T. D. 13219.

CHAPTER XIX.

LIQUIDATION OF DUTIES.

ART. 1416. As soon as the appraiser has made his report to the collector of the value, character, and quantity of the merchandise contained in any foreign invoice, and the surveyor has given all the information required of him concerning the weight, gauge, and measurement of the same, the collector shall compare the reports so received with the invoice and entry, and shall carefully compute the duty upon the basis of such reports. Whenever a new statement of duty is required to be made, it should be noted on the entry in red ink; but, if the original statement proves to have been correct, such statement shall be certified in red ink with the liquidator's initials.

The papers shall then be transmitted to the naval officer, if there be one, and the duty shall be similarly computed by him upon the copy of the entry which was filed in his office, and if in accordance with the collector's statement, the latter shall be certified in red ink with the initials of the liquidator in the naval office. When the papers are returned to the collector with the naval officer's certificate, as above, the entry shall be stamped with the word "liquidated" and with the date of stamping. This stamp becomes the legal evidence of liquidation, and the right of protest against the assessment of duty must be exercised within ten days from the date of such liquidation. Notice of such liquidation shall on the date thereof be conspicuously posted in the collector's office for the information of importers.

ART. 1417. A daily record shall be kept by the collector of all entries liquidated, stating the name of the vessel, the port from which she arrived and the date of her arrival, the name of the importer, and the serial number and date of the entry. A daily record must also be kept by both the collector and the naval officer of all additional duties found upon liquidation, and notice thereof promptly sent to the parties in interest. If within ten days thereafter such duties shall not have been paid, the district

attorney shall be instructed to commence suit for the recovery thereof.

ART. 1418. Whenever either of the liquidating officers desires any explanation or further information from the appraiser regarding his report upon any invoice, he may return the invoice to the appraiser with a request for the special information required, and the appraiser shall, as far as practicable, furnish the same.

ART. 1419. No abatement of duties can be made on account of damage received during the voyage of importation. Duties must be assessed on the actual quantity imported, as shown by the returns of weighers, gaugers, or measurers, or of appraisers, as the case may be.

T. D. 12184, 12198, 13704,16497,

Whenever the appraiser reports a deficiency in the contents of a package, as called for by the invoice, no allow- 17844, 18506,18630, ance shall be made unless evidence satisfactory to the collector shall be produced that said shortage occurred before the arrival of the merchandise in this country, the burden of proof in such cases resting upon the importer; but no claim for damage occurring before arrival can be entertained.

Act June 10, 1890, sec. 7; act

32.

ART. 1420. Whenever entry is made on pro forma invoice, or on a statement in form of an invoice, and bond July 24, 1897, sec. is taken for the production of a duly certified invoice, the liquidation of such entry need not be suspended until such certified invoice is produced. If the certified invoice shows an excess in quantity or value over quantity or value as returned by appraiser on original appraisal, it will be sent to him for further report, and additional duties shall be collected on any excess of quantity or value so shown on a reliquidation of the entry.

Act June 10,

1890, sec. 7: T. D.

1897, sec. 32.

ART. 1421. If the appraised value of any article of imported merchandise shall exceed the value declared in the 9544; act July 24, entry, there shall be levied, collected, and paid, in addition to the duties imposed by law on such merchandise, a further sum equal to 1 per cent of the total appraised value for each 1 per cent that such appraised value exceeds the value declared in the entry, and if such appraised value shall exceed the value declared in the entry more than 50 per cent, except when arising from a manifest clerical error, such entry shall be held to be presumptively fraudulent, and the collector of customs shall seize such merchandise and proceed as in cases of forfeiture for violation of the customs laws.

An addition by the appraiser to entered value of arti- T. D. 10158. cles entered on pro forma invoices, or statements in the

Act June 10,

1890, sec. 7, as

form of an invoice, subjects such articles to the additional duty of 1 per cent for each 1 per cent of excess in such value, but in case the appraiser does not advance such value at time of appraisal, and the certified invoice subsequently received shows a value in excess of entered value, such additional duty does not accrue.

In computing additional duty under section 7 of the act of June 10, 1890, as amended by section 32 of the act of July 24, 1897, for undervaluation, the additional duty of 1 per cent for each 1 per cent of undervaluation should not be assessed upon any fraction of 1 per centum: thus should the appraiser's addition to value amount to 101, 103, or 10 per cent the additional duty would be 10 per cent in each instance.

ART. 1422. When an invoice comprises several articles, amended by sec. and any one or more of them is found by appraisement 32, act July 24, 1897. to be undervalued, additional duty will attach only to such article or articles, irrespective of the appraisal of the other articles in the invoice.

T. D. 12074, 16917, 19240.

Soc. 32. Act July 24, 1897; T.

ART. 1423. Merchandise paying a purely specific duty is not liable to additional duty for undervaluation, but if the specific duty is at all dependent upon value, as in the case of steel bars, which are dutiable at a certain sum a pound, according to the value of the steel, the additional duty attaches if the value of the merchandise is advanced.

ART. 1424. When goods are invoiced and entered by the package or other undefined quantity, the appraiser must ascertain the dutiable value of the actual contents, and if the same exceeds the value declared on entry, the additional duty for undervaluation will attach, notwithstanding it be alleged that the difference arises from an excess of quantity.

ART. 1425. The Government may institute forfeiture D. 18970, 2169. proceedings and take additional duty.

Additional duties do not constitute an element of home market value, but if proceedings in personam be instituted for recovery of such value and fail, the Government may sue for additional duty.

ART. 1426. The Secretary of the Treasury has no power to remit additional duty when it accrues.

Additional duty is a personal debt due by the importer to the United States, which is not in any way impaired by the fact that the goods have left the possession of the importer and have been transported to another port, and such additional duty is not subject to rebate or drawback upon exportation of the goods.

ART. 1427. Additional duty for undervaluation, when T. D. 7583. incurred, must be paid before delivery of the merchandise for consumption or withdrawal from warehouse for transportation or exportation in bond.

ART. 1428. Whenever additional duty accrues the collector will retain in his possession the packages sent for examination until such additional duty has been paid, on liquidation, or a deposit made before liquidation, of a sum equal to the unpaid duties.

ART. 1429. In transmitting to the Department reports on applications for the remission of additional (penal) duties levied under section 7 of the act of June 10, 1890, as amended by section 32, act of July 24, 1897, the kinds of merchandise, whether purchased or consigned, the total entered and appraised values thereof, the amount of additional duties, and, if consigned, whether exported by foreign purchaser or manufacturer, should be stated.

In cases in which application is made for the release of merchandise seized for undervaluation under the section above mentioned, reports should include the kinds of merchandise, the total foreign and appraised values, the regular duties, the amount of the penal duties that would have accrued had the merchandise not been seized, and, if consigned, whether exported by foreign purchaser or manufacturer.

ART. 1430. Additional duty does not accrue in cases where the entered value is passed as correct on appraisement at the original port of entry, but is subsequently advanced on the basis of valuation made by customs officers at port of destination and accepted by officers at original port.

ART. 1431. Additional duty is not incurred by a simple excess of quantity ascertained on importation over the quantity expressed in the invoice, but only where the value of the article, as given in the invoice and entry, shall be below the appraised value. The regular duty is, however, to be assessed on the excess as ascertained.

T. D. 3685.

ART. 1432. If the value of imported merchandise is prop- T. D. 2593. erly stated in the money of the foreign country from which such merchandise is imported, but the invoice specifies the value of such foreign money at too low a rate, additional duties do not accrue, though the proper statement of the value of such foreign money by the appraiser raises the value of the merchandise in United States money above the value in United States money as stated in the invoice, it being the duty, not of the importer but of the

R. S., 2901.

15610: act Oct. 1.

1890.

collector, to reduce the foreign currency specified in the entry to United States money.

ART. 1433. If a package be found by the appraisers to contain any article not specified in the invoice, and they shall be of opinion that such article was omitted with fraudulent intent, the contents of the entire package will be liable to seizure and forfeiture. But when, in the opinion of the appraisers, no fraudulent intent is apparent, the value of the excess will be added to the entry and duties paid accordingly.

ART. 1434. An additional duty of 10 per cent ad valorem is imposed upon all merchandise imported in vessels not of the United States which are not placed by law or R.S. 3027; T.D, treaty on the footing of vessels of the United States. This duty must be paid before the goods can be delivered for consumption or withdrawn from warehouse for transportation in bond; and can not be remitted or refunded on exHadden portation. Such goods imported in transit for immediate exportation, are not liable to the additional duty. Discriminating duties, when imposed, apply to all merchandise not specially excepted, whether otherwise dutiable or free. ART. 1435. Warehouse entries shall be liquidated by package, except where the packages are uniform in respect to character, quantity, and value of contents.

v.

Barney, 5 Wallace, 104.

U. S. v. Lyman, Mason, 487.

Act July 24, 1897. 697.

18639, 18934.

ART. 1436. Duties on imports accrue on arrival of the importing vessel within the limits of a port of entry with intent to unlade, and not upon the entry of the cargo at the custom-house.

ART. 1437. The liability for duties, attaching on importation, constitutes a personal debt, due from the importer to the United States, which can be discharged only by payment in full of all duties legally accruing as aforesaid. may be enforced, notwithstanding an erroneous construction of law or regulations may have enabled the importer to pass his goods through the custom-house without such payment. It also constitutes a lien upon the merchandise imported, which may be enforced while the same is in the custody or subject to the control of the United States.

ART. 1438. Dutiable merchandise imported and afterT. D. 18384, wards exported, although it may have paid duty on the first importation, is liable to duty on every subsequent importation into the United States; but this does not apply to wearing apparel and personal effects accompanying a passenger who took them to a foreign country and brought them back in use.

R.S., 3114,3115.

ART. 1439. Equipments and repairs made in foreign