1

$ 59.1 Importation prohibited; exceptions. (a) Section 33 of the Surplus Property Act of 1944 (58 Stat. 782) ' prohibits, to the extent specified in regulations prescribed by the Surplus Property Board, the importation of surplus Government property sold abroad or for export. The regulations promulgated by that Board (Title 32, Part 8508) provide in part as follows:

§ 8508.15 Importations into the United States. Surplus property which has been sold in foreign areas shall not be imported in the United States in the same or substantially the same form in which it was exported from the United States if such property was originally produced in the United States and is readily identifiable as such, except to the extent that the Secretary of State specifically authorizes such importa

1SEC. 33. (a) It is the policy of this Act to prohibit, so far as feasible and necessary to carry out the objectives of this Act, the importation into the United States of surplus property sold abroad or for export. The Board shall prescribe regulations to carry out such policy, and the importation of surplus property into the United States is hereby prohibited to the extent specified in such regulations. The Secretary of the Treasury is authorized and directed to provide for the enforcement of such regulations.

(b) Surplus property sold to members of the armed forces abroad may be brought into the United States without regard to the provisions of subsection (a) if brought in by the original purchaser and upon certificate by him that he is bringing the property into the United States for his personal use.

An act approved September 18, 1945 (59 Stat. 533; 50 app. U. S. C. 1614a), established within the Office of War Mobilization and Reconversion the Surplus Property Administration and abolished the Surplus Property Board. Executive Order 9689 of February 1, 1946 (3 CFR, 1946 Supp.) merged the domestic functions of the Surplus Property Administration into the War Assets Corporation under the Reconstruction Finance Corporation. Foreign functions were transferred to the Department of State. These transfers were made permanent by Part V of the President's Reorganization Plan No. 1 of 1947, effective July 1, 1947. (3 CFR, 1947 Supp.)

tions by order issued hereunder: ' Provided, however, That the prohibition of this section shall not apply to prevent the importation of such property (a) for the purpose of reconditioning for re-export, or (b) by a veteran (or a member of the armed forces) upon certification by him that the importation is being made for his personal use, or (c) if sold primarily for and imported for use as scrap metal and the importer furnishes an undertaking in a form and an amount to be prescribed by the Treasury Department to insure that none of the property will be diverted from use as scrap metal; Provided further, That for the purpose of this section, foreign areas shall not include Guam or other Pacific insular possessions. Nothing in this section shall prevent surplus property which is owned by a Government agency from being brought into the continental United States, its territories or possessions.

(b) Customs officers shall exclude from entry, except as provided for in paragraphs (c), (d), and (e) of this section, any article arriving in the United States which is readily identifiable as being:

(1) Of the growth, produce, or manufacture of the United States, and

(2) Surplus property, as defined in the Surplus Property Act of 1944 and regulations thereunder, which was sold abroad.

SEC. 3. (d) The term "property" means any interest, owned by the United States or any Government agency, in real or personal property, of any kind wherever located, but does not include (1) the public domain, or such lands withdrawn or reserved from the public domain as the Surplus Property Board (created by section 5) determines are suitable for return to the public domain for disposition under the general land laws, or (2) naval vessels of the following categories: Battleships, cruisers, aircraft carriers, destroyers, and submarines.

(e) The term "surplus property" means any property which has been determined to be surplus to the needs and responsibilities of the owning agency in accordance with section 11.

(Sec. 3 (d) and (e), Surplus Property Act of 1944)

'Formerly Part 8308 of Chapter XXIII, Title 32; redesignated Part 8508 by Foreign Liquidation Commission Regulation 8, Order 6, effective Sept. 18, 1946 (11 F. R. 10709); revised Oct. 30, 1946, effective Nov. 9, 1946 (11 F. R. 13423) and Aug. 28, 1947, effective Sept. 9, 1947 (12 F. R. 5964); and amended Feb. 5, 1948, effective Feb. 11, 1948 (13 F. R. 614).

The Secretary of State upon the request of the Office of the President has exempted from the prohibition of this section certain property found by the Office of the President to be needed for reconversion in the United States. The items presently exempted are listed in Schedule A of Order 6 under this part, Dec. 30, 1947 (12 F. R. 8868).

(c) No article shall be excluded from entry under paragraph (b) of this section if there is filed in connection with the entry a certificate of the member of the armed forces by whom or for whose account the merchandise is imported that he purchased it while he was a member of the armed forces of the United States abroad and that it is for his personal or household use and was not bought on commission and is not intended for sale.

(d) No article shall be excluded from entry under paragraph (b) of this section if there are filed in connection with the entry a certificate of the importer that the importation is being made by a person or firm in the United States for the purpose of reconditioning for re-export and the regular immediate delivery and consumption entry bond (single entry), customs Form 7551, or warehouse entry bond, customs Form 7555, with the added condition set out below.

The amount of the bond, as prescribed in Part 25 of this chapter, shall be increased by an amount equal to the value of the merchandise, as set forth in the entry, in order to provide adequate security for the performance of the obligations outlined in the added condition.

For failure to comply with the added condition, the collector shall demand in writing the payment of liquidated damages in an amount equal to the value of the entire shipment, as set forth in the entry. Such demand shall be in addition to any other payment provided for under any other provision of law and regulation. The written demand shall include a statement that a written application for relief from the payment of the full liquidated damages may be filed with the collector within 60 days after the date of the demand.

The added condition referred to above shall be in the following form:

There is incorporated in and made a part of the bond No... ----, dated in the amount of

of law and regulations pertaining to the entry and exportation of merchandise, all the above-described merchandise for customs inspection and identification prior to exportation; and if all the merchandise shall be actually so exported within one year from the date of importation, or within any lawful extension of such period, and if the said merchandise shall not be relanded in the United States; or, in default thereof, the obligors shall pay to the collector of customs such amounts as liquidated damages as may be demanded by him in accordance with the law and regulations, not exceeding the amount of this obligation,

Then this added condition shall be void; otherwise to remain in full force and effect.

(e) No article shall be excluded from entry under paragraph (b) of this section if there is filed in connection with the entry a certificate of an authorized representative of a Government agency that the property is owned by such Government agency at the time of importation.

(f) Within 30 days after importation any article which is excluded from entry as surplus property may be entered in bond for exportation, or for transportation and exportation, from continuous customs custody.

(g) Any article which is excluded from entry under this section shall be seized and forfeited pursuant to section 593 (b), Tariff Act of 1930, unless entered in bond within 30 days after importation for expoi tation, or for transportation and exportation, and exported within a reasonable time thereafter.

§ 59.2 Proof of use as scrap metal. (a) Surplus Government property produced in the United States and sold in foreign areas which is in the same or substantially the same form in which it was exported from the United States, and is readily identifiable as such, is permitted entry into the country by Federal Liquidation Commissioner's Regulation 8, Amendment 2 (32 CFR 8508.15) (see § 59.1), if sold abroad primarily for and imported for use as scrap metal and the importer furnishes an undertaking in a form and an amount prescribed by the Treasury Department to insure that none of the property will be diverted from use as scrap metal. An importer bringing in merchandise under that regulation shall file with the collector of customs a regular immediate delivery and consumption entry bound (single entry), customs Form 7551, in an amount equal to three times the value of the merchandise, and

containing the following added condition:

There is incorporated in and made a part of the bond No. dated in the amount of

executed by

as principal, and as surety, the following added condition: Whereas, the principal named in said bond has been permitted to enter merchandise subject to the provisions of the Surplus Property Act of 1944, for use as scrap metal; The obligors named in the said bond stipulate and agree that all the above-described merchandise shall be used as scrap metal within 1 year from the date of importation of said merchandise, or within any lawful extension of that period, except such portions of the merchandise as are not usable as scrap metal because of their nonmetallic character; that portions of the said merchandise which are not usable as scrap metal because of their nonmetallic character shall be destroyed or so changed in condition within 1 year from the date of importation, or any lawful extension of that period, that they shall be no longer the same or substantially the same articles which were produced in the United States and are not readily identifiable as such articles; that the obligors shall produce to the collector of customs within 15 months after the date of importation of the said merchandise, or within any lawful extension of that period, satisfactory proof showing that the said merchandise was used as scrap metal, or if not usable for that purpose, was destroyed or changed in condition to the extent specified herein, within the periods prescribed; and that if the said merchandise is used, destroyed, or changed in condition, and the proof of such action is produced, as agreed; or, in default thereof, the obligors shall pay

to the collector of customs such amounts as liquidated damages as may be demanded by him, not exceeding the amount of this obligation;

Then this added condition shall be void; otherwise, it shall remain in full force and effect.

(b) Upon failure to comply with the added condition, the collector shall demand in writing the payment of liquidated damages in the full amount of the bond. The demand shall contain a statement that a written application for relief from the payment of the full amount of the damages may be filed with the collector within 60 days after the date of the demand.

(c) Affidavits of managers or superintendents of plants or scrap yards having knowledge of the facts required to be proved under the added condition in the bond may be accepted as proof of the use or disposition made of the merchandise.

(d) The collector may grant not more than two extensions of 6 months each in connection with any period prescribed in the added condition in the bond within which an act is to be performed, provided a written application therefor is filed with him before the expiration of the period concerned. Applications not received within the time prescribed, or for extensions in addition to the two authorized in connection with a specific period shall be forwarded to the Bureau of Customs for consideration.