Art. 771. Order of appraisement-Designation of packages for examination-(a) Tariff act of 1930, section 488:

The collector within whose district any merchandise is entered shall cause such merchandise to be appraised.

Customs Form 6417 with the invoice attached shall be deemed the order of appraisement.

(b) Tariff act of 1930, section 499:

The collector shall designate the packages or quantities covered by any invoice or entry which are to be opened and examined for the purpose of appraisement or otherwise and shall order such packages or quantities to be sent to the public stores or other places for such purpose. Not less than one package of every invoice and not less than one package of every ten packages of merchandise, shall be so designated unless the Secretary of the Treasury, from the character and description of the merchandise, 120950°-32-31

471

T. Ds. 33230, 33249, 37278, 39879

T. D. 37128.

T. D. 42290.

is of the opinion that the examination of a less proportion of packages will amply protect the revenue and by special regulation permit a less number of packages to be examined. The collector or the appraiser may require such additional packages or quantities as either of them may deem necessary. *

*

Art. 772. Examination of merchandise-Procedure.(a) The appraiser shall cause to be examined all merchandise designated by the collector and such additional quantities, packages, or parts thereof as he may deem necessary. Such merchandise, except matches and other inflammable, explosive, and dangerous articles, shall be examined at the public stores, but with the consent of the appraiser any merchandise for which formal entry has been made, the examination of which at the public stores is impracticable, may be examined on the wharf or at the importer's premises or other suitable place.

(b) When upon the request of the importer merchandise is examined elsewhere than at the public stores, or at a place other than a port of entry or a customs station at which a customs officer is permanently located, the additional expense, if any, shall be paid by such importer. The expenses chargeable to the importer in such cases shall include actual expenses of travel and subsistence, but not the per diem compensation of the examining officer.

(c) Before granting permission for such examination the collector shall require the importer to execute a bond on customs Form 7551 or 7553 for the redelivery of the merchandise and to stipulate that he will not contest the validity of the appraisement because examination is made elsewhere than at the public stores, and may require the importer to deposit an amount sufficient to cover the additional expense of such examination.

(d) The packages before being removed from the place of unlading, shall be corded and sealed by a customs officer, a caution notice, customs Form 6087, shall be securely affixed thereto, and the packages shall be opened only in the presence of the appraiser, assistant appraiser, examiner, or other person designated by the appraiser, and shall be opened and closed by labor furnished by the importer.

(e) Merchandise entered free of duty which is found on examination to be dutiable, shall be immediately recorded and resealed by a customs officer and, unless the estimated duties are promptly deposited, the col

lector shall order the merchandise redelivered to customs custody, there to be held in the same manner as other dutiable merchandise pending final action.

Machinery, altars, shrines, and other articles T. D. 42002. which must be set up and assembled prior to examination, may, upon application by the importer or owner, be examined and appraised at the mill, factory, or other suitable place, after being set up or assembled. In such cases the filing of a bond on customs Form 7551 or 7553 and the deposit of the estimated additional expense (except the per diem compensation of the examining officer, which is not exacted in such cases) shall be required, as well as the stipulation not to contest the validity of the appraisement. The packages need not be corded and sealed, but the appraiser shall make such preliminary examination as may be necessary to identify the merchandise with the invoice. After the bond has been filed and the preliminary examination has been made, the collector may release the packages to the importer. Within 90 days after the issuance of the delivery permit, unless an extension has been applied for and granted by the collector or appraiser, the importer must notify the collector or appraiser that the machinery or other articles have been set up or assembled and are ready for examination, whereupon final examination shall be made and the appraisement completed.

(g) Matches and other inflammable, explosive, and dangerous articles shall be examined at the importer's premises or other suitable place, but not at the public stores.

33907.

(h) When examination is made elsewhere than at the public stores, the appraiser shall state the fact and place of such examination in his report of the appraisement. (i) The appraiser, at ports where there is no technical T. Ds. 33823, analyst, should submit to the nearest port at which such an officer is located, samples of all articles requiring technical analysis, such as textile fabrics, chemicals, minerals, etc., for a report as to any facts necessary to proper classification and appraisement of such articles.

(j) When additional cases are desired for examination, requisition for redelivery shall be made on customs Form 3483, mailed or sent by special messenger to the importer.

Art. 773. Appraisement on samples.-(a) The appraiser may make appraisement on samples of such merchandise as is, by commercial usage, bought and sold by sample.

T. D. 36087.

(b) Representative samples shall be selected by a customs sampler, or other authorized customs officer, from the merchandise or packages designated by the collector for examination, and shall be properly marked to insure identification, and retained as long as the appraiser shall deem it necessary.

(c) Should the appraiser require for the purpose of appraisement samples from packages not designated for examination, he may request the importer to submit the same under oath that such samples were drawn from a specified case or cases covered by the invoice and that they are in the same condition as when drawn.

Art. 774. Duties of appraising officers.-(a) Tariff act of 1930, section 500 (a):

(a) APPRAISER.-It shall be the duty of the appraiser under such rules and regulations as the Secretary of the Treasury may prescribe

(1) To appraise the merchandise in the unit of quantity in which the merchandise is usually bought and sold by ascertaining or estimating the value thereof by all reasonable ways and means in his power, any statement of cost or cost of production in any invoice, affidavit, declaration, or other document to the contrary notwithstanding;

(2) To ascertain the number of yards, parcels, or quantities of the merchandise ordered or designated for examination; (3) To ascertain whether the merchandise has been truly and correctly invoiced;

(4) To describe the merchandise in order that the collector may determine the dutiable classification thereof; and

(5) To report his decisions to the collector.

(b) Tariff act of 1930, section 499:

* * * If any package is found by the appraiser to contain any article not specified in the invoice and he reports to the collector that in his opinion such article was omitted from the invoice with fraudulent intent on the part of the seller, shipper, owner, or agent, the contents of the entire package in which such article is found shall be liable to seizure, but if the appraiser reports that no such fraudulent intent is apparent then the value of said article shall be added to the entry and the duties thereon paid accordingly. If a deficiency is found in quantity, weight, or measure in the examination of any package, report thereof shall be made to the collector.

* * *

(c) Appraisers shall include in their returns on invoices, customs Form 6417, a report as to the correctness of the invoice upon which entry was made. If they find the merchandise correctly invoiced, they will return "invoice correct." If they find the invoice incorrect either as to prices or values stated, entered rates, or as to the form of invoice, they shall return "invoice incorrect in the following respects," specifying the particulars, and shall hold the examination packages until released by the collector. (d) They shall report all prohibited articles found in importations and hold the package in which found pending the receipt of instructions from the collector.

Art. 775. Unusual coverings and containers.-(a) Tariff act of 1930, section 504:

If there shall be used for covering or holding imported merchandise, whether dutiable or free of duty, any unusual material, article, or form designed for use otherwise than in the bona fide transportation of such merchandise to the United States, additional duties shall be levied upon such material, article, or form at the rate or rates to which the same would be subjected if separately imported.

(b) The appraiser shall report any unusual coverings and containers in such descriptive terms as will enable the collector to properly classify the same for duty.

Art. 776. Value.-Tariff act of 1930, section 402:

(a) BASIS.-For the purposes of this act the value of imported merchandise shall be

(1) The foreign value or the export value, whichever is higher;

(2) If the appraiser determines that neither the foreign value nor the export value can be satisfactorily ascertained, then the United States value;

(3) If the appraiser determines that neither the foreign value, the export value, nor the United States value can be satisfactorily ascertained, then the cost of production;

(4) In the case of an article with respect to which there is in effect under section 336 a rate of duty based upon the American selling price of a domestic article, then the American selling price of such article.

*

(c) FOREIGN VALUE.-The foreign value of imported merchandise shall be the market value or the price at the time of exportation of such merchandise to the Uuited States, at which such or similar merchandise is freely offered for sale to all purchasers in the principal markets of the country from which exported, in the usual wholesale quantities and in the ordinary course of trade, including the cost of all containers and coverings of whatever nature, and all other costs, charges, and expenses incident to placing the merchandise in condition, packed ready for shipment to the United States.

(d) EXPORT VALUE.-The export value of imported merchandise shall be the market value or the price, at the time of exportation of such merchandise to the United States, at which such or similar merchandise is freely offered for sale to all purchasers in the principal markets of the country from which exported, in the usual wholesale quantities and in the ordinary course of trade, for exportation to the United States, plus, when not included in such price, the cost of all containers and coverings of whatever nature, and all other costs, charges, and expenses incident to placing the merchandise in condition, packed ready for shipment to the United States.

(e) UNITED STATES VALUE.-The United States value of imported merchandise shall be the price at which such or similar imported merchandise is freely offered for sale, packed ready for delivery, in the principal market of the United States to all purchasers, at the time of exportation of the imported merchandise, in the usual wholesale quantities and in the ordinary course of trade, with allowance made for duty, cost of transportation and insurance, and other necessary expenses from the place of shipment to the place of delivery, a commission not exceeding 6 per centum, if any had been paid or contracted to be paid on goods secured otherwise than by purchase, or profits not to exceed 8 per centum and a reasonable allowance for general expenses, not to exceed 8 per centum on purchased goods.