99–008

107TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 107–482

PROVIDING FOR CONSIDERATION OF H.R. 3129, CUSTOMS

BORDER SECURITY ACT OF 2001

MAY 22 (legislative day, MAY 21), 2002.—Referred to the House Calendar and

ordered to be printed

Mrs. MYRICK, from the Committee on Rules,

submitted the following

R E P O R T

[To accompany H. Res. 426]

The Committee on Rules, having had under consideration House

Resolution 426, by a nonrecord vote, report the same to the House

with the recommendation that the resolution be adopted.

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 3129, the Customs Border Security Act of 2001, under a structured rule. The rule

provides one hour of general debate equally divided and controlled

by the chairman and ranking minority member of the Committee

on Ways and Means.

The rule waives all points of order against consideration of the

bill. The rule provides that it shall be in order to consider as an

original bill for the purpose of amendment the amendment in the

nature of a substitute recommended by the Committee on Ways

and Means.

The rule waives all points of order against the committee amendment in the nature of a substitute. The rule makes in order only

those amendments printed in this report. The rule also provides

that the amendments may be offered only in the order printed in

this report, may be offered only by the Member designated in this

report, shall be considered as read, shall be debatable for the time

specified in this report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment, and

shall not be subject to a demand for division of the question in the

House or in the Committee of the Whole. The rule waives all points

of order against the amendments printed in this report.

Finally, the rule provides one motion to recommit with or without instructions.

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The waiver of all points of order includes a waiver of section 311

of the Congressional Budget Act (prohibiting consideration of legislation or an amendment that would cause the total level of new

budget authority or outlays in the most recent budget resolution to

be exceeded or would cause revenues to be less).

SUMMARY OF AMENDMENTS MADE IN ORDER UNDER THE RULE

Thomas—Manager’s Amendment. Increases agency authorization

funding levels at Section 101, 201, and 301 including earmark for

resources at Northern Border at Section 131. [New section 121] Extends authorization through 2004. Deletes Sections 121 through

125 concerning Customs officer pay changes and renumbers. Adds

new Section 127 to change Customs fees for couriers to a fixed fee

structure. Adds new Section 129 to provide monthly billing to importers and to prohibit duty deferrals. Clarifies at Section 143 that

advanced electronic manifest requirement applies only to inbound

cargo. Adds provision to require sharing of information collected by

Customs to other government agencies. Clarifies at Section 143

that advanced information for passengers and crew is not intended

to create new immigration requirements. Specifically, the Secretary

can demand passport and visa information only if such a requirement to have a passport or visa already applies to the passenger

or crew. (10 minutes)

Rangel—Substitute. Amends Section 141, states that Customs inspectors are not liable for civil damages for suits brought in connection with a personal search. States that the U.S. Government consents to be sued, and be held liable for civil damages for suits

brought in connection with a wrongful personal search. Deletes

Section 144 on Border Search Authority for Outbound Mail. (60

minutes)

TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE THOMAS OF

CALIFORNIA, OR A DESIGNEE, DEBATABLE FOR 10 MINUTES

Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Customs Border Security Act of

2002’’.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—UNITED STATES CUSTOMS SERVICE

Subtitle A—Drug Enforcement and Other Noncommercial and Commercial

Operations

Sec. 101. Authorization of appropriations for noncommercial operations, commercial

operations, and air and marine interdiction.

Sec. 102. Antiterrorist and illicit narcotics detection equipment for the United

States-Mexico border, United States-Canada border, and Florida and

the Gulf Coast seaports.

Sec. 103. Compliance with performance plan requirements.

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Subtitle B—Child Cyber-Smuggling Center of the Customs Service

Sec. 111. Authorization of appropriations for program to prevent child pornography/

child sexual exploitation.

Subtitle C—Miscellaneous Provisions

Sec. 121. Additional Customs Service officers for United States-Canada border.

Sec. 122. Study and report relating to personnel practices of the Customs Service.

Sec. 123. Study and report relating to accounting and auditing procedures of the

Customs Service.

Sec. 124. Establishment and implementation of cost accounting system; reports.

Sec. 125. Study and report relating to timeliness of prospective rulings.

Sec. 126. Study and report relating to Customs user fees.

Sec. 127. Fees for Customs inspections at express courier facilities.

Sec. 128. National Customs Automation Program.

Subtitle D—Antiterrorism Provisions

Sec. 141. Immunity for United States officials that act in good faith.

Sec. 142. Emergency adjustments to offices, ports of entry, or staffing of the Customs Service.

Sec. 143. Mandatory advanced electronic information for cargo and passengers.

Sec. 144. Border search authority for certain contraband in outbound mail.

Sec. 145. Authorization of appropriations for reestablishment of Customs operations in New York City.

Subtitle E—Textile Transshipment Provisions

Sec. 151. GAO audit of textile transshipment monitoring by Customs Service.

Sec. 152. Authorization of appropriations for textile transshipment enforcement operations.

Sec. 153. Implementation of the African Growth and Opportunity Act.

TITLE II—OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

Sec. 201. Authorization of appropriations.

TITLE III—UNITED STATES INTERNATIONAL TRADE COMMISSION

Sec. 301. Authorization of appropriations.

TITLE IV—OTHER TRADE PROVISIONS

Sec. 401. Increase in aggregate value of articles exempt from duty acquired abroad

by United States residents.

Sec. 402. Regulatory audit procedures.

TITLE I—UNITED STATES CUSTOMS

SERVICE

Subtitle A—Drug Enforcement and Other

Noncommercial and Commercial Operations

SEC. 101. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMERCIAL OPERATIONS, COMMERCIAL OPERATIONS, AND AIR

AND MARINE INTERDICTION.

(a) NONCOMMERCIAL OPERATIONS.—Section 301(b)(1) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C.

2075(b)(1)) is amended—

(1) in subparagraph (A) to read as follows:

‘‘(A) $899,121,000 for fiscal year 2002.’’;

(2) in subparagraph (B) to read as follows:

‘‘(B) $1,365,456,000 for fiscal year 2003.’’; and

(3) by adding at the end the following:

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‘‘(C) $1,399,592,400 for fiscal year 2004.’’.

(b) COMMERCIAL OPERATIONS.—

(1) IN GENERAL.—Section 301(b)(2)(A) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C.

2075(b)(2)(A)) is amended—

(A) in clause (i) to read as follows:

‘‘(i) $1,606,068,000 for fiscal year 2002.’’;

(B) in clause (ii) to read as follows:

‘‘(ii) $1,642,602,000 for fiscal year 2003.’’; and

(C) by adding at the end the following:

‘‘(iii) $1,683,667,050 for fiscal year 2004.’’.

(2) AUTOMATED COMMERCIAL ENVIRONMENT COMPUTER SYSTEM.—Of the amount made available for each of fiscal years

2002 through 2004 under section 301(b)(2)(A) of the Customs

Procedural Reform and Simplification Act of 1978 (19 U.S.C.

2075(b)(2)(A)), as amended by paragraph (1), $308,000,000

shall be available until expended for each such fiscal year for

the development, establishment, and implementation of the

Automated Commercial Environment computer system.

(3) REPORTS.—Not later than 90 days after the date of the

enactment of this Act, and not later than each subsequent 90-

day period, the Commissioner of Customs shall 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 out in a cost-effective manner and

meets the modernization requirements of title VI of the North

American Free Trade Agreement Implementation Act.

(c) AIR AND MARINE INTERDICTION.—Section 301(b)(3) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C.

2075(b)(3)) is amended—

(1) in subparagraph (A) to read as follows:

‘‘(A) $177,860,000 for fiscal year 2002.’’;

(2) in subparagraph (B) to read as follows:

‘‘(B) $170,829,000 for fiscal year 2003.’’; and

(3) by adding at the end the following:

‘‘(C) $175,099,725 for fiscal year 2004.’’.

(d) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS.—Section

301(a) of the Customs Procedural Reform and Simplification Act of

1978 (19 U.S.C. 2075(a)) is amended by adding at the end the following:

‘‘(3) By not later than the date on which the President submits

to Congress the budget of the United States Government for a fiscal year, the Commissioner of Customs shall submit to the Committee on Ways and Means of the House of Representatives and

the Committee on Finance of the Senate the projected amount of

funds for the succeeding fiscal year that will be necessary for the

operations of the Customs Service as provided for in subsection

(b).’’.

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SEC. 102. ANTITERRORIST AND ILLICIT NARCOTICS DETECTION

EQUIPMENT FOR THE UNITED STATES-MEXICO BORDER,

UNITED STATES-CANADA BORDER, AND FLORIDA AND

THE GULF COAST SEAPORTS.

(a) FISCAL YEAR 2002.—Of the amounts made available for fiscal

year 2002 under section 301(b)(1)(A) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as

amended by section 101(a) of this Act, $90,244,000 shall be available until expended for acquisition and other expenses associated

with implementation and deployment of antiterrorist and illicit

narcotics detection equipment along the United States-Mexico border, the United States-Canada border, and Florida and the Gulf

Coast seaports, as follows:

(1) UNITED STATES-MEXICO BORDER.—For the United StatesMexico border, the following:

(A) $6,000,000 for 8 Vehicle and Container Inspection

Systems (VACIS).

(B) $11,200,000 for 5 mobile truck x-rays with transmission and backscatter imaging.

(C) $13,000,000 for the upgrade of 8 fixed-site truck xrays from the present energy level of 450,000 electron volts

to 1,000,000 electron volts (1–MeV).

(D) $7,200,000 for 8 1–MeV pallet x-rays.

(E) $1,000,000 for 200 portable contraband detectors

(busters) to be distributed among ports where the current

allocations are inadequate.

(F) $600,000 for 50 contraband detection kits to be distributed among all southwest border ports based on traffic

volume.

(G) $500,000 for 25 ultrasonic container inspection units

to be distributed among all ports receiving liquid-filled

cargo and to ports with a hazardous material inspection facility.

(H) $2,450,000 for 7 automated targeting systems.

(I) $360,000 for 30 rapid tire deflator systems to be distributed to those ports where port runners are a threat.

(J) $480,000 for 20 portable Treasury Enforcement Communications Systems (TECS) terminals to be moved

among ports as needed.

(K) $1,000,000 for 20 remote watch surveillance camera

systems at ports where there are suspicious activities at

loading docks, vehicle queues, secondary inspection lanes,

or areas where visual surveillance or observation is obscured.

(L) $1,254,000 for 57 weigh-in-motion sensors to be distributed among the ports with the greatest volume of outbound traffic.

(M) $180,000 for 36 AM traffic information radio stations, with 1 station to be located at each border crossing.

(N) $1,040,000 for 260 inbound vehicle counters to be installed at every inbound vehicle lane.

(O) $950,000 for 38 spotter camera systems to counter

the surveillance of customs inspection activities by persons

outside the boundaries of ports where such surveillance activities are occurring.

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(P) $390,000 for 60 inbound commercial truck transponders to be distributed to all ports of entry. (Q) $1,600,000 for 40 narcotics vapor and particle detectors to be distributed to each border crossing. (R) $400,000 for license plate reader automatic targeting

software to be installed at each port to target inbound vehicles.

(2) UNITED STATES-CANADA BORDER.—For the United StatesCanada border, the following: (A) $3,000,000 for 4 Vehicle and Container Inspection

Systems (VACIS). (B) $8,800,000 for 4 mobile truck x-rays with transmission and backscatter imaging. (C) $3,600,000 for 4 1–MeV pallet x-rays. (D) $250,000 for 50 portable contraband detectors (busters) to be distributed among ports where the current allocations are inadequate. (E) $300,000 for 25 contraband detection kits to be distributed among ports based on traffic volume. (F) $240,000 for 10 portable Treasury Enforcement Communications Systems (TECS) terminals to be moved

among ports as needed. (G) $400,000 for 10 narcotics vapor and particle detectors to be distributed to each border crossing based on traffic volume.

(3) FLORIDA AND GULF COAST SEAPORTS.—For Florida and the

Gulf Coast seaports, the following: (A) $4,500,000 for 6 Vehicle and Container Inspection

Systems (VACIS). (B) $11,800,000 for 5 mobile truck x-rays with transmission and backscatter imaging. (C) $7,200,000 for 8 1–MeV pallet x-rays. (D) $250,000 for 50 portable contraband detectors (busters) to be distributed among ports where the current allocations are inadequate.

(E) $300,000 for 25 contraband detection kits to be distributed among ports based on traffic volume.

(b) FISCAL YEAR 2003.—Of the amounts made available for fiscal

year 2003 under section 301(b)(1)(B) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(B)), as

amended by section 101(a) of this Act, $9,000,000 shall be available

until expended for the maintenance and support of the equipment

and training of personnel to maintain and support the equipment

described in subsection (a).

(c) ACQUISITION OF TECHNOLOGICALLY SUPERIOR EQUIPMENT;

TRANSFER OF FUNDS.—

(1) IN GENERAL.—The Commissioner of Customs may use

amounts made available for fiscal year 2002 under section

301(b)(1)(A) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as amended by section 101(a) of this Act, for the acquisition of equipment other

than the equipment described in subsection (a) if such other

equipment— (A)(i) is technologically superior to the equipment described in subsection (a); and

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(ii) will achieve at least the same results at a cost that

is the same or less than the equipment described in subsection (a); or

(B) can be obtained at a lower cost than the equipment

described in subsection (a).

(2) TRANSFER OF FUNDS.—Notwithstanding any other provision of this section, the Commissioner of Customs may reallocate an amount not to exceed 10 percent of—

(A) the amount specified in any of subparagraphs (A)

through (R) of subsection (a)(1) for equipment specified in

any other of such subparagraphs (A) through (R);

(B) the amount specified in any of subparagraphs (A)

through (G) of subsection (a)(2) for equipment specified in

any other of such subparagraphs (A) through (G); and

(C) the amount specified in any of subparagraphs (A)

through (E) of subsection (a)(3) for equipment specified in

any other of such subparagraphs (A) through (E).

SEC. 103. COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS.

As part of the annual performance plan for each of the fiscal

years 2002 and 2003 covering each program activity set forth in the

budget of the United States Customs Service, as required under

section 1115 of title 31, United States Code, the Commissioner of

Customs shall establish performance goals, performance indicators,

and comply with all other requirements contained in paragraphs

(1) through (6) of subsection (a) of such section with respect to each

of the activities to be carried out pursuant to section 102.

Subtitle B—Child Cyber-Smuggling Center

of the Customs Service

SEC. 111. AUTHORIZATION OF APPROPRIATIONS FOR PROGRAM TO

PREVENT CHILD PORNOGRAPHY/CHILD SEXUAL EXPLOITATION.

(a) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to

be appropriated to the Customs Service $10,000,000 for fiscal year

2002 to carry out the program to prevent child pornography/child

sexual exploitation established by the Child Cyber-Smuggling Center of the Customs Service.

(b) USE OF AMOUNTS FOR CHILD PORNOGRAPHY CYBER TIPLINE.—

Of the amount appropriated under subsection (a), the Customs

Service shall provide 3.75 percent of such amount to the National

Center for Missing and Exploited Children for the operation of the

child pornography cyber tipline of the Center and for increased

public awareness of the tipline.

Subtitle C—Miscellaneous Provisions

SEC. 121. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR UNITED

STATES-CANADA BORDER.

Of the amount made available for fiscal year 2002 under paragraphs (1) and (2)(A) of section 301(b) of the Customs Procedural

Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)), as

amended by section 101 of this Act, $28,300,000 shall be available

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until expended for the Customs Service to hire approximately 285

additional Customs Service officers to address the needs of the offices and ports along the United States-Canada border.

SEC. 122. STUDY AND REPORT RELATING TO PERSONNEL PRACTICES

OF THE CUSTOMS SERVICE.

(a) STUDY.—The Commissioner of Customs shall conduct a study

of current personnel practices of the Customs Service, including an

overview of performance standards and the effect and impact of the

collective bargaining process on drug interdiction efforts of the Customs Service and a comparison of duty rotation policies of the Customs Service and other Federal agencies that employ similarly-situated personnel.

(b) REPORT.—Not later than 120 days after the date of the enactment of this Act, the Commissioner of Customs shall submit to the

Committee on Ways and Means of the House of Representatives

and the Committee on Finance of the Senate a report containing

the results of the study conducted under subsection (a).

SEC. 123. STUDY AND REPORT RELATING TO ACCOUNTING AND AUDITING PROCEDURES OF THE CUSTOMS SERVICE.

(a) STUDY.—(1) The Commissioner of Customs shall conduct a

study of actions by the Customs Service to ensure that appropriate

training is being provided to Customs Service personnel who are

responsible for financial auditing of importers.

(2) In conducting the study, the Commissioner—

(A) shall specifically identify those actions taken to comply

with provisions of law that protect the privacy and trade secrets of importers, such as section 552(b) of title 5, United

States Code, and section 1905 of title 18, United States Code;

and

(B) shall provide for public notice and comment relating to

verification of the actions described in subparagraph (A).

(b) REPORT.—Not later than 6 months after the date of the enactment of this Act, the Commissioner of Customs shall submit to the

Committee on Ways and Means of the House of Representatives

and the Committee on Finance of the Senate a report containing

the results of the study conducted under subsection (a).

SEC. 124. ESTABLISHMENT AND IMPLEMENTATION OF COST ACCOUNTING SYSTEM; REPORTS.

(a) ESTABLISHMENT AND IMPLEMENTATION.—

(1) IN GENERAL.—Not later than September 30, 2003, the

Commissioner of Customs shall, in accordance with the audit

of the Customs Service’s fiscal years 2000 and 1999 financial

statements (as contained in the report of the Office of the Inspector General of the Department of the Treasury issued on

February 23, 2001), establish and implement a cost accounting

system for expenses incurred in both commercial and noncommercial operations of the Customs Service.

(2) ADDITIONAL REQUIREMENT.—The cost accounting system

described in paragraph (1) shall provide for an identification of

expenses based on the type of operation, the port at which the

operation took place, the amount of time spent on the operation by personnel of the Customs Service, and an identification of expenses based on any other appropriate classification

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necessary to provide for an accurate and complete accounting

of the expenses.

(b) REPORTS.—Beginning on the date of the enactment of this Act

and ending on the date on which the cost accounting system described in subsection (a) is fully implemented, the Commissioner of

Customs shall prepare and submit to Congress on a quarterly basis

a report on the progress of implementing the cost accounting system pursuant to subsection (a).

SEC. 125. STUDY AND REPORT RELATING TO TIMELINESS OF PROSPECTIVE RULINGS.

(a) STUDY.—The Comptroller General shall conduct a study on

the extent to which the Office of Regulations and Rulings of the

Customs Service has made improvements to decrease the amount

of time to issue prospective rulings from the date on which a request for the ruling is received by the Customs Service.

(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to the Committee on Ways and Means of the House of Representatives and

the Committee on Finance of the Senate a report containing the results of the study conducted under subsection (a).

(c) DEFINITION.—In this section, the term ‘‘prospective ruling’’

means a ruling that is requested by an importer on goods that are

proposed to be imported into the United States and that relates to

the proper classification, valuation, or marking of such goods.

SEC. 126. STUDY AND REPORT RELATING TO CUSTOMS USER FEES.

(a) STUDY.—The Comptroller General shall conduct a study on

the extent to which the amount of each customs user fee imposed

under section 13031(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)) is commensurate with the

level of services provided by the Customs Service relating to the fee

so imposed.

(b) REPORT.—Not later than 120 days after the date of the enactment of this Act, the Comptroller General shall submit to the Committee on Ways and Means of the House of Representatives and

the Committee on Finance of the Senate a report in classified form

containing—

(1) the results of the study conducted under subsection (a);

and

(2) recommendations for the appropriate amount of the customs user fees if such results indicate that the fees are not

commensurate with the level of services provided by the Customs Service.

SEC. 127. FEES FOR CUSTOMS INSPECTIONS AT EXPRESS COURIER FACILITIES.

(a) IN GENERAL.—Section 13031(b)(9) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)) is

amended as follows:

(1) In subparagraph (A)—

(A) in the matter preceding clause (i), by striking ‘‘the

processing of merchandise that is informally entered or released’’ and inserting ‘‘the processing of letters, documents,

records, shipments, merchandise, or any other item that is

valued at an amount under $2,000 (or such higher amount

as the Secretary may set by regulation pursuant to section

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498 of the Tariff Act of 1930), whether or not such items

are informally entered or released (except items entered or

released for immediate exportation),’’; and

(B) in clause (ii) to read as follows:

‘‘(ii) In the case of an express consignment carrier facility or centralized hub facility, $.66 per individual airway

bill or bill of lading.’’.

(2) By redesignating subparagraph (B) as subparagraph (C)

and inserting after subparagraph (A) the following:

‘‘(B)(i) For fiscal year 2004 and subsequent fiscal years, the

Secretary of the Treasury may adjust (not more than once per

fiscal year) the amount described in subparagraph (A)(ii) to not

less than $.35 but not more than $1.00 per individual airway

bill or bill of lading. The Secretary shall provide notice in the

Federal Register of a proposed adjustment under the preceding

sentence and the reasons therefor and shall allow for public

comment on the proposed adjustment.

‘‘(ii) The payment required by subparagraph (A)(ii) shall be

the only payment required for reimbursement of the Customs

Service in connection with the processing of an individual airway bill or bill of lading in accordance with such subparagraph, except that the Customs Service may charge a fee to

cover expenses of the Customs Service for adequate office

space, equipment, furnishings, supplies, and security.

‘‘(iii)(I) The payment required by subparagraph (A)(ii) and

clause (ii) shall be paid on a quarterly basis to the Customs

Service in accordance with regulations prescribed by the Secretary of the Treasury.

‘‘(II) 50 percent of the amount of payments received under

subparagraph (A)(ii) and clause (ii) shall, in accordance with

section 524 of the Tariff Act of 1930, be deposited as a refund

to the appropriation for the amount paid out of that appropriation for the costs incurred in providing services to express consignment carrier facilities or centralized hub facilities.

Amounts deposited in accordance with the preceding sentence

shall be available until expended for the provision of customs

services to express consignment carrier facilities or centralized

hub facilities.

‘‘(III) Notwithstanding section 524 of the Tariff Act of 1930,

the remaining 50 percent of the amount of payments received

under subparagraph (A)(ii) and clause (ii) shall be paid to the

Secretary of the Treasury, which is in lieu of the payment of

fees under subsection (a)(10) of this section.’’.

(b) EFFECTIVE DATE.—The amendments made by subsection (a)

take effect on October 1, 2002.

SEC. 128. NATIONAL CUSTOMS AUTOMATION PROGRAM.

Section 411(b) of the Tariff Act of 1930 (19 U.S.C. 1411(b)) is

amended by striking the second sentence and inserting the following: ‘‘The Secretary may, by regulation, require the electronic

submission of information described in subsection (a) or any other

information required to be submitted to the Customs Service separately pursuant to this subpart.’’.

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Subtitle D—Antiterrorism Provisions

SEC. 141. IMMUNITY FOR UNITED STATES OFFICIALS THAT ACT IN

GOOD FAITH.

(a) IMMUNITY.—Section 3061 of the Revised Statutes (19 U.S.C.

482) is amended—

(1) by striking ‘‘Any of the officers’’ and inserting ‘‘(a) Any of

the officers’’; and

(2) by adding at the end the following:

‘‘(b) Any officer or employee of the United States conducting a

search of a person pursuant to subsection (a) shall not be held liable for any civil damages as a result of such search if the officer

or employee performed the search in good faith.’’.

(b) REQUIREMENT TO POST POLICY AND PROCEDURES FOR

SEARCHES OF PASSENGERS.—Not later than 30 days after the date

of the enactment of this Act, the Commissioner of the Customs

Service shall ensure that at each Customs border facility appropriate notice is posted that provides a summary of the policy and

procedures of the Customs Service for searching passengers, including a statement of the policy relating to the prohibition on the conduct of profiling of passengers based on gender, race, color, religion,

or ethnic background.

SEC. 142. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS OF ENTRY,

OR STAFFING OF THE CUSTOMS SERVICE.

Section 318 of the Tariff Act of 1930 (19 U.S.C. 1318) is

amended—

(1) by striking ‘‘Whenever the President’’ and inserting ‘‘(a)

Whenever the President’’; and

(2) by adding at the end the following:

‘‘(b)(1) Notwithstanding any other provision of law, the Secretary

of the Treasury, when necessary to respond to a national emergency declared under the National Emergencies Act (50 U.S.C.

1601 et seq.) or to a specific threat to human life or national interests, is authorized to take the following actions on a temporary

basis:

‘‘(A) Eliminate, consolidate, or relocate any office or port of

entry of the Customs Service.

‘‘(B) Modify hours of service, alter services rendered at any

location, or reduce the number of employees at any location.

‘‘(C) Take any other action that may be necessary to directly

respond to the national emergency or specific threat.

‘‘(2) Notwithstanding any other provision of law, the Commissioner of Customs, when necessary to respond to a specific threat

to human life or national interests, is authorized to close temporarily any Customs office or port of entry or take any other lesser

action that may be necessary to respond to the specific threat.

‘‘(3) The Secretary of the Treasury or the Commissioner of Customs, as the case may be, shall notify the Committee on Ways and

Means of the House of Representatives and the Committee on Finance of the Senate not later than 72 hours after taking any action

under paragraph (1) or (2).’’.

SEC. 143. MANDATORY ADVANCED ELECTRONIC INFORMATION FOR

CARGO AND PASSENGERS.

(a) CARGO INFORMATION.—

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(1) IN GENERAL.—Section 431(b) of the Tariff Act of 1930 (19

U.S.C. 1431(b)) is amended— (A) in the first sentence, by striking ‘‘Any manifest’’ and

inserting ‘‘(1) Any manifest’’; and

(B) by adding at the end the following: ‘‘(2)(A) In addition to any other requirement under this section,

for each land, air, or vessel carrier required to make entry under

the customs laws of the United States, the pilot, the master, operator, or owner of such carrier (or the authorized agent of such operator or owner) shall provide by electronic transmission cargo manifest information in advance of such entry in such manner, time,

and form as prescribed under regulations by the Secretary. The

Secretary may exclude any class of land, air, or vessel carrier for

which the Secretary concludes the requirements of this subparagraph are not necessary. ‘‘(B) The Secretary shall cooperate with other appropriate Federal departments and agencies for the purpose of providing to such

departments and agencies as soon as practicable cargo manifest information obtained pursuant to subparagraph (A). In carrying out

the preceding sentence, the Secretary, to the maximum extent

practicable, shall protect the privacy and property rights with respect to the cargo involved.’’.

(2) CONFORMING AMENDMENTS.—Subparagraphs (A) and (C)

of section 431(d)(1) of such Act are each amended by inserting

before the semicolon ‘‘or subsection (b)(2)’’.

(b) PASSENGER INFORMATION.—Part II of title IV of the Tariff Act

of 1930 (19 U.S.C. 1431 et seq.) is amended by inserting after section 431 the following:

‘‘SEC. 432. PASSENGER AND CREW INFORMATION REQUIRED FOR

LAND, AIR, OR VESSEL CARRIERS.

‘‘(a) IN GENERAL.—For every person arriving or departing on a

land, air, or vessel carrier required to make entry or obtain clearance under the customs laws of the United States, the pilot, the

master, operator, or owner of such carrier (or the authorized agent

of such operator or owner) shall provide by electronic transmission

information described in subsection (b) in advance of such entry or

clearance in such manner, time, and form as prescribed under regulations by the Secretary.

‘‘(b) INFORMATION DESCRIBED.—The information described in this

subsection shall include for each person described in subsection (a),

if applicable, the person’s—

‘‘(1) full name;

‘‘(2) date of birth and citizenship;

‘‘(3) gender;

‘‘(4) passport number and country of issuance;

‘‘(5) United States visa number or resident alien card number;

‘‘(6) passenger name record; and

‘‘(7) such additional information that the Secretary, by regulation, determines is reasonably necessary to ensure aviation

and maritime safety pursuant to the laws enforced or administered by the Customs Service.

‘‘(c) SHARING OF INFORMATION.—The Secretary shall cooperate

with other appropriate Federal departments and agencies for the

purpose of providing to such departments and agencies as soon as

13

practicable electronic transmission information obtained pursuant

to subsection (a). In carrying out the preceding sentence, the Secretary, to the maximum extent practicable, shall protect the privacy rights of the person with respect to which the information relates.’’.

(c) DEFINITION.—Section 401 of the Tariff Act of 1930 (19 U.S.C.

1401) is amended by adding at the end the following:

‘‘(t) The term ‘land, air, or vessel carrier’ means a land, air, or

vessel carrier, as the case may be, that transports goods or passengers for payment or other consideration, including money or

services rendered.’’.

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

shall take effect beginning 45 days after the date of the enactment

of this Act.

SEC. 144. BORDER SEARCH AUTHORITY FOR CERTAIN CONTRABAND

IN OUTBOUND MAIL.

The Tariff Act of 1930 is amended by inserting after section 582

the following:

‘‘SEC. 583. EXAMINATION OF OUTBOUND MAIL.

‘‘(a) EXAMINATION.—

‘‘(1) IN GENERAL.—For purposes of ensuring compliance with

the Customs laws of the United States and other laws enforced

by the Customs Service, including the provisions of law described in paragraph (2), a Customs officer may, subject to the

provisions of this section, stop and search at the border, without a search warrant, mail of domestic origin transmitted for

export by the United States Postal Service and foreign mail

transiting the United States that is being imported or exported

by the United States Postal Service.

‘‘(2) PROVISIONS OF LAW DESCRIBED.—The provisions of law

described in this paragraph are the following:

‘‘(A) Section 5316 of title 31, United States Code (relating to reports on exporting and importing monetary instruments).

‘‘(B) Sections 1461, 1463, 1465, and 1466 and chapter

110 of title 18, United States Code (relating to obscenity

and child pornography).

‘‘(C) Section 1003 of the Controlled Substances Import

and Export Act (21 U.S.C. 953; relating to exportation of

controlled substances).

‘‘(D) The Export Administration Act of 1979 (50 U.S.C.

app. 2401 et seq.).

‘‘(E) Section 38 of the Arms Export Control Act (22

U.S.C. 2778).

‘‘(F) The International Emergency Economic Powers Act

(50 U.S.C. 1701 et seq.).

‘‘(b) SEARCH OF MAIL NOT SEALED AGAINST INSPECTION AND

OTHER MAIL.—Mail not sealed against inspection under the postal

laws and regulations of the United States, mail which bears a customs declaration, and mail with respect to which the sender or addressee has consented in writing to search, may be searched by a

Customs officer. ‘‘(c) SEARCH OF MAIL SEALED AGAINST INSPECTION.—(1) Mail

sealed against inspection under the postal laws and regulations of

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the United States may be searched by a Customs officer, subject to

paragraph (2), upon reasonable cause to suspect that such mail

contains one or more of the following:

‘‘(A) Monetary instruments, as defined in section 1956 of title

18, United States Code.

‘‘(B) A weapon of mass destruction, as defined in section

2332a(b) of title 18, United States Code.

‘‘(C) A drug or other substance listed in schedule I, II, III,

or IV in section 202 of the Controlled Substances Act (21

U.S.C. 812).

‘‘(D) National defense and related information transmitted in

violation of any of sections 793 through 798 of title 18, United

States Code.

‘‘(E) Merchandise mailed in violation of section 1715 or 1716

of title 18, United States Code.

‘‘(F) Merchandise mailed in violation of any provision of

chapter 71 (relating to obscenity) or chapter 110 (relating to

sexual exploitation and other abuse of children) of title 18,

United States Code.

‘‘(G) Merchandise mailed in violation of the Export Administration Act of 1979 (50 U.S.C. app. 2401 et seq.).

‘‘(H) Merchandise mailed in violation of section 38 of the

Arms Export Control Act (22 U.S.C. 2778).

‘‘(I) Merchandise mailed in violation of the International

Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).

‘‘(J) Merchandise mailed in violation of the Trading with the

Enemy Act (50 U.S.C. app. 1 et seq.).

‘‘(K) Merchandise subject to any other law enforced by the

Customs Service.

‘‘(2) No person acting under authority of paragraph (1) shall read,

or authorize any other person to read, any correspondence contained in mail sealed against inspection unless prior to so

reading—

‘‘(A) a search warrant has been issued pursuant to Rule 41,

Federal Rules of Criminal Procedure; or

‘‘(B) the sender or addressee has given written authorization

for such reading.’’.

SEC. 145. AUTHORIZATION OF APPROPRIATIONS FOR REESTABLISHMENT OF CUSTOMS OPERATIONS IN NEW YORK CITY.

(a) AUTHORIZATION OF APPROPRIATIONS.—

(1) IN GENERAL.—There is authorized to be appropriated for

the reestablishment of operations of the Customs Service in

New York, New York, such sums as may be necessary for fiscal

year 2002.

(2) OPERATIONS DESCRIBED.—The operations referred to in

paragraph (1) include, but are not limited to, the following:

(A) Operations relating to the Port Director of New York

City, the New York Customs Management Center (including the Director of Field Operations), and the Special

Agent-In-Charge for New York.

(B) Commercial operations, including textile enforcement

operations and salaries and expenses of—

(i) trade specialists who determine the origin and

value of merchandise;

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(ii) analysts who monitor the entry data into the

United States of textiles and textile products; and

(iii) Customs officials who work with foreign governments to examine textile makers and verify entry information.

(b) AVAILABILITY.—Amounts appropriated pursuant to the authorization of appropriations under subsection (a) are authorized to

remain available until expended.

Subtitle E—Textile Transshipment

Provisions

SEC. 151. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONITORING BY

CUSTOMS SERVICE.

(a) GAO AUDIT.—The Comptroller General of the United States

shall conduct an audit of the system established and carried out by

the Customs Service to monitor textile transshipment.

(b) REPORT.—Not later than 9 months after the date of enactment of this Act, the Comptroller General shall submit to the Committee on Ways and Means of the House of Representatives and

Committee on Finance of the Senate a report that contains the results of the study conducted under subsection (a), including recommendations for improvements to the transshipment monitoring

system if applicable.

(c) TRANSSHIPMENT DESCRIBED.—Transshipment within the

meaning of this section has occurred when preferential treatment

under any provision of law has been claimed for a textile or apparel

article on the basis of material false information concerning the

country of origin, manufacture, processing, or assembly of the article or any of its components. For purposes of the preceding sentence, false information is material if disclosure of the true information would mean or would have meant that the article is or was

ineligible for preferential treatment under the provision of law in

question.

SEC. 152. AUTHORIZATION OF APPROPRIATIONS FOR TEXTILE TRANSSHIPMENT ENFORCEMENT OPERATIONS.

(a) AUTHORIZATION OF APPROPRIATIONS.—

(1) IN GENERAL.—There is authorized to be appropriated for

textile transshipment enforcement operations of the Customs

Service $9,500,000 for fiscal year 2002.

(2) AVAILABILITY.—Amounts appropriated pursuant to the

authorization of appropriations under paragraph (1) are authorized to remain available until expended.

(b) USE OF FUNDS.—Of the amount appropriated pursuant to the

authorization of appropriations under subsection (a), the following

amounts are authorized to be made available for the following purposes:

(1) IMPORT SPECIALISTS.—$1,463,000 for 21 Customs import

specialists to be assigned to selected ports for documentation

review to support detentions and exclusions and 1 additional

Customs import specialist assigned to the Customs headquarters textile program to administer the program and provide oversight.

16

(2) INSPECTORS.—$652,080 for 10 Customs inspectors to be

assigned to selected ports to examine targeted high-risk shipments.

(3) INVESTIGATORS.—(A) $1,165,380 for 10 investigators to be

assigned to selected ports to investigate instances of smuggling, quota and trade agreement circumvention, and use of

counterfeit visas to enter inadmissible goods. (B) $149,603 for 1 investigator to be assigned to Customs

headquarters textile program to coordinate and ensure implementation of textile production verification team results from

an investigation perspective.

(4) INTERNATIONAL TRADE SPECIALISTS.—$226,500 for 3 international trade specialists to be assigned to Customs headquarters to be dedicated to illegal textile transshipment policy

issues and other free trade agreement enforcement issues.

(5) PERMANENT IMPORT SPECIALISTS FOR HONG KONG.— $500,000 for 2 permanent import specialist positions and

$500,000 for 2 investigators to be assigned to Hong Kong to

work with Hong Kong and other government authorities in

Southeast Asia to assist such authorities pursue proactive enforcement of bilateral trade agreements.

(6) VARIOUS PERMANENT TRADE POSITIONS.—$3,500,000 for

the following:

(A) 2 permanent positions to be assigned to the Customs

attache ́ office in Central America to address trade enforcement issues for that region.

(B) 2 permanent positions to be assigned to the Customs

attache ́ office in South Africa to address trade enforcement

issues pursuant to the African Growth and Opportunity

Act (title I of Public Law 106–200).

(C) 4 permanent positions to be assigned to the Customs

attache ́ office in Mexico to address the threat of illegal textile transshipment through Mexico and other related

issues under the North American Free Trade Agreement

Act.

(D) 2 permanent positions to be assigned to the Customs

attache ́ office in Seoul, South Korea, to address the trade

issues in the geographic region.

(E) 2 permanent positions to be assigned to the proposed

Customs attache ́ office in New Delhi, India, to address the

threat of illegal textile transshipment and other trade enforcement issues.

(F) 2 permanent positions to be assigned to the Customs

attache ́ office in Rome, Italy, to address trade enforcement

issues in the geographic region, including issues under free

trade agreements with Jordan and Israel.

(7) ATTORNEYS.—$179,886 for 2 attorneys for the Office of

the Chief Counsel of the Customs Service to pursue cases regarding illegal textile transshipment.

(8) AUDITORS.—$510,000 for 6 Customs auditors to perform

internal control reviews and document and record reviews of

suspect importers.

(9) ADDITIONAL TRAVEL FUNDS.—$250,000 for deployment of

additional textile production verification teams to sub-Saharan

Africa.

17

(10) TRAINING.—(A) $75,000 for training of Customs personnel.

(B) $200,000 for training for foreign counterparts in risk

management analytical techniques and for teaching factory inspection techniques, model law Development, and enforcement

techniques.

(11) OUTREACH.—$60,000 for outreach efforts to United

States importers.

SEC. 153. IMPLEMENTATION OF THE AFRICAN GROWTH AND OPPORTUNITY ACT.

Of the amount made available for fiscal year 2002 under section

301(b)(2)(A) of the Customs Procedural Reform and Simplification

Act of 1978 (19 U.S.C. 2075(b)(2)(A)), as amended by section

101(b)(1) of this Act, $1,317,000 shall be available until expended

for the Customs Service to provide technical assistance to help subSaharan Africa countries develop and implement effective visa and

anti-transshipment systems as required by the African Growth and

Opportunity Act (title I of Public Law 106–200), as follows:

(1) TRAVEL FUNDS.—$600,000 for import specialists, special

agents, and other qualified Customs personnel to travel to subSaharan Africa countries to provide technical assistance in developing and implementing effective visa and anti-transshipment systems.

(2) IMPORT SPECIALISTS.—$266,000 for 4 import specialists to

be assigned to Customs headquarters to be dedicated to providing technical assistance to sub-Saharan African countries

for developing and implementing effective visa and anti-transshipment systems.

(3) DATA RECONCILIATION ANALYSTS.—$151,000 for 2 data

reconciliation analysts to review apparel shipments.

(4) SPECIAL AGENTS.—$300,000 for 2 special agents to be assigned to Customs headquarters to be available to provide

technical assistance to sub-Saharan African countries in the

performance of investigations and other enforcement initiatives.

TITLE II—OFFICE OF THE UNITED

STATES TRADE REPRESENTATIVE

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

(a) IN GENERAL.—Section 141(g)(1) of the Trade Act of 1974 (19

U.S.C. 2171(g)(1)) is amended—

(1) in subparagraph (A)—

(A) in the matter preceding clause (i), by striking ‘‘not to

exceed’’;

(B) in clause (i) to read as follows:

‘‘(i) $30,000,000 for fiscal year 2002.’’;

(C) in clause (ii) to read as follows:

‘‘(ii) $32,300,000 for fiscal year 2003.’’; and

(D) by adding at the end the following:

‘‘(iii) $33,108,000 for fiscal year 2004.’’; and

(2) in subparagraph (B)—

(A) in clause (i), by adding ‘‘and’’ at the end;

(B) by striking clause (ii); and

18

(C) by redesignating clause (iii) as clause (ii).

(b) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS.—Section

141(g) of the Trade Act of 1974 (19 U.S.C. 2171(g)) is amended by

adding at the end the following:

‘‘(3) By not later than the date on which the President submits

to Congress the budget of the United States Government for a fiscal year, the United States Trade Representative shall submit to

the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate the projected

amount of funds for the succeeding fiscal year that will be necessary for the Office to carry out its functions.’’.

(c) ADDITIONAL STAFF FOR OFFICE OF ASSISTANT U.S. TRADE REPRESENTATIVE FOR CONGRESSIONAL AFFAIRS.—

(1) IN GENERAL.—There is authorized to be appropriated

such sums as may be necessary for fiscal year 2002 for the salaries and expenses of two additional legislative specialist employee positions within the Office of the Assistant United

States Trade Representative for Congressional Affairs.

(2) AVAILABILITY.—Amounts appropriated pursuant to the

authorization of appropriations under paragraph (1) are authorized to remain available until expended.

TITLE III—UNITED STATES

INTERNATIONAL TRADE COMMISSION

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

(a) IN GENERAL.—Section 330(e)(2)(A) of the Tariff Act of 1930

(19 U.S.C. 1330(e)(2)) is amended—

(1) in clause (i) to read as follows:

‘‘(i) $51,440,000 for fiscal year 2002.’’;

(2) in clause (ii) to read as follows:

‘‘(ii) $54,000,000 for fiscal year 2003.’’; and

(3) by adding at the end the following:

‘‘(iii) $57,240,000 for fiscal year 2004.’’.

(b) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS.—Section

330(e) of the Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is amended

by adding at the end the following:

‘‘(4) By not later than the date on which the President submits

to Congress the budget of the United States Government for a fiscal year, the Commission shall submit to the Committee on Ways

and Means of the House of Representatives and the Committee on

Finance of the Senate the projected amount of funds for the succeeding fiscal year that will be necessary for the Commission to

carry out its functions.’’.

TITLE IV—OTHER TRADE PROVISIONS

SEC. 401. INCREASE IN AGGREGATE VALUE OF ARTICLES EXEMPT

FROM DUTY ACQUIRED ABROAD BY UNITED STATES RESIDENTS.

(a) IN GENERAL.—Subheading 9804.00.65 of the Harmonized Tariff Schedule of the United States is amended in the article description column by striking ‘‘$400’’ and inserting ‘‘$800’’.

19

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect 90 days after the date of the enactment of this Act.

SEC. 402. REGULATORY AUDIT PROCEDURES.

Section 509(b) of the Tariff Act of 1930 (19 U.S.C. 1509(b)) is

amended by adding at the end the following: ‘‘(6)(A) If during the course of any audit concluded under this

subsection, the Customs Service identifies overpayments of duties or fees or over-declarations of quantities or values that are

within the time period and scope of the audit that the Customs

Service has defined, then in calculating the loss of revenue or

monetary penalties under section 592, the Customs Service

shall treat the overpayments or over-declarations on finally liquidated entries as an offset to any underpayments or underdeclarations also identified on finally liquidated entries if such

overpayments or over-declarations were not made by the person being audited for the purpose of violating any provision of

law. ‘‘(B) Nothing in this paragraph shall be construed to authorize a refund not otherwise authorized under section 520.’’. Amend the title so as to read: ‘‘A bill to authorize appropriations

for fiscal years 2002 through 2004 for the United States Customs

Service for antiterrorism, drug interdiction, and other operations,

for the Office of the United States Trade Representative, for the

United States International Trade Commission, and for other purposes.

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE RANGEL OF

NEW YORK, OR A DESIGNEE, DEBATABLE FOR 60 MINUTES

Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Customs Border Security Act of

2002’’.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—UNITED STATES CUSTOMS SERVICE

Subtitle A—Drug Enforcement and Other Noncommercial and Commercial

Operations

Sec. 101. Authorization of appropriations for noncommercial operations, commercial

operations, and air and marine interdiction.

Sec. 102. Antiterrorist and illicit narcotics detection equipment for the United

States-Mexico border, United States-Canada border, and Florida and

the Gulf Coast seaports.

Sec. 103. Compliance with performance plan requirements.

Subtitle B—Child Cyber-Smuggling Center of the Customs Service

Sec. 111. Authorization of appropriations for program to prevent child pornography/

child sexual exploitation.

Subtitle C—Miscellaneous Provisions

Sec. 121. Additional Customs Service officers for United States-Canada border.

Sec. 122. Study and report relating to personnel practices of the Customs Service.

Sec. 123. Study and report relating to accounting and auditing procedures of the

Customs Service.

20

Sec. 124. Establishment and implementation of cost accounting system; reports.

Sec. 125. Study and report relating to timeliness of prospective rulings.

Sec. 126. Study and report relating to Customs user fees.

Sec. 127. Fees for Customs inspections at express courier facilities.

Sec. 128. National Customs Automation Program.

Subtitle D—Antiterrorism Provisions

Sec. 141. Exclusive remedy for personal search claims.

Sec. 142. Emergency adjustments to offices, ports of entry, or staffing of the Customs Service.

Sec. 143. Mandatory advanced electronic information for cargo and passengers.

Sec. 144. Authorization of appropriations for reestablishment of Customs operations in New York City.

Subtitle E—Textile Transshipment Provisions

Sec. 151. GAO audit of textile transshipment monitoring by Customs Service.

Sec. 152. Authorization of appropriations for textile transshipment enforcement operations.

Sec. 153. Implementation of the African Growth and Opportunity Act.

TITLE II—OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

Sec. 201. Authorization of appropriations.

TITLE III—UNITED STATES INTERNATIONAL TRADE COMMISSION

Sec. 301. Authorization of appropriations.

TITLE IV—OTHER TRADE PROVISIONS

Sec. 401. Increase in aggregate value of articles exempt from duty acquired abroad

by United States residents.

Sec. 402. Regulatory audit procedures.

TITLE I—UNITED STATES CUSTOMS

SERVICE

Subtitle A—Drug Enforcement and Other

Noncommercial and Commercial Operations

SEC. 101. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMERCIAL OPERATIONS, COMMERCIAL OPERATIONS, AND AIR

AND MARINE INTERDICTION.

(a) NONCOMMERCIAL OPERATIONS.—Section 301(b)(1) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C.

2075(b)(1)) is amended—

(1) in subparagraph (A) to read as follows:

‘‘(A) $899,121,000 for fiscal year 2002.’’;

(2) in subparagraph (B) to read as follows:

‘‘(B) $1,365,456,000 for fiscal year 2003.’’; and

(3) by adding at the end the following:

‘‘(C) $1,399,592,400 for fiscal year 2004.’’.

(b) COMMERCIAL OPERATIONS.—

(1) IN GENERAL.—Section 301(b)(2)(A) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C.

2075(b)(2)(A)) is amended—

(A) in clause (i) to read as follows:

‘‘(i) $1,606,068,000 for fiscal year 2002.’’;

(B) in clause (ii) to read as follows:

‘‘(ii) $1,642,602,000 for fiscal year 2003.’’; and

21

(C) by adding at the end the following:

‘‘(iii) $1,683,667,050 for fiscal year 2004.’’.

(2) AUTOMATED COMMERCIAL ENVIRONMENT COMPUTER SYSTEM.—Of the amount made available for each of fiscal years

2002 through 2004 under section 301(b)(2)(A) of the Customs

Procedural Reform and Simplification Act of 1978 (19 U.S.C.

2075(b)(2)(A)), as amended by paragraph (1), $308,000,000

shall be available until expended for each such fiscal year for

the development, establishment, and implementation of the

Automated Commercial Environment computer system.

(3) REPORTS.—Not later than 90 days after the date of the

enactment of this Act, and not later than each subsequent 90-

day period, the Commissioner of Customs shall 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 out in a cost-effective manner and

meets the modernization requirements of title VI of the North

American Free Trade Agreement Implementation Act.

(c) AIR AND MARINE INTERDICTION.—Section 301(b)(3) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C.

2075(b)(3)) is amended—

(1) in subparagraph (A) to read as follows:

‘‘(A) $177,860,000 for fiscal year 2002.’’;

(2) in subparagraph (B) to read as follows:

‘‘(B) $170,829,000 for fiscal year 2003.’’; and

(3) by adding at the end the following:

‘‘(C) $175,099,725 for fiscal year 2004.’’.

(d) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS.—Section

301(a) of the Customs Procedural Reform and Simplification Act of

1978 (19 U.S.C. 2075(a)) is amended by adding at the end the following:

‘‘(3) By not later than the date on which the President submits

to Congress the budget of the United States Government for a fiscal year, the Commissioner of Customs shall submit to the Committee on Ways and Means of the House of Representatives and

the Committee on Finance of the Senate the projected amount of

funds for the succeeding fiscal year that will be necessary for the

operations of the Customs Service as provided for in subsection

(b).’’.

SEC. 102. ANTITERRORIST AND ILLICIT NARCOTICS DETECTION

EQUIPMENT FOR THE UNITED STATES-MEXICO BORDER,

UNITED STATES-CANADA BORDER, AND FLORIDA AND

THE GULF COAST SEAPORTS.

(a) FISCAL YEAR 2002.—Of the amounts made available for fiscal

year 2002 under section 301(b)(1)(A) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as

amended by section 101(a) of this Act, $90,244,000 shall be available until expended for acquisition and other expenses associated

with implementation and deployment of antiterrorist and illicit

narcotics detection equipment along the United States-Mexico border, the United States-Canada border, and Florida and the Gulf

Coast seaports, as follows:

22

(1) UNITED STATES-MEXICO BORDER.—For the United StatesMexico border, the following: (A) $6,000,000 for 8 Vehicle and Container Inspection

Systems (VACIS). (B) $11,200,000 for 5 mobile truck x-rays with transmission and backscatter imaging. (C) $13,000,000 for the upgrade of 8 fixed-site truck xrays from the present energy level of 450,000 electron volts

to 1,000,000 electron volts (1–MeV).

(D) $7,200,000 for 8 1–MeV pallet x-rays. (E) $1,000,000 for 200 portable contraband detectors

(busters) to be distributed among ports where the current

allocations are inadequate. (F) $600,000 for 50 contraband detection kits to be distributed among all southwest border ports based on traffic

volume.

(G) $500,000 for 25 ultrasonic container inspection units

to be distributed among all ports receiving liquid-filled

cargo and to ports with a hazardous material inspection facility. (H) $2,450,000 for 7 automated targeting systems.

(I) $360,000 for 30 rapid tire deflator systems to be distributed to those ports where port runners are a threat. (J) $480,000 for 20 portable Treasury Enforcement Communications Systems (TECS) terminals to be moved

among ports as needed. (K) $1,000,000 for 20 remote watch surveillance camera

systems at ports where there are suspicious activities at

loading docks, vehicle queues, secondary inspection lanes,

or areas where visual surveillance or observation is obscured.

(L) $1,254,000 for 57 weigh-in-motion sensors to be distributed among the ports with the greatest volume of outbound traffic.

(M) $180,000 for 36 AM traffic information radio stations, with 1 station to be located at each border crossing.

(N) $1,040,000 for 260 inbound vehicle counters to be installed at every inbound vehicle lane.

(O) $950,000 for 38 spotter camera systems to counter

the surveillance of customs inspection activities by persons

outside the boundaries of ports where such surveillance activities are occurring.

(P) $390,000 for 60 inbound commercial truck transponders to be distributed to all ports of entry.

(Q) $1,600,000 for 40 narcotics vapor and particle detectors to be distributed to each border crossing.

(R) $400,000 for license plate reader automatic targeting

software to be installed at each port to target inbound vehicles.

(2) UNITED STATES-CANADA BORDER.—For the United StatesCanada border, the following: (A) $3,000,000 for 4 Vehicle and Container Inspection

Systems (VACIS). (B) $8,800,000 for 4 mobile truck x-rays with transmission and backscatter imaging.

23

(C) $3,600,000 for 4 1–MeV pallet x-rays.

(D) $250,000 for 50 portable contraband detectors (busters) to be distributed among ports where the current allocations are inadequate.

(E) $300,000 for 25 contraband detection kits to be distributed among ports based on traffic volume.

(F) $240,000 for 10 portable Treasury Enforcement Communications Systems (TECS) terminals to be moved

among ports as needed.

(G) $400,000 for 10 narcotics vapor and particle detectors to be distributed to each border crossing based on traffic volume.

(3) FLORIDA AND GULF COAST SEAPORTS.—For Florida and the

Gulf Coast seaports, the following:

(A) $4,500,000 for 6 Vehicle and Container Inspection

Systems (VACIS).

(B) $11,800,000 for 5 mobile truck x-rays with transmission and backscatter imaging.

(C) $7,200,000 for 8 1–MeV pallet x-rays.

(D) $250,000 for 50 portable contraband detectors (busters) to be distributed among ports where the current allocations are inadequate.

(E) $300,000 for 25 contraband detection kits to be distributed among ports based on traffic volume.

(b) FISCAL YEAR 2003.—Of the amounts made available for fiscal

year 2003 under section 301(b)(1)(B) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(B)), as

amended by section 101(a) of this Act, $9,000,000 shall be available

until expended for the maintenance and support of the equipment

and training of personnel to maintain and support the equipment

described in subsection (a).

(c) ACQUISITION OF TECHNOLOGICALLY SUPERIOR EQUIPMENT;

TRANSFER OF FUNDS.—

(1) IN GENERAL.—The Commissioner of Customs may use

amounts made available for fiscal year 2002 under section

301(b)(1)(A) of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as amended by section 101(a) of this Act, for the acquisition of equipment other

than the equipment described in subsection (a) if such other

equipment—

(A)(i) is technologically superior to the equipment described in subsection (a); and

(ii) will achieve at least the same results at a cost that

is the same or less than the equipment described in subsection (a); or

(B) can be obtained at a lower cost than the equipment

described in subsection (a).

(2) TRANSFER OF FUNDS.—Notwithstanding any other provision of this section, the Commissioner of Customs may reallocate an amount not to exceed 10 percent of—

(A) the amount specified in any of subparagraphs (A)

through (R) of subsection (a)(1) for equipment specified in

any other of such subparagraphs (A) through (R);

24

(B) the amount specified in any of subparagraphs (A)

through (G) of subsection (a)(2) for equipment specified in

any other of such subparagraphs (A) through (G); and

(C) the amount specified in any of subparagraphs (A)

through (E) of subsection (a)(3) for equipment specified in

any other of such subparagraphs (A) through (E).

SEC. 103. COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS.

As part of the annual performance plan for each of the fiscal

years 2002 and 2003 covering each program activity set forth in the

budget of the United States Customs Service, as required under

section 1115 of title 31, United States Code, the Commissioner of

Customs shall establish performance goals, performance indicators,

and comply with all other requirements contained in paragraphs

(1) through (6) of subsection (a) of such section with respect to each

of the activities to be carried out pursuant to section 102.

Subtitle B—Child Cyber-Smuggling Center

of the Customs Service

SEC. 111. AUTHORIZATION OF APPROPRIATIONS FOR PROGRAM TO

PREVENT CHILD PORNOGRAPHY/CHILD SEXUAL EXPLOITATION.

(a) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to

be appropriated to the Customs Service $10,000,000 for fiscal year

2002 to carry out the program to prevent child pornography/child

sexual exploitation established by the Child Cyber-Smuggling Center of the Customs Service.

(b) USE OF AMOUNTS FOR CHILD PORNOGRAPHY CYBER TIPLINE.—

Of the amount appropriated under subsection (a), the Customs

Service shall provide 3.75 percent of such amount to the National

Center for Missing and Exploited Children for the operation of the

child pornography cyber tipline of the Center and for increased

public awareness of the tipline.

Subtitle C—Miscellaneous Provisions

SEC. 121. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR UNITED

STATES-CANADA BORDER.

Of the amount made available for fiscal year 2002 under paragraphs (1) and (2)(A) of section 301(b) of the Customs Procedural

Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)), as

amended by section 101 of this Act, $28,300,000 shall be available

until expended for the Customs Service to hire approximately 285

additional Customs Service officers to address the needs of the offices and ports along the United States-Canada border.

SEC. 122. STUDY AND REPORT RELATING TO PERSONNEL PRACTICES

OF THE CUSTOMS SERVICE.

(a) STUDY.—The Commissioner of Customs shall conduct a study

of current personnel practices of the Customs Service, including an

overview of performance standards and the effect and impact of the

collective bargaining process on drug interdiction efforts of the Customs Service and a comparison of duty rotation policies of the CusVerDate 11-MAY-2000 06:42 May 22, 2002 Jkt 099008 PO 00000 Frm 00024 Fmt 6659 Sfmt 6602 E:\HR\OC\HR482.XXX pfrm12 PsN: HR482
25

toms Service and other Federal agencies that employ similarly-situated personnel.

(b) REPORT.—Not later than 120 days after the date of the enactment of this Act, the Commissioner of Customs shall submit to the

Committee on Ways and Means of the House of Representatives

and the Committee on Finance of the Senate a report containing

the results of the study conducted under subsection (a).

SEC. 123. STUDY AND REPORT RELATING TO ACCOUNTING AND AUDITING PROCEDURES OF THE CUSTOMS SERVICE.

(a) STUDY.—(1) The Commissioner of Customs shall conduct a

study of actions by the Customs Service to ensure that appropriate

training is being provided to Customs Service personnel who are

responsible for financial auditing of importers.

(2) In conducting the study, the Commissioner—

(A) shall specifically identify those actions taken to comply

with provisions of law that protect the privacy and trade secrets of importers, such as section 552(b) of title 5, United

States Code, and section 1905 of title 18, United States Code;

and

(B) shall provide for public notice and comment relating to

verification of the actions described in subparagraph (A).

(b) REPORT.—Not later than 6 months after the date of the enactment of this Act, the Commissioner of Customs shall submit to the

Committee on Ways and Means of the House of Representatives

and the Committee on Finance of the Senate a report containing

the results of the study conducted under subsection (a).

SEC. 124. ESTABLISHMENT AND IMPLEMENTATION OF COST ACCOUNTING SYSTEM; REPORTS.

(a) ESTABLISHMENT AND IMPLEMENTATION.—

(1) IN GENERAL.—Not later than September 30, 2003, the

Commissioner of Customs shall, in accordance with the audit

of the Customs Service’s fiscal years 2000 and 1999 financial

statements (as contained in the report of the Office of the Inspector General of the Department of the Treasury issued on

February 23, 2001), establish and implement a cost accounting

system for expenses incurred in both commercial and noncommercial operations of the Customs Service.

(2) ADDITIONAL REQUIREMENT.—The cost accounting system

described in paragraph (1) shall provide for an identification of

expenses based on the type of operation, the port at which the

operation took place, the amount of time spent on the operation by personnel of the Customs Service, and an identification of expenses based on any other appropriate classification

necessary to provide for an accurate and complete accounting

of the expenses.

(b) REPORTS.—Beginning on the date of the enactment of this Act

and ending on the date on which the cost accounting system described in subsection (a) is fully implemented, the Commissioner of

Customs shall prepare and submit to Congress on a quarterly basis

a report on the progress of implementing the cost accounting system pursuant to subsection (a).

26

SEC. 125. STUDY AND REPORT RELATING TO TIMELINESS OF PROSPECTIVE RULINGS.

(a) STUDY.—The Comptroller General shall conduct a study on

the extent to which the Office of Regulations and Rulings of the

Customs Service has made improvements to decrease the amount

of time to issue prospective rulings from the date on which a request for the ruling is received by the Customs Service.

(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to the Committee on Ways and Means of the House of Representatives and

the Committee on Finance of the Senate a report containing the results of the study conducted under subsection (a).

(c) DEFINITION.—In this section, the term ‘‘prospective ruling’’ means a ruling that is requested by an importer on goods that are

proposed to be imported into the United States and that relates to

the proper classification, valuation, or marking of such goods.

SEC. 126. STUDY AND REPORT RELATING TO CUSTOMS USER FEES.

(a) STUDY.—The Comptroller General shall conduct a study on

the extent to which the amount of each customs user fee imposed

under section 13031(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)) is commensurate with the

level of services provided by the Customs Service relating to the fee

so imposed.

(b) REPORT.—Not later than 120 days after the date of the enactment of this Act, the Comptroller General shall submit to the Committee on Ways and Means of the House of Representatives and

the Committee on Finance of the Senate a report in classified form

containing— (1) the results of the study conducted under subsection (a);

and

(2) recommendations for the appropriate amount of the customs user fees if such results indicate that the fees are not

commensurate with the level of services provided by the Customs Service.

SEC. 127. FEES FOR CUSTOMS INSPECTIONS AT EXPRESS COURIER FACILITIES.

(a) IN GENERAL.—Section 13031(b)(9) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)) is

amended as follows:

(1) In subparagraph (A)—

(A) in the matter preceding clause (i), by striking ‘‘the

processing of merchandise that is informally entered or released’’ and inserting ‘‘the processing of letters, documents,

records, shipments, merchandise, or any other item that is

valued at an amount under $2,000 (or such higher amount

as the Secretary may set by regulation pursuant to section

498 of the Tariff Act of 1930), whether or not such items

are informally entered or released (except items entered or

released for immediate exportation),’’; and

(B) in clause (ii) to read as follows:

‘‘(ii) In the case of an express consignment carrier facility or centralized hub facility, $.66 per individual airway

bill or bill of lading.’’.

(2) By redesignating subparagraph (B) as subparagraph (C)

and inserting after subparagraph (A) the following:

27

‘‘(B)(i) For fiscal year 2004 and subsequent fiscal years, the

Secretary of the Treasury may adjust (not more than once per

fiscal year) the amount described in subparagraph (A)(ii) to not

less than $.35 but not more than $1.00 per individual airway

bill or bill of lading. The Secretary shall provide notice in the

Federal Register of a proposed adjustment under the preceding

sentence and the reasons therefor and shall allow for public

comment on the proposed adjustment. ‘‘(ii) The payment required by subparagraph (A)(ii) shall be

the only payment required for reimbursement of the Customs

Service in connection with the processing of an individual airway bill or bill of lading in accordance with such subparagraph, except that the Customs Service may charge a fee to

cover expenses of the Customs Service for adequate office

space, equipment, furnishings, supplies, and security. ‘‘(iii)(I) The payment required by subparagraph (A)(ii) and

clause (ii) shall be paid on a quarterly basis to the Customs

Service in accordance with regulations prescribed by the Secretary of the Treasury.

‘‘(II) 50 percent of the amount of payments received under

subparagraph (A)(ii) and clause (ii) shall, in accordance with

section 524 of the Tariff Act of 1930, be deposited as a refund

to the appropriation for the amount paid out of that appropriation for the costs incurred in providing services to express consignment carrier facilities or centralized hub facilities.

Amounts deposited in accordance with the preceding sentence

shall be available until expended for the provision of customs

services to express consignment carrier facilities or centralized

hub facilities. ‘‘(III) Notwithstanding section 524 of the Tariff Act of 1930,

the remaining 50 percent of the amount of payments received

under subparagraph (A)(ii) and clause (ii) shall be paid to the

Secretary of the Treasury, which is in lieu of the payment of

fees under subsection (a)(10) of this section.’’.

(b) EFFECTIVE DATE.—The amendments made by subsection (a)

take effect on October 1, 2002.

SEC. 128. NATIONAL CUSTOMS AUTOMATION PROGRAM.

Section 411(b) of the Tariff Act of 1930 (19 U.S.C. 1411(b)) is

amended by striking the second sentence and inserting the following: ‘‘The Secretary may, by regulation, require the electronic

submission of information described in subsection (a) or any other

information required to be submitted to the Customs Service separately pursuant to this subpart.’’.

Subtitle D—Antiterrorism Provisions

SEC. 141. EXCLUSIVE REMEDY FOR PERSONAL SEARCH CLAIMS.

(a) EXCLUSIVE REMEDY.—Section 3061 of the Revised Statutes of

the United States (19 U.S.C. 482) is amended—

(1) by striking ‘‘Any of the officers’’ and inserting ‘‘(a) Any of

the officers’’; and

(2) by adding at the end the following:

‘‘(b) The remedy against the United States for claims arising

from the search of a person made pursuant to subsection (a) by any

28

officer or employee of the Federal government while acting within

the scope of his office or employment is exclusive of any other civil

action or proceeding for money damages by reason of the same subject matter against the employee whose act or omission gave rise

to the claim or against the estate of such employee. The United

States shall be liable for any such claim, and any other civil action

or proceeding for money damages arising out of or relating to the

same subject matter against the employee or the employees estate

is precluded without regard to when the act or omission occurred.’’. (b) REQUIREMENT TO POST POLICY AND PROCEDURES FOR

SEARCHES OF PASSENGERS.—Not later than 30 days after the date

of the enactment of this Act, the Commissioner of the Customs

Service shall ensure that at each Customs border facility appropriate notice is posted that provides a summary of the policy and

procedures of the Customs Service for searching passengers, including a statement of the policy relating to the prohibition on the conduct of profiling of passengers based on gender, race, color, religion,

or ethnic background.

SEC. 142. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS OF ENTRY,

OR STAFFING OF THE CUSTOMS SERVICE.

Section 318 of the Tariff Act of 1930 (19 U.S.C. 1318) is

amended— (1) by striking ‘‘Whenever the President’’ and inserting ‘‘(a)

Whenever the President’’; and

(2) by adding at the end the following: ‘‘(b)(1) Notwithstanding any other provision of law, the Secretary

of the Treasury, when necessary to respond to a national emergency declared under the National Emergencies Act (50 U.S.C.

1601 et seq.) or to a specific threat to human life or national interests, is authorized to take the following actions on a temporary

basis: ‘‘(A) Eliminate, consolidate, or relocate any office or port of

entry of the Customs Service. ‘‘(B) Modify hours of service, alter services rendered at any

location, or reduce the number of employees at any location. ‘‘(C) Take any other action that may be necessary to directly

respond to the national emergency or specific threat. ‘‘(2) Notwithstanding any other provision of law, the Commissioner of Customs, when necessary to respond to a specific threat

to human life or national interests, is authorized to close temporarily any Customs office or port of entry or take any other lesser

action that may be necessary to respond to the specific threat.

‘‘(3) The Secretary of the Treasury or the Commissioner of Customs, as the case may be, shall notify the Committee on Ways and

Means of the House of Representatives and the Committee on Finance of the Senate not later than 72 hours after taking any action

under paragraph (1) or (2).’’.

SEC. 143. MANDATORY ADVANCED ELECTRONIC INFORMATION FOR

CARGO AND PASSENGERS.

(a) CARGO INFORMATION.—

(1) IN GENERAL.—Section 431(b) of the Tariff Act of 1930 (19

U.S.C. 1431(b)) is amended—

(A) in the first sentence, by striking ‘‘Any manifest’’ and

inserting ‘‘(1) Any manifest’’; and

(B) by adding at the end the following:

29

‘‘(2)(A) In addition to any other requirement under this section,

for each land, air, or vessel carrier required to make entry under

the customs laws of the United States, the pilot, the master, operator, or owner of such carrier (or the authorized agent of such operator or owner) shall provide by electronic transmission cargo manifest information in advance of such entry in such manner, time,

and form as prescribed under regulations by the Secretary. The

Secretary may exclude any class of land, air, or vessel carrier for

which the Secretary concludes the requirements of this subparagraph are not necessary. ‘‘(B) The Secretary shall cooperate with other appropriate Federal departments and agencies for the purpose of providing to such

departments and agencies as soon as practicable cargo manifest information obtained pursuant to subparagraph (A). In carrying out

the preceding sentence, the Secretary, to the maximum extent

practicable, shall protect the privacy and property rights with respect to the cargo involved.’’. (2) CONFORMING AMENDMENTS.—Subparagraphs (A) and (C)

of section 431(d)(1) of such Act are each amended by inserting

before the semicolon ‘‘or subsection (b)(2)’’. (b) PASSENGER INFORMATION.—Part II of title IV of the Tariff Act

of 1930 (19 U.S.C. 1431 et seq.) is amended by inserting after section 431 the following:

‘‘SEC. 432. PASSENGER AND CREW INFORMATION REQUIRED FOR

LAND, AIR, OR VESSEL CARRIERS.

‘‘(a) IN GENERAL.—For every person arriving or departing on a

land, air, or vessel carrier required to make entry or obtain clearance under the customs laws of the United States, the pilot, the

master, operator, or owner of such carrier (or the authorized agent

of such operator or owner) shall provide by electronic transmission

information described in subsection (b) in advance of such entry or

clearance in such manner, time, and form as prescribed under regulations by the Secretary.

‘‘(b) INFORMATION DESCRIBED.—The information described in this

subsection shall include for each person described in subsection (a),

if applicable, the person’s—

‘‘(1) full name;

‘‘(2) date of birth and citizenship;

‘‘(3) gender;

‘‘(4) passport number and country of issuance;

‘‘(5) United States visa number or resident alien card number;

‘‘(6) passenger name record; and

‘‘(7) such additional information that the Secretary, by regulation, determines is reasonably necessary to ensure aviation

and maritime safety pursuant to the laws enforced or administered by the Customs Service.

‘‘(c) SHARING OF INFORMATION.—The Secretary shall cooperate

with other appropriate Federal departments and agencies for the

purpose of providing to such departments and agencies as soon as

practicable electronic transmission information obtained pursuant

to subsection (a). In carrying out the preceding sentence, the Secretary, to the maximum extent practicable, shall protect the privacy rights of the person with respect to which the information relates.’’.

30

(c) DEFINITION.—Section 401 of the Tariff Act of 1930 (19 U.S.C.

1401) is amended by adding at the end the following: ‘‘(t) The term ‘land, air, or vessel carrier’ means a land, air, or

vessel carrier, as the case may be, that transports goods or passengers for payment or other consideration, including money or

services rendered.’’. (d) EFFECTIVE DATE.—The amendments made by this section

shall take effect beginning 45 days after the date of the enactment

of this Act.

SEC. 144. AUTHORIZATION OF APPROPRIATIONS FOR REESTABLISHMENT OF CUSTOMS OPERATIONS IN NEW YORK CITY.

(a) AUTHORIZATION OF APPROPRIATIONS.—

(1) IN GENERAL.—There is authorized to be appropriated for

the reestablishment of operations of the Customs Service in

New York, New York, such sums as may be necessary for fiscal

year 2002.

(2) OPERATIONS DESCRIBED.—The operations referred to in

paragraph (1) include, but are not limited to, the following:

(A) Operations relating to the Port Director of New York

City, the New York Customs Management Center (including the Director of Field Operations), and the Special

Agent-In-Charge for New York.

(B) Commercial operations, including textile enforcement

operations and salaries and expenses of—

(i) trade specialists who determine the origin and

value of merchandise;

(ii) analysts who monitor the entry data into the

United States of textiles and textile products; and

(iii) Customs officials who work with foreign governments to examine textile makers and verify entry information.

(b) AVAILABILITY.—Amounts appropriated pursuant to the authorization of appropriations under subsection (a) are authorized to

remain available until expended.

Subtitle E—Textile Transshipment

Provisions

SEC. 151. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONITORING BY

CUSTOMS SERVICE.

(a) GAO AUDIT.—The Comptroller General of the United States

shall conduct an audit of the system established and carried out by

the Customs Service to monitor textile transshipment.

(b) REPORT.—Not later than 9 months after the date of enactment of this Act, the Comptroller General shall submit to the Committee on Ways and Means of the House of Representatives and

Committee on Finance of the Senate a report that contains the results of the study conducted under subsection (a), including recommendations for improvements to the transshipment monitoring

system if applicable.

(c) TRANSSHIPMENT DESCRIBED.—Transshipment within the

meaning of this section has occurred when preferential treatment

under any provision of law has been claimed for a textile or apparel

article on the basis of material false information concerning the

31

country of origin, manufacture, processing, or assembly of the article or any of its components. For purposes of the preceding sentence, false information is material if disclosure of the true information would mean or would have meant that the article is or was

ineligible for preferential treatment under the provision of law in

question.

SEC. 152. AUTHORIZATION OF APPROPRIATIONS FOR TEXTILE TRANSSHIPMENT ENFORCEMENT OPERATIONS.

(a) AUTHORIZATION OF APPROPRIATIONS.— (1) IN GENERAL.—There is authorized to be appropriated for

textile transshipment enforcement operations of the Customs

Service $9,500,000 for fiscal year 2002.

(2) AVAILABILITY.—Amounts appropriated pursuant to the

authorization of appropriations under paragraph (1) are authorized to remain available until expended.

(b) USE OF FUNDS.—Of the amount appropriated pursuant to the

authorization of appropriations under subsection (a), the following

amounts are authorized to be made available for the following purposes:

(1) IMPORT SPECIALISTS.—$1,463,000 for 21 Customs import

specialists to be assigned to selected ports for documentation

review to support detentions and exclusions and 1 additional

Customs import specialist assigned to the Customs headquarters textile program to administer the program and provide oversight.

(2) INSPECTORS.—$652,080 for 10 Customs inspectors to be

assigned to selected ports to examine targeted high-risk shipments.

(3) INVESTIGATORS.—(A) $1,165,380 for 10 investigators to be

assigned to selected ports to investigate instances of smuggling, quota and trade agreement circumvention, and use of

counterfeit visas to enter inadmissible goods.

(B) $149,603 for 1 investigator to be assigned to Customs

headquarters textile program to coordinate and ensure implementation of textile production verification team results from

an investigation perspective.

(4) INTERNATIONAL TRADE SPECIALISTS.—$226,500 for 3 international trade specialists to be assigned to Customs headquarters to be dedicated to illegal textile transshipment policy

issues and other free trade agreement enforcement issues.

(5) PERMANENT IMPORT SPECIALISTS FOR HONG KONG.—

$500,000 for 2 permanent import specialist positions and

$500,000 for 2 investigators to be assigned to Hong Kong to

work with Hong Kong and other government authorities in

Southeast Asia to assist such authorities pursue proactive enforcement of bilateral trade agreements.

(6) VARIOUS PERMANENT TRADE POSITIONS.—$3,500,000 for

the following:

(A) 2 permanent positions to be assigned to the Customs

attache ́ office in Central America to address trade enforcement issues for that region.

(B) 2 permanent positions to be assigned to the Customs

attache ́ office in South Africa to address trade enforcement

issues pursuant to the African Growth and Opportunity

Act (title I of Public Law 106–200).

32

(C) 4 permanent positions to be assigned to the Customs

attache ́ office in Mexico to address the threat of illegal textile transshipment through Mexico and other related

issues under the North American Free Trade Agreement

Act.

(D) 2 permanent positions to be assigned to the Customs

attache ́ office in Seoul, South Korea, to address the trade

issues in the geographic region.

(E) 2 permanent positions to be assigned to the proposed

Customs attache ́ office in New Delhi, India, to address the

threat of illegal textile transshipment and other trade enforcement issues.

(F) 2 permanent positions to be assigned to the Customs

attache ́ office in Rome, Italy, to address trade enforcement

issues in the geographic region, including issues under free

trade agreements with Jordan and Israel.

(7) ATTORNEYS.—$179,886 for 2 attorneys for the Office of

the Chief Counsel of the Customs Service to pursue cases regarding illegal textile transshipment.

(8) AUDITORS.—$510,000 for 6 Customs auditors to perform

internal control reviews and document and record reviews of

suspect importers.

(9) ADDITIONAL TRAVEL FUNDS.—$250,000 for deployment of

additional textile production verification teams to sub-Saharan

Africa.

(10) TRAINING.—(A) $75,000 for training of Customs personnel.

(B) $200,000 for training for foreign counterparts in risk

management analytical techniques and for teaching factory inspection techniques, model law Development, and enforcement

techniques.

(11) OUTREACH.—$60,000 for outreach efforts to United

States importers.

SEC. 153. IMPLEMENTATION OF THE AFRICAN GROWTH AND OPPORTUNITY ACT.

Of the amount made available for fiscal year 2002 under section

301(b)(2)(A) of the Customs Procedural Reform and Simplification

Act of 1978 (19 U.S.C. 2075(b)(2)(A)), as amended by section

101(b)(1) of this Act, $1,317,000 shall be available until expended

for the Customs Service to provide technical assistance to help subSaharan Africa countries develop and implement effective visa and

anti-transshipment systems as required by the African Growth and

Opportunity Act (title I of Public Law 106–200), as follows:

(1) TRAVEL FUNDS.—$600,000 for import specialists, special

agents, and other qualified Customs personnel to travel to subSaharan Africa countries to provide technical assistance in developing and implementing effective visa and anti-transshipment systems.

(2) IMPORT SPECIALISTS.—$266,000 for 4 import specialists to

be assigned to Customs headquarters to be dedicated to providing technical assistance to sub-Saharan African countries

for developing and implementing effective visa and anti-transshipment systems.

(3) DATA RECONCILIATION ANALYSTS.—$151,000 for 2 data

reconciliation analysts to review apparel shipments.

33

(4) SPECIAL AGENTS.—$300,000 for 2 special agents to be assigned to Customs headquarters to be available to provide

technical assistance to sub-Saharan African countries in the

performance of investigations and other enforcement initiatives.

TITLE II—OFFICE OF THE UNITED

STATES TRADE REPRESENTATIVE

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

(a) IN GENERAL.—Section 141(g)(1) of the Trade Act of 1974 (19

U.S.C. 2171(g)(1)) is amended— (1) in subparagraph (A)— (A) in the matter preceding clause (i), by striking ‘‘not to

exceed’’;

(B) in clause (i) to read as follows: ‘‘(i) $30,000,000 for fiscal year 2002.’’;

(C) in clause (ii) to read as follows: ‘‘(ii) $32,300,000 for fiscal year 2003.’’; and

(D) by adding at the end the following: ‘‘(iii) $33,108,000 for fiscal year 2004.’’; and

(2) in subparagraph (B)— (A) in clause (i), by adding ‘‘and’’ at the end;

(B) by striking clause (ii); and

(C) by redesignating clause (iii) as clause (ii).

(b) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS.—Section

141(g) of the Trade Act of 1974 (19 U.S.C. 2171(g)) is amended by

adding at the end the following:

‘‘(3) By not later than the date on which the President submits

to Congress the budget of the United States Government for a fiscal year, the United States Trade Representative shall submit to

the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate the projected

amount of funds for the succeeding fiscal year that will be necessary for the Office to carry out its functions.’’.

(c) ADDITIONAL STAFF FOR OFFICE OF ASSISTANT U.S. TRADE REPRESENTATIVE FOR CONGRESSIONAL AFFAIRS.—

(1) IN GENERAL.—There is authorized to be appropriated

such sums as may be necessary for fiscal year 2002 for the salaries and expenses of two additional legislative specialist employee positions within the Office of the Assistant United

States Trade Representative for Congressional Affairs.

(2) AVAILABILITY.—Amounts appropriated pursuant to the

authorization of appropriations under paragraph (1) are authorized to remain available until expended.

TITLE III—UNITED STATES

INTERNATIONAL TRADE COMMISSION

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

(a) IN GENERAL.—Section 330(e)(2)(A) of the Tariff Act of 1930

(19 U.S.C. 1330(e)(2)) is amended—

(1) in clause (i) to read as follows:

34

‘‘(i) $51,440,000 for fiscal year 2002.’’;

(2) in clause (ii) to read as follows:

‘‘(ii) $54,000,000 for fiscal year 2003.’’; and

(3) by adding at the end the following:

‘‘(iii) $57,240,000 for fiscal year 2004.’’.

(b) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS.—Section

330(e) of the Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is amended

by adding at the end the following:

‘‘(4) By not later than the date on which the President submits

to Congress the budget of the United States Government for a fiscal year, the Commission shall submit to the Committee on Ways

and Means of the House of Representatives and the Committee on

Finance of the Senate the projected amount of funds for the succeeding fiscal year that will be necessary for the Commission to

carry out its functions.’’.

TITLE IV—OTHER TRADE PROVISIONS

SEC. 401. INCREASE IN AGGREGATE VALUE OF ARTICLES EXEMPT

FROM DUTY ACQUIRED ABROAD BY UNITED STATES RESIDENTS.

(a) IN GENERAL.—Subheading 9804.00.65 of the Harmonized Tariff Schedule of the United States is amended in the article description column by striking ‘‘$400’’ and inserting ‘‘$800’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect 90 days after the date of the enactment of this Act.

SEC. 402. REGULATORY AUDIT PROCEDURES.

Section 509(b) of the Tariff Act of 1930 (19 U.S.C. 1509(b)) is

amended by adding at the end the following:

‘‘(6)(A) If during the course of any audit concluded under this

subsection, the Customs Service identifies overpayments of duties or fees or over-declarations of quantities or values that are

within the time period and scope of the audit that the Customs

Service has defined, then in calculating the loss of revenue or

monetary penalties under section 592, the Customs Service

shall treat the overpayments or over-declarations on finally liquidated entries as an offset to any underpayments or underdeclarations also identified on finally liquidated entries if such

overpayments or over-declarations were not made by the person being audited for the purpose of violating any provision of

law.

‘‘(B) Nothing in this paragraph shall be construed to authorize a refund not otherwise authorized under section 520.’’.

Amend the title so as to read: ‘‘A bill to authorize appropriations

for fiscal years 2002 through 2004 for the United States Customs

Service for antiterrorism, drug interdiction, and other operations,

for the Office of the United States Trade Representative, for the

United States International Trade Commission, and for other purposes.

Æ