Authority: Sections 11.1 to 11.21 issued under R.S. 161, as amended, 251, sec. 624, 46 Stat. 759; 5 U.S.C. 22, 19 U.S.C. 66, 1624. Statutory provisions interpreted or applied and special rule-making authorities are cited to text in parentheses.

PACKING AND STAMPING

TDs 25977, 51395,

54763, 54875.

11.1 Cigars, cigarettes, medicinal preparations, and perfumery.--(a) All cigars and cigarettes imported into the United States, except importations by 52916, 53548, 54393, mail and in baggage, shall be placed in the public stores or in a designated bonded warehouse to remain until inspected, weighed, and repacked, if necessary, under the customs and internal-revenue laws. However, if the invoice and entry presented specify all of the information necessary for prompt determination of the estimated duty and tax on the packages of cigars and cigarettes covered thereby, the collector may permit designation of less than the entire importation for examination.

(b) After the cigars and cigarettes have been examined, weighed, and appraised, before release the inspecting officer shall verify that they are in properly constructed packages, conforming to the requirements of the regulations of the Internal Revenue Service, bearing a legible imprint or a securely affixed label stating the quantity, kind, and classification for tax purposes as required by such regulations. Cigars or cigarettes must be in compliance with such requirements before being released for consumption unless specifically exempted therefrom as indicated in section 11.3 of these regulations.

(c) The immediate containers of all domestic cigars, cigarettes, medicinal preparations, and perfumery, which are returned to the United States and are subject to a duty equal to an internal-revenue tax, shall be stamped by the customs inspector with a rubber stamp bearing the legend "U. S. Customs-American Goods Returned -Inspector." The inspector's initials shall appear in the space provided therefor. The packaging requirements set forth in paragraph (b) of this section apply to returned cigars and cigarettes of domestic origin.

TDs 10381, 11811,

15362, 21272, 21743, 21865, 22770, 23887, 30719, 41074, 41416,

44623, 51395, 52916, 53548, 54393, 54875, 55472.

TDs 51395, 53548, 54393, 51875.

CR-255

TDs 41074, 48954,

53548, 54393,

54875, 55472,

67-193.

TDs 54393, 54875. 55472, 67-193, 73-135.

TDs 41074, 54875, 55340, 55472, 55978, 67-193, 73-27, 73-227.

11.2 Manufactured tobacco.--(a) If the invoice and entry presented for manufactured tobacco specify all the information necessary for prompt determination of the estimated duty on the manufactured tobacco covered thereby, the district director of customs may permit designation of less than the entire importation for examination.

(b) In the case of returned American manufactured tobacco, the packages shall be marked or stamped by customs with the inscription "American goods returned."

11.2a Release from Customs custody without payment of tax on cigars, cigarettes and cigarette papers and tubes.--Cigars, cigarettes, and cigarette papers and tubes may be released from Customs custody without payment of any applicable internal-revenue tax upon presentation with the Customs entry or withdrawal form of Internal Revenue Form 2145 or 3072, in triplicate, certified by the appropriate assistant regional commissioner of internal revenue (alcohol and tobacco tax). Customs shall complete the notice of release, retain one copy, send one copy to the assistant regional commissioner of internal revenue and return one copy to the manufacturer for his retention. Such a release may not be made under a mail entry as stated in section 145.13 (b) of these regulations.

11.3 Package and notice requirements for cigars and cigarettes; package requirements for cigarette papers and tubes.-- Exemptions from tax on cigars, cigarettes, and cigarette papers and tubes apply in accordance with the regulations of the Bureau of Alcohol, Tobacco, and Firearms (26 CFR Part 275) upon release from Customs custody of such articles imported by consular officers and employees of foreign states. Cigars, cigarettes, cigarette papers and tubes may also be released without payment of tax as provided in section 11.2a and for exhibition in accordance with Part 147 of this chapter. Additionally, cigars, cigarettes, or cigarette papers and tubes may be admitted free of duty and tax under the provisions of schedule 8, part 2A, Tariff Schedules of the United States (19 U.S.C. 1202) or section 321, Tariff Act of 1930, as amended (19 U.S.C. 1321), sections 54.3, 148.63, 148.74, and subpart I of Part 148 of this chapter. Except in the foregoing instances and in any instance in which such articles are imported in passengers' baggage or are to be released under a mail entry for the personal consumption of the importer or for disposition as his bona fide gift, the provisions in Part 275 of the regulations of the Bureau of Alcohol, Tobacco, and Firearms (26 CFR Part 275) as to packages and notices thereon apply.

CR-256

11.5 Oleomargarine; adulterated butter; filled cheese.--Imported oleomargarine, adulterated butter, and filled cheese are subject to special packaging requirements under regulations of the Internal Revenue Service (26 CFR Part 45, subparts E, G, and H, respectively), and to internal-revenue taxes imposed in addition to duty under sections 4591, 4812, and 4831, Internal Revenue Code of 1954, the payment of which must be represented by stamps.' Imported merchandise suspected of being such articles, but not entered as such, shall be detained by the collector of customs and the facts reported to the district director of internal revenue of the district, to whom such samples shall be furnished as may be requested. Imported oleomargarine, adulterated butter, and filled cheese shall not be released from customs custody until the proper internal-revenue stamps have been affixed and canceled by the importer as required by the regulations of the Internal Revenue Service.

3

11.6 Distilled spirits, wines, and malt liquors in casks and similar containers.--All distilled spirits, wines, and malt liquors imported in pipes, hogsheads, tierces, barrels, casks, or other similar packages shall be stamped in accordance with 19 U.S.C. 467. The provision in that section that such spirits, wines, and liquors shall be first placed in public store or bonded warehouse is construed as directory only and such merchandise, unless otherwise required to be sent to the public store, may, in the discretion of the collector, be inspected, gauged, marked, and stamped at the place of unlading or at another suitable place if, in the opinion of the collector, such inspecting, gauging, marking, and stamping can be done with facility and effectiveness. (Sec. 11, 20 Stat. 342; 19 U.S.C. 467.)

11.7 Distilled spirits and other alcoholic beverages imported in bottles and similar containers; regulations of Internal Revenue Service.--The importation of distilled spirits and other alcoholic beverages in bottles and similar containers is subject to regulations of the Internal Revenue Service relating to strip stamps and other matters. (27 CFR, pt. 7, 26 CFR, pts. 175, 225, and 251.) Customs officers and employees shall perform such functions as are necessary or proper on their part to carry out such regulations.

MARKING

TDs 30281, 42991, 49658, 50277(3),

55978.

11.9 Special marking on certain articles.--(a) No movement,. case, or dial provided for in schedule 7, part 2E, Tariff Schedules of the United States, shall be released for consumption until marked in exact compliance with the requirements 53336, 53399, of headnote 4 of that subpart. If any article so required to be marked is found not to be marked to indicate the country of origin, the 10 percent marking duty shall be assessed, unless such marking is accomplished or the merchandise is exported or destroyed under customs supervision prior to the liquidation of the entry, in accordance with the provisions of section 304(c), Tariff Act of 1930, as amended.

(b) The name of the manufacturer or purchaser which must appear on articles provided for in schedule 7, part 2E, Tariff Schedules of the United States, and specified in headnote 4 of that subpart, may be either the actual name of the manufacturer or purchaser or a duly registered trade name under which such manufacturer or purchaser carries on his business. A trade-mark shall not be accepted as meeting any such special marking requirement unless it includes the full name of the manufacturer or purchaser. The term "purchaser" as used in this paragraph means the purchaser in the United States by whom or for whose account the articles are imported.

2 Internal-revenue stamps for imported oleomargarine, adulterated butter, and filled cheese will be sold to the owner or consignee of the merchandise by the district director of internal revenue for the district in which is located the port of entry where the customs entry is filed upon requisition therefor on the order form duly executed by an authorized customs officer.

3 "All distilled spirits, wines, and malt liquors, imported in pipes, hogsheads, tierces, barrels, casks, or other similar packages, shall be first placed in public store or bonded warehouse, and shall not be removed therefrom until the same shall have been inspected, marked, and branded by a United States customs-gauger, and a stamp affixed to each package, indicating the date and particulars of such inspection; and the Secretary of the Treasury is authorized to prescribe the form of, and provide, the requisite stamps, and to make all regulations which he may deem necessary and proper for carrying the foregoing requirements into effect. Any pipe, hogshead, tierce, barrel, cask, or other package withdrawn from public store or bonded warehouse purporting to contain imported liquor, found without having thereon the stamp hereby required shall be, with its contents, forfeited to the United States; *** ." (19 U. S. C. 467.)

"Beverages in this subpart, containing over 24 percent of ethyl alcohol by volume when imported, are classed as spirits under item 168.50." (Schedule 1, part 12C, headnote 1, Tariff Schedules of the United States.)

CR-257

TDs 42092, 51714, 53336, 55978.

TD 50388.

TDs 54318, 72-262.

TD 74-227.

TDs 55290, 73-175.

TD 53268.

TD 53064.

TD 54318, 72-262.

11.12 Labeling of wool products to indicate fiber content.--(a) Wool products imported into the United States, except those made more than 20 years prior to importation, and except carpets, rugs, mats, and upholsteries, shall have affixed thereto a stamp, tag, label, or other means of identification, as required by the Wool Products Labeling Act of 1939 and the rules and regulations promulgated thereunder by the Federal Trade Commission (16 CFR Part 300). The term "wool product" means any product, or any portion of a product, which contains, purports to contain, or in any way is represented as containing wool, reprocessed wool, or reused wool.

(b) If imported wool products are not correctly labeled and the collector is satisfied that the error or omission involved no fraud or willful neglect, the importer shall be afforded a reasonable opportunity to label the merchandise under customs supervision to conform with the requirements of such Act and the rules and regulations of the Federal Trade Commission. The compensation and expenses of customs officers and employees assigned to supervise the labeling shall be reimbursed to the Government and shall be assessed in the same manner as in the case of marking of country of origin, section 134.55 of this chapter.

(c) Packages of wool products subject to the provisions of this section which are not designated for examination may be released pending examination of the designated packages, but only if there shall have been filed in connection with the entry the usual Customs single entry or term bond in such amount as is prescribed for such bonds in section 113.14 of these regulations.

(d) The collector of customs shall give written notice to the importer of any lack of compliance with the Wool Products Labeling Act of 1939 in respect of an importation of wool products, and pursuant to section 141.113 of these reguiations shall demand the immediate return of the involved products to customs custody, unless the lack of compliance is forthwith corrected.

(e) If the products covered by a notice and demand given pursuant to paragraph (d) of this section are not promptly returned to customs custody and the collector is not fully satisfied that they have been brought into compliance with the Wool Products Labeling Act of 1939, appropriate action shall be taken to effect the collection of liquidated damages in an amount equal to the entered value of the merchandise not redelivered, plus the estimated duty thereon as determined at the time of entry, unless the owner or consignee shall file with the appropriate customs officer an application for cancelation of the liability incurred under the bond upon the payment as liquidated damages of a lesser amount than the full amount of the liquidated damages incurred, or upon the basis of such other terms and conditions as the Secretary of the Treasury may deem sufficient. The application shall contain a full statement of the reasons for the requested cancelation and shall be in duplicate.

(f) If any fraudulent violation of the Act with respect to imported articles comes to the attention of the collector of customs, the involved merchandise shall be placed under seizure, or a demand shall be made for the redelivery of the merchandise if it has been released from customs custody, and the case shall be reported to the Federal Trade Commission, Washington, D. C. (Sec. 8, 54 Stat. 1132; 15 U.S.C. 68f.)

11.12a Labeling of fur products to indicate composition.--(a) Fur products imported into the United States shall have affixed thereto a label as required by section 4 of the Fur Products Labeling Act (15 U.S.C. 69b) and the rules and regulations promulgated thereunder by the Federal Trade Commission (16 CFR 301.1- 301.49). The term "fur product" means any article of wearing apparel made in whole or in part of fur or used fur; except that such term shall not include such articles as the Federal Trade Commission shall exempt by reason of the relatively small quantity or value of the fur or used fur contained therein. (b) If imported fur products are not correctly labeled and the collector is satisfied that the error or omission involved no fraud or wilful neglect, the importer shall be afforded a reasonable opportunity to label the merchandise under customs supervision to conform with the requirements of such act and the rules and regulations of the Federal Trade Commission. The compensation and expenses of customs officers and employees assigned to supervise the labeling shall be reimbursed to the Government and shall be assessed in the same manner as in the case of marking of country of origin, section 134.55 of this chapter.

(c) Packages of fur products subject to the provisions of this section which are not designated for examination may be released pending examination of the designated packages, but only if there shall have been filed in connection with

CR-258