                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 4--TARIFF ACT OF 1930
 
                 SUBTITLE III--ADMINISTRATIVE PROVISIONS
 
     Part IV--Transportation in Bond and Warehousing of Merchandise
 
Sec. 1562. Manipulation in warehouse

    Unless by special authority of the Secretary of the Treasury, no 
merchandise shall be withdrawn from bonded warehouse in less quantity 
than an entire bale, cask, box, or other package; or, if in bulk, in the 
entire quantity imported or in a quantity not less than one ton weight. 
All merchandise so withdrawn shall be withdrawn in the original packages 
in which imported unless, upon the application of the importer, it 
appears to be the appropriate customs officer that it is necessary to 
the safety or preservation of the merchandise to repack or transfer the 
same; except that upon permission therefor being granted by the 
Secretary of the Treasury, and under customs supervision, at the expense 
of the proprietor, merchandise may be cleaned, sorted, repacked, or 
otherwise changed in condition, but not manufactured, in bonded 
warehouses established for that purpose and be withdrawn therefrom--
        (1) without payment of duties for exportation to a NAFTA 
    country, as defined in section 3301(4) of this title, if the 
    merchandise is of a kind described in any of paragraphs (1) through 
    (8) of section 3333(a) of this title;
        (2) for exportation to a NAFTA country if the merchandise 
    consists of goods subject to NAFTA drawback, as defined in section 
    3333(a) of this title, except that--
            (A) the merchandise may not be withdrawn from warehouse 
        without assessment of a duty on the merchandise in its condition 
        and quantity, and at its weight, at the time of withdrawal from 
        the warehouse with such additions to or deductions from the 
        final appraised value as may be necessary by reason of change in 
        condition, and
            (B) duty shall be paid on the merchandise before the 61st 
        day after the date of exportation, but upon the presentation, 
        before such 61st day, of satisfactory evidence of the amount of 
        any customs duties paid to the NAFTA country on the merchandise, 
        the customs duty may be waived or reduced (subject to section 
        1508(b)(2)(B) of this title) in an amount that does not exceed 
        the lesser of--
                (i) the total amount of customs duties paid or owed on 
            the merchandise on importation into the United States, or
                (ii) the total amount of customs duties paid on the 
            merchandise to the NAFTA country;

        (3) without payment of duties for exportation to any foreign 
    country other than to a NAFTA country or to Canada when exports to 
    that country are subject to paragraph (4);
        (4) without payment of duties for exportation to Canada (if that 
    country ceases to be a NAFTA country and the suspension of the 
    operation of the United States-Canada Free-Trade Agreement 
    thereafter terminates), but the exemption from the payment of duties 
    under this paragraph applies only in the case of an exportation 
    during the period such Agreement is in operation of merchandise 
    that--
            (A) is only cleaned, sorted, or repacked in a bonded 
        warehouse, or
            (B) is a drawback eligible good under section 204(a) of the 
        United States-Canada Free-Trade Agreement Implementation Act of 
        1988; and

        (5) without payment of duties for shipment to the Virgin 
    Islands, American Samoa, Wake Island, Midway Island, Kingman Reef, 
    Johnston Island or the island of Guam.

Merchandise may be withdrawn from bonded warehouse for consumption, or 
for exportation to Canada if the duty exemption under paragraph (4) of 
the preceding sentence does not apply, upon the payment of duties 
accruing thereon, in its condition and quantity, and at its weight, at 
the time of withdrawal from warehouse, with such additions to or 
deductions from the final appraised value as may be necessary by reason 
of change in condition. The basis for the assessment of duties on such 
merchandise so withdrawn for consumption shall be the adjusted final 
appraised value, and if the rate of duty is based upon or regulated in 
any manner by the value of the merchandise, such rate shall be based 
upon or regulated by such adjusted final appraised value. The scouring 
or carbonizing of wool shall not be considered a process of manufacture 
within the provisions of this section. Under such regulations as the 
Secretary of the Treasury shall prescribe, imported merchandise which 
has been entered and which has remained in continuous customs custody 
may be manipulated in accordance with the provisions of this section 
under customs supervision and at the risk and expense of the consignee, 
but elsewhere than in a bonded warehouse, in cases where neither the 
protection of the revenue nor the proper conduct of customs business 
requires that such manipulation be done in bonded warehouse.

(June 17, 1930, ch. 497, title IV, Sec. 562, 46 Stat. 745; June 25, 
1938, ch. 679, Secs. 2, 25, 52 Stat. 1077, 1088; Aug. 8, 1953, ch. 397, 
Sec. 18(f), 67 Stat. 518; June 30, 1955, ch. 258, Sec. 2(a)(5), 69 Stat. 
242; Pub. L. 91-271, title III, Sec. 301(b), June 2, 1970, 84 Stat. 287; 
Pub. L. 100-449, title II, Sec. 204(c)(4), Sept. 28, 1988, 102 Stat. 
1863; Pub. L. 103-182, title II, Sec. 203(b)(4), Dec. 8, 1993, 107 Stat. 
2090.)

                       References in Text

    Section 204 of the United States-Canada Free-Trade Agreement 
Implementation Act of 1988, referred to in par. (4)(B), is section 204 
of Pub. L. 100-449, which is set out in a note under section 2112 of 
this title.


                            Prior Provisions

    Provisions similar to those in this section were contained in act 
Sept. 21, 1922, ch. 356, title IV, Sec. 562, 42 Stat. 978. That section 
was superseded by section 562 of act June 17, 1930, comprising this 
section, and repealed by section 651(a)(1) of the 1930 act.
    Prior provisions substantially the same, in effect, as those in this 
section with respect to the quantity of merchandise which might be 
withdrawn, were contained in R.S. Sec. 2980, prior to repeal by act 
Sept. 21, 1922, ch. 356, title IV, Sec. 642, 42 Stat. 989.


                               Amendments

    1993--Pub. L. 103-182 substituted ``be withdrawn therefrom--'' for 
``be withdrawn therefrom without payment of duties--'' in second 
sentence, substituted ``paragraph (4) of the preceding sentence'' for 
``paragraph (1) of the preceding sentence'' in third sentence, added 
pars. (1) to (5), and struck out former pars. (1) to (3) which read as 
follows:
    ``(1) for exportation to Canada, but on or after January 1, 1994, or 
such later date as may be proclaimed by the President under section 
204(b)(2)(B) of the United States-Canada Free-Trade Agreement 
Implementation Act of 1988, such exemption from the payment of duties 
applies only in the case of the exportation to Canada of merchandise 
that--
        ``(A) is only cleaned, sorted, or repacked in a bonded 
    warehouse, or
        ``(B) is a drawback eligible good under section 204(a) of such 
    Act of 1988;
    ``(2) for exportation to any foreign country except Canada; and
    ``(3) for shipment to the Virgin Islands, American Samoa, Wake 
Island, Midway Island, Kingman Reef, Johnston Island or the island of 
Guam.''
    1988--Pub. L. 100-449 substituted the except clause and following 
sentence for proviso at end of second section which read as follows: ``: 
Provided, That upon permission therefor being granted by the Secretary 
of the Treasury, and under customs supervision, at the expense of the 
proprietor, merchandise may be cleaned, sorted, repacked, or otherwise 
changed in condition, but not manufactured, in bonded warehouses 
established for that purpose and be withdrawn therefrom for exportation 
to a foreign country or for shipment to the Virgin Islands, American 
Samoa, Wake Island, Midway Islands, Kingman Reef, Johnston Island, or 
the island of Guam, without payment of the duties, or for consumption, 
upon payment of the duties accruing thereon, in its condition and 
quantity, and at its weight, at the time of withdrawal from warehouse, 
with such additions to or deductions from the final appraised value as 
may be necessary by reason of change in condition.''
    1970--Pub. L. 91-271 substituted reference to appropriate customs 
officer for reference to collector.
    1955--Act June 30, 1955, inserted ``Johnston Island''.
    1953--Act Aug. 8, 1953, in third sentence struck out ``the entered 
value or'' after ``consumption shall be'', ``whichever is higher,'' 
after ``the adjusted final appraised value,'', and ``; but for the 
purpose of the ascertainment and assessment of additional duties under 
section 1489 of this chapter adjustments of the final appraised value 
shall be disregarded'' after ``such adjusted final appraised value''.
    1938--Act June 25, 1938, inserted sentence providing for 
manipulation of imported merchandise entering and remaining in 
continuous customs custody in cases where neither the protection of the 
revenue nor proper conduct of business requires such manipulation be 
done in a bonded warehouse, and inserted ``Wake Island, Midway Islands, 
Kingman Reef'' before ``or the island of Guam''.


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-182 applicable (1) with respect to exports 
from the United States to Canada on Jan. 1, 1996, if Canada is a NAFTA 
country on that date and after such date for so long as Canada continues 
to be a NAFTA country and (2) with respect to exports from the United 
States to Mexico on Jan. 1, 2001, if Mexico is a NAFTA country on that 
date and after such date for so long as Mexico continues to be a NAFTA 
country, see section 213(c) of Pub. L. 103-182, set out as an Effective 
Date note under section 3331 of this title.


            Effective and Termination Dates of 1988 Amendment

    Amendment by Pub. L. 100-449 effective on date the United States-
Canada Free-Trade Agreement enters into force (Jan. 1, 1989), and to 
cease to have effect on date Agreement ceases to be in force, see 
section 501(a), (c) of Pub. L. 100-449, set out in a note under section 
2112 of this title.


                    Effective Date of 1970 Amendment

    For effective date of amendment by Pub. L. 91-271, see section 203 
of Pub. L. 91-271, set out as a note under section 1500 of this title.


                    Effective Date of 1955 Amendment

    Amendment by act June 30, 1955, effective July 1, 1955, see note set 
out under section 1401 of this title.


           Effective Date of 1953 Amendment; Savings Provision

    Amendment by act Aug. 8, 1953, effective on and after thirtieth day 
following Aug. 8, 1953, and savings provision, see notes set out under 
section 1304 of this title.


                    Effective Date of 1938 Amendment

    Amendment by act June 25, 1938, effective on thirtieth day following 
June 25, 1938, except as otherwise specifically provided, see section 37 
of act June 25, 1938, set out as a note under section 1401 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1503, 1508 of this title.
