weighed. The
proprietor shall maintain a report of
sampling, weighing, and assay of each
shipment of bonded materials received
into the warehouse for 5 years after liquidation of the warehouse entry for
shipment.
(g) Statement of inventory and bond
charges. Where two or more smelting or
refining warehouses are included under
one blanket smelting and refining
bond, an overall statement must be
prepared and maintained by the principal named in the bond by the 28th of
each month, showing the inventory as
of the close of the preceding month, of
all metals on hand at each plant covered by the blanket bond and the total
of bonded charges for all plants. If the
warehouses covered by an overall
statement are located in more than one
port, each port director may choose to
verify the accuracy of the inventory report only with respect to that portion
of the report that relates to amounts
held at a plant that is located within
that port director’s jurisdiction. All
discrepancies which cannot be reconciled by the port director shall be reported to Headquarters, U.S. Customs

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United States Customs Service, Treasury
Service. If Headquarters finds that the
aggregate quantity of dutiable metal
at the several plants does not equal the
quantity charged against the blanket
bond, duties shall be collected for the
quantity determined to be deficient.
[28 FR 14763, Dec. 31, 1963, as amended by
T.D. 74–247, 39 FR 34650, Sept. 27, 1974; T.D.
82–204, 47 FR 49373, Nov. 1, 1982; T.D. 84–213, 49
FR 41170, Oct. 19, 1984; T.D. 89–1, 53 FR 51254,
Dec. 21, 1988; T.D. 90–78, 55 FR 40166, Oct. 2,
1990; T.D. 95–99, 60 FR 62733, Dec. 7, 1995; T.D.
99–78, 64 FR 57565, Oct. 26, 1999]

§ 19.18 Smelting and refining; allowance for wastage; withdrawal for
consumption.
(a) Except where absolute deductions
have been allowed in the liquidation of
the entry for losses on copper, lead,
and zinc content of metal-bearing materials, pursuant to Chapter 26, Additional U.S. Note 1, Harmonized Tariff
Schedule of the United States (see
§ 151.55 of this chapter), the actual percentage of losses by weight shall be allowed if more than 90 percent by
weight of:
(1) The zinc content initially treated
at any lead plant, (2) the copper content of the imported materials treated
at any zinc plant, or (3) the copper,
lead, or zinc content of the imported
material initially treated at any plant
other than a copper, lead, or zinc plant
is lost in processing such materials.
Such actual percentage of losses by
weight of the metal content shall be
that shown by the manufacturer’s annual statement. Such losses shall be
applied in the liquidation of the entry
to materials entered for consumption
or for warehouse, during a 12-month period beginning on the first day of the
month nearest to 90 days after the
close of the manufacturer’s fiscal year
immediately preceding such 90-day period, provided the importer makes
claim therefor in writing at the time
the merchandise is entered. No further
wastage shall be allowed. The full dutiable contents of such metal-bearing
materials, as ascertained by commercial assay made by the Government
chemists, less the wastage allowance
(including dutiable metals entirely lost
in smelting or refining, or both), shall
constitute the quantity of dutiable
metal which must be either exported,
duty-paid, or transferred to another

§ 19.19
bonded warehouse in order to secure
the cancellation of the charge made
against the proprietor’s bond as shown
by the warehouse or rewarehouse entry
account.
(b) Upon the withdrawal for consumption of metal so smelted or refined, or both, duty shall be collected
thereon without the allowance for
wastage, except where the metal was
transferred to a bonded Customs warehouse other than a smelting warehouse
and withdrawn therefrom for consumption. However, duty-paid warehouse
withdrawals for consumption may be
filed with regard to metal which will be
physically withdrawn in the form of
smelted or refined products whether at
the time of the filing of the withdrawal
papers the dutiable metal covered by
the bond charge being cancelled by the
withdrawal is in the form of ores, concentrates, crude metals, or intermediate products. If the warehouse
withdrawal for consumption covers a
product which does not sustain the full
wastage allowable (see § 19.22) prior to
being physically released from Customs custody, a proportionate part
only of such wastage may be allowed.
The warehouse withdrawal and delivery permit shall state the estimated
amount of the dutiable metal contained in the products, and the warehouse withdrawal shall specify the applicable wastage. A quantity of dutiable metal equivalent to the smelted or
refined products covered by each withdrawal for consumption must be actually on hand at the plant or plants covered by the bond at the time of filing
the withdrawals; but neither the actual
ability to withdraw smelted or refined
products from the warehouse nor the
actual physical condition described in
the withdrawal will be required at the
time of filing the withdrawal.
[28 FR 14763, Dec. 31, 1963, as amended by
T.D. 73–175, 38 FR 17446, July 2, 1973; T.D. 82–
90, 47 FR 20753, May 14, 1982; T.D. 89–1, 53 FR
51254, Dec. 21, 1988]

§ 19.19 Manufacturers’ records; annual
statement.
(a) Every manufacturer engaged in
smelting or refining, or both, shall immediately notify the director of the
port nearest which the plant is located

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