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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5329 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5329

To amend section 321 of the Tariff Act of 1930 to enhance transparency 
  with respect to shipments seeking an administrative exemption from 
         duties for low-value entries, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 14, 2024

  Mr. Wyden (for himself, Ms. Lummis, Mr. Brown, Ms. Collins, and Mr. 
Casey) introduced the following bill; which was read twice and referred 
                      to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To amend section 321 of the Tariff Act of 1930 to enhance transparency 
  with respect to shipments seeking an administrative exemption from 
         duties for low-value entries, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fighting Illicit Goods, Helping 
Trustworthy Importers, and Netting Gains for America Act of 2024'' or 
the ``FIGHTING for America Act of 2024''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) driven by the COVID-19 pandemic and other global 
        factors, the volume of low-value imports into the United States 
        that are eligible for an administrative exemption from duties 
        under section 321 of the Tariff Act of 1930 (19 U.S.C. 1321), 
        known as the ``de minimis'' exemption, has accelerated in 
        recent years;
            (2) as the patterns of trade change, it is necessary to 
        periodically review customs procedures to ensure that those 
        procedures are sufficient to protect the revenue of the United 
        States, provide for the interdiction of illicit goods, and 
        otherwise facilitate legitimate trade and the appropriate use 
        of customs resources;
            (3) since the amendment to section 321 of the Tariff Act of 
        1930 made by section 901 of the Trade Facilitation and Trade 
        Enforcement Act of 2015 (Public Law 114-125; 130 Stat. 223), 
        growth in the direct-to-consumer model of business has 
        accelerated attempts to ship illicit drugs and other 
        unauthorized products through low-value shipments and tariff-
        based remedies seeking to ensure a level playing field for 
        United States workers have increased; and
            (4) as such, the conditions of trade require Congress to 
        reevaluate the purpose and intent of the powers delegated to 
        the Secretary of the Treasury under section 321 of the Tariff 
        Act of 1930, as so amended, to both protect the revenue of the 
        United States and properly scrutinize shipments subject to an 
        administrative exemption established under that section.

SEC. 3. DESIGNATION OF PRIORITY TRADE ISSUE.

    Section 117(a) of the Trade Facilitation and Trade Enforcement Act 
of 2015 (19 U.S.C. 4322(a)) is amended by adding at the end the 
following:
            ``(8) The smuggling of fentanyl, other illicit drugs, and 
        related material by abusing entry procedures for merchandise 
        qualifying for an administrative exemption pursuant to section 
        321 of the Tariff Act of 1930 (19 U.S.C. 1321).''.

SEC. 4. ENHANCED TRANSPARENCY FOR SHIPMENTS.

    Section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) is amended 
by adding at the end the following:
    ``(c) Documentation and Information Supporting Eligibility for 
Exemption.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this subsection, the Secretary of the 
        Treasury, in consultation with the Postmaster General, shall 
        prescribe regulations to require the provision to U.S. Customs 
        and Border Protection, separate from any entry filing, of such 
        documentation or information with respect to an article that 
        may qualify for an administrative exemption under subsection 
        (a)(2)(C) as the Secretary determines is reasonably necessary 
        for U.S. Customs and Border Protection to determine the 
        admissibility of the article and the eligibility of the article 
        for the exemption when in a postal or other shipment.
            ``(2) Included documentation or information.--Pursuant to 
        paragraph (1), the Secretary may require, with respect to an 
        article that may qualify for an administrative exemption under 
        subsection (a)(2)(C), documentation or information regarding--
                    ``(A) the offer for sale or purchase, or the 
                subsequent sale, purchase, transportation, importation, 
                or warehousing of, the article, including documentation 
                or information related to the offering of the article 
                for sale or purchase within the United States through a 
                commercial or marketing platform, including an 
                electronic commerce platform or marketplace, if 
                applicable;
                    ``(B) the identity of the seller, the shipper, the 
                carrier, the final delivery party, or the purchaser of 
                the article, as applicable;
                    ``(C) the fair retail value in the country of 
                shipment; and
                    ``(D) other information determined to be necessary 
                to protect the revenue and prevent unlawful 
                importations.
            ``(3) Identification of harmonized tariff schedule 
        classification.--Notwithstanding any other provision of law, 
        the Secretary, in consultation with the Postmaster General, 
        shall require, with respect to an article claimed as qualifying 
        for an administrative exemption under subsection (a)(2)(C), the 
        submission of the following information as part of the entry 
        filing:
                    ``(A) The identification of the 10-digit 
                statistical reporting number of the Harmonized Tariff 
                Schedule of the United States under which the article 
                is classifiable.
                    ``(B) A description of the article with sufficient 
                specificity to allow U.S. Customs and Border Protection 
                to evaluate the correctness of the statistical 
                reporting number for the article identified under 
                subparagraph (A).
                    ``(C) The country of origin of the article.
            ``(4) Parties providing documentation and information.--The 
        documentation or information required pursuant to paragraph (1) 
        with respect to an article that may qualify for an 
        administrative exemption under subsection (a)(2)(C) may be 
        provided by a party or parties other than one of the parties 
        qualifying to make entry, as specified by the Secretary by 
        regulations prescribed under section 498.
            ``(5) Veracity of documentation and information.--A person 
        providing documentation or information to U.S. Customs and 
        Border Protection pursuant to paragraph (1) shall ensure that 
        the documentation or information is true and correct to the 
        best of the person's knowledge and belief, subject to any 
        penalties authorized by law.
            ``(6) Use of information.--U.S. Customs and Border 
        Protection may use documentation or information provided 
        pursuant to paragraph (1) for any lawful purpose necessary to 
        fulfill the mission of U.S. Customs and Border Protection.
            ``(7) Penalties.--
                    ``(A) Violation of regulations.--
                            ``(i) Civil penalty.--Any person that 
                        violates the regulations prescribed under this 
                        subsection is liable for a civil penalty in an 
                        amount not to exceed--
                                    ``(I) $1,000 for the first 
                                violation; and
                                    ``(II) $5,000 for each subsequent 
                                violation.
                            ``(ii) Additional penalties.--A penalty 
                        imposed under this subparagraph shall be in 
                        addition to any other penalty provided by law.
                            ``(iii) Remission; mitigation.--
                                    ``(I) In general.--Except as 
                                provided by subclause (II), a penalty 
                                imposed under this subparagraph may be 
                                remitted or mitigated on a per package 
                                or shipment basis, as appropriate, 
                                under section 618.
                                    ``(II) Exception.--If a penalty is 
                                being considered with respect to a 
                                fourth or subsequent violation 
                                described in clause (i) by the same 
                                person, the maximum penalty under 
                                clause (i)(II) shall be imposed with 
                                respect to the violation.
                    ``(B) Additional violations.--
                            ``(i) In general.--A person commits fraud 
                        if the person provides a false statement to 
                        U.S. Customs and Border Protection with respect 
                        to an article and U.S. Customs and Border 
                        Protection--
                                    ``(I) permits the entry of that 
                                article at less than the proper rate of 
                                duty; or
                                    ``(II) improperly treats that 
                                article as qualifying for an 
                                administrative exemption under 
                                subsection (a)(2)(C).
                            ``(ii) Civil penalty.--A person that 
                        engages in conduct described in clause (i) is 
                        liable for a civil penalty in an amount not to 
                        exceed--
                                    ``(I) $5,000 for the first instance 
                                of such conduct; and
                                    ``(II) $10,000 for each subsequent 
                                instance of such conduct.
                            ``(iii) Additional penalties.--A penalty 
                        imposed under this subparagraph shall be in 
                        addition to any other penalty provided by 
                        section 592 or any other provision of law.
                            ``(iv) Remission; mitigation.--
                                    ``(I) In general.--Except as 
                                provided by subclause (II), a penalty 
                                imposed under this subparagraph may be 
                                remitted or mitigated on a per package 
                                or shipment basis, as appropriate, 
                                under section 618.
                                    ``(II) Exception.--If a penalty is 
                                being considered with respect to a 
                                fourth or subsequent violation 
                                described in clause (i) by the same 
                                person, the maximum penalty under 
                                clause (ii)(II) shall be imposed with 
                                respect to the violation.
            ``(8) Definition.--In this subsection, the terms `provide', 
        `providing', and `provision', with respect to documentation or 
        information provided to U.S. Customs and Border Protection, 
        include the submission, transmission, or otherwise making 
        available of the documentation or information to U.S. Customs 
        and Border Protection.''.

SEC. 5. LIMITATIONS ON EXEMPTION FROM DUTIES.

    Section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) is amended 
by striking ``(b) The Secretary of the Treasury'' and inserting the 
following:
    ``(b) Exceptions.--
            ``(1) In general.--The Secretary of the Treasury may not 
        exempt from duties and taxes under subsection (a)(2)(C)--
                    ``(A) any article that is--
                            ``(i) subject to an antidumping or 
                        countervailing duty determination, instruction, 
                        or order under title VII of this Act;
                            ``(ii) subject to a tariff-rate quota or 
                        other quota;
                            ``(iii) subject to a tax imposed under the 
                        Internal Revenue Code of 1986 that is collected 
                        by U.S. Customs and Border Protection;
                            ``(iv) subject to an action taken under--
                                    ``(I) section 201(a) or 301(c) of 
                                the Trade Act of 1974 (19 U.S.C. 
                                2251(a) and 2411(c)); or
                                    ``(II) section 232(c) of the Trade 
                                Expansion Act of 1962 (19 U.S.C. 
                                1862(c)); or
                            ``(v) as of January 1, 2025, not designated 
                        by the President under section 503 of the Trade 
                        Act of 1974 (19 U.S.C. 2463) as an eligible 
                        article for purposes of the Generalized System 
                        of Preferences under title V of that Act (19 
                        U.S.C. 2461 et seq.), as reflected in the 
                        Harmonized Tariff Schedule of the United 
                        States, without regard to whether the 
                        Generalized System of Preferences otherwise 
                        applies to the article, including for reasons 
                        of country of origin of the article or 
                        expiration of the Generalized System of 
                        Preferences; or
                    ``(B) any article of a type or class that the 
                Secretary determines is not able to be exempted from 
                duties and taxes under subsection (a) in a manner that 
                will protect the revenue and prevent unlawful 
                importations because the type or class is subject to--
                            ``(i) a significant increase in imports 
                        over the trend for a recent representative base 
                        period; or
                            ``(ii) persistent and significant evidence 
                        of hiding the shipment of illicit goods, fraud, 
                        counterfeiting, or other malfeasance.
            ``(2) List of articles determined unable to be exempted.--
        The Secretary shall identify any article of a type or class 
        that the Secretary determines under paragraph (1)(B) is not 
        able to be exempted from duties and taxes under subsection (a) 
        on a list maintained on a publicly accessible website and 
        reviewed not less frequently than annually by the Secretary.
            ``(3) Other exceptions.--The Secretary''.

SEC. 6. DISPOSITION OF DETAINED MERCHANDISE.

    Section 499 of the Tariff Act of 1930 (19 U.S.C. 1499) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) by redesignating subparagraphs (A) 
                        through (E) as clauses (i) through (v), 
                        respectively, and by moving such clauses, as so 
                        redesignated, 2 ems to the right;
                            (ii) by striking ``The Customs Service 
                        shall'' and inserting the following:
                    ``(A) In general.--U.S. Customs and Border 
                Protection shall''; and
                            (iii) by adding at the end the following:
                    ``(B) Merchandise for which entry sought under 
                administrative exemption from duties.--In the case of 
                detained merchandise for which entry under an 
                administrative exemption under section 321(a)(2)(C) is 
                claimed--
                            ``(i) U.S. Customs and Border Protection 
                        shall provide the notice required by 
                        subparagraph (A) to each party that appears to 
                        have an interest in the merchandise, based on 
                        information reasonably available to U.S. 
                        Customs and Border Protection, in such form and 
                        manner as the Secretary shall by regulation 
                        prescribe;
                            ``(ii) in addition to the matter required 
                        by clauses (i) through (v) of subparagraph (A), 
                        the notice shall advise the interested party 
                        that, instead of providing information in 
                        response to subparagraph (A)(v), the interested 
                        party may voluntarily abandon the merchandise; 
                        and
                            ``(iii) if U.S. Customs and Border 
                        Protection does not receive a response from an 
                        interested party by the date that is 15 days 
                        after the date of the notice--
                                    ``(I) the merchandise shall be 
                                deemed abandoned; and
                                    ``(II) title to the merchandise 
                                shall be vested in the United States 
                                and disposed of in accordance with 
                                law.''; and
                    (B) in paragraph (5), by adding at the end the 
                following:
                    ``(D) Subparagraphs (A), (B), and (C) do not apply 
                with respect to merchandise for which entry under an 
                administrative exemption under section 321(a)(2)(C) is 
                claimed.'';
            (2) by striking ``The Customs Service'' each place it 
        appears and inserting ``U.S. Customs and Border Protection''; 
        and
            (3) by striking ``the Customs Service'' each place it 
        appears and inserting ``U.S. Customs and Border Protection''.

SEC. 7. REPORT ON REVIEW OF MERCHANDISE BY PARTNER GOVERNMENT AGENCIES.

    Not later than 270 days after the date of the enactment of this 
Act, the Secretary of the Treasury shall submit to Congress a report on 
the engagement of partner government agencies of U.S. Customs and 
Border Protection in the review and detention of merchandise for which 
an administrative exemption under section 321 of the Tariff Act of 1930 
(19 U.S.C. 1321) is claimed that includes recommendations for improving 
such engagement and the interdiction of merchandise inconsistent with 
the requirements of such agencies.

SEC. 8. SUMMARY FORFEITURE OF CERTAIN MERCHANDISE IMPORTED CONTRARY TO 
              LAW.

    Section 596 of the Tariff Act of 1930 (19 U.S.C. 1595a) is amended 
by adding at the end the following:
    ``(e) Summary Forfeiture.--
            ``(1) In general.--Merchandise described in paragraph (2) 
        may be summarily forfeited to the United States and title shall 
        vest immediately in the United States.
            ``(2) Merchandise described.--Merchandise described in this 
        paragraph is merchandise being imported or attempted to be 
        imported--
                    ``(A) for which an administrative exemption under 
                section 321(a)(2)(C) is claimed; and
                    ``(B) that is described in paragraph (1), (2), or 
                (3) of section 596(c).
            ``(3) Notice.--In any case in which merchandise is 
        summarily forfeited pursuant to this subsection, U.S. Customs 
        and Border Protection shall notify the carrier of the 
        merchandise, and may notify a customs broker involved in the 
        importation or attempted importation of the merchandise, in 
        such form and manner as the Secretary shall prescribe by 
        regulation, which may include communication through an 
        authorized electronic data interchange system.''.

SEC. 9. MODIFICATION OF PENALTY FOR AIDING UNLAWFUL IMPORTATION.

    Section 596(b) of the Tariff Act of 1930 (19 U.S.C. 1595a(b)) is 
amended by striking ``the preceding subsection'' and all that follows 
and inserting the following: ``subsection (a) shall be liable, without 
regard to whether the article or articles introduced or attempted to be 
introduced were seized, for a penalty equal to the greater of--
            ``(1) the domestic value of the article or articles; or
            ``(2) $5,000.''.

SEC. 10. SHARING OF INFORMATION WITH RESPECT TO SUSPECTED VIOLATIONS OF 
              INTELLECTUAL PROPERTY RIGHTS.

    Section 628A(a) of the Tariff Act of 1930 (19 U.S.C. 1628a(a)) is 
amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``suspects'' and inserting ``has a 
                reasonable suspicion''; and
                    (B) by striking ``testing--'' and inserting 
                ``testing, may--'';
            (2) in paragraph (1)--
                    (A) by striking ``shall''; and
                    (B) by striking ``; and'' and inserting a 
                semicolon;
            (3) in paragraph (2)--
                    (A) by striking ``may,''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (4) by adding at the end the following:
            ``(3) provide to the person nonpublic information about the 
        merchandise that was--
                    ``(A) generated by an online marketplace or other 
                similar market platform, an express consignment 
                operator, a freight forwarder, or any other entity that 
                plays a role in the sale or importation of merchandise 
                into the United States or the facilitation of such sale 
                or importation, including copies or images of 
                packaging, materials, labeling, or containers; and
                    ``(B) provided to, shared with, or obtained by, 
                U.S. Customs and Border Protection.''.

SEC. 11. CUSTOMS USER FEE FOR PROCESSING SHIPMENTS.

    (a) In General.--Section 13031(a)(10) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(10)) is amended--
            (1) in subparagraph (C)--
                    (A) in clause (ii), by striking ``; or'' and 
                inserting a semicolon;
                    (B) in clause (iii), by striking the period at the 
                end and inserting ``; or''; and
                    (C) by inserting after clause (iii) the following:
                            ``(iv) $2 for each shipment, to be paid by 
                        the party making entry, if the entry or release 
                        of that shipment, whether automated or manual, 
                        is made under section 321(a)(2)(C) of the 
                        Tariff Act of 1930 (19 U.S.C. 
                        1321(a)(2)(C)).''; and
            (2) in the flush text at the end, by adding at the end the 
        following: ``In the case of shipments the entry or release of 
        which is made under section 321(a)(2)(C) of the Tariff Act of 
        1930 (19 U.S.C. 1321(a)(2)(C)) that are sent to the United 
        States through the international postal network, the Secretary, 
        in consultation with the Postmaster General, shall determine 
        whether it is appropriate to impose fees that are the same or 
        similar as the fees applicable to shipments under subparagraph 
        (C)(iv) on shipments by the United States Postal Service. If 
        the Secretary determines that such requirements are 
        appropriate, such requirements shall be prescribed by 
        regulation.''.
    (b) Payment.--Section 13031(b)(8)(D)(i) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(8)(D)(i)) is 
amended by inserting after ``merchandise'' the following: ``, except in 
the case of fees charged under subsection (a)(10)(C)(iv), in which case 
such fees shall be paid by the party making entry''.

SEC. 12. REPORT ON USE OF ADMINISTRATIVE EXEMPTIONS AND ENFORCEMENT 
              ACTIONS.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, and annually thereafter, the Secretary of the 
Treasury, in consultation with the Commissioner of U.S. Customs and 
Border Protection, shall submit to the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House of 
Representatives a report, followed by a briefing, on the use of 
administrative exemptions under section 321 of the Tariff Act of 1930 
(19 U.S.C. 1321).
    (b) Elements.--Each report required by subsection (a) shall 
include, for the year preceding submission of the report, the 
following:
            (1) An assessment of the volume of imports claiming an 
        administrative exemption under section 321(a)(2)(C) of the 
        Tariff Act of 1930 (19 U.S.C. 1321(a)(2)(C)), including--
                    (A) the total number of shipments of imports 
                claiming such an exemption; and
                    (B) the volume of merchandise claiming such an 
                exemption, identified by--
                            (i) the 4-digit heading of the Harmonized 
                        Tariff Schedule of the United States under 
                        which the merchandise was classified; and
                            (ii) the country of origin of the 
                        merchandise.
            (2) An assessment of the total revenue forgone by the 
        United States Government as a result of permitting the entry of 
        merchandise free of duty pursuant to that section.
            (3) The number and a description of the type of violations 
        of the regulations prescribed under subsection (c) of section 
        321 of the Tariff Act of 1930, as added by section 4, 
        identified in shipments claiming an administrative exemption 
        under that section, and penalties applied to such shipments, 
        including a description of the type and frequency of mitigation 
        actions applicable to such shipments.
            (4) A detailed description of shipments, disaggregated by 
        port of entry, for which an administrative exemption under 
        section 321(a)(2)(C) of the Tariff Act of 1930 (19 U.S.C. 
        1321(a)(2)(C)) was claimed that were subject to detention or 
        forfeiture and the reasons for the detention or forfeiture.
            (5) A description of any merchandise or shipments under 
        evaluation as ineligible, under subsection (b)(1)(B) of section 
        321 of the Tariff Act of 1930, as amended by section 5, for 
        such an administrative exemption.
            (6) The average number of referrals of criminal matters to 
        the Department of Justice or Homeland Security Investigations 
        made on a monthly basis for merchandise for which such an 
        administrative exemption was claimed.
            (7) A description of the use of administrative exemptions 
        under section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) 
        for merchandise shipped from Mexico or Canada to the United 
        States, including the volume and type of such merchandise for 
        which such an exemption was claimed, and any trends in the use 
        of such exemptions.
            (8) A description of current staffing, risk mitigation, and 
        other actions to ensure that administrative exemptions under 
        section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) are used 
        in compliance with United States law.

SEC. 13. EFFECTIVE DATE; APPLICABILITY.

    The amendments made by this Act shall--
            (1) take effect on the date that is 60 days after the date 
        of the enactment of this Act; and
            (2) apply with respect to articles entered on or after the 
        date that is 30 days after the effective date of the 
        regulations prescribed under subsection (c) of section 321 of 
        the Tariff Act of 1930, as added by section 4.
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