If forfeited property the subject of a claim under section 613, Tariff Act of 1930, as amended (19 U.S.C. 1613), has been authorized for official use, retention or delivery shall be regarded as the sale thereof for the purposes of section 613. The appropriation available to the receiving agency for the purchase, hire, operation, maintenance, and repair of property of the kind so received is available for the granting of relief to the claimant and for the satisfaction of liens for freight charges and contributions in general average that may have been filed.

(Secs. 305, 306, 49 Stat. 880; 40 U.S.C. 304j, 304k)

bond posted with Customs, the filing of petitions for relief from liquidated damages incurred, and the consideration of such petitions.

Subpart A-General Provisions

§ 172.1 Notice of liquidated damages incurred and right to petition for relief. (a) Notice of liquidated damages incurred. When there is a failure to meet the conditions of any bond posted with Customs, the principal shall be notified in writing of any liability for liquidated damages incurred by him and a demand shall be made for payment. The sureties on such bond shall also be advised in writing, at the same time as the principal, of the liability for liquidated damages incurred by the principal.

(b) Notice of right to petition for relief. The notice shall also inform the principal and his sureties on the bond that application may be made for relief from payment of liquidated damages under section 623 (c), Tariff Act of 1930, as amended (19 U.S.C. 1623 (c)), or any other applicable statute authorizing the cancellation of any bond or of any bond charge that may have been made against such bond.

§ 172.2 Failure to petition for relief.

(a) Referral of claim to U.S. attorney. If the parties liable for liquidated damages incurred fail to petition for relief or to pay or make arrangements to pay the liquidated damages within 60 days from the date of mailing of the notice of the liquidated damages incurred as provided for in § 172.1, or within such additional time as may have been granted, the district director of Customs shall refer the claim immediately to the U.S. attorney for collection.

(b) Absence from the United States. If it appears that the parties liable for liquidated damages are absent from the United States or during the 60-day period referred to in paragraph (a) of this section were absent for more than 30 days, the district director may withhold such referral for a reasonable time unless other action is expressly authorized by the Commissioner of Customs.

Subpart B-Application for Relief § 172.11 Petition for relief.

(a) To whom addressed. Petitions for relief shall be addressed to the Commissioner of Customs.

(b) Form. A petition for relief need not be in any particular form. Such petition shall set forth the facts relied upon by the petitioner to justify cancellation of the claim for liquidated damages, and shall be signed by the petitioner. If the petitioner is a corporation, the petition shall be signed by an officer thereof. § 172.12 Filing of petition for relief.

(a) Where filed. A petition for relief shall be filed with the district director of Customs for the district in which the liability for liquidated damage is incurred.

(b) When filed. A petition for relief shall be filed within 60 days from the date of mailing of the notice of the liability for liquidated damages incurred unless an extension of such period has been granted by the district director.

(c) Number of copies. The petition for relief shall be filed in triplicate.

Subpart C-Action on Petitions § 172.21

Petitions acted on by district director of Customs.

In the following cases the district director of Customs may cancel any claim for liquidated damages incurred on such terms and conditions as, under the law and in view of the circumstances, he shall deem appropriate:

(a) Under $500. Liquidated damages under $500, incurred under the terms of any bond posted with Customs.

(b) Not over $20,000. (1) Claims for liquidated damages not exceeding $20,000 incurred for violation of the conditions of bonds taken pursuant to schedule 8, part 5C, Tariff Schedules of the United States. (See § 10.39(e) and (f) of this chapter.)

(2) Claims for liquidated damages not exceeding $20,000 incurred for violation of the conditions of bonds taken pursuant to schedule 3, part 1C, headnote 4, Tariff Schedules of the United States. (See § 10.92 of this chapter.)

(3) Claims for liquidated damages not exceeding $20,000 in cases involving only country of origin marking under section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304). (See § 11.11(d) of this chapter.)

(4) Claims for liquidated damages not exceeding $20,000 incurred for violation of the conditions of bonds taken pursuant to § 18.1 of this chapter (See § 18.8 (d) of this chapter.)

(5) Claims for liquidated damages not exceeding $20,000 incurred for violation

of the conditions of cartmen's and lightermen's bonds taken pursuant to § 21.1 of this chaapter. (See § 21.8 (c) of this chapter.)

§ 172.22 Special cases acted on by district director of Customs.

(a) Nonproduction of documents in general. District directors of Customs are hereby authorized to treat any bond charge for the production of a missing document as satisfied upon payment by the principal or surety of the sum of $25 as liquidated damages for each missing declaration of the consignee or other document, except shippers' export declarations, special Customs and commercial invoices, and certificates of origin and certificates of reexport required under § 12.70 of this chapter, not produced within the time prescribed by law or regulations or any lawful extension of such time.

(b) Nonproduction of special Customs or commercial invoices. When a required special Customs or commercial invoice is not produced on the date of entry or within 6 months thereafter, unless such production is waived under the provisions of § 8.15 (d) of this chapter, the bond charge for the production thereof may be canceled by the district director upon the payment of $25 as liquidated damages, if:

(1) The party who made the entry submits an application for relief explaining in detail why the special Customs or commercial invoice could not be produced within the prescribed period; and

(2) The district director of Customs is satisfied by such application or otherwise that the failure to produce the invoice within the prescribed period was due to causes wholly beyond the control of the party making the entry and not to any purpose of the foreign seller or shipper to withhold information required by law, regulation, or special instruction to be shown on the invoice.

(c) Nonproduction of free-entry or reduced-duty documents. When free entry or the application of a reduced rate of duty is dependent upon the production of a document which the importer fails to produce, or when a conditionally free or reduced-duty provision claimed on entry is held to be inapplicable, the claim for free entry or reduced rate of duty shall be treated by the district director as abandoned upon the assessment and payment of duty and the bond given for the production of the free-entry

or reduced-duty document may be canceled without the collection of liquidated damages.

(d) Failure to file timely entry under immediate delivery procedure. When a timely entry for mechandise not subject to quota has not been filed after release under a special permit for immediate delivery, the district director may act upon an application for relief from liquidated damages assessed in accordance with § 8.59 (i) of this chapter as follows:

(1) If he is satisfied that the delay was not deliberate, the district director may cancel such liquidated damages upon the payment of an appropriate sum which shall not exceed 10 percent of the duty assessed but not less than $25. In general, the district director shall not cancel a claim for liquidated damages upon payment of an amount in the lower range of his discretion if the entry is late by more than 3 working days. In determining the appropriate amount the district director shall take into consideration the following:

(i) The circumstances causing the delay;

(ii) The extent of the lateness;

(iii) The amount of duty involved; and (iv) The past record of the importer with respect to the timeliness of filing entries.

(2) If he is satisfied that the violation was incurred solely because of a delay in the return by Customs to the importer of documents necessary to make entry, the district director may cancel such liquidated damages without payment.

(3) If collection of an amount greater than that provided by this paragraph appears warranted the case shall be forwarded to the Commissioner of Customs for disposition.

in fact occur, the claim shall be canceled by the district director. When the determination of whether or not the claim was erroneously made depends upon a construction of law, the claim shall not be canceled without the approval of the Commissioner of Customs, unless there is in force a ruling decisive of the issue. § 172.32 Limitation on time decision effective.

A decision to cancel a claim for liquidated damages on condition that a stated amount be paid shall be effective for not more than 60 days from the date of notice to the parties of such decision, unless the decision itself prescribes a different effective period or the decision is later amended to change the effective period. If payment of the stated amount is not made, or arrangements made for delayed payment or installment payments, or a supplemental petition filed within the effective period, the full claim for liquidated damages shall be deemed applicable and shall be promptly referred to the U.S. attorney for collection, unless other action has been directed by the Commissioner of Customs. § 172.33

relief.

Supplemental petitions for

(a) Time and place of filing. If the interested parties are not satisfied with a decision of the district director or the Commissioner of Customs, a supplemental petition may be filed with the district director of Customs by the interested parties. Such a petition shall be filed either:

(1) Within 60 days from the date of notice to the petitioner of the decision on the initial petition for relief if no effective period is prescribed in the decision; or

(2) Within the time prescribed in the decision on the initial petition for relief as the effective period of the decision.

(b) Consideration. Where the district director of Customs has authority to grant relief in accordance with the provisions of § 172.21, he may grant additional relief if he believes it is warranted and there has been no specific request for reconsideration by the Commissioner of Customs. In all other cases, the supplemental petition, together with all pertinent documents, shall be forwarded to the Commissioner of Customs for reconsideration of the case.

173.1

173.2

173.3

173.4

173.5

173.6

Authority to review for error. Transactions which may be reviewed and corrected.

Voluntary reliquidation.

Correction of clerical error, mistake
of fact, or inadvertence.
Review of entry covering household
for personal effects.

Review of entry for fraud.

AUTHORITY: The provisions of this Part 173 issued under R.S. 251, secs. 501, 624, 46 Stat. 730, as amended, 759; 19 U.S.C. 66, 1501, 1624.

SOURCE: The provisions of this Part 173 contained in T.D. 70-181, 35 F.R. 13429, Aug. 22, 1970, unless otherwise noted.

This part deals with the general authority of review, the authority to reliquidate voluntarily, the authority to correct for clerical error, mistake of fact, or other inadvertence under section 520 (c) (1), Tariff Act of 1930, as amended, the authority to review an entry of household or personal effects, and the power to reliquidate an entry on account of fraud.

§ 173.1 Authority to review for error.

District directors have broad responsibility and authority to review transactions to insure that the rate and amount of duty assessed on imported merchandise is correct and that the transaction is otherwise in accordance with the law. This authority extends to errors in the construction of a law and to errors adverse to the Government as well as the importer.

§ 173.2 Transactions which may be re

viewed and corrected.

The district director may review transactions for correctness, and take appropriate action under his general authority to correct errors, including those in appraisement where appropriate, at the time of:

(a) Liquidation of an entry;

(b) Voluntary reliquidation completed within 90 days after liquidation;

(c) Voluntary correction of an exaction within 90 days after the exaction was made;

(d) Reliquidation made pursuant to a valid protest covering the particular merchandise as to which a change is in order; or

(e) Modification, pursuant to a valid protest, of a transaction or decision which is neither a liquidation or reliquidation.

173.3

Voluntary reliquidation.

(a) Authority to reliquidate. The district director within 90 days from the date notice of the original liquidation is given to the importer, consignee, or agent, may reliquidate on his own initiative a liquidation or a reliquidation to correct errors in appraisement, classification, or any other element entering into the liquidation or reliquidation, including errors based on misconstruction of applicable law. A voluntary reliquidation may be made even though a protest has been filed, and whether the error is discovered by the district director or is brought to his attention by an interested party.

(b) Notice of reliquidation. Notice of a voluntary reliquidation shall be given in accordance with the requirements for giving notice of the original liquidation. (Sec. 501, 46 Stat. 730, as amended; 19 U.S.C. 1501)

§ 173.4

Correction of clerical error, mistake of fact, or inadvertence.

(a) Authority to review and correct. Even though a valid protest was not filed, the district director, upon timely application, may correct pursuant to section 520 (c) (1), Tariff Act of 1930, as amended (19 U.S.C. 1520 (c) (1), a clerical error, mistake of fact, or other inadvertence meeting the requirements of paragraph (b) of this section, by reliquidation or other appropriate action.

(b) Transactions which may be corrected. Correction pursuant to section 520 (c) (1), Tariff Act of 1930, as amended, may be made in any entry, liquidation, appraisement, or other Customs transaction if the clerical error, mistake of fact, or other inadvertence:

(1) Does not amount to an error in the construction of a law;

(2) Is adverse to the importer; and (3) Is manifest from the record or established by documentary evidence.

(c) Limitation on time for application. A clerical error, mistake of fact, or other inadvertence mecting the requirements of paragraph (b) of this section, must be brought to the attention of the district director:

(1) Within 1 year after the date of entry, or other transaction (including liquidation, reliquidation, or exaction) if

the error, mistake of fact, or other inadvertence is in the entry, or other transaction (including a liquidation, reliquidation, or exaction), or

(2) Within 90 days after liquidation or exaction when the liquidation or exaction is made more than 9 months after the date of entry, or other transaction, except that in cases where the error is in liquidation, reliquidation, or exaction, the 1-year limitation shall apply.

(Sec. 520, 46 Stat. 739, as amended; 19 U.S.C. 1520)

§ 173.5 Review of entry covering household or personal effects.

An error in the liquidation of an entry covering household or personal effects may be corrected by the district director even though a timely protest was not filed if an application for refund is filed with the district director within 1 year after the date of the entry and no waiver of compliance with applicable regulations is involved other than a waiver which the district director has authority to grant. Where the district director has no authority to grant the waiver, the application shall be referred to the Commissioner of Customs.

(Sec. 520, 46 Stat. 739, as amended; 19 U.S.C. 1520)

This part deals with the administrative review of decisions of the district director, including the requirements for the filing of protests against such decisions, amendment of protests, review and accelerated disposition, and provisions dealing further administrative review.

with

Subpart A-General Provisions § 174.1 Definitions.

When used in this part, the following terms shall have the meaning indicated:

(a) District director. "District director" means the district director of Customs at a headquarters port other than the port of New York, N.Y., and the regional commissioner of Customs for Customs Region II at the port of New York, N.Y.

(b) Further review. "Further review" means review of the decision which is the subject of the protest by Customs officers on a level higher than the district, and in Region II by Customs officers who did not participate directly in the decision which is the subject of the protest. § 174.2 Applicability of provisions.

(a) In general. The provisions of this part shall be applicable to protests against decisions involving:

(1) Articles excluded from entry or entered or withdrawn from warehouse for consumption on or after October 1, 1970;