UNCLAIMED MERCHANDISE.

SEC. 659. UNCLAIMED MERCHANDISE. Section 491 (19 U.S.C. 1491) is amended— (1) by amending subsection (a)— (A) by striking out “customs custody for one year” in the first sentence and inserting “in a bonded warehouse pursuant to section 490 for 6 months”, (B) by striking out “public store or bonded warehouse for a period of one year” in the second sentence and inserting “pursuant to section 490 in a bonded warehouse for 6 months”, (C) by striking out “estimated duties and storage” in the first sentence and inserting “estimated duties, taxes, fees, interest, storage,”, (D) by inserting “taxes, fees, interest,” after “duties,” wherever it appears, and (E) by striking out “duties” in the last sentence and inserting “duties, taxes, interest, and fees”; and (2) by redesignating subsection (b) as subsection (e) and inserting after subsection (a) the following new subsections: “(b) Notice of Title Vesting in the United States.— At the end of the 6-month period referred to in subsection (a), the Customs Service may, in lieu of sale of the merchandise, provide notice to all known interested parties that the title to such merchandise shall be considered to vest in the United States free and clear of any liens or encumbrances, on the 30th day after the date of the notice unless, before such 30th day— “(1) the subject merchandise is entered or withdrawn for consumption; and “(2) payment is made of all duties, taxes, fees, transfer and storage charges, and other expenses that may have accrued thereon. “(c) Retention, Transfer, Destruction, or Other Disposition.— If title to any merchandise vests in the United States by operation of subsection (b), such merchandise may be retained 107 STAT. 2214by the Customs Service for official use, transferred to any other Federal agency or to any State or local agency, destroyed, or otherwise disposed of in accordance with such regulations as the Secretary shall prescribe. All transfer and storage charges or expenses accruing on retained or transferred merchandise shall be paid by the receiving agency. “(d) Petition.— Whenever any party, having lost a substantial interest in merchandise by virtue of title vesting in the United States under subsection (b), can establish such title or interest to the satisfaction of the Secretary within 30 days after the day on which title vests in the United States under subsection (b), or can establish to the satisfaction of the Secretary that the party did not receive notice under subsection (b), the Secretary may, upon receipt of a timely and proper petition and upon finding that the facts and circumstances warrant, pay such party out of the Treasury of the United States the amount the Secretary believes the party would have received under section 493 had the merchandise been sold and a proper claim filed. The decision of the Secretary with respect to any such petition is final and conclusive on all parties.”; and (3) by amending subsection (e) (as so redesignated) by striking out “appropriate customs officer” in paragraph (3) and inserting “Customs Service”.