R. S., 2989.

R. S., 2954.

R. S., 2958, 2960.

R. S., 2960.

R. S., 2958.

CHAPTER XIII.

BONDED WAREHOUSES.

§ 1. CLASSIFICATION.

ARTICLE 962. Warehouses for the storage of bonded merchandise shall be used exclusively for this purpose and for the storage of unclaimed goods under Government control, and shall be arranged in the following classes:

CLASS 1. Warehouses which are owned or leased by the Government and used for the storage of seized and unclaimed goods shall be known as "General order stores."

Where no such stores are available for the above purpose, such goods may be stored in a warehouse of Class Three. If there be no warehouse of the latter class, the collector may, with the approval of the Secretary of the Treasury, procure suitable premises for the temporary storage of imported goods of which he has under the law taken possession.

CLASS 2. Importers' private bonded warehouses occupied exclusively for the storage of imported merchandise owned by the proprietors and entered in bond.

Warehouses of this class shall be used only for the above purpose. Cellars and vaults may, in the discretion of the Secretary of the Treasury, be bonded in this class for the storage of wines and spirits only.

CLASS 3. Bonded warehouses used for the general storage of imported goods.

Warehouses of this class shall consist of entire buildings, used solely for the storage of bonded goods and of unclaimed or seized goods ordered therein by the collector. CLASS 4. Bonded yards or sheds for the storage of heavy and bulky imported merchandise.

Warehouses of this class are to be used exclusively for the storage of wood, coal, mahogany, dyewoods, lumber, marble, molasses, sugar in hogsheads and tierces, railroad, pig, and bar iron, anchors, chain cables, and other heavy, bulky articles. The yards must be inclosed by substantial fences, not less than 12 feet in height, with entrance gates opening into the street or public way, and provided with suitable bars and other fastenings, so as

to admit of being secured by customs locks. Sheds, when required, must be constructed within the limits of the yard, and in such manner as to protect from injury the goods to be stored therein, and the doors and other openings must be provided with suitable fastenings. The collector may order to such yards unclaimed or seized goods of the character described in this article.

Whenever the business of a port of entry requires the facilities of bonded yards, barns, or sheds for the protection of imported horses, cattle, sheep, etc., application must be made by the collector for authority to provide the same.

CLASS 5. Bonded bins or parts of buildings or of elevators to be used for the storage of grain.

The bonded portion must be separated from the rest of R. S., 2959. the buildings and all entrances and openings properly secured.

Warehouses of class 4 or class 5 may be bonded exclusively for the storage of goods imported by the proprietor, in which case they will be designated as "importers' private warehouses."

CLASS 6. Manufacturing bonded warehouses.

These warehouses may be established for the manufac-July 24, ture, in bond, solely for exportation, of articles made in whole or in part of imported materials or of materials subject to internal-revenue tax; also for the storage and cleansing of imported rice intended for exportation.

CLASS 7. Warehouses for smelting and refining imported ores and crude metals intended to be exported in a refined but unmanufactured state.

§ 2. ESTABLISHMENT OF BONDED WAREHOUSES OTHER

THAN MANUFACTURING.

ART. 963. In order to establish a bonded warehouse, the owner or lessee shall make application in writing to the collector of the port, describing the premises, the location, and capacity of the same, and setting forth the purpose for which the building is to be used, whether for the storage of merchandise imported or consigned to himself exclusively, or for the general storage of merchandise in bond.

This application must be accompanied by a certificate signed by the president or secretary of a board of fire underwriters, where such board exists, and at other ports by the proper officers or agents of two or more insurance companies that the building offered is a first-class warehouse, according to the classification of insurance offices at that port.

Act Mar. 24, 1874.

T. D. 17717.

R. S., 2961.

The collector will thereupon direct the superintendent of warehouses to examine the premises, and report in writing the particulars relative to the location, construction, and dimensions of the building, the means provided for the safekeeping of merchandise, whether the building is separated from adjoining buildings by a brick or stone wall in which there is no door or other opening, and all other facts having a bearing on the subject.

On receipt of such report, the collector will transmit the same to the Secretary of the Treasury, together with the application, the insurance certificates, and an expression of his views thereon.

ART. 964. If the reports be satisfactory, and show that the public interest will be subserved, the application will be granted; whereupon the owner or occupant will be notified by the collector to enter into bond in duplicate in the form prescribed, in such penalty, and with such security, as the collector may deem proper.

Both copies of the bond, with a statement by the collector as to the sufficiency of the penalty and the responsibility of the obligors, will be forwarded to the Secretary of the Treasury for his approval.

ART. 965. In executing the bonds required from the proprietors of bonded warehouses, the full names and occupations of principals and sureties, and their places of residence, including street and number, if in a city, must be inserted in the body of the bond. The penalty of the bond must be written in words at length, and the premises must be accurately described by street and number. The bond must be signed by principals and sureties in the order in which their names appear in the obligation, and if a copartnership is a party to the bond, each member must sign it, and the firm must be described in the body of the obligation, thus: A, B, and C, doing business under the style of A, B & Co. If a corporation is a party, the bond must be signed by an officer of the same, duly authorized, and accompanied by evidence of such authority, and sealed with the corporate seal, and the corporation must be described in the body of the obligation by its legal designation. If there be no seal, that fact must be certified. If any of the signatures are by attorney, the original power in due form must be filed at the custom-house, and a certified copy sent with the copy of the bond to the Secretary of the Treasury. The bond must have appended to it an affidavit, sworn to before the collector, and signed by each surety, if an individual, in form Cat. No. 700.

ART. 966. The collector will promptly notify the Secretary of the Treasury of the death, pecuniary embarrassment, or insolvency of any of the parties, or of any circumstances which make it advisable to require a new bond.

New bonds must in all cases be given when a warehouse passes into the hands of new principals, as where changes take place in partnership.

Alterations in bonded warehouses can be made only by permission from the collector, and, if constituting a material change in the premises, with the approval of the Secretary of the Treasury.

It is the duty of the collector to advise the Secretary of the Treasury of all changes in the surroundings of bonded premises likely to affect their security. If burned, or otherwise destroyed, immediate notice, with full particulars, must be given, and the facts indorsed on the bond. If rebuilt, such premises can not be used as a bonded warehouse unless bonded anew.

ART. 967. The proprietors or occupants of bonded warehouses may be required, on ten days' notice from the collector, to renew their bonds; and if they fail so to do, no more goods shall be sent to their warehouses, and those therein shall be removed at their expense.

When a proprietor desires to discontinue his warehouse a written request to that effect, addressed to the collector, will be required. Upon the receipt of such request, the collector will cause such goods as may be stored in the warehouse to be removed at the risk and expense of the proprietor. A careful examination of the accounts of said warehouse, and a comparison of them with the books of the custom-house, and an inventory of such goods as may have been removed to another warehouse for storage at the time of discontinuance, will then be made and the result reported to the Department.

Until notified of the approval by the Department of the proposed discontinuance, the customs officers will retain custody of the premises.

ART. 968. Warehouses may, at any time, for reasonable cause, be discontinued by the direction of the Secretary of the Treasury, and when discontinued, for any reason, must be rebonded before they can be again used for like purposes.

After warehouses have been approved and placed under customs lock, the collector may order additional fastenings to be furnished by the proprietors.

R. S., 2989.

ART. 969. An office for the accommodation of the owner or occupant may be allowed in warehouses, but such office must be separated by a partition from the rest of the premises, so that the owner shall have no access to the goods, except in the presence of the officer, who must be allowed such use of the office as may be necessary for him in connection with his duties.

ART. 970. Should the proprietor of any bonded warehouse neglect or refuse to pay to the collector the compensation of the officers in charge, or fail to comply with the laws and regulations applicable to bonded warehouses, the collector shall refuse permission to deposit goods in such warehouse, and report the facts to the Secretary of the Treasury.

ART. 971. Collectors failing to collect the amounts due for storage and labor accruing in public stores, or the pay of officers in charge of bonded warehouses, will be charged with such sums in their accounts.

All moneys received from owners or occupants of private bonded warehouses, and all sums received for storage and other expenses in public stores, must be accounted for by collectors in their accounts, and be certified by the naval officer, to whom all permits having amounts to be received, for storage or other charges, must be presented, and who will keep a daily record of the amounts received.

ART. 972. Fires shall not be permitted in any warehouse, except in the business office, and where lights are required safety lanterns must be used, unless electric lights are specially authorized by the Department and approved by the sureties on the bond.

All the doors and other fastenings of bonded warehouses must be secured by customs locks of different pattern from those of the proprietor.

Suitable and comfortable office accommodations for the storekeeper shall be provided in every bonded warehouse by the proprietor thereof.

Collectors will cause all rules and regulations relating to the management of bonded warehouses to be printed and posted in a conspicuous place in every warehouse.

ART. 973. All merchandise deposited in general-order stores or in bonded warehouses shall be held liable for the expenses of labor and storage chargeable thereupon at the customary rates and for all other expenses accruing upon the goods. The collector shall assign an employé to take charge as storekeeper of the merchandise in each