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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1683 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1683

To provide the Department of Homeland Security, U.S. Customs and Border 
 Protection, and the Department of the Treasury with authority to more 
    aggressively enforce trade laws relating to textile and apparel 
                   articles, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 12, 2011

Mrs. Hagan (for herself and Mr. Graham) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To provide the Department of Homeland Security, U.S. Customs and Border 
 Protection, and the Department of the Treasury with authority to more 
    aggressively enforce trade laws relating to textile and apparel 
                   articles, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Textile 
Enforcement and Security Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Textile or apparel article defined.
Sec. 3. Definitions.
Sec. 4. Findings.
Sec. 5. Sense of Congress.
 TITLE I--ADDITIONAL AUTHORITIES FOR U.S. CUSTOMS AND BORDER PROTECTION

Sec. 101. Seizure and forfeiture of certain textile or apparel articles 
                            and use of amounts from fines, penalties, 
                            and forfeitures.
Sec. 102. Increase in certain TAPP positions and import specialist 
                            positions and biennial review of staff 
                            levels.
             TITLE II--AMENDMENTS TO THE TARIFF ACT OF 1930

Sec. 201. Special provisions regarding certain violations relating to 
                            import documentation.
Sec. 202. Electronic preference verification system for origin of 
                            textile or apparel articles under CAFTA-DR, 
                            NAFTA, and other free trade agreements.
Sec. 203. Establishment of textile and apparel new importer program.
Sec. 204. Nonresident importer declaration program for textile or 
                            apparel articles.
   TITLE III--ESTABLISHMENT OF TEXTILE AND APPAREL MANUFACTURING AND 
                           SUPPLIER REGISTRY

Sec. 301. Establishment of textile and apparel manufacturing and 
                            supplier registry.
                    TITLE IV--IMPLEMENTATION REPORT

Sec. 401. Implementation report.

SEC. 2. TEXTILE OR APPAREL ARTICLE DEFINED.

    (a) In General.--In this Act, the term ``textile or apparel 
article'' means any of the following:
            (1) Any good classifiable in chapters 50 through 63 of the 
        HTS.
            (2) Any good classifiable under one of the following HTS 
        headings or subheadings:
                    (A) 3005.90.
                    (B) 3921.12.15.
                    (C) 3921.13.15.
                    (D) 3921.90.25.
                    (E) 6601.10 through 6601.99.
                    (F) 7019.19.15.
                    (G) 7019.19.28.
                    (H) 7019.40 through 7019.59.
                    (I) 8708.21.
                    (J) 9404.30.40.
                    (K) 9404.30.80.
                    (L) 9404.90.
    (b) HTS Defined.--In subsection (a), the term ``HTS'' means the 
Harmonized Tariff Schedule of the United States.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Commissioner.--The term ``Commissioner'' means the 
        Commissioner responsible for U.S. Customs and Border 
        Protection.
            (2) Enter; entry.--The terms ``enter'' and ``entry'' refer 
        to the entry, or withdrawal from warehouse for consumption, of 
        a textile or apparel article in the customs territory of the 
        United States.
            (3) Importer.--The term ``importer'' means one of the 
        parties qualifying as an importer of record under section 
        484(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 
        1484(a)(2)(B)).
            (4) Special operations.--The term ``special operations'' 
        means an initiative that is--
                    (A) implemented to address specific instances of 
                transactions that do not comply with United States 
                trade laws with respect to textile or apparel articles;
                    (B) used to address any import violations involving 
                textile or apparel articles, including fraud, quota 
                requirements, revenue collection, trade preferences or 
                requirements under free trade agreements, product 
                safety, anti-dumping and countervailing duties, or 
                intellectual property rights; or
                    (C) initiated to address a singular instance or a 
                pattern of high-risk behavior, involving a particular 
                commodity or other trade issue, including valuation, 
                origin fraud, or trade preference violation, on the 
                part of a country, importer, or manufacturer.
            (5) TAPP.--The term ``TAPP'' means the Textile and Apparel 
        Policy and Programs division of the Office of International 
        Trade within U.S. Customs and Border Protection.
            (6) TPVTs.--The term ``TPVTs'' means Textile Product 
        Verification Teams.
            (7) Dedicated.--The term ``dedicated'' means, with respect 
        to an import specialist, that such import specialist who focus 
        solely on the import of textile or apparel articles.
            (8) Trained.--The term ``trained'' means, with respect to 
        an import specialist, that such import specialist has received, 
        at least every last three years, education or training related 
        to the import of textile or apparel articles.
            (9) Nonresident importer.--The term ``nonresident 
        importer'' means an importer who is--
                    (A) an individual who is not a citizen of the 
                United States or an alien lawfully admitted for 
                permanent residence in the United States; or
                    (B) a partnership, corporation, or other commercial 
                entity that is not organized under the laws of a 
                jurisdiction within the customs territory of the United 
                States (as such term is defined in General Note 2 of 
                the Harmonized Tariff Schedule of the United States) or 
                in the Virgin Islands of the United States.
            (10) New importer.--The term ``new importer'' means an 
        importer with fewer than three years of import history into the 
        United States of textile or apparel articles. For purposes of 
        this paragraph, a new importer that merges with or is purchased 
        by another importer, or is otherwise altered, shall be 
        considered to remain a new importer until such time as such new 
        importer presents proof to the Commissioner of such merger, 
        purchase, or other alteration for a determination regarding 
        whether such new importer may be treated as an importer.
            (11) CAFTA-DR country.--The term ``CAFTA-DR country'' has 
        the meaning given such term in section 3(2) of the Dominican 
        Republic-Central America-United States-Free Trade Agreement 
        Implementation Act (19 U.S.C. 4002(2); Public Law 109-53).

SEC. 4. FINDINGS.

    Congress finds the following:
            (1) The fraudulent or illegal imports of textile and 
        apparel articles into the United States results in significant 
        revenue loss to the Department of the Treasury.
            (2) The Textile and Apparel Policy and Programs division of 
        the Office of International Trade within U.S. Customs and 
        Border Protection or any subsequent division has, with respect 
        to textile or apparel articles, the primary responsibility to 
        ensure the proper enforcement of all trade laws, rules, and 
        regulations affecting textile and apparel articles.
            (3) The TAPP has the authority to direct the implementation 
        and enforcement of free trade agreements, multilateral 
        agreements, bilateral textile agreements, trade preference 
        programs, and all other trade laws affecting textiles and 
        apparel articles.
            (4) The primary focus of the TAPP is to ensure the 
        effective implementation of all trade enforcement activities 
        involving textile or apparel articles with its principle focus 
        to prevent circumvention of the requirements to obtain 
        preferential trade treatment under free trade agreements and 
        trade preference programs in order to avoid quotas or duties.

SEC. 5. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) U.S. Customs and Border Protection and the TAPP should 
        be involved in supporting the negotiation of enforcement 
        provisions of trade preference programs and free trade 
        agreements affecting textiles and apparel articles;
            (2) the TAPP should conduct outreach to other Federal 
        departments and agencies involved in overall trade policy, such 
        as Department of Commerce and the Office of the United States 
        Trade Representative;
            (3) the TAPP should be involved in the development of 
        policies and procedures that provide guidance to the port of 
        entry of the textile and apparel articles, including training 
        of TAPP officials;
            (4) the TAPP headquarters office is currently below its 
        optimal staffing levels and the TAPP personnel efforts should 
        be targeted at retaining senior staff and hiring new qualified 
        personnel so that the division is brought up to optimal 
        staffing levels, and these positions should be designated as 
        not only policy positions, but enforcement positions as well;
            (5) the TAPP should implement special operations, Textile 
        Product Verification Teams, and other actions under U.S. 
        Customs and Border Protection authority to ensure enforcement 
        of trade laws relating to imports of textile or apparel 
        articles in a timely manner as concerns arise, particularly as 
        such concerns relate to enforcement of the North American Free 
        Trade Agreement, the Dominican Republic-Central America-United 
        States Free Trade Agreement, and all other free trade 
        agreements and trade preference programs, in order to prevent 
        transshipments and origin fraud;
            (6) the TAPP officials should coordinate and collaborate 
        with foreign government counterparts to ensure effective 
        enforcement of textile and apparel articles; and
            (7) U.S. Customs and Border Protection should ensure that 
        seizures, detentions, special operations, and TPVTs remain the 
        primary focus of its enforcement efforts relating to textile 
        and apparel articles.

 TITLE I--ADDITIONAL AUTHORITIES FOR U.S. CUSTOMS AND BORDER PROTECTION

SEC. 101. SEIZURE AND FORFEITURE OF CERTAIN TEXTILE OR APPAREL ARTICLES 
              AND USE OF AMOUNTS FROM FINES, PENALTIES, AND 
              FORFEITURES.

    (a) Seizure and Forfeiture.--
            (1) In general.--The following penalties shall apply with 
        respect to an importation of a textile or apparel article:
                    (A) In the case of importation for which a trade 
                preference has been claimed and with respect to which 
                the textile or apparel article has been either 
                misdescribed on entry as to country of origin or for 
                which the importer does not verify actual country of 
                origin, for purposes of avoiding a duty or other 
                obligation to the United States Government, including 
                any merchandise accompanied by documentation which 
                indicates a false or fraudulent country of origin or 
                source of textile or apparel articles, and any 
                merchandise accompanied by a counterfeit visa, license, 
                permit, bill of lading, or similar documentation that 
                is subsequently used by the importer for entry of 
                textile or apparel articles, the textile or apparel 
                article shall be subject to seizure and forfeiture in 
                accordance with United States trade laws and title 18, 
                United States Code.
                    (B) In the case of importation by an importer who 
                provides false information with respect to the physical 
                address of the importer or who does not meet the 
                requirements of section 484(a)(2)(B) of the Tariff Act 
                of 1930 (19 U.S.C. 1484 (a)(2)(B)), the textile or 
                apparel article shall be subject to seizure and 
                forfeiture in accordance with United States trade laws 
                and title 18, United States Code.
            (2) Exception.--A clerical error shall not be considered a 
        violation of paragraph (1) unless such error is part of a 
        pattern of negligent conduct.
    (b) Use of Amounts From Fines, Penalties, and Forfeitures.--
            (1) In general.--Notwithstanding any other provision of 
        law, the Secretary of Homeland Security, the Commissioner, or 
        the Secretary of the Treasury--
                    (A) shall use amounts from fines, penalties, and 
                forfeitures of property for violations of any law 
                regarding the import of textile or apparel articles 
                enforced by the Secretary of Homeland Security or the 
                Secretary of the Treasury to pay for--
                            (i) expenses directly related to 
                        investigations of, and civil or criminal 
                        enforcement proceedings on, violations of any 
                        law regarding the import of textile or apparel 
                        articles, including any necessary expenses for 
                        equipment, training, travel, witnesses, and 
                        contracting services directly related to such 
                        investigations or proceedings; and
                            (ii) expenses related to training and 
                        education for applicable revenue positions, 
                        including import specialists, international 
                        trade specialists, and auditors who participate 
                        in the enforcement of the export or import of 
                        textile or apparel articles through United 
                        States trade laws; and
                    (B) may use amounts from fines, penalties, and 
                forfeitures of property for violations of any law 
                regarding the import of textile or apparel articles 
                enforced by the Secretary of Homeland Security, the 
                Commissioner, or the Secretary of the Treasury to pay 
                for a reward of not less than 20 percent of the amount 
                of the fine, penalty, or forfeiture of property 
                collected or $20,000, whichever is the lesser amount, 
                to any person who furnishes information that leads to 
                an arrest, conviction, civil penalty assessment, or 
                forfeiture of property for any violation of any law 
                regarding the import of textile or apparel articles 
                enforced by the Secretary of Homeland Security, the 
                Commissioner, or the Secretary of the Treasury.
            (2) Rule of construction.--Amounts collected from fines, 
        penalties, and forfeitures of property for violations of any 
        law regarding the import of textile or apparel articles 
        enforced by the Secretary of Homeland Security, the 
        Commissioner, or the Secretary of the Treasury to pay for 
        expenses described in paragraph (1)(A) or a reward described in 
        paragraph (1)(B) are in addition to amounts otherwise available 
        for such purposes.

SEC. 102. INCREASE IN CERTAIN TAPP POSITIONS AND IMPORT SPECIALIST 
              POSITIONS AND BIENNIAL REVIEW OF STAFF LEVELS.

    (a) Increase in Certain TAPP Positions.--Not later than 180 days of 
the date of the enactment of this Act, the Commissioner shall ensure 
that--
            (1) the Textile Operations Branch (or any successor or 
        related Branch) of the TAPP shall consist of, at a minimum, one 
        Branch Chief and six Operations Staff, of whom three Operations 
        Staff shall be assigned to one of the CAFTA-DR countries for 
        purposes of assisting U.S. Customs and Border Protection with 
        verification of textile and apparel preferences claimed under 
        the Dominican Republic-Central America-United States Free Trade 
        Agreement;
            (2) the Textile/Apparel Policy & Programs Division (or any 
        successor or related Branch) of the TAPP shall consist of, at a 
        minimum, one Branch Chief and three Operations Staff and two 
        textile trade analysts; and
            (3) the Quota Branch (or any successor or related Branch) 
        of the TAPP shall consist of, at a minimum, one Branch Chief 
        and four Operations Staff.
    (b) Increase in Textile and Apparel Trained Import Specialists.--As 
soon as practicable after the date of the enactment of this Act, the 
Commissioner shall certify, with respect to the 15 largest (by value of 
entries) United States ports of entry for textile or apparel articles, 
that Import Specialists who are assigned to such ports of entry are 
trained in fraud, trade preference verification, undervaluation, or 
other issues relating to imports of textile or apparel articles so that 
the number of such trained Import Specialist positions is not less than 
150 percent of the number of trained Import Specialist positions in 
existence as of the date of the enactment of this Act.
    (c) Increase in Dedicated Textile and Apparel Import Specialists.--
As soon as practicable after the date of the enactment of this Act, the 
Commissioner shall increase dedicated textile and import specialists by 
25 percent at the 15 largest (by value of entries) United States ports 
of entry for textile or apparel articles over the number of such 
specialists in existence as of the date of the enactment of this Act.
    (d) Biennial Review of Staff Levels.--Not later than one year after 
the date of the enactment of this Act and every two years thereafter, 
the Commissioner shall submit to the Committee on Ways and Means and 
the Committee on Homeland Security of the House of Representatives, the 
Committee on Finance and the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the co-chairs of the 
Congressional Textile Caucus a report on the staffing levels specified 
in this section, including a determination of whether or not there is 
need for additional staff to carry out the duties of the TAPP.

             TITLE II--AMENDMENTS TO THE TARIFF ACT OF 1930

SEC. 201. SPECIAL PROVISIONS REGARDING CERTAIN VIOLATIONS RELATING TO 
              IMPORT DOCUMENTATION.

    (a) Publication of Names of Certain Violators.--Section 592A(a)(1) 
of the Tariff Act of 1930 (19 U.S.C. 1592a(a)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``is authorized to'' and inserting ``shall''; and
            (2) in subparagraph (A), by inserting before the comma at 
        the end the following: ``, including for violations of quotas, 
        duties, or trade preference programs''.
    (b) List of High-Risk Countries.--Section 592A(b)(1) of the Tariff 
Act of 1930 (1592(a)(b)(1)) is amended, in the first sentence--
            (1) by striking ``is authorized to'' and inserting 
        ``shall''; and
            (2) by inserting ``or duties or violate trade preference 
        programs'' after ``quotas''.

SEC. 202. ELECTRONIC PREFERENCE VERIFICATION SYSTEM FOR ORIGIN OF 
              TEXTILE OR APPAREL ARTICLES UNDER CAFTA-DR, NAFTA, AND 
              OTHER FREE TRADE AGREEMENTS.

    (a) Establishment.--Not later than 180 days after the date of the 
enactment of this Act, the President, acting through the Commissioner 
and in coordination with the head of the Office of Textiles and Apparel 
of the Department of Commerce, shall establish an electronic 
verification system for tracking textile or apparel articles imported 
or exported under the Dominican Republic-Central America-United States 
Free Trade Agreement, the North American Free Trade Agreement, or any 
other free trade agreement to which the United States is a party, to 
ensure compliance with the respective requirements of such agreements.
    (b) Implementation.--The President shall seek to enter into 
consultations and agreements, as appropriate, with the government of 
each foreign country that is a party to an agreement referred to in 
subsection (a) for purposes of implementing the electronic verification 
system established under such subsection.
    (c) Confidentiality.--The electronic verification system 
established under subsection (a) shall ensure that proprietary 
information, such as information about supply chain participants, are 
coded so that only U.S. Customs and Border Protection and Office of 
Textiles and Apparel personnel can access such information.
    (d) Sense of Congress.--It is the sense of Congress that the 
President should seek to make the integration of the electronic 
verification system established under subsection (a) in future free 
trade agreements a priority in negotiations for such agreements.

SEC. 203. ESTABLISHMENT OF TEXTILE AND APPAREL NEW IMPORTER PROGRAM.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Commissioner shall establish a new importer 
program that directs U.S. Customs and Border Protection to adjust bond 
amounts for new importers of textile and apparel goods based on the 
level of risk assessed by U.S. Customs and Border Protection for 
protection of revenue of the Federal Government.
    (b) Requirements.--The Commissioner shall ensure that, as part of 
the new importer program established under subsection (a), U.S. Customs 
and Border Protection--
            (1) develops risk assessment guidelines for new importers 
        of textile and apparel imports;
            (2) adjusts bond amounts for new importers in accordance 
        with the risk assessment guidelines developed under paragraph 
        (1);
            (3) maintains a centralized database of new importers; and
            (4) ensures accuracy of required information provided to 
        U.S. Customs and Border Protection by new importers.
    (c) Bonding Authority.--Section 623(b) of the Tariff Act of 1930 
(19 U.S.C. 1623(b)) is amended by adding at the end the following new 
paragraph:
            ``(5) In the case of importation of textile or apparel 
        articles, by regulation or specific instruction require, or 
        authorize U.S. Customs and Border Protection officers to 
        require, the amount of the bond to include amounts equal to any 
        duties, fees, or penalties estimated to be payable on such 
        articles. For purposes of this paragraph, amounts equal to any 
        penalties estimated to be payable on such articles shall be 
        based on a risk assessment of the new importer carried out in 
        accordance with section 203 of the Textile Security and 
        Enforcement Act of 2011. Any person who violates this paragraph 
        shall be liable for a civil penalty of $50,000 for each such 
        violation.''.
    (d) Other Penalties.--In addition to the penalties specified in 
paragraph (5) of section 623(b) of the Tariff Act of 1930 (19 U.S.C. 
1623(b)), as added by subsection (c) of this section, for a violation 
of such paragraph, any person who violates any other customs law of the 
United States with respect to the importation of textile or apparel 
articles shall be subject to any applicable civil or criminal penalty, 
including seizure and forfeiture that may be imposed under such customs 
law, including section 592 of the Tariff Act of 1930 (19 U.S.C. 1592).

SEC. 204. NONRESIDENT IMPORTER DECLARATION PROGRAM FOR TEXTILE OR 
              APPAREL ARTICLES.

    (a) Establishment of Program.--Not later than 180 days after the 
date of the enactment of this Act, the Commissioner shall establish and 
maintain a nonresident importer declaration program with respect to the 
importation of textile or apparel articles. The program shall require 
nonresident importers of textile or apparel articles to provide the 
information required under subsection (b) and declare the information 
required under subsection (c), and require that such information 
accompany the entry summary documentation for such textile or apparel 
articles.
    (b) Information Required.--The Commissioner shall require the 
following information to be submitted by any nonresident importer 
seeking to import textile or apparel articles:
            (1) An identification of a resident agent in the State in 
        which the port of entry is located who is authorized to accept 
        service of process against the nonresident importer in 
        connection with the importation of the textile or apparel 
        articles.
            (2) A certification that the resident agent described in 
        paragraph (1) has assets in the United States in sufficient 
        amounts for the purpose of ensuring the payment of any 
        additional loss of revenue not covered by any surety bond or 
        for any civil penalties levied by the Federal Government in 
        connection with the importation of the textile or apparel 
        articles.
            (3) A copy of the commercial invoice accompanying the 
        shipment of the textile or apparel articles, including the 
        name, address, and contact information for each person in the 
        transaction, such as the trading house, the freight forwarder, 
        and the ultimate purchaser of the goods.
    (c) Declarations Required.--Pursuant to procedures prescribed by 
the Commissioner, any nonresident importer seeking to import textile or 
apparel articles shall declare the following:
            (1) The nonresident importer has secured a bond in 
        connection with the importation of the textile or apparel 
        articles as required by paragraph (5) of section 623(b) of the 
        Tariff Act of 1930 (19 U.S.C. 1623(b)) (as added by section 
        203(c) of this Act).
            (2) The nonresident importer has established a power of 
        attorney in connection with the importation of the textile or 
        apparel articles.
    (d) Authority.--A resident agent under this section shall accept 
service of process on behalf of the nonresident importer of such agent 
for the purpose of duties, penalties, or other fines issued by the 
Secretary of Homeland Security or the Commissioner if the Secretary or 
the Commissioner is unable to collect duties, penalties, or other fines 
from such nonresident importer.
    (e) Penalties.--
            (1) In general.--It shall be unlawful for any person to 
        import into the United States any textile or apparel article in 
        violation of this section.
            (2) Civil penalties.--Any person who violates paragraph (1) 
        shall be liable for a civil penalty of $50,000 for each such 
        violation.
            (3) Other penalties.--In addition to the penalties 
        specified in paragraph (2), any violation of this section that 
        violates any other customs or trade law of the United States 
        shall be subject to any applicable civil and criminal penalty, 
        including seizure and forfeiture, that may be imposed under 
        such customs or trade law or title 18, United States Code, with 
        respect to the importation of textile or apparel articles.

   TITLE III--ESTABLISHMENT OF TEXTILE AND APPAREL MANUFACTURING AND 
                           SUPPLIER REGISTRY

SEC. 301. ESTABLISHMENT OF TEXTILE AND APPAREL MANUFACTURING AND 
              SUPPLIER REGISTRY.

    Not later than 180 days after the date of enactment of this Act, 
the President, acting through the Commissioner and in coordination with 
the head of the Office of Textiles and Apparel of the Department of 
Commerce, shall establish an electronic Textile and Apparel 
Manufacturing Supplier Registry pilot program to serve as a centralized 
database of United States producers and manufacturers of thread, yarn, 
fabric, and apparel that supply products to companies in the United 
States, countries that are parties to the North American Free Trade 
Agreement, the Central American Free Trade Agreement, and other free 
trade or preference regions in the Western Hemisphere.

                    TITLE IV--IMPLEMENTATION REPORT

SEC. 401. IMPLEMENTATION REPORT.

    Not later than one year after the date of the enactment of this 
Act, the Commissioner shall submit to the Committee on Ways and Means 
and the Committee on Homeland Security of the House of Representatives, 
the Committee on Finance and the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the co-chairs of the 
Congressional Textile Caucus a report on the implementation of this 
Act.
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