§1491 Unclaimed merchandise; disposition of forfeited distilled spirits, wines and malt liquor

Summary

If imported goods stay in a bonded warehouse for 6 months and the duties, taxes, fees, interest, storage, or other charges are not paid, Customs treats them as unclaimed and gives ownership to the United States. Customs will appraise and sell those goods at public auction under Treasury rules. Goods entered under section 1557 are not covered, but goods entered for transportation in bond or for export are covered. Explosives, gunpowder, and items that will quickly lose value may be sold right away. The owner can remove the goods for consumption or re‑enter them before the sale if they pay all charges and expenses that have accrued. Once the goods become subject to sale, they cannot be exported or put back into warehouse without paying those charges. Charges are figured at the rates in effect when the goods become subject to sale. Instead of selling, Customs may give notice that ownership will pass to the United States 30 days after the notice unless the goods are entered or withdrawn and all charges are paid. If ownership does pass to the United States, Customs can keep, transfer, destroy, or otherwise dispose of the goods; any agency that receives them must pay transfer and storage costs. A party who lost a substantial interest can petition within 30 days; the Secretary may pay that person what they would have received if the goods had been sold, and the Secretary’s decision is final. For distilled spirits, wines, and malt liquor that are forfeited to the Government, Customs will appraise them and then either give them to government agencies that need them for official uses, give them to certain charities for medical uses, sell them at public auction if no agency or charity needs them, or destroy them.