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Title 19, Customs DutiesRelease 119-110

§1631 Use of Private Collection Agencies

Title 19 › CHAPTER 4 — TARIFF ACT OF 1930 › SUBTITLE III — ADMINISTRATIVE PROVISIONS › Part V — Enforcement Provisions › § 1631

Last updated Sep 22, 2026|Official source

Summary

The Secretary may hire one or more private contractors, under terms the Secretary sets, to collect debts owed to the United States under the customs laws, but only after the Customs Service has used all administrative steps, including claims on surety bonds. Contracts must let the Secretary still resolve disputes, settle claims, stop collection, or refer cases to the Attorney General. Contractors must follow section 552a of title 5 as provided in subsection (m) and applicable federal and state debt-collection laws. Debtors must pay all collection costs, and money collected must be used to cover those costs despite section 3302(b) of title 31.

Full Legal Text

Title 19, §1631

Customs Duties, Source: USLM XML via OLRC

(a)In general
Notwithstanding any other provision of law, the Secretary, under such terms and conditions as the Secretary considers appropriate, shall enter into contracts and incur obligations with one or more persons for collection services to recover indebtedness arising under the customs laws and owed the United States Government, but only after the Customs Service has exhausted all administrative efforts, including all claims against applicable surety bonds, to collect the indebtedness.
(b)Contract requirements
Any contract entered into under subsection (a) shall provide that—
(1)the Secretary retains the authority to resolve a dispute, compromise a claim, end collection action, and refer a matter to the Attorney General to bring a civil action; and
(2)the person is subject to—
(A)section 552a of title 5 to the extent provided in subsection (m) of such section; and
(B)laws and regulations of the United States Government and State governments related to debt collection practices.
(c)Payment of costs
The debtor shall be assessed and pay any and all costs associated with collection efforts pursuant to this section. Notwithstanding section 3302(b) of title 31, any sum so collected shall be used to pay the costs of debt collection services.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1999—Subsec. (c). Pub. L. 106–36 amended directory language of Pub. L. 104–295. See 1996 Amendment note below. 1996—Subsec. (c). Pub. L. 104–295, as amended by Pub. L. 106–36, added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 1996 AmendmentAmendment by Pub. L. 104–295 applicable as of Dec. 8, 1993, see section 3(b) of Pub. L. 104–295, set out as a note under section 1321 of this title.

Transfer of Functions

For

Transfer of Functions

, personnel, assets, and liabilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see section 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Security, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended generally by Pub. L. 114–125, and section 802(b) of Pub. L. 114–125, set out as a note under section 211 of Title 6.

Reference

Citations & Metadata

Citation

19 U.S.C. § 1631

Title 19, Customs Duties

Last Updated

Sep 22, 2026

Release point: 119-110