PART 127—GENERAL ORDER, UNCLAIMED, AND ABANDONED MERCHANDISE Authority: 19 U.S.C. 66, 1311, 1312, 1484, 1485, 1490, 1491, 1492, 1493, 1506, 1559, 1563, 1623, 1624, 1646a; 26 U.S.C. 5753. Section 127.12 also issued under 19 U.S.C. 1753; Section 127.14 also issued under 19 U.S.C. 1555, 1556, 1557; Section 127.21 also issued under 19 U.S.C. 1753; Section 127.28 also issued under 15 U.S.C. 2612, 26 U.S.C. 5688; Sections 127.31, 127.36, 127.37 also issued under 19 U.S.C. 1753. Source: T.D. 74-114, 39 FR 12092, Apr. 3, 1974, unless otherwise noted. § 127.0 Scope. This part sets forth regulations pertaining to general order merchandise, unclaimed merchandise, and abandoned merchandise, the storage and sale thereof, and the distribution of the proceeds from the sale thereof. Regulations regarding the abandonment of merchandise by the importer to the Government in accordance with section 506(1), Tariff Act of 1930, as amended (19 U.S.C. 1506(1)), appear in part 158 of this chapter. Subpart A—General Order Merchandise § 127.1 Merchandise considered general order merchandise. Merchandise shall be considered general order merchandise when it is taken into the custody of the port director and deposited in the public stores or a general order warehouse at the risk and expense of the consignee for any of the following reasons: (a) Whenever entry of any imported merchandise is not made within the time provided by law or regulations prescribed by the Secretary of the Treasury. (b) Whenever entry is incomplete because of failure to pay estimated duties. (c) Whenever, in the opinion of the port director, entry cannot be made for want of proper documents or other causes. (d) Whenever the port director believes that any merchandise is not correctly or legally invoiced. (e) Whenever, at the request of the consignee or the owner or master of the vessel or person in charge of the vehicle in which merchandise is imported, any merchandise is taken possession of by the port director after the expiration of 1 day after entry of the vessel or report of the vehicle. § 127.2 Withdrawal from general order for entry or exportation. (a) Exportation within 6 months from date of importation. (b) After expiration of 6 months from date of importation. (c) Withdrawal of less than single general order lot. [T.D. 74-114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 98-74, 63 FR 51290, Sept. 25, 1998] § 127.4 General order period defined. The general order period is that period of time during which general order merchandise, as defined in § 127.1, is not subject to sale. The general order period expires 6 months from the date of importation. [T.D. 79-221, 44 FR 46814, Aug. 9, 1979, as amended by T.D. 98-74, 63 FR 51290, Sept. 25, 1998] Subpart B—Unclaimed and Abandoned Merchandise § 127.11 Unclaimed merchandise. Any entered or unentered merchandise (except merchandise under section 557, Tariff Act of 1930, as amended (19 U.S.C. 1557), but including merchandise entered for transportation in bond or for exportation) which remains in Customs custody for 6 months from the date of importation or a lesser period for special merchandise as provided by § 127.28 (c), (d), and (h), and without all estimated duties and storage or other charges having been paid, shall be considered unclaimed and abandoned. [T.D. 79-221, 44 FR 46814, Aug. 9, 1979, as amended by T.D. 98-74, 63 FR 51290, Sept. 25, 1998] § 127.12 Abandoned merchandise. (a) Involuntarily abandoned merchandise. (1) Articles entered for a trade fair under the provisions of section 3 of the Trade Fair Act of 1959 (19 U.S.C. 1752), which are still in Customs custody at the expiration of 3 months after the closing date of the fair for which they were entered. (See § 147.47 of this chapter.) (2) Any imported merchandise upon which any duties or charges are unpaid, remaining in a bonded warehouse beyond the 5-year warehouse period. (b) Voluntarily abandoned merchandise. (1) Merchandise which is taken possession of by the port director at the request of the consignee, or owner or master of the vessel or person in charge of the vehicle in which the merchandise was imported. (2) Merchandise abandoned by the importer to the United States within 30 days after entry in the case of merchandise not sent to the public stores for examination, or within 30 days after the release of the examination packages or merchandise in the case of merchandise sent to the public stores for examination. (3) Articles entered for a trade fair under the provisions of section 3 of the Trade Fair Act of 1959 (19 U.S.C. 1752), which have been abandoned to the United States within 3 months of the closing of the fair. (4) Merchandise in a bonded warehouse abandoned by the consignee within 3 years from the date of original importation. (See subpart D of part 158 of this chapter.) [T.D. 74-114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 79-221, 44 FR 46814, Aug. 9, 1979] § 127.13 Storage of unclaimed and abandoned merchandise. (a) Place of storage. (b) Payment of storage and expenses. [T.D. 74-114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 02-65, 67 FR 68034, Nov. 8, 2002] § 127.14 Disposition of merchandise in Customs custody beyond time fixed by law. (a) Merchandise subject to sale or other disposition General. (2) Destruction of merchandise Proprietor responsibility. see see (ii) Notice of destruction. see (b) Entry of merchandise subject to sale. (c) Release of merchandise to warehouse proprietor. (1) Merchandise upon which all duties and charges have been paid. (2) Free and duty-paid merchandise upon which all charges have been paid, not entered for warehouse which remains in bonded warehouse for more than the general order period. [T.D. 74-114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 75-161, 40 FR 28790, July 9, 1975; T.D. 79-221, 44 FR 46814, Aug. 9, 1979; T.D. 82-204, 47 FR 49375, Nov. 1, 1982; T.D. 02-65, 67 FR 68034, Nov. 8, 2002] Subpart C—Sale of Unclaimed and Abandoned Merchandise § 127.21 Time of sale. All unclaimed and abandoned merchandise will be sold at the first regular sale held after the merchandise becomes subject to sale, unless a deferment of its sale is authorized by the port director. Regular sales shall be made once every year or more often at the discretion of the port director. [T.D. 74-114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 02-65, 67 FR 68034, Nov. 8, 2002] § 127.22 Place of sale. The port director, in his discretion, may authorize the sale of merchandise subject to sale (including explosives, perishable articles and articles liable to depreciation) at any port. The consignee of any merchandise which is to be transferred from the port where it was imported to another port for sale, shall be notified of the transfer so that he may have the option of making entry of the merchandise before the transfer and sale. [T.D. 95-77, 60 FR 50020, Sept. 27, 1995] § 127.23 Appraisement of merchandise. Before unclaimed and abandoned merchandise is offered for sale, it shall be appraised in accordance with sections 402 and 402a, Tariff Act of 1930, as amended (19 U.S.C. 1401a, 1402). Such merchandise shall also be appraised at its actual domestic value in its condition at the time and place of examination, whether or not it has depreciated or appreciated in value since the date of exportation. The quantity of merchandise in each lot shall be reported. § 127.24 Notice of sale. Notice of sale shall be sent on Customs Form 5251, 30 days prior to the date of sale, or 30 days prior to the transfer of merchandise to the place of sale, to the following: (a) Importer, if known; or (b) Consignee, if name and address can be ascertained; or (c) Shipper, his representative or agent, if merchandise is consigned to order or consignee cannot be ascertained; or (d) Warehouse transferee; or (e) Lienholder. § 127.25 Advertisement of sale. (a) Regular advertising. (b) Where proceeds are insufficient to pay expenses and duties. § 127.26 Catalogs. Catalogs, if used shall specify the description of packages, the description and quantities of their contents, the appraised value thereof, and also the domestic value at the time and place of the examination of the merchandise. They shall be distributed at the sale and announcement made that the Government does not guarantee quality or value and that no allowance will be made for any deficiency found after sale. § 127.27 Conduct of sale. Sales may be conducted by the port director, any employee designated by him or by a public auctioneer. § 127.28 Special merchandise. (a) Drugs, seeds, plants, nursery stock, and other articles required to be inspected by the Department of Agriculture. (b) Pesticides and devices. (c) Explosives, dangerous articles, fruit, and perishables. (d) Articles liable to depreciation. (e) Tobacco and tobacco products. (f) Distilled spirits, wines, and malt beverages. (g) Other merchandise subject to internal revenue taxes. (h) Unclaimed merchandise remaining on dock. (i) Good subject to TSCA Requirements. i.e., [T.D. 74-114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 83-158, 48 FR 34740, Aug. 1, 1983; T.D. 98-74, 63 FR 51290, Sept. 25, 1998; T.D. 02-65, 67 FR 68034, Nov. 8, 2002; CBP Dec. 16-28, 81 FR 94986, Dec. 27, 2016] § 127.29 Unsold merchandise. Merchandise offered for sale but not sold shall be included in the next regular sale of unclaimed and abandoned merchandise. If the port director is satisfied that such merchandise is unsalable or of no commercial value, it shall be destroyed. Subpart D—Proceeds of Sale § 127.31 Disposition of proceeds. From the proceeds of sale of merchandise remaining in public stores or in bonded warehouse beyond the time fixed by law, the following charges shall be paid in the order named: (a) Internal revenue taxes. (b) Expenses of advertising and sale. (c) Expenses of cartage, storage and labor. When the proceeds are insufficient to pay such charges fully, they shall be paid pro rata. (For merchandise entered for warehousing, see § 127.32 of this subpart.) (d) Duties. (e) Any other charges due the United States in connection with the merchandise. (f) Any sum due to satisfy a lien for freight, charges, or contributions in general average, of which due notice shall have been given in the manner prescribed by law. § 127.32 Expenses of cartage, storage, and labor. The expenses of cartage, storage, and labor for merchandise entered for warehousing shall be paid in the following order: (a) When such merchandise was warehoused in public stores, expenses of storage and labor shall be paid after expenses of sale (pro-rated when proceeds are insufficient to pay them fully) and any cartage charges shall be paid last. (b) When such merchandise was warehoused in a bonded warehouse, expenses of storage, cartage, and labor shall be paid last (pro-rated when proceeds are insufficient to pay them fully). § 127.33 Chargeable duties. The duties chargeable on any merchandise within the purview of this subpart shall be assessed on the appraised dutiable value at the rate of duty chargeable at the time the merchandise became subject to sale. Household and personal effects of the character provided for in Chapter 98, Subchapter IV, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), which belong to persons who have not arrived in this country before the effects become subject to sale, are dutiable at the rates in effect when the effects become subject to sale, even though such persons arrive and make entry for the effects before they are sold. [T.D. 74-114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 89-1, 53 FR 51255, Dec. 21, 1988; T.D. 97-82, 62 FR 51770, Oct. 3, 1997] § 127.34 Auctioneer's commissions. The duties of the auctioneer shall be confined to selling the merchandise and his charge for such service shall in no case exceed the commissions usual at the port. Such commissions shall be based on the amount of the successful bid. § 127.35 Presentation of accounts. Accounts for the auctioneer's charges and all other expenses of sale which may be properly chargeable on the merchandise shall be presented to the port director for payment within 10 days from the date of sale. Such expenses shall be apportioned pro rata on the amounts received for different lots sold. § 127.36 Claim for surplus proceeds of sale. (a) Filing of claim. (1) Unclaimed merchandise. (2) Involuntarily abandoned merchandise Warehouse goods deemed abandoned. (ii) Trade fair articles deemed abandoned. (b) Payment of claim. (c) Doubtful claims. § 127.37 Insufficient proceeds. (a) Warehouse merchandise deemed involuntarily abandoned. (b) Unclaimed merchandise and trade fair articles involuntarily abandoned. [T.D. 74-114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 84-213, 49 FR 41183, Oct. 19, 1984] Subpart E—Title to Unclaimed and Abandoned Merchandise Vesting in Government Source: T.D. 02-65, 67 FR 68034, Nov. 8, 2002, unless otherwise noted. § 127.41 Government title to unclaimed and abandoned merchandise. (a) Vesting of title in Government. (b) Notice to known interested parties. (1) Importer, if known; (2) Consignee, if name and address can be ascertained; (3) Shipper, or the shipper's representative or agent, if merchandise is consigned to order or the consignee cannot be ascertained; and (4) Any other known interested parties. (c) Appraisement of merchandise. § 127.42 Disposition of merchandise owned by Government. (a) Disposition. (b) Payment of charges and expenses. § 127.43 Petition of party for surplus proceeds had merchandise been sold. (a) Filing of petition. (b) When and with whom filed. (c) Evidence required. (d) Payment of claim. see (e) Doubtful claim. [T.D. 02-65, 67 FR 68034, Nov. 8, 2002, as amended by CBP Dec. 12-21, 77 FR 73309, Dec. 10, 2012]