ducts a business as described, or conducts a business for the purpose of supplying such manufacturers and busi

nesses.

(4) In the event bolting cloths are imported for stock, free entry will be allowed, provided the importer files with the collector of customs, in connection with the entry, a duly certified statement to the effect that he imports such bolting cloths expressly for the purpose of supplying manufacturers and businesses as described, or of supplying other firms who in turn supply manufacturers and businesses as described.

(5) When an importer claims free entry under the foregoing provisions, and the collector has reason to believe such claim is false or fraudulent, he is directed to refer all papers and affidavits pertaining to the particular entry to the supervising customs agent for investigation and report.

(c) Bolting cloths not marked in the manner above indicated at the time of importation may be so marked by the importers in public stores under the supervision of customs officers.

VESSELS WITHDRAWAL OF SUPPLIES FOR

Art. 455. Exemption from customs duties and internal- T. D. 9776, 9787, revenue tax. (a) Tariff act of 1930, section 309 (a):

Articles of foreign or domestic manufacture or production may, under such regulations as the Secretary of the Treasury may prescribe, be withdrawn from bonded warehouses or bonded manufacturing warehouses free of duty or internal-revenue tax for supplies (not including equipment) of vessels of war, in ports of the United States, of any nation which may reciprocate such privilege toward the vessels of war of the United States in its ports, or for supplies (not including equipment) of vessels of the United States employed in the fisheries or in the whaling business, or actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions, but no such article shall be landed at any port or place in the United States or in any of its possessions.

(b) Unless a vessel is operating on a regular schedule in a class of trade which entitles it to the privilege, it is not considered to be actually engaged in the foreign trade, or in trade between the Atlantic and Pacific ports of the United States or between the United States and its possessions, unless it actually clears from the port where the withdrawal is made for a foreign port, a port on the opposite coast of the United States, or clears from a port in the United States to a port in one of its possessions (or

120950°-32- -21

18379, 18922, 23237, 38536, 44477.

T. D. 44500.

vice versa), as the case may be; but the fact that a vessel so clearing intends to stop at an intermediate port before reaching the port for which it cleared, for the purpose of lading or unlading cargo or passengers, will not debar it from claiming the privilege.

Art. 456. United States Government vessels-Foreign war vessels. (a) As United States war vessels, transports, and vessels belonging to the United States engaged exclusively in the transportation of Government property, are not engaged in trade, they are excluded from the privilege of withdrawing supplies free of duty under section 309 (a).

(b) The privilege may be accorded to vessels of war of the following countries: Argentina, Austria, Brazil, Chile, Denmark, England, France, Germany, Greece, Holland, Italy, Japan, Korea, Norway, Rumania, Salvador, Siam, Sweden, and Venezuela.

Art. 457. Form of withdrawal-Bond.-(a) Withdrawals shall be made on customs Form 7506.

(b) If the vessel named in the withdrawal is clearing coastwise, or in the case of a vessel in the foreign trade, goes from port to port in the United States to complete lading or unlading of cargo or passengers, and the withdrawal is made by a person other than the importer of record, a bond must be taken on customs Form 7561.

(c) No bond shall be required in the case of war vessels. Art. 458. Delivery permit-Lading.-(a) Upon the filing of the withdrawal and the execution of the bond, when required, the collector shall issue a permit on customs Form 7506A.

(b) A copy of the withdrawal will be transmitted to the surveyor or inspector acting as such, who shall designate a customs officer to supervise the lading of the merchandise and make a return thereof.

(c) The merchandise shall be entered on the store list of the vessel on which laden, which fact shall be certified by the marine clerk or officer acting as such on the withdrawal.

Art. 459. Intermediate ports.-A copy of the store list showing the articles withdrawn and taken on board as supplies shall be made on or attached to the manifest, and if the vessel touches at an intermediate port in the United States the collector at such port shall see that no portion of the supplies so noted is landed except upon entry and payment of duties.

Art. 460. Vessels diverted after clearance.- -When, subsequent to clearance, a vessel which has withdrawn supplies free of duty is diverted to a class of trade not entitled to the privilege, the parties in interest shall immediately notify the collector of customs at the port of withdrawal, who shall cancel the conditional withdrawal and collect duty on such supplies. Whenever any such diversion comes to the attention of a collector of customs at any port in the United States, he shall likewise notify the collector at the port of withdrawal.

Art. 461. Cancellation of bonds.-The bond given on withdrawal of supplies shall be canceled upon the production of an affidavit of the master or other officer of the vessel having knowledge of the facts, showing that such supplies have been used on board the vessel, and no portion thereof landed within the limits of the United States or any of its possessions.

Art. 462. Tobacco products.-(a) Tariff act of 1930, section 317:

The shipment or delivery of manufactured tobacco, snuff, cigars, or cigarettes, for consumption beyond the jurisdiction of the internal-revenue laws of the United States, as defined by section 3448 of the Revised Statutes, shall be deemed exportation within the meaning of the customs and internal-revenue laws applicable to the exportation of such articles without payment of duty or internal-revenue tax.

(b) As provided in section 3448 R. S. (U. S. Code, title 26, sec. 1178), the jurisdiction of the internalrevenue laws extends to all territory within the exterior boundaries of the United States; that is, within the 3-mile limit.

(c) Imported manufactured tobacco, snuff, cigars, and cigarettes in bonded warehouse or otherwise in customs custody, and such articles manufactured with the use of imported materials in a bonded manufacturing warehouse of class 6, may be withdrawn under section 317 for consumption beyond the 3-mile limit or international boundary, as the case may be, on vessels whether foreign or domestic, actually engaged in the foreign trade, or operating on a regular schedule in trade between one great district of the United States and another great district thereof, or between the United States and the Philippine Islands, the Virgin Islands, American Samoa or the island of Guam, or actually clearing for such places or on vessels of war or other governmental activity, including vessels belonging to the United States, in, or en route to, places. outside the jurisdiction of the internal-revenue laws.

(d) The privilege may not be granted to vessels stationed in American waters for an indefinite period without sailing schedules, nor to vessels engaged in trade between ports in the same great district.

(e) With the following additions and exceptions, the same procedure shall be followed as in the case of withdrawals under section 309 (a):

(1) No bond shall be required in the case of vessels operated by the United States Government.

(2) When the merchandise is not withdrawn from warehouse, customs Form 7512 shall be used in lieu of customs Form 7506.

(3) When a shipping case containing tobacco products is made up of a number of units, each in a separate package, such units may be withdrawn separately, provided each unit is marked and numbered for identification and contains not less than 250 cigars or 1,000 cigarettes, or 5 pounds of tobacco or snuff. In the case of imported tobacco products so packed, only one unit from each shipping case shall be opened for examination, unless the appraiser shall deem it necessary for the protection of the revenue to examine a greater quantity.

(4) When all of the units in such a shipping case are not to be withdrawn at the same time or for use on the same vessel, a blanket withdrawal may be filed for the entire case in lieu of a separate withdrawal for each unit. In such cases the withdrawal shall be retained by the storekeeper until delivery receipts are obtained for the entire quantity covered by the withdrawal, provided that the total period of time during which the merchandise remains in bonded warehouse does not exceed three years and the bond on customs Form 7561, when required, need not be taken until the articles are ready for removal from the warehouse for delivery to the vessel on which they are to be used.

(5) Merchandise for which blanket withdrawals are filed shall be stored in a separate room or inclosure in a bonded warehouse under separate locks, and shall be inventoried at least once each month; and if, on any such inventory, any merchandise is found to be unaccounted for, duties shall be paid thereon before any further withdrawals are permitted.

(6) The affidavit of use when required shall contain a statement that the articles covered by the withdrawal were consumed beyond the 3-mile limit.

(7) Imported tobacco products on which the duty or internal-revenue tax has been paid may not be withdrawn under section 317 with benefit of drawback of such duty or internal-revenue tax.

NOTE.-For procedure relative to the withdrawal of tobacco products of domestic manufacture without payment of internal-revenue tax, for use as supplies on vessels, see Internal Revenue Regulations No. 76.

ARTICLES EXPORTED FOR EXHIBITION

Art. 463. Articles entitled to privilege.-(a) United T. Ds. 17202, States Code, title 19, section 194:

Whenever any article or articles or livestock shall be sent out of the United States for temporary use or exhibition at any public exposition, fair, or conference, held in a foreign country, such articles shall be entitled to be returned to the United States, under such regulations as may be prescribed by the Secretary of the Treasury, without the payment of customs duty, whether they shall be of domestic or foreign production: Provided, That the articles of foreign production have once paid duty in the United States and no drawback has been allowed thereon, and if any domestic articles are subject to internal revenue tax, such tax shall be proved to have been paid before exportation and not refunded. (May 18, 1896, c. 195, 29 Stat. 122).

(b) United States Code, title 19, section 195:

20819, 29950, 37305.

The privilege of free entry conferred by section 194 of this title T. Ds. 20819, shall apply to wild and other animals of foreign origin taken 31687. abroad temporarily for exhibition in connection with any circus or menagerie, subject, however, to the conditions and limitations prescribed in said section. The provision of this section shall apply only in such cases as those of foreign-born animals taken abroad, and inventories of which are filed prior to their leaving the country with the collector of customs at the port of their departure. (Mar. 3, 1899, c. 454, 30 Stat. 1372.)

Art. 464. Procedure on entry.-(a) There shall be required in connection with the entry of such articles

(1) A certificate of exportation, customs Form 4467. (2) A declaration made by the foreign shipper before the United States consul, on consular Form 204, irrespective of the value of the shipment, stating that such articles were sent from the United States for temporary exhibition. (3) A declaration of the importer on customs Form 3329 for merchandise of either domestic or foreign origin. (4) In the case of animals of foreign origin taken T. Ds. 20819, abroad for exhibition in connection with a circus or menagerie, the inventory required by section 195 above quoted.

(b) If it is shown to be impracticable to produce the certificate of exportation required under No. 1 above, the collector may accept other satisfactory evidence of exportation, or may take a bond to produce the same, or for the production of the foreign shipper's declaration required by paragraph (2) above.

31687.