                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 4--TARIFF ACT OF 1930
 
                 SUBTITLE III--ADMINISTRATIVE PROVISIONS
 
                     Part V--Enforcement Provisions
 
Sec. 1613. Disposition of proceeds of forfeited property


(a) Application for remission of forfeiture and restoration of proceeds 
        of sale; disposition of proceeds when no application has been 
        made

    Except as provided in subsection (b) of this section, any person 
claiming any vessel, vehicle, aircraft, merchandise, or baggage, or any 
interest therein, which has been forfeited and sold under the provisions 
of this chapter, may at any time within three months after the date of 
sale apply to the Secretary of the Treasury if the forfeiture and sale 
was under the customs laws, or to the Commandant of the Coast Guard or 
the Commissioner of Customs, as the case may be, if the forfeiture and 
sale was under the navigation laws, for a remission of the forfeiture 
and restoration of the proceeds of such sale, or such part thereof as 
may be claimed by him. Upon the production of satisfactory proof that 
the applicant did not know of the seizure prior to the declaration or 
condemnation of forfeiture, and was in such circumstances as prevented 
him from knowing of the same, and that such forfeiture was incurred 
without any willful negligence or intention to defraud on the part of 
the applicant, the Secretary of the Treasury, the Commandant of the 
Coast Guard, or the Commissioner of Customs may order the proceeds of 
the sale, or any part thereof, restored to the applicant, after 
deducting the cost of seizure and of sale, the duties, if any, accruing 
on the merchandise or baggage, and any sum due on a lien for freight, 
charges, or contribution in general average that may have been filed. If 
no application for such remission or restoration is made within three 
months after such sale, or if the application be denied by the Secretary 
of the Treasury, the Commandant of the Coast Guard, or the Commissioner 
of Customs, the proceeds of sale shall be disposed of as follows:
        (1) For the payment of all proper expenses of the proceedings of 
    forfeiture and sale, including expenses of seizure, maintaining the 
    custody of the property, advertising and sale, and if condemned by a 
    decree of a district court and a bond for such costs was not given, 
    the costs as taxed by the court;
        (2) For the satisfaction of liens for freight, charges, and 
    contributions in general average, notice of which has been filed 
    with the appropriate customs officer according to law; and
        (3) The residue shall be deposited in the general fund of the 
    Treasury of the United States.\1\
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    \1\ See 1984 Amendment note below.
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(b) Disposition of proceeds in excess of penalty assessed under section 
        1592

    If merchandise is forfeited under section 1592 of this title, any 
proceeds from the sale thereof in excess of the monetary penalty finally 
assessed thereunder and the expenses and costs described in subsection 
(a)(1) and (2) of this section or subsection (a)(1), (a)(3), or (a)(4) 
of section 1613b of this title incurred in such sale shall be returned 
to the person against whom the penalty was assessed.

(c) Treatment of deposits

    If property is seized by the Secretary under law enforced or 
administered by the Customs Service, or otherwise acquired under section 
1605 of this title, and relief from the forfeiture is granted by the 
Secretary, or his designee, upon terms requiring the deposit or 
retention of a monetary amount in lieu of the forfeiture, the amount 
recovered shall be treated in the same manner as the proceeds of sale of 
a forfeited item.

(d) Expenses

    In any judicial or administrative proceeding to forfeit property 
under any law enforced or administered by the Customs Service or the 
Coast Guard, the seizure, storage, and other expenses related to the 
forfeiture that are incurred by the Customs Service or the Coast Guard 
after the seizure, but before the institution of, or during, the 
proceedings, shall be a priority claim in the same manner as the court 
costs and the expenses of the Federal marshal.

(June 17, 1930, ch. 497, title IV, Sec. 613, 46 Stat. 756; June 25, 
1938, ch. 679, Sec. 29, 52 Stat. 1089; 1946 Reorg. Plan No. 3, 
Secs. 101-104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097; Pub. L. 
91-271, title III, Sec. 301(b), June 2, 1970, 84 Stat. 287; Pub. L. 95-
410, title I, Sec. 110(c), Oct. 3, 1978, 92 Stat. 896; Pub. L. 98-473, 
title II, Secs. 316, 321, Oct. 12, 1984, 98 Stat. 2054, 2056; Pub. L. 
98-573, title II, Sec. 213(a)(10), Oct. 30, 1984, 98 Stat. 2986; Pub. L. 
99-570, title III, Sec. 3124, Oct. 27, 1986, 100 Stat. 3207-88.)

                       References in Text

    The customs laws, referred to in text, are classified generally to 
this title.
    The navigation laws, referred to in text, are classified generally 
to Title 33, Navigation and Navigable Waters.


                            Prior Provisions

    Provisions similar to those in this section were contained in act 
Sept. 21, 1922, ch. 356, title IV, Sec. 613, 42 Stat. 986. That section 
was superseded by section 613 of act June 17, 1930, comprising this 
section, and repealed by section 651(a)(1) of the 1930 act.
    Provisions authorizing applications to the Secretary of the Treasury 
for remission of forfeitures and restoration of the proceeds of sales, 
and provisions substantially the same as those in this section 
concerning the granting of such applications, were contained in R.S. 
Sec. 3078. R.S. Sec. 3079 provided that if no application was made 
within three months the proceeds should be distributed in the same 
manner as if the property had been condemned and sold under a decree of 
court. R.S. Sec. 3090, as amended by act Feb. 27, 1877, ch. 69, Sec. 1, 
19 Stat. 248, also specified how the proceeds of fines, penalties, and 
forfeitures incurred under customs laws, should be applied and 
distributed. All these sections were repealed by act Sept. 21, 1922, ch. 
356, title IV, Sec. 642, 42 Stat. 989.


                               Amendments

    1986--Subsecs. (c), (d). Pub. L. 99-570 added subsecs. (c) and (d).
    1984--Subsec. (a). Pub. L. 98-573, Sec. 213(a)(10)(A), and Pub. L. 
98-473, Sec. 321, inserted reference to aircraft in provisions preceding 
par. (1).
    Subsec. (a)(3). Pub. L. 98-573, Sec. 213(a)(10)(B), substituted ``in 
the general fund of the Treasury of the United States'' for ``with the 
Treasurer of the United States as a customs or navigation fine''.
    Pub. L. 98-473, Sec. 316, which directed the substitution of ``The 
residue shall be deposited in the Customs Forfeiture Fund'' for ``The 
residue shall be deposited with the Treasurer of the United States as a 
customs or navigation fine'' was not executed to text in view of the 
later amendment by section 213(a)(10)(B) of Pub. L. 98-573.
    Subsec. (b). Pub. L. 98-573, Sec. 213(a)(10)(C), inserted ``or 
subsection (a)(1), (a)(3), or (a)(4) of section 1613b of this title''.
    1978--Subsec. (a). Pub. L. 95-410, Sec. 110(c)(1), designated 
existing provisions as subsec. (a) and substituted ``Except as provided 
in subsection (b) of this section, any'' for ``Any''.
    Subsec. (b). Pub. L. 95-410, Sec. 110(c)(2), added subsec. (b).
    1970--Pub. L. 91-271 substituted reference to appropriate customs 
officer for reference to collector.
    1938--Act June 25, 1938, inserted ``and'' at end of subd. (2), 
struck out subd. (3), and redesignated subd. (4) as (3).


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-573 effective Oct. 15, 1984, see section 
214(e) of Pub. L. 98-573, set out as a note under section 1304 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 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.

                          Transfer of Functions

    By Reorg. Plan No. 3 of 1946, set out in the Appendix to Title 5, 
Government Organization and Employees, functions of Secretary of 
Commerce relating to remission and mitigation of fines, penalties and 
forfeitures incurred for violation of navigation laws were transferred 
to Commandant of Coast Guard and Commissioner of Customs, subject to 
direction and control of Secretary of the Treasury, except as otherwise 
required by law with respect to United States Coast Guard whenever it 
operates as a part of Navy. Accordingly, references to Commandant of 
Coast Guard and Commissioner of Customs substituted in text for ``the 
Secretary of Commerce''.
    For transfer of functions of other officers, employees, and agencies 
of Department of the Treasury, with certain exceptions, to Secretary of 
the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, 
Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set 
out in the Appendix to Title 5, Government Organization and Employees. 
Commissioner of Customs, referred to in text, is an officer in 
Department of the Treasury. Functions of Coast Guard and Commandant of 
Coast Guard excepted from transfer when Coast Guard is operating as part 
of Navy under sections 1 and 3 of Title 14, Coast Guard.
    Coast Guard transferred to Department of Transportation, and 
functions, powers, and duties relating to Coast Guard of Secretary of 
the Treasury and of other officers and offices of Department of the 
Treasury transferred to Secretary of Transportation by Pub. L. 89-670, 
Sec. 6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2) of Pub. L. 
89-670, however, provided that notwithstanding such transfer of 
functions, Coast Guard shall operate as part of Navy in time of war or 
when President directs as provided in section 3 of Title 14. See section 
108 of Title 49, Transportation.


                             Appropriations

    Section 2 of act June 26, 1934, ch. 756, 48 Stat. 1225, which was 
classified to section 725a of former Title 31, Money and Finance, 
repealed the permanent appropriation under the title ``Proceeds of goods 
seized and sold (Customs) (2x322)'' effective July 1, 1935, and provided 
that such portions of any Acts as make permanent appropriations to be 
expended under such account are amended so as to authorize, in lieu 
thereof, annual appropriations from the general fund of the Treasury in 
identical terms and in such amounts as now provided by the laws 
providing such permanent appropriations.

                  Section Referred to in Other Sections

    This section is referred to in sections 1600, 1609, 1613b, 1614, 
2254 of this title.
