19 USC 1312 - Bonded smelting and refining warehouses

U.S Code last checked for updates: May 14, 2025

§ 1312.

Bonded smelting and refining warehouses

(a)

Bond; charges against bond

(b)

Cancellation of charges against bond

The several charges against such bond may be canceled in whole or in part—

(1)

upon the exportation from the bonded warehouses which treated the metal-bearing materials, or from any other bonded smelting or refining warehouse, of a quantity of the same kind of metal contained in any product of smelting or refining of metal-bearing materials equal to the dutiable quantity contained in the imported metal-bearing materials less wastage provided for in subsection (c); except that—

(A)

in the case of a withdrawal for exportation of such a product to a USMCA country, as defined in section 4502 of this title, if any of the imported metal-bearing materials are goods subject to USMCA drawback, as defined in section 4534(a) of this title, the duties on the materials shall be paid, and the charges against the bond canceled, 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 product, the duties on the materials 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 owed on the materials on importation into the United States, or

(ii)

the total amount of customs duties paid to the USMCA country on the product, and

(B)

in the case of a withdrawal for exportation of such a product to Chile, if any of the imported metal-bearing materials are goods subject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, the duties on the materials shall be paid, and the charges against the bond canceled, before the 61st day after the date of exportation, except that the 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, or

(2)

upon payment of duties on the dutiable quantity of metal contained in the imported metal-bearing materials, or

(3)

upon the transfer of the bond charges to another bonded smelting or refining warehouse by physical shipment of a quantity of the same kind of metal contained in any product of smelting or refining of metal-bearing materials equal to the dutiable quantity contained in the imported metal-bearing materials less wastage provided for in subsection (c), or

(4)

upon the transfer of the bond charges to a bonded customs warehouse other than a bonded smelting or refining warehouse by physical shipment of a quantity of the same kind of metal contained in any product of smelting or refining equal to the dutiable quantity contained in the imported metal-bearing materials less wastage provided for in subsection (c), and upon withdrawal from such other warehouse for exportation or domestic consumption the provisions of this section shall apply; except that—

(A)

(i)

the total amount of customs duties owed on the materials on importation into the United States, or

(ii)

the total amount of customs duties paid to the USMCA country on the product, and

(B)

(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, or

(5)

upon the transfer to another bonded smelting or refining warehouse without physical shipment of metal of bond charges representing a quantity of dutiable metal contained in imported metal-bearing materials less wastage provided for in subsection (c) of the plant of initial treatment of such materials provided there is on hand at the warehouse to which the transfer is made sufficient like metal in any form to satisfy the transferred bond charges.

If Canada ceases to be a USMCA country and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter terminates, no charges against such bond may be canceled in whole or part upon an exportation to Canada under paragraph (1) or (4) during the period such Agreement is in operation except to the extent that the metal-bearing materials were of Canadian origin as determined in accordance with section 202 of the United States-Canada Free-Trade Agreement Implementation Act of 1988.

(c)

Allowance on bond for wastage of metals

(d)

Credit for exportation of product other than refined metal

Upon the exportation of a product of smelting or refining other than refined metal the bond shall be credited with a quantity of metal equivalent to the quantity of metal contained in the product exported less the proportionate part of the deductions allowed for losses in determination of the bond charge being cancelled that would not ordinarily be sustained in production of the specific product exported as ascertained from time to time by the Secretary of the Treasury; except that—

(1)

in the case of a withdrawal for exportation to a USMCA country, as defined in section 4502 of this title, if any of the imported metal-bearing materials are goods subject to USMCA drawback, as defined in section 4534(a) of this title, charges against the bond shall be paid 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 product, the bond shall be credited (subject to section 4534(e) of this title) in an amount not to exceed the lesser of—

(A)

the total amount of customs duties paid or owed on the materials on importation into the United States, or

(B)

the total amount of customs duties paid to the USMCA country on the product; and

(2)

in the case of a withdrawal for exportation to Chile, if any of the imported metal-bearing materials are goods subject to Chile FTA drawback, as defined in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act, charges against the bond shall be paid before the 61st day after the date of exportation, and the bond shall be credited in an amount equal to—

(A)

100 percent of the total amount of customs duties paid or owed on the materials on importation into the United States during the 8-year period beginning on January 1, 2004,

(B)

75 percent of the total amount of customs duties paid or owed on the materials on importation into the United States during the 1-year period beginning on January 1, 2012,

(C)

50 percent of the total amount of customs duties paid or owed on the materials on importation into the United States during the 1-year period beginning on January 1, 2013, and

(D)

25 percent of the total amount of customs duties paid or owed on the materials on importation into the United States during the 1-year period beginning on January 1, 2014.

(e)

General bond for two or more warehouses

(f)

Definitions

For purposes of this section—

(1)

the term “metal-bearing materials” means metal-bearing ores and other metal-bearing materials provided for in chapter 26 of the Harmonized Tariff Schedule of the United States, metal waste and scrap and unwrought metal to be smelted or refined provided for in chapters 71 through 83 of the Harmonized Tariff Schedule of the United States, and metal compounds to be processed for the recovery of their metal content;

(2)

the term “smelting or refining” embraces only pyrometallurgical, hydrometallurgical, electrometallurgical, chemical, or other processes—

(A)

for the treatment of metal-bearing materials to reduce the metal content thereof to a metallic state in the course of recovering it in forms which if imported would be classifiable in chapters 71 through 83 of the Harmonized Tariff Schedule of the United States as unwrought metal, or in the form of oxides or other compounds which are obtained directly from the treatment of materials provided for in chapter 26 of the Harmonized Tariff Schedule of the United States, and

(B)

for the treatment of unwrought metal or metal waste and scrap to remove impurities or undesired components; and

(3)

the term “product of smelting or refining” means metals or metal-bearing materials resulting directly from smelting or refining processes, but does not include metal-bearing ores of chapter 26 of the Harmonized Tariff Schedule of the United States.

(g)

Supervision and cost of labor under this section

(June 17, 1930, ch. 497, title III, § 312, 46 Stat. 692; Pub. L. 87–456, title III, § 301(b), May 24, 1962, 76 Stat. 75; Pub. L. 100–418, title I, § 1214(h)(1), Aug. 23, 1988, 102 Stat. 1157; Pub. L. 100–449, title II, § 204(c)(2), Sept. 28, 1988, 102 Stat. 1862; Pub. L. 103–182, title II, § 203(b)(2), Dec. 8, 1993, 107 Stat. 2088; Pub. L. 108–77, title II, § 203(b)(2), Sept. 3, 2003, 117 Stat. 925; Pub. L. 116–113, title V, § 501(e)(2), Jan. 29, 2020, 134 Stat. 68; Pub. L. 116–260, div. O, title VI, § 601(c)(2)(A)(ii), Dec. 27, 2020, 134 Stat. 2150.)

cite as: 19 USC 1312

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