H. R. 3450—155
4197 of the Revised Statutes of the United States (46 U.S.C.
App. 91):’’;
(2) by amending paragraph (3) to read as follows:
‘‘(3) Any vessel carrying passengers on excursion from the
United States Virgin Islands to the British Virgin Islands and
returning, if—
‘‘(A) the vessel does not in any way violate the customs
or navigation laws of the United States;
‘‘(B) the vessel has not visited any hovering vessel; and
‘‘(C) the master of the vessel, if there is on board any
article required by law to be entered, reports the article to
the Customs Service immediately upon arrival.’’;
(3) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively, and inserting after paragraph (3) the
following:
‘‘(4) Any United States documented vessel with recreational
endorsement or any undocumented United States pleasure vessel
not engaged in trade, if—
‘‘(A) the vessel complies with the reporting requirements
of section 433, and with the customs and navigation laws
of the United States;
‘‘(B) the vessel has not visited any hovering vessel; and
‘‘(C) the master of, and any other person on board, the
vessel, if the master or such person has on board any article
required by law to be entered or declared, reports such article
to the Customs Service immediately upon arrival;’’;
(4) by amending paragraph (6) (as so redesignated) by
striking out ‘‘enrolled and licensed to engage in the foreign
and coasting trade in the northern, northeastern, and north-
western frontiers’’ and inserting ‘‘documented under chapter
121 of title 46, United States Code, with a Great Lakes endorse-
ment’’; and
(5) by amending the section heading to read as follows:
‘‘SEC. 441. EXCEPTIONS 
TO 
VESSEL 
ENTRY 
AND 
CLEARANCE
REQUIREMENTS.’’.
SEC. 656. UNLADING.
Section 448(a) (19 U.S.C. 1448(a)) is amended—
(1) by amending the first sentence—
(A) by striking out ‘‘enter)’’ and inserting ‘‘enter or
clear)’’,
(B) by striking out ‘‘or vehicle arriving from a foreign
port or place’’ and inserting ‘‘required to make entry under
section 434, or vehicle required to report arrival under
section 433,’’,
(C) by inserting ‘‘or transmitted pursuant to an elec-
tronic data interchange system’’ after ‘‘issued’’, and
(D) by striking out the colon after ‘‘officer’’ and the
proviso and inserting a period;
(2) by amending the second sentence—
(A) by striking out ‘‘, preliminary or otherwise,’’, and
(B) by inserting ‘‘, electronically pursuant to an author-
ized electronic data interchange system or otherwise,’’ after
‘‘may issue a permit’’;
(3) by striking out the last sentence and inserting the
following: ‘‘The owner or master of any vessel or vehicle, or
agent thereof, shall notify the Customs Service of any merchan-
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H. R. 3450—156
dise or baggage so unladen for which entry is not made within
the time prescribed by law or regulation. The Secretary shall
by regulation prescribe administrative penalties not to exceed
$1,000 for each bill of lading for which notice is not given.
Any such administrative penalty shall be subject to mitigation
and remittance under section 618. Such unentered merchandise
or baggage shall be the responsibility of the master or person
in charge of the importing vessel or vehicle, or agent thereof,
until it is removed from the carrier’s control in accordance
with section 490.’’; and
(4) by striking out ‘‘the appropriate customs officer’’ and
‘‘such customs officer’’ wherever they appear and inserting ‘‘the
Customs Service’’.
SEC. 657. DECLARATIONS.
Section 485 (19 U.S.C. 1485) is amended—
(1) by amending subsection (a)—
(A) by inserting ‘‘or transmit electronically’’ after ‘‘file’’,
and
(B) by inserting ‘‘and manner’’ after ‘‘form’’;
(2) by amending subsection (d)—
(A) by striking out ‘‘A importer’’ and inserting ‘‘An
importer’’, and
(B) by striking out ‘‘a importer’’ and inserting ‘‘an
importer’’; and
(3) by inserting after subsection (f) the following new sub-
section:
‘‘(g) EXPORTED MERCHANDISE RETURNED AS UNDELIVERABLE.—
With respect to any importation of merchandise to which General
Headnote 4(e) of the Harmonized Tariff Schedule of the United
States applies, any person who gained any benefit from, or met
any obligation to, the United States as a result of the prior expor-
tation of such merchandise shall, in accordance with regulations
prescribed by the Secretary, within a reasonable time inform the
Customs Service of the return of the merchandise.’’.
SEC. 658. GENERAL ORDERS.
Section 490 (19 U.S.C. 1490) is amended—
(1) by amending subsection (a) to read as follows:
‘‘(a) INCOMPLETE ENTRY.—
‘‘(1) Whenever—
‘‘(A) the entry of any imported merchandise is not
made within the time provided by law or by regulation
prescribed by the Secretary;
‘‘(B) the entry of imported merchandise is incomplete
because of failure to pay the estimated duties, fees, or
interest;
‘‘(C) in the opinion of the Customs Service, the entry
of imported merchandise cannot be made for want of proper
documents or other cause; or
‘‘(D) the Customs Service believes that any merchan-
dise is not correctly and legally invoiced;
the carrier (unless subject to subsection (c)) shall notify the
bonded warehouse of such unentered merchandise.
‘‘(2) After notification under paragraph (1), the bonded
warehouse shall arrange for the transportation and storage
of the merchandise at the risk and expense of the consignee.
The merchandise shall remain in the bonded warehouse until—
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H. R. 3450—157
‘‘(A) entry is made or completed and the proper docu-
ments are produced;
‘‘(B) the information and data necessary for entry are
transmitted to the Customs Service pursuant to an author-
ized electronic data interchange system; or
‘‘(C) a bond is given for the production of documents
or the transmittal of data.’’;
(2) by amending subsection (b)—
(A) by amending the heading for subsection (b) to read
as follows:
‘‘(b) REQUEST FOR POSSESSION BY CUSTOMS.—’’, and
(B) by striking out ‘‘appropriate customs officer’’ and
inserting ‘‘Customs Service’’; and
(3) by adding at the end the following new subsection:
‘‘(c) GOVERNMENT MERCHANDISE.—Any imported merchandise
that—
‘‘(1) is described in any of paragraphs (1) through (4) of
subsection (a); and
‘‘(2) is consigned to, or owned by, the United States Govern-
ment;
shall be stored and disposed of in accordance with such rules
and procedures as the Secretary shall by regulation prescribe.’’.
SEC. 659. UNCLAIMED MERCHANDISE.
Section 491 (19 U.S.C. 1491) is amended—
(1) by amending subsection (a)—
(A) by striking out ‘‘customs custody for one year’’
in the first sentence and inserting ‘‘in a bonded warehouse
pursuant to section 490 for 6 months’’,
(B) by striking out ‘‘public store or bonded warehouse
for a period of one year’’ in the second sentence and insert-
ing ‘‘pursuant to section 490 in a bonded warehouse for
6 months’’,
(C) by striking out ‘‘estimated duties and storage’’ in
the first sentence and inserting ‘‘estimated duties, taxes,
fees, interest, storage,’’,
(D) by inserting ‘‘taxes, fees, interest,’’ after ‘‘duties,’’
wherever it appears, and
(E) by striking out ‘‘duties’’ in the last sentence and
inserting ‘‘duties, taxes, interest, and fees’’; and
(2) by redesignating subsection (b) as subsection (e) and
inserting after subsection (a) the following new subsections:
‘‘(b) NOTICE OF TITLE VESTING IN THE UNITED STATES.—At
the end of the 6-month period referred to in subsection (a), the
Customs Service may, in lieu of sale of the merchandise, provide
notice to all known interested parties that the title to such merchan-
dise shall be considered to vest in the United States free and
clear of any liens or encumbrances, on the 30th day after the
date of the notice unless, before such 30th day—
‘‘(1) the subject merchandise is entered or withdrawn for
consumption; and
‘‘(2) payment is made of all duties, taxes, fees, transfer
and storage charges, and other expenses that may have accrued
thereon.
‘‘(c) RETENTION, TRANSFER, DESTRUCTION, OR OTHER DISPOSI-
TION.—If title to any merchandise vests in the United States by
operation of subsection (b), such merchandise may be retained
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H. R. 3450—158
by the Customs Service for official use, transferred to any other
Federal agency or to any State or local agency, destroyed, or other-
wise disposed of in accordance with such regulations as the Sec-
retary shall prescribe. All transfer and storage charges or expenses
accruing on retained or transferred merchandise shall be paid by
the receiving agency.
‘‘(d) PETITION.—Whenever any party, having lost a substantial
interest in merchandise by virtue of title vesting in the United
States under subsection (b), can establish such title or interest
to the satisfaction of the Secretary within 30 days after the day
on which title vests in the United States under subsection (b),
or can establish to the satisfaction of the Secretary that the party
did not receive notice under subsection (b), the Secretary may,
upon receipt of a timely and proper petition and upon finding
that the facts and circumstances warrant, pay such party out of
the Treasury of the United States the amount the Secretary believes
the party would have received under section 493 had the merchan-
dise been sold and a proper claim filed. The decision of the Secretary
with respect to any such petition is final and conclusive on all
parties.’’; and
(3) by amending subsection (e) (as so redesignated) by
striking out ‘‘appropriate customs officer’’ in paragraph (3) and
inserting ‘‘Customs Service’’.
SEC. 660. DESTRUCTION OF MERCHANDISE.
Section 492 (19 U.S.C. 1492) is amended—
(1) by inserting ‘‘, retained for official use, or otherwise
disposed of’’ after ‘‘destroyed’’; and
(2) by striking out ‘‘appropriate customs officer’’ and insert-
ing ‘‘Customs Service’’.
SEC. 661. PROCEEDS OF SALE.
Section 493 (19 U.S.C. 1493) is amended—
(1) by inserting ‘‘taxes, and fees,’’ after ‘‘duties,’’;
(2) by striking out ‘‘by the appropriate customs officer’’;
and
(3) by striking out ‘‘such customs officer’’ and inserting
‘‘the Customs Service’’.
SEC. 662. ENTRY UNDER REGULATIONS.
Section 498(a) (19 U.S.C. 1498(a)) is amended—
(1) by amending paragraph (1) to read as follows:
‘‘(1) Merchandise, when—
‘‘(A) the aggregate value of the shipment does not
exceed an amount specified by the Secretary by regulation,
but not more than $2,500; or
‘‘(B) different commercial facilitation and risk consider-
ations that may vary for different classes or kinds of mer-
chandise or different classes of transactions may dictate;’’;
and
(2) by striking out ‘‘$10,000’’ in paragraph (2) and inserting
‘‘such amounts as the Secretary may prescribe’’.
SEC. 663. AMERICAN TRADEMARKS.
Section 526(e)(3) (19 U.S.C. 1526(e)(3)) is amended—
(1) by striking out ‘‘1 year’’ and inserting ‘‘90 days’’; and
(2) by striking out ‘‘appropriate customs officers’’ and insert-
ing ‘‘the Customs Service’’.
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