97–818 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 114–376 

TRADE FACILITATION AND TRADE ENFORCEMENT ACT 

OF 2015 

DECEMBER 9, 2015.—Ordered to be printed 

Mr. BRADY of Texas, from the committee of conference, 

submitted the following 

CONFERENCE REPORT 

[To accompany H.R. 644] 

The committee of conference on the disagreeing votes of the 

two Houses on the amendment of the House to the amendment of 

the Senate to the bill (H.R. 644), to reauthorize trade facilitation 

and trade enforcement functions and activities, and for other purposes, having met, after full and free conference, have agreed to 

recommend and do recommend to their respective Houses as follows: 

That the Senate recede from its disagreement to the amendment of the House to the amendment of the Senate and agree to 

the same with an amendment as follows: 

In lieu of the matter proposed to be inserted by the House 

amendment, 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 

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. 


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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 importer risk assessment program. 

Sec. 116. Customs broker identification of importers. 

Sec. 117. Priority trade issues. 

Sec. 118. 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 investigating claims of evasion of antidumping and countervailing duty orders. 

Subtitle C—Other Matters 

Sec. 431. Allocation and training of personnel. 

Sec. 432. Annual report on prevention and investigation of evasion of antidumping 

and countervailing duty orders. 

Sec. 433. Addressing circumvention by new shippers. 

TITLE V—SMALL BUSINESS TRADE ISSUES AND STATE TRADE 

COORDINATION 

Sec. 501. Short title. 

Sec. 502. Outreach and input from small businesses to trade promotion authority. 

Sec. 503. State Trade Expansion Program. 

Sec. 504. State and Federal Export Promotion Coordination. 

Sec. 505. State trade coordination. 

TITLE VI—ADDITIONAL ENFORCEMENT PROVISIONS 

Sec. 601. Trade enforcement priorities. 


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Sec. 602. Exercise of WTO authorization to suspend concessions or other obligations 

under trade agreements. 

Sec. 603. Trade monitoring. 

Sec. 604. Establishment of Interagency Center on Trade Implementation, Monitoring, and Enforcement. 

Sec. 605. Inclusion of interest in certain distributions of antidumping duties and 

countervailing duties. 

Sec. 606. Illicitly imported, exported, or trafficked cultural property, archaeological 

or ethnological materials, and fish, wildlife, and plants. 

Sec. 607. Enforcement under title III of the Trade Act of 1974 with respect to certain 

acts, policies, and practices. 

Sec. 608. Honey transshipment. 

Sec. 609. Establishment of Chief Innovation and Intellectual Property Negotiator. 

Sec. 610. Measures relating to countries that deny adequate protection for intellectual property rights. 

Sec. 611. Trade Enforcement Trust Fund. 

TITLE VII—ENGAGEMENT ON CURRENCY EXCHANGE RATE AND 

ECONOMIC POLICIES 

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—MATTERS RELATING TO U.S. CUSTOMS AND BORDER 

PROTECTION 

Subtitle A—Establishment of U.S. Customs and Border Protection 

Sec. 801. Short title. 

Sec. 802. Establishment of U.S. Customs and Border Protection. 

Subtitle B—Preclearance Operations 

Sec. 811. Short title. 

Sec. 812. Definitions. 

Sec. 813. Establishment of preclearance operations. 

Sec. 814. Notification and certification to Congress. 

Sec. 815. Protocols. 

Sec. 816. Lost and stolen passports. 

Sec. 817. Recovery of initial U.S. Customs and Border Protection preclearance operations costs. 

Sec. 818. Collection and disposition of funds collected for immigration inspection 

services and preclearance activities. 

Sec. 819. Application to new and existing preclearance operations. 

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. Report on certain U.S. Customs and Border Protection agreements. 

Sec. 908. Charter flights. 

Sec. 909. United States-Israel trade and commercial enhancement. 

Sec. 910. Elimination of consumptive demand exception to prohibition on importation of goods made with convict labor, forced labor, or indentured labor; 

report. 

Sec. 911. Voluntary reliquidations by U.S. Customs and Border Protection. 

Sec. 912. Tariff classification of recreational performance outerwear. 

Sec. 913. Modifications to duty treatment of protective active footwear. 

Sec. 914. Amendments to Bipartisan Congressional Trade Priorities and Accountability Act of 2015. 

Sec. 915. Trade preferences for Nepal. 

Sec. 916. Agreement by Asia-Pacific Economic Cooperation members to reduce rates 

of duty on certain environmental goods. 

Sec. 917. Amendment to Tariff Act of 1930 to require country of origin marking of 

certain castings. 


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Sec. 918. Inclusion of certain information in submission of nomination for appointment as Deputy United States Trade Representative. 

Sec. 919. Sense of Congress on the need for a miscellaneous tariff bill process. 

Sec. 920. Customs user fees. 

Sec. 921. Increase in penalty for failure to file return of tax. 

Sec. 922. Permanent moratorium on Internet access taxes and on multiple and discriminatory taxes on electronic commerce. 

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) COMMERCIAL OPERATIONS OF U.S. CUSTOMS AND BORDER

PROTECTION.—The term ‘‘commercial operations of U.S. Customs and Border Protection’’ includes— 

(A) administering any customs revenue function (as defined in section 415 of the Homeland Security Act of 2002 

(6 U.S.C. 215)); 

(B) coordinating efforts of the Department of Homeland 

Security with respect to trade facilitation and trade enforcement; 

(C) coordinating with the Director of U.S. Immigration 

and Customs Enforcement with respect to— 

(i) investigations relating to trade enforcement; 

and 

(ii) the development and implementation of the 

joint strategic plan required by section 105; 

(D) coordinating, on behalf of the Department of Homeland Security, efforts among Federal agencies to facilitate 

legitimate trade and to enforce the customs and trade laws 

of the United States, including representing the Department 

of Homeland Security in interagency fora addressing such 

efforts; 

(E) coordinating with customs authorities of foreign 

countries to facilitate legitimate international trade and enforce the customs and trade laws of the United States and 

the customs and trade laws of foreign countries; 

(F) collecting, assessing, and disseminating information as appropriate and in accordance with any law regarding cargo destined for the United States— 

(i) to ensure that such cargo complies with the customs and trade laws of the United States; and 

(ii) to facilitate the legitimate international trade 

of such cargo; 

(G) soliciting and considering on a regular basis input 

from private sector entities, including the Commercial Customs Operations Advisory Committee established by section 

109 and the Trade Support Network, with respect to, as appropriate— 

(i) the implementation of changes to the customs 

and trade laws of the United States; and 

(ii) the development, implementation, or revision of 

policies or regulations administered by U.S. Customs 

and Border Protection; and 


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(H) otherwise advising the Secretary of Homeland Security with respect to the development of policies associated 

with facilitating legitimate trade and enforcing the customs 

and trade laws of the United States. 

(3) 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 amended by section 802(a) of this Act. 

(4) 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 Act of June 18, 1934 (48 Stat. 998, chapter 

590; 19 U.S.C. 81a et seq.; commonly known as the ‘‘Foreign Trade Zones Act’’). 

(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. 2101 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. 1262, chapter 

566). 


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(X) The Bipartisan Congressional Trade Priorities and 

Accountability Act of 2015 (Public Law 114–26; 19 U.S.C. 

4201 et seq.). 

(Y) The Trade Preferences Extension Act of 2015 (Public Law 114–27; 129 Stat. 362). 

(Z) Any other provision of law implementing a trade 

agreement. 

(AA) Any other provision of law vesting customs revenue functions in the Secretary of the Treasury. 

(BB) 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 established under section 411(d) of the 

Tariff Act of 1930 (19 U.S.C. 1411(d)). 

(CC) Any other provision of customs or trade law administered by U.S. Customs and Border Protection or U.S. 

Immigration and Customs Enforcement. 

(5) 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. 

(6) TRADE ENFORCEMENT.—The term ‘‘trade enforcement’’ 

means the enforcement of the customs and trade laws of the 

United States. 

(7) 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— 


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(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 preclearance 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 established under section 411(d) of the Tariff Act of 

1930 (19 U.S.C. 1411(d)); 

(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 


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(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 such partnership programs; 

(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 partnership programs; 

and 

(9) summarizes the plans, targets, and goals of U.S. Customs and Border Protection with respect to such partnership 

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; 

(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; and 

(3) a description of trade enforcement activities with respect 

to the priority trade issues described in section 117, including— 

(A) methodologies used in such enforcement activities, 

such as targeting; 

(B) recommendations for improving such enforcement 

activities; and 


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(C) a description of the implementation of previous recommendations for improving such enforcement activities. 

(c) FORM OF REPORT.—The report required by subsection (a) 

shall be submitted in unclassified form, but may include a classified annex. 

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 

117. 

(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 or performance standards 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) ESTABLISHMENT.—The Commissioner and the Director shall 

establish and carry out on a fiscal year basis educational seminars 

to— 

(1) improve the ability of personnel of U.S. Customs and 

Border Protection to classify and appraise articles imported into 

the United States in accordance with the customs and trade 

laws of the United States; 


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(2) improve the trade enforcement efforts of personnel of 

U.S. Customs and Border Protection and personnel of U.S. Immigration and Customs Enforcement; and 

(3) otherwise improve the ability and effectiveness of personnel of U.S. Customs and Border Protection and personnel of 

U.S. Immigration and Customs Enforcement to facilitate legitimate international trade. 

(b) CONTENT.— 

(1) CLASSIFYING AND APPRAISING IMPORTED ARTICLES.—In 

carrying out subsection (a)(1), 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 carried out under this 

section to personnel of U.S. Customs and Border Protection 

and, as appropriate, to personnel of U.S. Immigration and Customs Enforcement 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)(2), 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 carried out under this section to personnel 

of U.S. Customs and Border Protection and, as appropriate, to 

personnel of U.S. Immigration and Customs Enforcement 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 carried out 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 carried out under this section. 


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(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 personnel of 

U.S. Customs and Border Protection 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 carried 

out under this section. 

(f) REPORTING.—Not later than September 30, 2016, and annually thereafter, the Commissioner and the Director shall submit to 

the appropriate congressional committees a report on the effectiveness of educational seminars carried out 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. 


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(b) CONTENTS.—The joint strategic plan required under this 

section shall be comprised of a comprehensive multiyear 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 117 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, including— 

(A) a description of the targeting methodologies used 

for enforcement activities with respect to each such issue; 

(B) recommendations for improving such enforcement 

activities; and 

(C) a description of the implementation of previous recommendations for improving such enforcement activities; 

(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 at educational seminars carried out 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 relevant Federal agencies, including— 

(i) the Department of the Treasury; 


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(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. 

(d) FORM OF PLAN.—The joint strategic plan required under 

this section shall be submitted in unclassified form, but may include a classified annex. 

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 Ac- count’’ 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.— (1) IN GENERAL.—Not later than December 31, 2016, 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 a report detailing— 

(A) 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 not later than September 30, 

2016, to conform with the admissibility criteria of agencies 

participating in the International Trade Data System identified pursuant to paragraph (4)(A)(iii) of section 411(d) of 

the Tariff Act of 1930 (19 U.S.C. 1411(d)), as added by section 107 of this Act; 

(B) 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, and the objectives and plans for implementing these remaining priorities; 


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(C) the components of the National Customs Automation Program specified in section 411(a)(2) of the Tariff Act 

of 1930 that have not been implemented; and 

(D) 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. 

(2) 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 paragraph (1), 

and— 

(A) evaluating the effectiveness of the implementation 

of the Automated Commercial Environment; and 

(B) detailing the percentage of trade processed in the 

Automated Commercial Environment every month since 

September 30, 2016. 

(3) REPEAL.—Section 311(b) of the Customs Border Security 

Act of 2002 (19 U.S.C. 2075 note) is amended by striking paragraph (3). 

(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 subparagraphs (A) through 

(D) of subsection (b)(1) 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 


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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 would compromise 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 with the appropriate congressional committees— 

(1) not later than 30 days before initiating negotiations to 

enter into any such arrangement or similar agreement; and 

(2) not later than 30 days before entering into any such arrangement or similar agreement. 

(b) NEGOTIATING OBJECTIVE.—It shall be a negotiating objective 

of the United States in any negotiation for a mutual recognition arrangement or similar agreement 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’’). 


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(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, 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. 


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(d) MEETINGS.—Notwithstanding section 10(f) of the Federal 

Advisory Committee Act (5 U.S.C. App.), 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. 

(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 under 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 117, 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; 


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(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 117, 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, in coordination with the Office of Trade established 

under section 4 of the Act of March 3, 1927 (44 Stat. 1381, chapter 

348; 19 U.S.C. 2071 et seq.), as added by section 802(h) of this Act, 

as appropriate, 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 117; and 

(B) for issuing, as appropriate, Trade Alerts described 

in subsection (b); 


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(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, 

the Automated Targeting System, the Automated Export 

System, the International Trade Data System established 

under section 411(d) of the Tariff Act of 1930 (19 U.S.C. 

1411(d)), 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; 

(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 with respect to merchandise relating to the priority trade issues described in section 117; and 

(4) notify, on a timely basis, each interested party in the 

private sector that has submitted an allegation of any violation 

of the customs and trade laws of the United States of any civil 

or criminal actions taken by U.S. Customs and Border Protection or any other Federal agency resulting from the allegation. 

(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 of 

the United States 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 

the director— 

(A) 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— 


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(A) compile an annual 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 calendar 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 of the United States 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 than June 30, 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 trackVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00020 Fmt 6659 Sfmt 6603 E:\HR\OC\HR376.XXX HR376

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ing 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. 


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(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 section, 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 IMPORTER RISK ASSESSMENT 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 program that directs U.S. Customs and Border Protection to 

adjust bond amounts for importers, including new importers and 

nonresident importers, based on risk assessments of such importers 

conducted by U.S. Customs and Border Protection, in order to protect the revenue of the Federal Government. 

(b) REQUIREMENTS.—The Commissioner shall ensure that, as 

part of the program established under subsection (a), U.S. Customs 

and Border Protection— 

(1) develops risk assessment guidelines for importers, including new importers and nonresident importers, to determine 

if and to what extent— 

(A) to adjust bond amounts of imported products of 

such importers; and 


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(B) to increase screening of imported products of such 

importers; 

(2) develops procedures to ensure increased oversight of imported products of new importers, including nonresident importers, relating to the enforcement of the priority trade issues 

described in section 117; 

(3) develops procedures to ensure increased oversight of imported products of new importers, including new nonresident 

importers, by Centers of Excellence and Expertise established 

under section 110; and 

(4) establishes a centralized database of new importers, including new nonresident importers, to ensure accuracy of information that is required to be provided by such importers to 

U.S. Customs and Border Protection. 

(c) EXCLUSION OF CERTAIN IMPORTERS.—This section shall not 

apply to an importer that 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 Security and Accountability for Every Port Act of 2006 (6 U.S.C. 961 et seq.). 

(d) REPORT.—Not later than the date that is 2 years after the 

date of the enactment of this Act, 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 detailing— 

(1) the risk assessment guidelines developed under subsection (b)(1); 

(2) the procedures developed under subsection (b)(2) to ensure increased oversight of imported products of new importers, 

including new nonresident importers, relating to the enforcement of priority trade issues described in section 117; 

(3) the procedures developed under subsection (b)(3) to ensure increased oversight of imported products of new importers, 

including new nonresident importers, by Centers of Excellence 

and Expertise established under section 110; and 

(4) the number of bonds adjusted based on the risk assessment guidelines developed under subsection (b)(1). 

(e) DEFINITIONS.—In this section: 

(1) IMPORTER.—The term ‘‘importer’’ means one of the parties qualifying as an importer of record under section 

484(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 1484(a)(2)(B)). 

(2) NONRESIDENT IMPORTER.—The term ‘‘nonresident importer’’ means an importer who is— 

(A) an individual who is not a citizen of the United 

States or an alien lawfully admitted for permanent residence in the United States; or 

(B) 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. 

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.— 


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‘‘(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 required 

under paragraph (1) shall, at a minimum— 

‘‘(A) identify the information that an importer, including a nonresident importer, is required to submit to a 

broker and that a broker is required to collect in order to 

verify the identity of the importer; 

‘‘(B) identify reasonable procedures that a broker is required to follow in order to verify the authenticity of information collected from an importer; and 

‘‘(C) require a broker to maintain records of the information collected by the broker to verify the identity of an 

importer. 

‘‘(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 shall be subject to revocation or suspension of a license or permit of the customs broker pursuant to the procedures set forth in subsection 

(d). This penalty shall be assessed in the same manner and 

under the same procedures as the monetary penalties provided 

for in subsection (d)(2)(A). 

‘‘(4) DEFINITIONS.—In this subsection: 

‘‘(A) IMPORTER.—The term ‘importer’ means one of the 

parties qualifying as an importer of record under section 

484(a)(2)(B). 

‘‘(B) NONRESIDENT IMPORTER.—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 the date 

that is 180 days after the date of the enactment of this Act, 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 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 


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(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. 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)(A) in the case of new priority trade issues, submits to 

the appropriate congressional committees a summary of proposals to establish such new priority trade issues not later than 

30 days after such new priority trade issues are to take effect; 

and 

(B) in the case of existing priority trade issues, submits to 

the appropriate congressional committees a summary of proposals to eliminate, consolidate, or otherwise modify such existing priority trade issues not later than 60 days before such 

changes are to take effect. 

SEC. 118. 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 Governmental 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. 


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(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 into the United 

States and the expeditious entry of such merchandise, including— 

(A) minimizing the duplication of efforts among Federal 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 


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(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; 


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(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: 


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‘‘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’’; 


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(2) in subparagraph (F), by striking the period at the end 

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 subsection (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 to be established 

and maintained by the Commissioner. The Commissioner shall 

publish notice of the establishment of and revisions to the list 

in the Federal Register. 

(3) REGULATIONS.—Not later than the date that is 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— 


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(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.— 


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(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 opportuniVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00032 Fmt 6659 Sfmt 6603 E:\HR\OC\HR376.XXX HR376

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ties 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 September 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. 


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(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. Customs 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 Trade established under section 4 of the Act of March 3, 1927 

(44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq.), as added 

by section 802(h) of this Act, 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. 


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(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 ‘‘Enforce and Protect Act of 2015’’. 

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 (19 U.S.C. 1671e); or 

(B) an antidumping duty order issued under section 

736 of the Tariff Act of 1930 (19 U.S.C. 1673e). 

(3) ELIGIBLE SMALL BUSINESS.— 

(A) IN GENERAL.—The term ‘‘eligible small business’’ 

means any business concern that, in the judgment of the 

Commissioner, 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, of 

merchandise 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. 


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(7) TRADE REMEDY LAWS.—The term ‘‘trade remedy laws’’ 

means title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et 

seq.). 

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 Trade established 

under section 4 of the Act of March 3, 1927 (44 Stat. 1381, 

chapter 348; 19 U.S.C. 2071 et seq.), as added by section 802(h) 

of this Act, a Trade Remedy Law Enforcement Division. 

(2) COMPOSITION.—The Trade Remedy Law Enforcement 

Division shall be composed of— 

(A) headquarters personnel led by a Director, who shall 

report to the Executive Assistant Commissioner of the Office 

of 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, including policies relating 

to the implementation of section 517 of the Tariff Act of 

1930, as added by section 421 of this Act; 

(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 Federal agencies regarding evasion; 


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(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 activities concerning evasion, including activities relating to investigations 

conducted under section 517 of the Tariff Act of 1930, as added 

by section 421 of this Act, which include— 

(A) receiving allegations of evasion from parties, including allegations described in section 517(b)(2) of the 

Tariff Act of 1930, as so added; 

(B) upon request by the party or parties that submitted 

such an allegation of evasion, providing 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, requesting from the party or parties that 

submitted such 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) notifying 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, providing technical assistance and 

advice to eligible small businesses to enable such businesses 

to prepare and submit such an allegation of evasion, except 

that the Director may deny technical 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 established under 

section 109, the Trade Support Network, and any other relevant parties and organizations, developing guidelines on 

the types and nature of information that may be provided 

in such an allegation of evasion; and 

(G) consulting regularly 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 


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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, the Automated Targeting System, the Automated Export System, the 

International Trade Data System established under section 

411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)), and the 

TECS (formerly known as the ‘‘Treasury Enforcement Communications System’’), 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) USE OF ADVERSE INFERENCE.— 

(A) IN GENERAL.—If the Secretary finds that a person 

described in subparagraph (B) has failed to cooperate by 

not acting to the best of the person’s ability to comply with 

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retary 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. 

(B) PERSON DESCRIBED.—A person described in this 

subparagraph is— 

(i) a person who filed an allegation with respect to 

covered merchandise; 

(ii) a person alleged to have entered covered merchandise into the customs territory of the United States 

through evasion; or 

(iii) a foreign producer or exporter of covered merchandise that is alleged to have entered into the customs territory of the United States through evasion. 

(C) APPLICATION.—An inference described in subparagraph (A) may be used under that subparagraph with respect to a person described in clause (ii) or (iii) of subparagraph (B) without regard to whether another person involved in the same transaction or transactions under examination has provided the information sought by the Secretary, such as import or export documentation. 

(2) ADVERSE INFERENCE DESCRIBED.—An adverse inference 

used under paragraph (1)(A) 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. 


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(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 calendar 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 INVESTIGATING CLAIMS OF EVASION OF 

ANTIDUMPING AND COUNTERVAILING DUTY ORDERS. 

(a) IN GENERAL.—The Tariff Act of 1930 is amended by inserting after section 516A (19 U.S.C. 1516a) the following: 


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‘‘SEC. 517. PROCEDURES FOR INVESTIGATING CLAIMS 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(1). 

‘‘(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) an antidumping duty order issued under section 

736; or 

‘‘(B) a countervailing duty order issued under section 

706. 

‘‘(4) ENTER; ENTRY.—The terms ‘enter’ and ‘entry’ refer to 

the entry, or withdrawal from warehouse for consumption, of 

merchandise into the customs territory of the United States. 

‘‘(5) 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 

Commissioner 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 Commissioner may determine, 

notwithstanding clause (i), that the person has entered 

such covered merchandise into the customs territory of 

the United States through evasion. 

‘‘(iii) ELECTRONIC REPETITION OF ERRORS.—For 

purposes of clause (ii), the mere nonintentional 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 Commissioner that a person has entered covered 

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clause (I) or (II) of clause (i) rather than through evasion shall not be construed to excuse that person from 

the payment of any duties applicable to the merchandise. 

‘‘(6) INTERESTED PARTY.— ‘‘(A) IN GENERAL.—The term ‘interested party’ means— 

‘‘(i) a foreign manufacturer, producer, or exporter, 

or the United States importer, of covered merchandise 

or a trade or business association a majority of the 

members of which are producers, exporters, or importers of such merchandise; 

‘‘(ii) a manufacturer, producer, or wholesaler in the 

United States of a domestic like product; 

‘‘(iii) a certified union or recognized union or group 

of workers that is representative of an industry engaged in the manufacture, production, or wholesale in 

the United States of a domestic like product; 

‘‘(iv) a trade or business association a majority of 

the members of which manufacture, produce, or wholesale a domestic like product in the United States; 

‘‘(v) an association a majority of the members of 

which is composed of interested parties described in 

clause (ii), (iii), or (iv) with respect to a domestic like 

product; and 

‘‘(vi) if the covered merchandise is a processed agricultural product, as defined in section 771(4)(E), a 

coalition or trade association that is representative of 

either— 

‘‘(I) processors; 

‘‘(II) processors and producers; or 

‘‘(III) processors and growers. 

‘‘(B) DOMESTIC LIKE PRODUCT.—For purposes of subparagraph (A), the term ‘domestic like product’ means a 

product that is like, or in the absence of like, most similar 

in characteristics and uses with, covered merchandise. 

‘‘(b) INVESTIGATIONS.— ‘‘(1) IN GENERAL.—Not later than 15 business days after receiving an allegation described in paragraph (2) or a referral 

described in paragraph (3), the Commissioner shall initiate an 

investigation if the Commissioner determines that the information provided in the allegation or the referral, as the case may 

be, reasonably suggests that covered merchandise has been entered into the customs territory of the United States through 

evasion. 

‘‘(2) ALLEGATION DESCRIBED.—An allegation described in 

this paragraph is an allegation that a person has entered covered merchandise into the customs territory of the United States 

through evasion that is— 

‘‘(A) filed with the Commissioner by an interested 

party; and 

‘‘(B) accompanied by information reasonably available 

to the party that filed the allegation. 

‘‘(3) REFERRAL DESCRIBED.—A referral described in this 

paragraph is information submitted to the Commissioner by 

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merce or the United States International Trade Commission, 

that reasonably suggests that a person has entered covered merchandise into the customs territory of the United States through 

evasion. 

‘‘(4) CONSIDERATION BY ADMINISTERING AUTHORITY.— ‘‘(A) IN GENERAL.—If the Commissioner receives an allegation under paragraph (2) and is unable to determine 

whether the merchandise at issue is covered merchandise, 

the Commissioner shall— 

‘‘(i) refer the matter to the administering authority 

to determine whether the merchandise is covered merchandise pursuant to the authority of the administering authority under title VII; and 

‘‘(ii) notify the party that filed the allegation, and 

any other interested party participating in the investigation, of the referral. 

‘‘(B) DETERMINATION; TRANSMISSION TO COMMIS- SIONER.—After receiving a referral under subparagraph 

(A)(i) with respect to merchandise, the administering authority shall determine whether the merchandise is covered 

merchandise and promptly transmit that determination to 

the Commissioner. 

‘‘(C) STAY OF DEADLINES.—The period required for any 

referral and determination under this paragraph shall not 

be counted in calculating any deadline under this section. 

‘‘(D) RULE OF CONSTRUCTION.—Nothing in this paragraph shall be construed to affect the authority of an interested party to commence an action in the United States 

Court of International Trade under section 516A(a)(2) with 

respect to a determination of the administering authority 

under this paragraph. 

‘‘(5) CONSOLIDATION OF ALLEGATIONS AND REFERRALS.— 

‘‘(A) IN GENERAL.—The Commissioner may consolidate 

multiple allegations described in paragraph (2) and referrals described in paragraph (3) into a single investigation 

if the Commissioner determines it is appropriate to do so. 

‘‘(B) EFFECT ON TIMING REQUIREMENTS.—If the Commissioner consolidates multiple allegations or referrals into 

a single investigation under subparagraph (A), the date on 

which the Commissioner receives the first such allegation 

or referral shall be used for purposes of the requirement 

under paragraph (1) with respect to the timing of the initiation of the investigation. 

‘‘(6) INFORMATION-SHARING TO PROTECT HEALTH AND SAFETY.—If, during the course of conducting an investigation under 

paragraph (1) with respect to covered merchandise, the Commissioner has reason to suspect that such covered merchandise 

may pose a health or safety risk to consumers, the Commissioner shall provide, as appropriate, information to the appropriate Federal agencies for purposes of mitigating the risk. 

‘‘(7) TECHNICAL ASSISTANCE AND ADVICE.— ‘‘(A) IN GENERAL.—Upon request, the Commissioner 

shall provide technical assistance and advice to eligible 

small businesses to enable such businesses to prepare and 

submit allegations described in paragraph (2), except that 


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the Commissioner may deny technical assistance if the 

Commissioner concludes that the allegation, if submitted, 

would not lead to the initiation of an investigation under 

this subsection or any other action to address the allegation. 

‘‘(B) ELIGIBLE SMALL BUSINESS DEFINED.— 

‘‘(i) IN GENERAL.—In this paragraph, the term ‘eligible small business’ means any business concern that 

the Commissioner determines, due to its small size, has 

neither adequate internal resources nor the financial 

ability to obtain qualified outside assistance in preparing and filing allegations described in paragraph 

(2). 

‘‘(ii) NON-REVIEWABILITY.—The determination of 

the Commissioner regarding whether a business concern is an eligible small business for purposes of this 

paragraph is not reviewable by any other agency or by 

any court. 

‘‘(c) DETERMINATIONS.— 

‘‘(1) DETERMINATION OF EVASION.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), not later than 300 calendar days after the date on 

which the Commissioner initiates an investigation under 

subsection (b) with respect to covered merchandise, the 

Commissioner shall make a determination, based on substantial evidence, with respect to whether such covered merchandise was entered into the customs territory of the 

United States through evasion. 

‘‘(B) ADDITIONAL TIME.—The Commissioner may extend 

the time to make a determination under subparagraph (A) 

by not more than 60 calendar days if the Commissioner determines that— 

‘‘(i) the investigation is extraordinarily complicated 

because of— 

‘‘(I) the number and complexity of the transactions to be investigated; 

‘‘(II) the novelty of the issues presented; or 

‘‘(III) the number of entities to be investigated; 

and 

‘‘(ii) additional time is necessary to make the determination under subparagraph (A). 

‘‘(2) AUTHORITY TO COLLECT AND VERIFY ADDITIONAL INFORMATION.—In making a determination under paragraph (1) with 

respect to covered merchandise, the Commissioner may collect 

such additional information as is necessary to make the determination through such methods as the Commissioner considers 

appropriate, including by— 

‘‘(A) issuing a questionnaire with respect to such covered merchandise to— 

‘‘(i) an interested party that filed an allegation 

under paragraph (2) of subsection (b) that resulted in 

the initiation of an investigation under paragraph (1) 

of that subsection with respect to such covered merchandise; 


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‘‘(ii) a person alleged to have entered such covered 

merchandise into the customs territory of the United 

States through 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; and 

‘‘(B) conducting verifications, including on-site 

verifications, of any relevant information. 

‘‘(3) ADVERSE INFERENCE.— ‘‘(A) IN GENERAL.—If the Commissioner finds that a 

party or person described in clause (i), (ii), or (iii) of paragraph (2)(A) has failed to cooperate by not acting to the best 

of the party or person’s ability to comply with a request for 

information, the Commissioner may, in making a determination under paragraph (1), use an inference that is adverse to the interests of that party or person in selecting 

from among the facts otherwise available to make the determination. 

‘‘(B) APPLICATION.—An inference described in subparagraph (A) may be used under that subparagraph with respect to a person described in clause (ii) or (iii) of paragraph (2)(A) without regard to whether another person involved in the same transaction or transactions under examination has provided the information sought by the Commissioner, such as import or export documentation. 

‘‘(C) ADVERSE INFERENCE DESCRIBED.—An adverse inference used under subparagraph (A) may include reliance 

on information derived from— 

‘‘(i) the allegation of evasion of the trade remedy 

laws, if any, submitted to U.S. Customs and Border 

Protection; 

‘‘(ii) a determination by the Commissioner in another investigation, proceeding, or other action regarding evasion of the unfair trade laws; or 

‘‘(iii) any other available information. 

‘‘(4) NOTIFICATION.—Not later than 5 business days after 

making a determination under paragraph (1) with respect to 

covered merchandise, the Commissioner— 

‘‘(A) shall provide to each interested party that filed an 

allegation under paragraph (2) of subsection (b) that resulted in the initiation of an investigation under paragraph 

(1) of that subsection with respect to such covered merchandise a notification of the determination and may, in addition, include an explanation of the basis for the determination; and 

‘‘(B) may provide to importers, in such manner as the 

Commissioner determines appropriate, information discovered in the investigation that the Commissioner 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. 

‘‘(d) EFFECT OF DETERMINATIONS.— 

‘‘(1) IN GENERAL.—If the Commissioner makes a determination under subsection (c) that covered merchandise was entered 


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into the customs territory of the United States through evasion, 

the Commissioner shall— 

‘‘(A)(i) suspend the liquidation of unliquidated entries 

of such covered merchandise that are subject to the determination and that enter on or after the date of the initiation of the investigation under subsection (b) with respect 

to such covered merchandise and on or before the date of 

the determination; or 

‘‘(ii) if the Commissioner has already suspended the 

liquidation of such entries pursuant to subsection (e)(1), 

continue to suspend the liquidation of such entries; 

‘‘(B) pursuant to the Commissioner’s authority under 

section 504(b)— 

‘‘(i) extend the period for liquidating unliquidated 

entries of such covered merchandise that are subject to 

the determination and that entered before the date of 

the initiation of the investigation; or 

‘‘(ii) if the Commissioner has already extended the 

period for liquidating such entries pursuant to subsection (e)(1), continue to extend the period for liquidating such entries; 

‘‘(C) notify the administering authority of the determination and request that the administering authority— 

‘‘(i) identify the applicable antidumping or countervailing duty assessment rates for entries described in 

subparagraphs (A) and (B); or 

‘‘(ii) if no such assessment rate for such an entry 

is available at the time, identify the applicable cash deposit rate to be applied to the entry, with the applicable 

antidumping or countervailing duty assessment rate to 

be provided as soon as that rate becomes available; 

‘‘(D) require the posting of cash deposits and assess duties on entries described in subparagraphs (A) and (B) in 

accordance with the instructions received from the administering authority under paragraph (2); and 

‘‘(E) take such additional enforcement measures as the 

Commissioner determines appropriate, such as— 

‘‘(i) initiating proceedings under section 592 or 

596; 

‘‘(ii) implementing, in consultation with the relevant Federal agencies, rule sets or modifications to 

rule sets for identifying, particularly through the Automated Targeting System and the Automated Commercial Environment authorized under section 13031(f)(4) 

of the Consolidated Omnibus Budget Reconciliation 

Act of 1985 (19 U.S.C. 58c(f)(4)), importers, other parties, and merchandise that may be associated with evasion; 

‘‘(iii) requiring, with respect to merchandise for 

which the importer has repeatedly provided incomplete 

or erroneous entry summary information in connection 

with determinations of evasion, the importer to deposit 

estimated duties at the time of entry; and 


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‘‘(iv) referring the record in whole or in part to 

U.S. Immigration and Customs Enforcement for civil 

or criminal investigation. 

‘‘(2) COOPERATION OF ADMINISTERING AUTHORITY.— ‘‘(A) IN GENERAL.—Upon receiving a notification from 

the Commissioner under paragraph (1)(C), the administering authority shall promptly provide to the Commissioner the applicable cash deposit rates and antidumping 

or countervailing duty assessment rates and any necessary 

liquidation instructions. 

‘‘(B) SPECIAL RULE FOR CASES IN WHICH THE PRODUCER

OR EXPORTER IS UNKNOWN.—If the Commissioner and the 

administering authority are unable to determine the producer or exporter of the merchandise with respect to which 

a notification is made under paragraph (1)(C), the administering authority shall identify, as the applicable cash deposit rate or antidumping or countervailing duty assessment rate, the cash deposit or duty (as the case may be) in 

the highest amount applicable to any producer or exporter, 

including the ‘all-others’ rate of the merchandise subject to 

an antidumping order or countervailing duty order under 

section 736 or 706, respectively, or a finding issued under 

the Antidumping Act, 1921, or any administrative review 

conducted under section 751. 

‘‘(e) INTERIM MEASURES.—Not later than 90 calendar days after 

initiating an investigation under subsection (b) with respect to covered merchandise, the Commissioner shall decide based on the investigation if there is a reasonable suspicion that such covered merchandise was entered into the customs territory of the United States 

through evasion and, if the Commissioner decides there is such a 

reasonable suspicion, the Commissioner shall— 

‘‘(1) suspend the liquidation of each unliquidated entry of 

such covered merchandise that entered on or after the date of 

the initiation of the investigation; 

‘‘(2) pursuant to the Commissioner’s authority under section 

504(b), extend the period for liquidating each unliquidated 

entry of such covered merchandise that entered before the date 

of the initiation of the investigation; and 

‘‘(3) pursuant to the Commissioner’s authority under section 

623, take such additional measures as the Commissioner determines necessary to protect the revenue of the United States, including requiring a single transaction bond or additional security or the posting of a cash deposit with respect to such covered 

merchandise. 

‘‘(f) ADMINISTRATIVE REVIEW.— 

‘‘(1) IN GENERAL.—Not later than 30 business days after the 

Commissioner makes a determination under subsection (c) with 

respect to whether covered merchandise was entered into the 

customs territory of the United States through evasion, a person 

determined to have entered such covered merchandise through 

evasion or an interested party that filed an allegation under 

paragraph (2) of subsection (b) that resulted in the initiation of 

an investigation under paragraph (1) of that subsection with respect to such covered merchandise may file an appeal with the 

Commissioner for de novo review of the determination. 


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‘‘(2) TIMELINE FOR REVIEW.—Not later than 60 business 

days after an appeal of a determination is filed under paragraph (1), the Commissioner shall complete the review of the determination. 

‘‘(g) JUDICIAL REVIEW.— 

‘‘(1) IN GENERAL.—Not later than 30 business days after the 

Commissioner completes a review under subsection (f) of a determination under subsection (c) with respect to whether covered merchandise was entered into the customs territory of the 

United States through evasion, a person determined to have entered such covered merchandise through evasion or an interested party that filed an allegation under paragraph (2) of subsection (b) that resulted in the initiation of an investigation 

under paragraph (1) of that subsection with respect to such covered merchandise may seek judicial review of the determination 

under subsection (c) and the review under subsection (f) in the 

United States Court of International Trade to determine whether the determination and review is conducted in accordance 

with subsections (c) and (f). 

‘‘(2) STANDARD OF REVIEW.—In determining whether a determination under subsection (c) or review under subsection (f) 

is conducted in accordance with those subsections, the United 

States Court of International Trade shall examine— 

‘‘(A) whether the Commissioner fully complied with all 

procedures under subsections (c) and (f); and 

‘‘(B) whether any determination, finding, or conclusion 

is arbitrary, capricious, an abuse of discretion, or otherwise 

not in accordance with law. 

‘‘(3) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall affect the availability of judicial review to an interested 

party under any other provision of law. 

‘‘(h) RULE OF CONSTRUCTION WITH RESPECT TO OTHER CIVIL

AND CRIMINAL PROCEEDINGS AND INVESTIGATIONS.—No determination under subsection (c), review under subsection (f), or action 

taken by the Commissioner pursuant to this section shall preclude 

any individual or entity from proceeding, or otherwise affect or limit 

the authority of any individual or entity to proceed, with any civil, 

criminal, or administrative investigation or proceeding pursuant to 

any other provision of Federal or State law, including sections 592 

and 596.’’. 

(b) CONFORMING AMENDMENT.—Section 1581(c) of title 28, 

United States Code, is amended by inserting ‘‘or 517’’ after ‘‘516A’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall take effect on the date that is 180 days after the date of the 

enactment of this Act. 

(d) REGULATIONS.—Not later than the date that is 180 days 

after the date of the enactment of this Act, the Secretary shall prescribe such regulations as may be necessary to implement the 

amendments made by this section. 

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— 


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(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 AND INVESTIGATION OF 

EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY 

ORDERS. 

(a) IN GENERAL.—Not later than January 15 of each calendar 

year that begins on or after the date that is 270 days after the date 

of the enactment of this Act, the Commissioner, in consultation with 

the Secretary of Commerce and the Director of U.S. Immigration 

and Customs Enforcement, 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 efforts being taken to prevent and investigate the entry of covered merchandise into the customs territory of the United States through 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 investigate the entry of covered merchandise into the customs territory of the United 

States through evasion; 

(B) the number of allegations of evasion received, including allegations received under subsection (b) of section 

517 of the Tariff Act of 1930, as added by section 421 of 

this Act, and the number of such allegations resulting in 

investigations by U.S. Customs and Border Protection or 

any other Federal agency; 

(C) a summary of investigations initiated, including investigations initiated under subsection (b) of such section 

517, including— 

(i) the number and nature of the investigations initiated, conducted, or completed; and 

(ii) the resolution of each completed investigation; 

(D) the amount of additional duties that were determined to be owed as a result of such investigations, the 

amount of such duties that were collected, and, for any 

such duties not collected, a description of the reasons those 

duties were not collected; 

(E) with respect to each such investigation that led to 

the imposition of a penalty, the amount of the penalty; 


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(F) an identification of the countries of origin of covered merchandise determined under subsection (c) of such 

section 517 to be entered into the customs territory of the 

United States through evasion; 

(G) the amount of antidumping and countervailing duties collected as a result of any investigations or other actions by U.S. Customs and Border Protection or any other 

Federal agency; 

(H) 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 

and investigate evasion, including any assessments conducted regarding the allocation of such personnel and resources; and 

(I) a description of training conducted to increase expertise and effectiveness in the prevention and investigation 

of evasion; and 

(2) a description of processes and procedures of U.S. Customs and Border Protection to prevent and investigate 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 those guidelines, 

policies, and practices; 

(C) an identification of any changes since the last report required by this section, if any, that have materially 

improved or reduced the effectiveness of U.S. Customs and 

Border Protection in preventing and investigating 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 of not 

collecting those duties; 

(E) a description of 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 investigate evasion; and 

(F) an identification of any recommended policy 

changes for other Federal agencies or legislative changes to 

improve the effectiveness of U.S. Customs and Border Protection in preventing and investigating evasion. 

(c) PUBLIC SUMMARY.—The Commissioner shall make available 

to the public a summary of the report required by subsection (a) that 

includes, at a minimum— 

(1) a description of the type of merchandise with respect to 

which investigations were initiated under subsection (b) of section 517 of the Tariff Act of 1930, as added by section 421 of 

this Act; 

(2) the amount of additional duties determined to be owed 

as a result of such investigations and the amount of such duties 

that were collected; 


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(3) an identification of the countries of origin of covered 

merchandise determined under subsection (c) of such section 

517 to be entered into the customs territory of the United States 

through evasion; and 

(4) a description of the types of measures used by U.S. Customs and Border Protection to prevent and investigate 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) by inserting after clause (iii), as redesignated by paragraph (2) of this section, the following: 

‘‘(iv) DETERMINATIONS BASED ON BONA FIDE

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—SMALL BUSINESS TRADE ISSUES AND STATE 

TRADE COORDINATION 

SECTION 501. SHORT TITLE. 

This title may be cited as the ‘‘Small Business Trade Enhancement Act of 2015’’ or the ‘‘State Trade Coordination Act’’. 

SEC. 502. OUTREACH AND INPUT FROM SMALL BUSINESSES TO TRADE 

PROMOTION AUTHORITY. 

Section 203 of Public Law 94–305 (15 U.S.C. 634c) is amended— 

(1) in the matter preceding paragraph (1), by striking ‘‘The 

Office of Advocacy’’ and inserting the following: 

‘‘(a) IN GENERAL.—The Office of Advocacy’’; and 

(2) by adding at the end the following: 


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‘‘(b) OUTREACH AND INPUT FROM SMALL BUSINESSES ON TRADE

PROMOTION AUTHORITY.— ‘‘(1) DEFINITIONS.—In this subsection— 

‘‘(A) the term ‘agency’ has the meaning given the term 

in section 551 of title 5, United States Code; 

‘‘(B) the term ‘Chief Counsel for Advocacy’ means the 

Chief Counsel for Advocacy of the Small Business Administration; 

‘‘(C) the term ‘covered trade agreement’ means a trade 

agreement being negotiated pursuant to section 103(b) of 

the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (Public Law 114–26; 19 U.S.C. 4202(b)); 

and 

‘‘(D) the term ‘Working Group’ means the Interagency 

Working Group convened under paragraph (2)(A). 

‘‘(2) WORKING GROUP.— 

‘‘(A) IN GENERAL.—Not later than 30 days after the 

date on which the President submits the notification required under section 105(a) of the Bipartisan Congressional 

Trade Priorities and Accountability Act of 2015 (Public 

Law 114–26; 19 U.S.C. 4204(a)), the Chief Counsel for Advocacy shall convene an Interagency Working Group, which 

shall consist of an employee from each of the following 

agencies, as selected by the head of the agency or an official 

delegated by the head of the agency: 

‘‘(i) The Office of the United States Trade Representative. 

‘‘(ii) The Department of Commerce. 

‘‘(iii) The Department of Agriculture. 

‘‘(iv) Any other agency that the Chief Counsel for 

Advocacy, in consultation with the United States Trade 

Representative, determines to be relevant with respect 

to the subject of the covered trade agreement. 

‘‘(B) VIEWS OF SMALL BUSINESSES.—Not later than 30 

days after the date on which the Chief Counsel for Advocacy convenes the Working Group under subparagraph (A), 

the Chief Counsel for Advocacy shall identify a diverse 

group of small businesses, representatives of small businesses, or a combination thereof, to provide to the Working 

Group the views of small businesses in the manufacturing, 

services, and agriculture industries on the potential economic effects of the covered trade agreement. 

‘‘(3) REPORT.— 

‘‘(A) IN GENERAL.—Not later than 180 days after the 

date on which the Chief Counsel for Advocacy convenes the 

Working Group under paragraph (2)(A), the Chief Counsel 

for Advocacy shall submit to the Committee on Small Business and Entrepreneurship and the Committee on Finance 

of the Senate and the Committee on Small Business and 

the Committee on Ways and Means of the House of Representatives a report on the economic impacts of the covered 

trade agreement on small businesses, which shall— 

‘‘(i) identify the most important priorities, opportunities, and challenges to various industries from the 

covered trade agreement; 


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‘‘(ii) assess the impact for new small businesses to 

start exporting, or increase their exports, to markets in 

countries that are parties to the covered trade agreement; 

‘‘(iii) analyze the competitive position of industries 

likely to be significantly affected by the covered trade 

agreement; 

‘‘(iv) identify— 

‘‘(I) any State-owned enterprises in each country participating in negotiations for the covered 

trade agreement that could pose a threat to small 

businesses; and 

‘‘(II) any steps to take to create a level playing 

field for those small businesses; 

‘‘(v) identify any rule of an agency that should be 

modified to become compliant with the covered trade 

agreement; and 

‘‘(vi) include an overview of the methodology used 

to develop the report, including the number of small 

business participants by industry, how those small 

businesses were selected, and any other factors that the 

Chief Counsel for Advocacy may determine appropriate. 

‘‘(B) DELAYED SUBMISSION.—To ensure that negotiations for the covered trade agreement are not disrupted, the 

President may require that the Chief Counsel for Advocacy 

delay submission of the report under subparagraph (A) 

until after the negotiations for the covered trade agreement 

are concluded, provided that the delay allows the Chief 

Counsel for Advocacy to submit the report to Congress not 

later than 45 days before the Senate or the House of Representatives acts to approve or disapprove the covered trade 

agreement. 

‘‘(C) AVOIDANCE OF DUPLICATION.—The Chief Counsel 

for Advocacy shall, to the extent practicable, coordinate the 

submission of the report under this paragraph with the 

United States International Trade Commission, the United 

States Trade Representative, other agencies, and trade advisory committees to avoid unnecessary duplication of reporting requirements.’’. 

SEC. 503. STATE TRADE EXPANSION PROGRAM. 

Section 22 of the Small Business Act (15 U.S.C. 649) is amended— 

(1) by redesignating subsection (l) as subsection (m); and 

(2) by inserting after subsection (k) the following: 

‘‘(l) STATE TRADE EXPANSION PROGRAM.— 

‘‘(1) DEFINITIONS.—In this subsection— 

‘‘(A) the term ‘eligible small business concern’ means a 

business concern that— 

‘‘(i) is organized or incorporated in the United 

States; 

‘‘(ii) is operating in the United States; 

‘‘(iii) meets— 

‘‘(I) the applicable industry-based small business size standard established under section 3; or 


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‘‘(II) the alternate size standard applicable to 

the program under section 7(a) of this Act and the 

loan programs under title V of the Small Business 

Investment Act of 1958 (15 U.S.C. 695 et seq.); 

‘‘(iv) has been in business for not less than 1 year, 

as of the date on which assistance using a grant under 

this subsection commences; and 

‘‘(v) has access to sufficient resources to bear the 

costs associated with trade, including the costs of packing, shipping, freight forwarding, and customs brokers; 

‘‘(B) the term ‘program’ means the State Trade Expansion Program established under paragraph (2); 

‘‘(C) the term ‘rural small business concern’ means an 

eligible small business concern located in a rural area, as 

that term is defined in section 1393(a)(2) of the Internal 

Revenue Code of 1986; 

‘‘(D) the term ‘socially and economically disadvantaged 

small business concern’ has the meaning given that term in 

section 8(a)(4)(A) of the Small Business Act (15 U.S.C. 

637(a)(4)(A)); and 

‘‘(E) the term ‘State’ means each of the several States, 

the District of Columbia, the Commonwealth of Puerto 

Rico, the Virgin Islands, Guam, the Commonwealth of the 

Northern Mariana Islands, and American Samoa. 

‘‘(2) ESTABLISHMENT OF PROGRAM.—The Associate Administrator shall establish a trade expansion program, to be known 

as the ‘State Trade Expansion Program’, to make grants to 

States to carry out programs that assist eligible small business 

concerns in— 

‘‘(A) participation in foreign trade missions; 

‘‘(B) a subscription to services provided by the Department of Commerce; 

‘‘(C) the payment of website fees; 

‘‘(D) the design of marketing media; 

‘‘(E) a trade show exhibition; 

‘‘(F) participation in training workshops; 

‘‘(G) a reverse trade mission; 

‘‘(H) procurement of consultancy services (after consultation with the Department of Commerce to avoid duplication); or 

‘‘(I) any other initiative determined appropriate by the 

Associate Administrator. 

‘‘(3) GRANTS.— 

‘‘(A) JOINT REVIEW.—In carrying out the program, the 

Associate Administrator may make a grant to a State to increase the number of eligible small business concerns in the 

State exploring significant new trade opportunities. 

‘‘(B) CONSIDERATIONS.—In making grants under this 

subsection, the Associate Administrator may give priority to 

an application by a State that proposes a program that— 

‘‘(i) focuses on eligible small business concerns as 

part of a trade expansion program; 

‘‘(ii) demonstrates intent to promote trade expansion by— 


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‘‘(I) socially and economically disadvantaged 

small business concerns; 

‘‘(II) small business concerns owned or controlled by women; and 

‘‘(III) rural small business concerns; 

‘‘(iii) promotes trade facilitation from a State that 

is not 1 of the 10 States with the highest percentage of 

eligible small business concerns that are engaged in 

international trade, based upon the most recent data 

from the Department of Commerce; and 

‘‘(iv) includes— 

‘‘(I) activities which have resulted in the highest return on investment based on the most recent 

year; and 

‘‘(II) the adoption of shared best practices included in the annual report of the Administration. 

‘‘(C) LIMITATIONS.— 

‘‘(i) SINGLE APPLICATION.—A State may not submit 

more than 1 application for a grant under the program 

in any 1 fiscal year. 

‘‘(ii) PROPORTION OF AMOUNTS.—The total value of 

grants made under the program during a fiscal year to 

the 10 States with the highest percentage of eligible 

small business concerns, based upon the most recent 

data available from the Department of Commerce, 

shall be not more than 40 percent of the amounts appropriated for the program for that fiscal year. 

‘‘(iii) DURATION.—The Associate Administrator 

shall award a grant under this program for a period 

of not more than 2 years. 

‘‘(D) APPLICATION.— 

‘‘(i) IN GENERAL.—A State desiring a grant under 

the program shall submit an application at such time, 

in such manner, and accompanied by such information 

as the Associate Administrator may establish. 

‘‘(ii) CONSULTATION TO REDUCE DUPLICATION.—A 

State desiring a grant under the program shall— 

‘‘(I) before submitting an application under 

clause (i), consult with applicable trade agencies of 

the Federal Government on the scope and mission 

of the activities the State proposes to carry out 

using the grant, to ensure proper coordination and 

reduce duplication in services; and 

‘‘(II) document the consultation conducted 

under subclause (I) in the application submitted 

under clause (i). 

‘‘(4) COMPETITIVE BASIS.—The Associate Administrator 

shall award grants under the program on a competitive basis. 

‘‘(5) FEDERAL SHARE.—The Federal share of the cost of a 

trade expansion program carried out using a grant under the 

program shall be— 

‘‘(A) for a State that has a high trade volume, as determined by the Associate Administrator, not more than 65 

percent; and 


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‘‘(B) for a State that does not have a high trade volume, as determined by the Associate Administrator, not 

more than 75 percent. 

‘‘(6) NON-FEDERAL SHARE.—The non-Federal share of the 

cost of a trade expansion program carried out using a grant 

under the program shall be comprised of not less than 50 percent cash and not more than 50 percent of indirect costs and 

in-kind contributions, except that no such costs or contributions 

may be derived from funds from any other Federal program. 

‘‘(7) REPORTS.— ‘‘(A) INITIAL REPORT.—Not later than 120 days after 

the date of enactment of this subsection, the Associate Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a 

report, which shall include— 

‘‘(i) a description of the structure of and procedures 

for the program; 

‘‘(ii) a management plan for the program; and 

‘‘(iii) a description of the merit-based review process to be used in the program. 

‘‘(B) ANNUAL REPORTS.— ‘‘(i) IN GENERAL.—The Associate Administrator 

shall publish on the website of the Administration an 

annual report regarding the program, which shall include— 

‘‘(I) the number and amount of grants made 

under the program during the preceding year; 

‘‘(II) a list of the States receiving a grant 

under the program during the preceding year, including the activities being performed with each 

grant; 

‘‘(III) the effect of each grant on the eligible 

small business concerns in the State receiving the 

grant; 

‘‘(IV) the total return on investment for each 

State; and 

‘‘(V) a description of best practices by States 

that showed high returns on investment and significant progress in helping more eligible small 

business concerns. 

‘‘(ii) NOTICE TO CONGRESS.—On the date on which 

the Associate Administrator publishes a report under 

clause (i), the Associate Administrator shall notify the 

Committee on Small Business and Entrepreneurship of 

the Senate and the Committee on Small Business of the 

House of Representatives that the report has been published. 

‘‘(8) REVIEWS BY INSPECTOR GENERAL.— ‘‘(A) IN GENERAL.—The Inspector General of the Administration shall conduct a review of— 

‘‘(i) the extent to which recipients of grants under 

the program are measuring the performance of the activities being conducted and the results of the measurements; and 


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‘‘(ii) the overall management and effectiveness of 

the program. 

‘‘(B) REPORTS.— 

‘‘(i) PILOT PROGRAM.—Not later than 6 months 

after the date of enactment of this subsection, the Inspector General of the Administration shall submit to 

the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report regarding 

the use of amounts made available under the State 

Trade and Export Promotion Grant Program under 

section 1207 of the Small Business Jobs Act of 2010 

(15 U.S.C. 649b note). 

‘‘(ii) NEW STEP PROGRAM.—Not later than 18 

months after the date on which the first grant is 

awarded under this subsection, the Inspector General 

of the Administration shall submit to the Committee on 

Small Business and Entrepreneurship of the Senate 

and the Committee on Small Business of the House of 

Representatives a report regarding the review conducted under subparagraph (A). 

‘‘(9) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out the program $30,000,000 

for each of fiscal years 2016 through 2020.’’. 

SEC. 504. STATE AND FEDERAL EXPORT PROMOTION COORDINATION. 

(a) STATE AND FEDERAL EXPORT PROMOTION COORDINATION

WORKING GROUP.—Subtitle C of the Export Enhancement Act of 

1988 (15 U.S.C. 4721 et seq.) is amended by inserting after section 

2313 the following: 

‘‘SEC. 2313A. STATE AND FEDERAL EXPORT PROMOTION COORDINATION WORKING GROUP. 

‘‘(a) STATEMENT OF POLICY.—It is the policy of the United 

States to promote exports as an opportunity for small businesses. In 

exercising their powers and functions in order to advance that policy, all Federal agencies shall work constructively with State and 

local agencies engaged in export promotion and export financing activities. 

‘‘(b) ESTABLISHMENT.—The President shall establish a State 

and Federal Export Promotion Coordination Working Group (in this 

section referred to as the ‘Working Group’) as a subcommittee of the 

Trade Promotion Coordination Committee (in this section referred 

to as the ‘TPCC’). 

‘‘(c) PURPOSES.—The purposes of the Working Group are— 

‘‘(1) to identify issues related to the coordination of Federal 

resources relating to export promotion and export financing 

with such resources provided by State and local governments; 

‘‘(2) to identify ways to improve coordination with respect 

to export promotion and export financing activities through the 

strategic plan developed under section 2312(c); 

‘‘(3) to develop a strategy for improving coordination of 

Federal and State resources relating to export promotion and 

export financing, including methods to eliminate duplication of 

effort and overlapping functions; and 


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‘‘(4) to develop a strategic plan for considering and implementing the suggestions of the Working Group as part of the 

strategic plan developed under section 2312(c). 

‘‘(d) MEMBERSHIP.—The Secretary of Commerce shall select the 

members of the Working Group, who shall include— 

‘‘(1) representatives from State trade agencies representing 

regionally diverse areas; and 

‘‘(2) representatives of the departments and agencies that 

are represented on the TPCC, who are designated by the heads 

of their respective departments or agencies to advise the head 

on ways of promoting the exportation of United States goods 

and services.’’. 

(b) REPORT ON IMPROVEMENTS TO EXPORT.GOV AS A SINGLE

WINDOW FOR EXPORT INFORMATION.— (1) IN GENERAL.—Not later than 180 days after the date of 

enactment of this Act, the Associate Administrator for International Trade of the Small Business Administration shall, 

after consultation with the entities specified in paragraph (2), 

submit to the appropriate congressional committees a report 

that includes the recommendations of the Associate Administrator for improving the experience provided by the Internet 

website Export.gov (or a successor website) as— 

(A) a comprehensive resource for information about exporting articles from the United States; and 

(B) a single website for exporters to submit all information required by the Federal Government with respect to the 

exportation of articles from the United States. 

(2) ENTITIES SPECIFIED.—The entities specified in this 

paragraph are— 

(A) small business concerns (as defined in section 3 of 

the Small Business Act (15 U.S.C. 632)) that are exporters; 

and 

(B) the President’s Export Council, State agencies with 

responsibility for export promotion or export financing, district export councils, and trade associations. 

(3) APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.— In this subsection, the term ‘‘appropriate congressional committees’’ means— 

(A) the Committee on Small Business and Entrepreneurship and the Committee on Banking, Housing, and 

Urban Affairs of the Senate; and 

(B) the Committee on Small Business and the Committee on Foreign Affairs of the House of Representatives. 

(c) AVAILABILITY OF STATE RESOURCES GUIDES ON EXPORT.GOV.—The Secretary of Commerce shall make available on the 

Internet website Export.gov (or a successor website) information on 

the resources relating to export promotion and export financing 

available in each State— 

(1) organized by State; and 

(2) including information on State agencies with responsibility for export promotion or export financing and district export councils and trade associations located in the State. 

SEC. 505. STATE TRADE COORDINATION. 

(a) MEMBERSHIP OF REPRESENTATIVES OF STATE TRADE PROMOTION AGENCIES ON TRADE PROMOTION COORDINATING COMVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00058 Fmt 6659 Sfmt 6603 E:\HR\OC\HR376.XXX HR376

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MITTEE.—Section 2312 of the Export Enhancement Act of 1988 (15 

U.S.C. 4727) is amended— 

(1) in subsection (d)— 

(A) by redesignating paragraph (2) as paragraph (3); 

and 

(B) by inserting after paragraph (1) the following: 

‘‘(2) REPRESENTATIVES FROM STATE TRADE PROMOTION

AGENCIES.—The TPCC shall also include 1 or more members 

appointed by the President who are representatives of State 

trade promotion agencies.’’; and 

(2) in subsection (e), in the first sentence, by inserting 

‘‘(other than members described in subsection (d)(2))’’ after 

‘‘Members of the TPCC’’. 

(b) FEDERAL AND STATE EXPORT PROMOTION COORDINATION

PLAN.— 

(1) IN GENERAL.—The Secretary of Commerce, acting 

through the Trade Promotion Coordinating Committee and in 

coordination with representatives of State trade promotion 

agencies, shall develop a comprehensive plan to integrate the resources and strategies of State trade promotion agencies into 

the overall Federal trade promotion program. 

(2) MATTERS TO BE INCLUDED.—The plan required under 

paragraph (1) shall include the following: 

(A) A description of the role of State trade promotion 

agencies in assisting exporters. 

(B) An outline of the role of State trade promotion 

agencies and how it is different from Federal agencies located within or providing services within the State. 

(C) A plan on how to utilize State trade promotion 

agencies in the Federal trade promotion program. 

(D) An explanation of how Federal and State agencies 

will share information and resources. 

(E) A description of how Federal and State agencies 

will coordinate education and trade events in the United 

States and abroad. 

(F) A description of the efforts to increase efficiency and 

reduce duplication. 

(G) A clear identification of where businesses can receive appropriate international trade information under the 

plan. 

(3) DEADLINE.—The plan required under paragraph (1) 

shall be finalized and submitted to Congress not later than 12 

months after the date of the enactment of this Act. 

(c) ANNUAL FEDERAL-STATE EXPORT STRATEGY.— 

(1) IN GENERAL.—The Secretary of Commerce, acting 

through the head of the United States Foreign and Commercial 

Service, shall develop an annual Federal-State export strategy 

for each State that submits to the Secretary of Commerce its export strategy for the upcoming calendar year. In developing an 

annual Federal-State export strategy under this paragraph, the 

Secretary of Commerce shall take into account the Federal and 

State export promotion coordination plan developed under subsection (b). 


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(2) MATTERS TO BE INCLUDED.—The Federal-State export 

strategy required under paragraph (1) shall include the following: 

(A) The State’s export strategy and economic goals. 

(B) The State’s key sectors and industries of focus. 

(C) Possible foreign and domestic trade events. 

(D) Efforts to increase efficiencies and reduce duplication. 

(3) REPORT.—The Federal-State export strategy required 

under paragraph (1) shall be submitted to the Trade Promotion 

Coordinating Committee not later than February 1, 2017, and 

February 1 of each year thereafter. 

(d) COORDINATED METRICS AND INFORMATION SHARING.— 

(1) IN GENERAL.—The Secretary of Commerce, in coordination with representatives of State trade promotion agencies, 

shall develop a framework to share export success information, 

and develop a coordinated set of reporting metrics. 

(2) REPORT TO CONGRESS.—Not later than one year after 

the date of the enactment of this Act, the Secretary of Commerce 

shall submit to Congress a report that contains the framework 

and reporting metrics required under paragraph (1). 

(e) ANNUAL SURVEY AND ANALYSIS AND REPORT UNDER NATIONAL EXPORT STRATEGY.—Section 2312 of the Export Enhancement Act of 1988 (15 U.S.C. 4727) is amended— 

(1) in subsection (c)— 

(A) in paragraph (5), by striking ‘‘and’’ at the end; 

(B) in paragraph (6), by striking the period at the end 

and inserting ‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(7) in coordination with State trade promotion agencies, 

include a survey and analysis regarding the overall effectiveness of Federal-State coordination and export promotion goals 

on an annual basis, to further include best practices, recommendations to better assist small businesses, and other relevant matters.’’; and 

(2) in subsection (f)(1), by inserting ‘‘(including implementation of the survey and analysis described in paragraph (7) of 

that subsection)’’ after ‘‘the implementation of such plan’’. 

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 

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tices 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 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 AC- TIONS 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 report to the Committee on 

Finance of the Senate and the Committee on Ways and 

Means of the House of Representatives 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 


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that report and, as relevant, any calendar year before that 

calendar year. 

‘‘(b) SEMIANNUAL 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 

semiannual 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 semiannual 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 semiannual 

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; 


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‘‘(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 semiannual 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 semiannual 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 the 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. 


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‘‘(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 Commission shall make available on a 


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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 the Trade Facilitation and Trade Enforcement Act of 2015, 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 the Trade Facilitation and 

Trade Enforcement Act of 2015, 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 the 

Trade Facilitation and Trade Enforcement Act of 2015.’’. 

(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.’’. 

SEC. 604. ESTABLISHMENT OF INTERAGENCY CENTER ON TRADE IMPLEMENTATION, MONITORING, AND ENFORCEMENT. 

(a) IN GENERAL.—Section 141 of the Trade Act of 1974 (19 

U.S.C. 2171) is amended by adding at the end the following: 

‘‘(h) INTERAGENCY CENTER ON TRADE IMPLEMENTATION, MONITORING, AND ENFORCEMENT.— 

‘‘(1) ESTABLISHMENT OF CENTER.—There is established in 

the Office of the United States Trade Representative an Interagency Center on Trade Implementation, Monitoring, and Enforcement (in this section referred to as the ‘Center’). 

‘‘(2) FUNCTIONS OF CENTER.—The Center shall support the 

activities of the United States Trade Representative in— 

‘‘(A) investigating potential disputes under the auspices 

of the World Trade Organization; 


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‘‘(B) investigating potential disputes pursuant to bilateral and regional trade agreements to which the United 

States is a party; 

‘‘(C) carrying out the functions of the United States 

Trade Representative under this section with respect to the 

monitoring and enforcement of trade agreements to which 

the United States is a party; and 

‘‘(D) monitoring measures taken by parties to implement provisions of trade agreements to which the United 

States is a party. 

‘‘(3) PERSONNEL.— 

‘‘(A) DIRECTOR.—The head of the Center shall be a Director, who shall be appointed by the United States Trade 

Representative. 

‘‘(B) ADDITIONAL EMPLOYEES.—A Federal agency may, 

in consultation with and with the approval of the United 

States Trade Representative, detail or assign one or more 

employees to the Center without any reimbursement from 

the Center to support the functions of the Center.’’. 

(b) INTERAGENCY RESOURCES.—Section 141(d)(1)(A) of the 

Trade Act of 1974 (19 U.S.C. 2171(d)(1)(A)) is amended by inserting 

‘‘, including resources of the Interagency Center on Trade Implementation, Monitoring, and Enforcement established under subsection 

(h),’’ after ‘‘interagency resources’’. 

(c) REPORTS.—Section 163 of the Trade Act of 1974 (19 U.S.C. 

2213) is amended— 

(1) in subsection (a)(2)— 

(A) in subparagraph (J), by striking ‘‘and’’ at the end; 

(B) in subparagraph (K), by striking the period at the 

end and inserting ‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(L) the operation of the Interagency Center on Trade 

Implementation, Monitoring, and Enforcement established 

under section 141(h), including— 

‘‘(i) information relating to the personnel of the 

Center, including a description of any employees detailed or assigned to the Center by a Federal agency 

under paragraph (3)(B) of such section; 

‘‘(ii) information relating to the functions of the 

Center; and 

‘‘(iii) an assessment of the operating costs of the 

Center.’’; and 

(2) by adding at the end the following: 

‘‘(d) QUADRENNIAL PLAN AND REPORT.— 

‘‘(1) QUADRENNIAL PLAN.—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 Trade Representative shall, every 4 

years, develop a plan— 

‘‘(A) to analyze internal quality controls and record 

management of the Office; 

‘‘(B) 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 


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those functions and powers of the Trade Policy Staff Committee) as described in section 141 and section 301; 

‘‘(C) to identify existing staff of the Office and staff in 

other Federal agencies who will be required to be detailed 

or assigned to support interagency programs led by the 

Trade Representative, including any associated expenses; 

‘‘(D) to provide an outline of budget justifications, including salaries and expenses as well as nonpersonnel administrative expenses, for the fiscal years required under 

the strategic plan; and 

‘‘(E) to provide an outline of budget justifications, including salaries and expenses as well as nonpersonnel administrative expenses, for interagency programs led by the 

Trade Representative for the fiscal years required under the 

strategic plan. 

‘‘(2) REPORT.— 

‘‘(A) IN GENERAL.—The Trade Representative shall submit to the appropriate congressional committees a report 

that contains the plan required under paragraph (1). Except as provided in subparagraph (B), the report required 

under this subparagraph shall be submitted in conjunction 

with the strategic plan of the Office as required under section 306 of title 5, United States Code. 

‘‘(B) EXCEPTION.—The Trade Representative shall submit to the appropriate congressional committees an initial 

report that contains the plan required under paragraph (1) 

not later than June 1, 2016. 

‘‘(C) APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.—In this paragraph, the term ‘appropriate congressional committees’ means— 

‘‘(i) the Committee on Finance and the Committee 

on Appropriations of the Senate; and 

‘‘(ii) the Committee on Ways and Means and the 

Committee on Appropriations of the House of Representatives.’’. 

SEC. 605. INCLUSION OF INTEREST IN CERTAIN DISTRIBUTIONS OF 

ANTIDUMPING DUTIES AND COUNTERVAILING DUTIES. 

(a) IN GENERAL.—The Secretary of Homeland Security shall deposit all interest described in subsection (c) into the special account 

established under section 754(e) of the Tariff Act of 1930 (19 U.S.C. 

1675c(e)) (repealed by subtitle F of title VII of the Deficit Reduction 

Act of 2005 (Public Law 109–171; 120 Stat. 154)) for inclusion in 

distributions described in subsection (b) made on or after the date 

of the enactment of this Act. 

(b) DISTRIBUTIONS DESCRIBED.—Distributions described in this 

subsection are distributions of antidumping duties and countervailing duties assessed on or after October 1, 2000, that are made 

under section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c) (repealed by subtitle F of title VII of the Deficit Reduction Act of 2005 

(Public Law 109–171; 120 Stat. 154)), with respect to entries of merchandise that— 

(1) were made on or before September 30, 2007; and 

(2) were, in accordance with section 822 of the Claims Resolution Act of 2010 (19 U.S.C. 1675c note), unliquidated, not in 


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litigation, and not under an order of liquidation from the Department of Commerce on December 8, 2010. 

(c) INTEREST DESCRIBED.— 

(1) INTEREST REALIZED.—Interest described in this subsection is interest earned on antidumping duties or countervailing duties described in subsection (b) that is realized 

through application of a payment received on or after October 

1, 2014, by U.S. Customs and Border Protection under, or in 

connection with— 

(A) a customs bond pursuant to a court order or judgment; or 

(B) a settlement with respect to a customs bond, including any payment made to U.S. Customs and Border Protection with respect to that bond by a surety. 

(2) TYPES OF INTEREST.—Interest described in paragraph 

(1) includes the following: 

(A) Interest accrued under section 778 of the Tariff Act 

of 1930 (19 U.S.C. 1677g). 

(B) Interest accrued under section 505(d) of the Tariff 

Act of 1930 (19 U.S.C. 1505(d)). 

(C) Equitable interest under common law and interest 

under section 963 of the Revised Statutes (19 U.S.C. 580) 

awarded by a court against a surety under its bond for late 

payment of antidumping duties, countervailing duties, or 

interest described in subparagraph (A) or (B). 

(d) DEFINITIONS.—In this section: 

(1) ANTIDUMPING DUTIES.—The term ‘‘antidumping duties’’ 

means antidumping duties imposed under section 731 of the 

Tariff Act of 1930 (19 U.S.C. 1673) or under the Antidumping 

Act, 1921 (title II of the Act of May 27, 1921; 42 Stat. 11, chapter 14). 

(2) COUNTERVAILING DUTIES.—The term ‘‘countervailing 

duties’’ means countervailing duties imposed under section 701 

of the Tariff Act of 1930 (19 U.S.C. 1671). 

SEC. 606. ILLICITLY IMPORTED, EXPORTED, OR TRAFFICKED CULTURAL PROPERTY, ARCHAEOLOGICAL OR ETHNOLOGICAL 

MATERIALS, AND FISH, WILDLIFE, AND PLANTS. 

(a) IN GENERAL.—The Commissioner and the Director of U.S. 

Immigration and Customs Enforcement shall ensure that appropriate personnel of U.S. Customs and Border Protection and U.S. 

Immigration and Customs Enforcement, as the case may be, are 

trained in the detection, identification, detention, seizure, and forfeiture of cultural property, archaeological or ethnological materials, 

and fish, wildlife, and plants, the importation, exportation, or trafficking of which violates the laws of the United States. 

(b) TRAINING.—The Commissioner and the Director are authorized to accept training and other support services from experts outside of the Federal Government with respect to the detection, identification, detention, seizure, and forfeiture of cultural property, archaeological or ethnological materials, or fish, wildlife, and plants 

described in subsection (a). 


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SEC. 607. ENFORCEMENT UNDER TITLE III OF THE TRADE ACT OF 1974 

WITH RESPECT TO CERTAIN ACTS, POLICIES, AND PRACTICES. 

Section 301(d)(3)(B) of the Trade Act of 1974 (19 U.S.C. 

2411(d)(3)(B)) is amended— 

(1) in clause (ii), by striking ‘‘or’’ at the end; 

(2) in clause (iii)(V), by striking the period at the end and 

inserting ‘‘, or’’; and 

(3) by adding at the end the following: 

‘‘(iv) constitutes a persistent pattern of conduct by 

the government of a foreign country under which that 

government fails to effectively enforce commitments 

under agreements to which the foreign country and the 

United States are parties, including with respect to 

trade in goods, trade in services, trade in agriculture, 

foreign investment, intellectual property, digital trade 

in goods and services and cross-border data flows, regulatory practices, state-owned and state-controlled enterprises, localization barriers to trade, labor and the 

environment, anticorruption, trade remedy laws, textiles, and commercial partnerships.’’. 

SEC. 608. HONEY TRANSSHIPMENT. 

(a) IN GENERAL.—The Commissioner shall direct appropriate 

personnel and the use of resources of U.S. Customs and Border Protection to address concerns that honey is being imported into the 

United States in violation of the customs and trade laws of the 

United States. 

(b) COUNTRY OF ORIGIN.— 

(1) IN GENERAL.—The Commissioner shall compile a database of the individual characteristics of honey produced in foreign countries to facilitate the verification of country of origin 

markings of imported honey. 

(2) ENGAGEMENT WITH FOREIGN GOVERNMENTS.—The Commissioner shall seek to engage the customs agencies of foreign 

governments for assistance in compiling the database described 

in paragraph (1). 

(3) CONSULTATION WITH INDUSTRY.—In compiling the database described in paragraph (1), the Commissioner shall consult with entities in the honey industry regarding the development of industry standards for honey identification. 

(4) CONSULTATION WITH FOOD AND DRUG ADMINISTRA- TION.—In compiling the database described in paragraph (1), 

the Commissioner shall consult with the Commissioner of Food 

and Drugs. 

(c) REPORT REQUIRED.—Not later than 180 days after the date 

of the enactment of this Act, the Commissioner shall submit to Congress a report that— 

(1) describes and assesses the limitations in the existing 

analysis capabilities of laboratories with respect to determining 

the country of origin of honey samples or the percentage of 

honey contained in a sample; and 

(2) includes any recommendations of the Commissioner for 

improving such capabilities. 

(d) SENSE OF CONGRESS.—It is the sense of Congress that the 

Commissioner of Food and Drugs should promptly establish a naVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00069 Fmt 6659 Sfmt 6603 E:\HR\OC\HR376.XXX HR376

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tional standard of identity for honey for the Commissioner of U.S. 

Customs and Border Protection to use to ensure that imports of 

honey are— 

(1) classified accurately for purposes of assessing duties; 

and 

(2) denied entry into the United States if such imports pose 

a threat to the health or safety of consumers in the United 

States. 

SEC. 609. ESTABLISHMENT OF CHIEF INNOVATION AND INTELLECTUAL PROPERTY NEGOTIATOR. 

(a) IN GENERAL.—Section 141 of the Trade Act of 1974 (19 

U.S.C. 2171) is amended— 

(1) in subsection (b)(2)— 

(A) by striking ‘‘and one Chief Agricultural Negotiator’’ 

and inserting ‘‘, one Chief Agricultural Negotiator, and one 

Chief Innovation and Intellectual Property Negotiator,’’; 

(B) by striking ‘‘or the Chief Agricultural Negotiator’’ 

and inserting ‘‘, the Chief Agricultural Negotiator, or the 

Chief Innovation and Intellectual Property Negotiator’’; and 

(C) by striking ‘‘and the Chief Agricultural Negotiator’’ 

and inserting ‘‘, the Chief Agricultural Negotiator, and the 

Chief Innovation and Intellectual Property Negotiator’’; and 

(2) in subsection (c)— 

(A) by moving paragraph (5) 2 ems to the left; and 

(B) by adding at the end the following: 

‘‘(6) The principal functions of the Chief Innovation and Intellectual Property Negotiator shall be to conduct trade negotiations 

and to enforce trade agreements relating to United States intellectual property and to take appropriate actions to address acts, policies, and practices of foreign governments that have a significant 

adverse impact on the value of United States innovation. The Chief 

Innovation and Intellectual Property Negotiator shall be a vigorous 

advocate on behalf of United States innovation and intellectual 

property interests. The Chief Innovation and Intellectual Property 

Negotiator shall perform such other functions as the United States 

Trade Representative may direct.’’. 

(b) COMPENSATION.—Section 5314 of title 5, United States Code 

is amended by striking ‘‘Chief Agricultural Negotiator.’’ and inserting the following: 

‘‘Chief Agricultural Negotiator, Office of the United States 

Trade Representative. 

‘‘Chief Innovation and Intellectual Property Negotiator, Office of 

the United States Trade Representative.’’. 

(c) REPORT REQUIRED.—Not later than one year after the appointment of the first Chief Innovation and Intellectual Property Negotiator pursuant to paragraph (2) of section 141(b) of the Trade Act 

of 1974, as amended by subsection (a), and annually thereafter, the 

United States 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 describing in detail— 

(1) enforcement actions taken by the Trade Representative 

during the one-year period preceding the submission of the report to ensure the protection of United States innovation and 

intellectual property interests; and 


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71 

(2) other actions taken by the Trade Representative to advance United States innovation and intellectual property interests. 

SEC. 610. MEASURES RELATING TO COUNTRIES THAT DENY ADEQUATE 

PROTECTION FOR INTELLECTUAL PROPERTY RIGHTS. 

(a) INCLUSION OF COUNTRIES THAT DENY ADEQUATE PROTECTION OF TRADE SECRETS.—Section 182(d)(2) of the Trade Act of 

1974 (19 U.S.C. 2242(d)(2)) is amended by inserting ‘‘, trade secrets,’’ after ‘‘copyrights’’. 

(b) SPECIAL RULES FOR COUNTRIES ON THE PRIORITY WATCH

LIST OF THE UNITED STATES TRADE REPRESENTATIVE.— 

(1) IN GENERAL.—Section 182 of the Trade Act of 1974 (19 

U.S.C. 2242) is amended by striking subsection (g) and inserting the following: 

‘‘(g) SPECIAL RULES FOR FOREIGN COUNTRIES ON THE PRIORITY

WATCH LIST.— 

‘‘(1) ACTION PLANS.— 

‘‘(A) IN GENERAL.—Not later than 90 days after the 

date on which the Trade Representative submits the National Trade Estimate under section 181(b), the Trade Representative shall develop an action plan described in subparagraph (C) with respect to each foreign country described in subparagraph (B). 

‘‘(B) FOREIGN COUNTRY DESCRIBED.—The Trade Representative shall develop an action plan under subparagraph (A) with respect to each foreign country that— 

‘‘(i) the Trade Representative has identified for 

placement on the priority watch list; and 

‘‘(ii) has remained on such list for at least one 

year. 

‘‘(C) ACTION PLAN DESCRIBED.—An action plan developed under subparagraph (A) shall contain the benchmarks 

described in subparagraph (D) and be designed to assist 

the foreign country— 

‘‘(i) to achieve— 

‘‘(I) adequate and effective protection of intellectual property rights; and 

‘‘(II) fair and equitable market access for 

United States persons that rely upon intellectual 

property protection; or 

‘‘(ii) to make significant progress toward achieving 

the goals described in clause (i). 

‘‘(D) BENCHMARKS DESCRIBED.—The benchmarks contained in an action plan developed pursuant to subparagraph (A) are such legislative, institutional, enforcement, or 

other actions as the Trade Representative determines to be 

necessary for the foreign country to achieve the goals described in clause (i) or (ii) of subparagraph (C). 

‘‘(2) FAILURE TO MEET ACTION PLAN BENCHMARKS.—If, as of 

one year after the date on which an action plan is developed 

under paragraph (1)(A), the President, in consultation with the 

Trade Representative, determines that the foreign country to 

which the action plan applies has not substantially complied 

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dent may take appropriate action with respect to the foreign 

country. 

‘‘(3) PRIORITY WATCH LIST DEFINED.—In this subsection, the 

term ‘priority watch list’ means the priority watch list established by the Trade Representative pursuant to subsection (a). 

‘‘(h) ANNUAL REPORT.—Not later than 30 days after the date on 

which the Trade Representative submits the National Trade Estimate under section 181(b), the Trade Representative shall submit to 

the Committee on Ways and Means of the House of Representatives 

and the Committee on Finance of the Senate a report on actions 

taken under this section during the 12 months preceding such report, and the reasons for such actions, including— 

‘‘(1) a list of any foreign countries identified under subsection (a); 

‘‘(2) a description of progress made in achieving improved 

intellectual property protection and market access for persons 

relying on intellectual property rights; and 

‘‘(3) a description of the action plans developed under subsection (g) and any actions taken by foreign countries under 

such plans.’’. 

(2) FUNDING.— (A) IN GENERAL.—Amounts from the Trade Enforcement Trust Fund established under section 611 may be expended by the United States Trade Representative, only as 

provided by appropriations Acts, to provide assistance to 

any developing country to which an action plan applies 

under section 182(g) of the Trade Act of 1974, as amended 

by paragraph (1), to facilitate the efforts of the developing 

country to comply with the benchmarks contained in the action plan. Such assistance may include capacity building, 

activities designed to increase awareness of intellectual 

property rights, and training for officials responsible for enforcing intellectual property rights in the developing country. 

(B) DEVELOPING COUNTRY DEFINED.—In this paragraph, the term ‘‘developing country’’ means a country classified by the World Bank as having a low-income or lowermiddle-income economy. 

(3) RULE OF CONSTRUCTION.—Nothing in this subsection or 

the amendment made by this subsection shall be construed as 

limiting the authority of the President or the United States 

Trade Representative to develop action plans other than action 

plans described in section 182(g) of the Trade Act of 1974, as 

amended by paragraph (1), or to take any action otherwise authorized by law in response to the failure of a foreign country 

to provide adequate and effective protection and enforcement of 

intellectual property rights. 

SEC. 611. TRADE ENFORCEMENT TRUST FUND. 

(a) ESTABLISHMENT.—There is established in the Treasury of 

the United States a trust fund to be known as the Trade Enforcement Trust Fund (in this section referred to as the ‘‘Trust Fund’’), 

consisting of amounts transferred to the Trust Fund under subsection (b) and any amounts that may be credited to the Trust Fund 

under subsection (c). 

(b) TRANSFER OF AMOUNTS.— 


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(1) IN GENERAL.—The Secretary of the Treasury shall 

transfer to the Trust Fund, from the general fund of the Treasury, for each fiscal year that begins on or after the date of the 

enactment of this Act through fiscal year 2026, an amount 

equal to $15,000,000 (or a lesser amount as required pursuant 

to paragraph (2)). 

(2) LIMITATION.—The total amount in the Trust Fund at 

any time may not exceed $30,000,000. 

(3) FREQUENCY OF TRANSFERS.—The Secretary shall transfer amounts required to be transferred to the Trust Fund under 

paragraph (1) not less frequently than quarterly from the general fund of the Treasury to the Trust Fund in a manner that 

ensures that the total amount in the Trust Fund at the end of 

the quarter does not exceed the limitation established under 

paragraph (2). 

(c) INVESTMENT OF AMOUNTS.— 

(1) INVESTMENT OF AMOUNTS.—The Secretary shall invest 

such portion of the Trust Fund as is not required to meet current withdrawals in interest-bearing obligations of the United 

States or in obligations guaranteed as to both principal and interest by the United States. 

(2) INTEREST AND PROCEEDS.—The interest on, and the proceeds from the sale or redemption of, any obligations held in the 

Trust Fund shall be credited to and form a part of the Trust 

Fund. 

(d) AVAILABILITY OF AMOUNTS FROM TRUST FUND.— (1) IN GENERAL.—The United States Trade Representative 

shall, on the basis of the advice of the Trade Policy Committee 

and relevant subordinate bodies of the TPC, use or transfer for 

the use by Federal agencies represented on the TPC amounts in 

the Trust Fund, only as provided by appropriations Acts, for 

making expenditures for any of the following: 

(A) To seek to enforce the provisions of and commitments and obligations under the WTO Agreements and free 

trade agreements to which the United States is a party and 

resolve any actions by foreign countries that are inconsistent with those provisions, commitments, and obligations. 

(B) To monitor and ensure the full implementation by 

foreign countries of the provisions of and commitments and 

obligations under free trade agreements to which the 

United States is a party for purposes of systematically assessing, identifying, investigating, or initiating steps to address inconsistencies with those provisions, commitments, 

and obligations. 

(C) To thoroughly investigate and respond to petitions 

under section 302 of the Trade Act of 1974 (19 U.S.C. 2412) 

requesting that action be taken under section 301 of such 

Act (19 U.S.C. 2411). 

(D) To support capacity-building efforts undertaken by 

the United States pursuant to any free trade agreement to 

which the United States is a party and to prioritize and 

give special attention to the timely, consistent, and robust 

implementation of the commitments and obligations of a 

party to that free trade agreement, including commitments 


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and obligations related to trade in goods, trade in services, 

trade in agriculture, foreign investment, intellectual property, digital trade in goods and services and cross-border 

data flows, regulatory practices, state-owned and state-controlled enterprises, localization barriers to trade, labor and 

the environment, currency, foreign currency manipulation, 

anticorruption, trade remedy laws, textiles, and commercial 

partnerships. 

(E) To support capacity-building efforts undertaken by 

the United States pursuant to any such free trade agreement and to include performance indicators against which 

the progress and obstacles for the implementation of commitments and obligations can be identified and assessed 

within a meaningful time frame. 

(2) LIMITATION.—Amounts made available in the Trust 

Fund may not be used to offset costs of conducting negotiations 

for any free trade agreement to be entered into on or after the 

date of the enactment of this Act, but may be used to support 

implementation and capacity building prior to entry into force 

of a free trade agreement. 

(e) REPORT.—Not later than 18 months after the entry into force 

of any free trade agreement entered into after the date of the enactment of this Act, the United States Trade Representative, in consultation with the Federal agencies represented on the TPC, shall 

submit to Congress a report on the actions taken under subsection 

(d) in connection with that agreement. 

(f) COMPTROLLER GENERAL STUDY.— (1) IN GENERAL.—The Comptroller General of the United 

States shall conduct a study that includes the following: 

(A) A comprehensive analysis of the trade enforcement 

expenditures of each Federal agency with responsibilities 

relating to trade that specifies, with respect to each such 

Federal agency— 

(i) the amounts appropriated for trade enforcement; and 

(ii) the number of full-time employees carrying out 

activities relating to trade enforcement. 

(B) Recommendations on the additional employees and 

resources that each such Federal agency may need to effectively enforce the free trade agreements to which the United 

States is a party. 

(2) REPORT.—Not later than one year after the date of the 

enactment of this Act, the Comptroller General shall submit to 

Congress a report on the results of the study conducted under 

paragraph (1). 

(g) DEFINITIONS.—In this section: 

(1) TRADE POLICY COMMITTEE; TPC.—The terms ‘‘Trade Policy Committee’’ and ‘‘TPC’’ mean the interagency organization 

established under section 242 of the Trade Expansion Act of 

1962 (19 U.S.C. 1872). 

(2) WTO.—The term ‘‘WTO’’ means the World Trade Organization. 

(3) 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)). 


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(4) WTO AGREEMENTS.—The term ‘‘WTO Agreements’’ 

means the WTO Agreement and agreements annexed to that 

Agreement. 

TITLE VII—ENGAGEMENT ON CURRENCY EXCHANGE 

RATE AND ECONOMIC POLICIES 

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; and 


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(iv) patterns in the reserve accumulation of that 

country. 

(3) ASSESSMENT FACTORS.—Not later than 90 days after 

the date of the enactment of this Act, the Secretary shall publicly describe 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 POLI- CIES.— (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 significant 

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; 

(C) advise that country of the ability of the President 

to take action under subsection (c); and/or 

(D) develop a plan with specific actions to address that 

undervaluation and those surpluses. 

(2) WAIVER.— 

(A) IN GENERAL.—The Secretary may waive the requirement under paragraph (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 AND REPORT.—The Secretary shall 

promptly certify to Congress a determination under subparagraph (A) and promptly submit to Congress a report 

that describes in detail the reasons for the Secretary’s 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: 

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surance, reinsurance, or guarantee) with respect to a project 

located in that country on and after such date. 

(B) Except as provided in paragraph (3), and pursuant 

to paragraph (4), 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 AND REPORT.—The President shall 

promptly certify to Congress a determination under subparagraph (A) and promptly submit to Congress a report 

that describes in detail the reasons for the President’s 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— 


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(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. 


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(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 fewer 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—MATTERS RELATING TO U.S. CUSTOMS AND 

BORDER PROTECTION 

Subtitle A—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: 


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‘‘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 PROTEC- TION.— ‘‘(1) IN GENERAL.—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’). 

‘‘(2) COMMITTEE REFERRAL.—As an exercise of the rulemaking power of the Senate, any nomination for the Commissioner submitted to the Senate for confirmation, and referred to 

a committee, shall be referred to the Committee on Finance. 

‘‘(c) DUTIES.—The Commissioner shall— 

‘‘(1) coordinate and integrate the security, trade facilitation, 

and trade enforcement functions of U.S. Customs and Border 

Protection; 

‘‘(2) ensure the interdiction of persons and goods illegally 

entering or exiting the United States; 

‘‘(3) facilitate and expedite the flow of legitimate travelers 

and trade; 

‘‘(4) direct and administer the commercial operations of 

U.S. Customs and Border Protection, and the enforcement of 

the customs and trade laws of the United States; 

‘‘(5) 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; 

‘‘(6) safeguard the borders of the United States to protect 

against the entry of dangerous goods; 

‘‘(7) ensure the overall economic security of the United 

States is not diminished by efforts, activities, and programs 

aimed at securing the homeland; 

‘‘(8) in coordination with U.S. Immigration and Customs 

Enforcement and United States Citizenship and Immigration 

Services, 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)), including— 

‘‘(A) the inspection, processing, and admission of persons who seek to enter or depart the United States; and 

‘‘(B) 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; 

‘‘(9) 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; 

‘‘(10) 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); 


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‘‘(11) enforce and administer the laws relating to agricultural import and entry inspection referred to in section 421; 

‘‘(12) 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; 

‘‘(13) ensure that the policies and regulations of U.S. Customs and Border Protection are consistent with the obligations 

of the United States pursuant to international agreements; 

‘‘(14) 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); and 

‘‘(B) the Customs–Trade Partnership Against Terrorism 

program under subtitle B of title II of such Act (6 U.S.C. 

961 et seq.); 

‘‘(15) conduct polygraph examinations in accordance with 

section 3(1) of the Anti-Border Corruption Act of 2010 (Public 

Law 111–376; 124 Stat. 4105); 

‘‘(16) establish the standard operating procedures described 

in subsection (k); 

‘‘(17) carry out the training required under subsection (l); 

and 

‘‘(18) 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— 

‘‘(A) be at the level of Executive Assistant Commissioner within U.S. Customs and Border Protection; and 

‘‘(B) 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 the illegal entry of terrorists, terrorist weapons, persons, and contraband; and 

‘‘(C) carry out other duties and powers prescribed by 

the Commissioner. 

‘‘(f) AIR AND MARINE OPERATIONS.— 

‘‘(1) IN GENERAL.—There is established in U.S. Customs 

and Border Protection an office known as Air and Marine Operations. 


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‘‘(2) EXECUTIVE ASSISTANT COMMISSIONER.—There shall be 

at the head of Air and Marine Operations an Executive Assistant Commissioner, who shall report to the Commissioner. 

‘‘(3) DUTIES.—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 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 Executive Assistant Commissioner 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, as directed by the Secretary; 

‘‘(ii) monitor and coordinate the airspace for unmanned aerial systems operations 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, in coordination with other appropriate agencies, as determined by the Executive Assistant Commissioner; 

‘‘(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 Executive 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) EXECUTIVE ASSISTANT COMMISSIONER.—There shall be 

at the head of the Office of Field Operations an Executive 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; 


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‘‘(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); 

‘‘(F) coordinate with the Executive Assistant Commissioner for the Office of Trade with respect to the trade facilitation and trade enforcement activities of U.S. Customs 

and Border Protection; and 

‘‘(G) 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 Executive 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 to identify and 

address security risks and strengthen trade enforcement; 

‘‘(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) coordinate with the Transportation Security 

Administration, as appropriate; 

‘‘(vi) issue Trade Alerts pursuant to section 111(b) 

of the Trade Facilitation and Trade Enforcement Act of 

2015; and 

‘‘(vii) carry out other duties and powers prescribed 

by the Executive Assistant Commissioner. 

‘‘(5) ANNUAL REPORT ON STAFFING.— 

‘‘(A) IN GENERAL.—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 Executive Assistant Commissioner 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 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. 

‘‘(B) FORM.—The report required under subparagraph 

(A) shall, to the greatest extent practicable, be submitted in 


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unclassified form, but may be submitted in classified form, 

if the Executive Assistant Commissioner determines that 

such is appropriate and informs 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 of the reasoning for such. 

‘‘(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) manage the counterintelligence operations of U.S. 

Customs and Border Protection; 

‘‘(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’s duties 

and responsibilities; 

‘‘(D) provide necessary capacity building, training, and 

assistance to foreign customs and border control agencies to 

strengthen border, global supply chain, and travel security, 

as appropriate; 

‘‘(E) coordinate mission support services to sustain U.S. 

Customs and Border Protection’s global activities; 


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‘‘(F) coordinate with customs authorities of foreign 

countries with respect to trade facilitation and trade enforcement; 

‘‘(G) coordinate U.S. Customs and Border Protection’s 

engagement in international negotiations; 

‘‘(H) advise the Commissioner with respect to matters 

arising in the World Customs Organization and other 

international organizations as such matters relate to the 

policies and procedures of U.S. Customs and Border Protection; 

‘‘(I) advise the Commissioner regarding international 

agreements to which the United States is a party as such 

agreements relate to the policies and regulations of U.S. 

Customs and Border Protection; and 

‘‘(J) carry out other duties and powers prescribed by 

the Commissioner. 

‘‘(j) OFFICE OF PROFESSIONAL RESPONSIBILITY.— 

‘‘(1) IN GENERAL.—There is established in U.S. Customs 

and Border Protection an Office of Professional Responsibility. 

‘‘(2) ASSISTANT COMMISSIONER.—There shall be at the head 

of the Office of Professional Responsibility an Assistant Commissioner, who shall report to the Commissioner. 

‘‘(3) DUTIES.—The Office of Professional Responsibility 

shall— 

‘‘(A) investigate criminal and administrative matters 

and misconduct by officers, agents, and other employees of 

U.S. Customs and Border Protection; 

‘‘(B) manage integrity-related programs and policies of 

U.S. Customs and Border Protection; 

‘‘(C) conduct research and analysis regarding misconduct of officers, agents, and other employees of U.S. 

Customs and Border Protection; and 

‘‘(D) 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) uniform, standardized, and publicly-available procedures 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’); 


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‘‘(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 

Executive 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.—The Commissioner may withhold the notifications required under paragraphs (1)(C) and (2) if the Commissioner determines, in the sole and unreviewable discretion of 

the Commissioner, that such notifications would impair national security, law enforcement, or other operational interests. 

‘‘(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, 

during each of the three calendar years beginning in the calendar year that begins after the date of the enactment of the 

Trade Facilitation and Trade Enforcement Act of 2015, 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 


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shall be submitted to the Committee on Homeland Security of 

the House of Representatives and the Committee on Homeland 

Security and Governmental Affairs of the Senate 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 devices was subjected to such searches and 

was transmitted to another Federal agency, including 

whether such transmissions resulted in a prosecution or 

conviction. 

‘‘(6) REQUIREMENTS REGARDING OTHER NOTIFICATIONS.— 

The standard use of force 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 Committee on Homeland Security of the House of Representatives and the Committee on 

Homeland Security and Governmental Affairs of the Senate; 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 Committee on Homeland Security 

of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate an annual report, for each of the three calendar years beginning in 

the calendar year that begins after the date of the enactment of 

the Trade Facilitation and Trade Enforcement Act of 2015, that 

reviews whether the use of unmanned aerial systems is being 

conducted in conformity with the standard operating procedures required under subparagraph (E) of paragraph (1). Such 

reports— 

‘‘(A) shall be submitted with the annual budget of the 

United States Government submitted by the President 

under section 1105 of title 31, United States Code; 

‘‘(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 are collected and stored; and 


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‘‘(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 a United States port of entry or between ports 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 BOR- DER 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 the 

Trade Facilitation and Trade Enforcement Act of 2015, the 

Comptroller General of the United States 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 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 FA- CILITIES.—The Commissioner shall— 

‘‘(A) annually inspect all facilities utilized for shortterm detention; and 


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‘‘(B) make publicly 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 for travelers entering the 

United States 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 website; 

‘‘(C) 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, for each of the five calendar years beginning 

in the calendar year that begins after the date of the enactment of the Trade Facilitation and Trade Enforcement Act 

of 2015, a report that includes 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 positions of 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 under paragraph (1), the Secretary shall notify 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 not later than 30 days before 

exercising such authority. 

‘‘(p) REPORTS TO CONGRESS.—The Commissioner shall, on and 

after the date of the enactment of the Trade Facilitation and Trade 

Enforcement Act of 2015, continue to 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 any report required, on the day before such date of enactment, to be submitted under any provision of law. 


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‘‘(q) OTHER FEDERAL AGENCIES.—Nothing in this section may 

be construed as affecting in any manner the authority, existing on 

the day before the date of the enactment of the Trade Facilitation 

and Trade Enforcement Act of 2015, of any other Federal agency or 

component of the Department. 

‘‘(r) DEFINITIONS.—In this section, the terms ‘commercial operations’, ‘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.’’. 

(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 

the date of the enactment of this Act, and section 415 of the 

Homeland Security Act of 2002. 

(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 individual serving as Deputy 

Commissioner, and 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 Executive Assistant Commissioners, Deputy Commissioner, Assistant Commissioners, and other officers and officials, as appropriate, under 

such section 411 as amended by subsection (a) of this section 


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91 

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 


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(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 


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93 

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) EXECUTIVE ASSISTANT COMMISSIONER.—There shall be at 

the head of the Office of Trade an Executive Assistant Commissioner, who shall report to the Commissioner of U.S. Customs and 

Border Protection. 

‘‘(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 of U.S. Customs and Border 

Protection with respect to the impact on trade facilitation and 


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trade enforcement of any policy or regulation otherwise proposed or administered by U.S. Customs and Border Protection; 

‘‘(3) coordinate with the Executive 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; 

‘‘(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 for trade facilitation and trade enforcement required 

under section 105 of the Trade Facilitation and Trade Enforcement Act of 2015; 

‘‘(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)(4) of the Consolidated Omnibus Budget and Reconciliation Act of 1985 (19 

U.S.C. 58c(f)(4)) and support for the establishment of the International Trade Data System under the oversight of the Department of the 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 June 

1, 2016, and March 1 of each calendar year thereafter 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, PERSONNEL, OR LIABILITIES; 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 of U.S. Customs 

and Border Protection 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 the enactment of the Trade Facilitation and Trade 

Enforcement Act of 2015, the Office of International Trade 

shall be abolished. 


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‘‘(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, or liabilities of the Office of International Trade to an office other than the Office of Trade 

established under subsection (a), unless the Commissioner 

of U.S. Customs and Border Protection notifies 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 of the specific 

assets, functions, personnel, or liabilities to be transferred, 

and the reason for the transfer, not less than 90 days prior 

to the transfer of such assets, functions, personnel, or liabilities. 

‘‘(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 this Act 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 of U.S. Customs 

and Border Protection 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 (a). 

‘‘(B) CONGRESSIONAL NOTIFICATION.—Not less than 90 

days prior to the transfer of assets, functions, personnel, or 

liabilities under subparagraph (A), the Commissioner of 

U.S. Customs and Border Protection shall notify 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 of the specific 

assets, functions, personnel, or liabilities to be transferred, 

and the reason for such 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 Executive Assistant Commissioner of Trade on and 

after such date of enactment, at the discretion of the Commissioner of U.S. Customs and Border Protection. 

(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. 


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(i) REPORTS AND ASSESSMENTS.— 

(1) REPORT ON BUSINESS TRANSFORMATION INITIATIVE.— 

Not later than 90 days after the date of the enactment of this 

Act and annually thereafter for the next five years, the Commissioner shall submit to the Committee on Ways and Means and 

the Committee on Homeland Security of the House of Representatives and the Committee on Finance and the Committee on 

Homeland Security and Governmental Affairs 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 than 180 days after the date of the enactment of this Act, the Commissioner 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 and annually thereafter for the 

next three years, the Commissioner 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 


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(2) makes available to the United States Government the 

information described in paragraph (1) through another means 

of reporting. 

(k) AGRICULTURAL SPECIALIST CAREER TRACK.—Not later than 

one year after the date of the enactment of this Act, the Secretary 

of Homeland Security 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 

plan to create an agricultural specialist career track within U.S. 

Customs and Border Protection. Such plan shall include the following: 

(1) A description of education, training, experience, and assignments necessary for career progression as an agricultural 

specialist. 

(2) Recruitment and retention goals for agricultural specialists, including a timeline for fulfilling staffing deficits identified in agricultural resource allocation models. 

(3) An assessment of equipment and other resources needed 

to support agricultural specialists. 

(4) Any other factors the Commissioner determines appropriate. 

(l) 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. 


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Subtitle B—Preclearance Operations 

SEC. 811. SHORT TITLE. 

This subtitle may be cited as the ‘‘Preclearance Authorization 

Act of 2015’’. 

SEC. 812. DEFINITIONS. 

In this subtitle: 

(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 

‘‘appropriate congressional committees’’ means— 

(A) the Committee on Homeland Security and Governmental Affairs, the Committee on Finance, the Committee 

on Commerce, Science, and Transportation, and the Committee on Appropriations of the Senate; and 

(B) the Committee on Homeland Security, the Committee on Ways and Means, and the Committee on Appropriations of the House of Representatives. 

(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Homeland Security. 

SEC. 813. ESTABLISHMENT OF PRECLEARANCE OPERATIONS. 

Pursuant to section 629 of the Tariff Act of 1930 (19 U.S.C. 

1629) and section 103(a)(7) of the Immigration and Nationality Act 

(8 U.S.C. 1103(a)(7)), and provided that an aviation security 

preclearance agreement (as defined in section 44901(d)(4)(B) of title 

49, United States Code) is in effect, the Secretary may establish and 

maintain U.S. Customs and Border Protection preclearance operations in a foreign country— 

(1) to prevent terrorists, instruments of terrorism, and other 

security threats from entering the United States; 

(2) to prevent inadmissible persons from entering the 

United States; 

(3) to ensure that merchandise destined for the United 

States complies with applicable laws; 

(4) to ensure the prompt processing of persons eligible to 

travel to the United States; and 

(5) to accomplish such other objectives as the Secretary determines are necessary to protect the United States. 

SEC. 814. NOTIFICATION AND CERTIFICATION TO CONGRESS. 

(a) INITIAL NOTIFICATION.—Not later than 60 days before an 

agreement with the government of a foreign country to establish 

U.S. Customs and Border Protection preclearance operations in 

such foreign country enters into force, the Secretary shall provide 

the appropriate congressional committees with— 

(1) a copy of the agreement to establish such preclearance 

operations, which shall include— 

(A) the identification of the foreign country with which 

U.S. Customs and Border Protection intends to enter into 

a preclearance agreement; 

(B) the location at which such preclearance operations 

will be conducted; and 

(C) the terms and conditions for U.S. Customs and 

Border Protection personnel operating at the location; 

(2) an assessment of the impact such preclearance operations will have on legitimate trade and travel, including potential impacts on passengers traveling to the United States; 


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(3) an assessment of the impacts such preclearance operations will have on U.S. Customs and Border Protection domestic port of entry staffing; 

(4) country-specific information on the anticipated homeland security benefits associated with establishing such 

preclearance operations; 

(5) information on potential security vulnerabilities associated with commencing such preclearance operations and mitigation plans to address such potential security vulnerabilities; 

(6) a U.S. Customs and Border Protection staffing model 

for such preclearance operations and plans for how such positions would be filled; and 

(7) information on the anticipated costs over the 5 fiscal 

years after the agreement enters into force associated with commencing such preclearance operations. 

(b) FURTHER NOTIFICATION RELATING TO PRECLEARANCE OPERATIONS ESTABLISHED AT AIRPORTS.—Not later than 45 days before 

an agreement with the government of a foreign country to establish 

U.S. Customs and Border Protection preclearance operations at an 

airport in such country enters into force, the Secretary, in addition 

to complying with the notification requirements under subsection 

(a), shall provide the appropriate congressional committees with— 

(1) an estimate of the date on which U.S. Customs and Border Protection intends to establish preclearance operations 

under such agreement, including any pending caveats that 

must be resolved before preclearance operations are approved; 

(2) the anticipated funding sources for preclearance operations under such agreement, and other funding sources considered; 

(3) a homeland security threat assessment for the country 

in which such preclearance operations are to be established; 

(4) information on potential economic, competitive, and job 

impacts on United States air carriers associated with establishing such preclearance operations; 

(5) details on information sharing mechanisms to ensure 

that U.S. Customs and Border Protection has current information to prevent terrorist and criminal travel; and 

(6) other factors that the Secretary determines to be necessary for Congress to comprehensively assess the appropriateness of commencing such preclearance operations. 

(c) CERTIFICATIONS RELATING TO PRECLEARANCE OPERATIONS

ESTABLISHED AT AIRPORTS.—Not later than 60 days before an 

agreement with the government of a foreign country to establish 

U.S. Customs and Border Protection preclearance operations at an 

airport in such country enters into force, the Secretary, in addition 

to complying with the notification requirements under subsections 

(a) and (b), shall provide the appropriate congressional committees 

with— 

(1) a certification that preclearance operations under such 

preclearance agreement, after considering alternative options, 

would provide homeland security benefits to the United States 

through the most effective means possible; 

(2) a certification that preclearance operations within such 

foreign country will be established under such agreement only 

if— 


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(A) at least one United States passenger carrier operates at such airport; and 

(B) any United States passenger carriers operating at 

such airport and desiring to participate in preclearance operations are provided access that is comparable to that of 

any non-United States passenger carrier operating at that 

airport; 

(3) a certification that the establishment of preclearance operations in such foreign country will not significantly increase 

customs processing times at United States airports; 

(4) a certification that representatives from U.S. Customs 

and Border Protection consulted with stakeholders, including 

providers of commercial air service in the United States, employees of such providers, security experts, and such other parties as the Secretary determines to be appropriate; and 

(5) a report detailing the basis for the certifications referred 

to in paragraphs (1) through (4). 

(d) AMENDMENT OF EXISTING AGREEMENTS.—Not later than 30 

days before a substantially amended preclearance agreement with 

the government of a foreign country in effect as of the date of the 

enactment of this Act enters into force, the Secretary shall provide 

to the appropriate congressional committees— 

(1) a copy of the agreement, as amended; and 

(2) the justification for such amendment. 

(e) IMPLEMENTATION PLAN.— (1) IN GENERAL.—The Commissioner shall report to the appropriate congressional committees, on a quarterly basis— 

(A) the number of U.S. Customs and Border Protection 

officers, by port, assigned from domestic ports of entry to 

preclearance operations; and 

(B) the number of the positions at domestic ports of 

entry vacated by U.S. Customs and Border Protection officers described in subparagraph (A) that have been filled by 

other hired, trained, and equipped U.S. Customs and Border Protection officers. 

(2) SUBMISSION.—If the Commissioner has not filled the positions of U.S. Customs and Border Protection officers that were 

reassigned to preclearance operations and determines that U.S. 

Customs and Border Protection processing times at domestic 

ports of entry from which U.S. Customs and Border Protection 

officers were reassigned to preclearance operations have significantly increased, the Commissioner, not later than 60 days after 

making such a determination, shall submit to the appropriate 

congressional committees an implementation plan for reducing 

processing times at the domestic ports of entry with such increased processing times. 

(3) SUSPENSION.—If the Commissioner does not submit the 

implementation plan described in paragraph (2) to the appropriate congressional committees before the deadline set forth in 

such paragraph, the Commissioner may not commence 

preclearance operations at an additional port of entry in any 

country until such implementation plan is submitted. 

(f) CLASSIFIED REPORT.—The report required under subsection 

(c)(5) may be submitted in classified form if the Secretary determines that such form is appropriate. 


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SEC. 815. PROTOCOLS. 

Section 44901(d)(4) of title 49, United States Code, is amended— 

(1) by redesignating subparagraph (C) as subparagraph 

(D); and 

(2) by inserting after subparagraph (B) the following: 

‘‘(C) RESCREENING REQUIREMENT.—If the Administrator of the Transportation Security Administration determines that the government of a foreign country has not 

maintained security standards and protocols comparable to 

those of the United States at airports at which preclearance 

operations have been established in accordance with this 

paragraph, the Administrator shall ensure that Transportation Security Administration personnel rescreen passengers arriving from such airports and their property in 

the United States before such passengers are permitted into 

sterile areas of airports in the United States.’’. 

SEC. 816. LOST AND STOLEN PASSPORTS. 

The Secretary may not enter into an agreement with the government of a foreign country to establish or maintain U.S. Customs 

and Border Protection preclearance operations at an airport in such 

country unless the Secretary certifies to the appropriate congressional committees that such government— 

(1) routinely submits information about lost and stolen 

passports of its citizens and nationals to INTERPOL’s Stolen 

and Lost Travel Document database; or 

(2) makes such information available to the United States 

Government through another comparable means of reporting. 

SEC. 817. RECOVERY OF INITIAL U.S. CUSTOMS AND BORDER PROTECTION PRECLEARANCE OPERATIONS COSTS. 

(a) COST SHARING AGREEMENTS WITH RELEVANT AIRPORT AU- THORITIES.—The Commissioner may enter into a cost sharing agreement with airport authorities in foreign countries at which 

preclearance operations are to be established or maintained if— 

(1) an executive agreement to establish or maintain such 

preclearance operations pursuant to the authorities under section 629 of the Tariff Act of 1930 (19 U.S.C. 1629) and section 

103(a)(7) of the Immigration and Nationality Act (8 U.S.C. 

1103(a)(7)) has been signed, but has not yet entered into force; 

and 

(2) U.S. Customs and Border Protection has incurred, or 

expects to incur, initial preclearance operations costs in order to 

establish or maintain preclearance operations under the agreement described in paragraph (1). 

(b) CONTENTS OF COST SHARING AGREEMENTS.— (1) IN GENERAL.—Notwithstanding section 13031(e) of the 

Consolidated Omnibus Budget Reconciliation Act of 1985 (19 

U.S.C. 58c(e)) and section 286(g) of the Immigration and Nationality Act (8 U.S.C. 1356(g)), any cost sharing agreement 

with an airport authority authorized under subsection (a) may 

provide for the airport authority’s payment to U.S. Customs 

and Border Protection of its initial preclearance operations 

costs. 

(2) TIMING OF PAYMENTS.—The airport authority’s payment 

to U.S. Customs and Border Protection for its initial 


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preclearance operations costs may be made in advance of the incurrence of the costs or on a reimbursable basis. 

(c) ACCOUNT.— (1) IN GENERAL.—All amounts collected pursuant to any 

cost sharing agreement authorized under subsection (a)— 

(A) shall be credited as offsetting collections to the currently applicable appropriation, account, or fund of U.S. 

Customs and Border Protection; 

(B) shall remain available, until expended, for the purposes for which such appropriation, account, or fund is authorized to be used; and 

(C) may be collected and shall be available only to the 

extent provided in appropriations Acts. 

(2) RETURN OF UNUSED FUNDS.—Any advances or reimbursements not used by U.S. Customs and Border Protection 

may be returned to the relevant airport authority. 

(3) RULE OF CONSTRUCTION.—Nothing in this subsection 

may be construed to preclude the use of appropriated funds 

from sources other than the payments collected under this subtitle to pay initial preclearance operation costs. 

(d) DEFINED TERM.— (1) IN GENERAL.—In this section, the term ‘‘initial 

preclearance operations costs’’ means the costs incurred, or expected to be incurred, by U.S. Customs and Border Protection 

to establish or maintain preclearance operations at an airport 

in a foreign country, including costs relating to— 

(A) hiring, training, and equipping new U.S. Customs 

and Border Protection officers who will be stationed at 

United States domestic ports of entry or other U.S. Customs 

and Border Protection facilities to backfill U.S. Customs 

and Border Protection officers to be stationed at an airport 

in a foreign country to conduct preclearance operations; 

and 

(B) visits to the airport authority conducted by U.S. 

Customs and Border Protection personnel necessary to prepare for the establishment or maintenance of preclearance 

operations at such airport, including the compensation, 

travel expenses, and allowances payable to such personnel 

attributable to such visits. 

(2) EXCEPTION.—The costs described in paragraph (1)(A) 

shall not include the salaries and benefits of new U.S. Customs 

and Border Protection officers once such officers are permanently stationed at a domestic United States port of entry or 

other domestic U.S. Customs and Border Protection facility 

after being hired, trained, and equipped. 

(e) RULE OF CONSTRUCTION.—Except as otherwise provided in 

this section, nothing in this section may be construed as affecting 

the responsibilities, duties, or authorities of U.S. Customs and Border Protection. 

SEC. 818. COLLECTION AND DISPOSITION OF FUNDS COLLECTED FOR 

IMMIGRATION INSPECTION SERVICES AND 

PRECLEARANCE ACTIVITIES. 

(a) IMMIGRATION AND NATIONALITY ACT.—Section 286(i) of the 

Immigration and Nationality Act (8 U.S.C. 1356(i)) is amended by 

striking the last sentence and inserting the following: ‘‘ReimburseVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00102 Fmt 6659 Sfmt 6603 E:\HR\OC\HR376.XXX HR376

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ments under this subsection may be collected in advance of the provision of such immigration inspection services. Notwithstanding 

subsection (h)(1)(B), and only to the extent provided in appropriations Acts, any amounts collected under this subsection shall be 

credited as offsetting collections to the currently applicable appropriation, account, or fund of U.S. Customs and Border Protection, 

remain available until expended, and be available for the purposes 

for which such appropriation, account, or fund is authorized to be 

used.’’. 

(b) FARM SECURITY AND RURAL INVESTMENT ACT OF 2002.— 

Section 10412(b) of the Farm Security and Rural Investment Act of 

2002 (7 U.S.C. 8311(b)) is amended to read as follows: 

‘‘(b) FUNDS COLLECTED FOR PRECLEARANCE.—Funds collected 

for preclearance activities— 

‘‘(1) may be collected in advance of the provision of such activities; 

‘‘(2) shall be credited as offsetting collections to the currently applicable appropriation, account, or fund of U.S. Customs and Border Protection; 

‘‘(3) shall remain available until expended; 

‘‘(4) shall be available for the purposes for which such appropriation, account, or fund is authorized to be used; and 

‘‘(5) may be collected and shall be available only to the extent provided in appropriations Acts.’’. 

SEC. 819. APPLICATION TO NEW AND EXISTING PRECLEARANCE OPERATIONS. 

Except for sections 814(d), 815, 817, and 818, this subtitle shall 

only apply to the establishment of preclearance operations in a foreign country in which no preclearance operations have been established as of the date of the enactment of this Act. 

TITLE IX—MISCELLANEOUS PROVISIONS 

SEC. 901. DE MINIMIS VALUE. 

(a) FINDINGS.—Congress makes the following findings: 

(1) Modernizing international customs is critical for United 

States businesses of all sizes, consumers in the United States, 

and the economic growth of the United States. 

(2) Higher thresholds for the value of articles that may be 

entered informally and free of duty provide significant economic 

benefits to businesses and consumers in the United States and 

the economy of the United States through costs savings and reductions in trade transaction costs. 

(b) SENSE OF CONGRESS.—It is the sense of Congress that the 

United States Trade Representative should encourage other countries, through bilateral, regional, and multilateral fora, to establish 

commercially meaningful de minimis values for express and postal 

shipments that are exempt from customs duties and taxes and from 

certain entry documentation requirements, as appropriate. 

(c) 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’’. 

(d) EFFECTIVE DATE.—The amendment made by subsection (c) 

shall apply with respect to articles entered, or withdrawn from 


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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 Security and Accountability For Every Port 

Act of 2006 (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— 


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‘‘(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 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 .......... Free ’’. 

(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: 


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‘‘(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.— 


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‘‘(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 

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sisting 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)’’; 


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(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’’; 

(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);’’; and 

(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.’’; 

(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— 


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‘‘(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, 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 on the imported merchandise, which were imposed under Federal 

law upon entry or importation of the imported merchandise, and may require the claim to be based upon the averVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00110 Fmt 6659 Sfmt 6603 E:\HR\OC\HR376.XXX HR376

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age per unit duties, taxes, and fees as reported on the entry 

summary line item or, if not reported on the entry summary 

line item, as otherwise allocated by U.S. Customs and Border Protection, except that where there is substitution of the 

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 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 MANUFACTURED ARTI- CLES INTO WHICH IMPORTED OR 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 equal to 99 percent of the duties, taxes, and fees 

paid on the imported merchandise incorporated into an article that is exported or destroyed, which were imposed 

under Federal law upon entry or importation of the imported merchandise incorporated into an article that is exported or destroyed, and may require the claim to be based 

upon the average per unit duties, taxes, and fees as reported on the entry summary line item, or if not reported 

on the entry summary line item, as otherwise allocated by 

U.S. Customs and Border Protection, 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 


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‘‘(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). 

‘‘(D) EXCEPTIONS.—The calculations set forth in subparagraphs (B) and (C) shall not apply to claims for wine 

based on subsection (j)(2) and claims based on subsection 

(p) and instead— 

‘‘(i) for any drawback claim for wine based on subsection (j)(2), the amount of the refund shall be equal 

to 99 percent of the duties, taxes, and fees paid with respect to the imported merchandise, without regard to 

the limitations in subparagraphs (B)(i) and (B)(ii); and 

‘‘(ii) for any drawback claim based on subsection 

(p), the amount of the refund shall be subject to the 

limitations set out in paragraph (4) of that subsection 

and without regard to subparagraph (B)(i), (B)(ii), 

(C)(i), or (C)(ii). 

‘‘(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 regVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00112 Fmt 6659 Sfmt 6603 E:\HR\OC\HR376.XXX HR376

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ulations prescribed by the Secretary of the Treasury under subsection (l)’’; and 

(3) in paragraph (3), by striking ‘‘they contain’’ each place 

it appears 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 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). 


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(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 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) shall 

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) except as provided in paragraph (3), 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 the Committee on Finance of the Senate and the Committee on Ways and Means of the House of 

Representatives a report on— 


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(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) of this section. 

(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, 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. 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 and the Committee 

on Homeland Security and Governmental Affairs of the Senate and 

the Committee on Ways and Means 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, including an identification of the authority under which the program 

operates. 

(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 and security benefits (if applicable) 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) The total operating expenses of the program during that 

year. 

(7) A detailed accounting of how the fees collected under the 

agreement have been spent during that year. 

(8) A summary of any complaints or criticism received by 

U.S. Customs and Border Protection during that year regarding 

the agreement. 

(9) An assessment of the compliance of the entity described 

in paragraph (2) with the terms of the agreement. 

(10) Recommendations with respect to how activities conducted pursuant to the agreement could function more effectively or better produce economic benefits and security benefits 

(if applicable). 


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116 

(11) 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. 

(12) If the entity described in paragraph (2) is an operator 

of an airport— 

(A) a detailed account of the revenue collected by U.S. 

Customs and Border Protection at the airport from— 

(i) fees collected under the agreement; and 

(ii) fees collected from sources other than under the 

agreement, including fees paid by passengers and air 

carriers; and 

(B) an assessment of the revenue described in subparagraph (A) compared with the operating costs of U.S. Customs and Border Protection at the airport. 

(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); 

(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); 

(3) the program under which U.S. Customs and Border 

Protection collects a fee for the use of customs services at designated facilities under section 236 of the Trade and Tariff Act 

of 1984 (19 U.S.C. 58b); or 

(4) the program established by subtitle B of title VIII of this 

Act authorizing U.S. Customs and Border Protection to establish preclearance operations in foreign countries. 

SEC. 908. CHARTER FLIGHTS. 

Section 13031(e)(1) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(e)(1)) is amended— 

(1) by striking ‘‘(1) Notwithstanding section 451 of the Tariff Act of 1930 (19 U.S.C. 1451) or any other provision of law 

(other than paragraph (2))’’ and inserting the following: 

‘‘(1)(A) Notwithstanding section 451 of the Tariff Act of 1930 

(19 U.S.C. 1451) or any other provision of law (other than subparagraph (B) and paragraph (2))’’; and 

(2) by adding at the end the following: 

‘‘(B)(i) An appropriate officer of U.S. Customs and Border Protection may assign a sufficient number of employees of U.S. Customs and Border Protection (if available) to perform services described in clause (ii) for a charter air carrier (as defined in section 

40102 of title 49, United States Code) for a charter flight arriving 

after normal operating hours at an airport that is an established 

port of entry serviced by U.S. Customs and Border Protection, notwithstanding that overtime funds for those services are not available, if the charter air carrier— 

‘‘(I) not later than 4 hours before the flight arrives, specifically requests that such services be provided; and 


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‘‘(II) pays any overtime fees incurred in connection with 

such services. 

‘‘(ii) Services described in this clause are customs services for 

passengers and their baggage or any other similar service that could 

lawfully be performed during regular hours of operation.’’. 

SEC. 909. 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 $45,000,000,000 in goods and services is 

traded annually between the two countries, in addition to 

roughly $10,000,000,000 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; 22 U.S.C. 

8601 et seq.) and the United States-Israel Strategic Partnership 

Act of 2014 (Public Law 113–296; 128 Stat. 4075). 

(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 (50 U.S.C. 4601 et seq.) (as continued 

in effect pursuant to the International Emergency Economic 

Powers Act (50 U.S.C. 1701 et seq.)), including sections to 

ensure foreign persons comply with applicable reporting requirements relating to the Boycott; 

(C) enactment of the Tax Reform Act of 1976 (Public 

Law 94–455; 90 Stat. 1520) 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 economic cooperation between the United States and Israel 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; 


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118 

(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 of, divestment from, or sanctions against 

Israel; 

(5) notes that boycotts of, divestment from, and sanctions 

against Israel by governments, governmental bodies, quasi-governmental bodies, international organizations, and other such 

entities are contrary to principle of nondiscrimination under the 

GATT 1994 (as defined in section 2(1)(B) of the Uruguay Round 

Agreements Act (19 U.S.C. 3501(1)(B))); 

(6) encourages the inclusion of politically motivated actions 

that penalize or otherwise limit commercial relations specifically with Israel such as boycotts of, divestment from, or sanctions against Israel as a topic of discussion at the U.S.-Israel 

Joint Economic Development Group (JEDG) to support the 

strengthening of the United States-Israel commercial relationship and combat any commercial discrimination against Israel; 

and 

(7) supports efforts to prevent investigations or prosecutions 

by governments or international organizations of United States 

persons solely on the basis of such persons doing business with 

Israel, with Israeli entities, or in any territory controlled by 

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 boycotts of, divestment from, and sanctions against Israel and to seek the 

elimination of politically motivated nontariff barriers on 

Israeli goods, services, or other commerce imposed on 

Israel. 

(C) To seek the elimination of state-sponsored 

unsanctioned foreign boycotts of 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 such date of enactment. 

(d) REPORT ON POLITICALLY MOTIVATED ACTS OF BOYCOTT OF, 

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 PresiVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00118 Fmt 6659 Sfmt 6603 E:\HR\OC\HR376.XXX HR376

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119 

dent shall submit to Congress a report on politically motivated 

boycotts of, 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 nontariff 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 solely on the 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 any territory controlled by Israel. 

(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 in Israel or any territory controlled 

by Israel or with Israeli entities constitutes a violation of law. 

(f) DEFINITIONS.—In this section: 

(1) BOYCOTT OF, DIVESTMENT FROM, AND SANCTIONS

AGAINST ISRAEL.—The term ‘‘boycott of, divestment from, and 

sanctions against Israel’’ means actions by states, nonmember 

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 any territory controlled by Israel. 

(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) an individual who is not a United States person or 

an alien lawfully admitted for permanent residence into the 

United States; or 


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(B) a corporation, partnership, or other nongovernmental entity which is not a United States person. 

(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 that 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. 910. 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. 


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SEC. 911. VOLUNTARY RELIQUIDATIONS BY U.S. CUSTOMS AND BORDER PROTECTION. 

Section 501 of the Tariff Act of 1930 (19 U.S.C. 1501) is amended— 

(1) in the section heading, by striking ‘‘THE CUSTOMS SERVICE’’ and inserting ‘‘U.S. CUSTOMS AND BORDER PROTECTION’’; 

(2) by striking ‘‘the Customs Service’’ and inserting ‘‘U.S. 

Customs and Border Protection’’; and 

(3) by striking ‘‘on which notice of the original liquidation 

is given or transmitted to the importer, his consignee or agent’’ 

and inserting ‘‘of the original liquidation’’. 

SEC. 912. TARIFF CLASSIFICATION OF RECREATIONAL PERFORMANCE 

OUTERWEAR. 

(a) REPEAL.—Section 601 of the Trade Preferences Extension 

Act of 2015 (Public Law 114–27; 129 Stat. 387) is repealed, and any 

provision of law amended by such section is restored as if such section had not been enacted into law. 

(b) AMENDMENTS TO ADDITIONAL U.S. NOTES.—The additional 

U.S. notes to chapter 62 of the Harmonized Tariff Schedule of the 

United States are amended— 

(1) in additional U.S. note 2— 

(A) by striking ‘‘For the purposes of subheadings’’ and 

all that follows through ‘‘6211.20.15’’ and inserting ‘‘For 

the purposes of subheadings 6201.92.17, 6201.92.35, 

6201.93.47, 6201.93.60, 6202.92.05, 6202.92.30, 6202.93.07, 

6202.93.48, 6203.41.01, 6203.41.25, 6203.43.03, 6203.43.11, 

6203.43.55, 6203.43.75, 6204.61.05, 6204.61.60, 6204.63.02, 

6204.63.09, 6204.63.55, 6204.63.75 and 6211.20.15’’; 

(B) by striking ‘‘(see ASTM designations D 3600-81 

and D 3781-79)’’ and inserting ‘‘(see current version of 

ASTM D7017)’’; and 

(C) by striking ‘‘in accordance with AATCC Test Method 35-1985.’’ and inserting ‘‘in accordance with the current 

version of AATCC Test Method 35.’’; and 

(2) by adding at the end the following new note: 

‘‘3. (a) When used in a subheading of this chapter or immediate 

superior text thereto, the term ‘recreational performance outerwear’ 

means trousers (including, but not limited to, ski or snowboard 

pants, and ski or snowboard pants intended for sale as parts of skisuits), coveralls, bib and brace overalls, jackets (including, but not 

limited to, full zip jackets, ski jackets and ski jackets intended for 

sale as parts of ski-suits), windbreakers and similar articles (including padded, sleeveless jackets), the foregoing of fabrics of cotton, 

wool, hemp, bamboo, silk or manmade fibers, or a combination of 

such fibers; that are either water resistant within the meaning of 

additional U.S. note 2 to this chapter or treated with plastics, or 

both; with critically sealed seams, and with 5 or more of the following features (as further provided herein): 

‘‘(i) insulation for cold weather protection; 

‘‘(ii) pockets, at least one of which has a zippered, hook and 

loop, or other type of closure; 

‘‘(iii) elastic, draw cord or other means of tightening 

around the waist or leg hems, including hidden leg sleeves with 

a means of tightening at the ankle for trousers and tightening 

around the waist or bottom hem for jackets; 


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‘‘(iv) venting, not including grommet(s); 

‘‘(v) articulated elbows or knees; 

‘‘(vi) reinforcement in one of the following areas: the elbows, 

shoulders, seat, knees, ankles or cuffs; 

‘‘(vii) weatherproof closure at the waist or front; 

‘‘(viii) multi-adjustable hood or adjustable collar; 

‘‘(ix) adjustable powder skirt, inner protective skirt or adjustable inner protective cuff at sleeve hem; 

‘‘(x) construction at the arm gusset that utilizes fabric, design or patterning to allow radial arm movement; or 

‘‘(xi) odor control technology. 

The term ‘recreational performance outerwear’ does not include occupational outerwear. 

‘‘(b) For purposes of this note, the following terms have the following meanings: 

‘‘(i) The term ‘treated with plastics’ refers to textile fabrics 

impregnated, coated, covered or laminated with plastics, as described in note 2 to chapter 59. 

‘‘(ii) The term ‘sealed seams’ means seams that have been 

covered by means of taping, gluing, bonding, cementing, fusing, 

welding or a similar process so that air and water cannot pass 

through the seams when tested in accordance with the current 

version of AATCC Test Method 35. 

‘‘(iii) The term ‘critically sealed seams’ means— 

‘‘(A) for jackets, windbreakers and similar articles (including padded, sleeveless jackets), sealed seams that are 

sealed at the front and back yokes, or at the shoulders, arm 

holes, or both, where applicable; and 

‘‘(B) for trousers, overalls and bib and brace overalls 

and similar articles, sealed seams that are sealed at the 

front (up to the zipper or other means of closure) and back 

rise. 

‘‘(iv) The term ‘insulation for cold weather protection’ 

means insulation that meets a minimum clo value of 1.5 per 

ASTM F 2732. 

‘‘(v) The term ‘venting’ refers to closeable or permanent constructed openings in a garment (excluding front, primary zipper 

closures and grommet(s)) to allow increased expulsion of builtup heat during outdoor activities. In a jacket, such openings are 

often positioned on the underarm seam of a garment but may 

also be placed along other seams in the front or back of a garment. In trousers, such openings are often positioned on the 

inner or outer leg seams of a garment but may also be placed 

along other seams in the front or back of a garment. 

‘‘(vi) The term ‘articulated elbows or knees’ refers to the construction of a sleeve (or pant leg) to allow improved mobility at 

the elbow (or knee) through the use of extra seams, darts, gussets or other means. 

‘‘(vii) The term ‘reinforcement’ refers to the use of a double 

layer of fabric or section(s) of fabric that is abrasion-resistant 

or otherwise more durable than the face fabric of the garment. 

‘‘(viii) The term ‘weatherproof closure’ means a closure (including, but not limited to, laminated or coated zippers, storm 

flaps or other weatherproof construction) that has been reinforced or engineered in a manner to reduce the penetration or 


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absorption of moisture or air through an opening in the garment. 

‘‘(ix) The term ‘multi-adjustable hood or adjustable collar’ 

means, in the case of a hood, a hood into which is incorporated 

two or more draw cords, adjustment tabs or elastics, or, in the 

case of a collar, a collar into which is incorporated at least one 

draw cord, adjustment tab, elastic or similar component, to 

allow volume adjustments around a helmet, or the crown of the 

head, neck or face. 

‘‘(x) The terms ‘adjustable powder skirt’ and ‘inner protective skirt’ refer to a partial lower inner lining with means of 

tightening around the waist for additional protection from the 

elements. 

‘‘(xi) The term ‘arm gusset’ means construction at the arm 

of a gusset that utilizes an extra fabric piece in the underarm, 

usually diamond- or triangular-shaped, designed or patterned 

to allow radial arm movement. 

‘‘(xii) The term ‘radial arm movement’ refers to unrestricted, 

180-degree range of motion for the arm while wearing performance outerwear. 

‘‘(xiii) The term ‘odor control technology’ means the incorporation into a fabric or garment of materials, including, but not 

limited to, activated carbon, silver, copper or any combination 

thereof, capable of adsorbing, absorbing or reacting with 

human odors, or effective in reducing the growth of odor-causing bacteria. 

‘‘(xiv) The term ‘occupational outerwear’ means outerwear 

garments, including uniforms, of a kind principally used in the 

work place and specially designed to provide protection from 

work place hazards such as fire, electrical, abrasion or chemical 

hazards, or impacts, cuts and punctures. 

‘‘(c) The importer of goods entered as ‘recreational performance 

outerwear’ under a particular subheading of this chapter shall 

maintain records demonstrating that the entered goods meet the 

terms of this note, including such information as is necessary to 

demonstrate the presence of the specific features that render the 

goods eligible for classification as ‘recreational performance outerwear’.’’. 

(c) TARIFF CLASSIFICATIONS.—Chapter 62 of the Harmonized 

Tariff Schedule of the United States is amended as follows: 

(1)(A) By striking subheadings 6201.91.10 through 

6201.91.20 and inserting the following, with the superior text to 

subheading 6201.91.03 having the same degree of indentation 

as the article description for subheading 6201.91.10 (as in effect 

on the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

6201.91.03 Padded, sleeveless 

jackets ....................... 8.5% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG) 

2.5% (OM) 

58.5% 


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6201.91.05 Other ......................... 49.7¢/kg + 

19.7% 

Free (AU,BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG) 

14.9¢/kg +5.9% 

(OM) 

52.9¢/kg + 58.5% 

Other: 

6201.91.25 Padded, sleeveless 

jackets ....................... 8.5% Free (AU,BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG) 

2.5% (OM) 

58.5% 

6201.91.40 Other ......................... 49.7¢/kg + 

19.7% 

Free (AU,BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG) 

14.9¢/kg +5.9% 

(OM) 52.9¢/kg + 58.5% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6201.91.10 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6201.91.03 and 6201.91.25 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 

(C) The staged reductions in the special rate of duty proclaimed for subheading 6201.91.20 of such Schedule before the 

effective date of this section shall apply to subheadings 

6201.91.05 and 6201.91.40 of such Schedule, as added by subparagraph (A), on and after such effective date. 

(2) By striking subheadings 6201.92.10 through 6201.92.20 

and inserting the following, with the superior text to subheading 6201.92.05 having the same degree of indentation as 

the article description for subheading 6201.92.10 (as in effect on 

the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

6201.92.05 Containing 15 percent or 

more by weight of down 

and waterfowl plumage 

and of which down comprises 35 percent or more 

by weight; containing 10 

percent or more by weight 

of down .............................. 4.4% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

60% 

Other: 

6201.92.17 Water resistant .............. 6.2% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

37.5% 

6201.92.19 Other .............................. 9.4% Free (AU,BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

90% 

Other: 


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6201.92.30 Containing 15 percent or 

more by weight of down 

and waterfowl plumage 

and of which down comprises 35 percent or more 

by weight; containing 10 

percent or more by weight 

of down .............................. 4.4% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

60% 

Other: 

6201.92.35 Water resistant .............. 6.2% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

37.5% 

6201.92.45 Other .............................. 9.4% Free (AU,BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 90% ’’. 

(3) By striking subheadings 6201.93.10 through 6201.93.35 

and inserting the following, with the superior text to subheading 6201.93.15 having the same degree of indentation as 

the article description for subheading 6201.93.10 (as in effect on 

the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

6201.93.15 Containing 15 percent 

or more by weight of 

down and waterfowl 

plumage and of 

which down comprises 35 percent or 

more by weight; containing 10 percent or 

more by weight of 

down .......................... 4.4% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

60% 

Other: 

6201.93.18 Padded, sleeveless 

jackets .................. 14.9% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

76% 

Other: 

6201.93.45 Containing 36 

percent or more 

by weight of 

wool or fine 

animal hair ...... 49.5¢/kg + 

19.6% 

Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

52.9¢/kg + 58.5% 

Other: 


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6201.93.47 Water resistant ............... 7.1% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

65% 

6201.93.49 Other ............ 27.7% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

90% 

Other: 

6201.93.50 Containing 15 percent 

or more by weight of 

down and waterfowl 

plumage and of 

which down comprises 35 percent or 

more by weight; containing 10 percent or 

more by weight of 

down .......................... 4.4% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

60% 

Other: 

6201.93.52 Padded, sleeveless 

jackets .................. 14.9% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

76% 

Other: 

6201.93.55 Containing 36 

percent or more 

by weight of 

wool or fine 

animal hair ...... 49.5¢/kg + 

19.6% 

Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

52.9¢/kg + 58.5% 

Other: 

6201.93.60 Water resistant ............... 7.1% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

65% 

6201.93.65 Other ............ 27.7% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 90% ’’. 

(4) By striking subheadings 6201.99.10 through 6201.99.90 

and inserting the following, with the superior text to subheading 6201.99.05 having the same degree of indentation as 

the article description for subheading 6201.99.10 (as in effect on 

the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 


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127 

6201.99.05 Containing 70 percent or 

more by weight of silk or 

silk waste ........................... Free 35% 

6201.99.15 Other ................................... 4.2% Free (AU,BH, CA, CL, 

CO, E*, IL, JO, KR, 

MA, MX, OM, P, PA, 

PE, SG) 

35% 

Other: 

6201.99.50 Containing 70 percent or 

more by weight of silk or 

silk waste ........................... Free 35% 

6201.99.80 Other ................................... 4.2% Free (AU, BH, CA, CL, 

CO, E*, IL, JO, KR, 

MA, MX, OM, P, PA, 

PE, SG) 35% ’’. 

(5)(A) By striking subheadings 6202.91.10 through 

6202.91.20 and inserting the following, with the superior text to 

subheading 6202.91.03 having the same degree of indentation 

as the article description for subheading 6202.91.10 (as in effect 

on the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

6202.91.03 Padded, sleeveless 

jackets ....................... 14% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG) 

4.2% (OM) 

58.5% 

6202.91.15 Other ......................... 36¢/kg + 16.3% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG) 

10.8¢/kg + 4.8% 

(OM).

46.3¢/kg +58.5% 

Other: 

6202.91.60 Padded, sleeveless 

jackets ....................... 14% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG) 

4.2% (OM) .......

58.5% 

6202.91.90 Other ......................... 36¢/kg + 16.3% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG)

10.8¢/kg + 4.8% 

(OM) ............. 46.3¢/kg + 58.5% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6202.91.10 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6202.91.03 and 6202.91.60 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 

(C) The staged reductions in the special rate of duty proclaimed for subheading 6202.91.20 of such Schedule before the 

effective date of this section shall apply to subheadings 

6202.91.15 and 6202.91.90 of such Schedule, as added by subparagraph (A), on and after such effective date. 


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(6) By striking subheadings 6202.92.10 through 6202.92.20 

and inserting the following, with the superior text to subheading 6202.92.03 having the same degree of indentation as 

the article description for subheading 6202.92.10 (as in effect on 

the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

6202.92.03 Containing 15 percent or 

more by weight of down 

and waterfowl plumage 

and of which down comprises 35 percent or more 

by weight; containing 10 

percent or more by weight 

of down .............................. 4.4% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

60% 

Other: 

6202.92.05 Water resistant .............. 6.2% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

37.5% 

6202.92.12 Other .............................. 8.9% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX,OM, P, PA,PE, SG) 

90% 

Other: 

6202.92.25 Containing 15 percent or 

more by weight of down 

and waterfowl plumage 

and of which down comprises 35 percent or more 

by weight; containing 10 

percent or more by weight 

of down .............................. 4.4% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

60% 

Other: 

6202.92.30 Water resistant .............. 6.2% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

37.5% 

6202.92.90 Other .............................. 8.9% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) ............. 90% ’’. 

(7) By striking subheadings 6202.93.10 through 6202.93.50 

and inserting the following, with the superior text to subheading 6202.93.01 having the same degree of indentation as 

the article description for subheading 6202.93.10 (as in effect on 

the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 


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129 

6202.93.01 Containing 15 percent 

or more by weight of 

down and waterfowl 

plumage and of 

which down comprises 35 percent or 

more by weight; containing 10 percent or 

more by weight of 

down .......................... 4.4% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

60% 

Other: 

6202.93.03 Padded, sleeveless 

jackets .................. 14.9% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

76% 

Other: 

6202.93.05 Containing 36 

percent or more 

by weight of 

wool or fine 

animal hair ...... 43.4¢/kg + 

19.7% 

Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

46.3¢/kg + 58.5% 

Other: 

6202.93.07 Water resistant ............... 7.1% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

65% 

6202.93.09 Other ............ 27.7% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

90% 

Other: 

6202.93.15 Containing 15 percent 

or more by weight of 

down and waterfowl 

plumage and of 

which down comprises 35 percent or 

more by weight; containing 10 percent or 

more by weight of 

down .......................... 4.4% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

60% 

Other: 

6202.93.25 Padded, sleeveless 

jackets .................. 14.9% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

76% 


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Other: 

6202.93.45 Containing 36 

percent or more 

by weight of 

wool or fine 

animal hair ...... 43.4¢/kg + 

19.7% 

Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

46.3¢/kg + 58.5% 

Other: 

6202.93.48 Water resistant ............... 7.1% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

65% 

6202.93.55 Other ............ 27.7% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 90% ’’. 

(8) By striking subheadings 6202.99.10 through 6202.99.90 

and inserting the following, with the superior text to subheading 6202.99.03 having the same degree of indentation as 

the article description for subheading 6202.99.10 (as in effect on 

the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

6202.99.03 Containing 70 percent or 

more by weight of silk or 

silk waste ........................... Free 35% 

6202.99.15 Other ................................... 2.8% Free (AU,BH, CA, CL, 

CO, E*, IL, JO, KR, 

MA,MX, OM, P, PA, 

PE,SG) 

35% 

Other: 

6202.99.60 Containing 70 percent or 

more by weight of silk or 

silk waste ........................... Free 35% 

6202.99.80 Other ................................... 2.8% Free (AU, BH, CA, CL, 

CO, E*, IL, JO, KR, 

MA, MX, OM, P, PA, 

PE, SG) ............. 35% ’’. 

(9)(A) By striking subheadings 6203.41 through 6203.41.20 

and inserting the following, with the article description for subheading 6203.41 having the same degree of indentation as the 

article description for subheading 6203.41 (as in effect on the 

day before the effective date of this section): 

‘‘ 6203.41 Of wool or fine animal 

hair: 

Recreational performance outerwear: 

Trousers, breeches 

and shorts: 


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131 

6203.41.01 Trousers, 

breeches, containing elastomeric fiber, 

water resistant, 

without belt 

loops, weighing 

more than 9 kg 

per dozen ......... 7.6% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

P, PA, PE,SG) 

2.2% (OM) 

52.9¢/kg + 58.5% 

Other: 

6203.41.03 Trousers of 

worsted wool 

fabric, made 

of wool yarn 

having an 

average fiber 

diameter of 

18.5 microns 

or less .......... 41.9¢/kg + 

16.3% 

Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

P, PA, PE,SG) 

12.5¢/kg + 4.8% 

(OM) 

52.9¢/kg +58.5% 

6203.41.06 Other ............ 41.9¢/kg + 

16.3% 

Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

P, PA, PE,SG) 

12.5¢/kg + 4.8% 

(OM) 

52.9¢/kg + 58.5% 

6203.41.08 Bib and brace 

overalls ................. 8.5% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

P, PA, PE, SG) 

2.5% (OM) 

63% 

Other: 

Trousers, breeches 

and shorts: 

6203.41.25 Trousers and 

breeches, containing elastomeric fiber, 

water resistant, 

without belt 

loops, weighing 

more than 9 kg 

per dozen ......... 7.6% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

P, PA, PE,SG) 

2.2% (OM) 

52.9¢/kg +58.5% 

Other: 


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6203.41.30 Trousers of 

worsted wool 

fabric, made 

of wool yarn 

having an 

average fiber 

diameter of 

18.5 microns 

or less .......... 41.9¢/kg +16.3% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

P, PA, PE,SG) 

12.5¢/kg + 4.8% 

(OM) 

52.9¢/kg +58.5% 

6203.41.60 Other ............ 41.9¢/kg +16.3% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

P, PA, PE,SG) 

12.5¢/kg + 4.8% 

(OM) 

52.9¢/kg +58.5% 

6203.41.80 Bib and brace 

overalls ................. 8.5% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

P, PA, PE,SG) 

2.5% (OM) 63% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6203.41.05 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6203.41.01 and 6203.41.25 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 

(C) The staged reductions in the special rate of duty proclaimed for subheading 6203.41.12 of such Schedule before the 

effective date of this section shall apply to subheadings 

6203.41.03 and 6203.41.30 of such Schedule, as added by subparagraph (A), on and after such effective date. 

(D) The staged reductions in the special rate of duty proclaimed for subheading 6203.41.18 of such Schedule before the 

effective date of this section shall apply to subheadings 

6203.41.06 and 6203.41.60 of such Schedule, as added by subparagraph (A), on and after such effective date. 

(E) The staged reductions in the special rate of duty proclaimed for subheading 6203.41.20 of such Schedule before the 

effective date of this section shall apply to subheadings 

6203.41.08 and 6203.41.80 of such Schedule, as added by subparagraph (A), on and after such effective date. 

(10)(A) By striking subheadings 6203.42.10 through 

6203.42.40 and inserting the following, with the superior text to 

subheading 6203.42.03 having the same degree of indentation 

as the article description for subheading 6203.42.10 (as in effect 

on the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 


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133 

6203.42.03 Containing 15 percent or 

more by weight of down 

and waterfowl plumage 

and of which down comprises 35 percent or more 

by weight; containing 10 

percent or more by weight 

of down .............................. Free 60% 

Other: 

6203.42.05 Bib and brace overalls .. 10.3% Free (AU,BH, CA, 

CL,CO, IL, JO,KR, 

MA,MX,OM, P, PA,PE, 

SG) 

90% 

6203.42.07 Other .............................. 16.6% Free (AU,BH, CA, 

CL,CO, IL, JO, 

MA,MX,OM, P, PA,PE, 

SG) 

9.9% (KR) 

90% 

Other: 

6203.42.17 Containing 15 percent or 

more by weight of down 

and waterfowl plumage 

and of which down comprises 35 percent or more 

by weight; containing 10 

percent or more by weight 

of down .............................. Free 60% 

Other: 

6203.42.25 Bib and brace overalls .. 10.3% Free (AU,BH, CA, 

CL,CO, IL, JO,KR, 

MA,MX,OM, P, PA,PE, 

SG) 

90% 

6203.42.45 Other .............................. 16.6% Free (AU,BH, CA, 

CL,CO, IL, JO, MA, 

MX, OM, P, PA,PE, 

SG) 

9.9% (KR) 90% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6203.42.40 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6203.42.07 and 6203.42.45 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 

(11)(A) By striking subheadings 6203.43.10 through 

6203.43.40 and inserting the following, with the superior text to 

subheading 6203.43.01 having the same degree of indentation 

as the article description for subheading 6203.43.10 (as in effect 

on the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 


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134 

6203.43.01 Containing 15 percent or 

more by weight of down 

and waterfowl plumage 

and of which down comprises 35 percent or more 

by weight; containing 10 

percent or more by weight 

of down .............................. Free 60% 

Other: 

Bib and brace overalls:

6203.43.03 Water resistant .......... 7.1% Free (AU,BH, CA, CL, 

CO, IL, JO, KR, 

MA,MX,OM, P, 

PA,PE,SG) 

65% 

6203.43.05 Other .......................... 14.9% Free (AU,BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX,OM, P, PA, PE,SG) 

76% 

Other: 

6203.43.09 Containing 36 percent 

or more by weight of 

wool or fine animal 

hair ............................ 49.6¢/kg + 

19.7% 

Free (AU,BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX,OM, P, PA,PE,SG) 

52.9¢/kg + 

58.5% 

Other: 

6203.43.11 Water resistant 

trousers or breeches .......................... 7.1% Free (AU,BH, CA, CL, 

CO, IL, JO, MA, 

MX,OM, P, PA,PE,SG) 

1.4% (KR) 

65% 

6203.43.13 Other ..................... 27.9% Free (AU,BH, CA, CL, 

CO, IL, JO, MA, 

MX,OM, P, PA, PE,SG) 

5.5% (KR) 

90% 

Other: 

6203.43.45 Containing 15 percent or 

more by weight of down 

and waterfowl plumage 

and of which down comprises 35 percent or more 

by weight; containing 10 

percent or more by weight 

of down .............................. Free 60% 

Other: 

Bib and brace overalls:

6203.43.55 Water resistant .......... 7.1% Free (AU,BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX,OM, P, PA, PE,SG) 

65% 

6203.43.60 Other .......................... 14.9% Free (AU,BH, CA, CL, 

CO,IL,JO, KR, MA, 

MX,OM, P, PA, PE,SG) 

76% 

Other: 

6203.43.65 Certified hand-loomed 

and folklore products 12.2% Free (AU,BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX,OM, P, PA, PE,SG) 

76% 


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135 

Other: 

6203.43.70 Containing 36 percent or more by 

weight of wool or 

fine animal hair ... 49.6¢/kg + 

19.7% 

Free (AU,BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX,OM, P, PA, PE,SG) 

52.9¢/kg + 

58.5% 

Other: 

6203.43.75 Water resistant 

trousers or 

breeches ........... 7.1% Free (AU,BH, CA, CL, 

CO, IL, JO, MA, 

MX,OM, P, PA,PE,SG) 

1.4% (KR) 

65% 

6203.43.90 Other ................. 27.9% Free (AU,BH, CA, CL, 

CO, IL, JO, MA, 

MX,OM, P, PA, PE,SG) 

5.5% (KR) 90% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6203.43.35 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6203.43.11 and 6203.43.75 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 

(C) The staged reductions in the special rate of duty proclaimed for subheading 6203.43.40 of such Schedule before the 

effective date of this section shall apply to subheadings 

6203.43.13 and 6203.43.90 of such Schedule, as added by subparagraph (A), on and after such effective date. 

(12)(A) By striking subheadings 6203.49.10 through 

6203.49.80 and the immediate superior text to subheading 

6203.49.10, and inserting the following, with the superior text 

to subheading 6203.49.01 having the same degree of indentation as the article description for subheading 6203.49.10 (as in 

effect on the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

Of artificial fibers: 

6203.49.01 Bib and brace overalls .. 8.5% Free (AU,BH, CA, CL, 

CO, IL,JO, KR, MA, 

MX,OM, P, PA,PE, SG) 

76% 

6203.49.05 Trousers, breeches and 

shorts ............................. 27.9% Free (AU,BH, CA, CL, 

CO, IL,JO, KR, MA, 

MX,OM, P,PA,PE, SG) 

90% 

Of other textile materials: ..

6203.49.07 Containing 70 percent or 

more by weight of silk or 

silk waste ...................... Free 35% 

6203.49.09 Other .............................. 2.8% Free (AU,BH, CA, CL, 

CO, E*, IL, JO,MA, 

MX,OM, P, PA,PE, SG) 

0.5% (KR)

35% 

Other: 

Of artificial fibers: 


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136 

6203.49.25 Bib and brace overalls .. 8.5% Free (AU,BH, CA, CL, 

CO, IL,JO, KR, MA, 

MX,OM, P, PA,PE, SG) 

76% 

Trousers, breeches and 

shorts: 

6203.49.35 Certified hand-loomed 

and folklore products 12.2% Free (AU,BH, CA, CL, 

CO, IL,JO, KR, MA, 

MX,OM, P,PA,PE, SG) 

76% 

6203.49.50 Other .......................... 27.9% Free (AU,BH, CA, CL, 

CO, IL,JO, KR, MA, 

MX,OM, P,PA,PE, SG) 

90% 

Of other textile materials: ..

6203.49.60 Containing 70 percent or 

more by weight of silk or 

silk waste ...................... Free 35% 

6203.49.90 Other .............................. 2.8% Free (AU,BH, CA, CL, 

CO, E*, IL, JO,MA, 

MX,OM, P,PA,PE, SG) 

0.5% (KR) 35% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6203.49.80 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6203.49.09 and 6203.49.90 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 

(13)(A) By striking subheadings 6204.61.10 through 

6204.61.90 and inserting the following, with the superior text to 

subheading 6204.61.05 having the same degree of indentation 

as the article description for subheading 6204.61.10 (as in effect 

on the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

6204.61.05 Trousers and breeches, 

containing elastomeric 

fiber, water resistant, without belt loops, weighing 

more than 6 kg per dozen 7.6% Free (AU,BH, CA, CL, 

CO, IL,JO, KR, MA, 

MX, P, PA, PE, SG) 

2.2% (OM) 

58.5% 

6204.61.15 Other ................................... 13.6% Free (AU,BH, CA, CL, 

CO, IL,JO, KR, MA, 

MX, P, PA, PE, SG) 

4% (OM) 

58.5% 

Other: 

6204.61.60 Trousers and breeches, 

containing elastomeric 

fiber, water resistant, without belt loops, weighing 

more than 6 kg per dozen 7.6% Free (AU,BH, CA, CL, 

CO, IL,JO, KR, MA, 

MX, P, PA, PE, SG) 

2.2% (OM) 

58.5% 


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137 

6204.61.80 Other ................................... 13.6% Free (AU,BH, CA, CL, 

CO, IL,JO, KR, MA, 

MX, P, PA, PE, SG) 

4% (OM) 58.5% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6204.61.10 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6204.61.05 and 6204.61.60 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 

(C) The staged reductions in the special rate of duty proclaimed for subheading 6204.61.90 of such Schedule before the 

effective date of this section shall apply to subheadings 

6204.61.15 and 6204.61.80 of such Schedule, as added by subparagraph (A), on and after such effective date. 

(14)(A) By striking subheadings 6204.62.10 through 

6204.62.40 and inserting the following, with the superior text to 

subheading 6204.62.03 having the same degree of indentation 

as the article description for subheading 6204.62.10 (as in effect 

on the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

6204.62.03 Containing 15 percent or 

more by weight of down 

and waterfowl plumage 

and of which down comprises 35 percent or more 

by weight; containing 10 

percent or more by weight 

of down .............................. Free 60% 

Other: 

6204.62.05 Bib and brace overalls .. 8.9% Free (AU,BH, CA, 

CL,CO, IL, JO,KR, 

MA,MX, OM, P, PA, 

PE, SG) 

90% 

6204.62.15 Other .............................. 16.6% Free (AU,BH, CA, 

CL,CO, IL, JO, MA, 

MX,OM, P, PA,PE, SG) 

9.9% (KR) 

90% 

Other: 

6204.62.50 Containing 15 percent or 

more by weight of down 

and waterfowl plumage 

and of which down comprises 35 percent or more 

by weight; containing 10 

percent or more by weight 

of down .............................. Free 60% 

Other: 

6204.62.60 Bib and brace overalls .. 8.9% Free (AU,BH, CA, 

CL,CO, IL, JO,KR, 

MA,MX, OM, P, PA, 

PE, SG) 

90% 

Other: 


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138 

6204.62.70 Certified hand-loomed 

and folklore products 7.1% Free (AU,BH, CA, 

CL,CO, E, IL, JO,KR, 

MA,MX, OM, P, PA, 

PE, SG) 

37.5% 

6204.62.80 Other .......................... 16.6% Free (AU,BH, CA, 

CL,CO, IL, JO, MA, 

MX,OM, P, PA,PE, SG) 

9.9% (KR) 90% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6204.62.40 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6204.62.15 and 6204.62.80 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 

(15)(A) By striking subheadings 6204.63.10 through 

6204.63.35 and inserting the following, with the superior text to 

subheading 6204.63.01 having the same degree of indentation 

as the article description for subheading 6204.63.10 (as in effect 

on the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

6204.63.01 Containing 15 percent or 

more by weight of down 

and waterfowl plumage 

and of which down comprises 35 percent or more 

by weight; containing 10 

percent or more by weight 

of down .............................. Free 60% 

Other: 

Bib and brace overalls: 

6204.63.02 Water resistant .......... 7.1% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

OM,P, PA,PE, SG) 

65% 

6204.63.03 Other .......................... 14.9% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

OM,P, PA,PE, SG) 

76% 

Other: 

6204.63.08 Containing 36 percent 

or more by weight of 

wool or fine animal 

hair ............................ 13.6% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA, MX, 

OM, P, PA,PE, SG) 

58.5% 

Other: 

6204.63.09 Water resistant 

trousers or breeches .......................... 7.1% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, 

MA,MX,OM,P, PA,PE, 

SG) 

65% 


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6204.63.11 Other ..................... 28.6% Free (AU,BH,CA, 

CL,CO, IL,JO, 

MA,MX,OM,P, PA,PE, 

SG) 

5.7% (KR) 

90% 

Other: 

6204.63.50 Containing 15 percent or 

more by weight of down 

and waterfowl plumage 

and of which down comprises 35 percent or more 

by weight; containing 10 

percent or more by weight 

of down .............................. Free 60% 

Other: 

Bib and brace overalls: 

6204.63.55 Water resistant .......... 7.1% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

OM,P, PA,PE, SG) 

65% 

6204.63.60 Other .......................... 14.9% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

OM,P, PA,PE, SG) 

76% 

6204.63.65 Certified hand-loomed 

and folklore products .... 11.3% Free (AU, BH, CA, CL, 

CO, E, IL, JO,KR, 

MA,MX,OM,P, PA,PE, 

SG) 

76% 

Other: 

6204.63.70 Containing 36 percent 

or more by weight of 

wool or fine animal 

hair ............................ 13.6% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

OM,P, PA,PE, SG) 

58.5% 

Other: 

6204.63.75 Water resistant 

trousers or breeches .......................... 7.1% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

OM,P, PA,PE, SG) 

65% 

6204.63.90 Other ..................... 28.6% Free (AU, BH, CA, CL, 

CO,IL, JO, MA, 

MX,OM, P, PA, PE,SG) 

5.7% (KR) 90% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6204.63.35 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6204.63.11 and 6204.63.90 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 

(16) By striking subheadings 6204.69.10 through 

6204.69.90 and the immediate superior text to subheading 

6204.69.10, and inserting the following, with the first superior 

text having the same degree of indentation as the article description of subheading 6204.69.10 (as in effect on the day before the date of enactment of this Act): 


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‘‘ Recreational performance outerwear: 

Of artificial fibers: 

6204.69.01 Bib and brace overalls .. 13.6% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

76% 

Trousers, breeches and 

shorts: ............................

6204.69.02 Containing 36 percent 

or more by weight of 

wool or fine animal 

hair ............................ 13.6% Free (AU,BH, CA, 

CL,CO, IL, JO,KR, MA, 

MX, OM, P, PA, PE, 

SG) 

58.5% 

6204.69.03 Other .......................... 28.6% Free (AU,BH, CA, 

CL,CO, IL, JO,KR, MA, 

MX, OM, P, PA, PE, 

SG) 

90% 

Of silk or silk waste: 

6204.69.04 Containing 70 percent or 

more by weight of silk or 

silk waste ...................... 1.1% Free (AU, BH, CA, CL, 

CO, E, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

65% 

6204.69.05 Other .............................. 7.1% Free (AU,BH, CA, 

CL,CO, E*, IL, JO, 

KR,MA,MX, OM, P,PA, 

PE, SG) 

65% 

6204.69.06 Other ................................... 2.8% Free (AU, BH, CA, CL, 

CO, E*, IL, JO, KR, 

MA, MX, OM, P, PA, 

PE, SG) 

35% 

Other: 

Of artificial fibers: 

6204.69.15 Bib and brace overalls .. 13.6% Free (AU,BH, CA, 

CL,CO, IL, JO,KR, MA, 

MX, OM, P, PA, PE, 

SG) 

76% 

Trousers, breeches and 

shorts: ............................

6204.69.22 Containing 36 percent 

or more by weight of 

wool or fine animal 

hair ............................ 13.6% Free (AU,BH, CA, 

CL,CO, IL, JO,KR, MA, 

MX, OM, P, PA, PE, 

SG) 

58.5% 

6204.69.28 Other .......................... 28.6% Free (AU,BH, CA, 

CL,CO, IL, JO,KR, MA, 

MX, OM, P, PA, PE, 

SG) 

90% 

Of silk or silk waste: 


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6204.69.45 Containing 70 percent or 

more by weight of silk or 

silk waste ...................... 1.1% Free (AU,BH, CA, 

CL,CO, E, IL, JO, KR, 

MA, MX, OM, P,PA, 

PE, SG) 

65% 

6204.69.65 Other .............................. 7.1% Free (AU,BH, CA, 

CL,CO, E*,IL, JO, 

KR,MA,MX, OM, P,PA, 

PE, SG) 

65% 

6204.69.80 Other ................................... 2.8% Free (AU,BH, CA, 

CL,CO, E*, IL, JO, 

KR,MA,MX, OM, P,PA, 

PE, SG) 35% ’’. 

(17) By striking subheadings 6210.40.30 through 

6210.40.90 and the immediate superior text to subheading 

6210.40.30, and inserting the following, with the first superior 

text having the same degree of indentation as the immediate superior text to subheading 6210.40.30 (as in effect on the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

Of man-made fibers: 

6210.40.15 Having an outer surface 

impregnated, coated, 

covered or laminated 

with rubber or plastics 

material which completely obscures the underlying fabric ............... 3.8% Free (AU, BH, CA, CL, 

CO,IL, JO,KR, MA,MX, 

OM,P, PA,PE, SG) 

65% 

6210.40.25 Other .............................. 7.1% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

65% 

Other: 

6210.40.28 Having an outer surface 

impregnated, coated, 

covered or laminated 

with rubber or plastics 

material which completely obscures the underlying fabric ............... 3.3% Free (AU, BH, CA, CL, 

CO, E, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

37.5% 

6210.40.29 Other .............................. 6.2% Free (AU, BH, CA, CL, 

CO, E*, IL, JO, KR, 

MA, MX, OM, P, PA, 

PE, SG) 

37.5% 

Other: 

Of man-made fibers: 


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6210.40.35 Having an outer surface 

impregnated, coated, 

covered or laminated 

with rubber or plastics 

material which completely obscures the underlying fabric ............... 3.8% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

65% 

6210.40.55 Other .............................. 7.1% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

65% 

Other: 

6210.40.75 Having an outer surface 

impregnated, coated, 

covered or laminated 

with rubber or plastics 

material which completely obscures the underlying fabric ............... 3.3% Free (AU, BH, CA, CL, 

CO, E, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

37.5% 

6210.40.80 Other .............................. 6.2% Free (AU, BH, CA, CL, 

CO, E*, IL, JO, KR, 

MA, MX, OM, P, PA, 

PE, SG) 37.5% ’’. 

(18) By striking subheadings 6210.50.30 through 

6210.50.90 and the immediate superior text to subheading 

6210.50.30, and inserting the following, with the first superior 

text having the same degree of indentation as the immediate superior text to subheading 6210.50.30 (as in effect on the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

Of man-made fibers: 

6210.50.03 Having an outer surface 

impregnated, coated, 

covered or laminated 

with rubber or plastics 

material which completely obscures the underlying fabric ............... 3.8% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM,P, PA, PE, 

SG) 

65% 

6210.50.05 Other .............................. 7.1% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM,P, PA, PE, 

SG) 

65% 

Other: 


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6210.50.12 Having an outer surface 

impregnated, coated, 

covered or laminated 

with rubber or plastics 

material which completely obscures the underlying fabric ............... 3.3% Free (AU, BH, CA, CL, 

CO, E, IL, JO, KR, MA, 

MX, OM, P, PA,PE, 

SG) 

37.5% 

6210.50.22 Other .............................. 6.2% Free (AU, BH, CA, CL, 

CO, E*, IL, JO, KR, 

MA, MX, OM, P,PA, 

PE, SG) 

37.5% 

Other: 

Of man-made fibers: 

6210.50.35 Having an outer surface 

impregnated, coated, 

covered or laminated 

with rubber or plastics 

material which completely obscures the underlying fabric ............... 3.8% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM,P, PA, PE, 

SG) 

65% 

6210.50.55 Other .............................. 7.1% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM,P, PA, PE, 

SG) 

65% 

Other: 

6210.50.75 Having an outer surface 

impregnated, coated, 

covered or laminated 

with rubber or plastics 

material which completely obscures the underlying fabric ............... 3.3% Free (AU, BH, CA, CL, 

CO, E, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

37.5% 

6210.50.80 Other .............................. 6.2% Free (AU, BH, CA, CL, 

CO, E*, IL, JO, KR, 

MA, MX, OM, P, PA, 

PE, SG) 37.5% ’’. 

(19) By striking subheading 6211.32.00 and inserting the 

following, with the article description for subheading 6211.32 

having the same degree of indentation as the article description 

for subheading 6211.32.00 (as in effect on the day before the effective date of this section): 

‘‘ 6211.32 Of cotton: 

6211.32.50 Recreational performance 

outerwear ............................ 8.1% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

90% 


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6211.32.90 Other ................................... 8.1% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 90% ’’. 

(20)(A) By striking subheading 6211.33.00 and inserting 

the following, with the article description for subheading 

6211.33 having the same degree of indentation as the article description for subheading 6211.33.00 (as in effect on the day before the effective date of this section): 

‘‘ 6211.33 Of man-made fibers: 

6211.33.50 Recreational performance 

outerwear ............................ 16% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA ,PE, SG) 

4.8% (OM) 

76% 

6211.33.90 Other ................................... 16% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG) 

4.8% (OM) 76% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6211.33.00 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6211.33.50 and 6211.33.90 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 

(21)(A) By striking subheadings 6211.39.05 through 

6211.39.90 and inserting the following, with the first superior 

text having the same degree of indentation as the article description for subheading 6211.39.05 (as in effect on the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

6211.39.03 Of wool or fine animal hair 12% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG) 

3.6% (OM) 

58.5% 

6211.39.07 Containing 70 percent or 

more by weight of silk or 

silk waste ........................... 0.5% Free (AU, BH, CA, CL, 

CO, E, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

35% 

6211.39.15 Other ................................... 2.8% Free (AU, BH, CA, CL, 

CO, E*, IL, JO, KR, 

MA, MX, OM, P, PE, 

SG) 

35% 

Other: 

6211.39.30 Of wool or fine animal hair 12% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG) 

3.6% (OM) 

58.5% 


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6211.39.60 Containing 70 percent or 

more by weight of silk or 

silk waste ........................... 0.5% Free (AU, BH, CA, CL, 

CO, E, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

35% 

6211.39.80 Other ................................... 2.8% Free (AU, BH, CA, CL, 

CO, E*, IL, JO, KR, 

MA, MX, OM, P, PE, 

SG) 35% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6211.39.05 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6211.39.03 and 6211.39.30 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 

(22) By striking subheading 6211.42.00 and inserting the 

following, with the article description for subheading 6211.42 

having the same degree of indentation as the article description 

for subheading 6211.42.00 (as in effect on the day before the effective date of this section): 

‘‘ 6211.42 Of cotton: 

6211.42.05 Recreational performance 

outerwear ............................ 8.1% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

90% 

6211.42.10 Other ................................... 8.1% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 90% ’’. 

(23)(A) By striking subheading 6211.43.00 and inserting 

the following, with the article description for subheading 

6211.43 having the same degree of indentation as the article description for subheading 6211.43.00 (as in effect on the day before the effective date of this section): 

‘‘ 6211.43 Of man-made fibers: 

6211.43.05 Recreational performance 

outerwear ............................ 16% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG) 

4.8% (OM) 

90% 

6211.43.10 Other ................................... 16% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE, SG) 

4.8% (OM) 90% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6211.43.00 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6211.43.05 and 6211.43.10 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 


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(24)(A) By striking subheadings 6211.49.10 through 

6211.49.90 and inserting the following, with the first superior 

text having the same degree of indentation as the article description for subheading 6211.49.90 (as in effect on the day before the effective date of this section): 

‘‘ Recreational performance outerwear: 

6211.49.03 Containing 70 percent or 

more by weight of silk or 

silk waste ........................... 1.2% Free (AU, BH, CA, CL, 

CO, E, IL, JO, KR, MA, 

MX, OM, P, PA,PE, 

SG) 

35% 

6211.49.15 Of wool or fine animal hair 12% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA 

,MX, P, PA, PE, SG) 

3.6% (OM) 

58.5% 

6211.49.25 Other ................................... 7.3% Free (AU, BH, CA, CL, 

CO, E, IL, JO, MA, MX, 

OM, P, PA, PE, SG) 

1.4% (KR) 

35% 

Other: 

6211.49.50 Containing 70 percent or 

more by weight of silk or 

silk waste ........................... 1.2% Free (AU, BH, CA, CL, 

CO, E, IL, JO, KR, MA, 

MX, OM, P, PA, PE, 

SG) 

35% 

6211.49.60 Of wool or fine animal hair 12% Free (AU, BH, CA, CL, 

CO, IL, JO, KR, MA, 

MX, P, PA, PE,SG) 

3.6% (OM) 

58.5% 

6211.49.80 Other ................................... 7.3% Free (AU, BH, CA, CL, 

CO, E, IL, JO, MA, 

MX,OM, P, PA, PE, 

SG) 

1.4% (KR) 35% ’’. 

(B) The staged reductions in the special rate of duty proclaimed for subheading 6211.49.41 of the Harmonized Tariff 

Schedule of the United States before the effective date of this 

section shall apply to subheadings 6211.49.15 and 6211.49.60 

of such Schedule, as added by subparagraph (A), on and after 

such effective date. 

(C) The staged reductions in the special rate of duty proclaimed for subheading 6211.49.90 of such Schedule before the 

effective date of this section shall apply to subheadings 

6211.49.25 and 6211.49.80 of such Schedule, as added by subparagraph (A), on and after such effective date. 

(d) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as provided in paragraph (2), this 

section and the amendments made by this section— 

(A) shall take effect on the 180th day after the date of 

the enactment of this Act; and 

(B) shall apply to articles entered, or withdrawn from 

warehouse for consumption, on or after such 180th day. 


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(2) SUBSECTION (a).—Subsection (a) shall take effect on the 

date of the enactment of this Act. 

SEC. 913. MODIFICATIONS TO DUTY TREATMENT OF PROTECTIVE ACTIVE FOOTWEAR. 

(a) IN GENERAL.—Chapter 64 of the Harmonized Tariff Schedule of the United States is amended— 

(1) by redesignating the Additional U.S. Note added by section 602(a) of the Trade Preferences Extension Act of 2015 (Public Law 114–27; 129 Stat. 413) as Additional U.S. Note 6; 

(2) in subheading 6402.91.42, by striking the matter in the 

column 1 special rate of duty column and inserting the following: ‘‘Free (AU, BH, CA, CL, D, IL, JO, MA, MX, P, R, SG) 

1%(PA) 6%(OM) 6%(PE) 12%(CO) 20%(KR)’’; and 

(3) in subheading 6402.99.32, by striking the matter in the 

column 1 special rate of duty column and inserting the following: ‘‘Free (AU, BH, CA, CL, D, IL, JO, MA, MX, P, R, SG) 

1%(PA) 6%(OM) 6%(PE) 12%(CO) 20%(KR)’’. 

(b) STAGED RATE REDUCTIONS.—Section 602(c) of the Trade 

Preferences Extension Act of 2015 (Public Law 114–27; 129 Stat. 

414) is amended to read as follows: 

‘‘(c) STAGED RATE REDUCTIONS.—Beginning in calendar year 

2016, the staged reductions in special rates of duty proclaimed before the date of the enactment of this Act— 

‘‘(1) for subheading 6402.91.90 of the Harmonized Tariff 

Schedule of the United States shall be applied to subheading 

6402.91.42 of such Schedule, as added by subsection (b)(1); and 

‘‘(2) for subheading 6402.99.90 of such Schedule shall be 

applied to subheading 6402.99.32 of such Schedule, as added 

by subsection (b)(2).’’. 

(c) EFFECTIVE DATE.— (1) IN GENERAL.—The amendments made by this section 

shall take effect as if included in the enactment of the Trade 

Preferences Extension Act of 2015 (Public Law 114–27; 129 

Stat. 362). 

(2) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS

AND RELIQUIDATIONS.— 

(A) IN GENERAL.—Notwithstanding section 514 of the 

Tariff Act of 1930 (19 U.S.C. 1514) or any other provision 

of law and subject to subparagraph (B), any entry of an article classified under subheading 6402.91.42 or 6402.99.32 

of the Harmonized Tariff Schedule of the United States, 

that— 

(i) was made— 

(I) after the effective date specified in section 

602(d) of the Trade Preferences Extension Act of 

2015 (Public Law 114–27; 129 Stat. 414), and 

(II) before the date of the enactment of this 

Act, and 

(ii) to which a lower rate of duty would be applicable if the entry were made after such date of enactment, 

shall be liquidated or reliquidated as though such entry occurred on such date of enactment. 

(B) REQUESTS.—A liquidation or reliquidation may be 

made under subparagraph (A) with respect to an entry only 

if a request therefor is filed with U.S. Customs and Border 


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Protection not later than 180 days after the date of the enactment of this Act that contains sufficient information to 

enable U.S. Customs and Border Protection— 

(i) to locate the entry; or 

(ii) to reconstruct the entry if it cannot be located. 

(C) PAYMENT OF AMOUNTS OWED.—Any amounts owed 

by the United States pursuant to the liquidation or reliquidation of an entry of an article under subparagraph (A) 

shall be paid, without interest, not later than 90 days after 

the date of the liquidation or reliquidation (as the case may 

be). 

SEC. 914. 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 (Public Law 114–26; 19 U.S.C. 4201(a)) 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) GREENHOUSE GAS EMISSIONS MEASURES.—Section 102(a) of 

the Bipartisan Congressional Trade Priorities and Accountability 

Act of 2015 (Public Law 114–26; 19 U.S.C. 4201(a)), as amended by 

subsection (a) of this section, is further 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 establish obligations for the United States regarding greenhouse gas emissions measures, including obligations that require changes to 

United States laws or regulations or that would affect the implementation of such laws or regulations, other than those fulfilling the other negotiating objectives in this section.’’. 

(c) FISHERIES NEGOTIATIONS.—Section 102(b) of the Bipartisan 

Congressional Trade Priorities and Accountability Act of 2015 (Public Law 114–26; 19 U.S.C. 4201(b)) 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— 

‘‘(A) 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 nontariff barriers; 


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‘‘(B) to eliminate fisheries subsidies that distort trade, 

including subsidies of the type referred to in paragraph 9 

of Annex D to the Ministerial Declaration adopted by the 

World Trade Organization at the Sixth Ministerial Conference at Hong Kong, China on December 18, 2005; 

‘‘(C) to pursue transparency in fisheries subsidies programs; and 

‘‘(D) to address illegal, unreported, and unregulated 

fishing.’’. 

(d) ACCREDITATION.—Section 104 of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (Public Law 

114–26; 19 U.S.C. 4203) is amended— 

(1) in subsection (b)(3), by striking ‘‘an official’’ and inserting ‘‘a delegate and official’’; and 

(2) in subsection (c)(2)(C)— 

(A) by striking ‘‘an official’’ each place it appears and 

inserting ‘‘a delegate and official’’; and 

(B) by inserting after the first sentence the following: 

‘‘In addition, the chairmen 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 and official advisers to the 

United States delegation in negotiations for any trade 

agreement to which this title applies.’’. 

(e) TRAFFICKING IN PERSONS.— (1) IN GENERAL.—Section 106(b)(6) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 

(Public Law 114–26; 19 U.S.C. 4205(b)(6)) is amended by striking subparagraph (B) and inserting 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, the prohibition under subparagraph (A) shall not 

apply with respect to a trade agreement or trade 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); 

‘‘(II) be accompanied by supporting documentation providing credible evidence of each such 

concrete action, including copies of relevant laws 

or regulations adopted or modified, and any enforcement actions taken, by that country, where appropriate; and 

‘‘(III) be made available to the public. 

‘‘(C) SPECIAL RULE FOR CHANGES IN CERTAIN DETERMINATIONS.—If a country is listed as a tier 3 country in an 

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endar year 2014 or any calendar year thereafter and, in the 

annual report on trafficking in persons submitted in the 

next calendar year, is listed on the tier 2 watch list, the 

President shall submit a detailed description of the credible 

evidence supporting the change in listing of the country, accompanied by copies of documents providing such evidence, 

where appropriate, to the appropriate congressional committees— 

‘‘(i) in the case of a change in listing reflected in 

the annual report on trafficking in persons submitted 

in calendar year 2015, not later than 90 days after the 

date of the enactment of the Trade Facilitation and 

Trade Enforcement Act of 2015; and 

‘‘(ii) in the case of a change in listing reflected in 

an annual report on trafficking in persons submitted in 

calendar year 2016 or any calendar year thereafter, not 

later than 90 days after the submission of that report. 

‘‘(D) SENSE OF CONGRESS.—It is the sense of Congress 

that the integrity of the process for making the determinations in the annual report on trafficking in persons, including determinations with respect to country rankings and 

the substance of the assessments in the report, should be respected and not affected by unrelated considerations. 

‘‘(E) DEFINITIONS.—In this paragraph: 

‘‘(i) ANNUAL REPORT ON TRAFFICKING IN PERSONS.—The term ‘annual report on trafficking in persons’ means the annual report on trafficking in persons 

required under section 110(b)(1) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7107(b)(1)). 

‘‘(ii) APPROPRIATE CONGRESSIONAL COMMITTEES.— 

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. 

‘‘(iii) TIER 2 WATCH LIST.—The term ‘tier 2 watch 

list’ means the list of countries required under section 

110(b)(2)(A)(iii) of the Trafficking Victims Protection 

Act of 2000 (22 U.S.C. 7107(b)(2)(A)(iii)). 

‘‘(iv) TIER 3 COUNTRY.—The term ‘tier 3 country’ 

means a country on the list of countries required under 

section 110(b)(1)(C) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7107(b)(1)(C)).’’. 

(2) CONFORMING AMENDMENT.—Section 106(b)(6)(A) of the 

Bipartisan Congressional Trade Priorities and Accountability 

Act of 2015 (Public Law 114–26; 19 U.S.C. 4205(b)(6)(A)) is 

amended by striking ‘‘to which the minimum’’ and all that follows through ‘‘7107(b)(1))’’ and inserting ‘‘listed as a tier 3 

country in the most recent annual report on trafficking in persons’’. 

(f) TECHNICAL AMENDMENTS.—The Bipartisan Congressional 

Trade Priorities and Accountability Act of 2015 is amended— 


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(1) in section 105(b)(3) (Public Law 114–26; 129 Stat. 346; 

19 U.S.C. 4204(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) (Public Law 114–26; 129 Stat. 354; 

19 U.S.C. 4205(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 (Public Law 114–26; 129 Stat. 320; 19 U.S.C. 4201 et seq.). 

SEC. 915. TRADE PREFERENCES FOR NEPAL. 

(a) FINDINGS.—Congress makes the following findings: 

(1) Nepal is among the least developed countries in the 

world, with a per capita gross national income of $730 in 2014. 

(2) Nepal suffered a devastating earthquake in April 2015, 

with subsequent aftershocks. More than 9,000 people died and 

approximately 23,000 people were injured. 

(b) ELIGIBILITY REQUIREMENTS.— 

(1) IN GENERAL.—The President may authorize the provision of preferential treatment under this section to articles that 

are imported directly from Nepal into the customs territory of 

the United States pursuant to subsection (c) if the President determines— 

(A) that Nepal meets the requirements set forth in 

paragraphs (1), (2), and (3) of section 104(a) of the African 

Growth and Opportunity Act (19 U.S.C. 3703(a)); and 

(B) after taking into account the factors set forth in 

paragraphs (1) through (7) of subsection (c) of section 502 

of the Trade Act of 1974 (19 U.S.C. 2462), that Nepal meets 

the eligibility requirements of such section 502. 

(2) WITHDRAWAL, SUSPENSION, OR LIMITATION OF PREFERENTIAL TREATMENT; MANDATORY GRADUATION.—The provisions of subsections (d) and (e) of section 502 of the Trade Act 

of 1974 (19 U.S.C. 2462) shall apply with respect to Nepal to 

the same extent and in the same manner as such provisions 

apply with respect to beneficiary developing countries under 

title V of that Act (19 U.S.C. 2461 et seq.). 

(c) ELIGIBLE ARTICLES.— 

(1) IN GENERAL.—An article described in paragraph (2) 

may enter the customs territory of the United States free of 

duty. 

(2) ARTICLES DESCRIBED.— 

(A) IN GENERAL.—An article is described in this paragraph if— 

(i)(I) the article is the growth, product, or manufacture of Nepal; and 

(II) in the case of a textile or apparel article, Nepal 

is the country of origin of the article, as determined 

under section 102.21 of title 19, Code of Federal Regulations (as in effect on the day before the date of the enactment of this Act); 


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(ii) the article is imported directly from Nepal into 

the customs territory of the United States; 

(iii) the article is classified under any of the following subheadings of the Harmonized Tariff Schedule 

of the United States (as in effect on the day before the 

date of the enactment of this Act): 

4202.11.00 ............................................. 4202.22.60 ............................................. 4202.92.08 

4202.12.20 ............................................. 4202.22.70 ............................................. 4202.92.15 

4202.12.40 ............................................. 4202.22.80 ............................................. 4202.92.20 

4202.12.60 ............................................. 4202.29.50 ............................................. 4202.92.30 

4202.12.80 ............................................. 4202.29.90 ............................................. 4202.92.45 

4202.21.60 ............................................. 4202.31.60 ............................................. 4202.92.60 

4202.21.90 ............................................. 4202.32.40 ............................................. 4202.92.90 

4202.22.15 ............................................. 4202.32.80 ............................................. 4202.99.90 

4202.22.40 ............................................. 4202.32.95 ............................................. 4203.29.50 

4202.22.45 ............................................. 4202.91.00 

5701.10.90 ............................................. 5702.91.30 ............................................. 5703.10.80 

5702.31.20 ............................................. 5702.91.40 ............................................. 5703.90.00 

5702.49.20 ............................................. 5702.92.90 ............................................. 5705.00.20 

5702.50.40 ............................................. 5702.99.15 

5702.50.59 ............................................. 5703.10.20 

6117.10.60 ............................................. 6214.20.00 ............................................. 6217.10.85 

6117.80.85 ............................................. 6214.40.00 ............................................. 6301.90.00 

6214.10.10 ............................................. 6214.90.00 ............................................. 6308.00.00 

6214.10.20 ............................................. 6216.00.80 

6504.00.90 ............................................. 6505.00.30 ............................................. 6505.00.90 

6505.00.08 ............................................. 6505.00.40 ............................................. 6506.99.30 

6505.00.15 ............................................. 6505.00.50 ............................................. 6506.99.60 

6505.00.20 ............................................. 6505.00.60 

6505.00.25 ............................................. 6505.00.80 

(iv) the President determines, after receiving the 

advice of the United States International Trade Commission in accordance with section 503(e) of the Trade 

Act of 1974 (19 U.S.C. 2463(e)), that the article is not 

import-sensitive in the context of imports from Nepal; 

and 

(v) subject to subparagraph (C), the sum of the cost 

or value of the materials produced in, and the direct 

costs of processing operations performed in, Nepal or 

the customs territory of the United States is not less 

than 35 percent of the appraised value of the article at 

the time it is entered. 

(B) EXCLUSIONS.—An article shall not be treated as the 

growth, product, or manufacture of Nepal for purposes of 

subparagraph (A)(i)(I) by virtue of having merely undergone— 

(i) simple combining or packaging operations; or 

(ii) mere dilution with water or mere dilution with 

another substance that does not materially alter the 

characteristics of the article. 

(C) LIMITATION ON UNITED STATES COST.—For purposes of subparagraph (A)(v), the cost or value of materials 

produced in, and the direct costs of processing operations 

performed in, the customs territory of the United States 

and attributed to the 35-percent requirement under that 

subparagraph may not exceed 15 percent of the appraised 

value of the article at the time it is entered. 


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(3) VERIFICATION WITH RESPECT TO TRANSSHIPMENT FOR

TEXTILE AND APPAREL ARTICLES.— (A) IN GENERAL.—Not later than January 1, April 1, 

July 1, and October 1 of each calendar year, the Commissioner shall verify that textile and apparel articles imported 

from Nepal to which preferential treatment is extended 

under this section are not being unlawfully transshipped 

into the United States. 

(B) REPORT TO PRESIDENT.—If the Commissioner determines under subparagraph (A) that textile and apparel articles imported from Nepal to which preferential treatment 

is extended under this section are being unlawfully transshipped into the United States, the Commissioner shall report that determination to the President. 

(d) TRADE FACILITATION AND CAPACITY BUILDING.— 

(1) FINDINGS.—Congress makes the following findings: 

(A) As a land-locked least-developed country, Nepal 

has severe challenges reaching markets and developing capacity to export goods. As of 2015, exports from Nepal are 

approximately $800,000,000 per year, with India the major 

market at $450,000,000 annually. The United States imports about $80,000,000 worth of goods from Nepal, or 10 

percent of the total goods exported from Nepal. 

(B) The World Bank has found evidence that the overall export competitiveness of Nepal has been declining since 

2005. Indices compiled by the World Bank and the Organization for Economic Co-operation and Development found 

that export costs in Nepal are high with respect to both air 

cargo and container shipments relative to other low-income 

countries. Such indices also identify particular weaknesses 

in Nepal with respect to automation of customs and other 

trade functions, involvement of local exporters and importers in preparing regulations and trade rules, and export finance. 

(C) Implementation by Nepal of the Agreement on 

Trade Facilitation of the World Trade Organization could 

directly address some of the weaknesses described in subparagraph (B). 

(2) ESTABLISHMENT OF TRADE FACILITATION AND CAPACITY

BUILDING PROGRAM.—Not later than 180 days after the date of 

the enactment of this Act, the President shall, in consultation 

with the Government of Nepal, establish a trade facilitation 

and capacity building program for Nepal— 

(A) to enhance the central export promotion agency of 

Nepal to support successful exporters and to build awareness among potential exporters in Nepal about opportunities abroad and ways to manage trade documentation and 

regulations in the United States and other countries; 

(B) to provide export finance training for financial institutions in Nepal and the Government of Nepal; 

(C) to assist the Government of Nepal in maintaining 

publication on the Internet of all trade regulations, forms 

for exporters and importers, tax and tariff rates, and other 

documentation relating to exporting goods and developing 

a robust public-private dialogue, through its National 


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Trade Facilitation Committee, for Nepal to identify 

timelines for implementation of key reforms and solutions, 

as provided for under the Agreement on Trade Facilitation 

of the World Trade Organization; and 

(D) to increase access to guides for importers and exporters, through publication of such guides on the Internet, 

including rules and documentation for United States tariff 

preference programs. 

(e) REPORTING REQUIREMENT.—Not later than one year after 

the date of the enactment of this Act, and annually thereafter, the 

President shall monitor, review, and report to Congress on the implementation of this section, the compliance of Nepal with subsection (b)(1), and the trade and investment policy of the United 

States with respect to Nepal. 

(f) TERMINATION OF PREFERENTIAL TREATMENT.—No preferential treatment extended under this section shall remain in effect 

after December 31, 2025. 

(g) EFFECTIVE DATE.—The provisions of this section shall take 

effect on the date that is 30 days after the date of the enactment of 

this Act. 

SEC. 916. AGREEMENT BY ASIA-PACIFIC ECONOMIC COOPERATION 

MEMBERS TO REDUCE RATES OF DUTY ON CERTAIN ENVIRONMENTAL GOODS. 

Section 107 of the Bipartisan Congressional Trade Priorities 

and Accountability Act of 2015 (Public Law 114–26; 19 U.S.C. 

4206) is amended by adding at the end the following: 

‘‘(c) AGREEMENT BY ASIA-PACIFIC ECONOMIC COOPERATION

MEMBERS TO REDUCE RATES OF DUTY ON CERTAIN ENVIRONMENTAL

GOODS.—Notwithstanding the notification requirement described in 

section 103(a)(2), the President may exercise the proclamation authority provided for in section 103(a)(1)(B) to implement an agreement by members of the Asia-Pacific Economic Cooperation (APEC) 

to reduce any rate of duty on certain environmental goods included 

in Annex C of the APEC Leaders Declaration issued on September 

9, 2012, if (and only if) the President, as soon as feasible after the 

date of the enactment of the Trade Facilitation and Trade Enforcement Act of 2015, and before exercising proclamation authority 

under section 103(a)(1)(B), notifies Congress of the negotiations relating to the agreement and the specific United States objectives in 

the negotiations.’’. 

SEC. 917. AMENDMENT TO TARIFF ACT OF 1930 TO REQUIRE COUNTRY 

OF ORIGIN MARKING OF CERTAIN CASTINGS. 

(a) IN GENERAL.—Section 304(e) of the Tariff Act of 1930 (19 

U.S.C. 1304(e)) is amended— 

(1) in the subsection heading, by striking ‘‘MANHOLE RINGS

OR FRAMES, COVERS, AND ASSEMBLIES THEREOF’’ and inserting 

‘‘CASTINGS’’; 

(2) by inserting ‘‘inlet frames, tree and trench grates, 

lampposts, lamppost bases, cast utility poles, bollards, hydrants, utility boxes,’’ before ‘‘manhole rings,’’; and 

(3) by adding at the end before the period the following: ‘‘in 

a location such that it will remain visible after installation’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection (a) 

take effect on the date of the enactment of this Act and apply with 


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respect to the importation of castings described in such amendments 

on or after the date that is 180 days after such date of enactment. 

SEC. 918. INCLUSION OF CERTAIN INFORMATION IN SUBMISSION OF 

NOMINATION FOR APPOINTMENT AS DEPUTY UNITED 

STATES TRADE REPRESENTATIVE. 

Section 141(b) of the Trade Act of 1974 (19 U.S.C. 2171(b)) is 

amended by adding at the end the following: 

‘‘(5)(A) When the President submits to the Senate for its advice 

and consent a nomination of an individual for appointment as a 

Deputy United States Trade Representative under paragraph (2), 

the President shall include in that submission information on the 

country, regional offices, and functions of the Office of the United 

States Trade Representative with respect to which that individual 

will have responsibility. 

‘‘(B) The President shall notify the Committee on Ways and 

Means of the House of Representatives and the Committee on Finance of the Senate not less than 30 days prior to making any 

change to the responsibilities of any Deputy United States Trade 

Representative included in a submission under subparagraph (A), 

including the reason for that change.’’. 

SEC. 919. SENSE OF CONGRESS ON THE NEED FOR A MISCELLANEOUS 

TARIFF BILL PROCESS. 

(a) FINDINGS.—Congress makes the following findings: 

(1) As of the date of the enactment of this Act, the Harmonized Tariff Schedule of the United States imposes duties on 

imported goods for which there is no domestic availability or 

insufficient domestic availability. 

(2) The imposition of duties on such goods creates artificial 

distortions in the economy of the United States that negatively 

affect United States manufacturers and consumers. 

(3) It would be in the interests of the United States if the 

Harmonized Tariff Schedule were updated regularly and predictably to eliminate such artificial distortions by suspending 

or reducing duties on such goods. 

(4) The manufacturing competitiveness of the United States 

around the world would be enhanced if the Harmonized Tariff 

Schedule were updated regularly and predictably to suspend or 

reduce duties on such goods. 

(b) SENSE OF CONGRESS.—It is the sense of Congress that, to remove the competitive disadvantage to United States manufacturers 

and consumers resulting from the imposition of such duties and to 

promote the competitiveness of United States manufacturers, the 

Committee on Finance of the Senate and the Committee on Ways 

and Means of the House of Representatives are urged to advance, 

as soon as possible, after consultation with the public and Members 

of the Senate and the House of Representatives, a regular and predictable legislative process for the temporary suspension and reduction of duties that is consistent with the rules of the Senate and the 

House. 

SEC. 920. 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— 


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(1) in subparagraph (A), by striking ‘‘July 7, 2025’’ and inserting ‘‘September 30, 2025’’; and 

(2) by striking subparagraph (D). 

(b) RATE FOR MERCHANDISE PROCESSING FEES.—Section 503 of 

the United States–Korea Free Trade Agreement Implementation Act 

(Public Law 112–41; 19 U.S.C. 3805 note) is amended— 

(1) by striking ‘‘June 30, 2025’’ and inserting ‘‘September 

30, 2025’’; and 

(2) by striking subsection (c). 

SEC. 921. 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. 

SEC. 922. PERMANENT MORATORIUM ON INTERNET ACCESS TAXES 

AND ON MULTIPLE AND DISCRIMINATORY TAXES ON 

ELECTRONIC COMMERCE. 

(a) PERMANENT MORATORIUM.—Section 1101(a) of the Internet 

Tax Freedom Act (47 U.S.C. 151 note) is amended by striking ‘‘during the period beginning November 1, 2003, and ending October 1, 

2015’’. 

(b) TEMPORARY EXTENSION.—Section 1104(a)(2)(A) of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by striking 

‘‘October 1, 2015’’ and inserting ‘‘June 30, 2020’’. 

And the House agree to the same. 

KEVIN BRADY, 

DAVID REICHERT, 

PAT TIBERI, 

Managers on the Part of the House. 

ORRIN HATCH, 

JOHN CORNYN, 

JOHN THUNE, 

JOHNNY ISAKSON, 

RON WYDEN, 

DEBBIE STABENOW, 

Managers on the Part of the Senate. 


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JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF 

CONFERENCE 

The managers on the part of the House and the Senate at the 

conference on the disagreeing votes of the two Houses on the 

amendment of the House to the amendment of the Senate to the 

bill (H.R. 644), to reauthorize trade facilitation and trade enforcement functions and activities, and for other purposes, submit the 

following joint statement to the House and the Senate in explanation of the effect of the action agreed upon by the managers and 

recommended in the accompanying conference report: 

The Senate amendment struck all of the House bill after the 

enacting clause and inserted a substitute text. 

The House amendment struck all of the Senate amendment 

after the enacting clause and inserted a substitute text. 

The Senate recedes from its disagreement to the amendment 

of the House with an amendment that is a substitute for the House 

amendment and the Senate amendment. The differences between 

the Senate amendment, the House amendment, and the substitute 

agreed to in conference are noted below, except for clerical corrections, conforming changes made necessary by agreements reached 

by the conferees, and minor drafting and clarifying changes. 

DIVISION A—TRADE FACILITATION AND TRADE 

ENFORCEMENT ACT OF 2015 

TITLE I—TRADE FACILITATION AND TRADE ENFORCEMENT

SECTION 101. IMPROVING PARTNERSHIP PROGRAMS

Present Law 

The Customs-Trade Partnership Against Terrorism (C–TPAT), 

codified in the Security and Accountability for Every Port Act 

(SAFE Port Act) of 2006 (6 U.S.C. 961 et seq.), is a voluntary trade 

partnership program in which Customs and Border Protection 

(CBP) and members of the trade community work together to secure and facilitate the movement of legitimate trade. Companies 

that are members of C–TPAT are considered low-risk, which expedites cargo clearance based on the company’s security profile and 

compliance history. 

House Amendment 

Section 101 requires the Commissioner of CBP to work with 

the private sector and other Federal agencies to ensure that all 

CBP partnership programs provide trade benefits to participants. 

This would apply to partnership programs established before enactment of this bill, and any programs established after enactment. It 

establishes elements for the development and operation of any such 

partnership programs, which require the Commissioner to: 1) conVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00157 Fmt 6601 Sfmt 6601 E:\HR\OC\HR376.XXX HR376

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sult with private sector entities, the public, and other Federal 

agencies when appropriate, to ensure that participants receive commercially significant and measurable trade benefits; 2) ensure an 

integrated and transparent system of trade benefits and compliance requirements for all CBP partnership programs; 3) consider 

consolidating partnership programs in situations in which doing so 

would support the objectives of such programs, increase participation, enhance trade benefits, and enhance the allocation of resources of CBP; 4) coordinate with the Director of ICE, and other 

Federal agencies with authority to detain and release merchandise; 

and 5) ensure that trade benefits are provided to participants in 

partnership programs. 

It further requires the Commissioner to submit to the Committee on Finance and the Committee on Homeland Security and 

Governmental Affairs of the Senate and the Committee on Ways 

and Means and the Committee on Homeland Security of the House 

of Representatives a report that: 1) identifies each partnership program; 2) for each program, identifies the requirements for participation, benefits provided to participants, the number of participants, and 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 

program; 4) assesses the effectiveness of each program in advancing the security, trade enforcement, and trade facilitation missions 

of CBP; 5) summarizes CBP’s efforts to work with other Federal 

agencies to detain and release merchandise entering the United 

States to ensure that partnership programs of those agencies are 

compatible with CBP partnership programs; 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 CBP efforts 

to work with the private sector and the public to develop partnership programs; 8) describes measures taken by CBP to make the 

private sector aware of trade benefits available to participants in 

partnership programs; and 9) summarizes CBP’s plans, targets, 

and goals with respect to partnership programs for the two years 

following submission of the report. 

Senate Amendment 

Section 101 of the Senate amendment is the same as section 

101 of the House amendment with the exception of a difference in 

the recipients of the report required in this section. 

Conference Agreement 

The conference agreement follows the House amendment. 

SECTION 102. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT

ACTIVITIES

Present Law 

No provision. 


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House Amendment 

Section 102(a) requires the Comptroller General of the United 

States to submit a report on the effectiveness of trade enforcement 

activities of CBP to the Committee on Finance and the Committee 

on Homeland Security and Governmental Affairs of the Senate and 

the Committee on Ways and Means and the Committee on Homeland Security of the House of Representatives, no later than one 

year after the date of enactment of the bill. 

Section 102(b) establishes that the report shall include: 1) a description of the use of resources, results of audits and verifications, 

targeting, organization, and training of CBP personnel; and 2) a description of trade enforcement activities to address undervaluation, 

transshipment, legitimacy of entities making entry, protection of 

revenue, fraud prevention and detection, and penalties, including 

intentional misclassification, inadequate bonding, and other misrepresentations. 

Senate Amendment 

Section 102 of the Senate amendment is the same as section 

102 of the House amendment with the exception of the following 

provisions. In addition to the reporting requirements in section 

102(b) of the House amendment, the Senate amendment requires 

a description of trade enforcement activities with respect to the priority trade issues, including methodologies used in such enforcement of actives, recommendations for improving such enforcement 

activities, and a description of the implementation of previous recommendations for improving such enforcement activities. The 

amendments also differ in the recipients of the required report. 

Conference Agreement 

The conference agreement follows the Senate amendment with 

a modification. The Conferees agree to modify section 102(a) of the 

Senate amendment to include the Committee on Finance and the 

Committee on Homeland Security and Governmental Affairs of the 

Senate and the Committee on Ways and Means and the Committee 

on Homeland Security of the House of Representatives as recipients of the required report. 

SECTION 103. PRIORITIES AND PERFORMANCE STANDARDS FOR CUS- TOMS MODERNIZATION, TRADE FACILITATION, AND TRADE ENFORCEMENT FUNCTIONS AND PROGRAMS

Present Law 

No provision. 

House Amendment 

Section 103(a) directs the Commissioner of Customs to consult 

with the Committee on Finance and the Committee on Homeland 

Security and Governmental Affairs of the Senate and the Committee on Ways and Means and the Committee on Homeland Security of the House of Representatives to establish priorities and performance standards to measure the development and levels of 

achievement of the customs modernization, trade facilitation, and 

trade enforcement functions of the programs described in section 


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103(b). The amendment requires that the priorities and performance standards shall, at a minimum, include priorities and performance standards relating to efficiency, outcome, output, and 

other types of applicable measures. 

Section 103(b) establishes the functions and programs to which 

section 103(a) applies: 1) the Automated Commercial Environment; 

2) each of the priority trade issues described in section 111(a) of 

the House amendment (section 117 of the conference report); 3) the 

Centers of Excellence and Expertise; 4) drawback; 5) transactions 

relating to imported merchandise in bond; 6) the collection of antidumping and countervailing duties assessed; 7) the expedited clearance of cargo; 8) the issuance of regulations and rulings; and 9) the 

issuance of Regulatory Audit Reports. 

Section 103(c) requires that the consultations with the Committee on Finance and the Committee on Homeland Security and 

Governmental Affairs of the Senate and the Committee on Ways 

and Means and the Committee on Homeland Security of the House 

of Representatives occur, at a minimum, on an annual basis, and 

requires the Commissioner to notify the Committees of any changes 

to the priorities referred to in section 103(a) no later than 30 days 

before such changes are to take effect. 

Senate Amendment 

Section 103 of the Senate amendment is the same as section 

103 of the House amendment with the exception of a difference in 

the recipients of the report and consultations required in this section. 

Conference Agreement 

The conference agreement follows the House amendment. 

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

INTERNATIONAL TRADE

Present Law 

No provision. 

House Amendment 

Section 104(a) requires the Commissioner of CBP and the Director of ICE to establish and carry out educational seminars for 

CBP port personnel and ICE agents to improve their ability to classify and appraise imported articles, improve trade enforcement efforts, and otherwise improve the ability and effectiveness of CBP 

and ICE to facilitate legitimate trade. 

Section 104(b) establishes that these seminars shall include instruction on conducting physical inspections of articles, including 

testing of samples; reviewing the manifest and accompanying documentation to determine country of origin; customs valuation; industry supply chains; collection of antidumping and countervailing duties; addressing evasion of duties on imports of textiles; protection 

of intellectual property rights; and the enforcement of child labor 

laws. 


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Section 104(c) directs the Commissioner to establish a process 

to solicit, evaluate and select interested parties in the private sector to assist in providing instruction. 

Section 104(d) directs the Commissioner to give special consideration to carrying out educational seminars dedicated to improving the ability of CBP to enforce antidumping and countervailing 

duty orders upon the request of a petitioner. 

Section 104(e) requires the Commissioner and the Director to 

establish performance standards to measure the development and 

level of achievement of educational seminars under this section. 

Section 104(f) requires the Commissioner and the Director to 

submit an annual report to the Committee on Finance and the 

Committee on Homeland Security and Governmental Affairs of the 

Senate and the Committee on Ways and Means and the Committee 

on Homeland Security of the House of Representatives on the effectiveness of the educational seminars. 

Senate Amendment 

Section 104 of the Senate amendment is the same as section 

104 of the House amendment except for a difference in the recipients of the report required in this section. 

Conference Agreement 

The conference agreement follows the House amendment. 

SECTION 105. JOINT STRATEGIC PLAN

Present Law 

No provision. 

House Amendment 

Section 105(a) requires the Commissioner of CBP and the Director of ICE to create and submit to the Committee on Finance 

and the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Ways and Means and the 

Committee on Homeland Security of the House of Representatives 

a biennial joint strategic plan on trade facilitation and trade enforcement. 

Section 105(b) requires the joint strategic plan to contain a 

comprehensive plan for trade facilitation and trade enforcement 

that includes: 1) a summary of the actions taken during the 2-year 

period preceding submission of the plan to improve trade facilitation and trade enforcement; 2) a statement of objectives and plans 

for further improving trade facilitation and trade enforcement; 3) 

a specific identification of priority trade issues that can be addressed to enhance trade enforcement and trade facilitation; 4) a 

description of efforts made to improve consultation and coordination among and within Federal agencies; 5) a description of training that has occurred within CBP and ICE to improve trade enforcement and trade facilitation; 6) a description of efforts to work 

with the World Customs Organization and other international organizations with respect to enhancing trade facilitation and trade 

enforcement; 7) a description of CBP organizational benchmarks for 

optimizing staffing and wait times at ports of entry; 8) a specific 


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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 facilitation and trade enforcements; and 10) a description of efforts to improve consultation and coordination with the private sector to enhance trade facilitation and trade enforcement. 

Section 105(c) requires the Commissioner and the Director to 

consult with the appropriate Federal agencies and appropriate officials from relevant law enforcement agencies, international organizations, and interested parties in the private sector. 

Senate Amendment 

Section 105 of the Senate amendment is the same as section 

105 of the House amendment with exception the following provisions. In addition to the reporting requirements contained in section 105(b) of the House amendment, the Senate amendment requires a description of trade enforcement activities with respect to 

priority trade issues, including methodologies used in enforcement 

activities, recommendations for improving enforcement activities, 

and a description of the implementation of previous recommendations for improving enforcement activities. The amendments also 

differ in the recipients of the required report. 

Conference Agreement 

The conference agreement follows the Senate amendment with 

a modification. The Conferees agree to modify section 105(a) to include the Committee on Finance and the Committee on Homeland 

Security and Governmental Affairs of the Senate and the Committee on Ways and Means and the Committee on Homeland Security of the House of Representatives as recipients of the required 

joint strategic plan. 

SECTION 106. AUTOMATED COMMERCIAL ENVIRONMENT

Present Law 

Section 411 of the Tariff Act of 1930 requires the Secretary of 

Treasury to establish the National Customs Automation Program, 

an automated and electronic system for processing commercial importations. 

Section 13031(f)(4)(B) of the Consolidated Omnibus Budget 

Reconciliation Act of 1985 provides an authorization for appropriations from the Customs Commercial and Homeland Security Automation Account in fiscal years 2003 through 2005 such amounts as 

are available in that Account for the development, establishment, 

and implementation of the Automated Commercial Environment 

(ACE) computer system for the processing of merchandise that is 

entered or released and for other purposes related to the functions 

of the Department of Homeland Security. 

Section 311(b)(3) of the Customs Border Security Act of 2002 

requires the Commissioner of Customs to prepare and submit to 

the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report demonstrating that the development and establishment of the Automated Commercial Environment computer system is being carried 


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out in a cost-effective manner and meets the modernization requirements of title VI of the North American Free Trade Agreement Implementation Act. 

House Amendment 

Section 106(a) amends section 13031(f)(4)(B) of the Consolidated Omnibus Budget Reconciliation Act of 1985 to update fiscal 

years 2003 through 2005 to fiscal years 2016 through 2018, to update the amount to be allocated to ACE to ‘‘not less than 

$153,736,000,’’ and to make clear that these funds shall be used to 

complete the development and implementation of ACE. 

Section 106(b) amends section 311(b)(3) of the Customs Border 

Security Act of 2002 to require two reports from the Commissioner 

in regards to ACE. The Commissioner is required to submit a report no later than December 31, 2016, to the Senate Appropriations 

Committee and Finance Committee, and the House of Representatives Appropriations Committee and Ways and Means Committee, 

updates on the implementation of ACE, incorporation of all core 

trade processing capabilities, components that have not been implemented, and additional components needed to realize the full implementation and operation of the program. The Commissioner is 

required to submit a second report no later than September 30, 

2017, providing updates to the relevant Congressional committees 

from the prior report, as well as evaluations on the effectiveness 

of implementation of ACE and details of the percentage of trade 

processed in ACE every month since September 30, 2016. 

Section 106(c) directs the Comptroller General of the United 

States to submit a report to the Senate Appropriations Committee 

and Finance Committee, and House of Representatives Appropriations Committee and Ways and Means Committee, assessing the 

progress of other Federal agencies in accessing and utilizing ACE 

and identifying potential cost savings to the U.S. government, importers, and exporters upon full implementation and utilization of 

ACE. 

Senate Amendment 

Section 106 of the Senate amendment is the same as section 

106 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 107. INTERNATIONAL TRADE DATA SYSTEM

Present Law 

Section 411(d) of the Tariff Act of 1930 requires the Secretary 

of the Treasury to oversee the establishment of an electronic trade 

data interchange system, known as the International Trade Data 

System (ITDS). It further requires ITDS to be implemented no 

later than the date that ACE is fully implemented and mandates 

the participation of all federal agencies that require documentation 

for clearing or licensing cargo imports or exports. 


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House Amendment 

Section 107 amends section 411(d) of the Tariff Act of 1930 to 

require the Secretary of Homeland Security to work with the head 

of each Federal agency participating in ITDS and the Interagency 

Steering Committee to ensure that each agency: 1) develops and 

maintains the necessary information technology infrastructure to 

support the operation of ITDS and to submit all data to ITDS electronically; 2) enters into a memorandum of understanding to provide information sharing between the agency and CBP for the operation and maintenance of ITDS; 3) identifies and transmits admissibility criteria and data elements required by the agency to authorize the release of cargo by CBP for incorporation into ACE, no 

later than June 30, 2016; and 4) utilizes ITDS as the primary 

means of receiving the standard set of data and other relevant documentation from users, no later than December 31, 2016. 

Senate Amendment 

Section 107 of the Senate amendment is the same as section 

107 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 108. CONSULTATIONS WITH RESPECT TO MUTUAL

RECOGNITION ARRANGEMENTS

Present Law 

No provision. 

House Amendment 

Section 108(a) requires the Secretary of Homeland Security to 

consult with the Committee on Finance and the Committee on 

Homeland Security and Governmental Affairs of the Senate and 

the Committee on Ways and Means and the Committee on Homeland Security of the House of Representatives at least thirty days 

before the initiation of mutual recognition arrangement negotiations and at least thirty days before entering into any mutual recognition arrangement. 

Section 108(b) requires that the United States have as a negotiating objective in any negotiation for a mutual recognition arrangement with a foreign country on partnership programs to seek 

to ensure the compatibility of the foreign country’s partnership program with the partnership programs of CBP in order to enhance 

security, trade facilitation, and trade enforcement. 

Senate Amendment 

Section 108 of the Senate amendment is the same as section 

108 of the House bill, except that the Senate amendment does not 

include as a negotiating objective an enhancement of security when 

CBP seeks to ensure the compatibility of partnership programs of 

foreign countries. The amendments also differ in the recipients of 

the required report. 


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Conference Agreement 

The conference agreement follows the House amendment. 

SECTION 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY

COMMITTEE

Present Law 

The Advisory Committee on Commercial Operations (COAC) of 

the United States Customs Service was established in the Omnibus 

Budget Reconciliation Act of 1987. The Department of the Treasury 

Order No. 100–16, effective May 23, 2003, specified that COAC 

would be administered jointly by the Department of the Treasury 

and Department of Homeland Security. 

House Amendment 

Section 109(a) requires the Secretary of the Treasury and the 

Secretary of Homeland Security to jointly establish a Commercial 

Customs Operations Advisory Committee (COAC). 

Section 109(b) requires that COAC be comprised of 20 appointed individuals from the private sector, appointed without regard to political affiliation; the Commissioner of CBP and the Assistant Secretary of Treasury for Tax Policy, who shall co-chair 

meetings; and the Assistant Secretary for Policy of the Department 

of Homeland Security and the ICE Director, who shall serve as 

deputy co-chairs of meetings. Section 109(b) further requires that 

appointed private sector individuals be representative of individuals and firms affected by the commercial operations of CBP, and 

provides that individuals may be appointed to multiple 3-year 

terms but cannot serve more than two terms sequentially. The Secretaries of the Treasury and Homeland Security are authorized to 

transfer members to the COAC who are currently serving on the 

Advisory Committee on Commercial Operations of the United 

States Customs Service. 

Section 109(c) establishes the duties of COAC, which shall be 

to: 1) advise the Secretaries of the Treasury and Homeland Security on all matters involving the commercial operations of CBP and 

the investigations of ICE; 2) provide recommendations to the Secretaries on improvements that CBP and ICE should make to their 

commercial operations and investigations; 3) collaborate in developing the agenda for COAC meetings; and 4) perform other functions relating to the commercial operations of CBP and the investigations of ICE as prescribed by law or as directed by the Secretaries. 

Section 109(d) establishes that: 1) COAC shall meet at the call 

of the Secretary of the Treasury, the Secretary of Homeland Security, or two-thirds of the membership of COAC; 2) COAC shall 

meet at least four times each calendar year; and 3) that COAC 

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 CBP of the operations or investigations of ICE. 


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Section 109(e) requires COAC to submit an annual report to 

the Senate Committee on Finance and the House Committee on 

Ways and Means that describes the activities of COAC during the 

preceding fiscal year and sets forth any recommendations of COAC 

regarding the commercial operations of CBP. 

Section 109(f) establishes that 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 COAC. 

Senate Amendment 

Section 109 of the Senate amendment is the same as section 

109 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment with a modification. The Conferees have 

agreed to strike Section 109(d)(2). The Conferees believe that 

COAC meetings should normally be open to the public. The Conferees recognize the need to close COAC meetings, in portion or in 

whole, when a meeting will include matters the disclosure of which 

would compromise the development of policies, priorities, or negotiating objectives or positions that could impact the operations of 

CBP or the operations or investigations of ICE. The Conferees 

agree, however, that the current procedures in the Federal Advisory Committee Act (5 U.S.C. App.) are sufficient to close COAC 

meetings, in portion or in whole, when necessary. 

SECTION 110. CENTERS FOR EXCELLENCE AND EXPERTISE

Present Law 

No provision. 

House Amendment 

Section 110(a) requires the Commissioner to develop and implement, in consultation with the Committee on Finance and the 

Committee on Homeland Security and Governmental Affairs of the 

Senate and the Committee on Ways and Means and the Committee 

on Homeland Security of the House of Representatives, and the 

COAC established by section 109(a), Centers of Excellence and Expertise (CEE) throughout CBP that: 1) enhance the economic competitiveness of the United States; 2) improve enforcement efforts; 

3) build upon CBP expertise in particular industry operations, supply chains, and compliance requirements; 4) promote the uniform 

implementation at each port of entry of policies and regulations relating to imports; 5) centralize the trade enforcement and trade facilitation efforts of CBP; 6) formalize an account-based approach to 

the importation of merchandise into the United States; 7) foster 

partnerships through the expansion of trade programs and other 

trusted trader programs; 8) develop applicable performance measures to meet internal efficiency and effectiveness goals; and 9) 

when feasible, facilitate a more efficient flow of information between Federal agencies. 

Section 110(b) requires the Commissioner to submit a report to 

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rity and Governmental Affairs of the Senate and the Committee on 

Ways and Means and the Committee on Homeland Security of the 

House of Representatives no later than December 31, 2016 describing the scope, functions and structure of the CEEs; the effectiveness of the CEEs in improving enforcement efforts; the benefits to 

the trade community; applicable performance measurements; the 

performance of each CEE in facilitating trade; and any planned 

changes to the CEEs. 

Senate Amendment 

Section 110 of the Senate amendment is similar to section 110 

of the House amendment except the House amendment requires 

the CEEs to use targeting information from the National Targeting 

Center at CBP, while the Senate amendment requires the CEEs to 

use targeting information from the Commercial Targeting Division 

established in the amendment. The amendments also differ in the 

recipients of the required report. 

Conference Agreement 

The conference agreement follows the House amendment. 

SECTION 111. COMMERCIAL RISK ASSESSMENT TARGETING AND TRADE

ALERTS

Present Law 

No provision. 

House Amendment 

Section 111(a) requires National Targeting Center (NTC) to establish methodologies for assessing the risk that imports may violate U.S. customs and trade laws and to issue trade alerts when 

the NTC determines cargo may violate such laws; assess the risk 

of cargo based on all information available to CBP through the 

Automated Targeting System, ACE, the Automated Entry System, 

ITDS, and TECS (formerly known as the ‘‘Treasury Enforcement 

Communications System’’) or any successor systems, publicly available information, and information made available to the NTC by 

private sector entities; and, provide for the receipt and transmission to appropriate CBP offices of allegations from interested 

parties in the private sector of violations of the customs and trade 

laws of the United States relating to the priority trade issues described in section 111(a) of the House amendment (section 117 of 

the conference report). 

Section 111(b) authorizes the Executive Director of the NTC to 

issue trade alerts to port directors when such person determines 

cargo may violate U.S. customs and trade laws. The trade alert 

may direct further inspection or physical examination or testing of 

specific merchandise by the port personnel. A port director may determine not to carry out the direction of the trade alerts if the port 

director finds security interests justify such determination, and the 

port director notifies the Assistant Commissioner of the Office of 

Field Operations of such determination. The Assistant Commissioner of the Office of Field Operations must compile an annual report of all determinations by port directors to not implement trade 


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alerts and include an evaluation of the utilization of trade alerts. 

This report must be submitted to Committee on Finance and the 

Committee on Homeland Security and Governmental Affairs of the 

Senate and the Committee on Ways and Means and the Committee 

on Homeland Security of the House of Representatives not later 

than December 31 each year. Section 111(b) further defines ‘‘inspection’’ as the comprehensive evaluation process used by CBP, 

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 the 

purposes of assessing duties, identifying restricted or prohibited 

items, and ensuring compliance with all applicable customs and 

trade laws and regulations administered by CBP. 

Section 111(c) amends section 343(a)(3)(F) of the Trade Act of 

2002 to establish that the information collected pursuant to regulations shall be used exclusively for ensuring cargo safety and security, prevent smuggling, and commercial risk assessment targeting, 

and shall not be used for any commercial enforcement purposes, including for determining merchandise entry. 

Senate Amendment 

Section 111(a) of the Senate amendment establishes a Commercial Targeting Division (CTD) at CBP by amending section 2(d) 

of the Act of March 3, 1927 (19 U.S.C. 2072(d)). The section requires the Secretary of Homeland Security to establish and maintain a Commercial Targeting Division (CTD) within CBP’s Office of 

International Trade at CBP. The CTD shall be comprised of headquarters staff led by an Executive Director, and individual National Targeting and Analysis Groups (NTAGs) led by Directors reporting to the Executive Director. The CTD shall develop and conduct commercial targeting with respect to cargo destined for the 

United States and issue trade alerts. 

Section 111(a) requires the establishment of an NTAG for, at 

a minimum, each of the following priority trade issues (PTIs): 1) 

agricultural programs; 2) antidumping and countervailing duties; 

3) import safety; 4) intellectual property rights; 5) revenue; 6) textiles and wearing apparel; and 7) trade agreements and preference 

programs. The Commissioner may alter the PTIs in consultation 

with the Committee on Finance of the Senate and the Committee 

on Ways and Means of the House of Representatives. 

The duties of each NTAG include: 1) directing the trade enforcement and compliance assessment activities of CBP as they relate to the each NTAG’s PTI; 2) facilitating, promoting, and coordinating cooperation and the exchange of information between CBP, 

ICE, and other relevant Federal departments and agencies regarding each NTAG’s PTI; and 3) serving as the primary liaison between CBP and the public regarding United States Government activities related to each NTAG’s PTI. 

Section 111(a) also requires the CTD to establish methodologies for assessing the risk that cargo destined for the United States 

may violate U.S. customs and trade laws and for issuing Trade 

Alerts. The CTD should assess the risk of cargo based on all information available to CBP through the Automated Targeting System, 

ACE, the Automated Commercial System, the Automated Export 


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System, ITDS, and TECS (formerly known as the ‘‘Treasury Enforcement Communications System’’), the case management system 

of ICE or any successor systems, and publicly available information. The CTD should also use information provided by private sector entities and coordinate targeting efforts with other Federal 

agencies. 

The section authorizes the CTD Executive Director and NTAG 

Directors to issue Trade Alerts to port directors to ensure compliance with U.S. customs and trade laws. The Trade Alert may direct 

further inspection or physical examination or testing of merchandise by port personnel if certain risk-assessment thresholds are 

met. A port director may determine not to carry out the direction 

of the Trade Alerts if the port director finds such a determination 

is justified by security interests and the port director notifies the 

Assistant Commissioners of the Office of Field Operations and the 

Office of International Trade of such a determination. The Assistant Commissioner of the Office of Field Operations must compile 

an annual report of all determinations by port directors to override 

Trade Alerts and evaluate the utilization of Trade Alerts. 

Section 111(b) amends section 343(a)(3)(F) of the Trade Act of 

2002 (19 U.S.C. 2071 note), to indicate that 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. 

Conference Agreement 

The conference agreement follows the House amendment with 

modifications. It requires the NTC to coordinate with the CBP Office of Trade, as appropriate, in carrying out its duties under this 

section and to notify each interested party in the private sector 

that has submitted an allegation of any violation of the customs 

and trade laws of the United States or any civil or criminal action 

taken by CBP or any other agency resulting from the allegation. It 

also provides that the first report under Section 111(b)(3) is due 

December 31, 2016. 

SECTION 112. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND

ENFORCEMENT MEASURES

Present Law 

No provision. 

House Amendment 

Section 112(a) requires the Inspector General of the Department of the Treasury to submit a report, not later than March 31, 

2016 and biennially thereafter, to the Senate Committee on Finance and the House Committee on Ways and Means that assesses 

the effectives of the measures taken by CBP with respect to protection of the revenue and to measure accountability and performance 

with respect to protection of the revenue. 

Section 112(b) establishes that each report required by section 

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tember 30 of the calendar year preceding the submission of the report. 

Senate Amendment 

Section 112 of the Senate amendment is the same as section 

112 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment except that it provides an additional three 

months for the issuance of the first report required under Section 

112(a). 

SECTION 113. REPORT ON SECURITY AND REVENUE MEASURES WITH

RESPECT TO MERCHANDISE TRANSPORTED IN BOND

Present Law 

No provision. 

House Amendment 

Section 113(a) requires the Secretaries of Homeland Security 

and the Treasury to jointly submit a report to the Senate Committee on Finance and the House Committee on Ways and Means 

on efforts undertaken by CBP 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. The report must be submitted no 

later than December 31 of 2016, 2017, and 2018. 

Section 113(b) requires that each report required by section 

113(a) shall include 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 arrival 

of such merchandise are generated; 3) the average time taken to 

reconcile such records with the records at the final destination of 

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 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 merchandise has 

changed; and 7) the number of entries that remain unreconciled. 

Senate Amendment 

Section 113 of the Senate amendment is the same as section 

113 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 


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SECTION 114. IMPORTER OF RECORD PROGRAM

Present Law 

No provision. 

House Amendment 

Section 114(a) requires the Secretary of Homeland Security to 

establish an importer of record program to assign and maintain importer of record numbers. 

Section 114(b) requires the Secretary to ensure that CBP develops criteria that importers must meet in order to obtain an importer of record number, provides a process by which importers are 

assigned importer of record numbers, maintains a centralized database of importer of record numbers, evaluates and maintains accuracy of the database if importer information changes, and takes 

measures to ensure that duplicate importer of record numbers are 

not issued. 

Section 114(c) requires the Secretary of Homeland Security to 

submit a report to the Senate Committee on Finance and the 

House Committee on Ways and Means on the establishment of the 

importer of record program no later than one year after enactment 

of the Trade Facilitation and Trade Enforcement Act of 2015. 

Senate Amendment 

Section 114 of the Senate amendment is the same as section 

114 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 115. ESTABLISHMENT OF IMPORTER RISK ASSESSMENT

PROGRAM

Present Law 

No provision. 

House Amendment 

Section 115(a) requires the Commissioner to establish a new 

importer program that directs CBP to adjust bond amounts for new 

importers based on the level of risk assessed by CBP for revenue 

protection. 

In establishing this program, section 115(b) requires CBP to: 

1) develop risk-based criteria to assess new importers; 2) develop 

risk assessment guidelines for new importers to determine if and 

to what extent to adjust the bond amounts and increase screening 

of imports of new importers; 3) develop procedures to ensure increased oversight of imported products of new importers relating to 

the enforcement of priority trade issues; 4) develop procedures to 

ensure increased oversight by Centers of Excellence and Expertise; 

and 5) establish a centralized database of new importers to ensure 

the accuracy of information provided by new importers pursuant to 

the requirements of this section. 


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Senate Amendment 

Section 115 of the Senate amendment is the same as section 

115 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment except that the Commissioner is required 

to establish a program that directs CBP to adjust bond amounts for 

importers, including new importers and non-resident importers, 

based on the level of risk assessed by CBP for revenue protection. 

In establishing this program, CBP is required to: 1) develop 

risk-based guidelines to determine if and to what extent to adjust 

bond amounts and screen imported products of importers, including 

new and non-resident importers; 2) develop procedures to ensure 

increased oversight of imported products of new importers, including new non-resident importers, relating to the enforcement of the 

priority trade issues; 3) develop procedures to ensure increased 

oversight of imported products of new importers, including new 

non-resident importers, by Centers of Excellence and Expertise; 

and 4) establish a centralized database of new importers, including 

new non-resident importers, to ensure the accuracy of information 

provided by such importers pursuant to the requirements of this 

section. The requirements of this section shall not apply to any importer that 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.). 

No later than two years after the enactment of this Act, the 

Inspector General of the Department of 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 detailing: 1) the risk assessment guidelines required by this section; 2) 

the procedures developed to ensure increased oversight of imported 

products of new importers, including new non-resident importers, 

relating to the enforcement of priority trade issues; 3) the procedures developed to ensure increased oversight of imported products 

of new importers, including new non-resident importers, by Centers 

of Excellence and Expertise; and 4) the number of bonds adjusted 

based on the risk assessment guidelines required by this section. 

SECTION 116. CUSTOMS BROKER IDENTIFICATION OF IMPORTERS

Present Law 

Section 641 of the Tariff Act of 1930 establishes requirements 

and procedures for customs brokers in acquiring a license or permit, disciplinary proceedings, and judicial appeals of revocation or 

suspension of a broker’s license. 

House Amendment 

Section 116(a) amends section 641 of the Tariff Act of 1930 by 

inserting a new provision that requires the Secretary of Homeland 

Security to prescribe regulations setting minimum standards for 

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kers and importers, upon adequate notice, to comply with procedures for collecting the identity of importers, including nonresident 

importers, seeking to import merchandise into the United States, 

and maintain records of the information used to substantiate a person’s identity. This section further provides that a customs broker 

will be penalized, at the discretion of the Secretary, in an amount 

not exceeding $10,000 for each violation of the regulations concerning the collection and maintenance of importer’s identity and 

identifying information, and the broker’s license or permit will be 

subject to revocation or suspension, pursuant to procedures established in section 641(d) of the Tariff Act of 1930. 

Section 116(b) requires the Commissioner to submit a report to 

Congress no later than 180 days after enactment of this bill containing recommendations for 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), and for 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. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House amendment except that the regulations shall, at a minimum: 1) identify the information that an importer, including a nonresident importer, must 

submit to a broker in order to verify the identity of the importer; 

2) identify the reasonable procedures that a broker must perform 

to verify the authenticity of the information collected from the importer; and 3) require the broker to maintain records of the information collected to verify an importer’s identity. Further, the penalties required under this section shall be assessed in the same 

manner and under the same procedures as the monetary penalties 

provided for in 19 U.S.C. 1641(d)(2)(A). 

SECTION 117. PRIORITY TRADE ISSUES

Present Law 

No provision. 

House Amendment 

Section 118(a) requires the Commissioner to establish the following as priority trade issues within CBP: 1) agriculture programs; 2) antidumping and countervailing duties; 3) import safety; 

4) intellectual property rights; 5) revenue; 6) textiles and wearing 

apparel; and 7) trade agreements and preference programs. 

Section 118(b) authorizes the Commissioner to establish new 

priority trade issues and eliminate, consolidate or otherwise modify 

them upon the determination that it is necessary and appropriate 

to do so with notification to the Committee on Finance and the 


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Committee on Homeland Security and Governmental Affairs of the 

Senate and the Committee on Ways and Means and the Committee 

on Homeland Security of the House of Representatives no later 

than 60 days before such changes are to take effect. 

Senate Amendment 

Section 111 of the Senate amendment includes a list of priority 

trade issues (PTI) that is the same as the PTIs identified in section 

118 of the House amendment. The Senate amendment, however, 

requires notification by CBP not later than 30 days after the establishment of a new PTI. The amendments also differ in the recipients of the required report. 

Conference Agreement 

The conference agreement follows the House amendment and 

requires the Commissioner to notify the committees of 1) new PTIs 

no later than 30 days after the establishment of the new PTI, and 

2) a summary of proposals to eliminate, consolidate or otherwise 

modify existing PTIs no later than 60 days before such changes are 

to take effect. 

SECTION 118. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED

Present Law 

No provision. 

House Amendment 

Section 119 defines the term ‘‘appropriate congressional committees,’’ as used in title I of the Trade Facilitation and Trade Enforcement Act of 2015, as the Committee on Finance and the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Ways and Means and the Committee on 

Homeland Security of the House of Representatives. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House amendment. 

TITLE II—IMPORT HEALTH AND SAFETY

SECTION 201. INTERAGENCY IMPORT SAFETY WORKING GROUP

Present Law 

No provision. 

House Amendment 

Section 201(a) establishes an Interagency Import Safety Working Group. 

Section 201(b) sets forth the membership of the Working Group 

and designates the Secretary of Homeland Security as the Chair 

and the Secretary of Health and Human Services as the ViceChair. The membership of the Working Group also shall include 

the Secretaries of the Treasury, Commerce and Agriculture; the 


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United States Trade Representative; the Director of the Office of 

Management and Budget; the Commissioners of CBP and the Food 

and Drug Administration; the Chairman of the Consumer Product 

Safety Commission; the Director of ICE; and the head of any other 

Federal agency designated by the President to participate. 

Section 201(c) requires the Working Group to 1) consult on the 

development of a joint import safety rapid response plan required 

under section 202; 2) evaluate federal government and agency resources, plans, and practices to ensure the safety of U.S. imports 

and the expeditious entry of such merchandise; 3) review the engagement and cooperation of foreign governments and foreign manufacturers; 4) identify best practices, in consultation with the private sector, to assist U.S. importers in ensuring import health and 

safety of imported merchandise; 5) identify best practices to improve Federal, state, and local coordination in responding to import 

health and safety threats; and 6) identify appropriate steps to improve domestic accountability and foreign government engagement 

with respect to imports. 

Senate Amendment 

Section 201 of the Senate amendment is the same as section 

201 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN

Present Law 

No provision. 

House Amendment 

Section 202(a) requires the Secretary of Homeland Security, in 

consultation with the Working Group, to develop a joint import 

safety rapid response plan (the Plan) that establishes protocols and 

practices CBP should use when responding to cargo that poses a 

threat to the health or safety of U.S. consumers. 

Section 202(b) sets forth the contents of the Plan, which must 

define 1) the authorities and responsibilities of CBP and other Federal agencies in responding to an import health or safety threat; 2) 

the protocols and practices used in responding to such threats; 3) 

the mitigation measures CBP and other agencies must take when 

responding to such threats after the incident to ensure the resumption of the entry of merchandise into the United States; and 4) exercises CBP should take with Federal, State, and local agencies as 

well as the private sector to simulate responses to such threats. 

Section 202(c) requires the Secretary of Homeland Security to 

review and update the joint import safety rapid response plan, as 

appropriate, after conducting exercises under subsection (d). 

Section 202(d) requires the Commissioner, in conjunction with 

Federal, State, and local agencies, to conduct exercises to test and 

evaluate the Plan. When conducting exercises, the Commissioner 

must make allowances for the specific needs of the port where the 


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exercise is occurring, base evaluations on current import risk assessments, and ensure that the exercises are conducted consistent 

with other national preparedness plans. The Secretary of Homeland Security and Commissioner must ensure that the testing and 

evaluations use performance measures in order to identify best 

practices and recommendations in responding to import health and 

safety threats and develop metrics with respect to the resumption 

of the entry of merchandise into the United States. Best practices 

and recommendations should then be shared among relevant stakeholders and incorporated into the Plan. 

Senate Amendment 

Section 202 of the Senate amendment is the same as section 

202 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 203. TRAINING

Present Law 

No provision. 

House Amendment 

Section 203 requires the Commissioner to ensure that CBP 

port personnel are trained to effectively enforce U.S. import health 

and safety laws. 

Senate Amendment 

Section 203 of the Senate amendment is the same as section 

203 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

TITLE III—IMPORT-RELATED PROTECTION OF INTELLECTUAL

PROPERTY RIGHTS

SECTION 301. DEFINITION OF INTELLECTUAL PROPERTY RIGHTS

Present Law 

No provision. 

House Amendment 

Section 301 defines ‘‘intellectual property rights,’’ as used in 

this title, as copyrights, trademarks, and other forms of intellectual 

property rights that are enforced by CBP and ICE. 

Senate Amendment 

Section 301 of the Senate amendment is the same as section 

301 of the House amendment. 


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Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 302. EXCHANGE OF INFORMATION RELATED TO TRADE

ENFORCEMENT

Present Law 

Section 818(g) of the 2012 National Defense Authorization Act 

(NDAA) authorizes, but does not require, CBP to share unredacted 

images and samples with right holders if CBP suspects a product 

of infringing a trademark. 

House Amendment 

Section 302 amends the Tariff Act of 1930 to create section 

628A, which requires CBP to share certain information about merchandise suspected of violating intellectual property rights (IPR) 

prior to seizure if CBP determines that examination or testing of 

the merchandise by the right holder would assist in determining if 

there is a violation, except in such cases as would compromise an 

ongoing law enforcement investigation or national security. Section 

302 supersedes section 818(g) of the 2012 NDAA. 

Senate Amendment 

Section 302 of the Senate amendment is the same as section 

302 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 303. SEIZURE OF CIRCUMVENTION DEVICES

Present Law 

Section 596(c)(2) of the Tariff Act of 1930 specifies a number 

of items that are to be seized by CBP when presented for importation, including ‘‘merchandise or packaging in which copyright, 

trademark, or trade name protection violations are involved.’’ 

House Amendment 

Section 303(a) expands CBP’s seizure and forfeiture authority 

to explicitly include unlawful circumvention devices, as defined 

under subsection (a)(2) or (b)(1) of section 1201 of title 17, United 

States Code. 

Section 303(b) directs CBP to disclose certain information to 

right holders about the seized merchandise within 30 days of seizure, if the right holder is included on a list maintained by CBP. 

The information that must be provided is the same information 

provided to copyright owners under CBP regulations for merchandise seized under copyright laws. CBP must prescribe regulations 

establishing procedures that implement this process within one 

year of the date of enactment of this bill. 


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Senate Amendment 

Section 303 of the Senate amendment is the same as section 

303 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

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

Present Law 

No provision. 

House Amendment 

Section 304 directs the Secretary of Homeland Security to establish a process for the enforcement of copyrights for which the 

owner has submitted an application for registration with the U.S. 

Copyright Office to the same extent and in the same manner as if 

the copyright were registered with the Copyright Office. 

Senate Amendment 

Section 304 of the Senate amendment is the same as section 

304 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS

COORDINATION CENTER

Present Law 

No provision. 

House Amendment 

Section 305(a) establishes within ICE the National Intellectual 

Property Rights Coordination Center (IPR Center), which shall be 

headed by an Assistant Director. 

Section 305(b) assigns the Assistant Director duties, including: 

1) coordinating the investigation of sources of merchandise that infringes intellectual property rights (IPR); 2) conducting and coordinating training with other domestic and international law enforcement agencies to improve IPR enforcement; 3) coordinating, with 

CBP, U.S. activities to prevent the importation or exportation of 

IPR infringing merchandise; 4) supporting the international interdiction of merchandise destined for the U.S. that infringe IPR; 5) 

collecting and integrating information regarding infringements; 6) 

developing a means to receive and organize information regarding 

infringement of IPR; 7) disseminating information regarding infringement of IPR to other Federal agencies; 8) developing riskbased alert systems in coordination with CBP; and 9) coordinating 

with U.S. Attorneys’ offices to investigate and prosecute IPR crime. 


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Section 305(c) requires the Assistant Director to coordinate 

with federal, state, local and international law enforcement, intellectual property, and trade agencies, as appropriate, in carrying out 

the IPR Center’s duties. 

Section 305(d) requires the Assistant Director to: 1) conduct 

outreach to the private sector to determine trends in and methods 

of infringing IPR; and 2) coordinate public and private-sector efforts to combat the infringement of IPR. 

Senate Amendment 

Section 305 of the Senate amendment is the same as section 

305 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT OF

INTELLECTUAL PROPERTY RIGHTS

Present Law 

No provision. 

House Amendment 

Section 306 requires the Commissioner and Director to include 

in the joint strategic plan on trade facilitation and enforcement required under section 105 of the amendment the following: 1) a description of DHS’s IPR enforcement efforts; 2) a list of the top 10 

ports, by volume and value, where CBP seized IPR infringing goods 

in the preceding two years; and 3) a recommendation of the optimal 

allocation of personnel to ensure CBP and ICE are effectively enforcing IPR. 

Senate Amendment 

Section 306 of the Senate amendment is the same as section 

306 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 307. PERSONNEL DEDICATED TO THE ENFORCEMENT OF

INTELLECTUAL PROPERTY RIGHTS

Present Law 

No provision. 

House Amendment 

Section 307(a) requires the Commissioner to ensure sufficient 

personnel are assigned throughout CBP with responsibility to enforce intellectual property rights with respect to U.S. imports. 

Section 307(b) requires the Commissioner to assign at least 

three full-time CBP employees to the IPR Coordination Center established under section 305 and to ensure that sufficient personnel 


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are assigned to U.S. ports of entry to carry out the directives of the 

IPR Coordination Center established under section 305. 

Senate Amendment 

Section 307 of the Senate amendment is the same as section 

307 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 308. TRAINING WITH RESPECT TO THE ENFORCEMENT OF

INTELLECTUAL PROPERTY RIGHTS

Present Law 

No provision. 

House Amendment 

Section 308(a) requires the Commissioner to effectively train 

CBP port personnel to detect and identify IPR infringing imported 

goods. 

Section 308(b) requires the Commissioner to work with the private sector to identify opportunities for collaboration with respect 

to training for officers of the agency to enforce IPR. 

Section 308(c) requires the Commissioner to consult with private sector entities to identify technologies which can cost-effectively identify infringing merchandise, and to provide for cost-effective training for CBP officers with regard to the use of such technologies. 

Section 308(d) permits CBP to receive donations of technology 

to improve IPR enforcement. 

Senate Amendment 

Section 308 of the Senate amendment is the same as section 

308 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 309. INTERNATIONAL COOPERATION AND INFORMATION

SHARING

Present Law 

Section 628 of the Tariff Act of 1930 permits CBP to exchange 

information or documents with foreign customs and law enforcement agencies if the Secretary of the Treasury reasonably believes 

the exchange of information is necessary to comply with CBP laws 

and regulations, to enforce a trade agreement to which the United 

States is a party, to assist in investigative, judicial and quasi-judicial proceedings in the United States, or for any similar action undertaken by a foreign law enforcement agency in a foreign country. 


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House Amendment 

Section 309 requires the Secretary of Homeland Security to coordinate with competent foreign law enforcement agencies to enhance IPR enforcement, including by information sharing and technical assistance, and requires the Commissioner and the Director 

of ICE to lead interagency efforts to collaborate with law enforcement and customs authorities of foreign countries. 

Senate Amendment 

Section 309 of the Senate amendment is the same as section 

309 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS

ENFORCEMENT

Present Law 

No provision. 

House Amendment 

Requires the Commissioner of CBP and the Director of ICE to 

jointly submit to the Committee on Finance and Committee on 

Homeland Security and Governmental Affairs of the Senate and 

the Committee on Ways and Means and Committee on Homeland 

Security of the House of Representatives a report that includes: 1) 

information regarding the number, and a description of, certain efforts to investigate and prosecute IPR infringements; 2) an estimate of the average time required by the CBP Office of International Trade to respond to a request from port personnel for advice with respect to whether merchandise detained by the Agency 

infringed IPR, distinguished by types of IPR infringed; 3) a summary of the outreach efforts of CBP and ICE with respect to interdiction, investigation and information sharing between certain 

agencies related to the infringement of IPR, collaboration with the 

private sector, and coordination with foreign governments; 4) a 

summary of the efforts of CBP and ICE to address the challenges 

with respect to the enforcement of IPR presented by Internet commerce and the transit of small packages and an identification of 

the volume, value, and type of merchandise seized for infringing 

IPR as a result of such efforts; and 5) a summary of training relating to the enforcement of IPR conducted under section 308 and expenditures for such training. 

Senate Amendment 

Section 310 of the Senate amendment is the same as section 

310 of the House amendment with the exception of a difference in 

the recipients of the report required in this section. 


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Conference Agreement 

The conference agreement follows the House amendment, except that it changes the due date of the report to September 30th 

of each year. 

SECTION 311. INFORMATION FOR TRAVELERS REGARDING VIOLATIONS

OF INTELLECTUAL PROPERTY RIGHTS

Present Law 

No provision. 

House Amendment 

Section 311(a) requires the Secretary of Homeland Security to 

develop and implement an educational campaign for travelers entering or departing the United States on the legal, economic, and 

public health and safety implications of importing IPR infringing 

goods into the United States. 

Section 311(b) requires the Commissioner to ensure that all 

versions, including the electronic versions, of CBP Form 6059B 

(customs declaration), or a successor form, include a written warning to inform travelers arriving in the United States that importation of merchandise that infringes IPR may subject travelers to 

civil or criminal penalties and may pose serious risks to health and 

safety. 

Senate Amendment 

Section 311 of the Senate amendment is the same as section 

311 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

TITLE IV—PREVENTION OF EVASION OF ANTIDUMPING AND

COUNTERVAILING DUTY ORDERS

SECTION 401. SHORT TITLE

Present Law 

No provision. 

House Amendment 

Section 401 sets forth the short title as the ‘‘Preventing Recurring Trade Evasion and Circumvention Act.’’ 

Senate Amendment 

Section 401 of the Senate amendment sets forth the short title 

as the ‘‘Enforcing Orders and Reducing Customs Evasion Act of 

2015.’’ 

Conference Agreement 

The conference agreement sets forth the short title as the ‘‘Enforce and Protect Act of 2015.’’ 


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SECTION 402. DEFINITIONS

Present Law 

No provision. 

House Amendment 

Section 402 establishes the applicable definitions for this title. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House amendment. 

SECTION 403. APPLICATION TO CANADA AND MEXICO

Present Law 

Article 1902 of the North American Free Trade Agreement 

(NAFTA) (19 U.S.C. 3438) states that any amendments to title VII 

of the Tariff Act of 1930, or to any other statute which provides for 

judicial review of determinations under that title or the standard 

of review to be applied, shall apply to goods from a NAFTA country 

only to the extent specified in the amendment. 

House Amendment 

Section 403 provides that this title applies to goods from Canada and Mexico, the current members of NAFTA. 

Senate Amendment 

Section 402(e) of the Senate amendment is the same as section 

403 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

Subtitle A—Actions Relating to Enforcement of Trade Remedy 

Laws 

SECTION 411. TRADE REMEDY LAW ENFORCEMENT DIVISION

Present Law 

No provision. 

House Amendment 

Section 411(a) establishes within the Office of International 

Trade of CBP a Trade Law Remedy Enforcement Division. The 

Trade Law Remedy Division’s duties are to: develop and administer 

policies to prevent and counter evasion; direct enforcement and 

compliance assessment activities concerning evasion; develop and 

conduct commercial risk assessment targeting with respect to potentially evading cargo destined for the United States; issuing 

Trade Alerts regarding evading imports; and develop policies for 

the application of single entry and continuous bonds to sufficiently 

protect the collection of antidumping and countervailing duties. 


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Section 411(b) establishes the Director of the Trade Law Remedy Enforcement Division responsible for: directing the trade enforcement and compliance assessment activities of CBP regarding 

evasion; improving cooperation and the exchange of information between CBP, ICE, and other relevant agencies regarding evasion; 

notifying the Department of Commerce and the International 

Trade Commission of any findings, determinations, or criminal actions taken by CBP or other Federal agency regarding evasion; and 

serving as the primary liaison between CBP and the public regarding United States Government activities concerning evasion. The 

Director’s liaison responsibilities include: receiving and transmitting to the appropriate CBP office parties’ allegations of evasion; 

provide information to a party that submitted an allegation of evasion on the status of CBP’s consideration of the allegation and decision to pursue or not pursue any administrative inquiries or other 

actions; request from the party that submitted an allegation of evasion any additional information that may be relevant for CBP determining whether to initiate an administrative inquiry or take any 

other action regarding the allegation; notify on a timely basis the 

party that submitted such an allegation of the results of any administrative, civil or criminal actions taken by CBP or other Federal agency regarding evasion as a direct or indirect result of the 

allegation; provide technical assistance and advice to eligible small 

businesses to enable such businesses to prepare and submit allegations of evasion; develop guidelines on the types and nature of information that may be provided in allegations of evasion; and regularly consult with relevant parties and organizations regarding the 

development and implementation of regulations, interpretations, 

and policies related to countering evasion. 

Section 411(c) establishes within the Trade Remedy Law Enforcement Division a National Targeting and Analysis Group 

(NTAG) dedicated to preventing and countering evasion through establishing targeted risk assessment methodologies and standards. 

Section 411(d) requires the Director of the Trade Remedy Law 

Enforcement Division to issue Trade Alerts to port directors as required to inspect imported merchandise, require additional bonds, 

and take other actions necessary to prevent evasion. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House amendment, except also adding that the duties of the Trade Remedy Law Enforcement Division and its director include those policies and activities 

related to implementing section 517 of the Tariff Act of 1930, as 

added by section 421 of this Act. The conference agreement establishes the Trade Law Remedy Enforcement Division in the Office 

of Trade, the successor office to the Office of International Trade. 


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SECTION 412. COLLECTION OF INFORMATION ON EVASION OF TRADE

REMEDY LAWS

Present Law 

No provision. 

House Amendment 

Section 412(a) directs CBP to exercise all existing information 

collection authorities to identify evasion and authorizes CBP to 

issue questionnaires to collect information on alleged evasion from 

persons who have information relevant to an allegation of evasion. 

If a person fails to cooperate to provide requested information, 

section 412(b) authorizes CBP to apply an adverse inference 

against the interests of that party in determining if evasion occurred. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House amendment, except also clarifying that an adverse inference may be used with respect to a person alleged to have entered covered merchandise 

through evasion, or a foreign producer or exporter of covered merchandise alleged to have entered through evasion regardless of 

whether another person involved in the same transaction or transactions has provided requested information. 

SECTION 413. ACCESS TO INFORMATION

Present Law 

Section 777(b)(1)(A)(ii) of the Trade Act of 1930, at 19 U.S.C. 

1677f(b)(1)(A)(ii), authorizes the Department of Commerce and the 

International Trade Commission to transfer to CBP information 

that was designated proprietary by the person submitting the information, for purposes of conducting an investigation regarding 

fraud. 

House Amendment 

Section 413(a) amends section 777(b)(1)(A)(ii) of the Trade Act 

of 1930 by allowing the Department of Commerce and the International Trade Commission to transfer information designated proprietary by the person submitting the information to CBP for investigations of negligence and gross negligence, rather than just for 

fraud. 

Section 413(b) authorizes the Secretary of the Treasury to provide to the Department of Commerce or the International Trade 

Commission any information that would enable the Department of 

Commerce or the International Trade Commission to assist in identifying imports evading antidumping or countervailing duties. 

Senate Amendment 

No provision. 


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Conference Agreement 

The conference agreement follows the House amendment. 

SECTION 414. COOPERATION WITH FOREIGN COUNTRIES ON

PREVENTING EVASION OF TRADE REMEDY LAWS

Present Law 

No provision. 

House Amendment 

Section 414(a) requires the negotiation of bilateral agreements 

with other countries’ customs authorities to cooperate on preventing evasion. These agreements should include provisions allowing the sharing of information to determine if evasion occurred, 

verification of such information, allowing officials from the importing country to participate in such verifications, and, if a country refuses to allow officials from an importing country to participate in 

a verification, allowing the importing country to take such lack of 

cooperation into account in its trade enforcement and compliance 

activities. 

Section 414(b) allows CBP to take into account whether a country is a party to a bilateral agreement regarding cooperation on 

evasion and the extent to which that country is cooperating under 

such an agreement for the purposes of trade enforcement and compliance assessment of that country’s exports regarding potential 

evasion. 

Section 414(c) requires an annual report to Congress on the 

status of ongoing negotiations of bilateral cooperation agreements 

regarding evasion, the terms of any such completed agreements, 

and any cooperation and other activities conducted as a result of 

such agreements. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House amendment. 

SECTION 415. TRADE NEGOTIATING OBJECTIVES

Present Law 

No provision. 

House Amendment 

Section 415 establishes obtaining the commitments for cooperation on evasion described in section 414 as a negotiating objective 

for current trade agreements under negotiation and future agreements. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House amendment. 


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Subtitle B—Investigation of Evasion of Trade Remedy Laws 

SECTION 421. PROCEDURES FOR INVESTIGATION OF EVASION OF

ANTIDUMPING AND COUNTERVAILING DUTY ORDERS

Present Law 

No provision. 

House Amendment 

Section 421 grants the Department of Commerce the authority 

to administratively investigate evasion and order CBP to collect or 

preserve for collection antidumping and countervailing duties owed 

on evading imports. In addition to defining required terms, section 

421(a) excludes from these investigations evasion that is the result 

of clerical errors unless the errors reflect a pattern of negligent 

conduct. 

Section 421(b) establishes the procedures for evasion investigations. The Department of Commerce may self-initiate an evasion 

investigation, or may initiate an investigation as a result of an adequate petition from an interested party or a referral from CBP. 

CBP is required to refer a matter to the Department of Commerce 

if CBP has information that evasion occurred, but cannot determine if the merchandise is in fact subject to an antidumping or 

countervailing duty order. The Department of Commerce has 30 

days after receiving a petition or referral to determine whether to 

initiate an investigation. The Department of Commerce is to notify 

CBP if it initiates an evasion investigation as a result of a petition 

from an interested party. 

CBP is required to provide documents and information requested by the Department of Commerce for an evasion investigation within 10 days after the request and these documents and information will be available to authorized representatives of interested parties under an administrative protective order. If an authorized representative of an interested party has access to business proprietary information from another Department of Commerce proceeding under an administrative protective order issued 

in that proceeding and this information is relevant to an evasion 

investigation, the authorized representative may submit this information on the record of the evasion investigation. The Department 

of Commerce is authorized to issue questionnaires to interested 

parties in an evasion investigation and to make an adverse inference against a party that fails to cooperate to the best of its ability. 

The Department of Commerce is to issue a preliminary determination of whether there is a reasonable basis to believe or suspect evasion within 90 days after initiation of the investigation and 

a final determination of evasion within 300 days after initiation. If 

the Department of Commerce makes an affirmative preliminary determination of evasion, CBP is to suspend liquidation of entries of 

evading merchandise on or after the preliminary determination and 

any unliquidated entries before that date. A cash deposit is also required for such entries reflecting the applicable rates previously determined by the Department of Commerce. 

If the Department of Commerce makes an affirmative final determination of evasion, CBP is to assess the applicable antiVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00187 Fmt 6601 Sfmt 6601 E:\HR\OC\HR376.XXX HR376

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dumping and countervailing duties on entries of evading merchandise, including such entries that were already liquidated, and to review and reassess the amount of bond or other security the importer must post for entries of such merchandise on or after the 

date of the final determination. The Department of Commerce may 

also instruct CBP to require a cash deposit or bond on entries of 

such merchandise on or after the date of the final determination 

in the amount of antidumping and countervailing duties potentially 

owed on the merchandise. If the Department of Commerce cannot 

determine the amount of the applicable antidumping and countervailing duty rate or cash deposit because the actual producer or exporter of the merchandise is unknown, then the highest amount for 

any producer or exporter will be applied. If the Department of 

Commerce makes a negative final determination of evasion, then 

any suspension of liquidation is ended and any cash deposits refunded. The preliminary and final determinations in an evasion investigation are to be published in the Federal Register, as well as 

the notice of initiation of such an investigation. 

If the Department of Commerce makes an affirmative preliminary or final determination of evasion, it is required to transmit 

the administrative record of the investigation to CBP and any 

other agency that requests the administrative record. After making 

a final determination, the Department of Commerce may also provide importers information discovered in an investigation that 

would help educate importers on complying with importing merchandise in accordance with U.S. laws and regulations. 

The Department of Commerce and CBP are to establish procedures to maximize cooperation and communication between the two 

agencies to quickly, efficiently, and accurately investigation allegations of evasion. The Department of Commerce will issue annual 

reports to Congress on the conduct of evasion investigations. 

Section 421(b) makes a technical amendment to the table of 

contents for title VII of the Trade Act of 1930 to reflect this subtitle. 

Section 421(c) establishes that the Department of Commerce’s 

final determination in an evasion investigation is subject to judicial 

review by the U.S. Court of International Trade. 

Section 421(d) instructs the Department of Commerce and CBP 

to issue regulations to implement this subtitle. 

Section 421(e) provides that the amendments in this subtitle 

are effective 180 days after enactment and applies to merchandise 

entered on or after the date of enactment. 

Senate Amendment 

Section 402 requires that if the Commissioner makes an affirmative determination of evasion, the Commissioner shall: 1) suspend the liquidation of any unliquidated entries of the covered merchandise that is the subject of the allegation entered between the 

date of initiation and the date of the determination; 2) extend the 

period for liquidating any unliquidated entries of merchandise that 

entered before the initiation of the investigation; 3) notify Commerce of the determination and request that Commerce determine 

the appropriate duty rates for such covered merchandise; 4) require 

importers of such covered merchandise to post cash deposits and 


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assess duties on the covered merchandise as directed by Commerce; 

and 5) take such additional enforcement measures as the Commissioner deems appropriate, including initiating proceedings for related violations of law, modifying CBP’s procedures for identifying 

future evasion, requiring a deposit of estimated duties on future 

entries, and referring the matter to ICE for civil or criminal investigation. The section also requires the Department of Commerce to 

promptly provide the Commissioner with cash deposit rates and 

antidumping and countervailing duty rates, and establishes a special rule for cases in which the producer or exporter is unknown. 

Under section 402, the Commissioner must determine within 

90 calendar days of initiation of an evasion investigation whether 

there is a reasonable suspicion that entries of covered merchandise 

that are the subject of the allegation were entered through evasion. 

If the Commissioner decides there is a reasonable suspicion, the 

Commissioner shall: 1) suspend the liquidation of any unliquidated 

entries of the covered merchandise entered after the date of initiation; 2) extend the period for liquidating any unliquidated entries 

of merchandise that entered before the initiation of the investigation; and 3) take any additional measures necessary to protect the 

ability to collect appropriate duties, which may include requiring a 

single transaction bond or posting cash deposits with respect to entries of covered merchandise. 

Section 402 requires that if the Commissioner makes an affirmative determination of evasion, the Commissioner shall (1) suspend the liquidation of any unliquidated entries of the covered merchandise that is the subject of the allegation entered between the 

date of initiation and the date of the determination; (2) extend the 

period for liquidating any unliquidated entries of merchandise that 

entered before the initiation of the investigation; (3) notify Commerce of the determination and request that Commerce determine 

the appropriate duty rates for such covered merchandise; (4) require importers of such covered merchandise to post cash deposits 

and assess duties on the covered merchandise as directed by Commerce; and (5) take such additional enforcement measures as the 

Commissioner deems appropriate, including initiating proceedings 

for related violations of law, modifying CBP’s procedures for identifying future evasion, requiring a deposit of estimated duties on future entries, and referring the matter to ICE for civil or criminal 

investigation. The section also requires the Department of Commerce to promptly provide the Commissioner with cash deposit 

rates and antidumping and countervailing duty rates, and establishes a special rule for cases in which the producer or exporter is 

unknown. 

Under section 402, the Commissioner must determine within 

90 calendar days of initiation of an evasion investigation whether 

there is a reasonable suspicion that entries of covered merchandise 

that are the subject of the allegation were entered through evasion. 

If the Commissioner decides there is a reasonable suspicion, the 

Commissioner shall (1) suspend the liquidation of any unliquidated 

entries of the covered merchandise entered after the date of initiation; (2) extend the period for liquidating any unliquidated entries 

of merchandise that entered before the initiation of the investigation; and (3) take any additional measures necessary to protect the 


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ability to collect appropriate duties, which may include requiring a 

single transaction bond or posting cash deposits with respect to entries of covered merchandise. 

Section 402 provides a period of 30 business days for interested 

party who made the allegation of evasion or the importer of the 

covered merchandise alleged to have entered the merchandise subject to the evasion determination to request de novo administrative 

review by the Commissioner after notification of a determination. 

Section 402 establishes that judicial review shall be available to 

the interested party alleging evasion or the party found to have entered merchandise subject to the investigation through evasion of 

any administrative review of the evasion determination by CBP. 

Section 402 also sets out a rule of construction with respect to 

other civil and criminal proceedings so that no determination under 

subsection (c) or action taken by the Commissioner pursuant to the 

section shall be construed to limit the authority to carry out, or the 

scope of, any other proceeding or investigation pursuant to any 

other provision of Federal or State law. 

Conference Agreement 

The conference agreement follows the Senate amendment except for the following changes. The definition of the term ‘‘interested party’’ is expanded to include a foreign manufacturer, producer, or exporter, or the United States importer, of covered merchandise, or a trade or business association a majority of the members of which are producers, exporters, or importers of such merchandise. 

The Commissioner has 15 business days after receiving an evasion allegation or a referral to determine whether to initiate an investigation. 

If the Commissioner is unable to determine whether the merchandise at issue is covered merchandise, the Commissioner shall 

refer the matter to the Department of Commerce to determine 

whether the merchandise is covered merchandise. The Department 

of Commerce is to make this determination pursuant to its applicable statutory and regulatory authority, and the determination shall 

be subject to judicial review under 19 U.S.C. 1516a(a)(2). The Conferees intend that such determinations include whether the merchandise at issue is subject merchandise under 19 U.S.C. 1677j. 

The time required for the Department of Commerce to determine 

whether the merchandise at issue is covered merchandise shall not 

be counted in calculating any deadlines under the procedures created by this section. 

The Commissioner has 300 calendar days after the date on 

which an evasion investigation was initiated to make a determination as to whether the covered merchandise was entered through 

evasion. If the Commissioner concludes that the investigation is extraordinarily complicated and additional time is necessary to make 

a determination, then the Commission may extend the time to 

make a determination by no more than 60 calendar days. 

It is clarified that an adverse inference may be used with respect to a person alleged to have entered covered merchandise 

through evasion, or a foreign producer or exporter of covered merchandise alleged to have entered through evasion regardless of 


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whether another person involved in the same transaction or transactions has provided requested information. 

The standard of review for judicial review of an investigation 

is clarified to be whether the Commissioner fully complied with all 

procedures in making a determination and conducting an administrative review of that determination and whether any determination, finding, or conclusion is arbitrary, capricious, or an abuse of 

discretion. Other technical changes were made to the judicial review provision. 

SECTION 422. GOVERNMENT ACCOUNTABILITY OFFICE REPORT

Present Law 

No provision. 

House Amendment 

Section 422 directs the Government Accountability Office to 

submit to Congress a report on the effectiveness of the provisions 

made by this title and the actions by the Department of Commerce 

and CBP pursuant to this title. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement does not contain this section. Under 

the House amendment, the Department of Commerce would conduct evasion investigations, and the primary purpose of the report 

was to monitor the cooperation of the Department of Commerce 

and CBP in the Department of Commerce’s conduct of such investigations. This report is not required under the Conference Agreement because the Senate amendment is being followed, which has 

CBP conduct evasion investigations. 

Subtitle C—Other Matters 

SECTION 431. ALLOCATION AND TRAINING OF PERSONNEL

Present Law 

No provision. 

House Amendment 

Section 431 requires CBP, to the maximum extent possible, to 

assign sufficient personnel responsible for preventing and investigating evasion and to provide adequate training for such personnel. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House amendment. 


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SECTION 432. ANNUAL REPORT ON PREVENTION OF EVASION OF

ANTIDUMPING AND COUNTERVAILING DUTY ORDERS

Present Law 

No provision. 

House Amendment 

Section 432(a) directs CBP, in consultation with the Department of Commerce and ICE, to provide Congress with an annual 

report on efforts to prevent and investigate evasion. 

The required contents of the report are described in section 

432(b). In addition to metrics on CBP’s activities, resource allocation and training regarding evasion, the report must include a description of CBP’s policies and practices regarding evasion, any 

changes in such policies and practices, and any recommended legislative or other changes to improve the effectiveness of CBP in preventing and identifying evasion. 

Senate Amendment 

Section 403 requires the Commissioner to submit to the Committee on Finance of the Senate and the Committee on Ways and 

Means of the House an annual report on the Commissioner’s efforts 

to prevent and investigate the evasion of antidumping and countervailing duty orders. 

Conference Agreement 

The conference agreement follows the Senate amendment, except to clarify that the report is to cover all types of evasion allegations and investigations. The requirement to report the number of 

investigations not completed within the deadlines provided in section 517 of the Tariff Act of 1930, as added by section 421 of this 

Act, is removed because the Commissioner is statutorily required 

to meet these deadlines. 

SECTION 433. ADDRESSING CIRCUMVENTION BY NEW SHIPPERS

Present Law 

Section 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 

1675(a)(2)(B)) allows new exporters and producers to obtain an individual weighted average dumping margin or individual countervailing duty rate on an expedited basis. While the review to determine the individual margin or duty rate is being conducted, an importer of the new exporter or producer’s merchandise may post a 

bond or security instead of a cash deposit for entries of that merchandise. 

House Amendment 

Section 433 strikes the ability of an importer of a new exporter 

or producer’s merchandise to post a bond or security instead of a 

cash deposit for entries of that merchandise while the Department 

of Commerce is determining the exporter or producer’s individual 

weighted average dumping margin or individual countervailing 

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vailing duty rate for a new exporter or producer must be based on 

bona fide sales in the United States and sets out criteria to be considered in determining if such sales were bona fide. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House amendment. 

TITLE V—SMALL BUSINESS TRADE ISSUES AND STATE TRADE

COORDINATION

SECTION 501. SHORT TITLE

Present Law 

No provision. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement sets forth the short title as the 

‘‘Small Business Trade Enhancement Act of 2015’’ or the ‘‘State 

Trade Coordination Act.’’ 

SECTION 502. OUTREACH AND INPUT FROM SMALL BUSINESSES TO

TRADE PROMOTION AUTHORITY

Present Law 

Per section 203 of Public Law 94–305 (15 U.S.C. 1634c), the 

Office of Advocacy within the Small Business Administration is 

statutorily charged with receiving complaints, criticisms, and suggestions concerning federal policies affecting small businesses, 

transmitting those complaints, criticisms and suggestions to the 

relevant federal regulatory agencies, and developing proposals for 

changes in the policies and activities of federal agencies as those 

relate to small businesses. However, current law does not specifically provide for engagement by the Office of Advocacy during the 

negotiation of trade agreements. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The Conferees agree to amend section 203 of Public Law 94– 

305 (15 U.S.C. 634c) by adding certain provisions and requirements 

concerning the Office of Advocacy. In particular, the provision requires: 1) the Chief Counsel for Advocacy to convene an InterVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00193 Fmt 6601 Sfmt 6601 E:\HR\OC\HR376.XXX HR376

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agency Working Group (IWG) not later than 30 days after the date 

on which the President submits a notification to Congress under 

section 105(a) of Public Law 114–26; 2) the IWG to include representation from the Office of the United States Trade Representative, the Department of Commerce, the Department of Agriculture, 

and any other federal agencies deemed relevant with respect to the 

subject of the trade agreement at issue; 3) the IWG to identify a 

diverse group of small entities to provide to the IWG the views of 

small businesses on the potential economic effects of the trade 

agreement at issue; and 4) the Chief Counsel for Advocacy to submit to relevant Committees of the Senate and the House of Representatives a report on the economic impacts of the trade agreement at issue on small entities. By assigning the Office of Advocacy 

a role in trade negotiations, the legislation will promote consideration of small business interests throughout trade negotiation processes. 

SECTION 503. STATE TRADE EXPANSION PROGRAM

Present Law 

Section 1207 of the Small Business Jobs Act of 2010 (Pub. L. 

111–240) created a pilot State Trade and Export Promotion Grant 

Program to make grants to states to carry out export promotion 

programs for small businesses. These programs include a foreign 

trade mission, a foreign market sales trip, a subscription to services provided by the Department of Commerce, the payment of 

website translation fees, the design of international marketing 

media, a trade show exhibition, and training workshops. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The Conferees agree to rename the ‘‘State Trade and Export 

Promotion Grant Program’’ authorized by the Small Business Jobs 

Act of 2010 the ‘‘State Trade Expansion Program’’ (STEP); to insert 

STEP into section 22 of the Small Business Act (15 U.S.C. 652); 

and to authorize STEP grants at $30 million per year through fiscal year 2020. The Conferees also agree to alter STEP to improve 

coordination between the federal government and the states, to authorize reverse trade missions and procurement of consultancy 

services, and to require the Inspector General of the Small Business Administration to provide to the Congress a report on STEP 

within 18 months of the first grant award. 

SECTION 504. STATE AND FEDERAL EXPORT PROMOTION COORDINATION

Present Law 

Section 2312 of the Export Enhancement Act of 1988 (Public 

Law 100–418) created the Trade Promotion Coordinating Committee (TPCC). The TPCC provides a framework to coordinate and 


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carry out certain export promotion and export financing programs 

of the United States Government. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The Conferees agree to establish a new section 2313A of the 

Export Enhancement Act of 1988, which establishes a State and 

Federal Export Promotion Coordination Working Group as a subcommittee of the TPCC. The subcommittee is charged with coordinating export promotion and export financing activities between 

the federal government and state and local governments. The provision further requires that the Office of International Trade of the 

Small Business Administration, in coordination with other members of the TPCC, submit a report to the Congress that includes 

recommendations to improve the Internet website Export.gov. 

SECTION 505. STATE TRADE COORDINATION

Present law 

Section 2312 of the Export Enhancement Act of 1988 (Public 

Law 100–418) created the Trade Promotion Coordinating Committee (TPCC), which is charged with developing a plan to carry 

out Federal export promotion and export financing programs. The 

TPCC is chaired by the Department of Commerce and comprised 

of representatives from the Office of the United States Trade Representative, the Small Business Administration, the Agency for 

International Development, the Trade and Development Program, 

the Overseas Private Investment Corporation, the Export-Import 

Bank of the United States, and the Departments of Agriculture, 

Energy, State, Transportation, and the Treasury. The President 

may appoint additional departments or agencies to the TPCC. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The Conferees agree to amend section 2312 by: 1) adding to the 

TPCC one or more new members appointed by the President who 

are representatives of state trade promotion agencies; 2) expanding 

the scope of the responsibilities of the TPCC to add a new Federal 

and State Export Promotion Coordination Plan, which shall develop a comprehensive plan to coordinate federal and state export 

promotion resources and strategies; and 3) requiring the TPCC to 

include, as part of its annual report, a survey and analysis regarding the overall effectiveness of Federal-state coordination and export promotion goals. Further, the provision requires: 1) the DeVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00195 Fmt 6601 Sfmt 6601 E:\HR\OC\HR376.XXX HR376

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partment of Commerce to develop an annual Federal-state export 

strategy for each state that provides its export strategy; and 2) the 

Department of Commerce and the state trade promotion agencies 

to develop a coordinated set of reporting metrics on exports and to 

report annually to Congress on the results of the coordination. 

TITLE VI—ADDITIONAL ENFORCEMENT PROVISIONS

Subtitle A—Trade Enforcement 

SECTION 601. TRADE ENFORCEMENT PRIORITIES

Present Law 

No provision. 

House Amendment 

Section 601 requires the Administration to identify, in close 

consultation with Congress, enforcement priorities and to more regularly consult with Congress on the Administration’s enforcement 

strategy. This section also directs the Administration to focus its 

enforcement actions on addressing practices that, if eliminated, 

would likely have the most significant potential to increase economic growth of the United States. 

Senate Amendment 

Section 601 of the Senate amendment is the same section 601 

of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 602. EXERCISE OF WTO AUTHORIZATION TO SUSPEND

CONCESSIONS OR OTHER OBLIGATIONS UNDER TRADE AGREEMENTS

Present Law 

Under section 307(c) of the Trade Act of 1974, a particular action taken under section 301 of the Trade Act of 1974 automatically 

terminates after four years if neither the petitioner nor any representative of the domestic industry that benefits from such action 

has requested its continuation during the last sixty days of the 

four-year period. 

House Amendment 

Section 602 allows the Administration, under certain conditions, to reinstate a retaliatory action if such action has terminated 

previously. To reinstate such action, the Administration must receive a request from an affected domestic industry and engage in 

a detailed analysis and robust consultations with Congress and the 

public. 

Senate Amendment 

Section 602 of the Senate amendment is the same section 602 

of the House amendment. 


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Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 603. TRADE MONITORING

Present Law 

No provision. 

House Amendment 

Section 603(a) requires the International Trade Commission to 

make a web-based import monitoring tool available that provides 

public access to data on the volume and value of goods imports for 

the purposes of determining if such data has changed over time. 

The data used will be from the Department of Commerce and any 

other appropriate government data, and will include data from the 

most recent quarter for which such data are available, plus previous quarters as practicable. 

This provision further requires the Department of Commerce 

to publish on a website monitoring reports on changes in the volume and value of imports and exports of goods categorized based 

on the 6-digit subheadings of the Harmonized Tariff Schedule of 

the United States. The Department of Commerce must also notify 

Congress when the reports are available. These reports are to published at least quarterly and have data for the most recent quarter 

for which such data are available, as well as previous quarters as 

practicable. The Department of Commerce is required to solicit 

public comment on the monitoring reports through the Federal 

Register. 

This provision is to terminate seven years after the date of enactment. 

Section 603(b) makes the clerical amendment of adding the 

title of this section to the table of contents for the Trade Act of 

1974 (19 U.S.C. 2101 et. seq.). 

Senate Amendment 

Section 603 of the Senate amendment is the same section 603 

of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 604. ESTABLISHMENT OF INTERAGENCY CENTER ON TRADE

IMPLEMENTATION, MONITORING, AND ENFORCEMENT

Present Law 

The Office of the United States Trade Representative (USTR) 

is required to submit to Congress an Annual Report on Trade 

Agreements Program and National Trade Policy Agenda, pursuant 

to 19 U.S.C. 2213; a budget justification, pursuant to 31 U.S.C. 

1105; and an agency strategic plan, pursuant to 5 U.S.C. 306. 


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House Amendment 

Section 907 requires that, in its Annual Report on Trade 

Agreements Program and National Trade Policy Agenda to Congress, USTR must submit additional information regarding USTRled interagency programs, including the Interagency Trade Enforcement Center. Specifically, the section requires that USTR report on the objectives and priorities of all USTR-led interagency 

programs; the actions proposed, or anticipated, to be undertaken to 

achieve such objectives and priorities, including actions authorized 

under the trade laws and negotiations with foreign countries; 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; 

USTR’s coordination of each participating Federal agency to more 

effectively achieve such objectives and priorities; any proposed legislation necessary or appropriate to achieve such objectives or priorities; and prior progress made in achieving such objectives and 

priorities and coordination activities. 

The section also requires that USTR submit a report to Congress, in conjunction with the President’s budget, regarding its annual plan to match available agency resources with projected workload and provide a detailed analysis of how the prior year’s funds 

were spent; identify existing and new staff necessary to support the 

functions and powers of USTR; identify USTR and other Federal 

agency staff who will be required to be detailed to support USTRled interagency programs; and provide detailed analysis of the 

budgetary requirements of USTR-led interagency programs. 

In addition, the section requires that USTR submit to Congress 

a quadrennial plan, in conjunction with agency strategic plans already required under statute, with some additional requirements: 

analyzing internal quality controls and record management; identifying existing and new staff necessary to support the functions and 

powers of USTR; identifying existing USTR and other Federal 

agency staff who will be required to be detailed to support USTRled interagency programs; providing an outline of budget justifications, including salaries, expenses, and non-personnel administrative costs, required under the strategic plan; providing an outline 

of budget justifications for USTR-led interagency programs. This 

quadrennial plan is required in conjunction with the agency strategic plan produced at the beginning of every new Presidential Administration; this section requires USTR to submit the initial report separately, on February 1, 2016. 

Senate Amendment 

Section 604 establishes an Interagency Trade Enforcement 

Center (ITEC) in the Office of the United States Trade Representative (USTR), and provides that the main functions of the Center 

are to: 1) serve as the primary forum within the Federal government for the USTR and other agencies to coordinate the enforcement of United States trade rights under international trade agreements and enforcement of United States trade remedy laws; 2) coordinate the exchange of information related to potential violations 

of international trade agreements; and 3) conduct outreach to 

United States workers, businesses, and other interested persons. 


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Section 604 also requires the head of the ITEC to be a Director 

who shall be appointed from among full-time senior-level officials 

of USTR, and a Deputy Directory appointed by the Secretary of 

Commerce from among full-time, senior-level officials of Commerce. 

Other Federal government agencies that the Center coordinates 

with may detail or assign employees to the Center. The provision 

requires that funding and administrative support for the ITEC be 

provided by USTR. The Director of ITEC is required to submit an 

annual report to the Committee on Finance of the Senate and the 

Committee on Ways and Means of the House of Representatives on 

the actions taken by the Center with respect to the enforcement of 

U.S. trade rights under trade agreements in the preceding year. 

Conference Agreement 

The conference agreement establishes the Interagency Center 

on Trade Implementation, Monitoring, and Enforcement (ICTIME) 

in the office of the United States Trade Representative. The function of ICTIME is to support the USTR in: 1) investigating potential disputes to be brought at the World Trade Organization; 2) investigating potential disputes to be brought under U.S. bilateral 

and regional trade agreements; 3) monitoring and enforcement activities pursuant to U.S. trade agreements; and 4) monitoring 

measures taken by parties during implementation of trade agreements with the United States. The director of ICTIME is to be appointed by the USTR, and additional personnel may be detailed or 

assigned to ICTIME by other Federal agencies. The conference 

agreement requires the President to annually report to Congress 

regarding the operations of ICTIME. The conference agreement 

also adopts the House provision requiring USTR to submit to Congress a quadrennial plan concerning quality controls and records 

management, staffing, and budgeting, with the first report due 

June 1, 2016. The commitments subject to ICTIME’s monitoring 

and enforcement shall include those negotiated to address the interests in U.S. trade agreements of domestic manufacturers, services providers, farmers, ranchers, and intellectual property 

rightholders. 

SECTION 605. INCLUSION OF INTEREST IN CERTAIN DISTRIBUTIONS OF

ANTIDUMPING DUTIES AND COUNTERVAILING DUTIES

Present Law 

No provision. 

House Amendment 

Section 913(a) directs CBP to include in all distributions of collected antidumping and countervailing duties any and all interest 

earned on such duties that is, or was, realized through any payments received on or after October 1, 2014 under, or in connection 

with, any customs bond pursuant to a court order or judgment, or 

settlement. 

Section 913(b) describes the distributions in subsection (a) as 

all distributions made on or after enactment pursuant to section 

754 of the Trade Act of 1930 (19 USC 1675c) (as that section was 

in effect on February 7, 2006) of collected antidumping and counVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00199 Fmt 6601 Sfmt 6601 E:\HR\OC\HR376.XXX HR376

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tervailing duties assessed on or after October 1, 2000 on entries 

made through September 30, 2007. 

Senate Amendment 

Section 609 of the Senate amendment is similar to section 913 

of the House amendment. Senate section 609(a) provides that the 

Secretary of Homeland Security shall deposit all interest in subsection 609(c) into the special account established under section 

754(e) of the Tariff Act of 1930 for inclusion in distributions described in subsection 609(b) made on or after the date of the enactment of this Act. 

Section 609(b) defines distributions as those made under section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c) (repealed by 

subtitle F of title VII of the Deficit Reduction Act of 2005 (Public 

Law 109–171; 120 Stat. 154)) with respect to entries of merchandise made on or before September 30, 2007 and that were unliquidated, not in litigation, and not under an order of liquidation on 

December 8, 2010. 

Section 609(c) defines interest as an amount earned on antidumping duties or countervailing duties distributed in subsection 

(b) that is realized through application of a payment received on or 

after October 1, 2014 by CBP or in connection with a customs bond 

pursuant to a court order or a settlement for any such bond. It further provides that the types of interest include interest accrued 

under section 778 or 505(d) of the Trade Act of 1930, or equitable 

interest under common law, or interest under section 963 of the 

Revised Statutes awarded by a court against a surety under its 

bond for late payment of antidumping duties, countervailing duties, 

or other interest. 

Conference Agreement 

The conference agreement follows the Senate amendment with 

a modification. The Conferees agree to describe interest in section 

609(c) as an amount earned on antidumping duties or countervailing duties in subsection (b) that is realized through application 

of a payment received on or after October 1, 2014 by CBP under, 

or in connection with, a customs bond pursuant to a court order or 

judgment, or a settlement with respect to a customs bond, including any payment to CBP with respect to that bond by a surety. 

SECTION 606. ILLICITLY IMPORTED, EXPORTED, OR TRAFFICKED CULTURAL PROPERTY, ARCHAEOLOGICAL OR ETHNOLOGICAL MATERIALS, 

AND FISH, WILDLIFE, AND PLANTS

Present Law 

No provision. 

House Amendment 

No provision. 

Senate Amendment 

Section 610 of the Senate amendment requires the Commissioner and Director of ICE to ensure that appropriate personnel are 

trained in the detection, identification, detention, seizure, and forVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00200 Fmt 6601 Sfmt 6601 E:\HR\OC\HR376.XXX HR376

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feiture of cultural property and archaeological or ethnological materials, and fish, wildlife and plants, the importation, exportation, or 

trafficking of which violates the laws of the United States. 

Conference Agreement 

The conference agreement follows the Senate amendment. 

SECTION 607. ENFORCEMENT UNDER TITLE III OF THE TRADE ACT OF

1974 WITH RESPECT TO CERTAIN ACTS, POLICIES, AND PRACTICES

Present Law 

Section 301 of the Trade Act of 1974 establishes procedures 

and timetables for addressing certain violations of U.S. rights 

under a trade agreement and unreasonable or discriminatory practices that burden or restrict U.S. commerce. 

House Amendment 

No provision. 

Senate Amendment 

Section 606 of the Senate amendment amends section 

301(d)(3)(B) of the Trade Act of 1974 to include, among the conduct 

that is unreasonable for purposes of taking discretionary action 

under 301(b), a persistent pattern of conduct by a foreign country 

that: 1) fails to effectively enforce the environmental laws of the 

foreign country; 2) waives or otherwise derogates from the environmental laws of the foreign country or weakens the protections afforded by such laws; 3) fails to provide for the judicial or administrative proceedings giving access to remedies for violations of the 

environmental laws of the foreign country; 4) fails to provide appropriate and effective sanctions or remedies for violations of the environmental laws of the foreign country; or 5) fails to effectively enforce environmental commitments under agreements to which the 

foreign country and the United States are a part. 

Conference Agreement 

The conference agreement includes modifications to amend section 301(d)(3)(B) of the Trade Act of 1974 to include, among the 

types of conduct that are unreasonable for purposes of taking discretionary action under 301(b), actions that constitute a persistent 

pattern of conduct by the government of the foreign country under 

which that government fails to effectively enforce commitments 

under agreements including with respect to trade in goods, trade 

in services, trade in agriculture, foreign investment, intellectual 

property, digital trade in goods and services and cross-border data 

flows, regulatory practices, state-owned and state-controlled enterprises, localization barriers to trade, labor and the environment, 

anti-corruption, trade remedy laws, textiles, and commercial partnerships to which the foreign country and the United States are a 

party. 

SECTION 608. HONEY TRANSSHIPMENT

Present Law 

No provision. 


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House Amendment 

No provision. 

Senate Amendment 

Section 608(a) requires the Commissioner of CBP to direct appropriate personnel and resources to address concerns that honey 

is being imported into the United States in violation of U.S. customs and trade laws. 

Section 608(b) requires CBP to compile a database of the individual characteristics of foreign honey to facilitate the verification 

of country of origin markings, and to seek to work with foreign governments, industry, and the Food and Drug Administration in compiling the database. 

Section 608(c) requires the Commissioner to submit a report to 

Congress within 180 days after enactment of the Act that describes 

and assesses the limitations in existing analysis capabilities of laboratories with respect to determining the country of origin of honey 

and includes any recommendation of the Commissioner for improving such capabilities. 

Section 608(d) expresses the sense of Congress that the Commissioner of Food and Drugs should promptly establish a honey national identification standard to ensure that honey imports are 

classified appropriately for duty assessment; and are denied entry 

to the United States if such imports pose a threat to the health or 

safety of consumers. 

Conference Agreement 

The conference agreement follows the Senate amendment. The 

agreement of the conference on establishment of a database pertaining to honey transshipment reflects the unique geographical 

characteristics of honey, particularly unique regional pollens, that 

allow CBP to discern the country of origin of honey imported into 

the United States through currently available, cost-effective scientific methods, and also the importation of honey in sufficient 

quantity and with historical patterns of duty evasion to justify establishing and maintaining such a database. 

SECTION 609. ESTABLISHMENT OF CHIEF INNOVATION AND

INTELLECTUAL PROPERTY NEGOTIATOR

Present Law 

Section 141 of the Trade Act of 1974 (19 U.S.C. 2171) establishes the structure, functions, powers, and personnel of the Office 

of the United States Trade Representative (USTR). 

House Amendment 

No provision. 

Senate Amendment 

Section 611(a) amends section 141 of the Trade Act of 1974 (19 

U.S.C. 2171) to establish a Chief Innovation and Intellectual Property Negotiator at USTR with the rank of Ambassador, who shall 

be appointed by the President, by and with the advice and consent 

of the Senate, to conduct trade negotiations and to enforce trade 


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agreements relating to United States intellectual property, and to 

take appropriate actions to address acts, policies, and practices of 

foreign governments that have a significant adverse impact on the 

value of United States innovation. 

Section 611(b) amends section 5314 of title 5, United States 

Code, to set the pay for this position at Level III of the Executive 

Schedule. 

Section 611(c) requires the USTR to submit an annual report 

to the Senate Finance and Ways and Means Committees detailing 

the enforcement actions taken by USTR to ensure the protection of 

United States innovation and intellectual property interests, and 

other actions taken to advance United States innovation and intellectual property interests. 

Conference Agreement 

The conference agreement follows the Senate amendment. 

SECTION 610. MEASURES RELATING TO COUNTRIES THAT DENY

ADEQUATE PROTECTION FOR INTELLECTUAL PROPERTY RIGHTS

Present Law 

Section 182 of the Trade Act of 1974 (19 U.S.C. 2242) requires 

USTR to submit to the Committees a ‘‘Special 301 Report’’ identifying countries that deny adequate protection or market access for 

intellectual property rights. 

House Amendment 

No provision. 

Senate Amendment 

Section 612(a) amends section 182(d)(2) of the Trade Act of 

1974 (19 U.S.C. 2242(d)(2)) to require USTR to identify foreign 

countries that deny adequate and effective protection of trade secrets. 

Section 612(b) amends section 182 of the Trade Act of 1974 (19 

U.S.C. 2242) to require USTR, within 90 days after submitting the 

annual National Trade Estimate, to develop an action plan for foreign countries that have spent at least one year on the Priority 

Watch List of the Special 301 Report. The action plan calls for such 

countries to meet benchmarks designed to assist them to achieve 

effective protection of intellectual property rights, and equitable 

market access for U.S. persons that rely upon intellectual property 

protections. This section also authorizes the President to take appropriate action with respect to foreign countries that fail to meet 

action plan benchmarks and requires USTR to transmit to the 

Committees a report on the action plans and the progress in 

achieving the action plan benchmarks. 

Conference Agreement 

The conference agreement follows the Senate amendment, with 

the addition of allowing USTR to provide assistance to developing 

countries pursuant to Section 611. 


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SECTION 611. TRADE ENFORCEMENT TRUST FUND

Present Law 

No provision. 

House Amendment 

No provision. 

Senate Amendment 

Section 607 of the Senate amendment establishes a Trade Enforcement Trust Fund (Trust Fund) in the Treasury of the United 

States. The provision requires the Treasury to transfer $15 million 

each fiscal year to the Trust Fund of receipts from antidumping 

and countervailing duties, and the aggregate money held in the 

Trust Fund may not exceed $30 million at any time. Transfers to 

the fund are made quarterly. The provision allows the United 

States Trade Representative to use amounts in the Trust Fund to 

enforce the provisions of and commitments and obligations under 

WTO Agreements and free trade agreements to which the United 

States is a party, monitor the implementation by foreign countries 

of the provisions and commitments and obligations under free 

trade agreements, and investigate and respond to petitions under 

section 302 of the Trade Act of 1974. In addition, identified Federal 

agencies would also be authorized to also use amounts in the Trust 

Fund to ensure capacity building efforts undertaken by the United 

States prioritize the implementation of intellectual property, labor, 

and environmental commitments, are self-sustaining and promote 

local ownership, include performance indicators, and monitor and 

evaluate capacity building efforts. 

If a Federal agency uses amounts in the Trust Fund in connection with the entry into force of any free trade agreement, that 

agency must submit a report to Congress on the actions taken by 

that agency not later than 18 months after the agreement enters 

into force. It also requires the Comptroller General to submit a report to Congress within one year of enactment that contains (1) a 

comprehensive analysis of the trade enforcement expenditures of 

each Federal agency and (2) recommendations on the additional 

employees and resources that each Federal agency may need to effectively enforce free trade agreements that the United States is a 

party to. 

Conference Agreement 

The conference agreement follows the Senate amendment with 

a number of changes. The conference agreement establishes the 

Trust Fund through 2026 and funds are transferred from the general fund. It allows the United States Trade Representative, on the 

basis of advice from the Trade Policy Committee, to use amounts 

in the Trust Fund, only as provided in appropriation acts, to enforce obligations under WTO Agreements and free trade agreements to which the United States is a party, monitor the implementation by foreign countries of the provisions and commitments 

and obligations under free trade agreements, investigate and respond to petitions under section 302 of the Trade Act of 1974, and 

to support capacity building efforts, including commitments and obVerDate Sep 11 2014 07:22 Dec 10, 2015 Jkt 097818 PO 00000 Frm 00204 Fmt 6601 Sfmt 6601 E:\HR\OC\HR376.XXX HR376

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ligations related to trade in goods, trade in services, trade in agriculture, foreign investment, intellectual property, digital trade in 

goods and services and cross-border data flows, regulatory practices, state-owned and state-controlled enterprises, localization barriers to trade, labor and the environment, currency, foreign currency manipulation, anticorruption, trade remedy laws, textiles, 

and commercial partnerships. Additional changes are made with 

respect to reporting and definitions. 

The conferees are committed to work diligently and at the earliest opportunity to achieve full appropriation for the fund, including during the annual budget resolution process to assure full appropriations to the fund. 

TITLE VII—CURRENCY MANIPULATION

SECTION 701. ENHANCEMENT OF ENGAGEMENT ON CURRENCY EXCHANGE RATE AND ECONOMIC POLICIES WITH CERTAIN MAJOR

TRADING PARTNERS OF THE UNITED STATES

Present Law 

No provision. 

House Amendment 

This section strengthens and complements existing requirements by requiring the Secretary of the Treasury to submit to Congress a report on the macroeconomic and currency exchange rate 

policies of each country that is a major trading partner of the 

United States and to take specific steps if it finds that a currency 

is undervalued. The report is to include: 1) an analysis of various 

economic indicators for each major trading partner and 2) an enhanced analysis of macroeconomic and exchange rate policies for 

each major trading partner that satisfies certain economic criteria 

related to its bilateral trade balance, current account balance, and 

foreign exchange interventions. The new report thus strengthens 

existing requirements, established in Section 3005 of the Omnibus 

Trade and Competitiveness Act of 1988, regarding reporting by the 

Secretary to Congress of international economic and exchange rate 

policies. The provisions direct the Secretary to conduct enhanced 

bilateral engagement with each country for which an enhanced 

analysis of macroeconomic and currency exchange rate policies is 

included in the report submitted by the Secretary to Congress. The 

Secretary may determine not to enhance bilateral engagement with 

a country if the Secretary determines that commencing enhanced 

bilateral engagement would have an adverse impact on the U.S. 

economy greater than the benefits of such engagement or would 

cause serious harm to the national security of the United States. 

The provision authorizes the President to take certain remedial actions regarding a country that fails to adopt appropriate policies to 

correct the identified undervaluation and surpluses, including: 1) 

restrictions on U.S. government financing; 2) restrictions on U.S. 

government procurement; 3) additional efforts at the International 

Monetary Fund; or (4) by taking into account such currency policies 

before initiating or entering into any bilateral or regional trade 

agreement negotiations. 


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Senate Amendment 

The Senate Amendment is similar to the House Amendment 

but contains certain variations, including variations related to the 

economic criteria associated with an enhanced analysis of a major 

trading partner, variations related to the objectives of enhanced bilateral engagement, and variations related to a decision by the Secretary not to enhance bilateral engagement with a country. 

Conference Agreement 

The conference agreement follows the House amendment with 

modified criteria in section 701(a)(2)(B), an additional item in the 

list of actions in section 701(b)(1) from the Senate amendment, and 

modified reporting requirements. 

SECTION 702. ADVISORY COMMITTEE ON INTERNATIONAL EXCHANGE

RATE POLICY

Present Law 

No provision. 

House Amendment 

This section creates a nine-member advisory committee to advise Treasury on international exchange rates and financial policies 

and their impact on the United States. The Senate, House, and Administration each appoint members to the committee. 

Senate Amendment 

Section 712 of the Senate amendment is the same as section 

702 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

TITLE VIII—ESTABLISHMENT OF U.S. CUSTOMS AND BORDER

PROTECTION

SECTION 801. SHORT TITLE

Present Law 

No provision. 

House Amendment 

Section 801 sets forth the short title as the ‘‘U.S. Customs and 

Border Protection Authorization Act.’’ 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House amendment. 


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SECTION 802. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER

PROTECTION

Present Law 

Section 401 of the Homeland Security Act of 2002 (HSA), at 6 

U.S.C. 201, establishes the now-defunct Directorate for Border and 

Transportation Security headed by an Under Secretary for Border 

and Transportation Security. 

Further, section 411 of the HSA, at 6 U.S.C. 211, established 

the now-defunct United States Customs Services and it’s head, the 

Commissioner of Customs, within the Department of Homeland Security. 

House Amendment 

Section 802(a) amends section 411 of the HSA to formally establish U.S. Customs and Border Protection (CBP) in title 6 of the 

United States Code. Section 802(a) also establishes the Commissioner of U.S. Customs and Border Protection as the head of the 

component, and the position of Deputy Commissioner to assist the 

Commissioner in the management of CBP. 

Additionally, section 802(a) establishes operational offices within CBP. These include: U.S. Border Patrol and its head, the Chief 

of U.S. Border Patrol; Office of Air and Marine Operations and its 

head, the Assistant Commissioner for the Office of Air and Marine 

Operations; the Office of Field Operations and its head, the Assistant Commissioner for the Office of Field Operations; the Office of 

Intelligence and its head, the Assistant Commissioner for the Office 

of Intelligence; the Office of International Affairs and its head, the 

Assistant Commissioner for the Office of International Affairs; and 

the Office of Internal Affairs and its head, the Assistant Commissioner for the Office of Internal Affairs. 

Finally, section 802(a) establishes certain Standard Operating 

Procedures, audits, and reports to be carried out and completed, 

mandates training for CBP officers and agents, establishes short 

term detention standards, and grants the Secretary additional authorities to establish additional offices and Assistant Commissioners to carry out the functions of CBP. 

Section 802(b) affirms that CBP shall continue to carry out the 

functions, missions, duties, and authorities that were vested in 

them prior to the passage of this act. Further, this subsection 

makes clear that rules, regulations, and policies issued by CBP 

pursuant to section 411 of the Homeland Security Act prior to the 

passage of this act shall remain in place. 

Section 802(c) clarifies that the Commissioner of CBP, as well 

as Assistant Commissioners and other CBP officials, may continue 

to serve in their roles after passage of this act. 

Section 802(d) amends 5 U.S.C. 5314 to include the Commissioner of CBP in place of the outdated ‘‘Commissioner of Customs’’’ 

position in the Level III Executive Pay Schedule. 

Section 802(e) amends the table of contents in the Homeland 

Security Act of 2002 to reflect the changes made by this act. 

Section 802(f) repeals provisions in the HSA that are no longer 

necessary or have already been fulfilled. These include: Sec. 416, 

which mandated a Government Accountability Office report that 


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was completed in 2003; and section 418, which required a report 

from the Secretary of the Treasury that was completed in 2003. 

Section 802(g) amends sections of the HSA to accurately reflect 

current titles and functions. In addition, 802(g) amends the HSA 

to maintain the Transportation Security Administration as a distinct entity within the Department of Homeland Security and 

grants the Secretary of Homeland Security the authority to discipline any employee of CBP or ICE who willfully deceives Congress or DHS leadership. 

Section 802(h) amends the Act of March 3, 1927, at 19 U.S.C. 

2071, et seq., to establish the Office of Trade within CBP, and its 

head, the Assistant Commissioner for the Office of Trade. Section 

802(h) also provides for the transfer of assets, functions, and personnel from the Office of International Trade to the Office of Trade 

within CBP. 

Section 802(i) requires the Commissioner of CBP to issue a report on CBP’s Business Transformation Initiative, and a report on 

personal searches conducted by CBP personnel. 802(i) also requires 

the Commissioner of CBP to conduct a Port of Entry Infrastructure 

Needs Assessment. 

Section 802(j) prohibits the Secretary of Homeland Security 

from entering into or renewing an agreement with a foreign government for a Trusted Traveler Program administered by CBP unless the Secretary certifies that the foreign government routinely 

submits information to INTERPOL’s Stolen and Lost Travel Document (SLTD) database or otherwise makes such information available to the United States. 

Section 802(k) provides a sense of Congress supporting CBP’s 

Foreign Language Award Program (FLAP). 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House amendment with 

modifications. 

The Conferees agree to modify section 802(a) to specify that 

the Senate Committee on Finance will consider nominations of individuals to fill the position of the Commissioner of U.S. Customs 

and Border Protection. This modification will ensure that the Senate Committee on Finance will maintain its sole jurisdiction over 

the confirmation of the Commissioner of U.S. Customs and Border 

Protection. In addition, the duties of the Commissioner are expanded to require the Commissioner to: 1) coordinate and integrate 

the security, trade facilitation, and trade enforcement functions of 

U.S. Customs and Border Protection; 2) direct and administer the 

commercial operations of U.S. Customs and Border Protection, and 

the enforcement of the customs and trade laws of the United 

States; 3) ensure the overall economic security of the United States 

is not diminished by efforts, activities, and programs aimed at securing the homeland; and 4) ensure that the policies and regulations of U.S. Customs and Border Protection are consistent with 

the obligations of the United States pursuant to international 

agreements. 


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The Conferees also agree to modify section 802(a) to specify 

that the head of Air and Marine Operations and the Office of Field 

Operations will be headed by an Executive Assistant Commissioner. In addition, U.S. Border Patrol shall be headed by a Chief 

who shall be at the level of an Executive Assistant Commissioner. 

With respect to the Office of International Affairs in section 

802(a), the Conferees agree to expand the duties of the office to require that it shall: 1) coordinate with customs authorities of foreign 

countries with respect to trade facilitation and trade enforcement; 

2) advise the Commissioner with respect to matters arising in the 

World Customs Organization and other international organizations 

as such matters relate to the policies and procedures of U.S. Customs and Border Protection; and 3) advise the Commissioner regarding international agreements to which the United States is a 

party as such agreements relate to the policies and regulations of 

U.S. Customs and Border Protection. 

Furthermore, the Conferees also agree to the following changes 

to section 802(a): 1) Air and Marine Operations will coordinate 

with other appropriate agencies in detecting, identifying, and coordinating a response to threats to national security in the air domain; 2) the Executive Assistant Commissioner for the Office of 

Field Operations shall coordinate with the Executive Assistant 

Commissioner for the Office of Trade with respect to the trade facilitation and trade enforcement activities of CBP; 3) the national 

targeting center shall coordinate with the TSA, as appropriate; 4) 

the annual report on staffing for the Office of Field Operations may 

be submitted in classified form if the Executive Assistant Commissioner of the Office of Field Operations determines it to be appropriate and informs the appropriate Congressional committees of the 

reasoning for such; 5) the Office of Intelligence shall manage the 

counter-intelligence operations of CBP; 6) the Office of Internal Affairs is renamed the Office of Professional Responsibility; 7) subsection (k) of section 411 of the Homeland Security Act is modified 

to state that the Commissioner’s right to withhold required notifications due to national security, law enforcement, or other operational interests is unreviewable; and 8) the Commissioner is required to continue to submit to the appropriate committees any reports that were required to be submitted prior to the passage of 

this Act. 

Section 802(c) is modified to clarify that the individuals serving 

as Assistant Commissioners may continue to serve as Executive 

Assistant Commissioners, as appropriate. 

Section 802(h) is modified to specify that the head of the Office 

of Trade shall be an Executive Assistant Commissioner. In addition, the provisions specifying the pay and qualifications for the Executive Assistant Commissioner of the Office of Trade are stricken. 

The Conferees have also agreed to allow the transfer of assets, 

functions, personnel, or liabilities of the Office of International 

Trade to offices other than the Office of Trade if the appropriate 

committees are notified with the reason for such a transfer at least 

90 days prior to such transfer. Furthermore, section 802(h) is modified to clarify that the individual serving as the Assistant Commissioner may continue to serve as the Executive Assistant Commissioner. 


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Lastly, the Conferees agree to require CBP to develop a plan 

to establish an agricultural specialist career track within CBP. 

This agreement is codified under section 802(k). 

Subtitle B—Preclearance Operations 

SECTION 811. SHORT TITLE

Present Law 

No provision. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement sets forth the short title as the 

‘‘Preclearance Authorization Act of 2015.’’ 

SECTION 812. DEFINITION

Present Law 

No provision. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement defines key terms. 

SECTION 813. ESTABLISHMENT OF PRECLEARANCE OPERATIONS

Present Law 

Current law (19 U.S.C. 1629 and 8 U.S.C. 1103(a)(7)) provides 

the necessary legal authority for CBP to conduct customs and immigration functions (e.g., inspections, seizures, searches, etc.) in 

foreign counties. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement authorizes CBP to operate 

preclearance locations, provided an aviation security preclearance 

agreement is in effect, in foreign countries: 1) to prevent terrorists, 

instruments of terrorism, and other security threats from entering 

the United States; 2) to prevent inadmissible persons from entering 


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the United States; 3) to ensure that merchandise destined for the 

United States complies with applicable laws; 4) to ensure the 

prompt processing of persons eligible to travel to the United States; 

and 5) to accomplish such other objectives as the Secretary determines are necessary to protect the United States. 

SECTION 814. NOTIFICATION AND CERTIFICATION TO CONGRESS

Present Law 

No provision. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement requires DHS to provide certain notifications and certifications to appropriate congressional committees. 

Section 814(a) requires the Secretary to provide to the appropriate congressional committees not later than 60 days prior to entering into a preclearance agreement with a foreign country the following: 1) a copy of the proposed agreement to establish such 

preclearance operations, which shall include the identification of 

the foreign country with which CBP intends to enter into a 

preclearance agreement, the location at which such preclearance 

operations will be conducted, and the terms and conditions for CBP 

personnel operating at the location; 2) an assessment of the impact 

such preclearance operations will have on legitimate trade and 

travel, including potential impacts on passengers traveling to the 

United States; 3) an assessment of the impacts such preclearance 

operations will have on CBP domestic port of entry staffing; 4) 

country-specific information on the anticipated homeland security 

benefits associated with establishing such preclearance operations; 

5) information on potential security vulnerabilities associated with 

commencing such preclearance operations and mitigation plans to 

address such potential security vulnerabilities; 6) a CBP staffing 

model for such preclearance operations and plans for how such positions would be filled; 7) information on the anticipated costs over 

the next five fiscal years associated with commencing such 

preclearance operations; and 

Section 814(b) requires the Secretary to provide to the appropriate congressional committees not later than 45 days before entering into a preclearance agreement with a foreign country for 

preclearance operations at an airport, in addition to the information required in section 814(a), the following: 1) an estimate of the 

date on which CBP intends to establish preclearance operations 

under such agreement, including any pending caveats that must be 

resolved before preclearance operations are approved; 2) the anticipated funding sources for preclearance operations under such 

agreement, and other funding sources considered; 3) a homeland 

security threat assessment for the country in which such 


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preclearance operations are to be established; 4) information on potential economic, competitive, and job impacts on United States air 

carriers associated with establishing such preclearance operations; 

5) details on information sharing mechanisms to ensure that CBP 

has current information to prevent terrorist and criminal travel; 

and 6) other factors that the Secretary determines to be necessary 

for Congress to comprehensively assess the appropriateness of commencing such preclearance operations. 

Section 814(c) requires the Secretary to provide to the appropriate congressional committees not later than 60 days before entering into a preclearance agreement with a foreign country for 

preclearance operations at an airport, in addition to the information required in sections 814(a) and 814(b), the following: 1) a certification that preclearance operations under such preclearance 

agreement, after considering alternative options, would provide 

homeland security benefits to the United States through the most 

effective means possible; 2) a certification that preclearance operations within such foreign country will be established under such 

agreement only if at least one United States passenger carrier operates at such airport and the access of all United States passenger 

carriers to such preclearance operations is the same as the access 

of any non-United States passenger carrier; 3) a certification that 

the establishment of preclearance operations in such foreign country will not significantly increase customs processing times at 

United States airports; 4) a certification that representatives from 

CBP consulted with stakeholders, including providers of commercial air service in the United States, employees of such providers, 

security experts, and such other parties as the Secretary determines to be appropriate; and 5) a report detailing the basis for the 

certifications referred to in 1) through 4). 

Section 814(d) requires the Secretary to provide to the appropriate congressional committees not later than 30 days before entering into a substantially amended preclearance agreement with 

a foreign country a copy of the proposed agreement, as modified, 

and the justification for such modification. 

Section 814(e) requires the Commissioner to report to the appropriate congressional committees on a quarterly basis the number of CBP officers, by port, assigned from domestic ports of entry 

to preclearance operations and the number of these positions that 

have been filled by another hired, trained, and equipped CBP officer. In addition, if the CBP officer positions at domestic ports of 

entry that were reassigned to preclearance ports of entry have not 

been backfilled and the Commissioner determines that processing 

times at those domestic ports of entry have significantly increased, 

the Commissioner shall submit to the appropriate congressional 

committees not later than 60 days after such a determination an 

implementation plan for reducing CBP processing times at those 

domestic ports of entry. If the Commissioner fails to submit the required implementation plan, the Secretary would be prohibited 

from establishing additional preclearance locations until such plan 

is submitted. 

Section 814(f) allows for the reporting requirement under subsection (c)(5) to be submitted in classified form. 


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SECTION 815. PROTOCOLS

Present Law 

Current law (49 U.S.C. 44901(d)(4)) requires that for flights 

traveling to the U.S., checked baggage has been screened in accordance to an aviation security preclearance agreement between the 

U.S. and the country of departure. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement requires the TSA to rescreen passengers and their baggage arriving from a foreign country if the 

Administrator of TSA determines that the foreign government has 

not maintained security standards and protocols comparable to 

those at U.S. airports at the airports at which preclearance operations have been established. 

SECTION 816. LOST AND STOLEN PASSPORTS

Present Law 

No provision. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement prohibits the establishment or renewal of a preclearance location with a foreign country unless the 

Secretary certifies to Congress that the foreign country routinely 

provides stolen passport information to INTERPOL’s Stolen and 

Lost Travel Document database or provides the information to the 

United States through comparable reporting. 

SECTION 817. RECOVERY OF INITIAL U.S. CUSTOMS AND BORDER

PROTECTION PRECLEARANCE OPERATIONS COSTS

Present Law 

Current law, including 8 U.S.C. 1356(i) and 7 U.S.C. 8311(b), 

provides the necessary legal authority for CBP to be reimbursed for 

immigration and agriculture inspection services, and other 

preclearance costs. 

Current law, however, does not allow CBP to receive payments 

prior to services being rendered. 

House Amendment 

No provision. 


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Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement allows CBP to enter into a cost 

sharing agreement with airport authorities in foreign countries for 

new preclearance locations or to maintain existing operations. The 

cost sharing agreement may provide for initial preclearance operations costs. These payments may be made in advance of the incurrence of the costs or on a reimbursable basis. 

Initial preclearance operations costs include: 1) hiring, training, and equipping new CBP officers who will be stationed at U.S. 

ports of entry or other CBP facilities to backfill CBP officers to be 

stationed at a preclearance facility (payments would be prohibited 

once such officers are permanently stationed domestically after 

being trained) and 2) visits to the airport authority conducted by 

CBP personnel necessary to prepare for the establishment or maintenance of preclearance operations at such airport, including the 

compensation, travel expenses, and allowances payable to such 

CBP personnel attributable to such visits. 

SECTION 818. COLLECTION AND DISPOSITION OF FUNDS COLLECTED

FOR IMMIGRATION INSPECTION SERVICES AND PRECLEARANCE ACTIVITIES

Present Law 

Current law (8 U.S.C. 1356(i) and 7 U.S.C. 8311(b)) allows the 

reimbursement of funds for immigration and agricultural inspection services. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement allows CBP to be reimbursed in advance of providing immigration and agricultural inspection services 

for preclearance operations. 

SECTION 819. APPLICATION TO NEW AND EXISTING PRECLEARANCE

OPERATIONS

Present Law 

No provision. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 


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Conference Agreement 

The conference agreement establishes that, with the exception 

of sections 4(d), 5, 7, and 8 of this subtitle, this subtitle shall apply 

only to the establishment of preclearance operations in a foreign 

country in which no preclearance operations have been established 

as of the date of the enactment of the Trade Facilitation and Trade 

Enforcement Act of 2015. 

TITLE IX—MISCELLANEOUS PROVISIONS

SECTION 901. DE MINIMIS VALUE

Present Law 

Section 321(a)(2)(C) of the Tariff Act of 1930 provides that indi- viduals may import up to $200 in merchandise free of duties into 

the United States. 

House Amendment 

Section 901 raises the duty-free or de minimis threshold from 

$200 to $800. 

Senate Amendment 

Section 901 sets out findings of Congress and a sense of Congress regarding thresholds for the value of articles that may be entered informally and free of duty into the United States and that 

the Unites States Trade Representative should encourage foreign 

countries to establish commercially meaningful de minimis thresholds. 

Section 901 amends section 321(a)(2)(C) of the Tariff Act of 

1930 to raise the de minimis threshold for the Secretary of Treas- ury to permit the admission of articles duty free from $200 to $800. 

Conference Agreement 

The conference agreement follows the Senate amendment. 

SECTION 902. CONSULTATION ON TRADE AND CUSTOMS REVENUE

FUNCTIONS

Present Law 

Section 401(c) of the Safety and Accountability for Every Port 

Act (SAFE Port) requires the Secretary of Homeland Security to 

consult with the business community involved in international 

trade, including the COAC, on Department policies that have a significant impact on international trade and customs revenue functions. Furthermore, section 401(c) requires that the Secretary notify the appropriate congressional committees at least 30 days before finalizing policies or actions that will have a major impact on 

international trade and customs revenue functions, except if it is 

determined that it is in the interest of national security to finalize 

policies or actions prior to consultations with the business community and appropriate congressional committees. 

House Amendment 

Section 902 amends section 401(c) of the SAFE Port Act by requiring the Secretary of Homeland Security to consult with the 


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business community involved in international trade at least 30 

days before proposing and at least 30 days before finalizing any Department policies or actions that will have an impact on international trade and customs revenue functions. The amendment 

also extends the notice for appropriate congressional committees by 

requiring the Secretary of Homeland Security to provide at least 60 

days notification before proposing and at least 60 days before finalizing Department policies or actions that have an impact on international trade. 

Senate Amendment 

Section 902 of the Senate amendment is the same as section 

902 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 903. PENALTIES FOR CUSTOMS BROKERS

Present Law 

Section 641(d)(1) of the Tariff Act of 1930 authorizes the Secretary of the Treasury to impose a monetary penalty or revoke or 

suspend a license or permit of any customs broker if the broker has 

acted contrary to law or regulations. 

House Amendment 

Section 903 amends section 641(d)(1) of the Tariff Act of 1930 

by adding to the list of offenses as grounds for a monetary penalty 

or removal of a broker license committing or conspiring to commit 

an act of terrorism. 

Senate Amendment 

Section 903 of the Senate amendment is the same as section 

903 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 904. AMENDMENTS TO CHAPTER 98 OF THE HARMONIZED

TARIFF SCHEDULE OF THE UNITED STATES

Present Law 

U.S. Note 3 to subchapter II of Chapter 98 of the Harmonized 

Tariff Schedule of the United States (HTS) allows a partial or complete duty exemption for articles returned to the United States, 

after having been exported to be advanced in value or improved in 

condition by means of repairs or alterations. It also allows goods 

to be entered duty free if the goods are a product of the United 

States when returned after having been exported, without having 

been advanced in value or improved in condition by any process of 

manufacture or other means while abroad. 

The article description for heading 9801.00.10 of the HTS establishes that products of the United States, when returned after 


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having been exported without having been advanced in value or 

improved in condition by any process of manufacture or other 

means abroad, will be duty-free. 

House Amendment 

Section 904(a) amends U.S. Note 3 to subchapter II of Chapter 

98 of the HTS by modernizing existing inventory management 

rules by subtracting the value of U.S. components assembled into 

the final product that will be entered into the commerce of the 

United States for articles exported and returned after being improved abroad. 

Section 904(b) amends the article description for heading 

9801.00.10 of the HTS by reducing record-keeping burdens on 

goods returned to the United States without improvement abroad 

so that duties are not assessed twice. 

Section 904(c) amends subchapter I of chapter 98 of the HTS 

by inserting new heading 9801.00.11, which provides duty-free 

treatment for certain U.S. government property returned to the 

United States. 

Senate Amendment 

Section 904 of the Senate amendment is the same as section 

904 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 905. EXEMPTION FROM DUTY OF RESIDUE OF BULK CARGO

CONTAINED IN INSTRUMENTS OF INTERNATIONAL TRAFFIC PREVIOUSLY EXPORTED FROM THE UNITED STATES

Present Law 

No provision. 

House Amendment 

Section 905 amends General Note 3(e) of the Harmonized Tariff Schedule of the United States (HTS) to remove from formal 

entry requirements residue of bulk cargo contained in instruments 

of international traffic (IIT) previously exported from the United 

States. 

Senate Amendment 

Section 905 of the Senate amendment is the same as section 

905 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment. 

SECTION 906. DRAWBACK AND REFUNDS

Present Law 

Section 313 of the Tariff Act of 1930 authorizes a refund, 

known as drawback, of certain duties, internal revenue taxes, and 


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certain fees collected upon the importation of goods. Such refunds 

are allowed only upon the exportation or destruction of goods under 

CBP supervision. 

House Amendment 

Section 906(a) amends section 313(a) of the Tariff Act of 1930 

by establishing that the amount of drawback claimed must be calculated pursuant to section 313(l) of the Tariff Act of 1930, as 

amended by this amendment. 

Section 906(b) amends section 313(b) of the Tariff Act of 1930 

by allowing substitution drawback for imported merchandise or 

merchandise classifiable under the same 8-digit HTS used in the 

manufacture or production of articles; establishing that the amount 

of drawback claimed must be calculated pursuant to section 313(l) 

of the Tariff Act of 1930, as amended by this amendment; and providing that such claim must be filed within 5 years of the importation of the merchandise. This subsection further allows records 

kept in the normal course of business to be used to demonstrate 

the transfer of merchandise, requires a drawback claimant to submit a bill of materials to demonstrate the merchandise was incorporated into an exported article, and provides a special rule for 

sought chemical elements. 

Section 906(c) amends section 313(c) of the Tariff Act of 1930 

by extending the filing deadline for drawback claims for merchandise not conforming to sample or specifications to 5 years from the 

date of importation. This subsection further establishes that the 

amount of drawback claimed must be calculated pursuant to section 313(l) of the Tariff Act of 1930, as amended by this amendment, and allows records kept in the normal course of business to 

be used to demonstrate the transfer of merchandise. 

Section 906(d) amends section 313(i) of the Tariff Act of 1930 

by striking the current text and replacing it with a new provision 

requiring that a person claiming drawback based on exportation 

shall provide proof of the exportation of the article, that such proof 

shall fully establish the date and fact of exportation and identity 

of the exporter, and may be established either by records kept in 

the normal course of business or through an electronic export system of the United States Government. 

Section 906(e) amends section 313(j) of the Tariff Act of 1930 

by allowing unused drawback claims for merchandise classifiable 

under the same 8-digit HTS subheading number as such imported 

merchandise. Merchandise may not be substituted for imported 

merchandise for drawback purposes based on the 8-digit HTS if the 

article description for the 8-digit HTS begins with the term ‘‘other.’’ 

In these instances, merchandise may be substituted for imported 

merchandise if such imported merchandise is classifiable under the 

same 10-digit HTS. If the 10-digit HTS begins with the term 

‘‘other,’’ then substitution drawback is not permissible and the 

drawback claimant must use direct identification under section 

313(a) of the Tariff Act of 1930, as amended by this Act. For unused merchandise that is either exported or destroyed, the Department of Commerce Schedule B number may be used to demonstrate that an article and merchandise are classifiable under the 

same 8-digit HTS without regard to whether or not the Schedule 


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B number corresponds to more than one 8-digit HTS number. Furthermore, this subsection amends the filing deadline for drawback 

claims to be 5 years from the date of importation and establishes 

that the amount of drawback claimed must be calculated pursuant 

to section 313(l) of the Tariff Act of 1930, as amended by this 

amendment. 

Section 906(f) amends section 313(k) of the Tariff Act of 1930 

by providing that any person making a drawback claim is liable for 

the full amount of the drawback claimed. Any person claiming 

drawback shall be jointly and severally liable with the importer for 

the lesser of the amount of drawback claimed or the amount the 

importer authorized the other person to claim. 

Section 906(g) amends section 313(l) of the Tariff Act of 1930 

to require the Secretary of the Treasury to prescribe regulations for 

claims with respect to unused merchandise drawback to establish 

that the calculation of drawback that cannot exceed 99 percent of 

the lesser of the amount of duties, taxes, and fees paid with respect 

to the imported merchandise or the amount of duties, taxes, and 

fees that would apply to the exported article if the exported article 

were imported. Section 906(g) also requires the Secretary of Treasury to prescribe regulations for claims with respect to manufactured articles into which substitute merchandise is incorporated to 

establish that the calculation of drawback cannot exceed 99 percent 

of the lesser of the amount of duties, taxes, and fees paid with respect to the imported merchandise or the amount of duties, taxes, 

and fees that would apply to the substituted merchandise if the 

substituted merchandise were imported. This section requires the 

promulgation of the necessary regulations within 2 years. Additionally, one year after the enactment of this Act, and annually thereafter until the regulations required under this subsection are promulgated, the Secretary shall submit to Congress a report on the 

status of the regulations. 

Section 906(h) amends section 313(p) of the Tariff Act of 1930 

to require evidence of transfer to be demonstrated with records 

kept in the normal course of business. 

Section 906(i) amends section 313(q) of the Tariff Act of 1930 

to require the amount of drawback shall be calculated pursuant to 

section 313(l) of the Tariff Act of 1930, as amended by this amendment. 

Section 906(j) amends section 313(r) of the Tariff Act of 1930 

to establish that a drawback entry shall be filed or applied for, as 

applicable, no later than 5 years after the date on which merchandise on which drawback is claimed was imported. This section also 

requires that all drawback claims be filed electronically no later 

than 2 years after the date of the enactment of this Act. 

Section 906(k) amends section 313(s) of the Tariff Act of 1930 

by allowing a drawback successor to designate unused 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 as the basis for drawback on 


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merchandise possessed by the drawback successor after the date of 

succession. 

Section 906(l) strikes section 313(t) of the Tariff Act of 1930. 

Section 906(m) amends section 313(x) of the Tariff Act of 1930 

by requiring the amount of drawback claimed pursuant to section 

313(l) of the Tariff Act of 1930, as amended by this amendment, 

to be reduced by the value of any materials reclaimed during the 

destruction of unused merchandise. 

Section 906(n) defines key terms. 

Section 906(o) amends section 508(c)(3) of the Tariff Act of 

1930 by requiring records for drawback claims to be maintained for 

5 years after the date of liquidation. 

Section 906(p) requires the Government Accountability Office 

(GAO) to provide the Senate Committee on Finance and the House 

Committee on Ways and Means with a report that shall include: 

1) an assessment of the modernization of drawback and refunds; 2) 

a description of drawback claims that were permissible before the 

enactment of the bill that are not permissible after, and an identification of industries most affected; and 3) a description of drawback claims that were not permissible before the enactment of this 

bill that are after, and an identification of industries most affected. 

Section 906(q) provides that the amendments made by this section shall take effect upon enactment of this bill and apply to drawback claims filed on or after the date that is 2 years after such enactment. This section also requires the Secretary of the Treasury 

to submit a report to Congress, no later than two years after enactment of this bill, on the date on which the Automated Commercial 

Environment (ACE) will be ready to process claims and the date 

on which the Automated Export System (AES) will be ready to accept proof of exportation. Lastly, this section provides for a oneyear transition for filing drawback claims under section 313 as 

amended by this section, or under section 313 in effect before the 

enactment of this bill. 

Senate Amendment 

Section 906 of the Senate amendment is the same as section 

906 of the House amendment with exception the following: (1) the 

Senate amendment permits the substitution of a manufactured article that is exported or destroyed with an article that is classifiable under the same 8-digit HTS subheading; (2) the House amendment requires CBP to promulgate separate regulations for calculating drawback for unused merchandise and drawback for articles 

into which substitute merchandise is incorporated; and (3) the Senate amendment permits a delay in the effective date of this section 

if the Automated Commercial Environment (ACE) is not ready to 

process drawback claims within two years after the enactment of 

this Act. 

Conference Agreement 

The conference agreement follows the House amendment with 

technical revisions. The Conferees agree that section 906(g) grants 

CBP the authority, in prescribing regulations for determining the 

calculation of amounts refunded as drawback, to permit the drawback claim to be based upon the average per unit duties, taxes, and 


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fees as reported on the summary line item. This authority is granted to CBP solely to allow for the simplification of drawback claims. 

It is not granted to allow claimants to manipulate claims in order 

to maximize refunds to the detriment of the revenue of the United 

States. The Conferees grant this authority with the expectation 

that CBP and the Department of the Treasury will study the potential impact of such line item averaging in drafting regulations 

and will forego such averaging if it is determined that line item 

averaging will result in a significant loss to the revenue of the 

United States. 

The Conferees further clarify that the existing treatment of 

wine under section 313(j)(2) of the Tariff Act of 1930 is preserved, 

and that the amendments to the statute do not change this treatment. Such preservation, however, does not preclude the filing of 

drawback claims for wine under the new substitution drawback 

procedures, subject to the restrictions in such procedures, such as 

the amount of drawback that may be refunded when such procedures are used. 

With respect to claims for unused merchandise under section 

906(g) (adding section 313(l)(2)(B) of the Tariff Act of 1930), the 

Conferees intend that if the exported article was not imported, 

CBP will determine the amount of duties, taxes, and fees applicable to the exported article by applying the rate of duties, taxes, and 

fees applicable to the imported merchandise by substituting the 

value of the imported merchandise for the value of the exported article. For claims with respect to manufactured articles into which 

imported or substitute merchandise is incorporated under section 

906(g) (adding section 313(l)(2)(C) of the Tariff Act of 1930), the 

Conferees intend that if the manufactured exported article contains 

substitute merchandise that was not imported, CBP will determine 

the amount of duties, taxes, and fees applicable to the imported 

merchandise by substituting the value of the imported merchandise 

for the value of the substitute merchandise incorporated into the 

exported article. The goal of the rules established in section 906(g) 

(adding sections 313(l)(2)(B) and 313(l)(2)(C) of the Tariff Act of 

1930) is to prevent the refund of full duties, taxes, and fees on the 

importation of higher value goods upon the exportation of lower 

value goods. The Conferees do not intend a scenario in which the 

drawback claimant would not receive a refund upon the application 

of either rule, but rather intend to limit the refund to the lesser 

of the import and the export. 

Lastly, the Conferees agree that section 906(o), amending section 508(c)(3) of the Tariff Act of 1930, shall require records for 

drawback claims to be maintained for three years after the date of 

liquidation. 

SECTION 907. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER

PROTECTION AGREEMENTS

Present Law 

Section 560 of the Department of Homeland Security Appropriations Act of 2013 authorizes CBP to enter into certain reimbursable fee agreements for the provision of CBP services. 


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Section 559 of the Department of Homeland Security Appropriations Act of 2014 establishes a pilot program authorizing CBP 

to enter into partnerships with private sector and government entities at ports of entry. 

House Amendment 

Section 911 requires the Commissioner to submit to Congress 

a detailed annual report on each reimbursable agreement and public-private partnership agreement into which CBP enters. Each report must include: 1) a description of the development of the program; 2) a description of the type of entity with which CBP entered 

into the agreement and the amount that entity reimbursed CBP 

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 CBP 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 CBP during that year regarding the agreement; 8) an assessment of the compliance with the terms of the 

agreement of the entity that entered into an agreement with CBP; 

9) recommendations with respect to how activities conducted pursuant to the agreement could function more effectively or better 

produce economic benefits; and 10) a summary of the benefits to 

and challenges faced by CBP and the entity that entered into an 

agreement with CBP. 

Senate Amendment 

Section 909 of the Senate amendment is the same as section 

911 of the House amendment except with respect to the recipients 

of the report required in this section. 

Conference Agreement 

The conference agreement follows the Senate amendment and 

House amendment with modifications. For agreements with an airport operator, the Conferees agree to require CBP to include in the 

annual report a detailed account of revenues collected by CBP to 

cover its operating costs at that airport from fees collected under 

the agreement and fees collected from other sources, including fees 

paid by passengers and aircraft operators. Further, subsection (a) 

is modified to require CBP to identify the authority under which 

a program operates and to require the reporting of the total operating expenses of a program, and subsection (b) is modified to cover 

the program under which CBP collects a fee for the use of customs 

services at designated facilities under 19 U.S.C. 58b. The conference agreement also incorporates reporting related to the 

preclearance program established by subtitle B of title VIII. 


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SECTION 908. CHARTER FLIGHTS

Present Law 

Section 13031(e)(1) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(e)(1)) requires CBP to provide 

customs services to passengers upon arrival in the United States 

in connection with scheduled airline flights. 

House Amendment 

No provision. 

Senate Amendment 

Section 910 of the Senate amendment amends current law to 

permit CBP employees to provide customs services for passengers 

and baggage on charter flights that arrive at U.S. ports of entry 

after normal operating hours, if the air carrier specifically requests 

the services at least four hours before the flight arrives and pays 

any overtime fees. 

Conference Agreement 

The conference agreement follows the Senate amendment. 

SECTION 909. UNITED STATES-ISRAEL TRADE AND COMMERCIAL

ENHANCEMENT

Present Law 

No provision. 

House Amendment 

This section sets out U.S. policy identifying the importance of 

the bilateral U.S.-Israel trade relationship and establishes principal trade negotiating objectives, statements of policy, findings, 

and other provisions related to trade and commercial activities affecting the United States and Israel. This section: 1) states that 

among the U.S. principal trade negotiating objectives for proposed 

trade agreements with foreign countries is the discouragement of 

politically motivated actions to boycott, divest from, or sanction 

Israel (i.e., BDS actions); 2) sets forth various statements of policy 

regarding trade with and commercial activities affecting Israel, including Congress’s opposition to politically motivated BDS actions 

against Israel; 3) presents various positive findings regarding the 

trade and commercial relationship between the United States and 

Israel; 4) requires the President to report annually to Congress on 

politically motivated BDS actions against Israel; and 5) requires 

that no U.S. court recognize or enforce any judgment by a foreign 

court against a U.S. person doing business in Israel, or any territory controlled by Israel, if the U.S. court determines that the foreign judgment is based, in whole or in part, on a determination by 

a foreign court that the U.S. person’s mere conduct of business operations therein or with Israeli entities constitutes a violation of 

law. 


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Senate Amendment 

The Senate amendment contains the statements of policy contained in the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment with 

the exception of section 908(b)(8) of the House amendment regarding certain activities by U.S. states, which is excluded from the 

conference agreement. 

SECTION 910. ELIMINATION OF CONSUMPTIVE DEMAND EXCEPTION TO

PROHIBITION ON IMPORTATION OF GOODS MADE WITH CONVICT

LABOR, FORCED LABOR, OR INDENTURED LABOR; REPORT

Present Law 

Section 307 of the Tariff Act of 1930 prohibits the importation 

of foreign-made goods that were manufactured or produced by convict, forced, or indentured labor, except in such quantities as necessary to meet the consumptive demands of the United States. 

House Amendment 

Section 909 eliminates the ‘‘consumptive demand’’ exception to 

the prohibition on importing goods made by convict, forced, or indentured labor, and requires the Commissioner to provide an annual report to Congress that includes: 1) the number of instances 

in which merchandise was denied entry pursuant to this section 

during the preceding 1-year period; 2) a description of the merchandise denied entry pursuant to this section; and 3) such other information the Commissioner considers appropriate with respect to 

monitoring and enforcing compliance with this section. 

Senate Amendment 

Section 912 of the Senate amendment is the same as section 

909 of the House amendment. 

Conference Agreement 

The conference agreement follows the House and Senate 

amendment. 

SECTION 911. VOLUNTARY RELIQUIDATIONS

Present Law 

19 U.S.C. 1501 establishes that the Customs Service may reliquidate an entry, notwithstanding the filing of a protest, within 90 

days from the date on which notice of the original liquidation is 

given or transmitted to the importer, the importer’s consignee, or 

the importer’s agent. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 


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Conference Agreement 

The Conferees agree to amend 19 U.S.C. 1501 to establish that 

CBP may reliquidate an entry, notwithstanding the filing of a protest, within 90 days from the date of the original liquidation. 

SECTION 912. TARIFF CLASSIFICATION OF RECREATIONAL

PERFORMANCE OUTERWEAR

Present Law 

No provision. 

House Amendment 

Section 914 of the House amendment requires the U.S. International Trade Commission to submit to the Senate Committee on 

Finance and House Ways and Means Committee a report regarding 

the competitiveness of the U.S. recreational performance outerwear 

industry no later than June 1, 2016. 

Senate Amendment 

No provision. 

Conference Agreement 

This section includes technical corrections with respect to HTS 

subheadings for recreational performance outerwear created in 

Pub. L. 114–27. 

SECTION 913. MODIFICATIONS OF DUTY TREATMENT OF PROTECTIVE

ACTIVE FOOTWEAR

Present Law 

Additional U.S. Note to chapter 64 of the HTS contains HTS 

subheadings for protective active footwear, which includes products 

such as certain water resistant hiking shoes, trekking shoes, and 

train running shoes, and ensures they carry a 20 percent duty rate. 

Current law requires that any staged reductions in duties as may 

be required by U.S. free trade agreements for athletic footwear will 

also apply to protective active footwear. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

Section 913 contains technical corrections to Additional U.S. 

Note to chapter 64. 

SECTION 914. AMENDMENTS TO BIPARTISAN CONGRESSIONAL TRADE

PRIORITIES AND ACCOUNTABILITY ACT OF 2015

Present Law 

The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 sets forth negotiating objectives, procedures for 


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consulting with Congress, and provisions for the consideration of 

trade agreements. 

House Amendment 

This section amends the Bipartisan Congressional Trade Priorities and Accountability Act of 2015. Subsection (a) ensures that 

trade agreements do not require changes to U.S. immigration law 

or obligate the United States to grant access or expand access to 

visas issued under 8 U.S.C. 1101(a)(15). Subsection (b) ensures 

that trade agreements do not establish obligations for the United 

States regarding greenhouse gas emissions measures. Subsection 

(c) adds a negotiating objective related to fisheries. Subsection (d) 

allows the Chair and Ranking Member of the House and Senate 

Advisory Groups to each send up to three personnel to serve as delegates to negotiating rounds. Subsection (e) perfects the negotiating objective on human trafficking to require countries to take 

concrete steps to address trafficking. Subsection (f) makes technical 

amendments. Subsection (g) makes these amendments effective as 

if included in the enactment of the Bipartisan Congressional Trade 

Priorities and Accountability Act of 2015. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House Amendment, with 

modifications to the climate change, and fisheries negotiating objectives; the provisions on delegates attending negotiating rounds; and 

human trafficking. 

With regard to section 914(b), this negotiating objective reaffirms that, consistent with current practice, trade agreements are 

not to establish obligations for the United States regarding greenhouse gas emissions measures, other than those fulfilling the other 

negotiating objectives in section 102 of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015. This objective is not intended to prevent trade agreements from including 

generally applicable or horizontal commitments, such as those regarding transparency or nondiscrimination, that may also apply to 

such requirements, nor to prevent trade agreements from including 

obligations consistent with other negotiating objectives addressed 

in the Bipartisan Trade Priorities and Accountability Act of 2015, 

including those relating to the environment, the reduction of tariffs 

on environmental goods, or fisheries as provided in this Conference 

Report. Were an agreement to include a provision establishing obligations regarding U.S. greenhouse gas emissions measures as specified in the Conference Report, a bill approving the agreement 

should be disqualified from eligibility for trade authorities procedures and should be considered under regular order, just like an 

agreement that fails to make progress in achieving the negotiating 

objectives set forth in section 102 of the Bipartisan Congressional 

Trade Priorities and Accountability Act of 2015. 

With regard to Section 914(d), the Conference additionally 

clarifies that Members of Congress and personnel designated by 

the Chair and Ranking Member of the House and Senate Advisory 


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Groups shall be delegates and official advisors to any trade agreement negotiating round. 

With regard to section 914(e), this provision follows the House 

Amendment with additional changes to incorporate the sense of 

Congress that the integrity of the annual trafficking in persons report and report process should be respected and should not be affected by unrelated considerations, to require that the President 

provide supporting documentation with any letter submitted pursuant to the exception, and to require the President to submit a detailed description of the credible evidence supporting a change in 

designation from tier 3 to tier 2 watch list. 

SECTION 915. TRADE PREFERENCES FOR NEPAL

Present Law 

No provision. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement creates additional trade preferences 

for Nepal. The program requires Nepal to satisfy the eligibility criteria of the Africa Growth and Opportunity Act to be eligible for 

duty-free treatment of certain articles imported from Nepal. The 

provision is in response to the recent natural disaster in Nepal. 

SECTION 916. AGREEMENT BY ASIA-PACIFIC ECONOMIC COOPERATION

MEMBERS TO REDUCE RATES OF DUTY ON CERTAIN ENVIRONMENTAL

GOODS

Present Law 

No provision. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

Section 916 amends section 107 of the Trade Priorities and Accountability Act of 2015 to allow the President to use section 103(a) 

authorities to implement an agreement by members of the Asia-Pacific Economic Cooperation (APEC) forum to reduce any rate of 

duty on certain environmental goods included in annex C of the 

APEC Leaders Declaration issued on September 9, 2012, notwithstanding the notification requirement in section 103(a)(2). Such authority may be exercised only after the President notifies Congress, 

consistent with this provision. 


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SECTION 917. AMENDMENT TO TARIFF ACT OF 1930 TO REQUIRE

COUNTRY OF ORIGIN MARKING OF CERTAIN CASTINGS

Present Law 

Section 304(e) of the Tariff Act of 1930 (19 U.S.C. 1304(e)) requires that certain products (e.g., manhole rings) have visible country of origin markings. 

House Amendment 

No provision. 

Senate Amendment 

Section 911 of the Senate amendment amends section 304(e) of 

the Tariff Act of 1930 (19 U.S.C. 1304(e)) to include inlet frames, 

tree and trench grates, lampposts, lamppost bases, cast utility 

poles, bollards, hydrants, and utility boxes in the list of products 

which must be imprinted with a country of origin marking. This 

section also amends current law by requiring the aforementioned 

marking to be in a location such that it will remain visible after 

installation. 

Conference Agreement 

The conference agreement follows the Senate amendment. 

SECTION 918. INCLUSION OF CERTAIN INFORMATION IN SUBMISSION OF

NOMINATION FOR APPOINTMENT OF DEPUTY UNITED STATES TRADE

REPRESENTATIVE

Present Law 

No provision. 

House Amendment 

No provision. 

Senate Amendment 

Section 907 of the Senate amendment requires that, when the 

President submits to the Senate for its advice and consent a nomination of an individual for appointment as a Deputy United States 

Trade Representative, the President shall include in that submission information on the country, regional offices, and functions of 

the Office of the United States Trade Representative with respect 

to which that individual will have responsibility. 

Conference Agreement 

The conference agreement follows the Senate amendment with 

additional reporting requirements. 

SECTION 919. SENSE OF CONGRESS ON THE NEED FOR A

MISCELLANEOUS TARIFF BILL PROCESS

Present Law 

No provision. 

House Amendment 

No provision. 


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Senate Amendment 

Title VIII of the Senate amendment established a process for 

the consideration of temporary duty suspensions and reductions. 

Conference Agreement 

The conference agreement states that it is the sense of Congress that the Senate Finance Committee and the House Ways and 

Means Committee are urged to advance, as soon as possible, after 

consultation with the public and Members of the Senate and the 

House of Representatives, a process for the temporary suspension 

and reduction of duties that is consistent with the rules of the Senate and the House. 

SECTION 920. CUSTOMS USER FEES

Present Law 

Under section 13031(a) of the Consolidated Omnibus Budget 

Reconciliation Act of 1985, the Secretary of the Treasury is authorized to charge and collect fees for the provision of certain customs 

services. Pursuant to section 13031(j)(3), the Secretary of the 

Treasury may not charge fees for the provision of certain customs 

services after September 30, 2024. 

House Amendment 

Section 910 amends section 13031(j)(3)(A) of the Consolidated 

Omnibus Budget Reconciliation Act of 1985 to extend the period 

that the Secretary of the Treasury may charge for certain customs 

services for imported goods from July 8, 2025 to July 28, 2025, and 

extends the ad valorem rate for the Merchandise Processing Fee 

collected by CBP that offsets the costs incurred in processing and 

inspecting imports from July 1, 2025 to July 14, 2025. 

Senate Amendment 

Section 1002 of the Senate amendment is the same as section 

910 of the House amendment. 

Conference Agreement 

The conference agreement follows the House amendment and 

the Senate amendment and makes technical corrections to the 

drafting. 

SECTION 921. INCREASE IN PENALTY FOR FAILURE TO FILE RETURN OF

TAX

Present Law 

The Federal tax system is one of ‘‘self-assessment,’’ i.e., taxpayers are required to declare their income, expenses, and ultimate 

tax due, while the IRS has the ability to propose subsequent 

changes. This voluntary system requires that taxpayers comply 

with deadlines and adhere to the filing requirements. While taxpayers may obtain extensions of time in which to file their returns, 

the Federal tax system consists of specific due dates of returns. In 


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1See United States v. Boyle, 469 U.S. 241, 245 (1985). 2Sec. 6651(a)(1). 

3Sec. 6651(f). 

4Sec. 6651(b)(1). 

5Sec. 6651(a)(1). 

6Sec. 6651(c)(1). 

7 Ibid. 8Sec. 6651(a)(1). 

9Sec. 6651(e). 

order to foster compliance in meeting these deadlines, Congress has 

enacted a penalty for the failure to timely file tax returns.1

A taxpayer who fails to file a tax return on or before its due 

date is subject to a penalty equal to 5 percent of the net amount 

of tax due for each month that the return is not filed, up to a maximum of 25 percent of the net amount.2 If the failure to file a return is fraudulent, the taxpayer is subject to a penalty equal to 15 

percent of the net amount of tax due for each month the return is 

not filed, up to a maximum of 75 percent of the net amount.3 The 

net amount of tax due is the amount of tax required to be shown 

on the return reduced by the amount of any part of the tax which 

is paid on or before the date prescribed for payment of the tax and 

by the amount of any credits against tax which may be claimed on 

the return.4 The penalty will not apply if it is shown that the failure to file was due to reasonable cause and not willful neglect.5

If a return is filed more than 60 days after its due date, and 

unless it is shown that such failure is due to reasonable cause, the 

failure to file penalty may not be less than the lesser of $135 (indexed annually for inflation) or 100 percent of the amount required 

to be shown as tax on the return. If a penalty for failure to file and 

a penalty for failure to pay tax shown on a return both apply for 

the same month, the amount of the penalty for failure to file for 

such month is reduced by the amount of the penalty for failure to 

pay tax shown on a return.6 If a return is filed more than 60 days 

after its due date, the penalty for failure to pay tax shown on a return may not reduce the penalty for failure to file below the lesser 

of $135 or 100 percent of the amount required to be shown on the 

return.7

The failure to file penalty applies to all returns required to be 

filed under subchapter A of Chapter 61 (relating to income tax returns of an individual, fiduciary of an estate or trust, or corporation; self-employment tax returns, and estate and gift tax returns), 

subchapter A of chapter 51 (relating to distilled spirits, wines, and 

beer), subchapter A of chapter 52 (relating to tobacco, cigars, cigarettes, and cigarette papers and tubes), and subchapter A of chapter 53 (relating to machine guns and certain other firearms).8 The 

failure to file penalty does not apply to any failure to pay estimated 

tax required to be paid by sections 6654 or 6655.9

House Amendment 

Under the provision, if a return is filed more than 60 days 

after its due date, then the failure to file penalty may not be less 

than the lesser of $205 or 100 percent of the amount required to 

be shown as tax on the return. 

Effective date.—The provision applies to returns required to be 

filed in calendar years after 2015. 


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231 

Senate Amendment 

No provision. 

Conference Agreement 

The conference agreement follows the House amendment provision. 

SECTION 922. PERMANENT MORATORIUM ON INTERNET ACCESS TAXES

AND ON MULTIPLE AND DISCRIMINATORY TAXES ON ELECTRONIC

COMMERCE

Present Law 

The temporary moratorium on states and localities taxing 

Internet access or placing multiple and discriminatory taxes on 

Internet commerce expires on December 11, 2015. 

House Amendment 

No provision. 

Senate Amendment 

No provision. 

Conference Agreement 

Section 922 makes permanent an existing moratorium on 

states and localities taxing Internet access or placing multiple and 

discriminatory taxes on Internet commerce. The existing temporary 

ban was first put in place in 1998. Since then, Congress has extended it multiple times with enormous bipartisan support. Section 

922 converts the moratorium into a permanent ban—on which consumers, innovators and investors can permanently rely—by simply 

striking the 2015 end date. The original moratorium included a 

grandfather clause to give States that were then taxing Internet 

access some time to transition to other sources of revenue. All but 

six of the originally grandfathered states have discontinued taxing 

Internet access. Section 922 gives those states additional time by 

delaying the phase-out of the grandfathers until June 30, 2020 

which is the end of the fiscal year for states and the start of a new 

billing cycle for Internet access providers. 

MINORITY VIEWS 

During the Senate’s consideration of legislation earlier this 

year, Finance Committee Ranking Member Ron Wyden, Senator 

Bill Nelson (D–FL), and Senator Ben Cardin (D–MD), members of 

the Finance Committee, expressed their support for the establishment of a process whereby Congress would consider the merits of 

an extension of certain apparel Tariff Preference Levels (TPLs). It 

is the view of Senator Wyden that these programs can offer benefits to U.S. consumers, workers, and exporters, and Congress 

should further consider the merits of an extension of the Nicaragua, Bahrain, and Morocco TPLs. 

KEVIN BRADY, 

DAVID REICHERT, 

PAT TIBERI, 

Managers on the Part of the House. 


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ORRIN HATCH, JOHN CORNYN, JOHN THUNE, JOHNNY ISAKSON, RON WYDEN, DEBBIE STABENOW, Managers on the Part of the Senate. 

Æ 


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