Source: http://law2.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section81c&num=0&edition=prelim
Timestamp: 2019-07-17 03:21:04
Document Index: 478931122

Matched Legal Cases: ['§ 81', '§81', '§3', '§1', '§309', '§231', '§1894', '§1783', '§204', '§9002', '§481', '§203', '§31', '§1001', '§203', '§1202', '§101', '§2', '§1807', '§5701', '§4591', '§4811', '§4831', '§4701', '§4801', '§4181', '§5001', '§4501', '§107', '§481', '§484', '§31', '§485', '§231']

[USC02] 19 USC 81c: Exemption from customs laws of merchandise brought into foreign trade zone
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19 USC 81c: Exemption from customs laws of merchandise brought into foreign trade zone Text contains those laws in effect on July 15, 2019
§81c. Exemption from customs laws of merchandise brought into foreign trade zone
(a) Handling of merchandise in zone; shipment of foreign merchandise into customs territory; appraisal; reshipment to zone
Foreign and domestic merchandise of every description, except such as is prohibited by law, may, without being subject to the customs laws of the United States, except as otherwise provided in this chapter, be brought into a zone and may be stored, sold, exhibited, broken up, repacked, assembled, distributed, sorted, graded, cleaned, mixed with foreign or domestic merchandise, or otherwise manipulated, or be manufactured except as otherwise provided in this chapter, and be exported, destroyed, or sent into customs territory of the United States therefrom, in the original package or otherwise; but when foreign merchandise is so sent from a zone into customs territory of the United States it shall be subject to the laws and regulations of the United States affecting imported merchandise: Provided, That whenever the privilege shall be requested and there has been no manipulation or manufacture effecting a change in tariff classification, the appropriate customs officer shall take under supervision any lot or part of a lot of foreign merchandise in a zone, cause it to be appraised and taxes determined and duties liquidated thereon. Merchandise so taken under supervision may be stored, manipulated, or manufactured under the supervision and regulations prescribed by the Secretary of the Treasury, and whether mixed or manufactured with domestic merchandise or not may, under regulations prescribed by the Secretary of the Treasury, be exported or destroyed, or may be sent into customs territory upon the payment of such liquidated duties and determined taxes thereon. If merchandise so taken under supervision has been manipulated or manufactured, such duties and taxes shall be payable on the quantity of such foreign merchandise used in the manipulation or manufacture of the entered article. Allowance shall be made for recoverable and irrecoverable waste; and if recoverable waste is sent into customs territory, it shall be dutiable and taxable in its condition and quantity and at its weight at the time of entry. Where two or more products result from the manipulation or manufacture of merchandise in a zone the liquidated duties and determined taxes shall be distributed to the several products in accordance with their relative value at the time of separation with due allowance for waste as provided for above: Provided further, That subject to such regulations respecting identity and the safeguarding of the revenue as the Secretary of the Treasury may deem necessary, articles, the growth, product, or manufacture of the United States, on which all internal-revenue taxes have been paid, if subject thereto, and articles previously imported on which duty and/or tax has been paid, or which have been admitted free of duty and tax, may be taken into a zone from the customs territory of the United States, placed under the supervision of the appropriate customs officer, and whether or not they have been combined with or made part, while in such zone, of other articles, may be brought back thereto free of quotas, duty, or tax: Provided further, That if in the opinion of the Secretary of the Treasury their identity has been lost, such articles not entitled to free entry by reason of noncompliance with the requirements made hereunder by the Secretary of the Treasury shall be treated when they reenter customs territory of the United States as foreign merchandise under the provisions of the tariff and internal-revenue laws in force at that time: Provided further, That under the rules and regulations of the controlling Federal agencies, articles which have been taken into a zone from customs territory for the sole purpose of exportation, destruction (except destruction of distilled spirits, wines, and fermented malt liquors), or storage shall be considered to be exported for the purpose of-
(2) the statutes and bonds exacted for the payment of draw-back, refund, or exemption from liability for internal-revenue taxes and for the purposes of the internal-revenue laws generally and the regulations thereunder.
The exemption from the customs laws of the United States provided under subsection (a) shall not be available on or before December 31, 1992, to bicycle component parts unless such parts are reexported from the United States, whether in the original package, as components of a completely assembled bicycle, or otherwise.
(1) Notwithstanding the provisions of the fifth proviso of subsection (a), any article (within the meaning of section 5002(a)(14) of title 26) may be manufactured or produced from denatured distilled spirits which have been withdrawn free of tax from a distilled spirits plant (within the meaning of section 5002(a)(1) of title 26), and articles thereof, in a zone.
(2) Notwithstanding the provisions of the fifth proviso of subsection (a), distilled spirits which have been removed from a distilled spirits plant (as defined in section 5002(a)(1) of title 26) upon payment or determination of tax may be used in the manufacture or production of medicines, medicinal preparation, food products, flavors, or flavoring extracts, which are unfit for beverage purposes, in a zone. Such products will be eligible for drawback under the internal revenue laws under the same conditions applicable to similar manufacturing or production operations occurring in customs territory.
For purposes of this subsection, the term "foreign trade zone" includes a subzone.
(June 18, 1934, ch. 590, §3, 48 Stat. 999 ; June 17, 1950, ch. 296, §1, 64 Stat. 246 ; Pub. L. 91–271, title III, §309, June 2, 1970, 84 Stat. 292 ; Pub. L. 98–573, title II, §231(a)(2), Oct. 30, 1984, 98 Stat. 2990 ; Pub. L. 99–514, title XVIII, §1894, Oct. 22, 1986, 100 Stat. 2931 ; Pub. L. 100–418, title I, §1783(f), Aug. 23, 1988, 102 Stat. 1300 ; Pub. L. 100–449, title II, §204(c)(5), Sept. 28, 1988, 102 Stat. 1863 ; Pub. L. 100–647, title IX, §9002, Nov. 10, 1988, 102 Stat. 3808 ; Pub. L. 101–382, title III, §§481, 484F, Aug. 20, 1990, 104 Stat. 706 , 710; Pub. L. 103–182, title II, §203(b)(5), Dec. 8, 1993, 107 Stat. 2091 ; Pub. L. 104–295, §31(a), Oct. 11, 1996, 110 Stat. 3536 ; Pub. L. 106–36, title I, §1001(b)(2), June 25, 1999, 113 Stat. 131 ; Pub. L. 108–77, title II, §203(b)(5), Sept. 3, 2003, 117 Stat. 929 .)
The Tariff Act of 1930, referred to in subsec. (a)(1), is act June 17, 1930, ch. 497, 46 Stat. 590 , which is classified generally to chapter 4 (§1202 et seq.) of this title. For complete classification of this Act to the Code, see Tables.
Sections 1001 and 1201 of this title, referred to in subsec. (a), which comprised the dutiable and free lists for articles imported into the United States, were repealed by Pub. L. 87–456, title I, §101(a), May 24, 1962, 76 Stat. 72 , which act also revised the Tariff Schedules of the United States. The Tariff Schedules of the United States were replaced by the Harmonized Tariff Schedule of the United States which is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under section 1202 of this title.
References in subsec. (a) to section and chapters of the Internal Revenue Code are references to section and chapters of the Internal Revenue Code, 1939, which was repealed by section 7851 of Title 26, I.R.C. 1954. The Internal Revenue Code of 1954 was redesignated the Internal Revenue Code of 1986 by Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095 . Corresponding sections of I.R.C. 1986 to section and chapters of I.R.C. 1939 referred to in the text are set out below. For provision deeming a reference in other laws to a provision of I.R.C. 1939, also as a reference to corresponding provision of I.R.C. 1986, see section 7852(b) of Title 26, I.R.C. 1986.
§1807 Omitted
Chapter 15 §5701 et seq.
Chapter 16 §4591 et seq., §4811 et seq.
Chapter 17 §4831 et seq.
Chapter 21 Omitted
Chapter 23 §4701 et seq.
Chapter 24 §4801 et seq.
Chapter 25 §§4181, 4182, and 5811 et seq.
Chapter 26 §5001 et seq.
Chapter 32 §4501 et seq.
2003-Subsec. (a). Pub. L. 108–77, §§107(c), 203(b)(5), temporarily inserted before period at end "Provided further, That no merchandise that consists of goods subject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, that is manufactured or otherwise changed in condition shall be exported to Chile without an assessment of a duty on the merchandise in its condition and quantity, and at its weight, at the time of its exportation (or if the privilege in the first proviso to this subsection was requested, an assessment of a duty on the merchandise in its condition and quantity, and at its weight, at the time of its admission into the zone) and the payment of the assessed duty before the 61st day after the date of exportation of the article, except that the customs duty may be waived or reduced by (1) 100 percent during the 8-year period beginning on January 1, 2004; (2) 75 percent during the 1-year period beginning on January 1, 2012; (3) 50 percent during the 1-year period beginning on January 1, 2013; and (4) 25 percent during the 1-year period beginning on January 1, 2014". See Effective and Termination Dates of 2003 Amendment note below.
1999-Subsec. (a). Pub. L. 106–36 struck out second period at end of last sentence.
1996-Subsec. (e). Pub. L. 104–295 added subsec. (e).
1993-Subsec. (a). Pub. L. 103–182, in provisions following par. (2), inserted second proviso relating to goods subject to NAFTA drawback, and in last proviso inserted ", if Canada ceases to be a NAFTA country and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter terminates," after "That" and substituted "during the period such Agreement is in operation" for "on or after January 1, 1994, or such later date as may be proclaimed by the President under section 204(b)(2)(B) of such Act of 1988,".
1990-Subsec. (b). Pub. L. 101–382, §481, substituted "on or before December 31, 1992" for "before January 1, 1991".
Subsec. (c). Pub. L. 101–382, §484F, designated existing provisions as par. (1), struck out "domestic" before "denatured distilled", inserted provisions relating to withdrawal free of tax from a distilled spirits plant, and added par. (2).
1988-Subsec. (a). Pub. L. 100–449 temporarily inserted provision directing that, "with the exception of drawback eligible goods under section 204(a) of the United States-Canada Free-Trade Agreement Implementation Act of 1988, no article manufactured or otherwise changed in condition (except a change by cleaning, testing or repacking) shall be exported to Canada on or after January 1, 1994, or such later date as may be proclaimed by the President under section 204(b)(2)(B) of such Act of 1988, without the payment of a duty that shall be payable on the article in its condition and quantity, and at its weight, at the time of its exportation to Canada unless the privilege in the first proviso to this subsection was requested." See Effective and Termination Dates of 1988 Amendment note below.
Subsec. (b). Pub. L. 100–418 substituted "January 1, 1991" for "June 30, 1986".
1986-Subsec. (c). Pub. L. 99–514 added subsec. (c).
1984-Subsec. (a). Pub. L. 98–573 designated existing provisions as subsec. (a), redesignated former pars. (a) and (b) as pars. (1) and (2), respectively, of subsec. (a), and added subsec. (b).
1970-Pub. L. 91–271 substituted references to the appropriate customs officers for references to the collector of customs wherever appearing.
1950-Act June 17, 1950, amended section generally to remove the prohibition against, and to authorize specifically, manufacture and exhibition within a zone.
Pub. L. 104–295, §31(b), Oct. 11, 1996, 110 Stat. 3537 , provided that: "The amendment made by this section [amending this section] shall apply with respect to merchandise admitted into a foreign trade zone after the date that is 15 days after the date of the enactment of this Act [Oct. 11, 1996]."
Pub. L. 101–382, title III, §485(a), Aug. 20, 1990, 104 Stat. 712 , provided that: "Except as otherwise provided in this title, the amendments made by this title [amending this section and sections 1309, 1313, 1466, and 1553 of this title and enacting provisions set out as notes under sections 1309, 1466, and 1553 of this title], shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after October 1, 1990."
Pub. L. 98–573, title II, §231(a)(3), Oct. 30, 1984, 98 Stat. 2990 , provided that: "The amendments made by paragraph (2) [amending this section] shall take effect on the fifteenth day after the date of the enactment of this Act [Oct. 30, 1984]."