SUBCHAPTER I
ARTICLES EXPORTED AND RETURNED, NOT ADVANCED OR
IMPROVED IN CONDITION; ANIMALS EXPORTED AND RETURNED
XXII
98-I-1
U.S. Notes
1. The provisions in this subchapter (except subheadings 9801.00.70 and 9801.00.80) shall not apply to any article:
(a) Exported with benefit of drawback;
(b) Of a kind with respect to the importation of which an internal-revenue tax is imposed at the time such article is entered, unless such article was subject to an internal-revenue tax imposed upon production or importation at the time of its exportation from the United States and it shall be proved that such tax was paid before exportation and was not refunded; or
(c) Manufactured or produced in the United States in a customs bonded warehouse or under heading 9813.00.05 and exported under any provision of law.
2. For the purposes of subheadings 9801.00.70 and 9801.00.80:
(a) When because of the destruction of customs records or for other cause it is impracticable to establish whether drawback was allowed, or the amount allowed, on a returned article, there shall be assessed thereon an amount of duty equal to the estimated drawback and internal-revenue tax which would be allowable or refundable if the imported merchandise used in the manufacture or production of the returned article were dutiable or taxable at the rate applicable to such merchandise on the date of entry, but in no case more than the duty and tax that would apply if the article were wholly of foreign origin;
(b) Tobacco products and cigarette papers and tubes classifiable under such subheading may be released from customs custody, without payment of that part of duty attributable to the internal-revenue tax, for return to internal-revenue bond as provided by section 5704(d) of the Internal Revenue Code of 1954; and
(c) In order to facilitate the ascertainment and collection of the duty provided for, the Secretary of the Treasury is authorized to ascertain and specify the amounts of duty equal to drawback or internal-revenue tax which shall be applied to articles or classes or kinds of articles, and to exempt from the assessment of duty articles or classes or kinds of articles with respect to which the collection of such duty involves expense and inconvenience to the Government which is disproportionate to the probable amount of such duty.

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