19 Usc 1311

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leges, the privileges granted by this section and
such section 1317 shall not apply thereafter in
respect of aircraft registered in that foreign
country.
(June 17, 1930, ch. 497, title III, § 309, 46 Stat. 690;
June 25, 1938, ch. 679, § 5(a), 52 Stat. 1080; July 22,
1941, ch. 314, § 3, 55 Stat. 602; Aug. 8, 1953, ch. 397,
§ 11(a), 67 Stat. 514; Pub. L. 86–606, § 5(a), July 7,
1960, 74 Stat. 361; Pub. L. 101–382, title III,
§ 484A(b), Aug. 20, 1990, 104 Stat. 708.)
PRIOR PROVISIONS
Provisions similar to those in this section were contained in act Oct. 3, 1913, ch. 16, § IV, K, 38 Stat. 197,
which superseded a like provision made by an amendment of R.S. § 2982, by the Payne-Aldrich Tariff Act of
Aug. 5, 1909, ch. 6, § 21, 36 Stat. 88. Section IV, K, of the
act of 1913, and R.S. § 2982 were superseded by act Sept.
21, 1922, ch. 356, title III, § 309, 42 Stat. 938, and respectively repealed by sections 321 and 642 thereof. Section
309 of the act of 1922 was superseded by section 309 of
act June 17, 1930, comprising this section, and repealed
by section 651(a)(1) of the 1930 act.
AMENDMENTS
1990—Subsec. (b). Pub. L. 101–382 inserted ‘‘imported
articles,’’ after ‘‘foreign-trade zone,’’.
1960—Subsec. (a). Pub. L. 86–606 inserted ‘‘, or between Hawaii and any other part of the United States
or between Alaska and any other part of the United
States’’ after ‘‘possessions’’ wherever appearing, and
made the provisions for free withdrawals inapplicable
to petroleum products for vessels or aircraft in voyages
or flights between Hawaii or Alaska and any airport or
Pacific coast seaport of the United States.
1953—Subsec. (a). Act Aug. 8, 1953, extended the exemption from payment of duty and internal revenue
tax theretofore available to supplies for certain vessels
and aircraft withdrawn from bonded warehouses, bonded manufacturing warehouses, or continuous customs
custody elsewhere to supplies withdrawn from foreign
trade zones; accorded free entry for equipment withdrawn for foreign vessels; and enlarged the classes of
vessels and aircraft theretofore covered to include all
vessels and aircraft operated by the United States.
Subsec. (b). Act Aug. 8, 1953, made technical changes
to conform with the changes made by such act in subsec. (a), including insertion of ‘‘or from a foreign-trade
zone,’’.
1941—Subsec. (a). Act July 22, 1941, inserted ‘‘or from
any internal-revenue bonded warehouse, from any
brewery, or from any winery premises or bonded premises for the storage of wine, free of internal-revenue
tax’’ after ‘‘internal-revenue tax’’.
1938—Act June 25, 1938, amended section generally,
adding subsecs. (c) and (d).
EFFECTIVE DATE OF 1990 AMENDMENT
Section 484A(c) of Pub. L. 101–382 provided that: ‘‘Notwithstanding section 514 of the Tariff Act of 1930 (19
U.S.C. 1514) or any other provision of law, the amendments made by this section [amending this section and
section 1313 of this title] shall apply to—
‘‘(1) claims filed or liquidated on or after January
1, 1988, and
‘‘(2) claims that are unliquidated, under protest, or
in litigation on the date of enactment of this Act
[Aug. 20, 1990].’’
EFFECTIVE DATE OF 1960 AMENDMENT
Section 5(b) of Pub. L. 86–606 provided that: ‘‘The
amendment made by this section [amending this section] shall apply only with respect to articles withdrawn as provided in section 309(a) of the Tariff Act of
1930, as amended [subsec. (a) of this section], on or after
the date of the enactment of this Act [July 7, 1960].’’

EFFECTIVE DATE OF 1953 AMENDMENT; SAVINGS
PROVISION
Amendment by act Aug. 8, 1953, effective on and after
thirtieth day following Aug. 8, 1953, and savings provision, see notes set out under section 1304 of this title.
EFFECTIVE DATE OF 1938 AMENDMENT
Amendment by act June 25, 1938, effective on thirtieth day following June 25, 1938, except as otherwise specifically provided, see section 37 of act June 25, 1938, set
out as a note under section 1401 of this title.

§ 1310. Free importation of merchandise recovered from sunken and abandoned vessels
Whenever any vessel laden with merchandise,
in whole or in part subject to duty, has been
sunk in any river, harbor, bay, or waters subject
to the jurisdiction of the United States, and
within its limits, for the period of two years and
is abandoned by the owner thereof, any person
who may raise such vessel shall be permitted to
bring any merchandise recovered therefrom into
the port nearest to the place where such vessel
was so raised free from the payment of any duty
thereupon, but under such regulations as the
Secretary of the Treasury may prescribe.
(June 17, 1930, ch. 497, title III, § 310, 46 Stat. 691.)
PRIOR PROVISIONS
Provisions similar to those in this section were contained in act Oct. 3, 1913, ch. 16, § IV, L, 38 Stat. 197, superseding similar provisions of previous tariff acts.
That section was superseded by act Sept. 21, 1922, ch.
356, title III, § 310, 42 Stat. 938, and repealed by section
321 of that act. Section 310 of act Sept. 21, 1922, was superseded by section 310 of act June 17, 1930, and repealed by section 651(a)(1) of the 1930 act.

§ 1311. Bonded manufacturing warehouses
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.
No flour, manufactured in a bonded manufacturing warehouse from wheat imported after

§ 1311

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ninety days after June 17, 1930, shall be withdrawn from such warehouse for exportation
without payment of a duty on such imported
wheat equal to any reduction in duty which by
treaty will apply in respect of such flour in the
country to which it is to be exported.
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.
Articles or materials received into such bonded manufacturing warehouse or articles manufactured therefrom may be withdrawn or removed therefrom for direct shipment and exportation or for transportation and immediate exportation in bond to foreign countries or to the
Philippine Islands under the supervision of the
officer duly designated therefor by the appropriate customs officer of the port, who shall certify to such shipment and exportation, or ladening for transportation, as the case may be, describing the articles by their mark or otherwise,
the quantity, the date of exportation, and the
name of the vessel: Provided, That the by-products incident to the processes of manufacture,
including waste derived from cleaning rice in
bonded warehouses under the Act of March 24,
1874, ch. 65, 18 Stat. 24, in said bonded warehouses may be withdrawn for domestic consumption on the payment of duty equal to the
duty which would be assessed and collected by
law if such waste or by-products were imported
from a foreign country: Provided, That all waste
material may be destroyed under Government
supervision. All labor performed and services
rendered under these provisions shall be under
the supervision of a duly designated officer of
the customs and at the expense of the manufacturer.
A careful account shall be kept by the appropriate customs officer of all merchandise delivered by him to any bonded manufacturing warehouse, and a sworn monthly return, verified by
the customs officers in charge, shall be made by
the manufacturer containing a detailed statement of all imported merchandise used by him
in the manufacture of exported articles.
Before commencing business the proprietor of
any manufacturing warehouse shall file with the
Secretary of the Treasury a list of all the articles intended to be manufactured in such warehouse, and state the formula of manufacture and
the names and quantities of the ingredients to
be used therein.
Articles manufactured under these provisions
may be withdrawn under such regulations as the
Secretary of the Treasury may prescribe for
transportation and delivery into any bonded
warehouse for the sole purpose of export therefrom: Provided, That cigars manufactured in

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whole of tobacco imported from any one country, made and manufactured in such bonded
manufacturing warehouses, may be withdrawn
for home consumption upon the payment of the
duties on such tobacco in its condition as imported under such regulations as the Secretary
of the Treasury may prescribe, and the payment
of the internal-revenue tax accruing on such cigars in their condition as withdrawn, and the
boxes or packages containing such cigars shall
be stamped to indicate their character, origin of
tobacco from which made, and place of manufacture.
The provisions of section 3433 of the Revised
Statutes shall, so far as may be practicable,
apply to any bonded manufacturing warehouse
established under this chapter and to the merchandise conveyed therein.
Distilled spirits and wines which are rectified
in bonded manufacturing warehouses, class six,
and distilled spirits which are reduced in proof
and bottled in such warehouses, shall be deemed
to have been manufactured within the meaning
of this section, and may be withdrawn as hereinbefore provided, and likewise for shipment in
bond to Puerto Rico, subject to the provisions of
this section, and under such regulations as the
Secretary of the Treasury may prescribe, there
to be withdrawn for consumption or be rewarehoused and subsequently withdrawn for consumption: Provided, That upon withdrawal in
Puerto Rico for consumption, the duties imposed by the customs laws of the United States
shall be collected on all imported merchandise
(in its condition as imported) and imported containers used in the manufacture and putting up
of such spirits and wines in such warehouses.
No article manufactured in a bonded warehouse from materials that are goods subject to
NAFTA drawback, as defined in section 3333(a)
of this title, may be withdrawn from warehouse
for exportation to a NAFTA country, as defined
in section 3301(4) of this title, without assessment of a duty on the materials in their condition and quantity, and at their weight, at the
time of importation into the United States. The
duty shall be paid before the 61st day after the
date of exportation, except that upon the presentation, before such 61st day, of satisfactory
evidence of the amount of any customs duties
paid to the NAFTA country on the article, the
customs duty may be waived or reduced (subject
to section 1508(b)(2)(B) of this title) in an
amount that does not exceed the lesser of—
(1) the total amount of customs duties paid
or owed on the materials on importation into
the United States, or
(2) the total amount of customs duties paid
on the article to the NAFTA country.
If Canada ceases to be a NAFTA country and the
suspension of the operation of the United
States-Canada Free-Trade Agreement thereafter
terminates, no article manufactured in a bonded
warehouse, except to the extent that such article is made from an article that is a drawback
eligible good under section 204(a) of the United
States-Canada Free-Trade Agreement Implementation Act of 1988, may be withdrawn from
such warehouse for exportation to Canada during the period such Agreement is in operation
without payment of a duty on such imported

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merchandise in its condition, and at the rate of
duty in effect, at the time of importation.
No article manufactured in a bonded warehouse from materials that are goods subject to
Chile FTA drawback, as defined in section 203(a)
of the United States-Chile Free Trade Agreement Implementation Act, may be withdrawn
from warehouse for exportation to Chile without
assessment of a duty on the materials in their
condition and quantity, and at their weight, at
the time of importation into the United States.
The duty shall be paid before the 61st day after
the date of exportation, except that the duty
may be waived or reduced by—
(1) 100 percent during the 8-year period beginning on January 1, 2004;
(2) 75 percent during the 1-year period beginning on January 1, 2012;
(3) 50 percent during the 1-year period beginning on January 1, 2013; and
(4) 25 percent during the 1-year period beginning on January 1, 2014.
(June 17, 1930, ch. 497, title III, § 311, 46 Stat. 691;
June 26, 1936, ch. 830, title IV, § 404, 49 Stat. 1960;
Pub. L. 91–271, title III, § 301(b), June 2, 1970, 84
Stat. 287; Pub. L. 96–39, title VIII, § 856(b), July
26, 1979, 93 Stat. 295; Pub. L. 97–446, title II, § 202,
Jan. 12, 1983, 96 Stat. 2350; Pub. L. 100–449, title
II, § 204(c)(1), Sept. 28, 1988, 102 Stat. 1862; Pub. L.
103–182, title II, § 203(b)(1), Dec. 8, 1993, 107 Stat.
2088; Pub. L. 108–77, title II, § 203(b)(1), Sept. 3,
2003, 117 Stat. 925.)
AMENDMENT OF SECTION
For termination of amendment by section
107(c) of Pub. L. 108–77, see Effective and Termination Dates of 2003 Amendment note below.
REFERENCES IN TEXT
Act March 24, 1874, referred to in text, which provided
that ‘‘importers’ bonded warehouses, to be used for the
storage and cleansing of imported rice intended for exportation to foreign countries, may be established at
any port of entry in the United States, under such rules
and regulations as the Secretary of the Treasury may
prescribe’’, was repealed by act Sept. 21, 1922, ch. 356,
title IV, § 643, 42 Stat. 989.
R.S. § 3433, referred to in text, was amended by act
Feb. 27, 1877, ch. 69, 19 Stat. 248. The provisions of R.S.
§ 3433 as they existed prior to the amendment by act
Feb. 27, 1877, were reenacted as section 10 of act Oct. 1,
1890, ch. 1244, 26 Stat. 614. Section 55 of said act Oct. 1,
1890, repealed all laws and parts of laws inconsistent
therewith. The provisions of said section 10 of act Oct.
1, 1890, were incorporated into the Internal Revenue
Code of 1939, as subsections (a), (b), (c), and (d)(1) of section 3177. See section 5521 of Title 26, Internal Revenue
Code.
Section 204 of the United States-Canada Free-Trade
Agreement Implementation Act of 1988, referred to in
text, is section 204 of Pub. L. 100–449, which is set out
in a note under section 2112 of this title.
Section 203(a) of the United States-Chile Free Trade
Agreement Implementation Act, referred to in text, is
section 203(a) of Pub. L. 108–77, which is set out in a
note under section 3805 of this title.
PRIOR PROVISIONS
Provisions similar to those in this section were contained in act Oct. 3, 1913, ch. 16, § IV, M, 38 Stat. 197,
which was superseded by act Sept. 21, 1922, ch. 356, title
III, § 311, 42 Stat. 938, and repealed by section 321 thereof. Section 311 of the 1922 act was superseded by section
311 of act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act.

Section IV, M, of the act of 1913 superseded previous
similar provisions of the Payne-Aldrich Tariff Act of
Aug. 5, 1909, ch. 6, § 23, 36 Stat. 88, which superseded
those of the Dingley Tariff Act of July 24, 1897, ch. 11,
§ 15, 30 Stat. 207. Similar provisions were contained in
the Wilson Tariff Act of Aug. 27, 1894, ch. 349, § 9, 28
Stat. 548.
AMENDMENTS
2003—Pub. L. 108–77, §§ 107(c), 203(b)(1), temporarily
added par. at end relating to goods subject to Chile
FTA drawback. See Effective and Termination Dates of
2003 Amendment note below.
1993—Pub. L. 103–182 amended last par. generally.
Prior to amendment, last par. read as follows: ‘‘No article manufactured in a bonded warehouse, except to the
extent that such article is made from an article that is
a drawback eligible good under section 204(a) of the
United States-Canada Free-Trade Agreement Implementation Act of 1988, may be withdrawn from such
warehouse for exportation to Canada on or after January 1, 1994, or such later date as may be proclaimed by
the President under section 204(b)(2)(B) of such Act of
1988, without payment of a duty on such imported merchandise in its condition, and at the rate of duty in effect, at the time of importation.’’
1988—Pub. L. 100–449 added par. at end relating to articles withdrawn for exportation to Canada on and
after Jan. 1, 1994, and to drawback-eligible goods under
the United States-Canada Free-Trade Agreement Implementation Act of 1988.
1983—Pub. L. 97–446 struck out ‘‘at an exterior port’’
after ‘‘bonded warehouse’’ and ‘‘immediate’’ after ‘‘sole
purpose of’’ in eighth par.
1979—Pub. L. 96–39, in par. relating to distilled spirits
and wine, struck out provision that no internal revenue
tax be imposed on distilled spirits and wines rectified
in class six warehouses if such distilled spirits and
wines are exported or shipped in accordance with the
provisions of this section, and that no person rectifying
distilled spirits or wines in such warehouses be subject
by reason of such rectification to the payment of special tax as rectifier.
1970—Pub. L. 91–271 substituted references to the appropriate customs officer for references to the collector
wherever appearing.
1936—Act June 26, 1936, inserted par. at end relating
to distilled spirits and wine.
EFFECTIVE AND TERMINATION DATES OF 2003
AMENDMENT
Amendment by Pub. L. 108–77 effective on the date
the United States-Chile Free Trade Agreement enters
into force (Jan. 1, 2004), and to cease to be effective on
the date the Agreement ceases to be in force, see section 107(a), (c) of Pub. L. 108–77, set out in a note under
section 3805 of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103–182 applicable (1) with respect to exports from the United States to Canada on
Jan. 1, 1996, if Canada is a NAFTA country on that date
and after such date for so long as Canada continues to
be a NAFTA country and (2) with respect to exports
from the United States to Mexico on Jan. 1, 2001, if
Mexico is a NAFTA country on that date and after such
date for so long as Mexico continues to be a NAFTA
country, see section 213(c) of Pub. L. 103–182, set out as
an Effective Date note under section 3331 of this title.
EFFECTIVE AND TERMINATION DATES OF 1988
AMENDMENT
Amendment by Pub. L. 100–449 effective on date the
United States-Canada Free-Trade Agreement enters
into force (Jan. 1, 1989), and to cease to have effect on
date Agreement ceases to be in force, see section 501(a),
(c) of Pub. L. 100–449, set out in a note under section
2112 of this title.

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TITLE 19—CUSTOMS DUTIES
EFFECTIVE DATE OF 1979 AMENDMENT

Section 856(b) of Pub. L. 96–39 provided that: ‘‘Effective January 1, 1980, the second proviso to the last
paragraph of section 311 of the Tariff Act of 1930 [this
section] is hereby repealed.’’
EFFECTIVE DATE OF 1970 AMENDMENT
For effective date of amendment by Pub. L. 91–271,
see section 203 of Pub. L. 91–271, set out as a note under
section 1500 of this title.
TRANSFER OF FUNCTIONS
Functions of all other officers of Department of the
Treasury and functions of all agencies and employees of
such Department transferred, with certain exceptions,
to Secretary of the Treasury, with power vested in him
to authorize their performance or performance of any
of his functions, by any of such officers, agencies, and
employees, by Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July
31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the
Appendix to Title 5, Government Organization and Employees. Customs officers, referred to in text, are under
Department of the Treasury.
WITHDRAWAL OF DISTILLED SPIRITS TO MANUFACTURING
BONDED WAREHOUSES; TRANSFERS TO WAREHOUSES
PENDING EXPORTATION
Pub. L. 96–39, title VIII, § 856(a), July 26, 1979, 93 Stat.
295, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100
Stat. 2095, provided that: ‘‘In the case of articles described in section 5522(a) of the Internal Revenue Code
of 1986 [formerly I.R.C. 1954, 26 U.S.C. 5522(a)] (as in effect before its repeal by section 807(a)(50) of the Distilled Spirits Tax Revision Act of 1979 [section 807(50) of
Pub. L. 96–39]) the first sentence of the eighth paragraph of section 311 of the Tariff Act of 1930 (19 U.S.C.
1311) shall be applied as if such first sentence did not
include the phrase ‘at an exterior port’.’’

§ 1312. Bonded smelting and refining warehouses
(a) Bond; charges against bond
Any plant engaged in smelting or refining, or
both, of metal-bearing materials as defined in
this section may, upon the giving of satisfactory
bond, be designated a bonded smelting or refining warehouse. Metal-bearing materials may be
entered into a bonded smelting or refining warehouse without the payment of duties thereon
and there smelted or refined, or both, together
with metal-bearing materials of domestic or foreign origin. Upon arrival of imported metalbearing materials at the warehouse they shall
be sampled according to commercial methods
and assayed, both under customs supervision.
The bond shall be charged with a sum equal in
amount to the duties which would be payable on
such metal-bearing materials in their condition
as imported if entered for consumption, and the
bond charge shall be adjusted to reflect changes
in the applicable rate of duty occurring while
the imported materials are still covered by the
bond.
(b) Cancellation of charges against bond
The several charges against such bond may be
canceled in whole or in part—
(1) upon the exportation from the bonded
warehouses which treated the metal-bearing
materials, or from any other bonded smelting
or refining warehouse, of a quantity of the
same kind of metal contained in any product
of smelting or refining of metal-bearing materials equal to the dutiable quantity contained
in the imported metal-bearing materials less

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wastage provided for in subsection (c) of this
section; except that—
(A) in the case of a withdrawal for exportation of such a product to a NAFTA country, as defined in section 3301(4) of this title,
if any of the imported metal-bearing materials are goods subject to NAFTA drawback,
as defined in section 3333(a) of this title, the
duties on the materials shall be paid, and
the charges against the bond canceled, before the 61st day after the date of exportation; but upon the presentation, before
such 61st day, of satisfactory evidence of the
amount of any customs duties paid to the
NAFTA country on the product, the duties
on the materials may be waived or reduced
(subject to section 1508(b)(2)(B) of this title)
in an amount that does not exceed the lesser
of—
(i) the total amount of customs duties
owed on the materials on importation into
the United States, or
(ii) the total amount of customs duties
paid to the NAFTA country on the product, and
(B) in the case of a withdrawal for exportation of such a product to Chile, if any of
the imported metal-bearing materials are
goods subject to Chile FTA drawback, as defined in section 203(a) of the United StatesChile Free Trade Agreement Implementation Act, the duties on the materials shall be
paid, and the charges against the bond canceled, before the 61st day after the date of
exportation, except that the duties may be
waived or reduced by—
(i) 100 percent during the 8-year period
beginning on January 1, 2004,
(ii) 75 percent during the 1-year period
beginning on January 1, 2012,
(iii) 50 percent during the 1-year period
beginning on January 1, 2013, and
(iv) 25 percent during the 1-year period
beginning on January 1, 2014, or
(2) upon payment of duties on the dutiable
quantity of metal contained in the imported
metal-bearing materials, or
(3) upon the transfer of the bond charges to
another bonded smelting or refining warehouse by physical shipment of a quantity of
the same kind of metal contained in any product of smelting or refining of metal-bearing
materials equal to the dutiable quantity contained in the imported metal-bearing materials less wastage provided for in subsection
(c) of this section, or
(4) upon the transfer of the bond charges to
a bonded customs warehouse other than a
bonded smelting or refining warehouse by
physical shipment of a quantity of the same
kind of metal contained in any product of
smelting or refining equal to the dutiable
quantity contained in the imported metalbearing materials less wastage provided for in
subsection (c) of this section, and upon withdrawal from such other warehouse for exportation or domestic consumption the provisions
of this section shall apply; except that—
(A) in the case of a withdrawal for exportation of such a product to a NAFTA coun-