Title 19Customs DutiesRelease 119-73

§1562 Manipulation in warehouse

Title 19 › Chapter CHAPTER 4— - TARIFF ACT OF 1930 › Subtitle SUBTITLE III— - ADMINISTRATIVE PROVISIONS › Part Part IV— - Transportation in Bond and Warehousing of Merchandise › § 1562

Last updated Apr 6, 2026|Official source

Summary

Treasury rules say how much and in what condition goods can be taken out of a bonded warehouse. With the Treasury’s permission and customs watching, the warehouse owner can have goods cleaned, sorted, repacked, or otherwise changed in condition (but not made into new products). Such goods can be taken out duty-free or with special duty rules when they are exported to certain countries or sent to certain U.S. territories. If drawback rules apply, customs will first appraise the goods as they are when removed (including weight and any change in condition). Duty must be paid before the 61st day after export, unless proof of duties paid to the receiving country is shown before that 61st day; then the U.S. duty can be waived or reduced up to the lesser of the U.S. import duty or the duties paid abroad. Special duty-free rules also cover exports to certain U.S. territories and to Chile under a phased waiver schedule: 100% waived for the 8-year period starting January 1, 2004; 75% waived for the year starting January 1, 2012; 50% waived for the year starting January 1, 2013; and 25% waived for the year starting January 1, 2014. Definitions: USMCA country — see section 4502; USMCA drawback — defined in section 4534(a); Chile FTA drawback — defined in section 203(a).

Full Legal Text

Title 19, §1562

Customs Duties — Source: USLM XML via OLRC

Merchandise shall only be withdrawn from a bonded warehouse in such quantity and in such condition as the Secretary of the Treasury shall by regulation prescribe. Upon permission being granted by the Secretary of the Treasury, and under customs supervision, at the expense of the proprietor, merchandise may be cleaned, sorted, repacked, or otherwise changed in condition, but not manufactured, in bonded warehouses established for that purpose and be withdrawn therefrom—
(1)without payment of duties for exportation to a USMCA country, as defined in section 4502 of this title, if the merchandise is of a kind described in any of paragraphs (1) through (8) of section 4534(a) of this title;
(2)for exportation to a USMCA country if the merchandise consists of goods subject to USMCA drawback, as defined in section 4534(a) of this title, except that—
(A)the merchandise may not be withdrawn from warehouse without assessment of a duty on the merchandise in its condition and quantity, and at its weight, at the time of withdrawal from the warehouse with such additions to or deductions from the final appraised value as may be necessary by reason of change in condition, and
(B)duty shall be paid on the merchandise before the 61st day after the date of exportation, but upon the presentation, before such 61st day, of satisfactory evidence of the amount of any customs duties paid to the USMCA country on the merchandise, the customs duty may be waived or reduced (subject to section 4534(e) of this title) in an amount that does not exceed the lesser of—
(i)the total amount of customs duties paid or owed on the merchandise on importation into the United States, or
(ii)the total amount of customs duties paid on the merchandise to the USMCA country;
(3)without payment of duties for exportation to any foreign country other than to Chile, to a USMCA country, or to Canada when exports to that country are subject to paragraph (4);
(4)without payment of duties for exportation to Canada (if that country ceases to be a USMCA country and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter terminates), but the exemption from the payment of duties under this paragraph applies only in the case of an exportation during the period such Agreement is in operation of merchandise that—
(A)is only cleaned, sorted, or repacked in a bonded warehouse, or
(B)is a drawback eligible good under section 204(a) of the United States-Canada Free-Trade Agreement Implementation Act of 1988;
(5)without payment of duties for shipment to the Virgin Islands, American Samoa, Wake Island, Midway Island, Kingman Reef, Johnston Island or the island of Guam; and
(6)(A)without payment of duties for exportation to Chile, if the merchandise is of a kind described in any of paragraphs (1) through (5) of section 203(a) of the United States-Chile Free Trade Agreement Implementation Act; and
(B)for exportation to Chile if the merchandise consists of goods subject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, except that—
(i)the merchandise may not be withdrawn from warehouse without assessment of a duty on the merchandise in its condition and quantity, and at its weight, at the time of withdrawal from the warehouse with such additions to, or deductions from, the final appraised value as may be necessary by reason of a change in condition, and
(ii)duty shall be paid on the merchandise before the 61st day after the date of exportation, except that such duties may be waived or reduced by—
(I)100 percent during the 8-year period beginning on January 1, 2004,
(II)75 percent during the 1-year period beginning on January 1, 2012,
(III)50 percent during the 1-year period beginning on January 1, 2013, and
(IV)25 percent during the 1-year period beginning on January 1, 2014.

Legislative History

Notes & Related Subsidiaries

Amendment of SectionFor termination of amendment by section 107(c) of Pub. L. 108–77, see Effective and Termination Dates of 2003 Amendment note below. For termination of amendment by section 501(c) of Pub. L. 100–449, see Effective and Termination Dates of 1988 Amendment note below.

Editorial Notes

References in Text

section 204 of the United States-Canada Free-Trade Agreement Implementation Act of 1988, referred to in par. (4)(B), is section 204 of Pub. L. 100–449, which is set out in a note under section 2112 of this title. section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, referred to in par. (6), is section 203(a) of Pub. L. 108–77, which is set out in a note under section 3805 of this title.

Prior Provisions

Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, § 562, 42 Stat. 978. That section was superseded by section 562 of act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act.

Prior Provisions

substantially the same, in effect, as those in this section with respect to the quantity of merchandise which might be withdrawn, were contained in R.S. § 2980, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989.

Amendments

2020—Par. (1). Pub. L. 116–113, § 501(e)(4)(A), added par. (1) and struck out former par. (1) which read as follows: “without payment of duties for exportation to a NAFTA country, as defined in section 3301(4) of this title, if the merchandise is of a kind described in any of paragraphs (1) through (8) of section 3333(a) of this title;”. Par. (2). Pub. L. 116–113, § 501(e)(4)(B), substituted “section 4534(a) of this title” for “section 3333(a) of this title”, in introductory provisions, and “USMCA” for “NAFTA” wherever appearing. Par. (2)(B). Pub. L. 116–260 substituted “(subject to section 4534(e) of this title)” for “(subject to section 1508(b)(2)(B) of this title)” in introductory provisions. Pars. (3), (4). Pub. L. 116–113, § 501(e)(4)(C), substituted “USMCA” for “NAFTA” in two places. 2006—Pub. L. 109–280, in introductory provisions, substituted “Merchandise shall only be withdrawn from a bonded warehouse in such quantity and in such condition as the Secretary of the Treasury shall by regulation prescribe. Upon permission” for “Unless by special authority of the Secretary of the Treasury, no merchandise shall be withdrawn from bonded warehouse in less quantity than an entire bale, cask, box, or other package; or, if in bulk, in the entire quantity imported or in a quantity not less than one ton weight. All merchandise so withdrawn shall be withdrawn in the original packages in which imported unless, upon the application of the importer, it appears to be the appropriate customs officer that it is necessary to the safety or preservation of the merchandise to repack or transfer the same; except that upon permission therefor”. 2003—Par. (3). Pub. L. 108–77, §§ 107(c), 203(b)(4)(A), temporarily substituted “to Chile, to a NAFTA country,” for “to a NAFTA country”. See Effective and Termination Dates of 2003 Amendment note below. Par. (6). Pub. L. 108–77, §§ 107(c), 203(b)(4)(D), temporarily added par. (6). See Effective and Termination Dates of 2003 Amendment note below. 1993—Pub. L. 103–182 substituted “be withdrawn therefrom—” for “be withdrawn therefrom without payment of duties—” in second sentence, substituted “paragraph (4) of the preceding sentence” for “paragraph (1) of the preceding sentence” in third sentence, added pars. (1) to (5), and struck out former pars. (1) to (3) which read as follows: “(1) for exportation to Canada, but on or after
January 1, 1994, or such later date as may be proclaimed by the President under section 204(b)(2)(B) of the United States-Canada Free-Trade Agreement Implementation Act of 1988, such exemption from the payment of duties applies only in the case of the exportation to Canada of merchandise that— “(A) is only cleaned, sorted, or repacked in a bonded warehouse, or “(B) is a drawback eligible good under section 204(a) of such Act of 1988; “(2) for exportation to any foreign country except Canada; and “(3) for shipment to the Virgin Islands, American Samoa, Wake Island, Midway Island, Kingman Reef, Johnston Island or the island of Guam.” 1988—Pub. L. 100–449 temporarily substituted the except clause and following sentence for proviso at end of second section which read as follows: “: Provided, That upon permission therefor being granted by the Secretary of the Treasury, and under customs supervision, at the expense of the proprietor, merchandise may be cleaned, sorted, repacked, or otherwise changed in condition, but not manufactured, in bonded warehouses established for that purpose and be withdrawn therefrom for exportation to a foreign country or for shipment to the Virgin Islands, American Samoa, Wake Island, Midway Islands, Kingman Reef, Johnston Island, or the island of Guam, without payment of the duties, or for consumption, upon payment of the duties accruing thereon, in its condition and quantity, and at its weight, at the time of withdrawal from warehouse, with such additions to or deductions from the final appraised value as may be necessary by reason of change in condition.” See Effective and Termination Dates of 1988 Amendment note below. 1970—Pub. L. 91–271 substituted reference to appropriate customs officer for reference to collector. 1955—Act
June 30, 1955, inserted “Johnston Island”. 1953—Act Aug. 8, 1953, in third sentence struck out “the entered value or” after “consumption shall be”, “whichever is higher,” after “the adjusted final appraised value,”, and “; but for the purpose of the ascertainment and assessment of additional duties under section 1489 of this chapter adjustments of the final appraised value shall be disregarded” after “such adjusted final appraised value”. 1938—Act
June 25, 1938, inserted sentence providing for manipulation of imported merchandise entering and remaining in continuous customs custody in cases where neither the protection of the revenue nor proper conduct of business requires such manipulation be done in a bonded warehouse, and inserted “Wake Island, Midway Islands, Kingman Reef” before “or the island of Guam”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2020 AmendmentAmendment by Pub. L. 116–260 effective
July 1, 2020, see section 601(h) of div. O of Pub. L. 116–260, set out as a note under section 81c of this title. Amendment by Pub. L. 116–113 effective on the date the USMCA enters into force (
July 1, 2020) and applicable with respect to goods entered, or withdrawn from warehouse for consumption, on or after that date, see section 501(g) of Pub. L. 116–113, set out as a note under section 81c of this title.

Effective Date

of 2006 AmendmentAmendment by Pub. L. 109–280 applicable with respect to goods entered, or withdrawn from warehouse for consumption, on or after the 15th day after Aug. 17, 2006, see section 1641 of Pub. L. 109–280, set out as a note under section 58c of this title. Effective and Termination Dates of 2003 AmendmentAmendment by Pub. L. 108–77 effective on the date the United States-Chile Free Trade Agreement enters into force (Jan. 1, 2004), and to cease to be effective on the date the Agreement ceases to be in force, see section 107(a), (c) of Pub. L. 108–77, set out in a note under section 3805 of this title.

Effective Date

of 1993 AmendmentAmendment by Pub. L. 103–182 applicable (1) with respect to exports from the United States to Canada on Jan. 1, 1996, if Canada is a NAFTA country on that date and after such date for so long as Canada continues to be a NAFTA country and (2) with respect to exports from the United States to Mexico on Jan. 1, 2001, if Mexico is a NAFTA country on that date and after such date for so long as Mexico continues to be a NAFTA country, see section 213(c) of Pub. L. 103–182, formerly set out as an

Effective Date

note under former section 3331 of this title. Effective and Termination Dates of 1988 AmendmentAmendment by Pub. L. 100–449 effective on date the United States-Canada Free-Trade Agreement enters into force (Jan. 1, 1989), and to cease to have effect on date Agreement ceases to be in force, see section 501(a), (c) of Pub. L. 100–449, set out in a note under section 2112 of this title.

Effective Date

of 1970 AmendmentFor

Effective Date

of amendment by Pub. L. 91–271, see section 203 of Pub. L. 91–271, set out as a note under section 1500 of this title.

Effective Date

of 1955 AmendmentAmendment by act
June 30, 1955, effective
July 1, 1955, see note set out under section 1401 of this title.

Effective Date

of 1953 Amendment;

Savings Provision

Amendment by act Aug. 8, 1953, effective on and after thirtieth day following Aug. 8, 1953, and

Savings Provision

, see notes set out under section 1304 of this title.

Effective Date

of 1938 AmendmentAmendment by act
June 25, 1938, effective on thirtieth day following
June 25, 1938, except as otherwise specifically provided, see section 37 of act
June 25, 1938, set out as a note under section 1401 of this title.

Reference

Citations & Metadata

Citation

19 U.S.C. § 1562

Title 19Customs Duties

Last Updated

Apr 6, 2026

Release point: 119-73