PART 162—INSPECTION, SEARCH, AND SEIZURE Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1592, 1593a, 1624, 6 U.S.C. 101, 8 U.S.C. 1324(b). Section 162.3 also issued under 19 U.S.C. 1581; Section 162.4 also issued under 39 U.S.C. 604, 605; Section 162.5 also issued under 19 U.S.C. 1581, 49 U.S.C. 1509; Section 162.6 also issued under 19 U.S.C. 1461, 1467, 1496; Section 162.7 also issued under 19 U.S.C. 482; Section 162.8 also issued under 9 U.S.C. 1629; Section 162.21 also issued under 19 U.S.C. 482, 1581, 1582, 1602; Section 162.22 also issued under 18 U.S.C. 546; 19 U.S.C. 1459, 1594, 1595a, 1701, 1703-1708; Section 162.23 also issued under 19 U.S.C. 1595a(c). Section 162.32 also issued under 19 U.S.C. 1603, 1610; Section 162.32 also issued under 19 U.S.C. 1603, 1610; Section 162.43 also issued under 19 U.S.C. 1606, 1608; Section 162.44 also issued under 19 U.S.C. 1614; Section 162.45 also issued under 19 U.S.C. 1607, 1608; Section 162.45a also issued under 21 U.S.C. 881; Section 162.46 also issued under 19 U.S.C. 1609, 1611; Section 162.47 also issued under 19 U.S.C. 1608; Section 162.48 also issued under 19 U.S.C. 1606, 1607, 1608, 1612, 1613b, 1618; Section 162.49 also issued under 26 U.S.C. 5688; Section 162.50 also issued under 19 U.S.C. 1611, 1705; Section 162.61 also issued under 21 U.S.C. 952, 953, 957; Section 162.62 also issued under 21 U.S.C. 952, 956; Sections 162.63, 162.64 also issued under 21 U.S.C. 881, 966; Section 162.65 also issued under 19 U.S.C. 1584, 21 U.S.C. 960, 961. Sections 162.65 and 162.72 also issued under 19 U.S.C. 1431(b) and 19 U.S.C. 1644. Sections 162.91 through 162.96 also issued under 18 U.S.C. 983. Source: T.D. 72-211, 37 FR 16488, Aug. 15, 1972, unless otherwise noted. § 162.0 Scope. This part contains provisions for the inspection, examination, and search of persons, vessels, aircraft, vehicles, and merchandise involved in importation, for the seizure of property, and for the forfeiture and sale of seized property. It also contains provisions for Customs enforcement of the controlled substances laws. Additional provisions concerning records maintenance and examination applicable to U.S. importers, exporters and producers under the U.S.-Chile Free Trade Agreement, the U.S.-Singapore Free Trade Agreement, the Dominican Republic-Central America-U.S. Free Trade Agreement, the U.S.-Australia Free Trade Agreement, the U.S.-Morocco Free Trade Agreement, the U.S.-Peru Trade Promotion Agreement, the U.S.-Korea Free Trade Agreement, the U.S.-Panama Trade Promotion Agreement, and the U.S.-Colombia Trade Promotion Agreement are contained in Part 10, Subparts H, I, J, L, M, Q, R, S and T of this chapter, respectively. [T.D. 98-56, 63 FR 32945, June 16, 1998, as amended by CBP Dec. 05-07, 70 FR 10884, Mar. 7, 2005; CBP Dec. 07-81, 72 FR 58522, Oct. 16, 2007; CBP Dec. 08-22, 73 FR 33691, June 13, 2008; CBP Dec. 11-01, 76 FR 708, Jan. 6, 2011; CBP Dec. 12-03, 77 FR 15959, Mar. 19, 2012; CBP Dec. 12-16, 77 FR 59081, Sept. 26, 2012; USCBP-2013-0040, 78 FR 63068, Oct. 23, 2013; CBP Dec. 15-03; 80 FR 7317, Feb. 10, 2015] Subpart A—Inspection, Examination, and Search Source: T.D. 79-159, 44 FR 31970, June 4, 1979, unless otherwise noted. §§ 162.1-162.2 [Reserved] § 162.3 Boarding and search of vessels. (a) General authority. (1) Any vessel at any place in the United States or within the Customs waters of the United States; (2) Any American vessel on the high seas; (3) Any vessel within a Customs-enforcement area designated such under the provisions of the Anti-Smuggling Act (Act of August 5, 1935, as amended, 49 Stat. 517; 19 U.S.C. 1701, 1703 through 1711), but Customs officers shall not board a foreign vessel upon the high seas in contravention of any treaty with a foreign government, or in the absence of a special arrangement with the foreign government concerned. (b) Search of army or navy vessel. (c) Assistance of other agencies. [T.D. 84-18, 48 FR 52899, Nov. 23, 1983] § 162.4 Search for letters. A Customs officer may search vessels for letters which may be on board or may have been conveyed contrary to law on board any vessel or on any post route, and shall seize such letters and deliver them to the nearest post office or detain them subject to the orders of the postal authorities. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972] § 162.5 Search of arriving vehicles and aircraft. A customs officer may stop any vehicle and board any aircraft arriving in the United States from a foreign country for the purpose of examining the manifest and other documents and papers and examining, inspecting, and searching the vehicle or aircraft. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 90-34, 55 FR 17597, Apr. 26, 1990] § 162.6 Search of persons, baggage, and merchandise. All persons, baggage, and merchandise arriving in the Customs territory of the United States from places outside thereof are liable to inspection and search by a Customs officer. Port directors and special agents in charge are authorized to cause inspection, examination, and search to be made under section 467, Tariff Act of 1930, as amended (19 U.S.C. 1467), of persons, baggage, or merchandise, even though such persons, baggage, or merchandise were inspected, examined, searched, or taken on board the vessel at another port or place in the United States or the Virgin Islands, if such action is deemed necessary or appropriate. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972] § 162.7 Search of vehicles, persons, or beasts. A Customs officer may stop, search, and examine any vehicle, person, or beast, or search any trunk or envelope wherever found, in accordance with section 3061 of the Revised Statutes (19 U.S.C. 482). [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 90-34, 55 FR 17597, Apr. 26, 1990] § 162.8 Preclearance inspections and examinations. In connection with inspections and examinations conducted in accordance with § 148.22(a) of this chapter, United States Customs officers stationed in a foreign country may exercise such functions and perform such duties (including inspections, examinations, searches, seizures, and arrests), as may be permitted by treaty, agreement, or law of the country in which they are stationed. [T.D. 89-22, 54 FR 5077, Feb. 1, 1989] Subpart B—Search Warrants § 162.11 Authority to procure warrants. Customs officers are authorized to procure search warrants under the provisions of section 595, Tariff Act of 1930, as amended (19 U.S.C. 1595). However, a Customs officer who is lawfully on any premises and is able to identify merchandise which has been imported contrary to law may seize such merchandise without a warrant. If merchandise is in a building on the boundary, see § 123.71 of this chapter. § 162.12 Service of search warrant. A search warrant shall be served in person by the officer to whom it is issued and addressed. In serving a search warrant, the officer shall leave a copy of the warrant with the person in charge or possession of the premises, or in the absence of any person, the copy shall be left in some conspicuous place on the premises searched. § 162.13 Search of rooms not described in warrant. When a Customs officer is acting under a warrant to search the rooms in a building occupied by persons named or described in the warrant, no search shall be made of any rooms in such building which are not described in the warrant as occupied by such persons. § 162.15 Receipt for seized property. A receipt for property seized under a search warrant shall be left with the person in charge or possession of the premises, or in the absence of any person, the receipt shall be left in some conspicuous place on the premises searched. Subpart C—Seizures § 162.21 Responsibility and authority for seizures. (a) Seizures by Customs officers. (b) Seizure by persons other than Customs officers. (c) Seizure by State official. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 79-160, 44 FR 31956, June 4, 1979; USCBP-2006-0122, 73 FR 9011, Feb. 19, 2008] § 162.22 Seizure of conveyances. (a) General applicability. (b) Facilitating importation contrary to law. (c) Common carrier clearance. (d) Maritime Administration vessels; exemption from penalty. (2) This exemption shall not in any way be considered to relieve the master of any such vessel or other person incurring such penalties from personal liability for payment. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 89-86, 54 FR 37602, Sept. 11, 1989; USCBP-2006-0122, 73 FR 9012, Feb. 19, 2008] § 162.23 Seizure under section 596(c), Tariff Act of 1930, as amended (19 U.S.C. 1595a(c)). (a) Mandatory seizures. (1) Merchandise that is stolen, smuggled, or clandestinely imported or introduced; (2) A controlled substance, as defined in the Controlled Substance Act (21 U.S.C. 801 et seq. (3) A contraband article, as defined in section 1 of the Act of August 9, 1939 (49 U.S.C. 80302); or (4) A plastic explosive, as defined in section 841(q) of title 18, United States Code, which does not contain a detection agent, as defined in section 841(p) of that title. (b) Permissive seizures. (1) Merchandise the importation or entry of which is subject to any restriction or prohibition imposed by law relating to health, safety, or conservation, and which is not in compliance with the applicable rule, regulation or statute; (2) Merchandise the importation or entry of which requires a license, permit or other authorization of a United States Government agency, and which is not accompanied by such license, permit or authorization; (3) Merchandise or packaging in which copyright, trademark or trade name protection violations are involved (including, but not limited to, a violation of sections 42, 43 or 45 of the Act of July 5, 1946 (15 U.S.C. 1124, 1125 or 1127), sections 506 or 509 of title 17, United States Code, or sections 2318 or 2320 of title 18, United States Code); (4) Trade dress merchandise involved in the violation of a court order citing section 43 of the Act of July 5, 1946 (15 U.S.C. 1125); (5) Merchandise marked intentionally in violation of 19 U.S.C. 1304; (6) Merchandise for which the importer has received written notices that previous importations of identical merchandise from the same supplier were found to have been in violation of 19 U.S.C. 1304; or (7) Merchandise subject to quantitative restrictions, found to bear a counterfeit visa, permit, license, or similar document, or stamp from the United States or from a foreign government or issuing authority pursuant to a multilateral or bilateral agreement (but see paragraph (e), of this section). (c) Resolution of seizure under § 1595a(c). (d) Seizure under 19 U.S.C. 1592. (e) Detention only. (f) Exportations contrary to law. [T.D. 96-2, 60 FR 67058, Dec. 28, 1995, as amended by T.D. 99-4, 64 FR 1123, Jan. 8, 1999; CBP Dec. 10-29, 75 FR 52452, Aug. 26, 2010] Subpart D—Procedure When Fine, Penalty, or Forfeiture Incurred § 162.31 Notice of fine, penalty, or forfeiture incurred. (a) Notice. (b) Contents of notice. (1) The provisions of law alleged to have been violated; (2) A description of the specific acts or omissions forming the basis of the alleged violations; (3) If the alleged violations involve the entry or attempted entry of merchandise, (i) A description of the merchandise and the circumstances of its entry or attempted entry, and (ii) The identity of each entry, if specific entries are involved; and (4) If the alleged violations involve a loss of revenue, (i) The total loss of revenue and how it was computed, and (ii) The loss of revenue attributable to each entry, if readily susceptible to calculation. (c) Demand for deposit in case of smuggled articles of small value. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 78-38, 43 FR 4255, Feb. 1, 1978; T.D. 79-160, 44 FR 31956, June 4, 1979; T.D. 85-90, 50 FR 21431, May 24, 1985; T.D. 89-86, 54 FR 37602, Sept. 11, 1989] § 162.32 Where petition for relief not filed. (a) Fines, penalties and forfeitures. (b) Institution of forefeiture proceedings before completion of administrative procedures. (c) Seized property not eligible for administrative forfeiture. [T.D. 85-195, 50 FR 50289, Dec. 10, 1985, as amended by T.D. 99-27, 64 FR 13676, Mar. 22, 1999] Subpart E—Treatment of Seized Merchandise § 162.41 [Reserved] § 162.42 Proceedings by libel. If seizure is made under a statute which provides that the property may be seized and proceeded against by libel, the summary forfeiture procedures set forth in §§ 162.45, 162.46, and 162.47 do not apply. Such cases shall be referred to the U.S. attorney. The Fines, Penalties, and Forfeitures Officer may request the U.S. attorney to seek a decree of forfeiture providing for delivery of the property to the Fines, Penalties, and Forfeitures Officer for sale or other appropriate disposition, if such property is not to be retained for official use. [T.D. 72-211, 37 FR 16488, Aug. 15, 1999, as amended by T.D. 99-27, 64 FR 13676, Mar. 22, 1999] § 162.43 Appraisement. (a) Property under seizure and subject to forfeiture. (b) Property not under seizure. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 79-160, 44 FR 31957, June 4, 1979; T.D. 85-123, 50 FR 29956, July 23, 1985] § 162.44 Release on payment of appraised value. (a) Value exceeding $100,000. (b) Value not over $100,000 Authority to accept offer. (i) The appraised domestic value of the seized property does not exceed $100,000. (ii) The Fines, Penalties, and Forfeitures Officer is satisfied that the claimant has, in fact, a substantial interest in the property; and (iii) Entry of the seized property into the commerce of the United States is not prohibited by law. (2) Referral of offer. (c) Retention of property. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 74-276, 39 FR 37633, Oct. 23, 1974; T.D. 85-195, 50 FR 50289, Dec. 10, 1985; T.D. 99-27, 64 FR 13676, Mar. 22, 1999] § 162.45 Summary forfeiture: Property other than Schedule I and Schedule II controlled substances. Notice of seizure and sale. (a) Contents. (1) Describe the property seized and in the case of motor vehicles, specify the motor and serial numbers; (2) State the time, cause, and place of seizure; (3) State that any person desiring to claim property must appear at a designated place and file with the Fines, Penalties, and Forfeitures Officer within 20 days from the date of first publication of the notice a claim to such property and a bond in the sum of $5,000 or 10% of the value of the claimed property, whichever is lower, but not less than $250, in default of which the property will be disposed of in accordance with the law; and (4) State the name and place of residence of the person to whom any vessel or merchandise seized for forfeiture under the navigation laws belongs or is consigned, if that information is known to the Fines, Penalties, and Forfeitures Officer. (b) Publication. (2) In all other cases, except for Schedule I and Schedule II controlled substances (see § 162.45a), the notice will be published by its posting on an official Government forfeiture Web site for at least 30 consecutive days and by its posting for at least three successive weeks in a conspicuous place that is accessible to the public at the customhouse located nearest the place of seizure or the appropriate sector office of the U.S. Border Patrol. All known parties-in-interest will be notified in writing of the Government Web site address and the date of Internet publication (and pertinent information regarding print publication, when appropriate). The posting at the customhouse or sector office will contain the date of on-site posting. Articles of small value of the same class or kind included in two or more seizures will be advertised as one unit. (c) Delay of publication. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 83-72, 48 FR 11423, Mar. 18, 1983; T.D. 85-123, 50 FR 29956, July 23, 1985; T.D. 85-195, 50 FR 50290, Dec. 10, 1985; T.D. 91-52, 56 FR 25364, June 4, 1991; T.D. 99-27, 64 FR 13676, Mar. 22, 1999; T.D. 00-37, 65 FR 33254, May 23, 2000; CBP Dec. 05-02, 70 FR 8510, Feb. 22, 2005; CBP Dec. 13-04, 78 FR 6033, Jan. 29, 2013] § 162.45a Summary forfeiture of Schedule I and Schedule II controlled substances. The Controlled Substances Act (84 Stat. 1242, 21 U.S.C. 801 et seq. et seq. [T.D. 00-37, 65 FR 33254, May 23, 2000] § 162.46 Summary forfeiture: Disposition of goods. (a) General. (b) Articles required to be inspected by other Government agencies. (c) Sale General. (2) Transfer to another port for sale. (i) The laws of a State in which property is seized and forfeited prohibit the sale of such property; or (ii) The Commissioner is of the opinion that the sale of forfeited property may be made more advantageously at another Customs port. (d) Destruction. (e) Disposition of distilled spirits, wines, and malt liquor. (1) To any Government agency the Commissioner of Customs or his designee determines has a need for these articles for medical, scientific, or mechanical purposes, or for any other official purpose for which appropriated funds may be expended by a Government agency, or (2) By gift to any charitable institution the Commissioner of Customs or his designee determines has a need for the articles for medical purposes. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 77-12, 41 FR 56629, Dec. 29, 1976; T.D. 79-159, 44 FR 31971, June 4, 1979; T.D. 85-195, 50 FR 50290, Dec. 10, 1985; T.D. 92-69, 57 FR 30640, July 10, 1992; T.D. 99-27, 64 FR 13676, Mar. 22, 1999] § 162.47 Claim for property subject to summary forfeiture. (a) Filing of claim. (b) Bond for costs. (c) Claimant not entitled to possession. (d) Report to the U.S. attorney. (e) Waiver of bond. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 81-1, 45 FR 84994, Dec. 24, 1980; T.D. 84-213, 49 FR 41186, Oct. 19, 1984; T.D. 85-123, 50 FR 29956, July 23, 1985; T.D. 91-52, 56 FR 25364, June 4, 1991; T.D. 99-27, 64 FR 13676, Mar. 22, 1999] § 162.48 Disposition of perishable and other seized property. (a) Disposition of perishable property. (b) Disposition of other seized property. (2) Publication of a notice of the seizure, regardless of the disposition of the property, will be required pursuant to 19 U.S.C. 1607. Claimants to seized property will be permitted to file a petition for remission of the forfeiture pursuant to 19 U.S.C. 1618, and part 171 of this chapter. A claimant receiving full or partial relief from the forfeiture shall be reimbursed the difference between the value of the merchandise at the time of the seizure, pursuant to 19 U.S.C. 1606 and § 162.43 of this part, and any remitted forfeiture amount that the claimant is required to pay. (3) A claimant to destroyed or otherwise disposed of seized property requesting relief in the form of payment may file a claim and cost bond and seek judicial hearing on the forfeiture pursuant to 19 U.S.C. 1608. (4) Successful claimants shall be compensated from Customs Forfeiture Fund pursuant to 19 U.S.C. 1613b. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 85-195, 50 FR 50290, Dec. 10, 1985; T.D. 92-69, 57 FR 30640, July 10, 1992; T.D. 99-27, 64 FR 13676, Mar. 22, 1999; T.D. 00-57, 65 FR 53575, Sept. 5, 2000] § 162.49 Forfeiture by court decree. (a) Report to the U.S. attorney or the Department of Justice if the penalty was assessed under section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592). (b) Bonding of seized property. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 85-90, 50 FR 21431, May 24, 1985; T.D. 99-27, 64 FR 13676, Mar. 22, 1999] § 162.50 Forfeiture by court decree: Disposition. (a) Sale. (b) Transfer to other ports for sale. (c) Destruction Proceeds of sale not sufficient. (2) For protection of the revenue. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 99-27, 64 FR 13676, Mar. 22, 1999] § 162.51 Disposition of proceeds of sale of property seized and forfeited other than under 19 U.S.C. 1592. (a) Order of payment of expenses incurred When application for remission and restoration is filed and approved. (i) Internal revenue taxes. (ii) Marshal's fees and court costs. (iii) Expenses of advertising and sale. (iv) Expenses of cartage, storage, and labor. When the proceeds are insufficient to pay these expenses fully, they shall be paid pro rata. (v) Duties. (vi) Any sum due to satisfy a lien for freight, charges, or contributions in general average, provided notice of the lien has been given in the manner prescribed by law. (2) When no application for remission and restoration is filed or the application is denied. (i) Internal revenue taxes. (ii) Marshal's fees and court costs. (iii) Expenses of advertising and sale. (iv) Expenses of cartage, storage, and labor. When the proceeds are insufficient to pay these expenses fully, they shall be paid pro rata. (v) Any sum due to satisfy a lien for freight, charges, or contributions in general average, provided notice of the lien has been given in the manner prescribed by law. (vi) The residue, if any, shall be deposited with the Treasurer of the United States as a customs or navigation fine. (b) Transfer of seized and forfeited property to another Federal agency. [T.D. 79-160, 44 FR 31957, June 4, 1979; 44 FR 36376, June 22, 1979, as amended by T.D. 84-78, 49 FR 13492, Apr. 5, 1984] § 162.52 Disposition of proceeds of sale of property seized and forfeited under 19 U.S.C. 1592. (a) Order of disposition of proceeds. (1) Internal revenue taxes. (2) Marshal's fees and court costs. (3) Expenses of advertising and sale. (4) Expenses of cartage, storage, and labor. When proceeds are insufficient to pay these expenses fully, they shall be paid pro rata. (5) Duties. (6) Any sum due to satisfy a lien for freight, charges, or contributions in general average, provided notice of the lien has been given in the manner prescribed by law. (7) The monetary penalty assessed under 19 U.S.C. 1592. (8) The remaining proceeds, if any, shall be paid to the appropriate party-in-interest as provided in paragraph (b). (b) Determination of appropriate party-in-interest. (2) If the property is sold under the summary forfeiture procedure, or if the court has not specified the manner of distribution, the Fines, Penalties, and Forfeitures Officer shall hold the excess proceeds for 3 months from the date of the sale to allow any party-in-interest to claim the proceeds. (3) If there is one alleged violator and no petition has been filed for the excess proceeds by another person, the excess proceeds shall be disbursed to the person against whom the penalty was assessed. (4) If there are 2 or more persons with claims or possible claims to the excess proceeds, the Fines, Penalties, and Forfeitures Officer shall attempt to obtain a written agreement from the parties as to the distribution. If an agreement cannot be reached, the matter shall be referred to Customs Headquarters for determination. (c) Official use of seized and forfeited property. [T.D. 79-160, 44 FR 31958, June 4, 1979, as amended by T.D. 99-27, 64 FR 13676, Mar. 22, 1999] Subpart F—Controlled Substances, Narcotics, and Marihuana § 162.61 Importing and exporting controlled substances. It shall be unlawful to import to or export from the United States any controlled substance or narcotic drug listed in schedules I through V of the Controlled Substances Act (Sec. 202, 84 Stat. 1247; 21 U.S.C. 812), unless there has been compliance with the provisions of said Act, the Controlled Substances Import and Export Act and the regulations of the Drug Enforcement Administration. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 78-99, 43 FR 13062, Mar. 29, 1978] § 162.62 Permissible controlled substances on vessels, aircraft, and individuals. Upon compliance with the provisions of the Controlled Substances Act (84 Stat. 1242; 21 U.S.C. 801), the Controlled Substances Import and Export Act (84 Stat. 1285; 21 U.S.C. 951), and the regulations of the Drug Enforcement Administration (21 CFR 1301.28, 1311.27), controlled substances listed in schedules I through V of the Controlled Substances Act may be held: (a) On vessels engaged in international trade in medicine chests and dispensaries. (b) In aircraft operated by an air carrier under a certificate or permit issued by the Federal Aviation Administration for stocking in medicine chests and first aid packets. (c) By an individual where lawfully obtained for personal medical use or for administration to an animal accompanying him to enter or depart the United States. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 78-99, 43 FR 13062, Mar. 29, 1978] § 162.63 Arrests and seizures. Arrests and seizures under the Controlled Substances Act (84 Stat. 1242, 21 U.S.C. 801 et seq. et seq. [T.D. 00-37, 65 FR 33255, May 23, 2000] § 162.64 Custody of controlled substances. All controlled substances seized by a Customs officer shall be delivered immediately into the custody of the Fines, Penalties, and Forfeitures Officer having jurisdiction where the seizure is made, together with a full report of the circumstances of the seizure. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 99-27, 64 FR 13676, Mar. 22, 1999] § 162.65 Penalties for failure to manifest narcotic drugs or marihuana. (a) Cargo or baggage containing unmanifested narcotic drugs or marihuana. (b) Unmanifested narcotic drugs or marihuana. (c) Notice and demand for payment of penalty. (d) Referral to the U.S. attorney. (e) Withholding clearance of vessel. (1) The narcotics or marihuana were discovered in a passenger's baggage and the Fines, Penalties, and Forfeitures Officer is satisfied that neither the master nor any of the officers nor the owner of the vessel knew or had any reason to know or suspect that the narcotics or marihuana had been on board the vessel, or (2) Prior authority for the clearance without payment of the penalty or the furnishing of the bond is obtained from Customs. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 79-160, 44 FR 31958, June 4, 1979; T.D. 86-59, 51 FR 8489, Mar. 12, 1986; T.D. 99-27, 64 FR 13676, Mar. 22, 1999; T.D. 99-64, 64 FR 43267, Aug. 10, 1999] § 162.66 Penalties for unlading narcotic drugs or marihuana without a permit. In every case where a narcotic drug or marihuana is unladen without a permit, the penalties prescribed in section 453, Tariff Act of 1930, as amended (19 U.S.C. 1453), shall be assessed. Penalties shall be assessed under this section when a package of regular cargo or a passenger's baggage otherwise covered by a permit to unlade is found to contain any narcotic drug or marihuana imported for sale or other commercial purpose and not specifically covered by a permit to unlade. Subpart G—Special Procedures for Certain Violations Source: T.D. 79-160, 44 FR 31958, June 4, 1979, unless otherwise noted. § 162.70 Applicability. (a) The provisions of this subpart apply only to fines, penalties, or forfeitures incurred for the following violations of the customs laws: (1) Violations of sections 466 and 584(a)(1), Tariff Act of 1930, as amended (19 U.S.C. 1466, 1584(a)(1)), that occur after October 3, 1978, and (2) Except as provided in paragraph (b) of this section, violations of section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592), with respect to which proceedings have commenced after December 31, 1978. For purposes of this subparagraph, a proceeding commences with the issuance of a prepenalty notice or, if no prepenalty notice is issued, with the issuance of a notice of a claim for a monetary penalty. (b) The provisions of this subpart do not apply to alleged intentional violations of 19 U.S.C. 1592 if the alleged violation: (1) Involves television receivers that are the products of Japan and were or are the subject to antidumping proceedings, (2) Occurred before October 3, 1978, and (3) Was the subject of a Customs investigation begun before October 3, 1978. (c) The provisions of subparts A through F of this part shall apply to the violations referred to in paragraph (a) of this section unless this subpart specifically provides otherwise. [T.D. 79-160, 44 FR 31958, June 4, 1979; 44 FR 35208, June 19, 1979, as amended by T.D. 90-34, 55 FR 17597, Apr. 26, 1990] § 162.71 Definitions. When used in this subpart, the following terms shall have the meanings indicated: (a) Loss of duties under section 592. (1) Actual loss of duties. (2) Potential loss of duties. (b) Loss of revenue under section 593A. (1) Actual loss of revenue. (2) Potential loss of revenue. (c) Repetitive violation. (d) Noncommercial importation. (e) Clerical error. (f) Mistake of fact. [T.D. 79-160, 44 FR 31958, June 4, 1979, as amended by T.D. 84-18, 49 FR 1678, Jan. 13, 1984; 49 FR 3986, Feb. 1, 1984; T.D. 98-49, 63 FR 29131, May 28, 1998; T.D. 00-5, 65 FR 3808, Jan. 25, 2000] § 162.72 Penalties and forfeitures under sections 466 and 584(a)(1), Tariff Act of 1930, as amended. (a) Foreign repairs and equipment purchases; election to proceed. (b) Lack of manifest or discrepancy in manifest. (1) A penalty of $1,000 against the master of a vessel, the commander of an aircraft, or the person in charge of a vehicle bound to the United States who does not produce the manifest on demand. (2) A penalty of $1,000 against the master of a vessel, the commander of an aircraft, the person in charge of a vehicle, or the owner of the vessel, aircraft, or vehicle, or any person directly or indirectly responsible for the discrepancy, if any merchandise described in the manifest is not found on board (a “shortage”). (3)(i) A penalty equal to the lesser of $10,000 or the domestic value of merchandise found on board of or after having been unladen from a vessel or vehicle, or (ii) A penalty of $1,000 (see § 122.161 of this chapter) if merchandise (other than narcotics or marihuana—see § 162.65 of this chapter) is found on board of or after having been unladen from an aircraft—if the merchandise is not included or described in the manifest or does not agree with the manifest (an “overage”). (iii) Unmanifested merchandise belonging to or consigned to the master or crew of the vessel, the commander or crew of the aircraft, or to the owner or person in charge of the vehicle, also shall be subject to forfeiture. The appropriate of these penalties may be assessed against the master or crew of the vessel, the commander or crew of the aircraft, the person in charge of the vehicle, the owner of the vessel, aircraft, or vehicle, or any person directly or indirectly responsible for the discrepancy. (c) Exception. [T.D. 79-160, 44 FR 31958, June 4, 1979, as amended by T.D. 86-59, 51 FR 8490, Mar. 12, 1986; T.D. 88-12, 53 FR 9315, Mar. 22, 1988; T.D. 99-27, 64 FR 13676, Mar. 22, 1999; T.D. 99-64, 64 FR 43267, Aug. 10, 1999] § 162.73 Penalties under section 592, Tariff Act of 1930, as amended. (a) Maximum penalty without prior disclosure. (1) For fraudulent violations, the domestic value of the merchandise; (2) For grossly negligent violations, (i) The lesser of the domestic value of the merchandise or four times the loss of duties, taxes and fees or (ii) If there is no loss of duties, taxes and fees 40 percent of the dutiable value of the merchandise; and (3) For negligent violations, (i) The lesser of the domestic value of the merchandise or two times the loss of duties, taxes and fees or (ii) If there is no loss of duties, taxes and fees 20 percent of the dutiable value of the merchandise. (b) Maximum penalty with prior disclosure. (1) For fraudulent violations, (i) One times the loss of duties, taxes and fees or (ii) If there is no loss of duties, taxes and fees 10 percent of the dutiable value of the merchandise; and (2) For grossly negligent and negligent violations, the interest on any loss of duties, taxes and fees. The interest shall be computed from the date of liquidation at the prevailing rate of interest applied under section 6621, Internal Revenue Code of 1954, as amended (26 U.S.C. 6621). (c) Exception; clerical error or mistake of fact. [T.D. 79-160, 44 FR 31958, June 4, 1979, as amended by T.D. 99-64, 64 FR 43267, Aug. 10, 1999] § 162.73a Penalties under section 593A, Tariff Act of 1930, as amended. (a) Maximum penalty without prior disclosure for a drawback compliance program nonparticipant. (1) For fraudulent violations, three times the loss of revenue; and (2) For negligent violations, (i) 20 percent of the loss of revenue for the first violation, (ii) 50 percent of the loss of revenue for the first repetitive violation, or (iii) One times the loss of revenue for the second and each subsequent repetitive violation. (b) Maximum penalty without prior disclosure for a drawback compliance program participant— General. (i) For fraudulent violations, three times the loss of revenue; and (ii) For negligent violations, (A) Issuance of a written notice of a violation (warning letter) for the first violation and for any other violation that is not repetitive or that is repetitive but does not occur within three years from the date of the violation of which it is repetitive, (B) 20 percent of the loss of revenue for the first repetitive violation that occurs within three years from the date of the violation of which it is repetitive, (C) 50 percent of the loss of revenue for the second repetitive violation that occurs within three years from the date of the first of two violations of which it is repetitive, or (D) One times the loss of revenue for the third and each subsequent repetitive violation that occurs within three years from the date of the first of three or more violations of which it is repetitive. (2) Notice of violation and required response to notice. (A) State that the person concerned has violated section 593A; (B) Explain the nature of the violation; and (C) Warn the person concerned that future violations of section 593A may result in the imposition of monetary penalties. The notice will also warn the person concerned that repetitive violations may result in removal of certification under the drawback compliance program provided for in part 191 of this chapter until the person takes corrective action that is satisfactory to Customs. (ii) Within 30 days from the date of mailing of the notice issued under paragraph (b)(1)(ii)(A) of this section: (A) The person concerned must notify Customs in writing of the steps that have been taken to prevent a recurrence of the violation; or (B) If the person concerned believes that no violation took place, he may advise Customs in writing of the basis for that position. If Customs agrees on further review that no violation in fact took place, Customs will in writing advise the person concerned and rescind the notice of violation. If on further review Customs remains of the opinion that the violation took place as alleged in the notice of violation, Customs will issue a written affirmation of the notice of violation advising the person concerned that the notice requirement of paragraph (b)(2)(ii)(A) of this section remains applicable and must be complied with either within the remainder of the prescribed 30-day period or within 15 days after issuance of the written affirmation, whichever period is longer. (c) Maximum penalty with prior disclosure. (1) For fraudulent violations, one times the loss of revenue; and (2) For negligent violations, an amount equal to the interest accruing on the actual loss of revenue during the period from the date of overpayment of the claim to the date on which the person concerned tenders the amount of the overpayment based on the prevailing rate of interest under 26 U.S.C. 6621. [T.D. 00-5, 65 FR 3808, Jan. 25, 2000] § 162.74 Prior disclosure. (a) In general (2) A person shall be accorded the full benefits of prior disclosure treatment if that person provides information orally or in writing to Customs with respect to a violation of 19 U.S.C. 1592 or 19 U.S.C. 1593a if the concerned Fines, Penalties, and Forfeitures Officer is satisfied the information was provided before, or without knowledge of, the commencement of a formal investigation, and the information provided includes substantially the information specified in paragraph (b) of this section. In the case of an oral disclosure, the disclosing party shall confirm the oral disclosure by providing a written record of the information conveyed to Customs in the oral disclosure to the concerned Fines, Penalties, and Forfeitures Officer within 10 days of the date of the oral disclosure. The concerned Fines, Penalties and Forfeiture Officer may, upon request of the disclosing party which establishes a showing of good cause, waive the oral disclosure written confirmation requirement. Failure to provide the written confirmation of the oral disclosure or obtain a waiver of the requirement may result in denial of the oral prior disclosure. (b) Disclosure of the circumstances of a violation. (1) Identifies the class or kind of merchandise involved in the violation; (2) Identifies the importation or drawback claim included in the disclosure by entry number, drawback claim number, or by indicating each concerned Customs port of entry and the approximate dates of entry or dates of drawback claims; (3) Specifies the material false statements, omissions or acts including an explanation as to how and when they occurred; and (4) Sets forth, to the best of the disclosing party's knowledge, the true and accurate information or data that should have been provided in the entry or drawback claim documents, and states that the disclosing party will provide any information or data unknown at the time of disclosure within 30 days of the initial disclosure date. Extensions of the 30-day period may be requested by the disclosing party from the concerned Fines, Penalties, and Forfeitures Officer to enable the party to obtain the information or data. (c) Tender of actual loss of duties, taxes and fees or actual loss of revenue. (d) Effective time and date of prior disclosure (2) If the documents are sent by other methods, including in-person delivery, the disclosure shall be deemed to have been made at the time of receipt by Customs. If the documents are delivered in person, the person delivering the documents will, upon request, be furnished a receipt from Customs stating the time and date of receipt. (3) The provision of information that is not in writing but that qualifies for prior disclosure treatment pursuant to paragraph (a)(2) of this section shall be deemed to have occurred at the time that Customs was provided with information that substantially complies with the requirements set forth in paragraph (b) of this section. (e) Addressing and filing prior disclosure (2) In the case of a prior disclosure involving violations at multiple ports of entry, the disclosing party may orally disclose or provide copies of the disclosure to all concerned Fines, Penalties, and Forfeitures Officers. In accordance with internal Customs procedures, the officers will then seek consolidation of the disposition and handling of the disclosure. In the event that the claimed “multi-port” disclosure is made to a Customs officer other than the concerned Fines, Penalties, and Forfeitures Officer, the disclosing party must identify all ports involved to enable the concerned Customs officer to refer the disclosure to the concerned Fines, Penalties, and Forfeitures Officer for consolidation of the proceedings. (f) Verification of disclosure. (g) Commencement of a formal investigation. i.e. (h) Scope of the disclosure and expansion of a formal investigation. (i) Knowledge of the commencement of a formal investigation (i) Customs, having reasonable cause to believe that there has been a violation of 19 U.S.C. 1592 or 19 U.S.C. 1593a, so informed the person of the type of or circumstances of the disclosed violation; or (ii) A Customs Special Agent, having properly identified himself or herself and the nature of his or her inquiry, had, either orally or in writing, made an inquiry of the person concerning the type of or circumstances of the disclosed violation; or (iii) A Customs Special Agent, having properly identified himself or herself and the nature of his or her inquiry, requested specific books and/or records of the person relating to the disclosed violation; or (iv) Customs issues a prepenalty or penalty notice to the disclosing party pursuant to 19 U.S.C. 1592 or 19 U.S.C. 1593a relating to the type of or circumstances of the disclosed violation; or (v) The merchandise that is the subject of the disclosure was seized; or (vi) In the case of violations involving merchandise accompanying persons entering the United States or commercial merchandise inspected in connection with entry, the person has received oral or written notification of Customs finding of a violation. (2) The presumption of knowledge may be rebutted by evidence that, notwithstanding the foregoing notice, inquiry or request, the person did not have knowledge that an investigation had commenced with respect to the disclosed information. (j) Prior disclosure using sampling. (2) If a private party submits a prior disclosure claim employing sampling, CBP may review other transactions from the same time period and scope that are the subject of the prior disclosure. [T.D. 98-49, 63 FR 29131, May 28, 1998; 63 FR 35798, July 1, 1998; T.D. 99-27, 64 FR 13676, Mar. 22, 1999; T.D. 99-64, 64 FR 43267, Aug. 10, 1999; T.D. 00-5, 65 FR 3809, Jan. 25, 2000; T.D. 00-57, 65 FR 53575, Sept. 5, 2000; CBP Dec. 11-20, 76 FR 65960, Oct. 25, 2011; CBP Dec. No. 16-26, 81 FR 93024, Dec. 20, 2016] § 162.75 Seizures limited under section 592, Tariff Act of 1930, as amended. (a) When authorized. only (1) The person is insolvent, (2) The person is beyond the jurisdiction of the United States, (3) Seizure otherwise is essential to protect the revenue, or (4) Seizure is essential to prevent the introduction of prohibited or restricted merchandise into the Customs territory of the United States. (b) No seizure if prior disclosure. (c) Seizure notice. (d) Release of seized merchandise To person from whom seized. (2) To others. (i) The Fines, Penalties, and Forfeitures Officer is satisfied that the person has a substantial interest in the merchandise, and (ii) The person submits either an agreement to hold the United States and its officers and employees harmless, or a release from the owner and/or the person from whom the merchandise was seized. (3) Forfeiture. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 84-18, 49 FR 1679, Jan. 13, 1984; T.D. 85-90, 50 FR 21431, May 24, 1985; T.D. 86-118, 51 FR 22516, June 20, 1986; T.D. 88-43, 53 FR 28195, July 27, 1988; T.D. 99-27, 64 FR 13676, Mar. 22, 1999] § 162.76 Prepenalty notice for violations of sections 466 or 584(a)(1), Tariff Act of 1930, as amended. (a) When required. (b) Contents Facts of violation. (i) Describe the merchandise, if applicable, (ii) Set forth the details of the error in the manifest, if applicable, (iii) Specify all laws and regulations allegedly violated, (iv) Describe all material facts and circumstances which establish the alleged violation, and (v) State the estimated loss of duties, if any, and, taking into account all circumstances, the amount of the proposed penalty claim or claim of forfeiture, as appropriate. (2) Right to make presentation. (c) Exception. [T.D. 79-160, 44 FR 31958, June 4, 1979, as amended by T.D. 99-27, 64 FR 13676, Mar. 22, 1999; CBP Dec. 04-28, 69 FR 52600, Aug. 27, 2004] § 162.77 Prepenalty notice for violations of section 592, Tariff Act of 1930, as amended. (a) When required. (b) Contents Facts of violation. (i) Describe the merchandise, (ii) Set forth the details of the entry or introduction, the attempted entry or introduction, or the aiding or abetting of the entry, introduction, or attempt, (iii) Specify all laws and regulations allegedly violated, (iv) Disclose all material facts which establish the alleged violation, (v) State whether the alleged violation occured as the result of fraud, gross negligence, or negligence, and (vi) State the estimated loss of duties, if any, and, taking into account all circumstances, the amount of the proposed monetary penalty. (2) Right to make presentations. (c) Exceptions. (1) The claim is for $1,000 or less, or (2) The violation occurred with respect to a noncommercial importation. [T.D. 79-160, 44 FR 31958, June 4, 1979, as amended by T.D. 99-27, 64 FR 13676, Mar. 22, 1999] § 162.77a Prepenalty notice for violation of section 593A, Tariff Act of 1930, as amended. (a) When required. (b) Contents Facts of violation. (i) Identify the drawback claim; (ii) Set forth the details relating to the seeking, inducing, or affecting, or the attempted seeking, inducing, or affecting, or the aiding or procuring of, the drawback claim; (iii) Specify all laws and regulations allegedly violated; (iv) Disclose all the material facts which establish the alleged violation; (v) State whether the alleged violation occurred as a result of fraud or negligence; and (vi) State the estimated actual or potential loss of revenue due to the drawback claim and, taking into account all circumstances, the amount of the proposed monetary penalty. (2) Right to make presentations. (c) Exceptions. (d) Prior approval. [T.D. 00-5; 65 FR 3809, Jan. 25, 2000] § 162.78 Presentations responding to prepenalty notice. (a) Time within which to respond. (b) Extensions. (c) Form and contents of written presentation. (d) Additional presentations. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 85-195, 50 FR 50290, Dec. 10, 1985; T.D. 99-27, 64 FR 13676, Mar. 22, 1999] § 162.79 Determination as to violation. (a) No violation. (b) Violation Written notice of claim. (2) Contents. [T.D. 72-211, 37 FR 16488, Aug. 15, 1972, as amended by T.D. 84-18, 49 FR 1680, Jan. 13, 1984; T.D. 99-27, 64 FR 13676, Mar. 22, 1999] § 162.79a Other notice. If no prepenalty notice is issued, a written notice of any monetary penalty incurred shall contain the information required under § 162.76(b)(1), § 162.77(b)(1) or § 162.77a(b)(1) and (b)(2), except that the notice shall state the amount of the claim for a monetary penalty. The notice also shall inform the person of his right to apply for relief under section 618, Tariff Act of 1930, as amended (19 U.S.C. 1618), in accordance with part 171 of this chapter. [T.D. 79-160, 44 FR 31958, June 4, 1979, as amended by T.D. 00-5, 65 FR 3809, Jan. 25, 2000] § 162.79b Recovery of actual loss of duties, taxes and fees or actual loss of revenue. Whether or not a monetary penalty is assessed under this subpart, the appropriate Customs field officer will require the deposit of any actual loss of duties, taxes and fees resulting from a violation of section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592) or any actual loss of revenue resulting from a violation of section 593A, Tariff Act of 1930, as amended (19 U.S.C. 1593a), notwithstanding that the liquidation of the entry to which the loss is attributable has become final. If a person is liable for the payment of actual loss of duties, taxes and fees or actual loss of revenue in any case in which a monetary penalty is not assessed or a written notification of claim of monetary penalty is not issued, the port director will issue a written notice to the person of the liability for the actual loss of duties, taxes and fees or actual loss of revenue. The notice will identify the merchandise and entries involved, state the loss of duties, taxes and fees or loss of revenue and how it was calculated, and require the person to deposit or arrange for payment of the duties, taxes and fees or revenue within 30 days from the date of the notice. Any determination of actual loss of duties, taxes and fees or actual loss of revenue under this section is subject to review upon written application to the Commissioner of Customs. [T.D. 00-5, 65 FR 3809, Jan. 25, 2000] § 162.80 Liability for duties; liquidation of entries. (a)(1) When an entry is the subject of an investigation for possible violation of section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592), or of a penalty action established under that section, the Center director, subject to the provisions of paragraph (a)(2) of this section, may liquidate the entry and CBP, either at the port of entry or electronically, may collect duties before the conclusion of the investigation or final disposition of the penalty action if the Center director determines that liquidation would be in the interest of the Government. (2)(i) An entry not liquidated within 1 year from the date of entry or final withdrawal of all merchandise covered by a warehouse entry shall be deemed liquidated at the rate of duty, value, quantity, and amount of duties asserted at the time of entry by the importer, his consignee, or agent unless the time for liquidation is extended by the Center director because— (A) Information needed by Customs for the proper appraisement or classification of the merchandise is not available. (B) The importer, his consignee, or agent requests an extension and demonstrates good cause why the extention should be granted, or (C) The 1-year liquidation period is suspended as required by statute or court order. (ii) An entry not liquidated within 4 years from the date of entry or final withdrawal of all merchandise covered by a warehouse entry shall be deemed liquidated at the rate of duty, value, quantity, and amount of duties asserted at the time of entry by the importer, his consignee, or agent unless liquidation continues to be suspended by statute or court order. In that event, the entry shall be liquidated within 90 days after removal of the suspension. (iii) The Center director promptly shall notify the importer or consignee concerned and any authorized agent and surety of the importer or consignee in writing of any extension or suspension of the liquidation period. (b) When merchandise not covered by an entry is subject to section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592), a demand shall be made on the importer for payment of the duty estimated to be due on such merchandise. (c) Any applicable internal revenue tax shall also be demanded unless the merchandise is to be, or has been, forfeited. [T.D. 84-18, 49 FR 1680, Jan. 13, 1984, as amended by CBP Dec. No. 16-26, 81 FR 93024, Dec. 20, 2016] Subpart H—Civil Asset Forfeiture Reform Act Source: T.D. 00-88, 65 FR 78091, Dec. 14, 2000, unless otherwise noted. § 162.91 Exemptions. The provisions of this subpart will apply to all seizures of property for civil forfeiture made by Customs and Border Protection or Immigration and Customs Enforcement officers except for those seizures of property to be forfeited under the following statutes: The Tariff Act of 1930 or any other provision of law codified in title19, United States Code; the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq. et seq. et seq. et seq. [T.D. 02-08, 67 FR 9191, Feb. 28, 2002, as amended by USCBP-2006-0122, 73 FR 9012, Feb. 19, 2007] § 162.92 Notice of seizure. (a) Generally. (b) Seizure by state or local authorities. (c) Identity or interest of party not determined. (d) Extensions. (i) Endangering the life or physical safety of an individual; (ii) Flight from prosecution; (iii) Destruction of or tampering with evidence; (iv) Intimidation of potential witnesses; or (v) Otherwise seriously jeopardizing an investigation or unduly delaying a trial. (2) The period for sending notice of seizure as provided in paragraph (d)(1) of this section may not be further extended except by order of a court of competent jurisdiction as prescribed in paragraph (e) of this section. (e) Extensions by a court. [T.D. 00-88, 65 FR 78091, Dec. 14, 2000, as amended by USCBP-2006-0122, 73 FR 9012, Feb. 19, 2007] § 162.93 Failure to issue notice of seizure. If Customs does not send notice of a seizure of property in accordance with § 162.92 to the person from whom the property was seized, and no extension of time is granted, Customs will return the property to that person without prejudice to the right of the Government to commence a forfeiture proceeding at a later time. Customs is not, however, required to return contraband or other property that the person may not legally possess. § 162.94 Filing of a claim for seized property. (a) Generally. (b) When filed. (c) Form of claim. (d) Content of claim. (1) Identify the specific property being claimed; (2) State the claimant's interest in the property; and (3) Be made under oath, subject to penalty of perjury. (e) No bond required. (f) Effect of claim. [T.D. 00-88, 65 FR 78091, Dec. 14, 2000, as amended by T.D. 02-08, 67 FR 9191, Feb. 28, 2002] § 162.95 Release of seized property. (a) Generally. (1) The claimant has a possessory interest in the property; (2) The claimant has sufficient ties to the community to provide assurance that the property will be available at the time of trial; (3) The continued possession of the property by Customs pending the final disposition of forfeiture proceedings will cause substantial hardship to the claimant, such as preventing an individual from working, or leaving an individual homeless; and (4) The claimant's likely hardship from the continued possession by Customs of the seized property outweighs the risk that the property will be destroyed, damaged, lost, concealed, or transferred if it is returned to the claimant during the pendency of the proceedings. (b) Exceptions. (1) Is contraband, currency or other monetary instrument, or electronic funds, unless, in the case of currency, other monetary instrument or electronic funds, such property comprises the assets of a legitimate business which has been seized; (2) Is to be used as evidence of a violation of the law; (3) By reason of design or other characteristic, is particularly suited for use in illegal activities; or (4) Is likely to be used to commit additional criminal acts if returned to the claimant. (c) Request for release. (d) Granting request for release. (e) Denial of or failure to act on request for release. [T.D. 00-88, 65 FR 78091, Dec. 14, 2000, as amended by T.D. 02-08, 67 FR 9191, Feb. 28, 2002] § 162.96 Remission of forfeitures and payment of fees, costs or interest. When a person elects to petition for relief before, or in lieu of, filing a claim under § 162.94, any seizure subject to forfeiture under this subpart may be remitted or mitigated pursuant to the provisions of 19 U.S.C. 1618 or 31 U.S.C. 5321(c), as applicable. Any person who accepts a remission or mitigation decision will not be considered to have substantially prevailed in a civil forfeiture proceeding for purposes of collection of any fees, costs or interest from the Government.