I 

116TH CONGRESS 

2D SESSION H. R. 7408 

To abolish the United States and Foreign Commercial Service, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 29, 2020 

Mr. MCCAUL (for himself and Mr. CUELLAR) introduced the following bill; 

which was referred to the Committee on Foreign Affairs, and in addition 

to the Committees on Financial Services, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To abolish the United States and Foreign Commercial 

Service, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Foreign Trade Mod5 ernization Act of 2020’’. 


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1 SEC. 2. ABOLISHMENT OF UNITED STATES AND FOREIGN 

2 COMMERCIAL SERVICE. 

3 (a) IN GENERAL.—The United States and Foreign 

4 Commercial Service is abolished. 

5 (b) TRANSFER OF FUNCTIONS.—There are trans6 ferred to the Secretary of State all functions that, on the 

7 day before the date of the enactment of this Act, were 

8 authorized to be performed by the United States and For9 eign Commercial Service under any statute, reorganization 

10 plan, Executive order, or other provision of law. 

11 SEC. 3. TRANSFER AND ALLOCATION OF PROPERTY AND 

12 APPROPRIATIONS. 

13 The Secretary of Commerce shall transfer to the Sec14 retary of State all contracts, property, records, and unex15 pended balance of appropriations, authorizations, alloca16 tions, and other funds employed, held, used, arising from, 

17 available to, or to be made available in connection with 

18 the functions of the United States and Foreign Commer19 cial Service transferred under section 2(b), as may be nec20 essary to carry out this Act. 

21 SEC. 4. TRANSFER OF PERSONNEL. 

22 (a) IN GENERAL.—Not later than 180 days after the 

23 date of the enactment of this Act— 

24 (1) the Secretary of Commerce shall transfer to 

25 the Department of State those individuals who on 

26 the day before the date of the enactment of this Act, 


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1 were officers or employees of the United States and 

2 Foreign Commercial Service; and 

3 (2) the Secretary of State shall, in accordance 

4 with subsections (b) and (c), receive those individ5 uals into the Foreign Service of the United States 

6 and convert them, if need be, to the appropriate 

7 class in the Foreign Service Schedule established 

8 under the Foreign Service Act of 1980. 

9 (b) NEW POSITIONS.— 

10 (1) IN GENERAL.—Those individuals trans11 ferred to the Department of State under subsection 

12 (a) shall be deemed economic officers of the Foreign 

13 Service and shall not be subject to any exam or 

14 training under the Foreign Service Act of 1980 as 

15 a condition of assuming such position. 

16 (2) CONFORMING AMENDMENT REGARDING

17 TITLE CHANGE OF CERTAIN OFFICERS OF THE FOR18 EIGN SERVICE.—Subsection (d) of section 708 of the 

19 Foreign Service Act of 1980 (22 U.S.C. 4028) is 

20 amended by striking ‘‘and commercial’’ before ‘‘offi21 cers’’. 

22 (3) SAVINGS PROVISION REGARDING CERTAIN

23 OFFICERS OF THE FOREIGN SERVICE SUBJECT TO

24 TITLE CHANGE.—Any individual in the Foreign 

25 Service who as of the day before the date of the enVerDate Sep 11 2014 20:44 Jul 29, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7408.IH H7408

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1 actment of this Act is a commercial officer shall be 

2 known and referred to as an economic officer on and 

3 after such date, and shall otherwise— 

4 (A) maintain his or her grade, rank, and 

5 class in the Foreign Service Schedule with the 

6 same tenure held immediately preceding such 

7 title change; and 

8 (B) maintain his or her same rate of basic 

9 pay or basic salary rate immediately preceding 

10 such title change. 

11 (c) SAVINGS PROVISION REGARDING CERTAIN OFFI12 CERS OR EMPLOYEES OF THE UNITED STATES AND FOR13 EIGN COMMERCIAL SERVICE.—Any individual transferred 

14 to the Department of State under subsection (a) shall— 

15 (1) maintain his or her grade, rank, and class 

16 in the Foreign Service Schedule with the same ten17 ure held immediately preceding transfer; 

18 (2) maintain his or her same rate of basic pay 

19 or basic salary rate immediately preceding transfer; 

20 and 

21 (3) be made subject to the Foreign Service Act 

22 of 1980 and any other law, rule, regulation, adminis23 trative action, and Executive order governing the 

24 Foreign Service of the United States. 


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1 SEC. 5. INCIDENTAL DISPOSITIONS. 

2 The Director of the Office of Management and Budg3 et, if requested by the Secretary of State, shall make such 

4 incidental dispositions of personnel, assets, liabilities, 

5 grants, contracts, property, records, and unexpended bal6 ances of appropriations, authorizations, allocations, and 

7 other funds held, used, arising from, available to, or to 

8 be made available in connection with the functions of the 

9 United States and Foreign Commercial Service trans10 ferred under section 2(b), as may be necessary to carry 

11 out this Act. 

12 SEC. 6. SAVINGS PROVISION. 

13 All orders, determinations, rules, regulations, per14 mits, agreements, registrations, privileges, and other ad15 ministrative actions— 

16 (1) that have been issued, made, granted, or al17 lowed to become effective by the President, any Fed18 eral agency or official thereof, or by a court of com19 petent jurisdiction, in the performance of functions 

20 exercised by the United States and Foreign Com21 mercial Service on the day before the date of the en22 actment of this Act; and 

23 (2) that are in effect or were final as of the 

24 date of the enactment of this Act, or are to become 

25 effective on or after the date of the enactment of 

26 this Act, 


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1 shall continue in effect according to their terms until 

2 modified, terminated, superseded, set aside, or revoked in 

3 accordance with law by the President, the Secretary of 

4 State, or other authorized official, a court of competent 

5 jurisdiction, or by operation of law. 

6 SEC. 7. ACTIVITIES TO PROMOTE EXPORTS OF GOODS AND 

7 SERVICES FROM THE UNITED STATES. 

8 The Championing American Business through Diplo9 macy Act of 2019 (enacted as title VII of subtitle H of 

10 title I of division J of the Further Consolidated Appropria11 tions Act, 2020 (Public Law 116–94; 22 U.S.C. 9901 et 

12 seq.)) is amended by adding at the end the following: 

13 ‘‘SEC. 712. ACTIVITIES TO PROMOTE EXPORTS OF GOODS 

14 AND SERVICES FROM THE UNITED STATES. 

15 ‘‘(a) IN GENERAL.—The Secretary of State, acting 

16 through the Assistant Secretary for Economic and Busi17 ness Matters and the relevant chiefs of mission, shall place 

18 primary emphasis on the promotion of exports of goods 

19 and services from the United States, particularly by small 

20 and medium-sized businesses, and on the protection of 

21 United States business interests abroad by carrying out 

22 activities such as the following: 

23 ‘‘(1) Identifying United States businesses with 

24 the potential to export goods and services and proVerDate Sep 11 2014 22:23 Jul 23, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7408.IH H7408

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1 viding such businesses with advice and information 

2 on establishing export businesses. 

3 ‘‘(2) Providing United States exporters with in4 formation and advice on the necessary adaptation of 

5 product design and marketing strategy to meet the 

6 differing cultural and technical requirements of for7 eign countries. 

8 ‘‘(3) Providing United States exporters with ac9 tual leads and an introduction to contacts within 

10 foreign countries. 

11 ‘‘(4) Assisting United States exporters in locat12 ing reliable sources of business services in foreign 

13 countries and in their dealings with foreign govern14 ments and enterprises owned by foreign govern15 ments. 

16 ‘‘(5) Assisting the coordination of the efforts of 

17 State and local agencies and private organizations 

18 that seek to promote United States business inter19 ests in foreign countries so as to maximize the effec20 tiveness and minimize the duplication of efforts of 

21 such agencies and organizations. 

22 ‘‘(6) Utilizing district offices established under 

23 subsection (b) as one-stop shops for United States 

24 exporters by— 


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1 ‘‘(A) providing exporters with information 

2 on all export promotion and export finance ac3 tivities of the Federal Government; 

4 ‘‘(B) assisting exporters in identifying 

5 which Federal programs may be of greatest as6 sistance; and 

7 ‘‘(C) assisting exporters in making contact 

8 with such identified Federal programs. 

9 ‘‘(7) Providing United States exporters and ex10 port finance institutions with information on all fi11 nancing and insurance programs of the Export-Im12 port Bank of the United States, the United States 

13 International Development Finance Corporation, the 

14 Trade and Development Program, and the Small 

15 Business Administration, including providing assist16 ance in completing applications for such programs 

17 and working with exporters and export finance insti18 tutions to address any deficiencies in such applica19 tions that have been submitted. 

20 ‘‘(b) DISTRICT OFFICES.—The Secretary of State 

21 shall establish, or maintain if transferred to the Secretary 

22 under the Foreign Trade Modernization Act of 2020, dis23 trict offices of the Foreign Service in any United States 

24 city in a region in which the Secretary, in consultation 


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1 with the Secretary of Commerce, determines that there is 

2 a need for Federal Government export assistance. 

3 ‘‘(c) COOPERATION IN FEDERAL FINANCING AND IN4 SURANCE PROGRAMS.—To assist the Foreign Service in 

5 carrying out subsection (a)(7), the Export-Import Bank 

6 of the United States, the United States International De7 velopment Finance Corporation, the Trade and Develop8 ment Program, and the Small Business Administration 

9 shall each— 

10 ‘‘(1) provide to the Foreign Service complete 

11 and current information on all the programs and fi12 nancing practices of each such agency; and 

13 ‘‘(2) undertake a training program regarding 

14 such programs and practices for economic officers of 

15 the Foreign Service.’’. 

16 SEC. 8. CONFORMING AMENDMENTS. 

17 (a) OMNIBUS TRADE AND COMPETITIVENESS ACT OF

18 1988.— 

19 (1) IN GENERAL.—The following provisions of 

20 the Omnibus Trade and Competitiveness Act of 

21 1988 are repealed: 

22 (A) Section 2301 (15 U.S.C. 4721). 

23 (B) Subsection (c) of section 2303 (15 

24 U.S.C. 4723). 

25 (C) Section 2306 (15 U.S.C. 4725). 


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1 (2) CONFORMING AMENDMENT.—Section 2303 

2 of such Act (15 U.S.C. 4723) is amended by redes3 ignating subsection (d) as subsection (c). 

4 (b) TITLE 5, UNITED STATES CODE.—Section 5315 

5 of title 5, United States Code, is amended by striking ‘‘As6 sistant Secretary of Commerce and Director General of 

7 the United States and Foreign Commercial Service.’’. 

8 (c) TRADE FACILITATION AND TRADE ENFORCE9 MENT ACT OF 2015.—Section 505(c)(1) of the Trade Fa10 cilitation and Trade Enforcement Act of 2015 (15 U.S.C. 

11 4721a(c)(1)) is amended by striking ‘‘acting through the 

12 head of the United States Foreign and Commercial Serv13 ice’’ and inserting ‘‘in consultation with the Assistant Sec14 retary of State for Economic and Business Affairs’’. 

15 (d) FOREIGN SERVICE ACT OF 1980.—The Foreign 

16 Service Act of 1980 is amended— 

17 (1) in section 202(a) (22 U.S.C 3922(a))— 

18 (A) by striking paragraph (3); 

19 (B) by redesignating paragraph (4) as 

20 paragraph (3); and 

21 (C) by moving the margins of paragraph 

22 (3) (as so redesignated) two ems to the left; 

23 and 

24 (2) in section 305(c) (22 U.S.C. 3945(c))— 


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1 (A) by striking ‘‘(1) Appointments to the 

2 Senior Foreign Service by the Secretary of 

3 Commerce shall be excluded’’ and inserting 

4 ‘‘Appointments to the Senior Foreign Service 

5 by the Secretary of Commerce made on or be6 fore the date of the enactment of the Foreign 

7 Trade Modernization Act of 2020 shall be ex8 cluded’’; and 

9 (B) by striking paragraphs (2) and (3). 

10 (e) REFERENCES.—Any reference in any statute, re11 organization plan, Executive order, regulation, agreement, 

12 determination, or other official document or proceeding 

13 to— 

14 (1) the Assistant Secretary of Commerce and 

15 Director General of the Commercial Service shall be 

16 deemed to refer to the Secretary of State; and 

17 (2) the United States and Foreign Commercial 

18 Service shall be deemed to refer to the Department 

19 of State. 

Æ 


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