```

[House Report 114-146]
[From the U.S. Government Publishing Office]

114th Congress   }                                      {        Report
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                      {       114-146

======================================================================

 
 PROVIDING FOR CONSIDERATION OF THE SENATE AMENDMENT TO THE BILL (H.R. 
1314) TO AMEND THE INTERNAL REVENUE CODE OF 1986 TO PROVIDE FOR A RIGHT 
 TO AN ADMINISTRATIVE APPEAL RELATING TO ADVERSE DETERMINATIONS OF TAX-
EXEMPT STATUS OF CERTAIN ORGANIZATIONS, AND PROVIDING FOR CONSIDERATION 
 OF THE SENATE AMENDMENTS TO THE BILL (H.R. 644) TO AMEND THE INTERNAL 
 REVENUE CODE OF 1986 TO PERMANENTLY EXTEND AND EXPAND THE CHARITABLE 
             DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY

                                _______
                                

   June 11 (legislative day, June 10), 2015.--Referred to the House 
                   Calendar and ordered to be printed

                                _______
                                

              Mr. Sessions, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 305]

    The Committee on Rules, having had under consideration 
House Resolution 305, by a record vote of 9 to 4, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for the consideration of the Senate 
amendment to H.R. 1314, the Trade Act of 2015. The resolution 
makes in order a motion offered by the chair of the Committee 
on Ways and Means or his designee that the House concur in the 
Senate amendment to H.R. 1314. The resolution waives all points 
of order against consideration of the motion. The resolution 
provides that the Senate amendment and the motion shall be 
considered as read. The resolution provides one hour of debate 
on the motion equally divided and controlled by the chair and 
ranking minority member of the Committee on Ways and Means. The 
resolution provides that the question on adoption of the motion 
shall be divided as follows: (1) concurring in section 212 of 
the Senate amendment; (2) concurring in the matter comprising 
the remainder of title II of the Senate amendment; and (3) 
concurring in the matter preceding title II of the Senate 
amendment. The resolution provides that the first portion of 
the divided question shall be considered as adopted. The 
resolution provides that if any remaining portion of the 
divided question fails, then the House shall be considered to 
have made no disposition of the Senate amendment.
    Section 2 of the resolution provides for the consideration 
of the Senate amendments to H.R. 644. The resolution makes in 
order a single motion offered by the chair of the Committee on 
Ways and Means or his designee that the House: (1) concur in 
the Senate amendment to the title; and (2) concur in the Senate 
amendment to the text with the amendment printed in part A of 
this report modified by the amendment printed in part B of this 
report. The resolution waives all points of order against 
consideration of the motion and provides that the motion is not 
subject to a demand for division of the question. The 
resolution provides that the Senate amendments and the motion 
shall be considered as read. The resolution provides one hour 
of debate on the motion equally divided and controlled by the 
chair and ranking minority member of the Committee on Ways and 
Means. The resolution provides that if the motion is adopted, 
the chair of the Committee on Ways and Means or his designee is 
then authorized to move that the House insist on its amendment 
to the Senate amendment to the text of H.R. 644 and request a 
conference with the Senate thereon.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the motion related to H.R. 1314 includes a waiver of section 
306 of the Congressional Budget Act of 1974, which prohibits 
consideration of legislation within the jurisdiction of the 
Committee on the Budget unless referred to or reported by the 
Budget Committee.
    Although the resolution waives all points of order against 
consideration of the motion related to H.R. 644, the Committee 
is not aware of any points of order. The waiver is prophylactic 
in nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 64

    Motion by Ms. Slaughter to make in order and provide the 
appropriate waivers for amendment #18 to H.R. 1314, offered by 
Rep. Slaughter (NY), Rep. Pascrell Jr. (NJ), Rep. Edwards (MD), 
Rep. DeFazio (OR), and Rep. DeLauro (CT), which prohibits fast 
track for trade agreements that permit the import of food, 
feed, or food ingredients or products that do not meet or 
exceed U.S. standards with respect to food safety, pesticides, 
inspections, packaging, and labeling into the United States 
from a country that is a party to the trade agreement. 
Defeated: 4-9

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Ms. Slaughter.....................          Yea
Mr. Cole........................................          Nay   Mr. McGovern......................          Yea
Mr. Woodall.....................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Burgess.....................................          Nay   Mr. Polis.........................          Yea
Mr. Stivers.....................................          Nay
Mr. Collins.....................................          Nay
Mr. Byrne.......................................          Nay
Mr. Newhouse....................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 65

    Motion by Mr. McGovern to amend the rule so that the Ryan 
amendments to H.R. 644 and H.R. 1295, as well as the Senate 
amendment to H.R. 1314, are all subject to amendment on the 
floor, and considered under an open process. Defeated: 4-9

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Ms. Slaughter.....................          Yea
Mr. Cole........................................          Nay   Mr. McGovern......................          Yea
Mr. Woodall.....................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Burgess.....................................          Nay   Mr. Polis.........................          Yea
Mr. Stivers.....................................          Nay
Mr. Collins.....................................          Nay
Mr. Byrne.......................................          Nay
Mr. Newhouse....................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 66

    Motion by Mr. McGovern to make in order and provide the 
appropriate waivers for amendments to H.R. 1314: amendment #20, 
offered by Rep. Doggett (TX), which ensures maximum 
accessibility to trade texts; amendment #21, offered by Rep. 
Doggett (TX), which strips fast track authority from any 
agreement that fails to improve the investor state dispute 
settlement system; and amendment #22, offered by Rep. Doggett 
(TX) and Rep. Tonko (NY), which strips fast track authority 
from an agreement that fails to require the parties to adopt, 
maintain, and implement all seven multilateral environmental 
agreements. Defeated: 4-9

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Ms. Slaughter.....................          Yea
Mr. Cole........................................          Nay   Mr. McGovern......................          Yea
Mr. Woodall.....................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Burgess.....................................          Nay   Mr. Polis.........................          Yea
Mr. Stivers.....................................          Nay
Mr. Collins.....................................          Nay
Mr. Byrne.......................................          Nay
Mr. Newhouse....................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 67

    Motion by Mr. Hastings of Florida to make in order and 
provide the appropriate waivers for amendments to H.R. 1314: 
amendment #1, offered by Rep. Pocan (WI), Rep. Slaughter (NY), 
and Rep. DeFazio (OR), which prevents fast-track procedures in 
the underlying bill from applying to trade deals that include 
Investor-State Dispute Settlements (ISDS) provisions, which 
allow foreign companies to challenge U.S. laws and undermine 
U.S. sovereignty; amendment #9, offered by Rep. Lipinski (IL) 
and Rep. Jones (NC), which provides that protecting Buy 
American, Buy America, and Buy Local provisions are negotiating 
objectives for the United States Trade Representative as it 
negotiates free trade agreements under this bill; amendment 
#16, offered by Rep. Levin (MI), which ensures that fast track 
procedures only apply to the Trans-Pacific Partnership if, 
among other things, Congress determines that the final 
agreement satisfies detailed negotiating instructions regarding 
the outstanding issues in the negotiations; amendment #24, 
offered by Rep. Tonko (NY), which adds climate change 
mitigation to the labor and environment negotiating objectives; 
amendment #25, offered by Rep. Cicilline (RI), Rep. Maloney 
(NY), Rep. Pocan (WI), Rep. Sanchez (CA), and Rep. Lynch (MA), 
which prohibits the President from entering into trade 
agreements under this act with countries that have an 
established penal code that legalizes violence, 
criminalization, or execution of lesbian, gay, bisexual and 
transgendered individuals by reason of their actual or 
perceived sexual orientation or gender identity; amendment #27, 
offered by Rep. Lewis (GA) and Rep. Edwards (MD), which 
provides instructions on labor and human rights and add a 
procedure where, if appropriate, human rights legislation may 
be added to an implementing bill; and amendment #61, offered by 
Rep. Becerra (CA), which provides that fast track procedures 
will not apply to a trade agreement that does not include 
explicit protections for government health policies and 
programs, such as Medicare and Medicaid, from investment 
disputes. Defeated: 4-9

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Ms. Slaughter.....................          Yea
Mr. Cole........................................          Nay   Mr. McGovern......................          Yea
Mr. Woodall.....................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Burgess.....................................          Nay   Mr. Polis.........................          Yea
Mr. Stivers.....................................          Nay
Mr. Collins.....................................          Nay
Mr. Byrne.......................................          Nay
Mr. Newhouse....................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 68

    Motion by Mr. Hastings of Florida to make in order and 
provide the appropriate waivers for amendment #26 to H.R. 1314, 
offered by Rep. Clawson (FL), Rep. Mulvaney (SC), Rep. Maloney 
(NY), Rep. Norcross (NJ), Rep. Tonko (NY), Rep. Pocan (WI), 
Rep. Perry (PA), Rep. Sensenbrenner Jr. (WI), Rep. Kaptur (OH), 
Rep. Dingell (MI), Rep. Walberg (MI), Rep. Duncan (SC), Rep. 
Slaughter (NY), Rep. Jones (NC), Rep. Brat (VA), Rep. Posey 
(FL), Rep. Brooks (AL), Rep. Kennedy (MA), Rep. Lawrence (MI), 
Rep. Franks (AZ), Rep. Kelly (IL), and Rep. Kildee (MI), which 
addresses the practice of currency manipulation in trade 
agreements. Defeated: 4-9

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Ms. Slaughter.....................          Yea
Mr. Cole........................................          Nay   Mr. McGovern......................          Yea
Mr. Woodall.....................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Burgess.....................................          Nay   Mr. Polis.........................          Yea
Mr. Stivers.....................................          Nay
Mr. Collins.....................................          Nay
Mr. Byrne.......................................          Nay
Mr. Newhouse....................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 69

    Motion by Mr. Polis to make in order and provide the 
appropriate waivers for amendments to H.R. 1314: amendment #3, 
offered by Rep. Polis (CO), which sets out limitations and 
exceptions to exclusive rights as principal negotiating 
objectives with regard to trade-related intellectual property; 
amendment #4, offered by Rep. Polis (CO), which amends the 
underlying bill to include the prohibition of illegal trade in 
wildlife, timber, and marine resources as a negotiating 
objective; amendment #5, offered by Rep. Polis (CO), which 
requires the President to study the impacts of any new free 
trade agreement on global greenhouse gas emissions; amendment 
#7, offered by Rep. Polis (CO), which clarifies that foreign 
investors do not receive greater rights than domestic investors 
in trade agreements; and amendment #8, offered by Rep. Polis 
(CO), which clarifies that no foreign corporation has the right 
to repeal state, federal or local laws, including laws 
pertaining to public health and safety; as well as amendment #5 
to H.R. 644, offered by Rep. Polis (CO), which expresses the 
sense of congress that the U.S. Trade Representative (USTR) 
should encourage other nations to follow the lead of the U.S. 
by increasing de minimis values to a commercially meaningful 
level. Defeated: 4-9

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Ms. Slaughter.....................          Yea
Mr. Cole........................................          Nay   Mr. McGovern......................          Yea
Mr. Woodall.....................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Burgess.....................................          Nay   Mr. Polis.........................          Yea
Mr. Stivers.....................................          Nay
Mr. Collins.....................................          Nay
Mr. Byrne.......................................          Nay
Mr. Newhouse....................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 70

    Motion by Ms. Foxx to report the rule. Adopted: 9-4

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Yea   Ms. Slaughter.....................          Nay
Mr. Cole........................................          Yea   Mr. McGovern......................          Nay
Mr. Woodall.....................................          Yea   Mr. Hastings of Florida...........          Nay
Mr. Burgess.....................................          Yea   Mr. Polis.........................          Nay
Mr. Stivers.....................................          Yea
Mr. Collins.....................................          Yea
Mr. Byrne.......................................          Yea
Mr. Newhouse....................................          Yea
Mr. Sessions, Chairman..........................          Yea
----------------------------------------------------------------------------------------------------------------

SUMMARY OF THE HOUSE AMENDMENT IN PART A TO THE SENATE AMENDMENT TO THE 
                            TEXT OF H.R. 644

    Establishes U.S. Customs and Border Protection (CBP), 
provides tools to streamline and facilitate legitimate trade, 
improve trade enforcement, and measure progress within CBP. 
Strengthens Trade Promotion Authority (TPA) legislation and 
bolsters U.S.-Israel trade and commercial ties.

      SUMMARY OF THE MODIFICATION IN PART B TO THE HOUSE AMENDMENT

    Improves the currency title by reducing the 
Administration's discretion and clearly directing action by the 
Administration to address unfair currency practices. Requires 
the Administration to issue clear guidance on how it intends to 
assess the objective criteria within 90 days of the Amendment's 
enactment.

PART A--TEXT OF THE HOUSE AMENDMENT TO THE SENATE AMENDMENT TO THE TEXT 
                              OF H.R. 644

  In lieu of the matter proposed to be inserted by the 
amendment of the Senate to the text of the bill, insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Trade 
Facilitation and Trade Enforcement Act of 2015''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

            TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT

Sec. 101. Improving partnership programs.
Sec. 102. Report on effectiveness of trade enforcement activities.
Sec. 103. Priorities and performance standards for customs 
          modernization, trade facilitation, and trade enforcement 
          functions and programs.
Sec. 104. Educational seminars to improve efforts to classify and 
          appraise imported articles, to improve trade enforcement 
          efforts, and to otherwise facilitate legitimate international 
          trade.
Sec. 105. Joint strategic plan.
Sec. 106. Automated Commercial Environment.
Sec. 107. International Trade Data System.
Sec. 108. Consultations with respect to mutual recognition arrangements.
Sec. 109. Commercial Customs Operations Advisory Committee.
Sec. 110. Centers of Excellence and Expertise.
Sec. 111. Commercial risk assessment targeting and trade alerts.
Sec. 112. Report on oversight of revenue protection and enforcement 
          measures.
Sec. 113. Report on security and revenue measures with respect to 
          merchandise transported in bond.
Sec. 114. Importer of record program.
Sec. 115. Establishment of new importer program.
Sec. 116. Customs broker identification of importers.
Sec. 117. Requirements applicable to non-resident importers.
Sec. 118. Priority trade issues.
Sec. 119. Appropriate congressional committees defined.

                   TITLE II--IMPORT HEALTH AND SAFETY

Sec. 201. Interagency import safety working group.
Sec. 202. Joint import safety rapid response plan.
Sec. 203. Training.

  TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

Sec. 301. Definition of intellectual property rights.
Sec. 302. Exchange of information related to trade enforcement.
Sec. 303. Seizure of circumvention devices.
Sec. 304. Enforcement by U.S. Customs and Border Protection of works for 
          which copyright registration is pending.
Sec. 305. National Intellectual Property Rights Coordination Center.
Sec. 306. Joint strategic plan for the enforcement of intellectual 
          property rights.
Sec. 307. Personnel dedicated to the enforcement of intellectual 
          property rights.
Sec. 308. Training with respect to the enforcement of intellectual 
          property rights.
Sec. 309. International cooperation and information sharing.
Sec. 310. Report on intellectual property rights enforcement.
Sec. 311. Information for travelers regarding violations of intellectual 
          property rights.

 TITLE IV--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY 
                                 ORDERS

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Application to Canada and Mexico.

    Subtitle A--Actions Relating to Enforcement of Trade Remedy Laws

Sec. 411. Trade remedy law enforcement division.
Sec. 412. Collection of information on evasion of trade remedy laws.
Sec. 413. Access to information.
Sec. 414. Cooperation with foreign countries on preventing evasion of 
          trade remedy laws.
Sec. 415. Trade negotiating objectives.

        Subtitle B--Investigation of Evasion of Trade Remedy Laws

Sec. 421. Procedures for investigation of evasion of antidumping and 
          countervailing duty orders.
Sec. 422. Government Accountability Office report.

                        Subtitle C--Other Matters

Sec. 431. Allocation and training of personnel.
Sec. 432. Annual report on prevention of evasion of antidumping and 
          countervailing duty orders.
Sec. 433. Addressing circumvention by new shippers.

    TITLE V--IMPROVEMENTS TO ANTIDUMPING AND COUNTERVAILING DUTY LAWS

Sec. 501. Short title.
Sec. 502. Consequences of failure to cooperate with a request for 
          information in a proceeding.
Sec. 503. Definition of material injury.
Sec. 504. Particular market situation.
Sec. 505. Distortion of prices or costs.
Sec. 506. Reduction in burden on Department of Commerce by reducing the 
          number of voluntary respondents.
Sec. 507. Application to Canada and Mexico.

               TITLE VI--ADDITIONAL ENFORCEMENT PROVISIONS

Sec. 601. Trade enforcement priorities.
Sec. 602. Exercise of WTO authorization to suspend concessions or other 
          obligations under trade agreements.
Sec. 603. Trade monitoring.

                    TITLE VII--CURRENCY MANIPULATION

Sec. 701. Enhancement of engagement on currency exchange rate and 
          economic policies with certain major trading partners of the 
          United States.
Sec. 702. Advisory Committee on International Exchange Rate Policy.

     TITLE VIII--ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION

Sec. 801. Short title.
Sec. 802. Establishment of U.S. Customs and Border Protection.

                   TITLE IX--MISCELLANEOUS PROVISIONS

Sec. 901. De minimis value.
Sec. 902. Consultation on trade and customs revenue functions.
Sec. 903. Penalties for customs brokers.
Sec. 904. Amendments to chapter 98 of the Harmonized Tariff Schedule of 
          the United States.
Sec. 905. Exemption from duty of residue of bulk cargo contained in 
          instruments of international traffic previously exported from 
          the United States.
Sec. 906. Drawback and refunds.
Sec. 907. Office of the United States Trade Representative.
Sec. 908. United States-Israel Trade and Commercial Enhancement.
Sec. 909. Elimination of consumptive demand exception to prohibition on 
          importation of goods made with convict labor, forced labor, or 
          indentured labor; report.
Sec. 910. Customs user fees.
Sec. 911. Report on certain U.S. Customs and Border Protection 
          agreements.
Sec. 912. Amendments to Bipartisan Congressional Trade Priorities and 
          Accountability Act of 2015.
Sec. 913. Certain interest to be included in distributions under 
          Continued Dumping and Subsidy Offset Act of 2000.
Sec. 914. Report on competitiveness of U.S. recreational performance 
          outerwear industry.
Sec. 915. Increase in penalty for failure to file return of tax.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Automated commercial environment.--The term 
        ``Automated Commercial Environment'' means the 
        Automated Commercial Environment computer system 
        authorized under section 13031(f)(4) of the 
        Consolidated Omnibus Budget Reconciliation Act of 1985 
        (19 U.S.C. 58c(f)(4)).
          (2) Commissioner.--The term ``Commissioner'' means 
        the Commissioner of U.S. Customs and Border Protection, 
        as described in section 411(b) of the Homeland Security 
        Act of 2002, as added by section 802(a) of this Act.
          (3) Customs and trade laws of the united states.--The 
        term ``customs and trade laws of the United States'' 
        includes the following:
                  (A) The Tariff Act of 1930 (19 U.S.C. 1202 et 
                seq.).
                  (B) Section 249 of the Revised Statutes (19 
                U.S.C. 3).
                  (C) Section 2 of the Act of March 4, 1923 (42 
                Stat. 1453, chapter 251; 19 U.S.C. 6).
                  (D) The Act of March 3, 1927 (44 Stat. 1381, 
                chapter 348; 19 U.S.C. 2071 et seq.).
                  (E) Section 13031 of the Consolidated Omnibus 
                Budget Reconciliation Act of 1985 (19 U.S.C. 
                58c).
                  (F) Section 251 of the Revised Statutes (19 
                U.S.C. 66).
                  (G) Section 1 of the Act of June 26, 1930 (46 
                Stat. 817, chapter 617; 19 U.S.C. 68).
                  (H) The Foreign Trade Zones Act (19 U.S.C. 
                81a et seq.).
                  (I) Section 1 of the Act of March 2, 1911 (36 
                Stat. 965, chapter 191; 19 U.S.C. 198).
                  (J) The Trade Act of 1974 (19 U.S.C. 2102 et 
                seq.).
                  (K) The Trade Agreements Act of 1979 (19 
                U.S.C. 2501 et seq.).
                  (L) The North American Free Trade Agreement 
                Implementation Act (19 U.S.C. 3301 et seq.).
                  (M) The Uruguay Round Agreements Act (19 
                U.S.C. 3501 et seq.).
                  (N) The Caribbean Basin Economic Recovery Act 
                (19 U.S.C. 2701 et seq.).
                  (O) The Andean Trade Preference Act (19 
                U.S.C. 3201 et seq.).
                  (P) The African Growth and Opportunity Act 
                (19 U.S.C. 3701 et seq.).
                  (Q) The Customs Enforcement Act of 1986 
                (Public Law 99-570; 100 Stat. 3207-79).
                  (R) The Customs and Trade Act of 1990 (Public 
                Law 101-382; 104 Stat. 629).
                  (S) The Customs Procedural Reform and 
                Simplification Act of 1978 (Public Law 95-410; 
                92 Stat. 888).
                  (T) The Trade Act of 2002 (Public Law 107-
                210; 116 Stat. 933).
                  (U) The Convention on Cultural Property 
                Implementation Act (19 U.S.C. 2601 et seq.).
                  (V) The Act of March 28, 1928 (45 Stat. 374, 
                chapter 266; 19 U.S.C. 2077 et seq.).
                  (W) The Act of August 7, 1939 (53 Stat. 1263, 
                chapter 566).
                  (X) Any other provision of law implementing a 
                trade agreement.
                  (Y) Any other provision of law vesting 
                customs revenue functions in the Secretary of 
                the Treasury.
                  (Z) Any other provision of law relating to 
                trade facilitation or trade enforcement that is 
                administered by U.S. Customs and Border 
                Protection on behalf of any Federal agency that 
                is required to participate in the International 
                Trade Data System.
                  (AA) Any other provision of customs or trade 
                law administered by U.S. Customs and Border 
                Protection or U.S. Immigration and Customs 
                Enforcement.
          (4) Private sector entity.--The term ``private sector 
        entity'' means--
                  (A) an importer;
                  (B) an exporter;
                  (C) a forwarder;
                  (D) an air, sea, or land carrier or shipper;
                  (E) a contract logistics provider;
                  (F) a customs broker; or
                  (G) any other person (other than an employee 
                of a government) affected by the implementation 
                of the customs and trade laws of the United 
                States.
          (5) Trade enforcement.--The term ``trade 
        enforcement'' means the enforcement of the customs and 
        trade laws of the United States.
          (6) Trade facilitation.--The term ``trade 
        facilitation'' refers to policies and activities of 
        U.S. Customs and Border Protection with respect to 
        facilitating the movement of merchandise into and out 
        of the United States in a manner that complies with the 
        customs and trade laws of the United States.

           TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT

SEC. 101. IMPROVING PARTNERSHIP PROGRAMS.

  (a) In General.--In order to advance the security, trade 
enforcement, and trade facilitation missions of U.S. Customs 
and Border Protection, the Commissioner shall ensure that 
partnership programs of U.S. Customs and Border Protection 
established before the date of the enactment of this Act, such 
as the Customs-Trade Partnership Against Terrorism established 
under subtitle B of title II of the Security and Accountability 
for Every Port Act of 2006 (6 U.S.C. 961 et seq.), and 
partnership programs of U.S. Customs and Border Protection 
established on or after such date of enactment, provide trade 
benefits to private sector entities that meet the requirements 
for participation in those programs established by the 
Commissioner under this section.
  (b) Elements.--In developing and operating partnership 
programs under subsection (a), the Commissioner shall--
          (1) consult with private sector entities, the public, 
        and other Federal agencies when appropriate, to ensure 
        that participants in those programs receive 
        commercially significant and measurable trade benefits, 
        including providing pre-clearance of merchandise for 
        qualified persons that demonstrate the highest levels 
        of compliance with the customs and trade laws of the 
        United States, regulations of U.S. Customs and Border 
        Protection, and other requirements the Commissioner 
        determines to be necessary;
          (2) ensure an integrated and transparent system of 
        trade benefits and compliance requirements for all 
        partnership programs of U.S. Customs and Border 
        Protection;
          (3) consider consolidating partnership programs in 
        situations in which doing so would support the 
        objectives of such programs, increase participation in 
        such programs, enhance the trade benefits provided to 
        participants in such programs, and enhance the 
        allocation of the resources of U.S. Customs and Border 
        Protection;
          (4) coordinate with the Director of U.S. Immigration 
        and Customs Enforcement, and other Federal agencies 
        with authority to detain and release merchandise 
        entering the United States--
                  (A) to ensure coordination in the release of 
                such merchandise through the Automated 
                Commercial Environment, or its predecessor, and 
                the International Trade Data System;
                  (B) to ensure that the partnership programs 
                of those agencies are compatible with the 
                partnership programs of U.S. Customs and Border 
                Protection;
                  (C) to develop criteria for authorizing the 
                release, on an expedited basis, of merchandise 
                for which documentation is required from one or 
                more of those agencies to clear or license the 
                merchandise for entry into the United States; 
                and
                  (D) to create pathways, within and among the 
                appropriate Federal agencies, for qualified 
                persons that demonstrate the highest levels of 
                compliance with the customs and trade laws of 
                the United States to receive immediate 
                clearance absent information that a transaction 
                may pose a national security or compliance 
                threat; and
          (5) ensure that trade benefits are provided to 
        participants in partnership programs.
  (c) Report Required.--Not later than the date that is 180 
days after the date of the enactment of this Act, and not later 
than December 31 of each calendar year thereafter, the 
Commissioner shall submit to the appropriate congressional 
committees a report that--
          (1) identifies each partnership program referred to 
        in subsection (a);
          (2) for each such program, identifies--
                  (A) the requirements for participants in the 
                program;
                  (B) the commercially significant and 
                measurable trade benefits provided to 
                participants in the program;
                  (C) the number of participants in the 
                program; and
                  (D) in the case of a program that provides 
                for participation at multiple tiers, the number 
                of participants at each such tier;
          (3) identifies the number of participants enrolled in 
        more than one such partnership program;
          (4) assesses the effectiveness of each such 
        partnership program in advancing the security, trade 
        enforcement, and trade facilitation missions of U.S. 
        Customs and Border Protection, based on historical 
        developments, the level of participation in the 
        program, and the evolution of benefits provided to 
        participants in the program;
          (5) summarizes the efforts of U.S. Customs and Border 
        Protection to work with other Federal agencies with 
        authority to detain and release merchandise entering 
        the United States to ensure that partnership programs 
        of those agencies are compatible with partnership 
        programs of U.S. Customs and Border Protection;
          (6) summarizes criteria developed with those agencies 
        for authorizing the release, on an expedited basis, of 
        merchandise for which documentation is required from 
        one or more of those agencies to clear or license the 
        merchandise for entry into the United States;
          (7) summarizes the efforts of U.S. Customs and Border 
        Protection to work with private sector entities and the 
        public to develop and improve partnership programs 
        referred to in subsection (a);
          (8) describes measures taken by U.S. Customs and 
        Border Protection to make private sector entities aware 
        of the trade benefits available to participants in such 
        programs; and
          (9) summarizes the plans, targets, and goals of U.S. 
        Customs and Border Protection with respect to such 
        programs for the 2 years following the submission of 
        the report.

SEC. 102. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT ACTIVITIES.

  (a) In General.--Not later than one year after the date of 
the enactment of this Act, the Comptroller General of the 
United States shall submit to the appropriate congressional 
committees a report on the effectiveness of trade enforcement 
activities of U.S. Customs and Border Protection.
  (b) Contents.--The report required by subsection (a) shall 
include--
          (1) a description of the use of resources, results of 
        audits and verifications, targeting, organization, and 
        training of personnel of U.S. Customs and Border 
        Protection; and
          (2) a description of trade enforcement activities to 
        address undervaluation, transshipment, legitimacy of 
        entities making entry, protection of revenues, fraud 
        prevention and detection, and penalties, including 
        intentional misclassification, inadequate bonding, and 
        other misrepresentations.

SEC. 103. PRIORITIES AND PERFORMANCE STANDARDS FOR CUSTOMS 
                    MODERNIZATION, TRADE FACILITATION, AND TRADE 
                    ENFORCEMENT FUNCTIONS AND PROGRAMS.

  (a) Priorities and Performance Standards.--
          (1) In general.--The Commissioner, in consultation 
        with the appropriate congressional committees, shall 
        establish priorities and performance standards to 
        measure the development and levels of achievement of 
        the customs modernization, trade facilitation, and 
        trade enforcement functions and programs described in 
        subsection (b).
          (2) Minimum priorities and standards.--Such 
        priorities and performance standards shall, at a 
        minimum, include priorities and standards relating to 
        efficiency, outcome, output, and other types of 
        applicable measures.
  (b) Functions and Programs Described.--The functions and 
programs referred to in subsection (a) are the following:
          (1) The Automated Commercial Environment.
          (2) Each of the priority trade issues described in 
        section 118.
          (3) The Centers of Excellence and Expertise described 
        in section 110.
          (4) Drawback for exported merchandise under section 
        313 of the Tariff Act of 1930 (19 U.S.C. 1313), as 
        amended by section 906 of this Act.
          (5) Transactions relating to imported merchandise in 
        bond.
          (6) Collection of countervailing duties assessed 
        under subtitle A of title VII of the Tariff Act of 1930 
        (19 U.S.C. 1671 et seq.) and antidumping duties 
        assessed under subtitle B of title VII of the Tariff 
        Act of 1930 (19 U.S.C. 1673 et seq.).
          (7) The expedited clearance of cargo.
          (8) The issuance of regulations and rulings.
          (9) The issuance of Regulatory Audit Reports.
  (c) Consultations and Notification.--
          (1) Consultations.--The consultations required by 
        subsection (a)(1) shall occur, at a minimum, on an 
        annual basis.
          (2) Notification.--The Commissioner shall notify the 
        appropriate congressional committees of any changes to 
        the priorities referred to in subsection (a) not later 
        than 30 days before such changes are to take effect.

SEC. 104. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS TO CLASSIFY AND 
                    APPRAISE IMPORTED ARTICLES, TO IMPROVE TRADE 
                    ENFORCEMENT EFFORTS, AND TO OTHERWISE FACILITATE 
                    LEGITIMATE INTERNATIONAL TRADE.

  (a) In General.--
          (1) Establishment.--The Commissioner and the Director 
        shall establish and carry out on a fiscal year basis 
        educational seminars to--
                  (A) improve the ability of U.S. Customs and 
                Border Protection personnel to classify and 
                appraise articles imported into the United 
                States in accordance with the customs and trade 
                laws of the United States;
                  (B) improve the trade enforcement efforts of 
                U.S. Customs and Border Protection personnel 
                and U.S. Immigration and Customs Enforcement 
                personnel; and
                  (C) otherwise improve the ability and 
                effectiveness of U.S. Customs and Border 
                Protection personnel and U.S. Immigration and 
                Customs Enforcement personnel to facilitate 
                legitimate international trade.
  (b) Content.--
          (1) Classifying and appraising imported articles.--In 
        carrying out subsection (a)(1)(A), the Commissioner, 
        the Director, and interested parties in the private 
        sector selected under subsection (c) shall provide 
        instruction and related instructional materials at each 
        educational seminar under this section to U.S. Customs 
        and Border Protection personnel and, as appropriate, to 
        U.S. Immigration and Customs Enforcement personnel on 
        the following:
                  (A) Conducting a physical inspection of an 
                article imported into the United States, 
                including testing of samples of the article, to 
                determine if the article is mislabeled in the 
                manifest or other accompanying documentation.
                  (B) Reviewing the manifest and other 
                accompanying documentation of an article 
                imported into the United States to determine if 
                the country of origin of the article listed in 
                the manifest or other accompanying 
                documentation is accurate.
                  (C) Customs valuation.
                  (D) Industry supply chains and other related 
                matters as determined to be appropriate by the 
                Commissioner.
          (2) Trade enforcement efforts.--In carrying out 
        subsection (a)(1)(B), the Commissioner, the Director, 
        and interested parties in the private sector selected 
        under subsection (c) shall provide instruction and 
        related instructional materials at each educational 
        seminar under this section to U.S. Customs and Border 
        Protection personnel and, as appropriate, to U.S. 
        Immigration and Customs Enforcement personnel to 
        identify opportunities to enhance enforcement of the 
        following:
                  (A) Collection of countervailing duties 
                assessed under subtitle A of title VII of the 
                Tariff Act of 1930 (19 U.S.C. 1671 et seq.) and 
                antidumping duties assessed under subtitle B of 
                title VII of the Tariff Act of 1930 (19 U.S.C. 
                1673 et seq.).
                  (B) Addressing evasion of duties on imports 
                of textiles.
                  (C) Protection of intellectual property 
                rights.
                  (D) Enforcement of child labor laws.
          (3) Approval of commissioner and director.--The 
        instruction and related instructional materials at each 
        educational seminar under this section shall be subject 
        to the approval of the Commissioner and the Director.
  (c) Selection Process.--
          (1) In general.--The Commissioner shall establish a 
        process to solicit, evaluate, and select interested 
        parties in the private sector for purposes of assisting 
        in providing instruction and related instructional 
        materials described in subsection (b) at each 
        educational seminar under this section.
          (2) Criteria.--The Commissioner shall evaluate and 
        select interested parties in the private sector under 
        the process established under paragraph (1) based on--
                  (A) availability and usefulness;
                  (B) the volume, value, and incidence of 
                mislabeling or misidentification of origin of 
                imported articles; and
                  (C) other appropriate criteria established by 
                the Commissioner.
          (3) Public availability.--The Commissioner and the 
        Director shall publish in the Federal Register a 
        detailed description of the process established under 
        paragraph (1) and the criteria established under 
        paragraph (2).
  (d) Special Rule for Antidumping and Countervailing Duty 
Orders.--
          (1) In general.--The Commissioner shall give due 
        consideration to carrying out an educational seminar 
        under this section in whole or in part to improve the 
        ability of U.S. Customs and Border Protection personnel 
        to enforce a countervailing or antidumping duty order 
        issued under section 706 or 736 of the Tariff Act of 
        1930 (19 U.S.C. 1671e or 1673e) upon the request of a 
        petitioner in an action underlying such countervailing 
        or antidumping duty order.
          (2) Interested party.--A petitioner described in 
        paragraph (1) shall be treated as an interested party 
        in the private sector for purposes of the requirements 
        of this section.
  (e) Performance Standards.--The Commissioner and the Director 
shall establish performance standards to measure the 
development and level of achievement of educational seminars 
under this section.
  (f) Reporting.--Beginning September 30, 2016, the 
Commissioner and the Director shall submit to the appropriate 
congressional committees an annual report on the effectiveness 
of educational seminars under this section.
  (g) Definitions.--In this section:
          (1) Director.--The term ``Director'' means the 
        Director of U.S. Immigration and Customs Enforcement.
          (2) United states.--The term ``United States'' means 
        the customs territory of the United States, as defined 
        in General Note 2 to the Harmonized Tariff Schedule of 
        the United States.
          (3) U.S. customs and border protection personnel.--
        The term ``U.S. Customs and Border Protection 
        personnel'' means import specialists, auditors, and 
        other appropriate employees of the U.S. Customs and 
        Border Protection.
          (4) U.S. immigration and customs enforcement 
        personnel.--The term ``U.S. Immigration and Customs 
        Enforcement personnel'' means Homeland Security 
        Investigations Directorate personnel and other 
        appropriate employees of U.S. Immigration and Customs 
        Enforcement.

SEC. 105. JOINT STRATEGIC PLAN.

  (a) In General.--Not later than one year after the date of 
the enactment of this Act, and every 2 years thereafter, the 
Commissioner and the Director of U.S. Immigration and Customs 
Enforcement shall jointly develop and submit to the appropriate 
congressional committees a joint strategic plan.
  (b) Contents.--The joint strategic plan required under this 
section shall be comprised of a comprehensive multi-year plan 
for trade enforcement and trade facilitation, and shall 
include--
          (1) a summary of actions taken during the 2-year 
        period preceding the submission of the plan to improve 
        trade enforcement and trade facilitation, including a 
        description and analysis of specific performance 
        measures to evaluate the progress of U.S. Customs and 
        Border Protection and U.S. Immigration and Customs 
        Enforcement in meeting each such responsibility;
          (2) a statement of objectives and plans for further 
        improving trade enforcement and trade facilitation;
          (3) a specific identification of the priority trade 
        issues described in section 118, that can be addressed 
        in order to enhance trade enforcement and trade 
        facilitation, and a description of strategies and plans 
        for addressing each such issue;
          (4) a description of efforts made to improve 
        consultation and coordination among and within Federal 
        agencies, and in particular between U.S. Customs and 
        Border Protection and U.S. Immigration and Customs 
        Enforcement, regarding trade enforcement and trade 
        facilitation;
          (5) a description of the training that has occurred 
        to date within U.S. Customs and Border Protection and 
        U.S. Immigration and Customs Enforcement to improve 
        trade enforcement and trade facilitation, including 
        training under section 104;
          (6) a description of efforts to work with the World 
        Customs Organization and other international 
        organizations, in consultation with other Federal 
        agencies as appropriate, with respect to enhancing 
        trade enforcement and trade facilitation;
          (7) a description of U.S. Custom and Border 
        Protection organizational benchmarks for optimizing 
        staffing and wait times at ports of entry;
          (8) a specific identification of any domestic or 
        international best practices that may further improve 
        trade enforcement and trade facilitation;
          (9) any legislative recommendations to further 
        improve trade enforcement and trade facilitation; and
          (10) a description of efforts made to improve 
        consultation and coordination with the private sector 
        to enhance trade enforcement and trade facilitation.
  (c) Consultations.--
          (1) In general.--In developing the joint strategic 
        plan required under this section, the Commissioner and 
        the Director of U.S. Immigration and Customs 
        Enforcement shall consult with--
                  (A) appropriate officials from the relevant 
                Federal agencies, including--
                          (i) the Department of the Treasury;
                          (ii) the Department of Agriculture;
                          (iii) the Department of Commerce;
                          (iv) the Department of Justice;
                          (v) the Department of the Interior;
                          (vi) the Department of Health and 
                        Human Services;
                          (vii) the Food and Drug 
                        Administration;
                          (viii) the Consumer Product Safety 
                        Commission; and
                          (ix) the Office of the United States 
                        Trade Representative; and
                  (B) the Commercial Customs Operations 
                Advisory Committee established by section 109.
          (2) Other consultations.--In developing the joint 
        strategic plan required under this section, the 
        Commissioner and the Director shall seek to consult 
        with--
                  (A) appropriate officials from relevant 
                foreign law enforcement agencies and 
                international organizations, including the 
                World Customs Organization; and
                  (B) interested parties in the private sector.

SEC. 106. AUTOMATED COMMERCIAL ENVIRONMENT.

  (a) Funding.--Section 13031(f)(4)(B) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
58c(f)(4)(B)) is amended--
          (1) by striking ``2003 through 2005'' and inserting 
        ``2016 through 2018'';
          (2) by striking ``such amounts as are available in 
        that Account'' and inserting ``not less than 
        $153,736,000''; and
          (3) by striking ``for the development'' and inserting 
        ``to complete the development and implementation''.
  (b) Report.--Section 311(b)(3) of the Customs Border Security 
Act of 2002 (19 U.S.C. 2075 note) is amended to read as 
follows:
          ``(3) Report.--
                  ``(A) In general.--Not later than December 
                31, 2016, the Commissioner of U.S. Customs and 
                Border Protection shall submit to the Committee 
                on Appropriations and the Committee on Finance 
                of the Senate and the Committee on 
                Appropriations and the Committee on Ways and 
                Means of the House of Representatives a report 
                detailing--
                          ``(i) U.S. Customs and Border 
                        Protection's incorporation of all core 
                        trade processing capabilities, 
                        including cargo release, entry summary, 
                        cargo manifest, cargo financial data, 
                        and export data elements into the 
                        Automated Commercial Environment 
                        computer system authorized under 
                        section 13031(f)(4) of the Consolidated 
                        Omnibus Budget and Reconciliation Act 
                        of 1985 (19 U.S.C. 58c(f)(4)) not later 
                        than September 30, 2016, to conform 
                        with the admissibility criteria of 
                        agencies participating in the 
                        International Trade Data System 
                        identified pursuant to section 
                        411(d)(4)(A)(iii) of the Tariff Act of 
                        1930;
                          ``(ii) U.S. Customs and Border 
                        Protection's remaining priorities for 
                        processing entry summary data elements, 
                        cargo manifest data elements, cargo 
                        financial data elements, and export 
                        elements in the Automated Commercial 
                        Environment computer system, and the 
                        objectives and plans for implementing 
                        these remaining priorities;
                          ``(iii) the components of the 
                        National Customs Automation Program 
                        specified in subsection (a)(2) of 
                        section 411 of the Tariff Act of 1930 
                        that have not been implemented; and
                          ``(iv) any additional components of 
                        the National Customs Automation Program 
                        initiated by the Commissioner to 
                        complete the development, 
                        establishment, and implementation of 
                        the Automated Commercial Environment 
                        computer system.
                  ``(B) Update of reports.--Not later than 
                September 30, 2017, the Commissioner shall 
                submit to the Committee on Appropriations and 
                the Committee on Finance of the Senate and the 
                Committee on Appropriations and the Committee 
                on Ways and Means of the House of 
                Representatives an updated report addressing 
                each of the matters referred to in subparagraph 
                (A), and--
                          ``(i) evaluating the effectiveness of 
                        the implementation of the Automated 
                        Commercial Environment computer system; 
                        and
                          ``(ii) detailing the percentage of 
                        trade processed in the Automated 
                        Commercial Environment every month 
                        since September 30, 2016.''.
  (c) Government Accountability Office Report.--Not later than 
December 31, 2017, the Comptroller General of the United States 
shall submit to the Committee on Appropriations and the 
Committee on Finance of the Senate and the Committee on 
Appropriations and the Committee on Ways and Means of the House 
of Representatives a report--
          (1) assessing the progress of other Federal agencies 
        in accessing and utilizing the Automated Commercial 
        Environment; and
          (2) assessing the potential cost savings to the 
        United States Government and importers and exporters 
        and the potential benefits to enforcement of the 
        customs and trade laws of the United States if the 
        elements identified in clauses (i) through (iv) of 
        section 311(b)(3)(A) of the Customs Border Security Act 
        of 2002, as amended by subsection (b) of this section, 
        are implemented.

SEC. 107. INTERNATIONAL TRADE DATA SYSTEM.

  Section 411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)) 
is amended--
          (1) by redesignating paragraphs (4) through (7) as 
        paragraphs (5) through (8), respectively;
          (2) by inserting after paragraph (3) the following:
          ``(4) Information technology infrastructure.--
                  ``(A) In general.--The Secretary shall work 
                with the head of each agency participating in 
                the ITDS and the Interagency Steering Committee 
                to ensure that each agency--
                          ``(i) develops and maintains the 
                        necessary information technology 
                        infrastructure to support the operation 
                        of the ITDS and to submit all data to 
                        the ITDS electronically;
                          ``(ii) enters into a memorandum of 
                        understanding, or takes such other 
                        action as is necessary, to provide for 
                        the information sharing between the 
                        agency and U.S. Customs and Border 
                        Protection necessary for the operation 
                        and maintenance of the ITDS;
                          ``(iii) not later than June 30, 2016, 
                        identifies and transmits to the 
                        Commissioner of U.S. Customs and Border 
                        Protection the admissibility criteria 
                        and data elements required by the 
                        agency to authorize the release of 
                        cargo by U.S. Customs and Border 
                        Protection for incorporation into the 
                        operational functionality of the 
                        Automated Commercial Environment 
                        computer system authorized under 
                        section 13031(f)(4) of the Consolidated 
                        Omnibus Budget and Reconciliation Act 
                        of 1985 (19 U.S.C. 58c(f)(4)); and
                          ``(iv) not later than December 31, 
                        2016, utilizes the ITDS as the primary 
                        means of receiving from users the 
                        standard set of data and other relevant 
                        documentation, exclusive of 
                        applications for permits, licenses, or 
                        certifications required for the release 
                        of imported cargo and clearance of 
                        cargo for export.
                  ``(B) Rule of construction.--Nothing in this 
                paragraph shall be construed to require any 
                action to be taken that would compromise an 
                ongoing law enforcement investigation or 
                national security.''; and
          (3) in paragraph (8), as redesignated, by striking 
        ``section 9503(c) of the Omnibus Budget Reconciliation 
        Act of 1987 (19 U.S.C. 2071 note)'' and inserting 
        ``section 109 of the Trade Facilitation and Trade 
        Enforcement Act of 2015''.

SEC. 108. CONSULTATIONS WITH RESPECT TO MUTUAL RECOGNITION 
                    ARRANGEMENTS.

  (a) Consultations.--The Secretary of Homeland Security, with 
respect to any proposed mutual recognition arrangement or 
similar agreement between the United States and a foreign 
government providing for mutual recognition of supply chain 
security programs and customs revenue functions, shall 
consult--
          (1) not later than 30 days before initiating 
        negotiations to enter into any such arrangement or 
        similar agreement, with the appropriate congressional 
        committees; and
          (2) not later than 30 days before entering into any 
        such arrangement or similar agreement, with the 
        appropriate congressional committees.
  (b) Negotiating Objective.--It shall be a negotiating 
objective of the United States in any negotiation for a mutual 
recognition arrangement with a foreign country on partnership 
programs, such as the Customs-Trade Partnership Against 
Terrorism established under subtitle B of title II of the 
Security and Accountability for Every Port Act of 2006 (6 
U.S.C. 961 et seq.), to seek to ensure the compatibility of the 
partnership programs of that country with the partnership 
programs of U.S. Customs and Border Protection to enhance 
security, trade facilitation, and trade enforcement.

SEC. 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE.

  (a) Establishment.--Not later than the date that is 60 days 
after the date of the enactment of this Act, the Secretary of 
the Treasury and the Secretary of Homeland Security shall 
jointly establish a Commercial Customs Operations Advisory 
Committee (in this section referred to as the ``Advisory 
Committee'').
  (b) Membership.--
          (1) In general.--The Advisory Committee shall be 
        comprised of--
                  (A) 20 individuals appointed under paragraph 
                (2);
                  (B) the Assistant Secretary for Tax Policy of 
                the Department of the Treasury and the 
                Commissioner, who shall jointly co-chair 
                meetings of the Advisory Committee; and
                  (C) the Assistant Secretary for Policy and 
                the Director of U.S. Immigration and Customs 
                Enforcement of the Department of Homeland 
                Security, who shall serve as deputy co-chairs 
                of meetings of the Advisory Committee.
          (2) Appointment.--
                  (A) In general.--The Secretary of the 
                Treasury and the Secretary of Homeland Security 
                shall jointly appoint 20 individuals from the 
                private sector to the Advisory Committee.
                  (B) Requirements.--In making appointments 
                under subparagraph (A), the Secretary of the 
                Treasury and the Secretary of Homeland Security 
                shall appoint members--
                          (i) to ensure that the membership of 
                        the Advisory Committee is 
                        representative of the individuals and 
                        firms affected by the commercial 
                        operations of U.S. Customs and Border 
                        Protection; and
                          (ii) without regard to political 
                        affiliation.
                  (C) Terms.--Each individual appointed to the 
                Advisory Committee under this paragraph shall 
                be appointed for a term of not more than 3 
                years, and may be reappointed to subsequent 
                terms, but may not serve more than 2 terms 
                sequentially.
          (3) Transfer of membership.--The Secretary of the 
        Treasury and the Secretary of Homeland Security may 
        transfer members serving on the Advisory Committee on 
        Commercial Operations of the United States Customs 
        Service established under section 9503(c) of the 
        Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 
        2071 note) on the day before the date of the enactment 
        of this Act to the Advisory Committee established under 
        subsection (a).
  (c) Duties.--The Advisory Committee established under 
subsection (a) shall--
          (1) advise the Secretary of the Treasury and the 
        Secretary of Homeland Security on all matters involving 
        the commercial operations of U.S. Customs and Border 
        Protection, including advising with respect to 
        significant changes that are proposed with respect to 
        regulations, policies, or practices of U.S. Customs and 
        Border Protection;
          (2) provide recommendations to the Secretary of the 
        Treasury and the Secretary of Homeland Security on 
        improvements to the commercial operations of U.S. 
        Customs and Border Protection;
          (3) collaborate in developing the agenda for Advisory 
        Committee meetings; and
          (4) perform such other functions relating to the 
        commercial operations of U.S. Customs and Border 
        Protection as prescribed by law or as the Secretary of 
        the Treasury and the Secretary of Homeland Security 
        jointly direct.
  (d) Meetings.--
          (1) In general.--The Advisory Committee shall meet at 
        the call of the Secretary of the Treasury and the 
        Secretary of Homeland Security, or at the call of not 
        less than \2/3\ of the membership of the Advisory 
        Committee. The Advisory Committee shall meet at least 4 
        times each calendar year.
          (2) Open meetings.--Notwithstanding section 10(a) of 
        the Federal Advisory Committee Act (5 U.S.C. App.), the 
        Advisory Committee meetings shall be open to the public 
        unless the Secretary of the Treasury or the Secretary 
        of Homeland Security determines that the meeting will 
        include matters the disclosure of which would 
        compromise the development of policies, priorities, or 
        negotiating objectives or positions that could impact 
        the commercial operations of U.S. Customs and Border 
        Protection or the operations or investigations of U.S. 
        Immigration and Customs Enforcement.
  (e) Annual Report.--Not later than December 31, 2016, and 
annually thereafter, the Advisory Committee shall submit to the 
Committee on Finance of the Senate and the Committee on Ways 
and Means of the House of Representatives a report that--
          (1) describes the activities of the Advisory 
        Committee during the preceding fiscal year; and
          (2) sets forth any recommendations of the Advisory 
        Committee regarding the commercial operations of U.S. 
        Customs and Border Protection.
  (f) Termination.--Section 14(a)(2) of the Federal Advisory 
Committee Act (5 U.S.C. App.; relating to the termination of 
advisory committees) shall not apply to the Advisory Committee.
  (g) Conforming Amendment.--
          (1) In general.--Effective on the date on which the 
        Advisory Committee is established under subsection (a), 
        section 9503(c) of the Omnibus Budget Reconciliation 
        Act of 1987 (19 U.S.C. 2071 note) is repealed.
          (2) Reference.--Any reference in law to the Advisory 
        Committee on Commercial Operations of the United States 
        Customs Service established under section 9503(c) of 
        the Omnibus Budget Reconciliation Act of 1987 (19 
        U.S.C. 2071 note) made on or after the date on which 
        the Advisory Committee is established under subsection 
        (a), shall be deemed a reference to the Commercial 
        Customs Operations Advisory Committee established under 
        subsection (a).

SEC. 110. CENTERS OF EXCELLENCE AND EXPERTISE.

  (a) In General.--The Commissioner shall, in consultation with 
the appropriate congressional committees and the Commercial 
Customs Operations Advisory Committee established by section 
109, develop and implement Centers of Excellence and Expertise 
throughout U.S. Customs and Border Protection that--
          (1) enhance the economic competitiveness of the 
        United States by consistently enforcing the laws and 
        regulations of the United States at all ports of entry 
        of the United States and by facilitating the flow of 
        legitimate trade through increasing industry-based 
        knowledge;
          (2) improve enforcement efforts, including 
        enforcement of priority trade issues described in 
        section 118, in specific industry sectors through the 
        application of targeting information from the National 
        Targeting Center under section 111 and from other means 
        of verification;
          (3) build upon the expertise of U.S. Customs and 
        Border Protection in particular industry operations, 
        supply chains, and compliance requirements;
          (4) promote the uniform implementation at each port 
        of entry of the United States of policies and 
        regulations relating to imports;
          (5) centralize the trade enforcement and trade 
        facilitation efforts of U.S. Customs and Border 
        Protection;
          (6) formalize an account-based approach to apply, as 
        the Commissioner determines appropriate, to the 
        importation of merchandise into the United States;
          (7) foster partnerships though the expansion of trade 
        programs and other trusted partner programs;
          (8) develop applicable performance measurements to 
        meet internal efficiency and effectiveness goals; and
          (9) whenever feasible, facilitate a more efficient 
        flow of information between Federal agencies.
  (b) Report.--Not later than December 31, 2016, the 
Commissioner shall submit to the appropriate congressional 
committees a report describing--
          (1) the scope, functions, and structure of each 
        Center of Excellence and Expertise developed and 
        implemented under subsection (a);
          (2) the effectiveness of each such Center of 
        Excellence and Expertise in improving enforcement 
        efforts, including enforcement of priority trade issues 
        described in section 118, and facilitating legitimate 
        trade;
          (3) the quantitative and qualitative benefits of each 
        such Center of Excellence and Expertise to the trade 
        community, including through fostering partnerships 
        through the expansion of trade programs such as the 
        Importer Self Assessment program and other trusted 
        partner programs;
          (4) all applicable performance measurements with 
        respect to each such Center of Excellence and 
        Expertise, including performance measures with respect 
        to meeting internal efficiency and effectiveness goals;
          (5) the performance of each such Center of Excellence 
        and Expertise in increasing the accuracy and 
        completeness of data with respect to international 
        trade and facilitating a more efficient flow of 
        information between Federal agencies; and
          (6) any planned changes in the number, scope, 
        functions or any other aspect of the Centers of 
        Excellence and Expertise developed and implemented 
        under subsection (a).

SEC. 111. COMMERCIAL RISK ASSESSMENT TARGETING AND TRADE ALERTS.

  (a) Commercial Risk Assessment Targeting.--In carrying out 
its duties under section 411(g)(4) of the Homeland Security Act 
of 2002, as added by section 802(a) of this Act, the National 
Targeting Center shall--
          (1) establish targeted risk assessment methodologies 
        and standards--
                  (A) for evaluating the risk that cargo 
                destined for the United States may violate the 
                customs and trade laws of the United States, 
                particularly those laws applicable to 
                merchandise subject to the priority trade 
                issues described in section 118; and
                  (B) for issuing, as appropriate, Trade Alerts 
                described in subsection (b);
          (2) to the extent practicable and otherwise 
        authorized by law, use, to administer the methodologies 
        and standards established under paragraph (1)--
                  (A) publicly available information;
                  (B) information available from the Automated 
                Commercial System, the Automated Commercial 
                Environment computer system, the Automated 
                Targeting System, the Automated Export System, 
                the International Trade Data System, the TECS 
                (formerly known as the ``Treasury Enforcement 
                Communications System''), the case management 
                system of U.S. Immigration and Customs 
                Enforcement, and any successor systems; and
                  (C) information made available to the 
                National Targeting Center, including 
                information provided by private sector 
                entities; and
          (3) provide for the receipt and transmission to the 
        appropriate U.S. Customs and Border Protection offices 
        of allegations from interested parties in the private 
        sector of violations of customs and trade laws of the 
        United States of merchandise relating to the priority 
        trade issues described in section 118.
  (b) Trade Alerts.--
          (1) Issuance.--In carrying out its duties under 
        section 411(g)(4) of the Homeland Security Act of 2002, 
        as added by section 802(a) of this Act, and based upon 
        the application of the targeted risk assessment 
        methodologies and standards established under 
        subsection (a), the Executive Director of the National 
        Targeting Center may issue Trade Alerts to directors of 
        United States ports of entry directing further 
        inspection, or physical examination or testing, of 
        specific merchandise to ensure compliance with all 
        applicable customs and trade laws and regulations 
        administered by U.S. Customs and Border Protection.
          (2) Determinations not to implement trade alerts.--
        The director of a United States port of entry may 
        determine not to conduct further inspections, or 
        physical examination or testing, pursuant to a Trade 
        Alert issued under paragraph (1) if--
                  (A) the director finds that such a 
                determination is justified by port security 
                interests; and
                  (B) not later than 48 hours after making the 
                determination, notifies the Assistant 
                Commissioner of the Office of Field Operations 
                of U.S. Customs and Border Protection of the 
                determination and the reasons for the 
                determination.
          (3) Summary of determinations not to implement.--The 
        Assistant Commissioner of the Office of Field 
        Operations of U.S. Customs and Border Protection 
        shall--
                  (A) compile an annual public summary of all 
                determinations by directors of United States 
                ports of entry under paragraph (2) and the 
                reasons for those determinations;
                  (B) conduct an evaluation of the utilization 
                of Trade Alerts issued under paragraph (1); and
                  (C) not later than December 31 of each year, 
                submit the summary to the appropriate 
                congressional committees.
          (4) Inspection defined.--In this subsection, the term 
        ``inspection'' means the comprehensive evaluation 
        process used by U.S. Customs and Border Protection, 
        other than physical examination or testing, to permit 
        the entry of merchandise into the United States, or the 
        clearance of merchandise for transportation in bond 
        through the United States, for purposes of--
                  (A) assessing duties;
                  (B) identifying restricted or prohibited 
                items; and
                  (C) ensuring compliance with all applicable 
                customs and trade laws and regulations 
                administered by U.S. Customs and Border 
                Protection.
  (c) Use of Trade Data for Commercial Enforcement Purposes.--
Section 343(a)(3)(F) of the Trade Act of 2002 (19 U.S.C. 2071 
note) is amended to read as follows:
                  ``(F) The information collected pursuant to 
                the regulations shall be used exclusively for 
                ensuring cargo safety and security, preventing 
                smuggling, and commercial risk assessment 
                targeting, and shall not be used for any 
                commercial enforcement purposes, including for 
                determining merchandise entry. Notwithstanding 
                the preceding sentence, nothing in this section 
                shall be treated as amending, repealing, or 
                otherwise modifying title IV of the Tariff Act 
                of 1930 or regulations promulgated 
                thereunder.''.

SEC. 112. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND ENFORCEMENT 
                    MEASURES.

  (a) In General.--Not later the March 31, 2016, and not later 
than March 31 of each second year thereafter, the Inspector 
General of the Department of the Treasury shall submit to the 
Committee on Finance of the Senate and the Committee on Ways 
and Means of the House of Representatives a report assessing, 
with respect to the period covered by the report, as specified 
in subsection (b), the following:
          (1) The effectiveness of the measures taken by U.S. 
        Customs and Border Protection with respect to 
        protection of revenue, including--
                  (A) the collection of countervailing duties 
                assessed under subtitle A of title VII of the 
                Tariff Act of 1930 (19 U.S.C. 1671 et seq.) and 
                antidumping duties assessed under subtitle B of 
                title VII of the Tariff Act of 1930 (19 U.S.C. 
                1673 et seq.);
                  (B) the assessment, collection, and 
                mitigation of commercial fines and penalties;
                  (C) the use of bonds, including continuous 
                and single transaction bonds, to secure that 
                revenue; and
                  (D) the adequacy of the policies of U.S. 
                Customs and Border Protection with respect to 
                the monitoring and tracking of merchandise 
                transported in bond and collecting duties, as 
                appropriate.
          (2) The effectiveness of actions taken by U.S. 
        Customs and Border Protection to measure accountability 
        and performance with respect to protection of revenue.
          (3) The number and outcome of investigations 
        instituted by U.S. Customs and Border Protection with 
        respect to the underpayment of duties.
          (4) The effectiveness of training with respect to the 
        collection of duties provided for personnel of U.S. 
        Customs and Border Protection.
  (b) Period Covered by Report.--Each report required by 
subsection (a) shall cover the period of 2 fiscal years ending 
on September 30 of the calendar year preceding the submission 
of the report.

SEC. 113. REPORT ON SECURITY AND REVENUE MEASURES WITH RESPECT TO 
                    MERCHANDISE TRANSPORTED IN BOND.

  (a) In General.--Not later than December 31 of 2016, 2017, 
and 2018, the Secretary of Homeland Security and the Secretary 
of the Treasury shall jointly submit to the Committee on 
Finance of the Senate and the Committee on Ways and Means of 
the House of Representatives a report on efforts undertaken by 
U.S. Customs and Border Protection to ensure the secure 
transportation of merchandise in bond through the United States 
and the collection of revenue owed upon the entry of such 
merchandise into the United States for consumption.
  (b) Elements.--Each report required by subsection (a) shall 
include, for the fiscal year preceding the submission of the 
report, information on--
          (1) the overall number of entries of merchandise for 
        transportation in bond through the United States;
          (2) the ports at which merchandise arrives in the 
        United States for transportation in bond and at which 
        records of the arrival of such merchandise are 
        generated;
          (3) the average time taken to reconcile such records 
        with the records at the final destination of the 
        merchandise in the United States to demonstrate that 
        the merchandise reaches its final destination or is re-
        exported;
          (4) the average time taken to transport merchandise 
        in bond from the port at which the merchandise arrives 
        in the United States to its final destination in the 
        United States;
          (5) the total amount of duties, taxes, and fees owed 
        with respect to shipments of merchandise transported in 
        bond and the total amount of such duties, taxes, and 
        fees paid;
          (6) the total number of notifications by carriers of 
        merchandise being transported in bond that the 
        destination of the merchandise has changed; and
          (7) the number of entries that remain unreconciled.

SEC. 114. IMPORTER OF RECORD PROGRAM.

  (a) Establishment.--Not later than the date that is 180 days 
after the date of the enactment of this Act, the Secretary of 
Homeland Security shall establish an importer of record program 
to assign and maintain importer of record numbers.
  (b) Requirements.--The Secretary shall ensure that, as part 
of the importer of record program, U.S. Customs and Border 
Protection--
          (1) develops criteria that importers must meet in 
        order to obtain an importer of record number, 
        including--
                  (A) criteria to ensure sufficient information 
                is collected to allow U.S. Customs and Border 
                Protection to verify the existence of the 
                importer requesting the importer of record 
                number;
                  (B) criteria to ensure sufficient information 
                is collected to allow U.S. Customs and Border 
                Protection to identify linkages or other 
                affiliations between importers that are 
                requesting or have been assigned importer of 
                record numbers; and
                  (C) criteria to ensure sufficient information 
                is collected to allow U.S. Customs and Border 
                Protection to identify changes in address and 
                corporate structure of importers;
          (2) provides a process by which importers are 
        assigned importer of record numbers;
          (3) maintains a centralized database of importer of 
        record numbers, including a history of importer of 
        record numbers associated with each importer, and the 
        information described in subparagraphs (A), (B), and 
        (C) of paragraph (1);
          (4) evaluates and maintains the accuracy of the 
        database if such information changes; and
          (5) takes measures to ensure that duplicate importer 
        of record numbers are not issued.
  (c) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the 
Committee on Finance of the Senate and the Committee on Ways 
and Means of the House of Representatives a report on the 
importer of record program established under subsection (a).
  (d) Number Defined.--In this subsection, the term ``number'', 
with respect to an importer of record, means a filing 
identification number described in section 24.5 of title 19, 
Code of Federal Regulations (or any corresponding similar 
regulation) that fully supports the requirements of subsection 
(b) with respect to the collection and maintenance of 
information.

SEC. 115. ESTABLISHMENT OF NEW IMPORTER PROGRAM.

  (a) In General.--Not later than the date that is 180 days 
after the date of the enactment of this Act, the Commissioner 
shall establish a new importer program that directs U.S. 
Customs and Border Protection to adjust bond amounts for new 
importers based on the level of risk assessed by U.S. Customs 
and Border Protection for protection of revenue of the Federal 
Government.
  (b) Requirements.--The Commissioner shall ensure that, as 
part of the new importer program established under subsection 
(a), U.S. Customs and Border Protection--
          (1) develops risk-based criteria for determining 
        which importers are considered to be new importers for 
        the purposes of this subsection;
          (2) develops risk assessment guidelines for new 
        importers to determine if and to what extent--
                  (A) to adjust bond amounts of imported 
                products of new importers; and
                  (B) to increase screening of imported 
                products of new importers;
          (3) develops procedures to ensure increased oversight 
        of imported products of new importers relating to the 
        enforcement of the priority trade issues described in 
        section 118;
          (4) develops procedures to ensure increased oversight 
        of imported products of new importers by Centers of 
        Excellence and Expertise established under section 110; 
        and
          (5) establishes a centralized database of new 
        importers to ensure accuracy of information that is 
        required to be provided by new importers to U.S. 
        Customs and Border Protection.

SEC. 116. CUSTOMS BROKER IDENTIFICATION OF IMPORTERS.

  (a) In General.--Section 641 of the Tariff Act of 1930 (19 
U.S.C. 1641) is amended by adding at the end the following:
  ``(i) Identification of Importers.--
          ``(1) In general.--The Secretary shall prescribe 
        regulations setting forth the minimum standards for 
        customs brokers and importers, including nonresident 
        importers, regarding the identity of the importer that 
        shall apply in connection with the importation of 
        merchandise into the United States.
          ``(2) Minimum requirements.--The regulations shall, 
        at a minimum, require customs brokers to implement, and 
        importers (after being given adequate notice) to comply 
        with, reasonable procedures for--
                  ``(A) collecting the identity of importers, 
                including nonresident importers, seeking to 
                import merchandise into the United States to 
                the extent reasonable and practicable; and
                  ``(B) maintaining records of the information 
                used to substantiate a person's identity, 
                including name, address, and other identifying 
                information.
          ``(3) Penalties.--Any customs broker who fails to 
        collect information required under the regulations 
        prescribed under this subsection shall be liable to the 
        United States, at the discretion of the Secretary, for 
        a monetary penalty not to exceed $10,000 for each 
        violation of those regulations and subject to 
        revocation or suspension of a license or permit of the 
        customs broker pursuant to the procedures set forth in 
        subsection (d).
          ``(4) Definitions.--In this subsection--
                  ``(A) the term `importer' means one of the 
                parties qualifying as an importer of record 
                under section 484(a)(2)(B); and
                  ``(B) the term `nonresident importer' means 
                an importer who is--
                          ``(i) an individual who is not a 
                        citizen of the United States or an 
                        alien lawfully admitted for permanent 
                        residence in the United States; or
                          ``(ii) a partnership, corporation, or 
                        other commercial entity that is not 
                        organized under the laws of a 
                        jurisdiction within the customs 
                        territory of the United States (as such 
                        term is defined in General Note 2 of 
                        the Harmonized Tariff Schedule of the 
                        United States) or in the Virgin Islands 
                        of the United States.''.
  (b) Study and Report Required.--Not later than 180 days after 
the date of enactment of this Act, the Commissioner shall 
submit to Congress a report containing recommendations for--
          (1) determining the most timely and effective way to 
        require foreign nationals to provide customs brokers 
        with appropriate and accurate information, comparable 
        to that which is required of United States nationals, 
        concerning the identity, address, and other related 
        information relating to such foreign nationals 
        necessary to enable customs brokers to comply with the 
        requirements of section 641(i) of the Tariff Act of 
        1930 (as added by subsection (a) of this section); and
          (2) establishing a system for customs brokers to 
        review information maintained by relevant Federal 
        agencies for purposes of verifying the identities of 
        importers, including nonresident importers, seeking to 
        import merchandise into the United States.

SEC. 117. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.

  (a) In General.--Part III of title IV of the Tariff Act of 
1930 (19 U.S.C. 1481 et seq.) is amended by inserting after 
section 484b the following new section:

``SEC. 484C. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.

  ``(a) In General.--Except as provided in subsection (c), if 
an importer of record under section 484 is not a resident of 
the United States, the Commissioner of U.S. Customs and Border 
Protection shall require the non-resident importer to designate 
a resident agent in the United States subject to the 
requirements described in subsection (b).
  ``(b) Requirements.--The requirements described in this 
subsection are the following:
          ``(1) The resident agent shall be authorized to 
        accept service of process against the non-resident 
        importer in connection with the importation of 
        merchandise.
          ``(2) The Commissioner of U.S. Customs and Border 
        Protection shall require the non-resident importer to 
        establish a power of attorney with the resident agent 
        in connection with the importation of merchandise.
  ``(c) Non-applicability.--The requirements of this section 
shall not apply with respect to a non-resident importer who is 
a validated Tier 2 or Tier 3 participant in the Customs-Trade 
Partnership Against Terrorism program established under 
subtitle B of title II of the SAFE Port Act (6 U.S.C. 961 et 
seq.).
  ``(d) Penalties.--
          ``(1) In general.--It shall be unlawful for any 
        person to import into the United States any merchandise 
        in violation of this section.
          ``(2) Civil penalties.--Any person who violates 
        paragraph (1) shall be liable for a civil penalty of 
        $50,000 for each such violation.
          ``(3) Other penalties.--In addition to the penalties 
        specified in paragraph (2), any violation of this 
        section that violates any other customs and trade laws 
        of the United States shall be subject to any applicable 
        civil and criminal penalty, including seizure and 
        forfeiture, that may be imposed under such customs or 
        trade law or title 18, United States Code, with respect 
        to the importation of merchandise.
          ``(4) Definition.--In this subsection, the term 
        `customs and trade laws of the United States' has the 
        meaning given such term in section 2 of the Trade 
        Facilitation and Trade Enforcement Act of 2015.''.
  (b) Effective Date.--Section 484c of the Tariff Act of 1930, 
as added by subsection (a), takes effect on the date of the 
enactment of this Act and applies with respect to the 
importation, on or after the date that is 180 days after such 
date of enactment, of merchandise of an importer of record 
under section 484 of the Tariff Act of 1930 who is not a 
resident of the United States.

SEC. 118. PRIORITY TRADE ISSUES.

  (a) In General.--The Commissioner shall establish the 
following as priority trade issues:
          (1) Agriculture programs.
          (2) Antidumping and countervailing duties.
          (3) Import safety.
          (4) Intellectual property rights.
          (5) Revenue.
          (6) Textiles and wearing apparel.
          (7) Trade agreements and preference programs.
  (b) Modification.--The Commissioner is authorized to 
establish new priority trade issues and eliminate, consolidate, 
or otherwise modify the priority trade issues described in 
subsection (a) if the Commissioner--
          (1) determines it necessary and appropriate to do so; 
        and
          (2) submits to the appropriate congressional 
        committees a summary of the proposed changes to the 
        priority trade issues not later than 60 days before 
        such changes are to take effect.

SEC. 119. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

  In this title, the term ``appropriate congressional 
committees'' means--
          (1) the Committee on Finance and the Committee on 
        Homeland Security and Government Affairs of the Senate; 
        and
          (2) the Committee on Ways and Means and the Committee 
        on Homeland Security of the House of Representatives.

                   TITLE II--IMPORT HEALTH AND SAFETY

SEC. 201. INTERAGENCY IMPORT SAFETY WORKING GROUP.

  (a) Establishment.--There is established an interagency 
Import Safety Working Group.
  (b) Membership.--The interagency Import Safety Working Group 
shall consist of the following officials or their designees:
          (1) The Secretary of Homeland Security, who shall 
        serve as the Chair.
          (2) The Secretary of Health and Human Services, who 
        shall serve as the Vice Chair.
          (3) The Secretary of the Treasury.
          (4) The Secretary of Commerce.
          (5) The Secretary of Agriculture.
          (6) The United States Trade Representative.
          (7) The Director of the Office of Management and 
        Budget.
          (8) The Commissioner of Food and Drugs.
          (9) The Commissioner of U.S. Customs and Border 
        Protection.
          (10) The Chairman of the Consumer Product Safety 
        Commission.
          (11) The Director of U.S. Immigration and Customs 
        Enforcement.
          (12) The head of any other Federal agency designated 
        by the President to participate in the interagency 
        Import Safety Working Group, as appropriate.
  (c) Duties.--The duties of the interagency Import Safety 
Working Group shall include--
          (1) consulting on the development of the joint import 
        safety rapid response plan required by section 202;
          (2) periodically evaluating the adequacy of the 
        plans, practices, and resources of the Federal 
        Government dedicated to ensuring the safety of 
        merchandise imported in the United States and the 
        expeditious entry of such merchandise, including--
                  (A) minimizing the duplication of efforts 
                among agencies the heads of which are members 
                of the interagency Import Safety Working Group 
                and ensuring the compatibility of the policies 
                and regulations of those agencies; and
                  (B) recommending additional administrative 
                actions, as appropriate, designed to ensure the 
                safety of merchandise imported into the United 
                States and the expeditious entry of such 
                merchandise and considering the impact of those 
                actions on private sector entities;
          (3) reviewing the engagement and cooperation of 
        foreign governments and foreign manufacturers in 
        facilitating the inspection and certification, as 
        appropriate, of such merchandise to be imported into 
        the United States and the facilities producing such 
        merchandise to ensure the safety of the merchandise and 
        the expeditious entry of the merchandise into the 
        United States;
          (4) identifying best practices, in consultation with 
        private sector entities as appropriate, to assist 
        United States importers in taking all appropriate steps 
        to ensure the safety of merchandise imported into the 
        United States, including with respect to--
                  (A) the inspection of manufacturing 
                facilities in foreign countries;
                  (B) the inspection of merchandise destined 
                for the United States before exportation from a 
                foreign country or before distribution in the 
                United States; and
                  (C) the protection of the international 
                supply chain (as defined in section 2 of the 
                Security and Accountability For Every Port Act 
                of 2006 (6 U.S.C. 901));
          (5) identifying best practices to assist Federal, 
        State, and local governments and agencies, and port 
        authorities, to improve communication and coordination 
        among such agencies and authorities with respect to 
        ensuring the safety of merchandise imported into the 
        United States and the expeditious entry of such 
        merchandise; and
          (6) otherwise identifying appropriate steps to 
        increase the accountability of United States importers 
        and the engagement of foreign government agencies with 
        respect to ensuring the safety of merchandise imported 
        into the United States and the expeditious entry of 
        such merchandise.

SEC. 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN.

  (a) In General.--Not later than December 31, 2016, the 
Secretary of Homeland Security, in consultation with the 
interagency Import Safety Working Group established under 
section 201, shall develop a plan (to be known as the ``joint 
import safety rapid response plan'') that sets forth protocols 
and defines practices for U.S. Customs and Border Protection to 
use--
          (1) in taking action in response to, and coordinating 
        Federal responses to, an incident in which cargo 
        destined for or merchandise entering the United States 
        has been identified as posing a threat to the health or 
        safety of consumers in the United States; and
          (2) in recovering from or mitigating the effects of 
        actions and responses to an incident described in 
        paragraph (1).
  (b) Contents.--The joint import safety rapid response plan 
shall address--
          (1) the statutory and regulatory authorities and 
        responsibilities of U.S. Customs and Border Protection 
        and other Federal agencies in responding to an incident 
        described in subsection (a)(1);
          (2) the protocols and practices to be used by U.S. 
        Customs and Border Protection when taking action in 
        response to, and coordinating Federal responses to, 
        such an incident;
          (3) the measures to be taken by U.S. Customs and 
        Border Protection and other Federal agencies in 
        recovering from or mitigating the effects of actions 
        taken in response to such an incident after the 
        incident to ensure the resumption of the entry of 
        merchandise into the United States; and
          (4) exercises that U.S. Customs and Border Protection 
        may conduct in conjunction with Federal, State, and 
        local agencies, and private sector entities, to 
        simulate responses to such an incident.
  (c) Updates of Plan.--The Secretary of Homeland Security 
shall review and update the joint import safety rapid response 
plan, as appropriate, after conducting exercises under 
subsection (d).
  (d) Import Health and Safety Exercises.--
          (1) In general.--The Secretary of Homeland Security 
        and the Commissioner shall periodically engage in the 
        exercises referred to in subsection (b)(4), in 
        conjunction with Federal, State, and local agencies and 
        private sector entities, as appropriate, to test and 
        evaluate the protocols and practices identified in the 
        joint import safety rapid response plan at United 
        States ports of entry.
          (2) Requirements for exercises.--In conducting 
        exercises under paragraph (1), the Secretary and the 
        Commissioner shall--
                  (A) make allowance for the resources, needs, 
                and constraints of United States ports of entry 
                of different sizes in representative geographic 
                locations across the United States;
                  (B) base evaluations on current risk 
                assessments of merchandise entering the United 
                States at representative United States ports of 
                entry located across the United States;
                  (C) ensure that such exercises are conducted 
                in a manner consistent with the National 
                Incident Management System, the National 
                Response Plan, the National Infrastructure 
                Protection Plan, the National Preparedness 
                Guidelines, the Maritime Transportation System 
                Security Plan, and other such national 
                initiatives of the Department of Homeland 
                Security, as appropriate; and
                  (D) develop metrics with respect to the 
                resumption of the entry of merchandise into the 
                United States after an incident described in 
                subsection (a)(1).
          (3) Requirements for testing and evaluation.--The 
        Secretary and the Commissioner shall ensure that the 
        testing and evaluation carried out in conducting 
        exercises under paragraph (1)--
                  (A) are performed using clear and objective 
                performance measures; and
                  (B) result in the identification of specific 
                recommendations or best practices for 
                responding to an incident described in 
                subsection (a)(1).
          (4) Dissemination of recommendations and best 
        practices.--The Secretary and the Commissioner shall--
                  (A) share the recommendations or best 
                practices identified under paragraph (3)(B) 
                among the members of the interagency Import 
                Safety Working Group established under section 
                201 and with, as appropriate--
                          (i) State, local, and tribal 
                        governments;
                          (ii) foreign governments; and
                          (iii) private sector entities; and
                  (B) use such recommendations and best 
                practices to update the joint import safety 
                rapid response plan.

SEC. 203. TRAINING.

  The Commissioner shall ensure that personnel of U.S. Customs 
and Border Protection assigned to United States ports of entry 
are trained to effectively administer the provisions of this 
title and to otherwise assist in ensuring the safety of 
merchandise imported into the United States and the expeditious 
entry of such merchandise.

  TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

SEC. 301. DEFINITION OF INTELLECTUAL PROPERTY RIGHTS.

  In this title, the term ``intellectual property rights'' 
refers to copyrights, trademarks, and other forms of 
intellectual property rights that are enforced by U.S. Customs 
and Border Protection or U.S. Immigration and Customs 
Enforcement.

SEC. 302. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT.

  (a) In General.--The Tariff Act of 1930 is amended by 
inserting after section 628 (19 U.S.C. 1628) the following new 
section:

``SEC. 628A. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT.

  ``(a) In General.--Subject to subsections (c) and (d), if the 
Commissioner of U.S. Customs and Border Protection suspects 
that merchandise is being imported into the United States in 
violation of section 526 of this Act or section 602, 
1201(a)(2), or 1201(b)(1) of title 17, United States Code, and 
determines that the examination or testing of the merchandise 
by a person described in subsection (b) would assist the 
Commissioner in determining if the merchandise is being 
imported in violation of that section, the Commissioner, to 
permit the person to conduct the examination and testing--
          ``(1) shall provide to the person information that 
        appears on the merchandise and its packaging and 
        labels, including unredacted images of the merchandise 
        and its packaging and labels; and
          ``(2) may, subject to any applicable bonding 
        requirements, provide to the person unredacted samples 
        of the merchandise.
  ``(b) Person Described.--A person described in this 
subsection is--
          ``(1) in the case of merchandise suspected of being 
        imported in violation of section 526, the owner of the 
        trademark suspected of being copied or simulated by the 
        merchandise;
          ``(2) in the case of merchandise suspected of being 
        imported in violation of section 602 of title 17, 
        United States Code, the owner of the copyright 
        suspected of being infringed by the merchandise;
          ``(3) in the case of merchandise suspected of being 
        primarily designed or produced for the purpose of 
        circumventing a technological measure that effectively 
        controls access to a work protected under that title, 
        and being imported in violation of section 1201(a)(2) 
        of that title, the owner of a copyright in the work; 
        and
          ``(4) in the case of merchandise suspected of being 
        primarily designed or produced for the purpose of 
        circumventing protection afforded by a technological 
        measure that effectively protects a right of an owner 
        of a copyright in a work or a portion of a work, and 
        being imported in violation of section 1201(b)(1) of 
        that title, the owner of the copyright.
  ``(c) Limitation.--Subsection (a) applies only with respect 
to merchandise suspected of infringing a trademark or copyright 
that is recorded with U.S. Customs and Border Protection.
  ``(d) Exception.--The Commissioner may not provide under 
subsection (a) information, photographs, or samples to a person 
described in subsection (b) if providing such information, 
photographs, or samples would compromise an ongoing law 
enforcement investigation or national security.''.
  (b) Termination of Previous Authority.--Notwithstanding 
paragraph (2) of section 818(g) of the National Defense 
Authorization Act for Fiscal Year 2012 (Public Law 112-81; 125 
Stat. 1496; 10 U.S.C. 2302 note), paragraph (1) of that section 
shall have no force or effect on or after the date of the 
enactment of this Act.

SEC. 303. SEIZURE OF CIRCUMVENTION DEVICES.

  (a) In General.--Section 596(c)(2) of the Tariff Act of 1930 
(19 U.S.C. 1595a(c)(2)) is amended--
          (1) in subparagraph (E), by striking ``or'';
          (2) in subparagraph (F), by striking the period and 
        inserting ``; or''; and
          (3) by adding at the end the following:
                  ``(G) U.S. Customs and Border Protection 
                determines it is a technology, product, 
                service, device, component, or part thereof the 
                importation of which is prohibited under 
                subsection (a)(2) or (b)(1) of section 1201 of 
                title 17, United States Code.''.
  (b) Notification of Persons Injured.--
          (1) In general.--Not later than the date that is 30 
        business days after seizing merchandise pursuant to 
        subparagraph (G) of section 596(c)(2) of the Tariff Act 
        of 1930, as added by subsection (a), the Commissioner 
        shall provide to any person identified under paragraph 
        (2) information regarding the merchandise seized that 
        is equivalent to information provided to copyright 
        owners under regulations of U.S. Customs and Border 
        Protection for merchandise seized for violation of the 
        copyright laws.
          (2) Persons to be provided information.--Any person 
        injured by the violation of (a)(2) or (b)(1) of section 
        1201 of title 17, United States Code, that resulted in 
        the seizure of the merchandise shall be provided 
        information under paragraph (1), if that person is 
        included on a list maintained by the Commissioner that 
        is revised annually through publication in the Federal 
        Register.
          (3) Regulations.--Not later than one year after the 
        date of the enactment of this Act, the Secretary of the 
        Treasury shall prescribe regulations establishing 
        procedures that implement this subsection.

SEC. 304. ENFORCEMENT BY U.S. CUSTOMS AND BORDER PROTECTION OF WORKS 
                    FOR WHICH COPYRIGHT REGISTRATION IS PENDING.

  Not later than the date that is 180 days after the date of 
the enactment of this Act, the Secretary of Homeland Security 
shall authorize a process pursuant to which the Commissioner 
shall enforce a copyright for which the owner has submitted an 
application for registration under title 17, United States 
Code, with the United States Copyright Office, to the same 
extent and in the same manner as if the copyright were 
registered with the Copyright Office, including by sharing 
information, images, and samples of merchandise suspected of 
infringing the copyright under section 628A of the Tariff Act 
of 1930, as added by section 302.

SEC. 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS COORDINATION CENTER.

  (a) Establishment.--The Secretary of Homeland Security 
shall--
          (1) establish within U.S. Immigration and Customs 
        Enforcement a National Intellectual Property Rights 
        Coordination Center; and
          (2) appoint an Assistant Director to head the 
        National Intellectual Property Rights Coordination 
        Center.
  (b) Duties.--The Assistant Director of the National 
Intellectual Property Rights Coordination Center shall--
          (1) coordinate the investigation of sources of 
        merchandise that infringe intellectual property rights 
        to identify organizations and individuals that produce, 
        smuggle, or distribute such merchandise;
          (2) conduct and coordinate training with other 
        domestic and international law enforcement agencies on 
        investigative best practices--
                  (A) to develop and expand the capability of 
                such agencies to enforce intellectual property 
                rights; and
                  (B) to develop metrics to assess whether the 
                training improved enforcement of intellectual 
                property rights;
          (3) coordinate, with U.S. Customs and Border 
        Protection, activities conducted by the United States 
        to prevent the importation or exportation of 
        merchandise that infringes intellectual property 
        rights;
          (4) support the international interdiction of 
        merchandise destined for the United States that 
        infringes intellectual property rights;
          (5) collect and integrate information regarding 
        infringement of intellectual property rights from 
        domestic and international law enforcement agencies and 
        other non-Federal sources;
          (6) develop a means to receive and organize 
        information regarding infringement of intellectual 
        property rights from such agencies and other sources;
          (7) disseminate information regarding infringement of 
        intellectual property rights to other Federal agencies, 
        as appropriate;
          (8) develop and implement risk-based alert systems, 
        in coordination with U.S. Customs and Border 
        Protection, to improve the targeting of persons that 
        repeatedly infringe intellectual property rights;
          (9) coordinate with the offices of United States 
        attorneys in order to develop expertise in, and assist 
        with the investigation and prosecution of, crimes 
        relating to the infringement of intellectual property 
        rights; and
          (10) carry out such other duties as the Secretary of 
        Homeland Security may assign.
  (c) Coordination With Other Agencies.--In carrying out the 
duties described in subsection (b), the Assistant Director of 
the National Intellectual Property Rights Coordination Center 
shall coordinate with--
          (1) U.S. Customs and Border Protection;
          (2) the Food and Drug Administration;
          (3) the Department of Justice;
          (4) the Department of Commerce, including the United 
        States Patent and Trademark Office;
          (5) the United States Postal Inspection Service;
          (6) the Office of the United States Trade 
        Representative;
          (7) any Federal, State, local, or international law 
        enforcement agencies that the Director of U.S. 
        Immigration and Customs Enforcement considers 
        appropriate; and
          (8) any other entities that the Director considers 
        appropriate.
  (d) Private Sector Outreach.--
          (1) In general.--The Assistant Director of the 
        National Intellectual Property Rights Coordination 
        Center shall work with U.S. Customs and Border 
        Protection and other Federal agencies to conduct 
        outreach to private sector entities in order to 
        determine trends in and methods of infringing 
        intellectual property rights.
          (2) Information sharing.--The Assistant Director 
        shall share information and best practices with respect 
        to the enforcement of intellectual property rights with 
        private sector entities, as appropriate, in order to 
        coordinate public and private sector efforts to combat 
        the infringement of intellectual property rights.

SEC. 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT OF INTELLECTUAL 
                    PROPERTY RIGHTS.

  The Commissioner and the Director of U.S. Immigration and 
Customs Enforcement shall include in the joint strategic plan 
required by section 105--
          (1) a description of the efforts of the Department of 
        Homeland Security to enforce intellectual property 
        rights;
          (2) a list of the 10 United States ports of entry at 
        which U.S. Customs and Border Protection has seized the 
        most merchandise, both by volume and by value, that 
        infringes intellectual property rights during the most 
        recent 2-year period for which data are available; and
          (3) a recommendation for the optimal allocation of 
        personnel, resources, and technology to ensure that 
        U.S. Customs and Border Protection and U.S. Immigration 
        and Customs Enforcement are adequately enforcing 
        intellectual property rights.

SEC. 307. PERSONNEL DEDICATED TO THE ENFORCEMENT OF INTELLECTUAL 
                    PROPERTY RIGHTS.

  (a) Personnel of U.S. Customs and Border Protection.--The 
Commissioner and the Director of U.S. Immigration and Customs 
Enforcement shall ensure that sufficient personnel are assigned 
throughout U.S. Customs and Border Protection and U.S. 
Immigration and Customs Enforcement, respectively, who have 
responsibility for preventing the importation into the United 
States of merchandise that infringes intellectual property 
rights.
  (b) Staffing of National Intellectual Property Rights 
Coordination Center.--The Commissioner shall--
          (1) assign not fewer than 3 full-time employees of 
        U.S. Customs and Border Protection to the National 
        Intellectual Property Rights Coordination Center 
        established under section 305; and
          (2) ensure that sufficient personnel are assigned to 
        United States ports of entry to carry out the 
        directives of the Center.

SEC. 308. TRAINING WITH RESPECT TO THE ENFORCEMENT OF INTELLECTUAL 
                    PROPERTY RIGHTS.

  (a) Training.--The Commissioner shall ensure that officers of 
U.S. Customs and Border Protection are trained to effectively 
detect and identify merchandise destined for the United States 
that infringes intellectual property rights, including through 
the use of technologies identified under subsection (c).
  (b) Consultation With Private Sector.--The Commissioner shall 
consult with private sector entities to better identify 
opportunities for collaboration between U.S. Customs and Border 
Protection and such entities with respect to training for 
officers of U.S. Customs and Border Protection in enforcing 
intellectual property rights.
  (c) Identification of New Technologies.--In consultation with 
private sector entities, the Commissioner shall identify--
          (1) technologies with the cost-effective capability 
        to detect and identify merchandise at United States 
        ports of entry that infringes intellectual property 
        rights; and
          (2) cost-effective programs for training officers of 
        U.S. Customs and Border Protection to use such 
        technologies.
  (d) Donations of Technology.--Not later than the date that is 
180 days after the date of the enactment of this Act, the 
Commissioner shall prescribe regulations to enable U.S. Customs 
and Border Protection to receive donations of hardware, 
software, equipment, and similar technologies, and to accept 
training and other support services, from private sector 
entities, for the purpose of enforcing intellectual property 
rights.

SEC. 309. INTERNATIONAL COOPERATION AND INFORMATION SHARING.

  (a) Cooperation.--The Secretary of Homeland Security shall 
coordinate with the competent law enforcement and customs 
authorities of foreign countries, including by sharing 
information relevant to enforcement actions, to enhance the 
efforts of the United States and such authorities to enforce 
intellectual property rights.
  (b) Technical Assistance.--The Secretary of Homeland Security 
shall provide technical assistance to competent law enforcement 
and customs authorities of foreign countries to enhance the 
ability of such authorities to enforce intellectual property 
rights.
  (c) Interagency Collaboration.--The Commissioner and the 
Director of U.S. Immigration and Customs Enforcement shall lead 
interagency efforts to collaborate with law enforcement and 
customs authorities of foreign countries to enforce 
intellectual property rights.

SEC. 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT.

  Not later than June 30, 2016, and annually thereafter, the 
Commissioner and the Director of U.S. Immigration and Customs 
Enforcement shall jointly submit to the Committee on Finance of 
the Senate, the Committee on Ways and Means of the House of 
Representatives, the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the Committee on 
Homeland Security of the House of Representatives a report that 
contains the following:
          (1) With respect to the enforcement of intellectual 
        property rights, the following:
                  (A) The number of referrals, during the 
                preceding year, from U.S. Customs and Border 
                Protection to U.S. Immigration and Customs 
                Enforcement relating to infringement of 
                intellectual property rights .
                  (B) The number of investigations relating to 
                the infringement of intellectual property 
                rights referred by U.S. Immigration and Customs 
                Enforcement to a United States attorney for 
                prosecution and the United States attorneys to 
                which those investigations were referred.
                  (C) The number of such investigations 
                accepted by each such United States attorney 
                and the status or outcome of each such 
                investigation.
                  (D) The number of such investigations that 
                resulted in the imposition of civil or criminal 
                penalties.
                  (E) A description of the efforts of U.S. 
                Custom and Border Protection and U.S. 
                Immigration and Customs Enforcement to improve 
                the success rates of investigations and 
                prosecutions relating to the infringement of 
                intellectual property rights.
          (2) An estimate of the average time required by the 
        Office of International Trade of U.S. Customs and 
        Border Protection to respond to a request from port 
        personnel for advice with respect to whether 
        merchandise detained by U.S. Customs and Border 
        Protection infringed intellectual property rights, 
        distinguished by types of intellectual property rights 
        infringed.
          (3) A summary of the outreach efforts of U.S. Customs 
        and Border Protection and U.S. Immigration and Customs 
        Enforcement with respect to--
                  (A) the interdiction and investigation of, 
                and the sharing of information between those 
                agencies and other Federal agencies to prevent, 
                the infringement of intellectual property 
                rights;
                  (B) collaboration with private sector 
                entities--
                          (i) to identify trends in the 
                        infringement of, and technologies that 
                        infringe, intellectual property rights;
                          (ii) to identify opportunities for 
                        enhanced training of officers of U.S. 
                        Customs and Border Protection and U.S. 
                        Immigration and Customs Enforcement; 
                        and
                          (iii) to develop best practices to 
                        enforce intellectual property rights; 
                        and
                  (C) coordination with foreign governments and 
                international organizations with respect to the 
                enforcement of intellectual property rights.
          (4) A summary of the efforts of U.S. Customs and 
        Border Protection and U.S. Immigration and Customs 
        Enforcement to address the challenges with respect to 
        the enforcement of intellectual property rights 
        presented by Internet commerce and the transit of small 
        packages and an identification of the volume, value, 
        and type of merchandise seized for infringing 
        intellectual property rights as a result of such 
        efforts.
          (5) A summary of training relating to the enforcement 
        of intellectual property rights conducted under section 
        308 and expenditures for such training.

SEC. 311. INFORMATION FOR TRAVELERS REGARDING VIOLATIONS OF 
                    INTELLECTUAL PROPERTY RIGHTS.

  (a) In General.--The Secretary of Homeland Security shall 
develop and carry out an educational campaign to inform 
travelers entering or leaving the United States about the 
legal, economic, and public health and safety implications of 
acquiring merchandise that infringes intellectual property 
rights outside the United States and importing such merchandise 
into the United States in violation of United States law.
  (b) Declaration Forms.--The Commissioner shall ensure that 
all versions of Declaration Form 6059B of U.S. Customs and 
Border Protection, or a successor form, including any 
electronic equivalent of Declaration Form 6059B or a successor 
form, printed or displayed on or after the date that is 30 days 
after the date of the enactment of this Act include a written 
warning to inform travelers arriving in the United States that 
importation of merchandise into the United States that 
infringes intellectual property rights may subject travelers to 
civil or criminal penalties and may pose serious risks to 
safety or health.

TITLE IV--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY 
                                 ORDERS

SEC. 401. SHORT TITLE.

  This title may be cited as the ``Preventing Recurring Trade 
Evasion and Circumvention Act'' or ``PROTECT Act''.

SEC. 402. DEFINITIONS.

  In this title:
          (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                  (A) the Committee on Finance and the 
                Committee on Appropriations of the Senate; and
                  (B) the Committee on Ways and Means and the 
                Committee on Appropriations of the House of 
                Representatives.
          (2) Covered merchandise.--The term ``covered 
        merchandise'' means merchandise that is subject to--
                  (A) a countervailing duty order issued under 
                section 706 of the Tariff Act of 1930; or
                  (B) an antidumping duty order issued under 
                section 736 of the Tariff Act of 1930.
          (3) Eligible small business.--
                  (A) In general.--The term ``eligible small 
                business'' means any business concern which, in 
                the Commissioner's judgment, due to its small 
                size, has neither adequate internal resources 
                nor financial ability to obtain qualified 
                outside assistance in preparing and submitting 
                for consideration allegations of evasion.
                  (B) Nonreviewability.--Any agency decision 
                regarding whether a business concern is an 
                eligible small business for purposes of section 
                411(b)(4)(E) is not reviewable by any other 
                agency or by any court.
          (4) Enter; entry.--The terms ``enter'' and ``entry'' 
        refer to the entry, or withdrawal from warehouse for 
        consumption, in the customs territory of the United 
        States.
          (5) Evade; evasion.--The terms ``evade'' and 
        ``evasion'' refer to entering covered merchandise into 
        the customs territory of the United States by means of 
        any document or electronically transmitted data or 
        information, written or oral statement, or act that is 
        material and false, or any omission that is material, 
        and that results in any cash deposit or other security 
        or any amount of applicable antidumping or 
        countervailing duties being reduced or not being 
        applied with respect to the merchandise.
          (6) Secretary.--The term ``Secretary'' means the 
        Secretary of the Treasury.
          (7) Trade remedy laws.--The term ``trade remedy 
        laws'' means title VII of the Tariff Act of 1930.

SEC. 403. APPLICATION TO CANADA AND MEXICO.

  Pursuant to article 1902 of the North American Free Trade 
Agreement and section 408 of the North American Free Trade 
Agreement Implementation Act (19 U.S.C. 3438), this title and 
the amendments made by this title shall apply with respect to 
goods from Canada and Mexico.

    Subtitle A--Actions Relating to Enforcement of Trade Remedy Laws

SEC. 411. TRADE REMEDY LAW ENFORCEMENT DIVISION.

  (a) Establishment.--
          (1) In general.--The Secretary of Homeland Security 
        shall establish and maintain within the Office of 
        International Trade of U.S. Customs and Border 
        Protection, established under section 2(d) of the Act 
        of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 
        2072(d)), a Trade Remedy Law Enforcement Division.
          (2) Composition.--The Trade Law Remedy Enforcement 
        Division shall be composed of--
                  (A) headquarters personnel led by a Director, 
                who shall report to the Assistant Commissioner 
                of the Office of International Trade; and
                  (B) a National Targeting and Analysis Group 
                dedicated to preventing and countering evasion.
          (3) Duties.--The Trade Remedy Law Enforcement 
        Division shall be dedicated--
                  (A) to the development and administration of 
                policies to prevent and counter evasion;
                  (B) to direct enforcement and compliance 
                assessment activities concerning evasion;
                  (C) to the development and conduct of 
                commercial risk assessment targeting with 
                respect to cargo destined for the United States 
                in accordance with subsection (c);
                  (D) to issuing Trade Alerts described in 
                subsection (d); and
                  (E) to the development of policies for the 
                application of single entry and continuous 
                bonds for entries of covered merchandise to 
                sufficiently protect the collection of 
                antidumping and countervailing duties 
                commensurate with the level of risk of 
                noncollection.
  (b) Duties of Director.--The duties of the Director of the 
Trade Remedy Law Enforcement Division shall include--
          (1) directing the trade enforcement and compliance 
        assessment activities of U.S. Customs and Border 
        Protection that concern evasion;
          (2) facilitating, promoting, and coordinating 
        cooperation and the exchange of information between 
        U.S. Customs and Border Protection, U.S. Immigration 
        and Customs Enforcement, and other relevant agencies 
        regarding evasion;
          (3) notifying on a timely basis the administering 
        authority (as defined in section 771(1) of the Tariff 
        Act of 1930 (19 U.S.C. 1677(1))) and the Commission (as 
        defined in section 771(2) of the Tariff Act of 1930 (19 
        U.S.C. 1677(2))) of any finding, determination, civil 
        action, or criminal action taken by U.S. Customs and 
        Border Protection or other Federal agency regarding 
        evasion;
          (4) serving as the primary liaison between U.S. 
        Customs and Border Protection and the public regarding 
        United States Government activities concerning evasion, 
        including--
                  (A) receive and transmit to the appropriate 
                U.S. Customs and Border Protection office 
                allegations from parties of evasion;
                  (B) upon request by the party or parties that 
                submitted an allegation of evasion, provide 
                information to such party or parties on the 
                status of U.S. Customs and Border Protection's 
                consideration of the allegation and decision to 
                pursue or not pursue any administrative 
                inquiries or other actions, such as changes in 
                policies, procedures, or resource allocation as 
                a result of the allegation;
                  (C) as needed, request from the party or 
                parties that submitted an allegation of evasion 
                any additional information that may be relevant 
                for U.S. Customs and Border Protection 
                determining whether to initiate an 
                administrative inquiry or take any other action 
                regarding the allegation;
                  (D) notify on a timely basis the party or 
                parties that submitted such an allegation of 
                the results of any administrative, civil or 
                criminal actions taken by U.S. Customs and 
                Border Protection or other Federal agency 
                regarding evasion as a direct or indirect 
                result of the allegation;
                  (E) upon request, provide technical 
                assistance and advice to eligible small 
                businesses to enable such businesses to prepare 
                and submit allegations of evasion, except that 
                the Director may deny assistance if the 
                Director concludes that the allegation, if 
                submitted, would not lead to the initiation of 
                an administrative inquiry or any other action 
                to address the allegation;
                  (F) in cooperation with the public, the 
                Commercial Customs Operations Advisory 
                Committee, the Trade Support Network, and any 
                other relevant parties and organizations, 
                develop guidelines on the types and nature of 
                information that may be provided in allegations 
                of evasion; and
                  (G) regularly consult with the public, the 
                Commercial Customs Operations Advisory 
                Committee, the Trade Support Network, and any 
                other relevant parties and organizations 
                regarding the development and implementation of 
                regulations, interpretations, and policies 
                related to countering evasion.
  (c) Preventing and Countering Evasion of the Trade Remedy 
Laws.--In carrying out its duties with respect to preventing 
and countering evasion, the National Targeting and Analysis 
Group dedicated to preventing and countering evasion shall--
          (1) establish targeted risk assessment methodologies 
        and standards--
                  (A) for evaluating the risk that cargo 
                destined for the United States may constitute 
                evading covered merchandise; and
                  (B) for issuing, as appropriate, Trade Alerts 
                described in subsection (d); and
          (2) to the extent practicable and otherwise 
        authorized by law, use information available from the 
        Automated Commercial System, the Automated Commercial 
        Environment computer system, the Automated Targeting 
        System, the Automated Export System, the International 
        Trade Data System, and the TECS, and any similar and 
        successor systems, to administer the methodologies and 
        standards established under paragraph (1).
  (d) Trade Alerts.--Based upon the application of the targeted 
risk assessment methodologies and standards established under 
subsection (c), the Director of the Trade Remedy Law 
Enforcement Division shall issue Trade Alerts or other such 
means of notification to directors of United States ports of 
entry directing further inspection, physical examination, or 
testing of merchandise to ensure compliance with the trade 
remedy laws and to require additional bonds, cash deposits, or 
other security to ensure collection of any duties, taxes and 
fees owed.

SEC. 412. COLLECTION OF INFORMATION ON EVASION OF TRADE REMEDY LAWS.

  (a) Authority to Collect Information.--To determine whether 
covered merchandise is being entered into the customs territory 
of the United States through evasion, the Secretary, acting 
through the Commissioner--
          (1) shall exercise all existing authorities to 
        collect information needed to make the determination; 
        and
          (2) may collect such additional information as is 
        necessary to make the determination through such 
        methods as the Commissioner considers appropriate, 
        including by issuing questionnaires with respect to the 
        entry or entries at issue to--
                  (A) a person who filed an allegation with 
                respect to the covered merchandise;
                  (B) a person who is alleged to have entered 
                the covered merchandise into the customs 
                territory of the United States through evasion; 
                or
                  (C) any other person who is determined to 
                have information relevant to the allegation of 
                entry of covered merchandise into the customs 
                territory of the United States through evasion.
  (b) Adverse Inference.--
          (1) In general.--If the Secretary finds that a person 
        who filed an allegation, a person alleged to have 
        entered covered merchandise into the customs territory 
        of the United States through evasion, or a foreign 
        producer or exporter of covered merchandise that is 
        alleged to have entered into the customs territory of 
        the United States through evasion, has failed to 
        cooperate by not acting to the best of the person's 
        ability to comply with a request for information, the 
        Secretary may, in making a determination whether an 
        entry or entries of covered merchandise may constitute 
        merchandise that is entered into the customs territory 
        of the United States through evasion, use an inference 
        that is adverse to the interests of that person in 
        selecting from among the facts otherwise available to 
        determine whether evasion has occurred.
          (2) Adverse inference described.--An adverse 
        inference used under paragraph (1) may include reliance 
        on information derived from--
                  (A) the allegation of evasion of the trade 
                remedy laws, if any, submitted to U.S. Customs 
                and Border Protection;
                  (B) a determination by the Commissioner in 
                another investigation, proceeding, or other 
                action regarding evasion of the unfair trade 
                laws; or
                  (C) any other available information.

SEC. 413. ACCESS TO INFORMATION.

  (a) In General.--Section 777(b)(1)(A)(ii) of the Tariff Act 
of 1930 (19 U.S.C. 1677f(b)(1)(A)(ii)) is amended by inserting 
``negligence, gross negligence, or'' after ``regarding''.
  (b) Additional Information.--Notwithstanding any other 
provision of law, the Secretary is authorized to provide to the 
Secretary of Commerce or the United States International Trade 
Commission any information that is necessary to enable the 
Secretary of Commerce or the United States International Trade 
Commission to assist the Secretary to identify, through risk 
assessment targeting or otherwise, covered merchandise that is 
entered into the customs territory of the United States through 
evasion.

SEC. 414. COOPERATION WITH FOREIGN COUNTRIES ON PREVENTING EVASION OF 
                    TRADE REMEDY LAWS.

  (a) Bilateral Agreements.--
          (1) In general.--The Secretary shall seek to 
        negotiate and enter into bilateral agreements with the 
        customs authorities or other appropriate authorities of 
        foreign countries for purposes of cooperation on 
        preventing evasion of the trade remedy laws of the 
        United States and the trade remedy laws of the other 
        country.
          (2) Provisions and authorities.--The Secretary shall 
        seek to include in each such bilateral agreement the 
        following provisions and authorities:
                  (A) On the request of the importing country, 
                the exporting country shall provide, consistent 
                with its laws, regulations, and procedures, 
                production, trade, and transit documents and 
                other information necessary to determine 
                whether an entry or entries exported from the 
                exporting country are subject to the importing 
                country's trade remedy laws.
                  (B) On the written request of the importing 
                country, the exporting country shall conduct a 
                verification for purposes of enabling the 
                importing country to make a determination 
                described in subparagraph (A).
                  (C) The exporting country may allow the 
                importing country to participate in a 
                verification described in subparagraph (B), 
                including through a site visit.
                  (D) If the exporting country does not allow 
                participation of the importing country in a 
                verification described in subparagraph (B), the 
                importing country may take this fact into 
                consideration in its trade enforcement and 
                compliance assessment activities regarding the 
                compliance of the exporting country's exports 
                with the importing country's trade remedy laws.
  (b) Consideration.--The Commissioner is authorized to take 
into consideration whether a country is a signatory to a 
bilateral agreement described in subsection (a) and the extent 
to which the country is cooperating under the bilateral 
agreement for purposes of trade enforcement and compliance 
assessment activities of U.S. Customs and Border Protection 
that concern evasion by such country's exports.
  (c) Report.--Not later than December 31 of each year 
beginning after the date of the enactment of this Act, the 
Secretary shall submit to the appropriate congressional 
committees a report summarizing--
          (1) the status of any ongoing negotiations of 
        bilateral agreements described in subsection (a), 
        including the identities of the countries involved in 
        such negotiations;
          (2) the terms of any completed bilateral agreements 
        described in subsection (a); and
          (3) bilateral cooperation and other activities 
        conducted pursuant to or enabled by any completed 
        bilateral agreements described in subsection (a).

SEC. 415. TRADE NEGOTIATING OBJECTIVES.

  The principal negotiating objectives of the United States 
shall include obtaining the objectives of the bilateral 
agreements described under section 414(a) for any trade 
agreements under negotiation as of the date of the enactment of 
this Act or future trade agreement negotiations.

       Subtitle B--Investigation of Evasion of Trade Remedy Laws

SEC. 421. PROCEDURES FOR INVESTIGATION OF EVASION OF ANTIDUMPING AND 
                    COUNTERVAILING DUTY ORDERS.

  (a) In General.--Title VII of the Tariff Act of 1930 (19 
U.S.C. 1671 et seq.) is amended by inserting after section 781 
the following:

``SEC. 781A. PROCEDURES FOR PREVENTION OF EVASION OF ANTIDUMPING AND 
                    COUNTERVAILING DUTY ORDERS.

  ``(a) Definitions.--In this section:
          ``(1) Administering authority.--The term 
        `administering authority' has the meaning given that 
        term in section 771.
          ``(2) Commissioner.--The term `Commissioner' means 
        the Commissioner of U.S. Customs and Border Protection.
          ``(3) Covered merchandise.--The term `covered 
        merchandise' means merchandise that is subject to--
                  ``(A) a countervailing duty order issued 
                under section 706; or
                  ``(B) an antidumping duty order issued under 
                section 736.
          ``(4) Evasion.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B), the term `evasion' refers to 
                entering covered merchandise into the customs 
                territory of the United States by means of any 
                document or electronically transmitted data or 
                information, written or oral statement, or act 
                that is material and false, or any omission 
                that is material, and that results in any cash 
                deposit or other security or any amount of 
                applicable antidumping or countervailing duties 
                being reduced or not being applied with respect 
                to the merchandise.
                  ``(B) Exception for clerical error.--
                          ``(i) In general.--Except as provided 
                        in clause (ii), the term `evasion' does 
                        not include entering covered 
                        merchandise into the customs territory 
                        of the United States by means of--
                                  ``(I) a document or 
                                electronically transmitted data 
                                or information, written or oral 
                                statement, or act that is false 
                                as a result of a clerical 
                                error; or
                                  ``(II) an omission that 
                                results from a clerical error.
                          ``(ii) Patterns of negligent 
                        conduct.--If the administering 
                        authority determines that a person has 
                        entered covered merchandise into the 
                        customs territory of the United States 
                        by means of a clerical error referred 
                        to in subclause (I) or (II) of clause 
                        (i) and that the clerical error is part 
                        of a pattern of negligent conduct on 
                        the part of that person, the 
                        administering authority may determine, 
                        notwithstanding clause (i), that the 
                        person has entered such covered 
                        merchandise into the customs territory 
                        of the United States by means of 
                        evasion.
                          ``(iii) Electronic repetition of 
                        errors.--For purposes of clause (ii), 
                        the mere unintentional repetition by an 
                        electronic system of an initial 
                        clerical error does not constitute a 
                        pattern of negligent conduct.
                          ``(iv) Rule of construction.--A 
                        determination by the administering 
                        authority that a person has entered 
                        covered merchandise into the customs 
                        territory of the United States by means 
                        of a clerical error referred to in 
                        subclause (I) or (II) of clause (i) 
                        rather than by means of evasion shall 
                        not be construed to excuse that person 
                        from the payment of any duties 
                        applicable to the merchandise.
  ``(b) Investigation by Administering Authority.--
          ``(1) Procedures for initiating investigations.--
                  ``(A) Initiation by administering 
                authority.--An investigation under this 
                subsection shall be initiated with respect to 
                merchandise imported into the United States 
                whenever the administering authority 
                determines, from information available to the 
                administering authority, that an investigation 
                is warranted with respect to whether the 
                merchandise is covered merchandise that has 
                entered into the customs territory of the 
                United States by means of evasion.
                  ``(B) Initiation by petition or referral.--
                          ``(i) In general.--The administering 
                        authority shall determine whether to 
                        initiate an investigation under this 
                        subparagraph not later than 30 days 
                        after the date on which the 
                        administering authority receives a 
                        petition described in clause (ii) or a 
                        referral described in clause (iii).
                          ``(ii) Petition described.--A 
                        petition described in this clause is a 
                        petition that--
                                  ``(I) is filed with the 
                                administering authority by an 
                                interested party specified in 
                                subparagraph (A), (C), (D), 
                                (E), (F), or (G) of section 
                                771(9);
                                  ``(II) alleges that 
                                merchandise imported into the 
                                United States is covered 
                                merchandise that has entered 
                                into the customs territory of 
                                the United States by means of 
                                evasion; and
                                  ``(III) is accompanied by 
                                information reasonably 
                                available to the petitioner 
                                supporting those allegations.
                          ``(iii) Referral described.--A 
                        referral described in this clause is a 
                        referral made by the Commissioner 
                        pursuant to subsection (c)(1).
          ``(2) Time limits for determinations.--
                  ``(A) Preliminary determination.--
                          ``(i) In general.--Not later than 90 
                        days after the administering authority 
                        initiates an investigation under 
                        paragraph (1) with respect to 
                        merchandise, the administering 
                        authority shall issue a preliminary 
                        determination, based on information 
                        available to the administering 
                        authority at the time of the 
                        determination, with respect to whether 
                        there is a reasonable basis to believe 
                        or suspect that the merchandise is 
                        covered merchandise that has entered 
                        into the customs territory of the 
                        United States by means of evasion.
                          ``(ii) Expedited procedures.--If the 
                        administering authority determines that 
                        expedited action is warranted with 
                        respect to an investigation initiated 
                        under paragraph (1), the administering 
                        authority may publish the notice of 
                        initiation of the investigation and the 
                        notice of the preliminary determination 
                        in the Federal Register at the same 
                        time.
                  ``(B) Final determination by the 
                administering authority.--Not later than 300 
                days after the date on which the administering 
                authority initiates an investigation under 
                paragraph (1) with respect to merchandise, the 
                administering authority shall issue a final 
                determination with respect to whether the 
                merchandise is covered merchandise that has 
                entered into the customs territory of the 
                United States by means of evasion.
          ``(3) Access to information.--
                  ``(A) Entry documents, records, and other 
                information.--Not later than 10 days after 
                receiving a request from the administering 
                authority with respect to merchandise that is 
                the subject of an investigation under paragraph 
                (1), the Commissioner shall transmit to the 
                administering authority copies of the 
                documentation and information required by 
                section 484(a)(1) with respect to the entry of 
                the merchandise, as well as any other 
                documentation or information requested by the 
                administering authority.
                  ``(B) Access of interested parties.--Not 
                later than 10 business days after the date on 
                which the administering authority initiates an 
                investigation under paragraph (1) with respect 
                to merchandise, the administering authority 
                shall provide to the authorized representative 
                of each interested party that filed a petition 
                under paragraph (1) or otherwise participates 
                in a proceeding, pursuant to a protective 
                order, the copies of the entry documentation 
                and any other information received by the 
                administering authority under subparagraph (A).
                  ``(C) Business proprietary information from 
                prior segments.--If an authorized 
                representative of an interested party 
                participating in an investigation under 
                paragraph (1) has access to business 
                proprietary information released pursuant to an 
                administrative protective order in a proceeding 
                under subtitle A, B, or C of title VII of the 
                Tariff Act of 1930 that is relevant to the 
                investigation conducted under paragraph (1), 
                that authorized representative may submit such 
                information to the administering authority for 
                its consideration in the context of the 
                investigation conducted under paragraph (1).
          ``(4) Authority to collect and verify additional 
        information.--In making a determination under paragraph 
        (2) with respect to covered merchandise, the 
        administering authority may collect such additional 
        information as is necessary to make the determination 
        through such methods as the administering authority 
        considers appropriate, including by--
                  ``(A) issuing a questionnaire with respect to 
                such covered merchandise to--
                          ``(i) a person that filed an 
                        allegation under paragraph (1)(B)(ii) 
                        that resulted in the initiation of an 
                        investigation under paragraph (1)(A) 
                        with respect to such covered 
                        merchandise;
                          ``(ii) a person alleged to have 
                        entered such covered merchandise into 
                        the customs territory of the United 
                        States by means of evasion;
                          ``(iii) a person that is a foreign 
                        producer or exporter of such covered 
                        merchandise; or
                          ``(iv) the government of a country 
                        from which such covered merchandise was 
                        exported;
                  ``(B) conducting verifications, including on-
                site verifications, of any relevant 
                information; and
                  ``(C) requesting--
                          ``(i) that the Commissioner provide 
                        any information and data available to 
                        U.S. Customs and Border Protection, and
                          ``(ii) that the Commissioner gather 
                        additional necessary information from 
                        the importer of covered merchandise and 
                        other relevant parties.
          ``(5) Adverse inference.--If the administering 
        authority finds that a person described in clause (i), 
        (ii), or (iii) of paragraph (4)(A) has failed to 
        cooperate by not acting to the best of the person's 
        ability to comply with a request for information, the 
        administering authority may, in making a determination 
        under paragraph (2), use an inference that is adverse 
        to the interests of that person in selecting from among 
        the facts otherwise available to make the 
        determination.
          ``(6) Effect of affirmative preliminary 
        determination.--If the administering authority makes a 
        preliminary determination under paragraph (2)(A) that 
        merchandise is covered merchandise that has entered 
        into the customs territory of the United States by 
        means of evasion, the administering authority shall 
        instruct U.S. Customs and Border Protection--
                  ``(A) to suspend liquidation of each entry of 
                the merchandise that--
                          ``(i) enters on or after the date of 
                        the preliminary determination; or
                          ``(ii) enters before that date, if 
                        the liquidation of the entry is not 
                        final on that date; and
                  ``(B) to require the posting of a cash 
                deposit for each entry of the merchandise in an 
                amount determined pursuant to the order, or 
                administrative review conducted under section 
                751, that applies to the merchandise.
          ``(7) Effect of affirmative final determination.--
                  ``(A) In general.--If the administering 
                authority makes a final determination under 
                paragraph (2)(B) that merchandise is covered 
                merchandise that has entered into the customs 
                territory of the United States by means of 
                evasion, the administering authority shall 
                instruct U.S. Customs and Border Protection--
                          ``(i) to assess duties on the 
                        merchandise in an amount determined 
                        pursuant to the order, or 
                        administrative review conducted under 
                        section 751, that applies to the 
                        merchandise;
                          ``(ii) notwithstanding section 501, 
                        to reliquidate, in accordance with such 
                        order or administrative review, each 
                        entry of the merchandise that was 
                        liquidated and is determined to include 
                        covered merchandise; and
                          ``(iii) to review and reassess the 
                        amount of bond or other security the 
                        importer is required to post for such 
                        merchandise entered on or after the 
                        date of the final determination to 
                        ensure the protection of revenue and 
                        compliance with the law.
                  ``(B) Additional authority.--If the 
                administering authority makes a final 
                determination under paragraph (2)(B) that 
                merchandise is covered merchandise that has 
                entered into the customs territory of the 
                United States by means of evasion, the 
                administering authority may instruct U.S. 
                Customs and Border Protection to require the 
                importer of the merchandise to post a cash 
                deposit or bond on such merchandise entered on 
                or after the date of the final determination in 
                an amount the administering authority 
                determines in the final determination to be 
                owed with respect to the merchandise.
          ``(8) Effect of negative final determination.--If the 
        administering authority makes a final determination 
        under paragraph (2)(B) that merchandise is not covered 
        merchandise that has entered into the customs territory 
        of the United States by means of evasion, the 
        administering authority shall terminate the suspension 
        of liquidation and refund any cash deposit imposed 
        pursuant to paragraph (6) with respect to the 
        merchandise.
          ``(9) Notification.--Not later than 5 business days 
        after making a determination under paragraph (2) with 
        respect to covered merchandise, the administering 
        authority may provide to importers, in such manner as 
        the administering authority determines appropriate, 
        information discovered in the investigation that the 
        administering authority determines will help educate 
        importers with respect to importing merchandise into 
        the customs territory of the United States in 
        accordance with all applicable laws and regulations.
          ``(10) Special rule for cases in which the producer 
        or exporter is unknown.--If the administering authority 
        is unable to determine the actual producer or exporter 
        of the merchandise with respect to which the 
        administering authority initiated an investigation 
        under paragraph (1), the administering authority shall, 
        in requiring the posting of a cash deposit under 
        paragraph (6) or assessing duties pursuant to paragraph 
        (7)(A), impose the cash deposit or duties (as the case 
        may be) in the highest amount applicable to any 
        producer or exporter of the merchandise pursuant to any 
        order, or any administrative review conducted under 
        section 751.
          ``(11) Publication of determinations.--The 
        administering authority shall publish in the Federal 
        Register each notice of initiation of an investigation 
        made under paragraph (1)(A), each preliminary 
        determination made under paragraph (2)(A), and each 
        final determination made under paragraph (2)(B).
          ``(12) Referrals to other agencies.--
                  ``(A) After preliminary determination.--
                Notwithstanding section 777 and subject to 
                subparagraph (C), when the administering 
                authority makes an affirmative preliminary 
                determination under paragraph (2)(A), the 
                administering authority shall--
                          ``(i) transmit the administrative 
                        record to the Commissioner for such 
                        additional action as the Commissioner 
                        determines appropriate, including 
                        proceedings under section 592; and
                          ``(ii) at the request of the head of 
                        another agency, transmit the 
                        administrative record to the head of 
                        that agency.
                  ``(B) After final determination.--
                Notwithstanding section 777 and subject to 
                subparagraph (C), when the administering 
                authority makes an affirmative final 
                determination under paragraph (2)(B), the 
                administering authority shall--
                          ``(i) transmit the complete 
                        administrative record to the 
                        Commissioner; and
                          ``(ii) at the request of the head of 
                        another agency, transmit the complete 
                        administrative record to the head of 
                        that agency.
  ``(c) Referral by U.S. Customs and Border Protection.--In the 
event the Commissioner receives information that a person has 
entered covered merchandise into the customs territory of the 
United States through evasion, but is not able to determine 
whether the merchandise is in fact covered merchandise, the 
Commissioner shall--
          ``(1) refer the matter to the administering authority 
        for additional proceedings under subsection (b); and
          ``(2) transmit to the administering authority--
                  ``(A) copies of the entry documents and 
                information required by section 484(a)(1) 
                relating to the merchandise; and
                  ``(B) any additional records or information 
                that the Commissioner considers appropriate.
  ``(d) Cooperation Between U.S. Customs and Border Protection 
and the Department of Commerce.--
          ``(1) Notification of investigations.--Upon receiving 
        a petition and upon initiating an investigation under 
        subsection (b), the administering authority shall 
        notify the Commissioner.
          ``(2) Procedures for cooperation.--Not later than 180 
        days after the date of the enactment of the Trade 
        Facilitation and Trade Enforcement Act of 2015, the 
        Commissioner and the administering authority shall 
        establish procedures to ensure maximum cooperation and 
        communication between U.S. Customs and Border 
        Protection and the administering authority in order to 
        quickly, efficiently, and accurately investigate 
        allegations of evasion of antidumping and 
        countervailing duty orders.
  ``(e) Annual Report on Preventing Evasion of Antidumping and 
Countervailing Duty Orders.--
          ``(1) In general.--Not later than February 28 of each 
        year beginning in 2016, the Under Secretary for 
        International Trade of the Department of Commerce shall 
        submit to the Committee on Finance and the Committee on 
        Appropriations of the Senate and the Committee on Ways 
        and Means and the Committee on Appropriations of the 
        House of Representatives a report on the efforts being 
        taken under subsection (b) to prevent evasion of 
        antidumping and countervailing duty orders.
          ``(2) Contents.--Each report required by paragraph 
        (1) shall include, for the calendar year preceding the 
        submission of the report--
                  ``(A)(i) the number of investigations 
                initiated pursuant to subsection (b); and
                  ``(ii) a description of such investigations, 
                including--
                          ``(I) the results of such 
                        investigations; and
                          ``(II) the amount of antidumping and 
                        countervailing duties collected as a 
                        result of such investigations; and
                  ``(B) the number of referrals made by the 
                Commissioner pursuant to subsection (c).''.
  (b) Technical Amendment.--The table of contents for title VII 
of the Tariff Act of 1930 is amended by inserting after the 
item relating to section 781 the following:

``Sec. 781A. Procedures for prevention of evasion of antidumping and 
          countervailing duty orders.''.
  (c) Judicial Review.--Section 516A(a)(2) of the Tariff Act of 
1930 (19 U.S.C. 1516a(a)(2)) is amended--
          (1) in subparagraph (A)(i)(I), by striking ``or 
        (viii)'' and inserting ``(viii), or (ix)''; and
          (2) in subparagraph (B), by inserting at the end the 
        following:
                          ``(ix) A determination by the 
                        administering authority under section 
                        781A.''.
  (d) Regulations.--Not later than 180 days after the date of 
the enactment of this Act--
          (1) the Secretary of Commerce shall prescribe such 
        regulations as may be necessary to carry out subsection 
        (b) of section 781A of the Tariff Act of 1930 (as added 
        by subsection (a) of this section); and
          (2) the Commissioner shall prescribe such regulations 
        as may be necessary to carry out subsection (c) of such 
        section 781A.
  (e) Effective Date.--The amendments made by this section 
shall--
          (1) take effect on the date that is 180 days after 
        the date of the enactment of this Act; and
          (2) apply with respect to merchandise entered on or 
        after such date of enactment.

SEC. 422. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.

  Not later than 2 years after the date of the enactment of 
this Act, the Comptroller General of the United States shall 
submit to the Committee on Finance and the Committee on 
Appropriations of the Senate and the Committee on Ways and 
Means and the Committee on Appropriations of the House of 
Representatives a report assessing the effectiveness of--
          (1) the provisions of, and amendments made by, this 
        subtitle; and
          (2) the actions taken and procedures developed by the 
        Secretary of Commerce and the Commissioner pursuant to 
        such provisions and amendments to prevent evasion of 
        antidumping and countervailing duty orders under title 
        VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.).

                       Subtitle C--Other Matters

SEC. 431. ALLOCATION AND TRAINING OF PERSONNEL.

  The Commissioner shall, to the maximum extent possible, 
ensure that U.S. Customs and Border Protection--
          (1) employs sufficient personnel who have expertise 
        in, and responsibility for, preventing and 
        investigating the entry of covered merchandise into the 
        customs territory of the United States through evasion;
          (2) on the basis of risk assessment metrics, assigns 
        sufficient personnel with primary responsibility for 
        preventing the entry of covered merchandise into the 
        customs territory of the United States through evasion 
        to the ports of entry in the United States at which the 
        Commissioner determines potential evasion presents the 
        most substantial threats to the revenue of the United 
        States; and
          (3) provides adequate training to relevant personnel 
        to increase expertise and effectiveness in the 
        prevention and identification of entries of covered 
        merchandise into the customs territory of the United 
        States through evasion.

SEC. 432. ANNUAL REPORT ON PREVENTION OF EVASION OF ANTIDUMPING AND 
                    COUNTERVAILING DUTY ORDERS.

  (a) In General.--Not later than February 28 of each year, 
beginning in 2016, the Commissioner, in consultation with the 
Secretary of Commerce and the Director of U.S. Immigration and 
Customs Enforcement, shall submit to the appropriate 
congressional committees a report on the efforts being taken to 
prevent and investigate evasion.
  (b) Contents.--Each report required under subsection (a) 
shall include--
          (1) for the calendar year preceding the submission of 
        the report--
                  (A) a summary of the efforts of U.S. Customs 
                and Border Protection to prevent and identify 
                evasion;
                  (B) the number of allegations of evasion 
                received and the number of allegations of 
                evasion resulting in any administrative, civil, 
                or criminal actions by U.S. Customs and Border 
                Protection or any other agency;
                  (C) a summary of the completed administrative 
                inquiries of evasion, including the number and 
                nature of the inquiries initiated, conducted, 
                or completed, as well as their resolution;
                  (D) with respect to inquiries that lead to 
                issuance of a penalty notice, the penalty 
                amounts;
                  (E) the amounts of antidumping and 
                countervailing duties collected as a result of 
                any actions by U.S. Customs and Border 
                Protection or any other agency;
                  (F) a description of the allocation of 
                personnel and other resources of U.S. Customs 
                and Border Protection and U.S. Immigration and 
                Customs Enforcement to prevent, identify, and 
                investigate evasion, including any assessments 
                conducted regarding the allocation of such 
                personnel and resources; and
                  (G) a description of training conducted to 
                increase expertise and effectiveness in the 
                prevention, identification, and investigation 
                of evasion; and
          (2) a description of U.S. Customs and Border 
        Protection processes and procedures to prevent and 
        identify evasion, including--
                  (A) the specific guidelines, policies, and 
                practices used by U.S. Customs and Border 
                Protection to ensure that allegations of 
                evasion are promptly evaluated and acted upon 
                in a timely manner;
                  (B) an evaluation of the efficacy of such 
                existing guidelines, policies, and practices;
                  (C) identification of any changes since the 
                last report that have materially improved or 
                reduced the effectiveness of U.S. Customs and 
                Border Protection to prevent and identify 
                evasion;
                  (D) a description of the development and 
                implementation of policies for the application 
                of single entry and continuous bonds for 
                entries of covered merchandise to sufficiently 
                protect the collection of antidumping and 
                countervailing duties commensurate with the 
                level of risk on noncollection;
                  (E) the processes and procedures for 
                increased cooperation and information sharing 
                with the Department of Commerce, U.S. 
                Immigration and Customs Enforcement, and any 
                other relevant Federal agencies to prevent and 
                identify evasion; and
                  (F) identification of any recommended policy 
                changes of other Federal agencies or 
                legislative changes to improve the 
                effectiveness of U.S. Customs and Border 
                Protection to prevent and identify evasion.

SEC. 433. ADDRESSING CIRCUMVENTION BY NEW SHIPPERS.

  Section 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 
1675(a)(2)(B)) is amended--
          (1) by striking clause (iii);
          (2) by redesignating clause (iv) as clause (iii); and
          (3) inserting after clause (iii), as redesignated by 
        paragraph (2) of this section, the following:
                          ``(iv) Determinations based on 
                        bonafide sales.--Any weighted average 
                        dumping margin or individual 
                        countervailing duty rate determined for 
                        an exporter or producer in a review 
                        conducted under clause (i) shall be 
                        based solely on the bona fide United 
                        States sales of an exporter or 
                        producer, as the case may be, made 
                        during the period covered by the 
                        review. In determining whether the 
                        United States sales of an exporter or 
                        producer made during the period covered 
                        by the review were bona fide, the 
                        administering authority shall consider, 
                        depending on the circumstances 
                        surrounding such sales--
                                  ``(I) the prices of such 
                                sales;
                                  ``(II) whether such sales 
                                were made in commercial 
                                quantities;
                                  ``(III) the timing of such 
                                sales;
                                  ``(IV) the expenses arising 
                                from such sales;
                                  ``(V) whether the subject 
                                merchandise involved in such 
                                sales was resold in the United 
                                States at a profit;
                                  ``(VI) whether such sales 
                                were made on an arms-length 
                                basis; and
                                  ``(VII) any other factor the 
                                administering authority 
                                determines to be relevant as to 
                                whether such sales are, or are 
                                not, likely to be typical of 
                                those the exporter or producer 
                                will make after completion of 
                                the review.''.

   TITLE V--IMPROVEMENTS TO ANTIDUMPING AND COUNTERVAILING DUTY LAWS

SEC. 501. SHORT TITLE.

  This title may be cited as the ``American Trade Enforcement 
Effectiveness Act''.

SEC. 502. CONSEQUENCES OF FAILURE TO COOPERATE WITH A REQUEST FOR 
                    INFORMATION IN A PROCEEDING.

  Section 776 of the Tariff Act of 1930 (19 U.S.C. 1677e) is 
amended--
          (1) in subsection (b)--
                  (A) by redesignating paragraphs (1) through 
                (4) as subparagraphs (A) through (D), 
                respectively, and by moving such subparagraphs, 
                as so redesignated, 2 ems to the right;
                  (B) by striking ``Adverse Inferences.--If'' 
                and inserting the following: ``Adverse 
                Inferences.--
          ``(1) In general.--If'';
                  (C) by striking ``under this title, may use'' 
                and inserting the following: ``under this 
                title--
                  ``(A) may use''; and
                  (D) by striking ``facts otherwise available. 
                Such adverse inference may include'' and 
                inserting the following: ``facts otherwise 
                available; and
                  ``(B) is not required to determine, or make 
                any adjustments to, a countervailable subsidy 
                rate or weighted average dumping margin based 
                on any assumptions about information the 
                interested party would have provided if the 
                interested party had complied with the request 
                for information.
          ``(2) Potential sources of information for adverse 
        inferences.--An adverse inference under paragraph 
        (1)(A) may include'';
          (2) in subsection (c)--
                  (A) by striking ``Corroboration of Secondary 
                Information.--When the'' and inserting the 
                following: ``Corroboration of Secondary 
                Information.--
          ``(1) In general.--Except as provided in paragraph 
        (2), when the''; and
                  (B) by adding at the end the following:
          ``(2) Exception.--The administrative authority and 
        the Commission shall not be required to corroborate any 
        dumping margin or countervailing duty applied in a 
        separate segment of the same proceeding.''; and
          (3) by adding at the end the following:
  ``(d) Subsidy Rates and Dumping Margins in Adverse Inference 
Determinations.--
          ``(1) In general.--If the administering authority 
        uses an inference that is adverse to the interests of a 
        party under subsection (b)(1)(A) in selecting among the 
        facts otherwise available, the administering authority 
        may--
                  ``(A) in the case of a countervailing duty 
                proceeding--
                          ``(i) use a countervailable subsidy 
                        rate applied for the same or similar 
                        program in a countervailing duty 
                        proceeding involving the same country, 
                        or
                          ``(ii) if there is no same or similar 
                        program, use a countervailable subsidy 
                        rate for a subsidy program from a 
                        proceeding that the administering 
                        authority considers reasonable to use, 
                        and
                  ``(B) in the case of an antidumping duty 
                proceeding, use any dumping margin from any 
                segment of the proceeding under the applicable 
                antidumping order.
          ``(2) Discretion to apply highest rate.--In carrying 
        out paragraph (1), the administering authority may 
        apply any of the countervailable subsidy rates or 
        dumping margins specified under that paragraph, 
        including the highest such rate or margin, based on the 
        evaluation by the administering authority of the 
        situation that resulted in the administering authority 
        using an adverse inference in selecting among the facts 
        otherwise available.
          ``(3) No obligation to make certain estimates or 
        address certain claims.--If the administering authority 
        uses an adverse inference under subsection (b)(1)(A) in 
        selecting among the facts otherwise available, the 
        administering authority is not required, for purposes 
        of subsection (c) or for any other purpose--
                  ``(A) to estimate what the countervailable 
                subsidy rate or dumping margin would have been 
                if the interested party found to have failed to 
                cooperate under subsection (b)(1) had 
                cooperated, or
                  ``(B) to demonstrate that the countervailable 
                subsidy rate or dumping margin used by the 
                administering authority reflects an alleged 
                commercial reality of the interested party.''.

SEC. 503. DEFINITION OF MATERIAL INJURY.

  (a) Effect of Profitability of Domestic Industries.--Section 
771(7) of the Tariff Act of 1930 (19 U.S.C. 1677(7)) is amended 
by adding at the end the following:
                  ``(J) Effect of profitability.--The 
                Commission may not determine that there is no 
                material injury or threat of material injury to 
                an industry in the United States merely because 
                that industry is profitable or because the 
                performance of that industry has recently 
                improved.''.
  (b) Evaluation of Impact on Domestic Industry in 
Determination of Material Injury.--Subclause (I) of section 
771(7)(C)(iii) of the Tariff Act of 1930 (19 U.S.C. 
1677(7)(C)(iii)) is amended to read as follows:
                                  ``(I) actual and potential 
                                decline in output, sales, 
                                market share, gross profits, 
                                operating profits, net profits, 
                                ability to service debt, 
                                productivity, return on 
                                investments, return on assets, 
                                and utilization of capacity,''.
  (c) Captive Production.--Section 771(7)(C)(iv) of the Tariff 
Act of 1930 (19 U.S.C. 1677(7)(C)(iv)) is amended--
          (1) in subclause (I), by striking the comma and 
        inserting ``, and'';
          (2) in subclause (II), by striking ``, and'' and 
        inserting a comma; and
          (3) by striking subclause (III).

SEC. 504. PARTICULAR MARKET SITUATION.

  (a) Definition of Ordinary Course of Trade.--Section 771(15) 
of the Tariff Act of 1930 (19 U.S.C. 1677(15)) is amended by 
adding at the end the following:
                  ``(C) Situations in which the administering 
                authority determines that the particular market 
                situation prevents a proper comparison with the 
                export price or constructed export price.''.
  (b) Definition of Normal Value.--Section 
773(a)(1)(B)(ii)(III) of the Tariff Act of 1930 (19 U.S.C. 
1677b(a)(1)(B)(ii)(III)) is amended by striking ``in such other 
country.''.
  (c) Definition of Constructed Value.--Section 773(e) of the 
Tariff Act of 1930 (19 U.S.C. 1677b(e)) is amended--
          (1) in paragraph (1), by striking ``business'' and 
        inserting ``trade''; and
          (2) by striking the flush text at the end and 
        inserting the following:
``For purposes of paragraph (1), if a particular market 
situation exists such that the cost of materials and 
fabrication or other processing of any kind does not accurately 
reflect the cost of production in the ordinary course of trade, 
the administering authority may use another calculation 
methodology under this subtitle or any other calculation 
methodology. For purposes of paragraph (1), the cost of 
materials shall be determined without regard to any internal 
tax in the exporting country imposed on such materials or their 
disposition that is remitted or refunded upon exportation of 
the subject merchandise produced from such materials.''.

SEC. 505. DISTORTION OF PRICES OR COSTS.

  (a) Investigation of Below-cost Sales.--Section 773(b)(2) of 
the Tariff Act of 1930 (19 U.S.C. 1677b(b)(2)) is amended by 
striking subparagraph (A) and inserting the following:
                  ``(A) Reasonable grounds to believe or 
                suspect.--
                          ``(i) Review.--In a review conducted 
                        under section 751 involving a specific 
                        exporter, there are reasonable grounds 
                        to believe or suspect that sales of the 
                        foreign like product have been made at 
                        prices that are less than the cost of 
                        production of the product if the 
                        administering authority disregarded 
                        some or all of the exporter's sales 
                        pursuant to paragraph (1) in the 
                        investigation or, if a review has been 
                        completed, in the most recently 
                        completed review.
                          ``(ii) Requests for information.--In 
                        an investigation initiated under 
                        section 732 or a review conducted under 
                        section 751, the administering 
                        authority shall request information 
                        necessary to calculate the constructed 
                        value and cost of production under 
                        subsections (e) and (f) to determine 
                        whether there are reasonable grounds to 
                        believe or suspect that sales of the 
                        foreign like product have been made at 
                        prices that represent less than the 
                        cost of production of the product.''.
  (b) Prices and Costs in Nonmarket Economies.--Section 773(c) 
of the Tariff Act of 1930 (19 U.S.C. 1677b(c)) is amended by 
adding at the end the following:
          ``(5) Discretion to disregard certain price or cost 
        values.--In valuing the factors of production under 
        paragraph (1) for the subject merchandise, the 
        administering authority may disregard price or cost 
        values without further investigation if the 
        administering authority has determined that broadly 
        available export subsidies existed or particular 
        instances of subsidization occurred with respect to 
        those price or cost values or if those price or cost 
        values were subject to an antidumping order.''.

SEC. 506. REDUCTION IN BURDEN ON DEPARTMENT OF COMMERCE BY REDUCING THE 
                    NUMBER OF VOLUNTARY RESPONDENTS.

  Section 782(a) of the Tariff Act of 1930 (19 U.S.C. 1677m(a)) 
is amended--
          (1) in paragraph (1), by redesignating subparagraphs 
        (A) and (B) as clauses (i) and (ii), respectively, and 
        by moving such clauses, as so redesignated, 2 ems to 
        the right;
          (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and by moving 
        such subparagraphs, as so redesignated, 2 ems to the 
        right;
          (3) by striking ``Investigations and Reviews.--In'' 
        and inserting the following: ``Investigations and 
        Reviews.--
          ``(1) In general.--In'';
          (4) in paragraph (1), as designated by paragraph (3), 
        by amending subparagraph (B), as redesignated by 
        paragraph (2), to read as follows:
                  ``(B) the number of exporters or producers 
                subject to the investigation or review is not 
                so large that any additional individual 
                examination of such exporters or producers 
                would be unduly burdensome to the administering 
                authority and inhibit the timely completion of 
                the investigation or review.''; and
          (5) by adding at the end the following:
          ``(2) Determination of unduly burdensome.--In 
        determining if an individual examination under 
        paragraph (1)(B) would be unduly burdensome, the 
        administering authority may consider the following:
                  ``(A) The complexity of the issues or 
                information presented in the proceeding, 
                including questionnaires and any responses 
                thereto.
                  ``(B) Any prior experience of the 
                administering authority in the same or similar 
                proceeding.
                  ``(C) The total number of investigations 
                under subtitle A or B and reviews under section 
                751 being conducted by the administering 
                authority as of the date of the determination.
                  ``(D) Such other factors relating to the 
                timely completion of each such investigation 
                and review as the administering authority 
                considers appropriate.''.

SEC. 507. APPLICATION TO CANADA AND MEXICO.

  Pursuant to article 1902 of the North American Free Trade 
Agreement and section 408 of the North American Free Trade 
Agreement Implementation Act (19 U.S.C. 3438), the amendments 
made by this title shall apply with respect to goods from 
Canada and Mexico.

              TITLE VI--ADDITIONAL ENFORCEMENT PROVISIONS

SEC. 601. TRADE ENFORCEMENT PRIORITIES.

  (a) In General.--Section 310 of the Trade Act of 1974 (19 
U.S.C. 2420) is amended to read as follows:

``SEC. 310. TRADE ENFORCEMENT PRIORITIES.

  ``(a) Trade Enforcement Priorities, Consultations, and 
Report.--
          ``(1) Trade enforcement priorities consultations.--
        Not later than May 31 of each calendar year that begins 
        after the date of the enactment of the Trade 
        Facilitation and Trade Enforcement Act of 2015, the 
        United States Trade Representative (in this section 
        referred to as the `Trade Representative') shall 
        consult with the Committee on Finance of the Senate and 
        the Committee on Ways and Means of the House of 
        Representatives with respect to the prioritization of 
        acts, policies, or practices of foreign governments 
        that raise concerns with respect to obligations under 
        the WTO Agreements or any other trade agreement to 
        which the United States is a party, or otherwise create 
        or maintain barriers to United States goods, services, 
        or investment.
          ``(2) Identification of trade enforcement 
        priorities.--In identifying acts, policies, or 
        practices of foreign governments as trade enforcement 
        priorities under this subsection, the United States 
        Trade Representative shall focus on those acts, 
        policies, and practices the elimination of which is 
        likely to have the most significant potential to 
        increase United States economic growth, and take into 
        account all relevant factors, including--
                  ``(A) the economic significance of any 
                potential inconsistency between an obligation 
                assumed by a foreign government pursuant to a 
                trade agreement to which both the foreign 
                government and the United States are parties 
                and the acts, policies, or practices of that 
                government;
                  ``(B) the impact of the acts, policies, or 
                practices of a foreign government on 
                maintaining and creating United States jobs and 
                productive capacity;
                  ``(C) the major barriers and trade distorting 
                practices described in the most recent National 
                Trade Estimate required under section 181(b);
                  ``(D) the major barriers and trade distorting 
                practices described in other relevant reports 
                addressing international trade and investment 
                barriers prepared by a Federal agency or 
                congressional commission during the 12 months 
                preceding the date of the most recent report 
                under paragraph (3);
                  ``(E) a foreign government's compliance with 
                its obligations under any trade agreements to 
                which both the foreign government and the 
                United States are parties;
                  ``(F) the implications of a foreign 
                government's procurement plans and policies; 
                and
                  ``(G) the international competitive position 
                and export potential of United States products 
                and services.
          ``(3) Report on trade enforcement priorities and 
        actions taken to address.--
                  ``(A) In general.--Not later than July 31 of 
                each calendar year that begins after the date 
                of the enactment of the Trade Facilitation and 
                Trade Enforcement Act of 2015, the Trade 
                Representative shall submit to the Committee on 
                Finance of the Senate and the Committee on Ways 
                and Means of the House of Representatives a 
                report on acts, policies, or practices of 
                foreign governments identified as trade 
                enforcement priorities based on the 
                consultations under paragraph (1) and the 
                criteria set forth in paragraph (2).
                  ``(B) Report in subsequent years.--The Trade 
                Representative shall include, when reporting 
                under subparagraph (A) in any calendar year 
                after the calendar year that begins after the 
                date of the enactment of the Trade Facilitation 
                and Trade Enforcement Act of 2015, a 
                description of actions taken to address any 
                acts, policies, or practices of foreign 
                governments identified as trade enforcement 
                priorities under this subsection in the 
                calendar year preceding that report and, as 
                relevant, any year before that calendar year.
  ``(b) Semi-annual Enforcement Consultations.--
          ``(1) In general.--At the same time as the reporting 
        under subsection (a)(3), and not later than January 31 
        of each following year, the Trade Representative shall 
        consult with the Committee on Finance of the Senate and 
        the Committee on Ways and Means of the House of 
        Representatives with respect to the identification, 
        prioritization, investigation, and resolution of acts, 
        policies, or practices of foreign governments of 
        concern with respect to obligations under the WTO 
        Agreements or any other trade agreement to which the 
        United States is a party, or that otherwise create or 
        maintain trade barriers.
          ``(2) Acts, policies, or practices of concern.--The 
        semi-annual enforcement consultations required by 
        paragraph (1) shall address acts, policies, or 
        practices of foreign governments that raise concerns 
        with respect to obligations under the WTO Agreements or 
        any other trade agreement to which the United States is 
        a party, or otherwise create or maintain trade 
        barriers, including--
                  ``(A) engagement with relevant trading 
                partners;
                  ``(B) strategies for addressing such 
                concerns;
                  ``(C) availability and deployment of 
                resources to be used in the investigation or 
                resolution of such concerns;
                  ``(D) the merits of any potential dispute 
                resolution proceeding under the WTO Agreements 
                or any other trade agreement to which the 
                United States is a party relating to such 
                concerns; and
                  ``(E) any other aspects of such concerns.
          ``(3) Active investigations.--The semi-annual 
        enforcement consultations required by paragraph (1) 
        shall address acts, policies, or practices that the 
        Trade Representative is actively investigating with 
        respect to obligations under the WTO Agreements or any 
        other trade agreement to which the United States is a 
        party, including--
                  ``(A) strategies for addressing concerns 
                raised by such acts, policies, or practices;
                  ``(B) any relevant timeline with respect to 
                investigation of such acts, policies, or 
                practices;
                  ``(C) the merits of any potential dispute 
                resolution proceeding under the WTO Agreements 
                or any other trade agreement to which the 
                United States is a party with respect to such 
                acts, policies, or practices;
                  ``(D) barriers to the advancement of the 
                investigation of such acts, policies, or 
                practices; and
                  ``(E) any other matters relating to the 
                investigation of such acts, policies, or 
                practices.
          ``(4) Ongoing enforcement actions.--The semi-annual 
        enforcement consultations required by paragraph (1) 
        shall address all ongoing enforcement actions taken by 
        or against the United States with respect to 
        obligations under the WTO Agreements or any other trade 
        agreement to which the United States is a party, 
        including--
                  ``(A) any relevant timeline with respect to 
                such actions;
                  ``(B) the merits of such actions;
                  ``(C) any prospective implementation actions;
                  ``(D) potential implications for any law or 
                regulation of the United States;
                  ``(E) potential implications for United 
                States stakeholders, domestic competitors, and 
                exporters; and
                  ``(F) other issues relating to such actions.
          ``(5) Enforcement resources.--The semi-annual 
        enforcement consultations required by paragraph (1) 
        shall address the availability and deployment of 
        enforcement resources, resource constraints on 
        monitoring and enforcement activities, and strategies 
        to address those constraints, including the use of 
        available resources of other Federal agencies to 
        enhance monitoring and enforcement capabilities.
  ``(c) Investigation and Resolution.--In the case of any acts, 
policies, or practices of a foreign government identified as a 
trade enforcement priority under subsection (a), the Trade 
Representative shall, not later than the date of the first 
semi-annual enforcement consultations held under subsection (b) 
after the identification of the priority, take appropriate 
action to address that priority, including--
          ``(1) engagement with the foreign government to 
        resolve concerns raised by such acts, policies, or 
        practices;
          ``(2) initiation of an investigation under section 
        302(b)(1) with respect to such acts, policies, or 
        practices;
          ``(3) initiation of negotiations for a bilateral 
        agreement that provides for resolution of concerns 
        raised by such acts, policies, or practices; or
          ``(4) initiation of dispute settlement proceedings 
        under the WTO Agreements or any other trade agreement 
        to which the United States is a party with respect to 
        such acts, policies, or practices.
  ``(d) Enforcement Notifications and Consultation.--
          ``(1) Initiation of enforcement action.--The Trade 
        Representative shall notify and consult with the 
        Committee on Finance of the Senate and the Committee on 
        Ways and Means of the House of Representatives in 
        advance of initiation of any formal trade dispute by or 
        against the United States taken in regard to an 
        obligation under the WTO Agreements or any other trade 
        agreement to which the United States is a party. With 
        respect to a formal trade dispute against the United 
        States, if advance notification and consultation are 
        not possible, the Trade Representative shall notify and 
        consult at the earliest practicable opportunity after 
        initiation of the dispute.
          ``(2) Circulation of reports.--The Trade 
        Representative shall notify and consult with the 
        Committee on Finance of the Senate and the Committee on 
        Ways and Means of the House of Representatives in 
        advance of the announced or anticipated circulation of 
        any report of a dispute settlement panel or the 
        Appellate Body of the World Trade Organization or of a 
        dispute settlement panel under any other trade 
        agreement to which the United States is a party with 
        respect to a formal trade dispute by or against the 
        United States.
  ``(e) Definitions.--In this section:
          ``(1) WTO.--The term `WTO' means the World Trade 
        Organization.
          ``(2) WTO agreement.--The term `WTO Agreement' has 
        the meaning given that term in section 2(9) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3501(9)).
          ``(3) WTO agreements.--The term `WTO Agreements' 
        means the WTO Agreement and agreements annexed to that 
        Agreement.''.
  (b) Clerical Amendment.--The table of contents for the Trade 
Act of 1974 is amended by striking the item relating to section 
310 and inserting the following:''.

``Sec. 310. Trade enforcement priorities.''.

SEC. 602. EXERCISE OF WTO AUTHORIZATION TO SUSPEND CONCESSIONS OR OTHER 
                    OBLIGATIONS UNDER TRADE AGREEMENTS.

  (a) In General.--Section 306 of the Trade Act of 1974 (19 
U.S.C. 2416) is amended--
          (1) by redesignating subsection (c) as subsection 
        (d); and
          (2) by inserting after subsection (b) the following:
  ``(c) Exercise of WTO Authorization to Suspend Concessions or 
Other Obligations.--If--
          ``(1) action has terminated pursuant to section 
        307(c),
          ``(2) the petitioner or any representative of the 
        domestic industry that would benefit from reinstatement 
        of action has submitted to the Trade Representative a 
        written request for reinstatement of action, and
          ``(3) the Trade Representatives has completed the 
        requirements of subsection (d) and section 307(c)(3),
the Trade Representative may at any time determine to take 
action under section 301(c) to exercise an authorization to 
suspend concessions or other obligations under Article 22 of 
the Understanding on Rules and Procedures Governing the 
Settlement of Disputes (referred to in section 101(d)(16) of 
the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(16))).''.
  (b) Conforming Amendments.--Chapter 1 of title III of the 
Trade Act of 1974 (19 U.S.C. 2411 et seq.) is amended--
          (1) in section 301(c)(1) (19 U.S.C. 2411(c)(1)), in 
        the matter preceding subparagraph (A), by inserting 
        ``or section 306(c)'' after ``subsection (a) or (b)'';
          (2) in section 306(b) (19 U.S.C. 2416(b)), in the 
        subsection heading, by striking ``Further Action'' and 
        inserting ``Action on the Basis of Monitoring'';
          (3) in section 306(d) (19 U.S.C. 2416(d)), as 
        redesignated by subsection (a)(1), by inserting ``or 
        (c)'' after ``subsection (b)''; and
          (4) in section 307(c)(3) (19 U.S.C. 2417(c)(3)), by 
        inserting ``or if a request is submitted to the Trade 
        Representative under section 306(c)(2) to reinstate 
        action,'' after ``under section 301,''.

SEC. 603. TRADE MONITORING.

  (a) In General.--Chapter 1 of title II of the Trade Act of 
1974 (19 U.S.C. 2251 et seq.) is amended by adding at the end 
the following:

``SEC. 205. TRADE MONITORING.

  ``(a) Monitoring Tool for Imports.--
          ``(1) In general.--Not later than 180 days after the 
        date of the enactment of the Trade Facilitation and 
        Trade Enforcement Act of 2015, the United States 
        International Trade Commission shall make available on 
        a website of the Commission an import monitoring tool 
        to allow the public access to data on the volume and 
        value of goods imported to the United States for the 
        purpose of assessing whether such data has changed with 
        respect to such goods over a period of time.
          ``(2) Data described.--For purposes of the monitoring 
        tool under paragraph (1), the Commission shall use data 
        compiled by the Department of Commerce and such other 
        government data as the Commission considers 
        appropriate.
          ``(3) Periods of time.--The Commission shall ensure 
        that data accessed through the monitoring tool under 
        paragraph (1) includes data for the most recent quarter 
        for which such data are available and previous quarters 
        as the Commission considers practicable.
  ``(b) Monitoring Reports.--
          ``(1) In general.--Not later than 270 days after the 
        date of the enactment of this section, and not less 
        frequently than quarterly thereafter, the Secretary of 
        Commerce shall publish on a website of the Department 
        of Commerce, and notify the Committee on Finance of the 
        Senate and the Committee on Ways and Means of the House 
        of Representatives of the availability of, a monitoring 
        report on changes in the volume and value of trade with 
        respect to imports and exports of goods categorized 
        based on the 6-digit subheading number of the goods 
        under the Harmonized Tariff Schedule of the United 
        States during the most recent quarter for which such 
        data are available and previous quarters as the 
        Secretary considers practicable.
          ``(2) Requests for comment.--Not later than one year 
        after the date of the enactment of this section, the 
        Secretary of Commerce shall solicit through the Federal 
        Register public comment on the monitoring reports 
        described in paragraph (1).
  ``(c) Sunset.--The requirements under this section terminate 
on the date that is seven years after the date of the enactment 
of this section.''.
  (b) Clerical Amendment.--The table of contents for the Trade 
Act of 1974 (19 U.S.C. 2101 et seq.) is amended by inserting 
after the item relating to section 204 the following:

``Sec. 205. Trade monitoring.''.

                    TITLE VII--CURRENCY MANIPULATION

SEC. 701. ENHANCEMENT OF ENGAGEMENT ON CURRENCY EXCHANGE RATE AND 
                    ECONOMIC POLICIES WITH CERTAIN MAJOR TRADING 
                    PARTNERS OF THE UNITED STATES.

  (a) Major Trading Partner Report.--
          (1) In general.--Not later than 180 days after the 
        date of the enactment of this Act, and not less 
        frequently than once every 180 days thereafter, the 
        Secretary shall submit to the appropriate committees of 
        Congress a report on the macroeconomic and currency 
        exchange rate policies of each country that is a major 
        trading partner of the United States.
          (2) Elements.--
                  (A) In general.--Each report submitted under 
                paragraph (1) shall contain--
                          (i) for each country that is a major 
                        trading partner of the United States--
                                  (I) that country's bilateral 
                                trade balance with the United 
                                States;
                                  (II) that country's current 
                                account balance as a percentage 
                                of its gross domestic product;
                                  (III) the change in that 
                                country's current account 
                                balance as a percentage of its 
                                gross domestic product during 
                                the 3-year period preceding the 
                                submission of the report;
                                  (IV) that country's foreign 
                                exchange reserves as a 
                                percentage of its short-term 
                                debt; and
                                  (V) that country's foreign 
                                exchange reserves as a 
                                percentage of its gross 
                                domestic product; and
                          (ii) an enhanced analysis of 
                        macroeconomic and exchange rate 
                        policies for each country--
                                  (I) that is a major trading 
                                partner of the United States;
                                  (II) the currency of which is 
                                persistently and substantially 
                                undervalued;
                                  (III) that has--
                                          (aa) a significant 
                                        bilateral trade surplus 
                                        with the United States; 
                                        and
                                          (bb) a material 
                                        global current account 
                                        surplus; and
                                  (IV) that has engaged in 
                                persistent one-sided 
                                intervention in the foreign 
                                exchange market.
                  (B) Enhanced analysis.--Each enhanced 
                analysis under subparagraph (A)(ii) shall 
                include, for each country with respect to which 
                an analysis is made under that subparagraph--
                          (i) a description of developments in 
                        the currency markets of that country, 
                        including, to the greatest extent 
                        feasible, developments with respect to 
                        currency interventions;
                          (ii) a description of trends in the 
                        real effective exchange rate of the 
                        currency of that country and in the 
                        degree of undervaluation of that 
                        currency;
                          (iii) an analysis of changes in the 
                        capital controls and trade restrictions 
                        of that country; and
                          (iv) patterns in the reserve 
                        accumulation of that country.
  (b) Engagement on Exchange Rate and Economic Policies.--
          (1) In general.--Except as provided in paragraph (2), 
        the President, through the Secretary, shall commence 
        enhanced bilateral engagement with each country for 
        which an enhanced analysis of macroeconomic and 
        currency exchange rate policies is included in the 
        report submitted under subsection (a), in order to--
                  (A) urge implementation of policies to 
                address the causes of the undervaluation of its 
                currency, its bilateral trade surplus with the 
                United States, and its material global current 
                account surplus, including undervaluation and 
                surpluses relating to exchange rate management;
                  (B) express the concern of the United States 
                with respect to the adverse trade and economic 
                effects of that undervaluation and those 
                surpluses;
                  (C) develop measurable objectives for 
                addressing that undervaluation and those 
                surpluses; and
                  (D) advise that country of the ability of the 
                President to take action under subsection (c).
          (2) Exception.--The Secretary may determine not to 
        enhance bilateral engagement with a country under 
        paragraph (1) for which an enhanced analysis of 
        macroeconomic and exchange rate policies is included in 
        the report submitted under subsection (a) if the 
        Secretary submits to the appropriate committees of 
        Congress a report that describes how the currency and 
        other macroeconomic policies of that country are 
        addressing the undervaluation and surpluses specified 
        in paragraph (1)(A) with respect to that country, 
        including undervaluation and surpluses relating to 
        exchange rate management.
  (c) Remedial Action.--
          (1) In general.--If, on the date that is one year 
        after the commencement of enhanced bilateral engagement 
        by the President with respect to a country under 
        subsection (b)(1), the country has failed to adopt 
        appropriate policies to correct the undervaluation and 
        surpluses described in subsection (b)(1)(A) with 
        respect to that country, the President may take one or 
        more of the following actions:
                  (A) Prohibit the Overseas Private Investment 
                Corporation from approving, on and after such 
                date, any new financing (including any 
                insurance, reinsurance, or guarantee) with 
                respect to a project located in that country.
                  (B) Except as provided in paragraph (2), and 
                pursuant to paragraph (3), prohibit the Federal 
                Government from procuring, or entering into any 
                contract for the procurement of, goods or 
                services from that country on and after such 
                date.
                  (C) Instruct the United States Executive 
                Director of the International Monetary Fund to 
                use the voice and vote of the United States to 
                call for additional rigorous surveillance of 
                the macroeconomic and exchange rate policies of 
                that country and, as appropriate, formal 
                consultations on findings of currency 
                manipulation.
                  (D) Instruct the United States Trade 
                Representative to take into account, in 
                consultation with the Secretary, in assessing 
                whether to enter into a bilateral or regional 
                trade agreement with that country or to 
                initiate or participate in negotiations with 
                respect to a bilateral or regional trade 
                agreement with that country, the extent to 
                which that country has failed to adopt 
                appropriate policies to correct the 
                undervaluation and surpluses described in 
                subsection (b)(1)(A).
          (2) Exception.--The President may not apply a 
        prohibition under paragraph (1)(B) with respect to a 
        country that is a party to the Agreement on Government 
        Procurement or a free trade agreement to which the 
        United States is a party.
          (3) Consultations.--
                  (A) Office of management and budget.--Before 
                applying a prohibition under paragraph (1)(B), 
                the President shall consult with the Director 
                of the Office of Management and Budget to 
                determine whether such prohibition would 
                subject the taxpayers of the United States to 
                unreasonable cost.
                  (B) Congress.--The President shall consult 
                with the appropriate committees of Congress 
                with respect to any action the President takes 
                under paragraph (1)(B), including whether the 
                President has consulted as required under 
                subparagraph (A).
  (d) Definitions.--In this section:
          (1) Agreement on government procurement.--The term 
        ``Agreement on Government Procurement'' means the 
        agreement referred to in section 101(d)(17) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3511(d)(17)).
          (2) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                  (A) the Committee on Banking, Housing, and 
                Urban Affairs and the Committee on Finance of 
                the Senate; and
                  (B) the Committee on Financial Services and 
                the Committee on Ways and Means of the House of 
                Representatives.
          (3) Country.--The term ``country'' means a foreign 
        country, dependent territory, or possession of a 
        foreign country, and may include an association of 2 or 
        more foreign countries, dependent territories, or 
        possessions of countries into a customs union outside 
        the United States.
          (4) Real effective exchange rate.--The term ``real 
        effective exchange rate'' means a weighted average of 
        bilateral exchange rates, expressed in price-adjusted 
        terms.
          (5) Secretary.--The term ``Secretary'' means the 
        Secretary of the Treasury.

SEC. 702. ADVISORY COMMITTEE ON INTERNATIONAL EXCHANGE RATE POLICY.

  (a) Establishment.--
          (1) In general.--There is established an Advisory 
        Committee on International Exchange Rate Policy (in 
        this section referred to as the ``Committee'').
          (2) Duties.--The Committee shall be responsible for 
        advising the Secretary of the Treasury with respect to 
        the impact of international exchange rates and 
        financial policies on the economy of the United States.
  (b) Membership.--
          (1) In general.--The Committee shall be composed of 9 
        members as follows, none of whom may be employees of 
        the Federal Government:
                  (A) Three members shall be appointed by the 
                President pro tempore of the Senate, upon the 
                recommendation of the chairmen and ranking 
                members of the Committee on Banking, Housing, 
                and Urban Affairs and the Committee on Finance 
                of the Senate.
                  (B) Three members shall be appointed by the 
                Speaker of the House of Representatives upon 
                the recommendation of the chairmen and ranking 
                members of the Committee on Financial Services 
                and the Committee on Ways and Means of the 
                House of Representatives.
                  (C) Three members shall be appointed by the 
                President.
          (2) Qualifications.--Members shall be selected under 
        paragraph (1) on the basis of their objectivity and 
        demonstrated expertise in finance, economics, or 
        currency exchange.
          (3) Terms.--
                  (A) In general.--Members shall be appointed 
                for a term of 2 years or until the Committee 
                terminates.
                  (B) Reappointment.--A member may be 
                reappointed to the Committee for additional 
                terms.
          (4) Vacancies.--Any vacancy in the Committee shall 
        not affect its powers, but shall be filled in the same 
        manner as the original appointment.
  (c) Duration of Committee.--
          (1) In general.--The Committee shall terminate on the 
        date that is 2 years after the date of the enactment of 
        this Act unless renewed by the President for a 
        subsequent 2-year period.
          (2) Continued renewal.--The President may continue to 
        renew the Committee for successive 2-year periods by 
        taking appropriate action to renew the Committee prior 
        to the date on which the Committee would otherwise 
        terminate.
  (d) Meetings.--The Committee shall hold not less than 2 
meetings each calendar year.
  (e) Chairperson.--
          (1) In general.--The Committee shall elect from among 
        its members a chairperson for a term of 2 years or 
        until the Committee terminates.
          (2) Reelection; subsequent terms.--A chairperson of 
        the Committee may be reelected chairperson but is 
        ineligible to serve consecutive terms as chairperson.
  (f) Staff.--The Secretary of the Treasury shall make 
available to the Committee such staff, information, personnel, 
administrative services, and assistance as the Committee may 
reasonably require to carry out the activities of the 
Committee.
  (g) Application of the Federal Advisory Committee Act.--
          (1) In general.--Except as provided in paragraph (2), 
        the provisions of the Federal Advisory Committee Act (5 
        U.S.C. App.) shall apply to the Committee.
          (2) Exception.--Meetings of the Committee shall be 
        exempt from the requirements of subsections (a) and (b) 
        of section 10 and section 11 of the Federal Advisory 
        Committee Act (relating to open meetings, public 
        notice, public participation, and public availability 
        of documents), whenever and to the extent it is 
        determined by the President or the Secretary of the 
        Treasury that such meetings will be concerned with 
        matters the disclosure of which--
                  (A) would seriously compromise the 
                development by the Government of the United 
                States of monetary or financial policy; or
                  (B) is likely to--
                          (i) lead to significant financial 
                        speculation in currencies, securities, 
                        or commodities; or
                          (ii) significantly endanger the 
                        stability of any financial institution.
  (h) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary of the Treasury for each 
fiscal year in which the Committee is in effect $1,000,000 to 
carry out this section.

    TITLE VIII--ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION

SEC. 801. SHORT TITLE.

  This title may be cited as the ``U.S. Customs and Border 
Protection Authorization Act''.

SEC. 802. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION.

  (a) In General.--Section 411 of the Homeland Security Act of 
2002 (6 U.S.C. 211) is amended to read as follows:

``SEC. 411. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION; 
                    COMMISSIONER, DEPUTY COMMISSIONER, AND OPERATIONAL 
                    OFFICES.

  ``(a) In General.--There is established in the Department an 
agency to be known as U.S. Customs and Border Protection.
  ``(b) Commissioner of U.S. Customs and Border Protection.--
There shall be at the head of U.S. Customs and Border 
Protection a Commissioner of U.S. Customs and Border Protection 
(in this section referred to as the `Commissioner'), who shall 
be appointed by the President, by and with the advice and 
consent of the Senate.
  ``(c) Duties.--The Commissioner shall--
          ``(1) ensure the interdiction of persons and goods 
        illegally entering or exiting the United States;
          ``(2) facilitate and expedite the flow of legitimate 
        travelers and trade;
          ``(3) detect, respond to, and interdict terrorists, 
        drug smugglers and traffickers, human smugglers and 
        traffickers, and other persons who may undermine the 
        security of the United States, in cases in which such 
        persons are entering, or have recently entered, the 
        United States;
          ``(4) safeguard the borders of the United States to 
        protect against the entry of dangerous goods;
          ``(5) oversee the functions of the Office of Trade 
        established under section 802(h) of the Trade 
        Facilitation and Trade Enforcement Act of 2015;
          ``(6) enforce and administer all customs laws of the 
        United States, including the Tariff Act of 1930;
          ``(7) enforce and administer all immigration laws, as 
        such term is defined in paragraph (17) of section 
        101(a) of the Immigration and Nationality Act (8 U.S.C. 
        1101(a)), as necessary for the inspection, processing, 
        and admission of persons who seek to enter or depart 
        the United States, and as necessary to ensure the 
        detection, interdiction, removal, departure from the 
        United States, short-term detention, and transfer of 
        persons unlawfully entering, or who have recently 
        unlawfully entered, the United States, in coordination 
        with U.S. Immigration and Customs Enforcement and 
        United States Citizenship and Immigration Services;
          ``(8) develop and implement screening and targeting 
        capabilities, including the screening, reviewing, 
        identifying, and prioritizing of passengers and cargo 
        across all international modes of transportation, both 
        inbound and outbound;
          ``(9) in coordination with the Secretary, deploy 
        technology to collect the data necessary for the 
        Secretary to administer the biometric entry and exit 
        data system pursuant to section 7208 of the 
        Intelligence Reform and Terrorism Prevention Act of 
        2004 (8 U.S.C. 1365b);
          ``(10) enforce and administer the laws relating to 
        agricultural import and entry inspection referred to in 
        section 421;
          ``(11) in coordination with the Under Secretary for 
        Management of the Department, ensure U.S. Customs and 
        Border Protection complies with Federal law, the 
        Federal Acquisition Regulation, and the Department's 
        acquisition management directives for major acquisition 
        programs of U.S. Customs and Border Protection;
          ``(12) enforce and administer--
                  ``(A) the Container Security Initiative 
                program under section 205 of the Security and 
                Accountability for Every Port Act of 2006 (6 
                U.S.C. 945; Public Law 109-347); and
                  ``(B) the Customs-Trade Partnership Against 
                Terrorism program under sections 211 through 
                223 of such Act (6 U.S.C. 961-973);
          ``(13) conduct polygraph examinations in accordance 
        with section 3(1) of the Anti-Border Corruption Act of 
        2010 (Public Law 111-376);
          ``(14) establish the standard operating procedures 
        described in subsection (k);
          ``(15) carry out the training required under 
        subsection (l); and
          ``(16) carry out other duties and powers prescribed 
        by law or delegated by the Secretary.
  ``(d) Deputy Commissioner.--There shall be in U.S. Customs 
and Border Protection a Deputy Commissioner who shall assist 
the Commissioner in the management of U.S. Customs and Border 
Protection.
  ``(e) U.S. Border Patrol.--
          ``(1) In general.--There is established in U.S. 
        Customs and Border Protection the U.S. Border Patrol.
          ``(2) Chief.--There shall be at the head of the U.S. 
        Border Patrol a Chief, who shall report to the 
        Commissioner.
          ``(3) Duties.--The U.S. Border Patrol shall--
                  ``(A) serve as the law enforcement office of 
                U.S. Customs and Border Protection with primary 
                responsibility for interdicting persons 
                attempting to illegally enter or exit the 
                United States or goods being illegally imported 
                into or exported from the United States at a 
                place other than a designated port of entry;
                  ``(B) deter and prevent illegal entry of 
                terrorists, terrorist weapons, persons, and 
                contraband; and
                  ``(C) carry out other duties and powers 
                prescribed by the Commissioner.
  ``(f) Office of Air and Marine Operations.--
          ``(1) In general.--There is established in U.S. 
        Customs and Border Protection an Office of Air and 
        Marine Operations.
          ``(2) Assistant commissioner.--There shall be at the 
        head of the Office of Air and Marine Operations an 
        Assistant Commissioner, who shall report to the 
        Commissioner.
          ``(3) Duties.--The Office of Air and Marine 
        Operations shall--
                  ``(A) serve as the law enforcement office 
                within U.S. Customs and Border Protection with 
                primary responsibility to detect, interdict, 
                and prevent acts of terrorism and the unlawful 
                movement of people, illicit drugs, and other 
                contraband across the borders of the United 
                States in the air and maritime environment;
                  ``(B) conduct joint aviation and marine 
                operations with U.S. Immigration and Customs 
                Enforcement;
                  ``(C) conduct aviation and marine operations 
                with international, Federal, State, and local 
                law enforcement agencies, as appropriate;
                  ``(D) administer the Air and Marine 
                Operations Center established under paragraph 
                (4); and
                  ``(E) carry out other duties and powers 
                prescribed by the Commissioner.
          ``(4) Air and marine operations center.--
                  ``(A) In general.--There is established in 
                the Office of Air and Marine Operations an Air 
                and Marine Operations Center.
                  ``(B) Executive director.--There shall be at 
                the head of the Air and Marine Operations 
                Center an Executive Director, who shall report 
                to the Assistant Commissioner of the Office of 
                Air and Marine Operations.
                  ``(C) Duties.--The Air and Marine Operations 
                Center shall--
                          ``(i) manage the air and maritime 
                        domain awareness of the Department;
                          ``(ii) monitor and coordinate the 
                        airspace for Unmanned Aerial Systems 
                        operations of the Office of Air and 
                        Marine Operations in U.S. Customs and 
                        Border Protection;
                          ``(iii) detect, identify, and 
                        coordinate a response to threats to 
                        national security in the air domain;
                          ``(iv) provide aviation and marine 
                        support to other Federal, State, 
                        tribal, and local agencies; and
                          ``(v) carry out other duties and 
                        powers prescribed by the Assistant 
                        Commissioner.
  ``(g) Office of Field Operations.--
          ``(1) In general.--There is established in U.S. 
        Customs and Border Protection an Office of Field 
        Operations.
          ``(2) Assistant commissioner.--There shall be at the 
        head of the Office of Field Operations an Assistant 
        Commissioner, who shall report to the Commissioner.
          ``(3) Duties.--The Office of Field Operations shall 
        coordinate the enforcement activities of U.S. Customs 
        and Border Protection at United States air, land, and 
        sea ports of entry to--
                  ``(A) deter and prevent terrorists and 
                terrorist weapons from entering the United 
                States at such ports of entry;
                  ``(B) conduct inspections at such ports of 
                entry to safeguard the United States from 
                terrorism and illegal entry of persons;
                  ``(C) prevent illicit drugs, agricultural 
                pests, and contraband from entering the United 
                States;
                  ``(D) in coordination with the Commissioner, 
                facilitate and expedite the flow of legitimate 
                travelers and trade;
                  ``(E) administer the National Targeting 
                Center established under paragraph (4); and
                  ``(F) carry out other duties and powers 
                prescribed by the Commissioner.
          ``(4) National targeting center.--
                  ``(A) In general.--There is established in 
                the Office of Field Operations a National 
                Targeting Center.
                  ``(B) Executive director.--There shall be at 
                the head of the National Targeting Center an 
                Executive Director, who shall report to the 
                Assistant Commissioner of the Office of Field 
                Operations.
                  ``(C) Duties.--The National Targeting Center 
                shall--
                          ``(i) serve as the primary forum for 
                        targeting operations within U.S. 
                        Customs and Border Protection to 
                        collect and analyze traveler and cargo 
                        information in advance of arrival in 
                        the United States;
                          ``(ii) identify, review, and target 
                        travelers and cargo for examination;
                          ``(iii) coordinate the examination of 
                        entry and exit of travelers and cargo;
                          ``(iv) develop and conduct commercial 
                        risk assessment targeting with respect 
                        to cargo destined for the United 
                        States;
                          ``(v) issue Trade Alerts pursuant to 
                        section 111 of the Trade Facilitation 
                        and Trade Enforcement Act of 2015; and
                          ``(vi) carry out other duties and 
                        powers prescribed by the Assistant 
                        Commissioner.
          ``(5) Annual report on staffing.--Not later than 30 
        days after the date of the enactment of the Trade 
        Facilitation and Trade Enforcement Act of 2015 and 
        annually thereafter, the Assistant Commissioner shall 
        submit to the appropriate congressional committees a 
        report on the staffing model for the Office of Field 
        Operations, including information on how many 
        supervisors, front-line U.S. Customs and Border 
        Protection officers, and support personnel are assigned 
        to each Field Office and port of entry.
  ``(h) Office of Intelligence.--
          ``(1) In general.--There is established in U.S. 
        Customs and Border Protection an Office of 
        Intelligence.
          ``(2) Assistant commissioner.--There shall be at the 
        head of the Office of Intelligence an Assistant 
        Commissioner, who shall report to the Commissioner.
          ``(3) Duties.--The Office of Intelligence shall--
                  ``(A) develop, provide, coordinate, and 
                implement intelligence capabilities into a 
                cohesive intelligence enterprise to support the 
                execution of the duties and responsibilities of 
                U.S. Customs and Border Protection;
                  ``(B) collect and analyze advance traveler 
                and cargo information;
                  ``(C) establish, in coordination with the 
                Chief Intelligence Officer of the Department, 
                as appropriate, intelligence-sharing 
                relationships with Federal, State, local, and 
                tribal agencies and intelligence agencies;
                  ``(D) conduct risk-based covert testing of 
                U.S. Customs and Border Protection operations, 
                including for nuclear and radiological risks; 
                and
                  ``(E) carry out other duties and powers 
                prescribed by the Commissioner.
  ``(i) Office of International Affairs.--
          ``(1) In general.--There is established in U.S. 
        Customs and Border Protection an Office of 
        International Affairs.
          ``(2) Assistant commissioner.--There shall be at the 
        head of the Office of International Affairs an 
        Assistant Commissioner, who shall report to the 
        Commissioner.
          ``(3) Duties.--The Office of International Affairs, 
        in collaboration with the Office of Policy of the 
        Department, shall--
                  ``(A) coordinate and support U.S. Customs and 
                Border Protection's foreign initiatives, 
                policies, programs, and activities;
                  ``(B) coordinate and support U.S. Customs and 
                Border Protection's personnel stationed abroad;
                  ``(C) maintain partnerships and information 
                sharing agreements and arrangements with 
                foreign governments, international 
                organizations, and United States agencies in 
                support of U.S. Customs and Border Protection 
                duties and responsibilities;
                  ``(D) provide necessary capacity building, 
                training, and assistance to foreign border 
                control agencies to strengthen global supply 
                chain and travel security, as appropriate;
                  ``(E) coordinate mission support services to 
                sustain U.S. Customs and Border Protection's 
                global activities;
                  ``(F) coordinate U.S. Customs and Border 
                Protection's engagement in international 
                negotiations; and
                  ``(G) carry out other duties and powers 
                prescribed by the Commissioner.
  ``(j) Office of Internal Affairs.--
          ``(1) In general.--There is established in U.S. 
        Customs and Border Protection an Office of Internal 
        Affairs.
          ``(2) Assistant commissioner.--There shall be at the 
        head of the Office of Internal Affairs an Assistant 
        Commissioner, who shall report to the Commissioner.
          ``(3) Duties.--The Office of Internal Affairs shall--
                  ``(A) investigate criminal and administrative 
                matters and misconduct by officers, agents, and 
                other employees of U.S. Customs and Border 
                Protection;
                  ``(B) perform investigations of applicants 
                for employment with U.S. Customs and Border 
                Protection and periodic reinvestigations (in 
                accordance with section 3001 of the 
                Intelligence Reform and Terrorism Prevention 
                Act of 2004 (50 U.S.C. 3341; Public Law 108-
                458)) of officers, agents, and other employees 
                of United States Custom and Border Protection, 
                including investigations to determine 
                suitability for employment and eligibility for 
                access to classified information;
                  ``(C) manage integrity of U.S. Customs and 
                Border Protection's counter-intelligence 
                operations, including conduct of counter-
                intelligence investigations;
                  ``(D) conduct research and analysis regarding 
                misconduct of officers, agents, and other 
                employees of U.S. Customs and Border 
                Protection; and
                  ``(E) carry out other duties and powers 
                prescribed by the Commissioner.
  ``(k) Standard Operating Procedures.--
          ``(1) In general.--The Commissioner shall establish--
                  ``(A) standard operating procedures for 
                searching, reviewing, retaining, and sharing 
                information contained in communication, 
                electronic, or digital devices encountered by 
                U.S. Customs and Border Protection personnel at 
                United States ports of entry;
                  ``(B) standard use of force procedures that 
                officers and agents of U.S. Customs and Border 
                Protection may employ in the execution of their 
                duties, including the use of deadly force;
                  ``(C) a uniform, standardized, and 
                publically-available procedure for processing 
                and investigating complaints against officers, 
                agents, and employees of U.S. Customs and 
                Border Protection for violations of 
                professional conduct, including the timely 
                disposition of complaints and a written 
                notification to the complainant of the status 
                or outcome, as appropriate, of the related 
                investigation, in accordance with section 552a 
                of title 5, United States Code (commonly 
                referred to as the `Privacy Act' or the 
                `Privacy Act of 1974');
                  ``(D) an internal, uniform reporting 
                mechanism regarding incidents involving the use 
                of deadly force by an officer or agent of U.S. 
                Customs and Border Protection, including an 
                evaluation of the degree to which the 
                procedures required under subparagraph (B) were 
                followed; and
                  ``(E) standard operating procedures, acting 
                through the Assistant Commissioner for Air and 
                Marine Operations and in coordination with the 
                Office for Civil Rights and Civil Liberties and 
                the Office of Privacy of the Department, to 
                provide command, control, communication, 
                surveillance, and reconnaissance assistance 
                through the use of unmanned aerial systems, 
                including the establishment of--
                          ``(i) a process for other Federal, 
                        State, and local law enforcement 
                        agencies to submit mission requests;
                          ``(ii) a formal procedure to 
                        determine whether to approve or deny 
                        such a mission request;
                          ``(iii) a formal procedure to 
                        determine how such mission requests are 
                        prioritized and coordinated; and
                          ``(iv) a process regarding the 
                        protection and privacy of data and 
                        images collected by U.S. Customs and 
                        Border Protection through the use of 
                        unmanned aerial systems.
          ``(2) Requirements regarding certain notifications.--
        The standard operating procedures established pursuant 
        to subparagraph (A) of paragraph (1) shall require--
                  ``(A) in the case of a search of information 
                conducted on an electronic device by U.S. 
                Customs and Border Protection personnel, the 
                Commissioner to notify the individual subject 
                to such search of the purpose and authority for 
                such search, and how such individual may obtain 
                information on reporting concerns about such 
                search; and
                  ``(B) in the case of information collected by 
                U.S. Customs and Border Protection through a 
                search of an electronic device, if such 
                information is transmitted to another Federal 
                agency for subject matter assistance, 
                translation, or decryption, the Commissioner to 
                notify the individual subject to such search of 
                such transmission.
          ``(3) Exceptions.--
                  ``(A) In general.--The Commissioner may 
                withhold the notifications required under 
                paragraphs (1)(C) and (2) if the Commissioner 
                determines that such notifications would impair 
                national security, law enforcement, or other 
                operational interests.
                  ``(B) Terrorist watch lists.--
                          ``(i) Searches.--If the individual 
                        subject to search of an electronic 
                        device pursuant to subparagraph (A) of 
                        paragraph (1) is included on a 
                        Government-operated or Government-
                        maintained terrorist watch list, the 
                        notifications required under paragraph 
                        (2) shall not apply.
                          ``(ii) Complaints.--If the 
                        complainant using the process 
                        established under subparagraph (C) of 
                        paragraph (1) is included on a 
                        Government-operated or Government-
                        maintained terrorist watch list, the 
                        notification required under such 
                        subparagraph shall not apply.
          ``(4) Update and review.--The Commissioner shall 
        review and update every three years the standard 
        operating procedures required under this subsection.
          ``(5) Audits.--The Inspector General of the 
        Department of Homeland Security shall develop and 
        annually administer an auditing mechanism to review 
        whether searches of electronic devices at or between 
        United States ports of entry are being conducted in 
        conformity with the standard operating procedures 
        required under subparagraph (A) of paragraph (1). Such 
        audits shall be submitted to the appropriate 
        congressional committees and shall include the 
        following:
                  ``(A) A description of the activities of 
                officers and agents of U.S. Customs and Border 
                Protection with respect to such searches.
                  ``(B) The number of such searches.
                  ``(C) The number of instances in which 
                information contained in such devices that were 
                subjected to such searches was retained, 
                copied, shared, or entered in an electronic 
                database.
                  ``(D) The number of such devices detained as 
                the result of such searches.
                  ``(E) The number of instances in which 
                information collected from such device was 
                subjected to such searches was transmitted to 
                another Federal agency, including whether such 
                transmission resulted in a prosecution or 
                conviction.
          ``(6) Requirements regarding other notifications.--
        The standard operating procedures established pursuant 
        to subparagraph (B) of paragraph (1) shall require--
                  ``(A) in the case of an incident of the use 
                of deadly force by U.S. Customs and Border 
                Protection personnel, the Commissioner to 
                notify the appropriate congressional 
                committees; and
                  ``(B) the Commissioner to provide to such 
                committees a copy of the evaluation pursuant to 
                subparagraph (D) of such paragraph not later 
                than 30 days after completion of such 
                evaluation.
          ``(7) Report on unmanned aerial systems.--The 
        Commissioner shall submit to the appropriate 
        congressional committees an annual report that reviews 
        whether the use of unmanned aerial systems are being 
        conducted in conformity with the standard operating 
        procedures required under subparagraph (E) of paragraph 
        (1). Such reports--
                  ``(A) shall be submitted with the President's 
                annual budget;
                  ``(B) may be submitted in classified form if 
                the Commissioner determines that such is 
                appropriate, and
                  ``(C) shall include--
                          ``(i) a detailed description of how, 
                        where, and for how long data and images 
                        collected through the use of unmanned 
                        aerial systems by U.S. Customs and 
                        Border Protection is collected and 
                        stored; and
                          ``(ii) a list of Federal, State, and 
                        local law enforcement agencies that 
                        submitted mission requests in the 
                        previous year and the disposition of 
                        such requests.
  ``(l) Training.--The Commissioner shall require all officers 
and agents of U.S. Customs and Border Protection to participate 
in a specified amount of continuing education (to be determined 
by the Commissioner) to maintain an understanding of Federal 
legal rulings, court decisions, and departmental policies, 
procedures, and guidelines.
  ``(m) Short Term Detention Standards.--
          ``(1) Access to food and water.--The Commissioner 
        shall make every effort to ensure that adequate access 
        to food and water is provided to an individual 
        apprehended and detained at or between a United States 
        port of entry as soon as practicable following the time 
        of such apprehension or during subsequent short term 
        detention.
          ``(2) Access to information on detainee rights at 
        border patrol processing centers.--
                  ``(A) In general.--The Commissioner shall 
                ensure that an individual apprehended by a U.S. 
                Border Patrol agent or an Office of Field 
                Operations officer is provided with information 
                concerning such individual's rights, including 
                the right to contact a representative of such 
                individual's government for purposes of United 
                States treaty obligations.
                  ``(B) Form.--The information referred to in 
                subparagraph (A) may be provided either 
                verbally or in writing, and shall be posted in 
                the detention holding cell in which such 
                individual is being held. The information shall 
                be provided in a language understandable to 
                such individual.
          ``(3) Short term detention defined.--In this 
        subsection, the term `short term detention' means 
        detention in a U.S. Customs and Border Protection 
        processing center for 72 hours or less, before 
        repatriation to a country of nationality or last 
        habitual residence.
          ``(4) Daytime repatriation.--When practicable, 
        repatriations shall be limited to daylight hours and 
        avoid locations that are determined to have high 
        indices of crime and violence.
          ``(5) Report on procurement process and standards.--
        Not later than 180 days after the date of the enactment 
        of this section, the Comptroller General of the United 
        States shall submit to the appropriate congressional 
        committees a report on the procurement process and 
        standards of entities with which U.S. Customs and 
        Border Protection has contracts for the transportation 
        and detention of individuals apprehended by agents or 
        officers of U.S. Customs and Border Protection. Such 
        report should also consider the operational efficiency 
        of contracting the transportation and detention of such 
        individuals.
          ``(6) Report on inspections of short-term custody 
        facilities.--The Commissioner shall--
                  ``(A) annually inspect all facilities 
                utilized for short term detention; and
                  ``(B) make publically available information 
                collected pursuant to such inspections, 
                including information regarding the 
                requirements under paragraphs (1) and (2) and, 
                where appropriate, issue recommendations to 
                improve the conditions of such facilities.
  ``(n) Wait Times Transparency.--
          ``(1) In general.--The Commissioner shall--
                  ``(A) publish live wait times at the 20 
                United States airports that support the highest 
                volume of international travel (as determined 
                by available Federal flight data);
                  ``(B) make information about such wait times 
                available to the public in real time through 
                the U.S. Customs and Border Protection Web 
                site;
                  ``(C) submit to the appropriate congressional 
                committees quarterly reports that include 
                compilations of all such wait times and a 
                ranking of such United States airports by wait 
                times; and
                  ``(D) provide adequate staffing at the U.S. 
                Customs and Border Protection information 
                center to ensure timely access for travelers 
                attempting to submit comments or speak with a 
                representative about their entry experiences.
          ``(2) Calculation.--The wait times referred to in 
        paragraph (1)(A) shall be determined by calculating the 
        time elapsed between an individual's entry into the 
        U.S. Customs and Border Protection inspection area and 
        such individual's clearance by a U.S. Customs and 
        Border Protection officer.
  ``(o) Other Authorities.--
          ``(1) In general.--The Secretary may establish such 
        other offices or Assistant Commissioners (or other 
        similar officers or officials) as the Secretary 
        determines necessary to carry out the missions, duties, 
        functions, and authorities of U.S. Customs and Border 
        Protection.
          ``(2) Notification.--If the Secretary exercises the 
        authority provided pursuant to paragraph (1), the 
        Secretary shall notify the appropriate congressional 
        committees not later than 30 days before exercising 
        such authority.
  ``(p) Other Federal Agencies.--Nothing in this section may be 
construed as affecting in any manner the authority, existing on 
the date of the enactment of the Trade Facilitation and Trade 
Enforcement Act of 2015, of any other Federal agency, including 
the Transportation Security Administration, with respect to the 
duties of U.S. Customs and Border Protection described in 
subsection (c).''.
  (b) Special Rules.--
          (1) Treatment.--Section 411 of the Homeland Security 
        Act of 2002, as amended by subsection (a) of this 
        section, shall be treated as if included in such Act as 
        of the date of the enactment of such Act, and, in 
        addition to the functions, missions, duties, and 
        authorities specified in such amended section 411, U.S. 
        Customs and Border Protection shall continue to perform 
        and carry out the functions, missions, duties, and 
        authorities under section 411 of such Act as in 
        existence on the day before such date of enactment, and 
        section 415 of such Act.
          (2) Rules of construction.--
                  (A) Rules and regulations.--Notwithstanding 
                paragraph (1), nothing in this title or any 
                amendment made by this title may be construed 
                as affecting in any manner any rule or 
                regulation issued or promulgated pursuant to 
                any provision of law, including section 411 of 
                the Homeland Security Act of 2002 as in 
                existence on the day before the date of the 
                enactment of this Act, and any such rule or 
                regulation shall continue to have full force 
                and effect on and after such date.
                  (B) Other actions.--Notwithstanding paragraph 
                (1), nothing in this Act may be construed as 
                affecting in any manner any action, 
                determination, policy, or decision pursuant to 
                section 411 of the Homeland Security Act of 
                2002 as in existence on the day before the date 
                of the enactment of this Act, and any such 
                action, determination, policy, or decision 
                shall continue to have full force and effect on 
                and after such date.
  (c) Continuation in Office.--
          (1) Commissioner.--The individual serving as the 
        Commissioner of Customs on the day before the date of 
        the enactment of this Act may serve as the Commissioner 
        of U.S. Customs and Border Protection on and after such 
        date of enactment until a Commissioner of U.S. Customs 
        and Border Protection is appointed under section 411 of 
        the Homeland Security Act of 2002, as amended by 
        subsection (a) of this section.
          (2) Other positions.--The individuals serving as 
        Assistant Commissioners and other officers and 
        officials under section 411 of the Homeland Security 
        Act of 2002 on the day before the date of the enactment 
        of this Act may serve as the appropriate Assistant 
        Commissioners and other officers and officials under 
        such section 411 as amended by subsection (a) of this 
        section unless the Commissioner of U.S. Customs and 
        Border Protection determines that another individual 
        should hold such position or positions.
  (d) Reference.--
          (1) Title 5.--Section 5314 of title 5, United States 
        Code, is amended by striking ``Commissioner of Customs, 
        Department of Homeland Security'' and inserting 
        ``Commissioner of U.S. Customs and Border Protection, 
        Department of Homeland Security''.
          (2) Other references.--On and after the date of the 
        enactment of this Act, any reference in law or 
        regulations to the ``Commissioner of Customs'' or the 
        ``Commissioner of the Customs Service'' shall be deemed 
        to be a reference to the Commissioner of U.S. Customs 
        and Border Protection.
  (e) Clerical Amendment.--The table of contents in section 
1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et 
seq.) is amended by striking the item relating to section 411 
and inserting the following new item:

``Sec. 411. Establishment of U.S. Customs and Border Protection; 
          Commissioner, Deputy Commissioner, and operational offices.''.
  (f) Repeals.--Sections 416 and 418 of the Homeland Security 
Act of 2002 (6 U.S.C. 216 and 218), and the items relating to 
such sections in the table of contents in section 1(b) of such 
Act, are repealed.
  (g) Clerical and Conforming Amendments.--
          (1) In general.--The Homeland Security Act of 2002 (6 
        U.S.C. 101 et seq.) is amended--
                  (A) in title I--
                          (i) in section 102(f)(10) (6 U.S.C. 
                        112(f)(10)), by striking ``the 
                        Directorate of Border and 
                        Transportation Security'' and inserting 
                        ``the Commissioner of U.S. Customs and 
                        Border Protection''; and
                          (ii) in section 103(a)(1) (6 U.S.C. 
                        113(a)(1))--
                                  (I) in subparagraph (C), by 
                                striking ``An Under Secretary 
                                for Border and Transportation 
                                Security.'' and inserting ``A 
                                Commissioner of U.S. Customs 
                                and Border Protection.''; and
                                  (II) in subparagraph (G), by 
                                striking ``A Director of the 
                                Office of Counternarcotics 
                                Enforcement.'' and inserting 
                                ``A Director of U.S. 
                                Immigration and Customs 
                                Enforcement.''; and
                  (B) in title IV--
                          (i) by striking the title heading and 
                        inserting ``BORDER, MARITIME, AND 
                        TRANSPORTATION SECURITY'';
                          (ii) in subtitle A--
                                  (I) by striking the subtitle 
                                heading and inserting ``Border, 
                                Maritime, and Transportation 
                                Security Responsibilities and 
                                Functions''; and
                                  (II) in section 402 (6 U.S.C. 
                                202)--
                                          (aa) in the section 
                                        heading, by striking 
                                        ``RESPONSIBILITIES'' 
                                        and inserting ``BORDER, 
                                        MARITIME, AND 
                                        TRANSPORTATION 
                                        RESPONSIBILITIES''; and
                                          (bb) by striking ``, 
                                        acting through the 
                                        Under Secretary for 
                                        Border and 
                                        Transportation 
                                        Security,'';
                          (iii) in subtitle B--
                                  (I) by striking the subtitle 
                                heading and inserting ``U.S. 
                                Customs and Border 
                                Protection'';
                                  (II) in section 412(b) (6 
                                U.S.C. 212), by striking ``the 
                                United States Customs Service'' 
                                each place it appears and 
                                inserting ``U.S. Customs and 
                                Border Protection'';
                                  (III) in section 413 (6 
                                U.S.C. 213), by striking 
                                ``available to the United 
                                States Customs Service or'';
                                  (IV) in section 414 (6 U.S.C. 
                                214), by striking ``the United 
                                States Customs Service'' and 
                                inserting ``U.S. Customs and 
                                Border Protection''; and
                                  (V) in section 415 (6 U.S.C. 
                                215)--
                                          (aa) in paragraph 
                                        (7), by inserting 
                                        before the colon the 
                                        following: ``, and of 
                                        U.S. Customs and Border 
                                        Protection on the day 
                                        before the effective 
                                        date of the U.S. 
                                        Customs and Border 
                                        Protection 
                                        Authorization Act''; 
                                        and
                                          (bb) in paragraph 
                                        (8), by inserting 
                                        before the colon the 
                                        following: ``, and of 
                                        U.S. Customs and Border 
                                        Protection on the day 
                                        before the effective 
                                        date of the U.S. 
                                        Customs and Border 
                                        Protection 
                                        Authorization Act'';
                          (iv) in subtitle C--
                                  (I) by striking section 424 
                                (6 U.S.C. 234) and inserting 
                                the following new section:

``SEC. 424. PRESERVATION OF TRANSPORTATION SECURITY ADMINISTRATION AS A 
                    DISTINCT ENTITY.

  ``Notwithstanding any other provision of this Act, the 
Transportation Security Administration shall be maintained as a 
distinct entity within the Department.''; and
                                  (II) in section 430 (6 U.S.C. 
                                238)--
                                          (aa) by amending 
                                        subsection (a) to read 
                                        as follows:
  ``(a) Establishment.--There is established in the Department 
an Office for Domestic Preparedness.'';
                                          (bb) in subsection 
                                        (b), by striking the 
                                        second sentence; and
                                          (cc) in subsection 
                                        (c)(7), by striking 
                                        ``Directorate'' and 
                                        inserting 
                                        ``Department''; and
                          (v) in subtitle D--
                                  (I) in section 441 (6 U.S.C. 
                                251)--
                                          (aa) by striking the 
                                        section heading and 
                                        inserting ``TRANSFER OF 
                                        FUNCTIONS''; and
                                          (bb) by striking 
                                        ``Under Secretary for 
                                        Border and 
                                        Transportation 
                                        Security'' and 
                                        inserting 
                                        ``Secretary'';
                                  (II) in section 443 (6 U.S.C. 
                                253)--
                                          (aa) in the matter 
                                        preceding paragraph 
                                        (1), by striking 
                                        ``Under Secretary for 
                                        Border and 
                                        Transportation 
                                        Security'' and 
                                        inserting 
                                        ``Secretary''; and
                                          (bb) by striking 
                                        ``the Bureau of Border 
                                        Security'' and 
                                        inserting ``U.S. 
                                        Immigration and Customs 
                                        Enforcement'' each 
                                        place it appears; and
                                  (III) by amending section 444 
                                (6 U.S.C. 254) to read as 
                                follows:

``SEC. 444. EMPLOYEE DISCIPLINE.

  ``Notwithstanding any other provision of law, the Secretary 
may impose disciplinary action on any employee of U.S. 
Immigration and Customs Enforcement and U.S. Customs and Border 
Protection who willfully deceives Congress or agency leadership 
on any matter.''.
          (2) Conforming amendments.--Section 401 of the 
        Homeland Security Act of 2002 (6 U.S.C. 201) is 
        repealed.
          (3) Clerical amendments.--The table of contents in 
        section 1(b) of the Homeland Security Act of 2002 is 
        amended--
                  (A) by striking the item relating to title IV 
                and inserting the following:

      ``TITLE IV--BORDER, MARITIME, AND TRANSPORTATION SECURITY'';

                  (B) by striking the item relating to subtitle 
                A of title IV and inserting the following:

      ``Subtitle A--Border, Maritime, and Transportation Security 
                    Responsibilities and Functions'';

                  (C) by striking the item relating to section 
                401;
                  (D) by striking the item relating to subtitle 
                B of title IV and inserting the following:

           ``Subtitle B--U.S. Customs and Border Protection'';

                  (E) by striking the item relating to section 
                441 and inserting the following:

``Sec. 441. Transfer of functions.'';
        and
                  (F) by striking the item relating to section 
                442 and inserting the following:

``Sec. 442. U.S. Immigration and Customs Enforcement.''.
  (h) Office of Trade.--
          (1) Trade offices and functions.--The Act of March 3, 
        1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et 
        seq.), is amended by adding at the end the following:

``SEC. 4. OFFICE OF TRADE.

  ``(a) In General.--There is established in U.S. Customs and 
Border Protection an Office of Trade.
  ``(b) Assistant Commissioner.--
          ``(1) In general.--There shall be at the head of the 
        Office of Trade an Assistant Commissioner, who shall 
        report to the Commissioner of U.S. Customs and Border 
        Protection.
          ``(2) Qualifications.--The Assistant Commissioner 
        shall have a minimum of 10 years of professional 
        experience with the customs and trade laws of the 
        United States.
          ``(3) Senior executive service position.--The 
        position of Assistant Commissioner for Trade shall be a 
        Senior Executive Service position (as defined in 
        section 3132(a) of title 5, United States Code).
  ``(c) Duties.--The Office of Trade shall--
          ``(1) direct the development and implementation, 
        pursuant to the customs and trade laws of the United 
        States, of policies and regulations administered by 
        U.S. Customs and Border Protection;
          ``(2) advise the Commissioner with respect to the 
        impact on trade facilitation and trade enforcement of 
        any policy or regulation otherwise proposed or 
        administered by U.S. Customs and Border Protection;
          ``(3) coordinate and cooperate with the Assistant 
        Commissioner for the Office of Field Operations with 
        respect to the trade facilitation and trade enforcement 
        activities of U.S. Customs and Border Protection 
        carried out at the land borders and ports of entry of 
        the United States;
          ``(4) direct the development and implementation of 
        matters relating to the priority trade issues 
        identified by the Commissioner of U.S. Customs and 
        Border Protection in the joint strategic plan on trade 
        facilitation and trade enforcement required under 
        section 123A of the Customs and Trade Act of 1990;
          ``(5) otherwise advise the Commissioner of U.S. 
        Customs and Border Protection with respect to the 
        development and implementation of the joint strategic 
        plan;
          ``(6) direct the trade enforcement activities of U.S. 
        Customs and Border Protection;
          ``(7) oversee the trade modernization activities of 
        U.S. Customs and Border Protection, including the 
        development and implementation of the Automated 
        Commercial Environment computer system authorized under 
        section 13031(f)(5) of the Consolidated Omnibus Budget 
        and Reconciliation Act of 1985 (19 U.S.C. 58c(f)(5)) 
        and support for the establishment of the International 
        Trade Data System under the oversight of the Department 
        of Treasury pursuant to section 411(d) of the Tariff 
        Act of 1930 (19 U.S.C. 1411(d));
          ``(8) direct the administration of customs revenue 
        functions as otherwise provided by law or delegated by 
        the Commissioner of U.S. Customs and Border Protection; 
        and
          ``(9) prepare an annual report to be submitted to the 
        Committee on Finance of the Senate and the Committee on 
        Ways and Means of the House of Representatives not 
        later than March 1 of each calendar year that 
        includes--
                  ``(A) a summary of the changes to customs 
                policies and regulations adopted by U.S. 
                Customs and Border Protection during the 
                preceding calendar year; and
                  ``(B) a description of the public vetting and 
                interagency consultation that occurred with 
                respect to each such change.
  ``(d) Transfer of Assets, Functions, and Personnel; 
Elimination of Offices.--
          ``(1) Office of international trade.--
                  ``(A) Transfer.--Not later than 30 days after 
                the date of the enactment of the Trade 
                Facilitation and Trade Enforcement Act of 2015, 
                the Commissioner shall transfer the assets, 
                functions, personnel, and liabilities of the 
                Office of International Trade to the Office of 
                Trade established under subsection (b).
                  ``(B) Elimination.--Not later than 30 days 
                after the date of enactment of the Trade 
                Facilitation and Trade Enforcement Act of 2015, 
                the Office of International Trade shall be 
                abolished.
                  ``(C) Limitation on funds.--No funds 
                appropriated to U.S. Customs and Border 
                Protection or the Department of Homeland 
                Security may be used to transfer the assets, 
                functions, personnel, and liabilities of the 
                Office of International Trade to an office 
                other than the Office of Trade established 
                under subsection (a).
                  ``(D) Office of international trade 
                defined.--In this paragraph, the term `Office 
                of International Trade' means the Office of 
                International Trade established by section 2 of 
                the Act of March 3, 1927 (44. Stat. 1381, 
                chapter 348; 19 U.S.C. 2072), as added by 
                section 402 of the Security and Accountability 
                for Every Port Act of 2006 (Public Law 109-347; 
                120 Stat. 1924), and as in effect on the day 
                before the date of the enactment of the Trade 
                Facilitation and Trade Enforcement Act of 2015.
          ``(2) Other transfers.--
                  ``(A) In general.--The Commissioner is 
                authorized to transfer any other assets, 
                functions, or personnel within U.S. Customs and 
                Border Protection to the Office of Trade 
                established under subsection (d).
                  ``(B) Congressional notification.--Not less 
                than 90 days prior to the transfer of assets, 
                functions, or personnel under subparagraph 
                (A)(i), the Commissioner shall notify the 
                Committee on Finance of the Senate, the 
                Committee on Homeland Security and Government 
                Affairs of the Senate, the Committee on Ways 
                and Means of the House of Representatives, and 
                the Committee on Homeland Security of the House 
                of Representatives of the specific assets, 
                functions, or personnel to be transferred, and 
                the reason for the transfer.
  ``(e) Definitions.--In this section, the terms `customs and 
trade laws of the United States', `trade enforcement', and 
`trade facilitation' have the meanings given such terms in 
section 2 of the Trade Facilitation and Trade Enforcement Act 
of 2015.''.
          (2) Continuation in office.--The individual serving 
        as the Assistant Commissioner of the Office of 
        International Trade on the day before the date of the 
        enactment of this Act may serve as the Assistant 
        Commissioner for Trade on or after such date of 
        enactment, at the discretion of the Commissioner.
          (3) Conforming amendments.--Section 2 of the Act of 
        March 3, 1927 (44. Stat. 1381, chapter 348; 19 U.S.C. 
        2072), as added by section 402 of the Security and 
        Accountability for Every Port Act of 2006 (Public Law 
        109-347; 120 Stat. 1924), is amended--
                  (A) by striking subsection (d); and
                  (B) by redesignating subsections (e) and (f) 
                as subsections (d) and (e), respectively.
  (i) Reports and Assessments.--
          (1) Report on business transformation initiative.--
        Not later than 90 days after the date of the enactment 
        of this Act, the Commissioner of U.S. Customs and 
        Border Protection shall submit to the Committee on 
        Homeland Security and the Committee on Ways and Means 
        of the House of Representatives and the Committee on 
        Homeland Security and Governmental Affairs and the 
        Committee on Finance of the Senate a report on U.S. 
        Customs and Border Protection's Business Transformation 
        Initiative, including locations where the Initiative is 
        deployed, the types of equipment utilized, a 
        description of protocols and procedures, information on 
        wait times at such locations since deployment, and 
        information regarding the schedule for deployment at 
        new locations.
          (2) Port of entry infrastructure needs assessments.--
        Not later 180 days after the date of the enactment of 
        this Act, the Commissioner of U.S. Customs and Border 
        Protection shall assess the physical infrastructure and 
        technology needs at the 20 busiest land ports of entry 
        (as measured by U.S. Customs and Border Protection) 
        with a particular attention to identify ways to--
                  (A) improve travel and trade facilitation;
                  (B) reduce wait times;
                  (C) improve physical infrastructure and 
                conditions for individuals accessing pedestrian 
                ports of entry;
                  (D) enter into long-term leases with 
                nongovernmental and private sector entities;
                  (E) enter into lease-purchase agreements with 
                nongovernmental and private sector entities; 
                and
                  (F) achieve cost savings through leases 
                described in subparagraphs (D) and (E).
          (3) Personal searches.--Not later than 90 days after 
        the date of the enactment of this Act, the Commissioner 
        of U.S. Customs and Border Protection shall submit to 
        the Committee on Homeland Security of the House of 
        Representatives and the Committee on Homeland Security 
        and Governmental Affairs of the Senate a report on 
        supervisor-approved personal searches conducted in the 
        previous year by U.S. Customs and Border Protection 
        personnel. Such report shall include the number of 
        personal searches conducted in each sector and field 
        office, the number of invasive personal searches 
        conducted in each sector and field office, whether 
        personal searches were conducted by Office of Field 
        Operations or U.S. Border Patrol personnel, and how 
        many personal searches resulted in the discovery of 
        contraband.
  (j) Trusted Traveler Programs.--The Secretary of Homeland 
Security may not enter into or renew an agreement with the 
government of a foreign country for a trusted traveler program 
administered by U.S. Customs and Border Protection unless the 
Secretary certifies in writing that such government--
          (1) routinely submits to INTERPOL for inclusion in 
        INTERPOL's Stolen and Lost Travel Documents database 
        information about lost and stolen passports and travel 
        documents of the citizens and nationals of such 
        country; or
          (2) makes available to the United States Government 
        the information described in paragraph (1) through 
        another means of reporting.
  (k) Sense of Congress Regarding the Foreign Language Award 
Program.--
          (1) Findings.--Congress finds the following:
                  (A) Congress established the Foreign Language 
                Award Program (FLAP) to incentivize employees 
                at United States ports of entry to utilize 
                their foreign language skills on the job by 
                providing a financial incentive for the use of 
                the foreign language for at least ten percent 
                of their duties after passage of competency 
                tests. FLAP incentivizes the use of more than 
                two dozen languages and has been instrumental 
                in identifying and utilizing U.S. Customs and 
                Border Protection officers and agents who are 
                proficient in a foreign language.
                  (B) In 1993, Congress provided for dedicated 
                funding for this program by stipulating that 
                certain fees collected by U.S. Customs and 
                Border Protection be used to fund FLAP.
                  (C) Through FLAP, foreign travelers are aided 
                by having an officer at a port of entry who 
                speaks their language, and U.S. Customs and 
                Border Protection benefits by being able to 
                focus its border security efforts in a more 
                effective manner.
          (2) Sense of congress.--It is the sense of Congress 
        that FLAP incentivizes U.S. Customs and Border 
        Protection officers to attain and maintain competency 
        in a foreign language, thereby improving the efficiency 
        of operations for the functioning of U.S. Customs and 
        Border Protection's security mission, making the United 
        States a more welcoming place when foreign travelers 
        find officers can communicate in their language, and 
        helping to expedite traveler processing to reduce wait 
        times.

                   TITLE IX--MISCELLANEOUS PROVISIONS

SEC. 901. DE MINIMIS VALUE.

  (a) De Minimis Value.--Section 321(a)(2)(C) of the Tariff Act 
of 1930 (19 U.S.C. 1321(a)(2)(C)) is amended by striking 
``$200'' and inserting ``$800''.
  (b) Effective Date.--The amendment made by subsection (a) 
shall apply with respect to articles entered, or withdrawn from 
warehouse for consumption, on or after the 15th day after the 
date of the enactment of this Act.

SEC. 902. CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNCTIONS.

  Section 401(c) of the Safety and Accountability for Every 
Port Act (6 U.S.C. 115(c)) is amended--
          (1) in paragraph (1), by striking ``on Department 
        policies and actions that have'' and inserting ``not 
        later than 30 days after proposing, and not later than 
        30 days before finalizing, any Department policies, 
        initiatives, or actions that will have''; and
          (2) in paragraph (2)(A), by striking ``not later than 
        30 days prior to the finalization of'' and inserting 
        ``not later than 60 days before proposing, and not 
        later than 60 days before finalizing,''.

SEC. 903. PENALTIES FOR CUSTOMS BROKERS.

  (a) In General.--Section 641(d)(1) of the Tariff Act of 1930 
(19 U.S.C. 1641(d)(1)) is amended--
          (1) in subparagraph (E), by striking ``; or'' and 
        inserting a semicolon;
          (2) in subparagraph (F), by striking the period and 
        inserting ``; or''; and
          (3) by adding at the end the following:
                  ``(G) has been convicted of committing or 
                conspiring to commit an act of terrorism 
                described in section 2332b of title 18, United 
                States Code.''.
  (b) Technical Amendments.--Section 641 of the Tariff Act of 
1930 (19 U.S.C. 1641) is amended--
          (1) by striking ``the Customs Service'' each place it 
        appears and inserting ``U.S. Customs and Border 
        Protection'';
          (2) in subsection (d)(2)(B), by striking ``The 
        Customs Service'' and inserting ``U.S. Customs and 
        Border Protection''; and
          (3) in subsection (g)(2)(B), by striking 
        ``Secretary's notice'' and inserting ``notice under 
        subparagraph (A)''.

SEC. 904. AMENDMENTS TO CHAPTER 98 OF THE HARMONIZED TARIFF SCHEDULE OF 
                    THE UNITED STATES.

  (a) Articles Exported and Returned, Advanced or Improved 
Abroad.--
          (1) In general.--U.S. Note 3 to subchapter II of 
        chapter 98 of the Harmonized Tariff Schedule of the 
        United States is amended by adding at the end the 
        following:
  ``(f)(1) For purposes of subheadings 9802.00.40 and 
9802.00.50, fungible articles exported from the United States 
for the purposes described in such subheadings--
          ``(A) may be commingled; and
          ``(B) the origin, value, and classification of such 
        articles may be accounted for using an inventory 
        management method.
  ``(2) If a person chooses to use an inventory management 
method under this paragraph with respect to fungible articles, 
the person shall use the same inventory management method for 
any other articles with respect to which the person claims 
fungibility under this paragraph.
  ``(3) For the purposes of this paragraph--
          ``(A) the term `fungible articles' means merchandise 
        or articles that, for commercial purposes, are 
        identical or interchangeable in all situations; and
          ``(B) the term `inventory management method' means 
        any method for managing inventory that is based on 
        generally accepted accounting principles.''.
          (2) Effective date.--The amendment made by this 
        subsection applies to articles classifiable under 
        subheading 9802.00.40 or 9802.00.50 of the Harmonized 
        Tariff Schedule of the United States that are entered, 
        or withdrawn from warehouse for consumption, on or 
        after the date that is 60 days after the date of the 
        enactment of this Act.
  (b) Modification of Provisions Relating to Returned 
Property.--
          (1) In general.--The article description for heading 
        9801.00.10 of the Harmonized Tariff Schedule of the 
        United States is amended by inserting after 
        ``exported'' the following: ``, or any other products 
        when returned within 3 years after having been 
        exported''.
          (2) Effective date.--The amendment made by paragraph 
        (1) applies to articles entered, or withdrawn from 
        warehouse for consumption, on or after the date that is 
        60 days after the date of the enactment of this Act.
  (c) Duty-free Treatment for Certain United States Government 
Property Returned to the United States.--
          (1) In general.--Subchapter I of chapter 98 of the 
        Harmonized Tariff Schedule of the United States is 
        amended by inserting in numerical sequence the 
        following new heading:

``            9801.00.11    United States     Free         ............  ............  ............      ''.
                             Government
                             property,
                             returned to the
                             United States
                             without having
                             been advanced
                             in value or
                             improved in
                             condition by
                             any means while
                             abroad, entered
                             by the United
                             States
                             Government or a
                             contractor to
                             the United
                             States
                             Government, and
                             certified by
                             the importer as
                             United States
                             Government
                             property.......

          (2) Effective date.--The amendment made by paragraph 
        (1) applies to goods entered, or withdrawn from 
        warehouse for consumption, on or after the date that is 
        60 days after the date of the enactment of this Act.

SEC. 905. EXEMPTION FROM DUTY OF RESIDUE OF BULK CARGO CONTAINED IN 
                    INSTRUMENTS OF INTERNATIONAL TRAFFIC PREVIOUSLY 
                    EXPORTED FROM THE UNITED STATES.

  (a) In General.--General Note 3(e) of the Harmonized Tariff 
Schedule of the United States is amended--
          (1) in subparagraph (v), by striking ``and'' at the 
        end;
          (2) in subparagraph (vi), by adding ``and'' at the 
        end;
          (3) by inserting after subparagraph (vi) (as so 
        amended) the following new subparagraph:
                  ``(vii) residue of bulk cargo contained in 
                instruments of international traffic previously 
                exported from the United States,''; and
          (4) by adding at the end of the flush text following 
        subparagraph (vii) (as so added) the following: ``For 
        purposes of subparagraph (vii) of this paragraph: The 
        term `residue' means material of bulk cargo that 
        remains in an instrument of international traffic after 
        the bulk cargo is removed, with a quantity, by weight 
        or volume, not exceeding 7 percent of the bulk cargo, 
        and with no or de minimis value. The term `bulk cargo' 
        means cargo that is unpackaged and is in either solid, 
        liquid, or gaseous form. The term `instruments of 
        international traffic' means containers or holders, 
        capable of and suitable for repeated use, such as lift 
        vans, cargo vans, shipping tanks, skids, pallets, caul 
        boards, and cores for textile fabrics, arriving 
        (whether loaded or empty) in use or to be used in the 
        shipment of merchandise in international traffic, and 
        any additional articles or classes of articles that the 
        Commissioner of U.S. Customs and Border Protection 
        designates as instruments of international traffic.''.
  (b) Effective Date.--The amendments made by subsection (a) 
take effect on the date of the enactment of this Act and apply 
with respect to residue of bulk cargo contained in instruments 
of international traffic that are imported into the customs 
territory of the United States on or after such date of 
enactment and that previously have been exported from the 
United States.

SEC. 906. DRAWBACK AND REFUNDS.

  (a) Articles Made From Imported Merchandise.--Section 313(a) 
of the Tariff Act of 1930 (19 U.S.C. 1313(a)) is amended by 
striking ``the full amount of the duties paid upon the 
merchandise so used shall be refunded as drawback, less 1 per 
centum of such duties, except that such'' and inserting ``an 
amount calculated pursuant to regulations prescribed by the 
Secretary of the Treasury under subsection (l) shall be 
refunded as drawback, except that''.
  (b) Substitution for Drawback Purposes.--Section 313(b) of 
the Tariff Act of 1930 (19 U.S.C. 1313(b)) is amended--
          (1) by striking ``If imported'' and inserting the 
        following:
          ``(1) In general.--If imported'';
          (2) by striking ``and any other merchandise (whether 
        imported or domestic) of the same kind and quality 
        are'' and inserting ``or merchandise classifiable under 
        the same 8-digit HTS subheading number as such imported 
        merchandise is'';
          (3) by striking ``three years'' and inserting ``5 
        years'';
          (4) by striking ``the receipt of such imported 
        merchandise by the manufacturer or producer of such 
        articles'' and inserting ``the date of importation of 
        such imported merchandise'';
          (5) by striking ``an amount of drawback equal to'' 
        and all that follows through the end period and 
        inserting ``an amount calculated pursuant to 
        regulations prescribed by the Secretary of the Treasury 
        under subsection (l), but only if those articles have 
        not been used prior to such exportation or 
        destruction.''; and
          (6) by adding at the end the following:
          ``(2) Requirements relating to transfer of 
        merchandise.--
                  ``(A) Manufacturers and producers.--Drawback 
                shall be allowed under paragraph (1) with 
                respect to an article manufactured or produced 
                using imported merchandise or other merchandise 
                classifiable under the same 8-digit HTS 
                subheading number as such imported merchandise 
                only if the manufacturer or producer of the 
                article received such imported merchandise or 
                such other merchandise, directly or indirectly, 
                from the importer.
                  ``(B) Exporters and destroyers.--Drawback 
                shall be allowed under paragraph (1) with 
                respect to a manufactured or produced article 
                that is exported or destroyed only if the 
                exporter or destroyer received that article, 
                directly or indirectly, from the manufacturer 
                or producer.
                  ``(C) Evidence of transfer.--Transfers of 
                merchandise under subparagraph (A) and 
                transfers of articles under subparagraph (B) 
                may be evidenced by business records kept in 
                the normal course of business and no additional 
                certificates of transfer or manufacture shall 
                be required.
          ``(3) Submission of bill of materials or formula.--
                  ``(A) In general.--Drawback shall be allowed 
                under paragraph (1) with respect to an article 
                manufactured or produced using imported 
                merchandise or other merchandise classifiable 
                under the same 8-digit HTS subheading number as 
                such imported merchandise only if the person 
                making the drawback claim submits with the 
                claim a bill of materials or formula 
                identifying the merchandise and article by the 
                8-digit HTS subheading number and the quantity 
                of the merchandise.
                  ``(B) Bill of materials and formula 
                defined.--In this paragraph, the terms `bill of 
                materials' and `formula' mean records kept in 
                the normal course of business that identify 
                each component incorporated into a manufactured 
                or produced article or that identify the 
                quantity of each element, material, chemical, 
                mixture, or other substance incorporated into a 
                manufactured article.
          ``(4) Special rule for sought chemical elements.--
                  ``(A) In general.--For purposes of paragraph 
                (1), a sought chemical element may be--
                          ``(i) considered imported 
                        merchandise, or merchandise 
                        classifiable under the same 8-digit HTS 
                        subheading number as such imported 
                        merchandise, used in the manufacture or 
                        production of an article as described 
                        in paragraph (1); and
                          ``(ii) substituted for source 
                        material containing that sought 
                        chemical element, without regard to 
                        whether the sought chemical element and 
                        the source material are classifiable 
                        under the same 8-digit HTS subheading 
                        number, and apportioned quantitatively, 
                        as appropriate.
                  ``(B) Sought chemical element defined.--In 
                this paragraph, the term `sought chemical 
                element' means an element listed in the 
                Periodic Table of Elements that is imported 
                into the United States or a chemical compound 
                consisting of those elements, either separately 
                in elemental form or contained in source 
                material.''.
  (c) Merchandise Not Conforming to Sample or Specifications.--
Section 313(c) of the Tariff Act of 1930 (19 U.S.C. 1313(c)) is 
amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (C)(ii), by striking 
                ``under a certificate of delivery'' each place 
                it appears;
                  (B) in subparagraph (D)--
                          (i) by striking ``3'' and inserting 
                        ``5''; and
                          (ii) by striking ``the Customs 
                        Service'' and inserting ``U.S. Customs 
                        and Border Protection''; and
                  (C) in the flush text at the end, by striking 
                ``the full amount of the duties paid upon such 
                merchandise, less 1 percent,'' and inserting 
                ``an amount calculated pursuant to regulations 
                prescribed by the Secretary of the Treasury 
                under subsection (l)'';
          (2) in paragraph (2), by striking ``the Customs 
        Service'' and inserting ``U.S. Customs and Border 
        Protection''; and
          (3) by amending paragraph (3) to read as follows:
          ``(3) Evidence of transfers.--Transfers of 
        merchandise under paragraph (1) may be evidenced by 
        business records kept in the normal course of business 
        and no additional certificates of transfer shall be 
        required.''.
  (d) Proof of Exportation.--Section 313(i) of the Tariff Act 
of 1930 (19 U.S.C. 1313(i)) is amended to read as follows:
  ``(i) Proof of Exportation.--A person claiming drawback under 
this section based on the exportation of an article shall 
provide proof of the exportation of the article. Such proof of 
exportation--
          ``(1) shall establish fully the date and fact of 
        exportation and the identity of the exporter; and
          ``(2) may be established through the use of records 
        kept in the normal course of business or through an 
        electronic export system of the United States 
        Government, as determined by the Commissioner of U.S. 
        Customs and Border Protection.''.
  (e) Unused Merchandise Drawback.--Section 313(j) of the 
Tariff Act of 1930 (19 U.S.C. 1313(j)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A), in the matter 
                preceding clause (i)--
                          (i) by striking ``3-year'' and 
                        inserting ``5-year''; and
                          (ii) by inserting ``and before the 
                        drawback claim is filed'' after ``the 
                        date of importation''; and
                  (B) in the flush text at the end, by striking 
                ``99 percent of the amount of each duty, tax, 
                or fee so paid'' and inserting ``an amount 
                calculated pursuant to regulations prescribed 
                by the Secretary of the Treasury under 
                subsection (l)'';
          (2) in paragraph (2)--
                  (A) in the matter preceding subparagraph (A), 
                by striking ``paragraph (4)'' and inserting 
                ``paragraphs (4), (5), and (6)'';
                  (B) in subparagraph (A), by striking 
                ``commercially interchangeable with'' and 
                inserting ``classifiable under the same 8-digit 
                HTS subheading number as'';
                  (C) in subparagraph (B)--
                          (i) by striking ``3-year'' and 
                        inserting ``5-year''; and
                          (ii) by inserting ``and before the 
                        drawback claim is filed'' after ``the 
                        imported merchandise''; and
                  (D) in subparagraph (C)(ii), by striking 
                subclause (II) and inserting the following:
                                  ``(II) received the imported 
                                merchandise, other merchandise 
                                classifiable under the same 8-
                                digit HTS subheading number as 
                                such imported merchandise, or 
                                any combination of such 
                                imported merchandise and such 
                                other merchandise, directly or 
                                indirectly from the person who 
                                imported and paid any duties, 
                                taxes, and fees imposed under 
                                Federal law upon importation or 
                                entry and due on the imported 
                                merchandise (and any such 
                                transferred merchandise, 
                                regardless of its origin, will 
                                be treated as the imported 
                                merchandise and any retained 
                                merchandise will be treated as 
                                domestic merchandise);'';
                  (E) in the flush text at the end--
                          (i) by striking ``the amount of each 
                        such duty, tax, and fee'' and all that 
                        follows through ``99 percent of that 
                        duty, tax, or fee'' and inserting ``an 
                        amount calculated pursuant to 
                        regulations prescribed by the Secretary 
                        of the Treasury under subsection (l) 
                        shall be refunded as drawback''; and
                          (ii) by striking the last sentence 
                        and inserting the following: 
                        ``Notwithstanding subparagraph (A), 
                        drawback shall be allowed under this 
                        paragraph with respect to wine if the 
                        imported wine and the exported wine are 
                        of the same color and the price 
                        variation between the imported wine and 
                        the exported wine does not exceed 50 
                        percent. Transfers of merchandise may 
                        be evidenced by business records kept 
                        in the normal course of business and no 
                        additional certificates of transfer 
                        shall be required.''; and
          (3) in paragraph (3)(B), by striking ``the 
        commercially interchangeable merchandise'' and 
        inserting ``merchandise classifiable under the same 8-
        digit HTS subheading number as such imported 
        merchandise''; and
          (4) by adding at the end the following:
          ``(5)(A) For purposes of paragraph (2) and except as 
        provided in subparagraph (B), merchandise may not be 
        substituted for imported merchandise for drawback 
        purposes based on the 8-digit HTS subheading number if 
        the article description for the 8-digit HTS subheading 
        number under which the imported merchandise is 
        classified begins with the term `other'.
          ``(B) In cases described in subparagraph (A), 
        merchandise may be substituted for imported merchandise 
        for drawback purposes if--
                  ``(i) the other merchandise and such imported 
                merchandise are classifiable under the same 10-
                digit HTS statistical reporting number; and
                  ``(ii) the article description for that 10-
                digit HTS statistical reporting number does not 
                begin with the term `other'.
          ``(6)(A) For purposes of paragraph (2), a drawback 
        claimant may use the first 8 digits of the 10-digit 
        Schedule B number for merchandise or an article to 
        determine if the merchandise or article is classifiable 
        under the same 8-digit HTS subheading number as the 
        imported merchandise, without regard to whether the 
        Schedule B number corresponds to more than one 8-digit 
        HTS subheading number.
          ``(B) In this paragraph, the term `Schedule B' means 
        the Department of Commerce Schedule B, Statistical 
        Classification of Domestic and Foreign Commodities 
        Exported from the United States.''.
  (f) Liability for Drawback Claims.--Section 313(k) of the 
Tariff Act of 1930 (19 U.S.C. 1313(k)) is amended to read as 
follows:
  ``(k) Liability for Drawback Claims.--
          ``(1) In general.--Any person making a claim for 
        drawback under this section shall be liable for the 
        full amount of the drawback claimed.
          ``(2) Liability of importers.--An importer shall be 
        liable for any drawback claim made by another person 
        with respect to merchandise imported by the importer in 
        an amount equal to the lesser of--
                  ``(A) the amount of duties, taxes, and fees 
                that the person claimed with respect to the 
                imported merchandise; or
                  ``(B) the amount of duties, taxes, and fees 
                that the importer authorized the other person 
                to claim with respect to the imported 
                merchandise.
          ``(3) Joint and several liability.--Persons described 
        in paragraphs (1) and (2) shall be jointly and 
        severally liable for the amount described in paragraph 
        (2).''.
  (g) Regulations.--Section 313(l) of the Tariff Act of 1930 
(19 U.S.C. 1313(l)) is amended to read as follows:
  ``(l) Regulations.--
          ``(1) In general.--Allowance of the privileges 
        provided for in this section shall be subject to 
        compliance with such rules and regulations as the 
        Secretary of the Treasury shall prescribe.
          ``(2) Calculation of drawback.--
                  ``(A) In general.--Not later than the date 
                that is 2 years after the date of the enactment 
                of the Trade Facilitation and Trade Enforcement 
                Act of 2015 (or, if later, the effective date 
                provided for in section 906(q)(2)(B) of that 
                Act), the Secretary shall prescribe regulations 
                for determining the calculation of amounts 
                refunded as drawback under this section.
                  ``(B) Claims with respect to unused 
                merchandise.--The regulations required by 
                subparagraph (A) for determining the 
                calculation of amounts refunded as drawback 
                under this section shall provide for a refund 
                of equal to 99 percent of the duties, taxes, 
                and fees paid with respect to the imported 
                merchandise, except that where there is 
                substitution of the merchandise or article, 
                then--
                          ``(i) in the case of an article that 
                        is exported, the amount of the refund 
                        shall be equal to 99 percent of the 
                        lesser of--
                                  ``(I) the amount of duties, 
                                taxes, and fees paid with 
                                respect to the imported 
                                merchandise; or
                                  ``(II) the amount of duties, 
                                taxes, and fees that would 
                                apply to the exported article 
                                if the exported article were 
                                imported; and
                          ``(ii) in the case of an article that 
                        is destroyed, the amount of the refund 
                        shall be an amount that is--
                                  ``(I) equal to 99 percent of 
                                the lesser of--
                                          ``(aa) the amount of 
                                        duties, taxes, and fees 
                                        paid with respect to 
                                        the imported 
                                        merchandise; and
                                          ``(bb) the amount of 
                                        duties, taxes, and fees 
                                        that would apply to the 
                                        destroyed article if 
                                        the destroyed article 
                                        were imported; and
                                  ``(II) reduced by the value 
                                of materials recovered during 
                                destruction as provided in 
                                subsection (x).
                  ``(C) Claims with respect to articles into 
                which substitute merchandise is incorporated.--
                The regulations required by subparagraph (A) 
                for determining the calculation of amounts 
                refunded as drawback under this section shall 
                provide for a refund of 99 percent of the 
                duties, taxes, and fees paid with respect to 
                the imported merchandise incorporated into an 
                article that is exported or destroyed, except 
                that where there is substitution of the 
                imported merchandise, then--
                          ``(i) in the case of an article that 
                        is exported, the amount of the refund 
                        shall be equal to 99 percent of the 
                        lesser of--
                                  ``(I) the amount of duties, 
                                taxes, and fees paid with 
                                respect to the imported 
                                merchandise; or
                                  ``(II) the amount of duties, 
                                taxes, and fees that would 
                                apply to the substituted 
                                merchandise if the substituted 
                                merchandise were imported; and
                          ``(ii) in the case of an article that 
                        is destroyed, the amount of the refund 
                        shall be an amount that is--
                                  ``(I) equal to 99 percent of 
                                the lesser of--
                                          ``(aa) the amount of 
                                        duties, taxes, and fees 
                                        paid with respect to 
                                        the imported 
                                        merchandise; and
                                          ``(bb) the amount of 
                                        duties, taxes, and fees 
                                        that would apply to the 
                                        substituted merchandise 
                                        if the substituted 
                                        merchandise were 
                                        imported; and
                                  ``(II) reduced by the value 
                                of materials recovered during 
                                destruction as provided in 
                                subsection (x).
          ``(3) Status reports on regulations.--Not later than 
        the date that is one year after the date of the 
        enactment of the Trade Facilitation and Trade 
        Enforcement Act of 2015, and annually thereafter until 
        the regulations required by paragraph (2) are final, 
        the Secretary shall submit to Congress a report on the 
        status of those regulations.''.
  (h) Substitution of Finished Petroleum Derivatives.--Section 
313(p) of the Tariff Act of 1930 (19 U.S.C. 1313(p)) is 
amended--
          (1) by striking ``Harmonized Tariff Schedule of the 
        United States'' each place it appears and inserting 
        ``HTS''; and
          (2) in paragraph (3)(A)--
                  (A) in clause (ii)(III), by striking ``, as 
                so certified in a certificate of delivery or 
                certificate of manufacture and delivery''; and
                  (B) in the flush text at the end--
                          (i) by striking ``, so designated on 
                        the certificate of delivery or 
                        certificate of manufacture and 
                        delivery''; and
                          (ii) by striking the last sentence 
                        and inserting the following: ``The 
                        party transferring the merchandise 
                        shall maintain records kept in the 
                        normal course of business to 
                        demonstrate the transfer.''.
  (i) Packaging Material.--Section 313(q) of the Tariff Act of 
1930 (19 U.S.C. 1313(q)) is amended--
          (1) in paragraph (1), by striking ``of 99 percent of 
        any duty, tax, or fee imposed under Federal law on such 
        imported material'' and inserting ``in an amount 
        calculated pursuant to regulations prescribed by the 
        Secretary of the Treasury under subsection (l)'';
          (2) in paragraph (2), by striking ``of 99 percent of 
        any duty, tax, or fee imposed under Federal law on the 
        imported or substituted merchandise used to manufacture 
        or produce such material'' and inserting ``in an amount 
        calculated pursuant to regulations prescribed by the 
        Secretary of the Treasury under subsection (l)''; and
          (3) in paragraph (3), by striking ``they contain'' 
        and inserting ``it contains''.
  (j) Filing of Drawback Claims.--Section 313(r) of the Tariff 
Act of 1930 (19 U.S.C. 1313(r)) is amended--
          (1) in paragraph (1)--
                  (A) by striking the first sentence and 
                inserting the following: ``A drawback entry 
                shall be filed or applied for, as applicable, 
                not later than 5 years after the date on which 
                merchandise on which drawback is claimed was 
                imported.'';
                  (B) in the second sentence, by striking ``3-
                year'' and inserting ``5-year''; and
                  (C) in the third sentence, by striking ``the 
                Customs Service'' and inserting ``U.S. Customs 
                and Border Protection'';
          (2) in paragraph (3)--
                  (A) in subparagraph (A)--
                          (i) in the matter preceding clause 
                        (i), by striking ``The Customs 
                        Service'' and inserting ``U.S. Customs 
                        and Border Protection'';
                          (ii) in clauses (i) and (ii), by 
                        striking ``the Customs Service'' each 
                        place it appears and inserting ``U.S. 
                        Customs and Border Protection''; and
                          (iii) in clause (ii)(I), by striking 
                        ``3-year'' and inserting ``5-year''; 
                        and
                  (B) in subparagraph (B), by striking ``the 
                periods of time for retaining records set forth 
                in subsection (t) of this section and'' and 
                inserting ``the period of time for retaining 
                records set forth in''; and
          (3) by adding at the end the following:
          ``(4) All drawback claims filed on and after the date 
        that is 2 years after the date of the enactment of the 
        Trade Facilitation and Trade Enforcement Act of 2015 
        (or, if later, the effective date provided for in 
        section 906(q)(2)(B) of that Act) shall be filed 
        electronically.''.
  (k) Designation of Merchandise by Successor.--Section 313(s) 
of the Tariff Act of 1930 (19 U.S.C. 1313(s)) is amended--
          (1) in paragraph (2), by striking subparagraph (B) 
        and inserting the following:
                  ``(B) subject to paragraphs (5) and (6) of 
                subsection (j), imported merchandise, other 
                merchandise classifiable under the same 8-digit 
                HTS subheading number as such imported 
                merchandise, or any combination of such 
                imported merchandise and such other 
                merchandise, that the predecessor received, 
                before the date of succession, from the person 
                who imported and paid any duties, taxes, and 
                fees due on the imported merchandise;''; and
          (2) in paragraph (4), by striking ``certifies that'' 
        and all that follows and inserting ``certifies that the 
        transferred merchandise was not and will not be claimed 
        by the predecessor.''.
  (l) Drawback Certificates.--Section 313 of the Tariff Act of 
1930 (19 U.S.C. 1313) is amended by striking subsection (t).
  (m) Drawback for Recovered Materials.--Section 313(x) of the 
Tariff Act of 1930 (19 U.S.C. 1313(x)) is amended by striking 
``and (c)'' and inserting ``(c), and (j)''.
  (n) Definitions.--Section 313 of the Tariff Act of 1930 (19 
U.S.C. 1313) is amended by adding at the end the following:
  ``(z) Definitions.--In this section:
          ``(1) Directly.--The term `directly' means a transfer 
        of merchandise or an article from one person to another 
        person without any intermediate transfer.
          ``(2) HTS.--The term `HTS' means the Harmonized 
        Tariff Schedule of the United States.
          ``(3) Indirectly.--The term `indirectly' means a 
        transfer of merchandise or an article from one person 
        to another person with one or more intermediate 
        transfers.''.
  (o) Recordkeeping.--Section 508(c)(3) of the Tariff Act of 
1930 (19 U.S.C. 1508(c)(3)) is amended--
          (1) by striking ``3rd'' and inserting ``5th''; and
          (2) by striking ``payment'' and inserting 
        ``liquidation''.
  (p) Government Accountability Office Report.--
          (1) In general.--Not later than one year after the 
        issuance of the regulations required by subsection 
        (l)(2) of section 313 of the Tariff Act of 1930, as 
        added by subsection (g) of this section, the 
        Comptroller General of the United States shall submit 
        to the Committee on Finance of the Senate and the 
        Committee on Ways and Means of the House of 
        Representatives a report on the modernization of 
        drawback and refunds under section 313 of the Tariff 
        Act of 1930, as amended by this section.
          (2) Contents.--The report required by paragraph (1) 
        include the following:
                  (A) An assessment of the modernization of 
                drawback and refunds under section 313 of the 
                Tariff Act of 1930, as amended by this section.
                  (B) A description of drawback claims that 
                were permissible before the effective date 
                provided for in subsection (q) that are not 
                permissible after that effective date and an 
                identification of industries most affected.
                  (C) A description of drawback claims that 
                were not permissible before the effective date 
                provided for in subsection (q) that are 
                permissible after that effective date and an 
                identification of industries most affected.
  (q) Effective Date.--
          (1) In general.--The amendments made by this section 
        shall--
                  (A) take effect on the date of the enactment 
                of this Act; and
                  (B) apply to drawback claims filed on or 
                after the date that is 2 years after such date 
                of enactment.
          (2) Reporting of operability of automated commercial 
        environment computer system.--Not later than one year 
        after the date of the enactment of this Act, and not 
        later than 2 years after such date of enactment, the 
        Secretary of the Treasury shall submit to Congress a 
        report on--
                  (A) the date on which the Automated 
                Commercial Environment will be ready to process 
                drawback claims; and
                  (B) the date on which the Automated Export 
                System will be ready to accept proof of 
                exportation under subsection (i) of section 313 
                of the Tariff Act of 1930, as amended by 
                subsection (d).
          (3) Transition rule.--During the one-year period 
        beginning on the date that is 2 years after the date of 
        the enactment of this Act (or, if later, the effective 
        date provided for in paragraph (2)(B)), a person may 
        elect to file a claim for drawback under--
                  (A) section 313 of the Tariff Act of 1930, as 
                amended by this section; or
                  (B) section 313 of the Tariff Act of 1930, as 
                in effect on the day before the date of the 
                enactment of this Act.

SEC. 907. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.

  (a) Annual Report on Trade Agreements Program and National 
Trade Policy Agenda.--Section 163(a) of the Trade Act of 1974 
(19 U.S.C. 2213(a)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A), by striking ``and'' 
                at the end;
                  (B) in subparagraph (B), by striking the 
                period at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
                  ``(C) the operation of all United States 
                Trade Representative-led interagency programs 
                during the preceding year and for the year in 
                which the report is submitted.''; and
          (2) by adding at the end the following:
          ``(4) The report shall include, with respect to the 
        matters referred to in paragraph (1)(C), information 
        regarding--
                  ``(A) the objectives and priorities of all 
                United States Trade Representative-led 
                interagency programs for the year, and the 
                reasons therefor;
                  ``(B) the actions proposed, or anticipated, 
                to be undertaken during the year to achieve 
                such objectives and priorities, including 
                actions authorized under the trade laws and 
                negotiations with foreign countries;
                  ``(C) the role of each Federal agency 
                participating in the interagency program in 
                achieving such objectives and priorities and 
                activities of each agency with respect to their 
                participation in the program;
                  ``(D) the United States Trade 
                Representative's coordination of each 
                participating Federal agency to more 
                effectively achieve such objectives and 
                priorities;
                  ``(E) any proposed legislation necessary or 
                appropriate to achieve any of such objectives 
                or priorities; and
                  ``(F) the progress that was made during the 
                preceding year in achieving such objectives and 
                priorities and coordination activities included 
                in the statement provided for such year under 
                this paragraph.''.
  (b) Resource Management and Staffing Plans.--
          (1) Annual plan.--
                  (A) In general.--The United States Trade 
                Representative shall on an annual basis develop 
                a plan--
                          (i) to match available resources of 
                        the Office of the United States Trade 
                        Representative to projected workload 
                        and provide a detailed analysis of how 
                        the funds allocated from the prior 
                        fiscal year to date have been spent;
                          (ii) to identify existing staff of 
                        the Office and new staff that will be 
                        necessary to support the trade 
                        negotiation and enforcement functions 
                        and powers of the Office (including 
                        those of the Trade Policy Staff 
                        Committee) as described in section 141 
                        of the Trade Act of 1974 (19 U.S.C. 
                        2171) and section 301 of the Trade Act 
                        of 1974 (19 U.S.C. 2411);
                          (iii) to identify existing staff of 
                        the Office and staff of other Federal 
                        agencies who will be required to be 
                        detailed to support United States Trade 
                        Representative-led interagency 
                        programs, including any associated 
                        expenses; and
                          (iv) to provide a detailed analysis 
                        of the budgetary requirements of United 
                        States Trade Representative-led 
                        interagency programs for the next 
                        fiscal year and provide a detailed 
                        analysis of how the funds allocated 
                        from the prior fiscal year to date have 
                        been spent.
                  (B) Report.--The United States Trade 
                Representative shall submit to the Committee on 
                Ways and Means and the Committee on 
                Appropriations of the House of Representatives 
                and the Committee on Finance and the Committee 
                on Appropriations of the Senate a report that 
                contains the plan required under subparagraph 
                (A). The report required under this 
                subparagraph shall be submitted in conjunction 
                with the annual budget of the United States 
                Government required to be submitted to Congress 
                under section 1105 of title 31, United States 
                Code.
          (2) Quadrennial plan.--
                  (A) In general.--Pursuant to the goals and 
                objectives of the strategic plan of the Office 
                of the United States Trade Representative as 
                required under section 306 of title 5, United 
                States Code, the United States Trade 
                Representative shall every 4 years develop a 
                plan--
                          (i) to analyze internal quality 
                        controls and record management of the 
                        Office;
                          (ii) to identify existing staff of 
                        the Office and new staff that will be 
                        necessary to support the trade 
                        negotiation and enforcement functions 
                        and powers of the Office (including 
                        those of the Trade Policy Staff 
                        Committee) as described in section 141 
                        of the Trade Act of 1974 (19 U.S.C. 
                        2171) and section 301 of the Trade Act 
                        of 1974 (19 U.S.C. 2411);
                          (iii) to identify existing staff of 
                        the Office and staff in other Federal 
                        agencies who will be required to be 
                        detailed to support United States Trade 
                        Representative-led interagency 
                        programs, including any associated 
                        expenses;
                          (iv) to provide an outline of budget 
                        justifications, including salaries and 
                        expenses as well as non-personnel 
                        administrative expenses, for the fiscal 
                        years required under the strategic 
                        plan; and
                          (v) to provide an outline of budget 
                        justifications, including salaries and 
                        expenses as well as non-personnel 
                        administrative expenses, for United 
                        States Trade Representative-led 
                        interagency programs for the fiscal 
                        years required under the strategic 
                        plan.
                  (B) Report.--
                          (i) In general.--The United States 
                        Trade Representative shall submit to 
                        the Committee on Ways and Means and the 
                        Committee on Appropriations of the 
                        House of Representatives and the 
                        Committee on Finance and the Committee 
                        on Appropriations of the Senate a 
                        report that contains the plan required 
                        under subparagraph (A). Except as 
                        provided in clause (ii), the report 
                        required under this clause shall be 
                        submitted in conjunction with the 
                        strategic plan of the Office as 
                        required under section 306 of title 5, 
                        United States Code.
                          (ii) Exception.--The United States 
                        Trade Representative shall submit to 
                        the congressional committees specified 
                        in clause (i) an initial report that 
                        contains the plan required under 
                        subparagraph (A) not later than 
                        February 1, 2016.

SEC. 908. UNITED STATES-ISRAEL TRADE AND COMMERCIAL ENHANCEMENT.

  (a) Findings.--Congress finds the following:
          (1) Israel is America's dependable, democratic ally 
        in the Middle East--an area of paramount strategic 
        importance to the United States.
          (2) The United States-Israel Free Trade Agreement 
        formed the modern foundation of the bilateral 
        commercial relationship between the two countries and 
        was the first such agreement signed by the United 
        States with a foreign country.
          (3) The United States-Israel Free Trade Agreement has 
        been instrumental in expanding commerce and the 
        strategic relationship between the United States and 
        Israel.
          (4) More than $45 billion in goods and services is 
        traded annually between the two countries in addition 
        to roughly $10 billion in United States foreign direct 
        investment in Israel.
          (5) The United States continues to look for and find 
        new opportunities to enhance cooperation with Israel, 
        including through the enactment of the United States-
        Israel Enhanced Security Cooperation Act of 2012 
        (Public Law 112-150) and the United States-Israel 
        Strategic Partnership Act of 2014 (Public Law 113-296).
          (6) It has been the policy of the United States 
        Government to combat all elements of the Arab League 
        Boycott of Israel by--
                  (A) public statements of Administration 
                officials;
                  (B) enactment of relevant sections of the 
                Export Administration Act of 1979 (as continued 
                in effect pursuant to the International 
                Emergency Economic Powers Act), including 
                sections to ensure foreign persons comply with 
                applicable reporting requirements relating to 
                the boycott;
                  (C) enactment of the 1976 Tax Reform Act 
                (Public Law 94-455) that denies certain tax 
                benefits to entities abiding by the boycott;
                  (D) ensuring through free trade agreements 
                with Bahrain and Oman that such countries no 
                longer participate in the boycott; and
                  (E) ensuring as a condition of membership in 
                the World Trade Organization that Saudi Arabia 
                no longer enforces the secondary or tertiary 
                elements of the boycott.
  (b) Statements of Policy.--Congress--
          (1) supports the strengthening of United States-
        Israel economic cooperation and recognizes the 
        tremendous strategic, economic, and technological value 
        of cooperation with Israel;
          (2) recognizes the benefit of cooperation with Israel 
        to United States companies, including by improving 
        American competitiveness in global markets;
          (3) recognizes the importance of trade and commercial 
        relations to the pursuit and sustainability of peace, 
        and supports efforts to bring together the United 
        States, Israel, the Palestinian territories, and others 
        in enhanced commerce;
          (4) opposes politically motivated actions that 
        penalize or otherwise limit commercial relations 
        specifically with Israel such as boycotts, divestment 
        or sanctions;
          (5) notes that the boycott, divestment, and 
        sanctioning of Israel by governments, governmental 
        bodies, quasi-governmental bodies, international 
        organizations, and other such entities is contrary to 
        the General Agreement on Tariffs and Trade (GATT) 
        principle of non-discrimination;
          (6) encourages the inclusion of politically motivated 
        actions that penalize or otherwise limit commercial 
        relations specifically with Israel such as boycotts, 
        divestment from, or sanctions against Israel as a topic 
        of discussion at the U.S.-Israel Joint Economic 
        Development Group (JEDG) and other areas to support the 
        strengthening of the United States-Israel commercial 
        relationship and combat any commercial discrimination 
        against Israel;
          (7) supports efforts to prevent investigations or 
        prosecutions by governments or international 
        organizations of United States persons on the sole 
        basis of such persons doing business with Israel, with 
        Israeli entities, or in Israeli-controlled territories; 
        and
          (8) supports American States examining a company's 
        promotion or compliance with unsanctioned boycotts, 
        divestment from, or sanctions against Israel as part of 
        its consideration in awarding grants and contracts and 
        supports the divestment of State assets from companies 
        that support or promote actions to boycott, divest 
        from, or sanction Israel.
  (c) Principal Trade Negotiating Objectives of the United 
States.--
          (1) Commercial partnerships.--Among the principal 
        trade negotiating objectives of the United States for 
        proposed trade agreements with foreign countries 
        regarding commercial partnerships are the following:
                  (A) To discourage actions by potential 
                trading partners that directly or indirectly 
                prejudice or otherwise discourage commercial 
                activity solely between the United States and 
                Israel.
                  (B) To discourage politically motivated 
                actions to boycott, divest from, or sanction 
                Israel and to seek the elimination of 
                politically motivated non-tariff barriers on 
                Israeli goods, services, or other commerce 
                imposed on the State of Israel.
                  (C) To seek the elimination of state-
                sponsored unsanctioned foreign boycotts against 
                Israel or compliance with the Arab League 
                Boycott of Israel by prospective trading 
                partners.
          (2) Effective date.--This subsection takes effect on 
        the date of the enactment of this Act and applies with 
        respect to negotiations commenced before, on, or after 
        the date of the enactment of this Act.
  (d) Report on Politically Motivated Acts of Boycott, 
Divestment From, and Sanctions Against Israel.--
          (1) In general.--Not later than 180 days after the 
        date of the enactment of this Act, and annually 
        thereafter, the President shall submit to Congress a 
        report on politically motivated acts of boycott, 
        divestment from, and sanctions against Israel.
          (2) Matters to be included.--The report required by 
        paragraph (1) shall include the following:
                  (A) A description of the establishment of 
                barriers to trade, including non-tariff 
                barriers, investment, or commerce by foreign 
                countries or international organizations 
                against United States persons operating or 
                doing business in Israel, with Israeli 
                entities, or in Israeli-controlled territories.
                  (B) A description of specific steps being 
                taken by the United States to encourage foreign 
                countries and international organizations to 
                cease creating such barriers and to dismantle 
                measures already in place and an assessment of 
                the effectiveness of such steps.
                  (C) A description of specific steps being 
                taken by the United States to prevent 
                investigations or prosecutions by governments 
                or international organizations of United States 
                persons on the sole basis of such persons doing 
                business with Israel, with Israeli entities, or 
                in Israeli-controlled territories.
                  (D) Decisions by foreign persons, including 
                corporate entities and state-affiliated 
                financial institutions, that limit or prohibit 
                economic relations with Israel or persons doing 
                business in Israel or in Israeli controlled 
                territories.
  (e) Certain Foreign Judgments Against United States 
Persons.--Notwithstanding any other provision of law, no 
domestic court shall recognize or enforce any foreign judgment 
entered against a United States person that conducts business 
operations in Israel, or any territory controlled by Israel, if 
the domestic court determines that the foreign judgment is 
based, in whole or in part, on a determination by a foreign 
court that the United States person's conducting business 
operations therein or with Israeli entities constitutes a 
violation of law.
  (f) Definitions.--In this section:
          (1) Boycott, divestment from, and sanctions against 
        israel.--The term ``boycott, divestment from, and 
        sanctions against Israel'' means actions by states, 
        non-member states of the United Nations, international 
        organizations, or affiliated agencies of international 
        organizations that are politically motivated and are 
        intended to penalize or otherwise limit commercial 
        relations specifically with Israel or persons doing 
        business in Israel or in Israeli-controlled 
        territories.
          (2) Domestic court.--The term ``domestic court'' 
        means a Federal court of the United States, or a court 
        of any State or territory of the United States or of 
        the District of Columbia.
          (3) Foreign court.--The term ``foreign court'' means 
        a court, an administrative body, or other tribunal of a 
        foreign country.
          (4) Foreign judgment.--The term ``foreign judgment'' 
        means a final civil judgment rendered by a foreign 
        court.
          (5) Foreign person.--The term ``foreign person'' 
        means--
                  (A) any natural person who is not lawfully 
                admitted for permanent residence (as defined in 
                section 101(a)(20) of the Immigration and 
                Nationality Act (8 U.S.C. 1101(a)(20)) or who 
                is not a protected individual (as defined in 
                section 274B(a)(3) of such Act (8 U.S.C. 
                1324b(a)(3)); or
                  (B) any foreign corporation, business 
                association, partnership, trust, society or any 
                other entity or group that is not incorporated 
                or organized to do business in the United 
                States, as well as any international 
                organization, foreign government and any agency 
                or subdivision of foreign government, including 
                a diplomatic mission.
          (6) Person.--
                  (A) In general.--The term ``person'' means--
                          (i) a natural person;
                          (ii) a corporation, business 
                        association, partnership, society, 
                        trust, financial institution, insurer, 
                        underwriter, guarantor, and any other 
                        business organization, any other 
                        nongovernmental entity, organization, 
                        or group, and any governmental entity 
                        operating as a business enterprise; and
                          (iii) any successor to any entity 
                        described in clause (ii).
                  (B) Application to governmental entities.--
                The term ``person'' does not include a 
                government or governmental entity that is not 
                operating as a business enterprise.
          (7) United states person.--The term ``United States 
        person'' means--
                  (A) a natural person who is a national of the 
                United States (as defined in section 101(a)(22) 
                of the Immigration and Nationality Act (8 
                U.S.C. 1101(a)(22))); or
                  (B) a corporation or other legal entity which 
                is organized under the laws of the United 
                States, any State or territory thereof, or the 
                District of Columbia, if natural persons 
                described in subparagraph (A) own, directly or 
                indirectly, more than 50 percent of the 
                outstanding capital stock or other beneficial 
                interest in such legal entity.

SEC. 909. ELIMINATION OF CONSUMPTIVE DEMAND EXCEPTION TO PROHIBITION ON 
                    IMPORTATION OF GOODS MADE WITH CONVICT LABOR, 
                    FORCED LABOR, OR INDENTURED LABOR; REPORT.

  (a) Elimination of Consumptive Demand Exception.--
          (1) In general.--Section 307 of the Tariff Act of 
        1930 (19 U.S.C. 1307) is amended by striking ``The 
        provisions of this section'' and all that follows 
        through ``of the United States.''.
          (2) Effective date.--The amendment made by paragraph 
        (1) shall take effect on the date that is 15 days after 
        the date of the enactment of this Act.
  (b) Report Required.--Not later than 180 days after the date 
of the enactment of this Act, and annually thereafter, the 
Commissioner shall submit to the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House of 
Representatives a report on compliance with section 307 of the 
Tariff Act of 1930 (19 U.S.C. 1307) that includes the 
following:
          (1) The number of instances in which merchandise was 
        denied entry pursuant to that section during the 1-year 
        period preceding the submission of the report.
          (2) A description of the merchandise denied entry 
        pursuant to that section.
          (3) Such other information as the Commissioner 
        considers appropriate with respect to monitoring and 
        enforcing compliance with that section.

SEC. 910. CUSTOMS USER FEES.

  (a) In General.--Section 13031(j)(3) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) 
is amended by adding at the end the following:
  ``(C) Fees may be charged under paragraphs (9) and (10) of 
subsection (a) during the period beginning on July 8, 2025, and 
ending on July 28, 2025.''.
  (b) Rate for Merchandise Processing Fees.--Section 503 of the 
United States-Korea Free Trade Agreement Implementation Act 
(Public Law 112-41; 125 Stat. 460) is amended--
          (1) by striking ``For the period'' and inserting 
        ``(a) In General.--For the period''; and
          (2) by adding at the end the following:
  ``(b) Additional Period.--For the period beginning on July 1, 
2025, and ending on July 14, 2025, section 13031(a)(9) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 (19 
U.S.C. 58c(a)(9)) shall be applied and administered--
          ``(1) in subparagraph (A), by substituting `0.3464' 
        for `0.21'; and
          ``(2) in subparagraph (B)(i), by substituting 
        `0.3464' for `0.21'.''.

SEC. 911. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER PROTECTION 
                    AGREEMENTS.

  (a) In General.--Not later than one year after entering into 
an agreement under a program specified in subsection (b), and 
annually thereafter until the termination of the program, the 
Commissioner shall submit to the Committee on Finance of the 
Senate, the Committee on Ways and Means of the House of 
Representatives, the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the Committee on 
Homeland Security of the House of Representatives a report that 
includes the following:
          (1) A description of the development of the program.
          (2) A description of the type of entity with which 
        U.S. Customs and Border Protection entered into the 
        agreement and the amount that entity reimbursed U.S. 
        Customs and Border Protection under the agreement.
          (3) An identification of the type of port of entry to 
        which the agreement relates and an assessment of how 
        the agreement provides economic benefits at the port of 
        entry.
          (4) A description of the services provided by U.S. 
        Customs and Border Protection under the agreement 
        during the year preceding the submission of the report.
          (5) The amount of fees collected under the agreement 
        during that year.
          (6) A detailed accounting of how the fees collected 
        under the agreement have been spent during that year.
          (7) A summary of any complaints or criticism received 
        by U.S. Customs and Border Protection during that year 
        regarding the agreement.
          (8) An assessment of the compliance of the entity 
        described in paragraph (2) with the terms of the 
        agreement.
          (9) Recommendations with respect to how activities 
        conducted pursuant to the agreement could function more 
        effectively or better produce economic benefits.
          (10) A summary of the benefits to and challenges 
        faced by U.S. Customs and Border Protection and the 
        entity described in paragraph (2) under the agreement.
  (b) Program Specified.--A program specified in this 
subsection is--
          (1) the program for entering into reimbursable fee 
        agreements for the provision of U.S. Customs and Border 
        Protection services established by section 560 of the 
        Department of Homeland Security Appropriations Act, 
        2013 (division D of Public Law 113-6; 127 Stat. 378); 
        or
          (2) the pilot program authorizing U.S. Customs and 
        Border Protection to enter into partnerships with 
        private sector and government entities at ports of 
        entry established by section 559 of the Department of 
        Homeland Security Appropriations Act, 2014 (division F 
        of Public Law 113-76; 6 U.S.C. 211 note).

SEC. 912. AMENDMENTS TO BIPARTISAN CONGRESSIONAL TRADE PRIORITIES AND 
                    ACCOUNTABILITY ACT OF 2015.

  (a) Immigration Laws of the United States.--Section 102(a) of 
the Bipartisan Congressional Trade Priorities and 
Accountability Act of 2015 is amended--
          (1) in paragraph (12), by striking ``and'' at the 
        end;
          (2) in paragraph (13), by striking the period at the 
        end and inserting ``; and''; and
          (3) by adding at the end the following:
          ``(14) to ensure that trade agreements do not require 
        changes to the immigration laws of the United States or 
        obligate the United States to grant access or expand 
        access to visas issued under section 101(a)(15) of the 
        Immigration and Nationality Act (8 U.S.C. 
        1101(a)(15)).''.
  (b) Global Warming.--Section 102(a) of the Bipartisan 
Congressional Trade Priorities and Accountability Act of 2015, 
as amended by subsection (a) of this section, is amended--
          (1) in paragraph (13), by striking ``and'' at the 
        end;
          (2) in paragraph (14), by striking the period at the 
        end and inserting ``; and''; and
          (3) by adding at the end the following:
          ``(15) to ensure that trade agreements do not require 
        changes to U.S. law or obligate the United States with 
        respect to global warming or climate change.''.
  (c) Fisheries Negotiations.--Section 102(b) of the Bipartisan 
Congressional Trade Priorities and Accountability Act of 2015 
is amended by adding at the end the following:
          ``(22) Fisheries negotiations.--The principal 
        negotiating objectives of the United States with 
        respect to trade in fish, seafood, and shellfish 
        products are to obtain competitive opportunities for 
        United States exports of fish, seafood, and shellfish 
        products in foreign markets substantially equivalent to 
        the competitive opportunities afforded foreign exports 
        of fish, seafood, and shellfish products in United 
        States markets and to achieve fairer and more open 
        conditions of trade in fish, seafood, and shellfish 
        products, including by reducing or eliminating tariff 
        and non-tariff barriers and eliminating subsidies that 
        distort trade.''.
  (d) Accreditation.--Section 104(c)(2)(C) of the Bipartisan 
Congressional Trade Priorities and Accountability Act of 2015 
is amended by inserting after the first sentence the following: 
``In addition, the chairman and ranking members described in 
subparagraphs (A)(i) and (B)(i) shall each be permitted to 
designate up to 3 personnel with proper security clearances to 
serve as delegates to such negotiations.''.
  (e) Trafficking in Persons.--Section 106(b)(6) of the 
Bipartisan Congressional Trade Priorities and Accountability 
Act of 2015 is amended--
          (1) by redesignating subparagraph (B) as subparagraph 
        (C); and
          (2) by inserting after subparagraph (A) the 
        following:
                  ``(B) Exception.--
                          ``(i) Invoking exception.--If the 
                        President submits to the appropriate 
                        congressional committees a letter 
                        stating that a country to which 
                        subparagraph (A) applies has taken 
                        concrete actions to implement the 
                        principal recommendations with respect 
                        to that country in the most recent 
                        annual report on trafficking in 
                        persons, this paragraph shall not apply 
                        with respect to agreements with that 
                        country.
                          ``(ii) Content of letter; public 
                        availability.--A letter submitted under 
                        clause (i) with respect to a country 
                        shall--
                                  ``(I) include a description 
                                of the concrete actions that 
                                the country has taken to 
                                implement the principal 
                                recommendations described in 
                                clause (i); and
                                  ``(II) be made available to 
                                the public.
                          ``(iii) Appropriate congressional 
                        committees defined.--In this 
                        subparagraph, the term `appropriate 
                        congressional committees' means--
                                  ``(I) the Committee on Ways 
                                and Means and the Committee on 
                                Foreign Affairs of the House of 
                                Representatives; and
                                  ``(II) the Committee on 
                                Finance and the Committee on 
                                Foreign Relations of the 
                                Senate.'';
  (f) Technical Amendments.--The Bipartisan Congressional Trade 
Priorities and Accountability Act of 2015 is amended--
          (1) in section 105(b)(3)--
                  (A) in subparagraph (A)(ii), by striking 
                ``section 102(b)(16)'' and inserting ``section 
                102(b)(17)''; and
                  (B) in subparagraph (B)(ii), by striking 
                ``section 102(b)(16)'' and inserting ``section 
                102(b)(17)''; and
          (2) in section 106(b)(5), by striking ``section 
        102(b)(15)(C)'' and inserting ``section 
        102(b)(16)(C)''.
  (g) Effective Date.--The amendments made by this section 
shall take effect as if included in the enactment of the 
Bipartisan Congressional Trade Priorities and Accountability 
Act of 2015.

SEC. 913. CERTAIN INTEREST TO BE INCLUDED IN DISTRIBUTIONS UNDER 
                    CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000.

  (a) In General.--Notwithstanding any other provision of law, 
the Commissioner shall include in all distributions of 
collected antidumping and countervailing duties described in 
subsection (b) all interest earned on such duties, including--
          (1) interest accrued under section 778 of the Tariff 
        Act of 1930 (19 U.S.C. 1677g),
          (2) interest accrued under section 505(d) of the 
        Tariff Act of 1930 (19 U.S.C. 1505(d)), and
          (3) common-law equitable interest, and all interest 
        under section 963 of the Revised Statutes of the United 
        States (19 U.S.C. 580), awarded by a court against a 
        surety's late payment of antidumping or countervailing 
        duties and interest described in paragraph (1) or (2), 
        under its bond,
which is, or was, realized through application of any payment 
received on or after October 1, 2014, by U.S. Customs and 
Border Protection under, or in connection with, any customs 
bond pursuant to a court order or judgment, or any settlement 
for any such bond.
  (b) Distributions Described.--The distributions described in 
subsection (a) are all distributions made on or after the date 
of the enactment of this Act pursuant to section 754 of the 
Tariff Act of 1930 (19 U.S.C. 1675c) (as such section was in 
effect on February 7, 2006) of collected antidumping and 
countervailing duties assessed on or after October 1, 2000, on 
entries made through September 30, 2007.

SEC. 914. REPORT ON COMPETITIVENESS OF U.S. RECREATIONAL PERFORMANCE 
                    OUTERWEAR INDUSTRY.

  Not later than June 1, 2016, the United States International 
Trade Commission shall submit to the Committee on Finance of 
the Senate and the Committee on Ways and Means of the House of 
Representatives a report on the competitiveness of the United 
States recreational performance outwear industry and its 
effects on the United States economy, including an assessment 
of duty structures on inputs as well as finished products and 
global supply chains.

SEC. 915. INCREASE IN PENALTY FOR FAILURE TO FILE RETURN OF TAX.

  (a) In General.--Section 6651(a) of the Internal Revenue Code 
of 1986 is amended by striking ``$135'' in the last sentence 
and inserting ``$205''.
  (b) Conforming Amendment.--Section 6651(i) of such Code is 
amended by striking ``$135'' and inserting ``$205''.
  (c) Effective Date.--The amendments made by this section 
shall apply to returns required to be filed in calendar years 
after 2015.

        PART B--TEXT OF THE MODIFICATION TO THE HOUSE AMENDMENT

  Strike title VII and insert the following:

                    TITLE VII--CURRENCY MANIPULATION

SEC. 701. ENHANCEMENT OF ENGAGEMENT ON CURRENCY EXCHANGE RATE AND 
                    ECONOMIC POLICIES WITH CERTAIN MAJOR TRADING 
                    PARTNERS OF THE UNITED STATES.

  (a) Major Trading Partner Report.--
          (1) In general.--Not later than 180 days after the 
        date of the enactment of this Act, and not less 
        frequently than once every 180 days thereafter, the 
        Secretary shall submit to the appropriate committees of 
        Congress a report on the macroeconomic and currency 
        exchange rate policies of each country that is a major 
        trading partner of the United States.
          (2) Elements.--
                  (A) In general.--Each report submitted under 
                paragraph (1) shall contain--
                          (i) for each country that is a major 
                        trading partner of the United States--
                                  (I) that country's bilateral 
                                trade balance with the United 
                                States;
                                  (II) that country's current 
                                account balance as a percentage 
                                of its gross domestic product;
                                  (III) the change in that 
                                country's current account 
                                balance as a percentage of its 
                                gross domestic product during 
                                the 3-year period preceding the 
                                submission of the report;
                                  (IV) that country's foreign 
                                exchange reserves as a 
                                percentage of its short-term 
                                debt; and
                                  (V) that country's foreign 
                                exchange reserves as a 
                                percentage of its gross 
                                domestic product; and
                          (ii) an enhanced analysis of 
                        macroeconomic and exchange rate 
                        policies for each country that is a 
                        major trading partner of the United 
                        States that has--
                                  (I) a significant bilateral 
                                trade surplus with the United 
                                States;
                                  (II) a material current 
                                account surplus; and
                                  (III) engaged in persistent 
                                one-sided intervention in the 
                                foreign exchange market.
                  (B) Enhanced analysis.--Each enhanced 
                analysis under subparagraph (A)(ii) shall 
                include, for each country with respect to which 
                an analysis is made under that subparagraph--
                          (i) a description of developments in 
                        the currency markets of that country, 
                        including, to the greatest extent 
                        feasible, developments with respect to 
                        currency interventions;
                          (ii) a description of trends in the 
                        real effective exchange rate of the 
                        currency of that country and in the 
                        degree of undervaluation of that 
                        currency;
                          (iii) an analysis of changes in the 
                        capital controls and trade restrictions 
                        of that country;
                          (iv) patterns in the reserve 
                        accumulation of that country; and
                          (v) an analysis of the macroeconomic 
                        policy mix of that country and its 
                        pattern of savings-investment 
                        imbalances.
          (3) Guidance.--The Secretary shall publicly issue 
        guidance not later than 90 days after the date of 
        enactment of the Act that describes the factors used to 
        assess under paragraph (2)(A)(ii) whether a country has 
        a significant bilateral trade surplus with the United 
        States, has a material current account surplus, and has 
        engaged in persistent one-sided intervention in the 
        foreign exchange market.
  (b) Engagement on Exchange Rate and Economic Policies.--
          (1) In general.--The President, through the 
        Secretary, shall commence enhanced bilateral engagement 
        with each country for which an enhanced analysis of 
        macroeconomic and currency exchange rate policies is 
        included in the report submitted under subsection (a), 
        in order to, as appropriate--
                  (A) urge implementation of policies to 
                address the causes of the undervaluation of its 
                currency, its bilateral trade surplus with the 
                United States, and its material current account 
                surplus, including undervaluation and surpluses 
                relating to exchange rate management;
                  (B) express the concern of the United States 
                with respect to the adverse trade and economic 
                effects of that undervaluation and those 
                surpluses; and/or
                  (C) advise that country of the ability of the 
                President to take action under subsection (c).
          (2) Waiver.--
                  (A) In general.--The Secretary may waive the 
                requirement under subsection (b)(1) to commence 
                enhanced bilateral engagement with a country if 
                the Secretary determines that commencing 
                enhanced bilateral engagement with the 
                country--
                          (i) would have an adverse impact on 
                        the United States economy greater than 
                        the benefits of such action; or
                          (ii) would cause serious harm to the 
                        national security of the United States.
                  (B) Certification.--The Secretary shall 
                promptly certify to Congress a determination 
                under subparagraph (A).
  (c) Remedial Action.--
          (1) In general.--If, on or after the date that is one 
        year after the commencement of enhanced bilateral 
        engagement by the President, through the Secretary, 
        with respect to a country under subsection (b)(1), the 
        Secretary determines that the country has failed to 
        adopt appropriate policies to correct the 
        undervaluation and surpluses described in subsection 
        (b)(1)(A) with respect to that country, the President 
        shall take one or more of the following actions:
                  (A) Prohibit the Overseas Private Investment 
                Corporation from approving any new financing 
                (including any insurance, reinsurance, or 
                guarantee) with respect to a project located in 
                that country on and after such date.
                  (B) Except as provided in paragraph (2), and 
                pursuant to paragraph (3), prohibit the Federal 
                Government from procuring, or entering into any 
                contract for the procurement of, goods or 
                services from that country on and after such 
                date.
                  (C) Instruct the United States Executive 
                Director of the International Monetary Fund to 
                call for additional rigorous surveillance of 
                the macroeconomic and exchange rate policies of 
                that country and, as appropriate, formal 
                consultations on findings of currency 
                manipulation.
                  (D) Instruct the United States Trade 
                Representative to take into account, in 
                consultation with the Secretary, in assessing 
                whether to enter into a bilateral or regional 
                trade agreement with that country or to 
                initiate or participate in negotiations with 
                respect to a bilateral or regional trade 
                agreement with that country, the extent to 
                which that country has failed to adopt 
                appropriate policies to correct the 
                undervaluation and surpluses described in 
                subsection (b)(1)(A).
          (2) Waiver.--
                  (A) In general.--The President may waive the 
                requirement under paragraph (1) to take 
                remedial action if the President determines 
                that taking remedial action under paragraph (1) 
                would--
                          (i) have an adverse impact on the 
                        United States economy greater than the 
                        benefits of taking remedial action; or
                          (ii) would cause serious harm to the 
                        national security of the United States.
                  (B) Certification.--The President shall 
                promptly certify to Congress a determination 
                under subparagraph (A).
          (3) Exception.--The President may not apply a 
        prohibition under paragraph (1)(B) in a manner that is 
        inconsistent with United States obligations under 
        international agreements.
          (4) Consultations.--
                  (A) Office of management and budget.--Before 
                applying a prohibition under paragraph (1)(B), 
                the President shall consult with the Director 
                of the Office of Management and Budget to 
                determine whether such prohibition would 
                subject the taxpayers of the United States to 
                unreasonable cost.
                  (B) Congress.--The President shall consult 
                with the appropriate committees of Congress 
                with respect to any action the President takes 
                under paragraph (1)(B), including whether the 
                President has consulted as required under 
                subparagraph (A).
  (d) Definitions.--In this section:
          (1) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                  (A) the Committee on Banking, Housing, and 
                Urban Affairs and the Committee on Finance of 
                the Senate; and
                  (B) the Committee on Financial Services and 
                the Committee on Ways and Means of the House of 
                Representatives.
          (2) Country.--The term ``country'' means a foreign 
        country, dependent territory, or possession of a 
        foreign country, and may include an association of 2 or 
        more foreign countries, dependent territories, or 
        possessions of countries into a customs union outside 
        the United States.
          (3) Real effective exchange rate.--The term ``real 
        effective exchange rate'' means a weighted average of 
        bilateral exchange rates, expressed in price-adjusted 
        terms.
          (4) Secretary.--The term ``Secretary'' means the 
        Secretary of the Treasury.

SEC. 702. ADVISORY COMMITTEE ON INTERNATIONAL EXCHANGE RATE POLICY.

  (a) Establishment.--
          (1) In general.--There is established an Advisory 
        Committee on International Exchange Rate Policy (in 
        this section referred to as the ``Committee'').
          (2) Duties.--The Committee shall be responsible for 
        advising the Secretary of the Treasury with respect to 
        the impact of international exchange rates and 
        financial policies on the economy of the United States.
  (b) Membership.--
          (1) In general.--The Committee shall be composed of 9 
        members as follows, none of whom shall be employees of 
        the Federal Government:
                  (A) Three members shall be appointed by the 
                President pro tempore of the Senate, upon the 
                recommendation of the chairmen and ranking 
                members of the Committee on Banking, Housing, 
                and Urban Affairs and the Committee on Finance 
                of the Senate.
                  (B) Three members shall be appointed by the 
                Speaker of the House of Representatives upon 
                the recommendation of the chairmen and ranking 
                members of the Committee on Financial Services 
                and the Committee on Ways and Means of the 
                House of Representatives.
                  (C) Three members shall be appointed by the 
                President.
          (2) Qualifications.--Members shall be selected under 
        paragraph (1) on the basis of their objectivity and 
        demonstrated expertise in finance, economics, or 
        currency exchange.
          (3) Terms.--
                  (A) In general.--Members shall be appointed 
                for a term of 2 years or until the Committee 
                terminates.
                  (B) Reappointment.--A member may be 
                reappointed to the Committee for additional 
                terms.
          (4) Vacancies.--Any vacancy in the Committee shall 
        not affect its powers, but shall be filled in the same 
        manner as the original appointment.
  (c) Duration of Committee.--
          (1) In general.--The Committee shall terminate on the 
        date that is 2 years after the date of the enactment of 
        this Act unless renewed by the President for a 
        subsequent 2-year period.
          (2) Continued renewal.--The President may continue to 
        renew the Committee for successive 2-year periods by 
        taking appropriate action to renew the Committee prior 
        to the date on which the Committee would otherwise 
        terminate.
  (d) Meetings.--The Committee shall hold not less than 2 
meetings each calendar year.
  (e) Chairperson.--
          (1) In general.--The Committee shall elect from among 
        its members a chairperson for a term of 2 years or 
        until the Committee terminates.
          (2) Reelection; subsequent terms.--A chairperson of 
        the Committee may be reelected chairperson but is 
        ineligible to serve consecutive terms as chairperson.
  (f) Staff.--The Secretary of the Treasury shall make 
available to the Committee such staff, information, personnel, 
administrative services, and assistance as the Committee may 
reasonably require to carry out the activities of the 
Committee.
  (g) Application of the Federal Advisory Committee Act.--
          (1) In general.--Except as provided in paragraph (2), 
        the provisions of the Federal Advisory Committee Act (5 
        U.S.C. App.) shall apply to the Committee.
          (2) Exception.--Meetings of the Committee shall be 
        exempt from the requirements of subsections (a) and (b) 
        of section 10 and section 11 of the Federal Advisory 
        Committee Act (relating to open meetings, public 
        notice, public participation, and public availability 
        of documents), whenever and to the extent it is 
        determined by the President or the Secretary of the 
        Treasury that such meetings will be concerned with 
        matters the disclosure of which--
                  (A) would seriously compromise the 
                development by the Government of the United 
                States of monetary or financial policy; or
                  (B) is likely to--
                          (i) lead to significant financial 
                        specu1ation in currencies, securities, 
                        or commodities; or
                          (ii) significantly endanger the 
                        stability of any financial institution.
  (h) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary of the Treasury for each 
fiscal year in which the Committee is in effect $1,000,000 to 
carry out this section.

                                  [all]
```