II

103D CONGRESS

1ST SESSION S. 106

To modernize the United States Customs Service.

IN THE SENATE OF THE UNITED STATES

JANUARY 21 (legislative day, JANUARY 5), 1993

Mr. HATCH (for himself, Mr. ROCKEFELLER, Mr. ROTH, Mr. GRASSLEY, and

Mr. DANFORTH) introduced the following bill; which was read twice and

referred to the Committee on Finance

A BILL

To modernize the United States Customs Service.

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; REFERENCE; TABLE OF CON4 TENTS.

5 (a) SHORT TITLE.—This Act may be cited as the

6 ‘‘Customs Modernization and Informed Compliance Act’’.

7 (b) REFERENCE.—Whenever in title I, II, or III of

8 this Act an amendment or repeal is expressed in terms

9 of an amendment to, or repeal of, a part, section, sub10 section, or other provision, the reference shall be consid11 ered to be made to a part, section, subsection, or other
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1 provision of the Tariff Act of 1930 (19 U.S.C. 1202 et

2 seq.).

3 (c) TABLE OF CONTENTS.—The table of contents is

4 as follows:

Section 1. Short title; reference; table of contents.

TITLE I—IMPROVEMENTS IN CUSTOMS ENFORCEMENT

Sec. 101. Penalties for violations of arrival, reporting, entry, and clearance requirements.

Sec. 102. Failure to declare.

Sec. 103. Customs testing laboratories; detention of merchandise.

Sec. 104. Recordkeeping.

Sec. 105. Examination of books and witnesses.

Sec. 106. Judicial enforcement.

Sec. 107. Review of protests.

Sec. 108. Repeal of provision relating to reliquidation on account of fraud.

Sec. 109. Penalties relating to manifests.

Sec. 110. Unlawful unlading or transshipment.

Sec. 111. Penalties for fraud, gross negligence, and negligence; prior disclosure.

Sec. 112. Penalties for false drawback claims.

Sec. 113. Interpretive rulings and decisions; public information.

Sec. 114. Seizure authority.

TITLE II—NATIONAL CUSTOMS AUTOMATION PROGRAM

Sec. 201. National customs automation program.

Sec. 202. Drawback and refunds.

Sec. 203. Effective date of rates of duty.

Sec. 204. Definitions.

Sec. 205. Manifests.

Sec. 206. Invoice contents.

Sec. 207. Entry of merchandise.

Sec. 208. Appraisement and other procedures.

Sec. 209. Voluntary reliquidations.

Sec. 210. Appraisement regulations.

Sec. 211. Limitation on liquidation.

Sec. 212. Payment of duties and fees.

Sec. 213. Abandonment and damage.

Sec. 214. Customs officer’s immunity.

Sec. 215. Protests.

Sec. 216. Refunds and errors.

Sec. 217. Bonds and other security.

Sec. 218. Customhouse brokers.

Sec. 219. Conforming amendments.

TITLE III—MISCELLANEOUS AMENDMENTS TO THE TARIFF ACT

OF 1930

Sec. 301. Administrative exemptions.

Sec. 302. Report of arrival.

Sec. 303. Entry of vessels.
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Sec. 304. Unlawful return of foreign vessel papers.

Sec. 305. Vessels not required to enter.

Sec. 306. Unlading.

Sec. 307. Declarations.

Sec. 308. General orders.

Sec. 309. Unclaimed merchandise.

Sec. 310. Destruction of merchandise.

Sec. 311. Proceeds of sale.

Sec. 312. Entry under regulations.

Sec. 313. American trademarks.

Sec. 314. Seizure.

Sec. 315. Customs Forfeiture Fund.

Sec. 316. Limitation on actions.

Sec. 317. Collection of fees on behalf of other agencies.

Sec. 318. Authority to settle claims.

Sec. 319. Use of private collection agencies.

TITLE IV—MISCELLANEOUS PROVISIONS AND CONSEQUENTIAL

AND CONFORMING AMENDMENTS TO OTHER LAWS

Sec. 401. Amendments to the Harmonized Tariff Schedule.

Sec. 402. Amendment to the Internal Revenue Code of 1986.

Sec. 403. Amendments to title 28, United States Code.

Sec. 404. Amendments to the revised statutes of the United States.

Sec. 405. Amendments to title 18, United States Code.

Sec. 406. Amendment to the Act to Prevent Pollution from Ships.

Sec. 407. Amendments to the Act of November 6, 1966.

Sec. 408. Repeal of obsolete provisions of law.

Sec. 409. Reports to Congress.

Sec. 410. Applicability of amendments to entry or withdrawal of goods.

1 TITLE I—IMPROVEMENTS IN

2 CUSTOMS ENFORCEMENT

3 SEC. 101. PENALTIES FOR VIOLATIONS OF ARRIVAL, RE4 PORTING, ENTRY, AND CLEARANCE REQUIRE5 MENTS.

6 Section 436 (19 U.S.C. 1436) is amended—

7 (1) by amending subsection (a)—

8 (A) by striking out ‘‘433’’ in paragraph (1)

9 and inserting ‘‘431, 433, or 434 of this Act or

10 section 4197 of the Revised Statutes of the

11 United States (46 U.S.C. App. 91)’’,
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1 (B) by amending paragraph (2) to read as

2 follows:

3 ‘‘(2) to present or transmit, electronically or

4 otherwise, any forged, altered, or false document,

5 paper information, data or manifest to the Customs

6 Service under section 431(e), 433(d), or 434 of this

7 Act or section 4197 of the Revised Statutes of the

8 United States (46 U.S.C. App. 91) without revealing

9 the facts; or’’, and

10 (C) by amending paragraph (3) to read as

11 follows:

12 ‘‘(3) to fail to make entry or to obtain clearance

13 as required by section 434 or 644 of this Act, sec14 tion 4197 of the Revised Statutes of the United

15 States (46 U.S.C. App. 91), or section 1109 of the

16 Federal Aviation Act of 1958 (49 U.S.C. App.

17 1509); or’’; and

18 (2) by striking out ‘‘AND ENTRY’’ in the sec19 tion heading and inserting ‘‘ENTRY, AND CLEAR20 ANCE’’.

21 SEC. 102. FAILURE TO DECLARE.

22 Section 497(a) (19 U.S.C. 1497(a)) is amended—

23 (1) by inserting ‘‘or transmitted’’ after ‘‘made’’

24 in paragraph (1)(A); and
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1 (2) by amending paragraph (2)(A) to read as

2 follows:

3 ‘‘(A) if the article is a controlled sub4 stance, either $500 or an amount equal to

5 1,000 percent of the value of the article, which6 ever amount is greater; and’’.

7 SEC. 103. CUSTOMS TESTING LABORATORIES; DETENTION

8 OF MERCHANDISE.

9 (a) AMENDMENT.—Section 499 (19 U.S.C. 1499) is

10 amended to read as follows:

11 ‘‘SEC. 499. EXAMINATION OF MERCHANDISE.

12 ‘‘(a) ENTRY EXAMINATION.—

13 ‘‘(1) IN GENERAL.—Imported merchandise that

14 is required by law or regulation to be inspected, ex15 amined, or appraised shall not be delivered from cus16 toms custody (except under such bond or other secu17 rity as may be prescribed by the Secretary to assure

18 compliance with all applicable laws, regulations, and

19 instructions which the Secretary or the Customs

20 Service is authorized to enforce) until the merchan21 dise has been inspected, appraised, or examined and

22 is reported by the Customs Service to have been

23 truly and correctly invoiced and found to comply

24 with the requirements of the laws of the United

25 States.
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1 ‘‘(2) EXAMINATION.—The Customs Service—

2 ‘‘(A) shall designate the packages or quan3 tities of merchandise covered by any invoice or

4 entry which are to be opened and examined for

5 the purpose of appraisement or otherwise;

6 ‘‘(B) shall order such packages or quan7 tities to be sent to such place as is designated

8 by the Secretary by regulation for such pur9 pose;

10 ‘‘(C) may require such additional packages

11 or quantities as the Secretary considers nec12 essary for such purpose; and

13 ‘‘(D) shall inspect a sufficient number of

14 shipments, and shall examine a sufficient num15 ber of entries, to ensure compliance with the

16 laws enforced by the Customs Service.

17 ‘‘(3) UNSPECIFIED ARTICLES.—If any package

18 contains any article not specified in the invoice or

19 entry and, in the opinion of the Customs Service, the

20 article was omitted from the invoice or entry—

21 ‘‘(A) with fraudulent intent on the part of

22 the seller, shipper, owner, agent, importer of

23 record, or entry filer, the contents of the entire

24 package in which such article is found shall be

25 subject to seizure; or
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1 ‘‘(B) without fraudulent intent, the value

2 of the article shall be added to the entry and

3 the duties, fees, and taxes thereon paid accord4 ingly.

5 ‘‘(4) DEFICIENCY.—If a deficiency is found in

6 quantity, weight, or measure in the examination of

7 any package, the person finding the deficiency shall

8 make a report thereof to the Customs Service. The

9 Customs Service shall make allowance for the defi10 ciency in the liquidation of duties.

11 ‘‘(5) INFORMATION REQUIRED FOR RELEASE.—

12 If an examination is conducted, any information re13 quired for release shall be provided, either electroni14 cally or in paper form, to the Customs Service at the

15 port of examination. The absence of such informa16 tion does not limit the authority of the Customs

17 Service to conduct an examination.

18 ‘‘(b) TESTING LABORATORIES.—

19 ‘‘(1) ACCREDITATION OF PRIVATE TESTING

20 LABORATORIES.—The Customs Service shall estab21 lish and implement a procedure, under regulations

22 promulgated by the Secretary, for accrediting pri23 vate laboratories within the United States which

24 may be used to perform tests (that would otherwise

25 be performed by Customs Service laboratories) to es-
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1 tablish the characteristics, quantities, or composition

2 of imported merchandise. Such regulations—

3 ‘‘(A) shall establish the conditions required

4 for the laboratories to receive and maintain ac5 creditation for purposes of this subsection;

6 ‘‘(B) shall establish the conditions regard7 ing the suspension and revocation of accredita8 tion, which may include the imposition of a

9 monetary penalty not to exceed $100,000 and

10 such penalty is in addition to the recovery, from

11 a gauger or laboratory accredited under para12 graph (1), of any loss of revenue that may have

13 occurred, but the Customs Service—

14 ‘‘(i) may seek to recover lost revenue

15 only in cases where the gauger or labora16 tory intentionally falsified the analysis or

17 gauging report in collusion with the im18 porter; and

19 ‘‘(ii) shall neither assess penalties nor

20 seek to recover lost revenue because of a

21 good faith difference of professional opin22 ion; and

23 ‘‘(C) may provide for the imposition of a

24 reasonable charge for accreditation and periodic

25 reaccreditation.
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1 The collection of any charge for accreditation and

2 reaccreditation under this section is not prohibited

3 by section 13031(e)(6) of the Consolidated Omnibus

4 Budget Reconciliation Act of 1985 (19 U.S.C.

5 58c(e)(6)).

6 ‘‘(2) APPEAL OF ADVERSE ACCREDITATION DE7 CISIONS.—A laboratory applying for accreditation,

8 or that is accredited, under this section may contest

9 any decision or order of the Customs Service deny10 ing, suspending, or revoking accreditation, or impos11 ing a monetary penalty, by commencing an action in

12 accordance with chapter 169 of title 28, United

13 States Code, in the Court of International Trade

14 within 60 days after issuance of the decision or

15 order.

16 ‘‘(3) TESTING BY ACCREDITED LABORA17 TORIES.—When requested by an importer of record

18 of merchandise, the Customs Service shall authorize

19 the release to the importer of a representative sam20 ple of the merchandise for testing, at the expense of

21 the importer, by a laboratory accredited under para22 graph (1). The testing results from a laboratory ac23 credited under paragraph (1) that are submitted by

24 an importer of record with respect to merchandise in

25 an entry shall, in the absence of testing results ob-
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1 tained from a Customs Service laboratory, be accept2 ed by the Customs Service if the importer of record

3 certifies that the sample tested was taken from the

4 merchandise in the entry. Nothing in this subsection

5 shall be construed to limit in any way or preclude

6 the authority of the Customs Service to test or ana7 lyze any sample or merchandise independently.

8 ‘‘(4) AVAILABILITY OF TESTING PROCEDURE,

9 METHODOLOGIES, AND INFORMATION.—Testing pro10 cedures and methodologies used by the Customs

11 Service, and information resulting from any testing

12 conducted by the Customs Service, shall be made

13 available as follows:

14 ‘‘(A) Testing procedures and methodologies

15 shall be made available upon request to any

16 person unless the procedures or methodologies

17 are—

18 ‘‘(i) proprietary to the holder of a

19 copyright or patent related to such proce20 dures or methodologies; or

21 ‘‘(ii) developed by the Customs Serv22 ice for enforcement purposes.

23 ‘‘(B) Information resulting from testing

24 shall be made available upon request to the im-
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1 porter of record and any agent thereof unless

2 the information—

3 ‘‘(i) is proprietary to the holder of a

4 copyright or patent related to the proce5 dures or methodologies; or

6 ‘‘(ii) reveals information developed by

7 the Customs Service for enforcement pur8 poses.

9 ‘‘(5) MISCELLANEOUS PROVISIONS.—For pur10 poses of this subsection—

11 ‘‘(A) any reference to a private laboratory

12 includes a reference to a private gauger; and

13 ‘‘(B) accreditation of private laboratories

14 extends only to the performance of functions by

15 such laboratories that are within the scope of

16 those responsibilities for determinations of the

17 elements relating to admissibility, quantity,

18 composition, or characteristics of imported mer19 chandise that are vested in, or delegated to, the

20 Customs Service.

21 ‘‘(c) DETENTIONS.—Except in the case of merchan22 dise with respect to which the determination of admissibil23 ity is vested in an agency other than the Customs Service,

24 the following apply:
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1 ‘‘(1) IN GENERAL.—Within the 5-day period

2 (excluding weekends and holidays) following the date

3 on which merchandise is presented for customs ex4 amination, the Customs Service shall decide whether

5 to release or detain the merchandise. Merchandise

6 which is not released within such 5-day period shall

7 be considered to be detained merchandise.

8 ‘‘(2) NOTICE OF DETENTION.—The Customs

9 Service shall issue a notice to the importer or other

10 party having an interest in detained merchandise no

11 later than 5 days, excluding weekends and holidays,

12 after the decision to detain the merchandise is made.

13 The notice shall advise the importer or other inter14 ested party of—

15 ‘‘(A) the initiation of the detention;

16 ‘‘(B) the specific reason for the detention;

17 ‘‘(C) the anticipated length of the deten18 tion;

19 ‘‘(D) the nature of the tests or inquiries to

20 be conducted; and

21 ‘‘(E) the nature of any information which,

22 if supplied to the Customs Service, may acceler23 ate the disposition of the detention.

24 ‘‘(3) TESTING RESULTS.—Upon request by the

25 importer or other party having an interest in de-
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1 tained merchandise, the Customs Service shall pro2 vide the party with copies of the results of any test3 ing conducted by the Customs Service on the mer4 chandise and a description of the testing procedures

5 and methodologies (unless such procedures or meth6 odologies are proprietary to the holder of a copyright

7 or patent or were developed by the Customs Service

8 for enforcement purposes). The results and test de9 scription shall be in sufficient detail to permit the

10 duplication and analysis of the testing and the re11 sults.

12 ‘‘(4) SEIZURE AND FORFEITURE.—If otherwise

13 provided by law, detained merchandise may be seized

14 and forfeited.

15 ‘‘(5) EFFECT OF FAILURE TO MAKE DETER16 MINATION.—

17 ‘‘(A) The failure by the Customs Service to

18 make a final determination with respect to the

19 admissibility of detained merchandise within 30

20 days after the merchandise has been presented

21 for customs examination, or such longer period

22 if specifically authorized by law, shall be treated

23 as a decision of the Customs Service to exclude

24 the merchandise for purposes of section

25 514(a)(4).
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1 ‘‘(B) For purposes of section 1581 of title

2 28, United States Code, a protest against the

3 decision to exclude the merchandise which has

4 not been allowed or denied in whole or in part

5 before the 30th day after the day on which the

6 protest was filed shall be treated as having been

7 denied on such 30th day.

8 ‘‘(C) Notwithstanding section 2639 of title

9 28, United States Code, once an action respect10 ing a detention is commenced, unless the Cus11 toms Service establishes by a preponderance of

12 the evidence that an admissibility decision has

13 not been reached for good cause, the court shall

14 grant the appropriate relief which may include,

15 but is not limited to, an order to cancel the de16 tention and release the merchandise.’’.

17 (b) EXISTING LABORATORIES.—Accreditation under

18 section 499(b) of the Tariff Act of 1930 (as added by sub19 section (a)) is not required for any private laboratory (in20 cluding any gauger) that was accredited or approved by

21 the Customs Service as of the day before the date of the

22 enactment of this Act; but any such laboratory is subject

23 to reaccreditation under the provisions of such section and

24 the regulations promulgated thereunder.
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1 SEC. 104. RECORDKEEPING.

2 Section 508 (19 U.S.C. 1508) is amended—

3 (1) by amending subsection (a) to read as fol4 lows:

5 ‘‘(a) REQUIREMENTS.—Any—

6 ‘‘(1) owner, importer, consignee, importer of

7 record, entry filer, or other party who—

8 ‘‘(A) imports, files a drawback claim, or

9 transports or stores merchandise carried or held

10 under bond, or

11 ‘‘(B) knowingly causes the importation or

12 transportation or storage of merchandise car13 ried or held under bond into or from the cus14 toms territory of the United States;

15 ‘‘(2) agent of any party described in paragraph

16 (1); or

17 ‘‘(3) person whose activities require the filing of

18 a declaration or entry, or both;

19 shall make, keep, and render for examination and inspec20 tion such records (including, but not limited to, state21 ments, declarations, documents and electronically gen22 erated or machine readable data) which—

23 ‘‘(A) pertain to any such activity, or to the in24 formation contained in the documents, records or

25 electronically generated or machine readable data re-
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1 quired by this Act in connection with such activity;

2 and

3 ‘‘(B) are normally kept in the ordinary course

4 of business.’’; and

5 (2) by amending subsection (c) to read as fol6 lows:

7 ‘‘(c) PERIOD OF TIME.—The records required by sub8 sections (a) and (b) shall be kept for such period of time,

9 not to exceed 5 years from the date of entry or expor10 tation, as appropriate, as the Secretary shall prescribe; ex11 cept that records for any drawback claim shall be kept

12 until the 3rd anniversary of the date of payment of the

13 claim.’’.

14 SEC. 105. EXAMINATION OF BOOKS AND WITNESSES.

15 Section 509 (19 U.S.C. 1509) is amended as follows:

16 (1) Subsection (a) is amended—

17 (A) by striking out ‘‘and taxes’’ wherever

18 it appears and inserting ‘‘, fees and taxes’’;

19 (B) by inserting ‘‘or electronically gen20 erated or machine readable data,’’ after ‘‘other

21 document,’’ in paragraph (1);

22 (C) by striking out the semicolon at the

23 end of paragraph (1) and inserting ‘‘, except

24 that—
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1 ‘‘(A) if such record, statement, declaration,

2 document, or electronically stored or transmit3 ted information or data is required by law or

4 regulation for the entry of the merchandise

5 (whether or not the Customs Service required

6 its presentation at the time of entry) it shall be

7 provided to the Customs Service within a rea8 sonable time after demand for its production is

9 made, taking into consideration the number,

10 type, and age of the item demanded; and

11 ‘‘(B) if a person of whom demand is made

12 under subparagraph (A) fails to comply with

13 the demand, the person may be subject to pen14 alty under subsection (g);’’;

15 (D) by amending that part of paragraph

16 (2) that precedes subparagraph (D) to read as

17 follows:

18 ‘‘(2) summon, upon reasonable notice—

19 ‘‘(A) the person who—

20 ‘‘(i) imported, or knowingly caused to

21 be imported, merchandise into the customs

22 territory of the United States,

23 ‘‘(ii) exported merchandise, or know24 ingly caused merchandise to be exported,

25 to Canada,
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1 ‘‘(iii) transported or stored merchan2 dise that was or is carried or held under

3 customs bond, or knowingly caused such

4 transportation or storage, or

5 ‘‘(iv) filed a declaration, entry, or

6 drawback claim with the Customs Service;

7 ‘‘(B) any officer, employee, or agent of any

8 person described in subparagraph (A);

9 ‘‘(C) any person having possession, custody

10 or care of records (including electronically gen11 erated or machine readable data) relating to the

12 importation or other activity described in sub13 paragraph (A); or’’; and

14 (E) by striking out the comma at the end

15 of subparagraph (D) and inserting a semicolon.

16 (2) Subsections (b) and (c) are redesignated as

17 subsections (c) and (d), respectively.

18 (3) The following new subsection is inserted

19 after subsection (a):

20 ‘‘(b) REGULATORY AUDIT PROCEDURES.—

21 ‘‘(1) In conducting a regulatory audit under

22 this section (which does not include a quantity ver23 ification for a customs bonded warehouse or general

24 purpose foreign trade zone), the Customs Service

25 auditor shall provide the person being audited, in
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1 advance of the audit, with a reasonable estimate of

2 the time to be required for the audit. If in the

3 course of an audit it becomes apparent that addi4 tional time will be required, the Customs Service

5 auditor shall immediately provide a further estimate

6 of such additional time.

7 ‘‘(2) Before commencing an audit, the Customs

8 Service auditor shall inform the party to be audited

9 of his right to an entry conference at which time the

10 purpose will be explained and an estimated termi11 nation date set. Upon completion of on-site audit ac12 tivities, the Customs Service auditor shall schedule a

13 closing conference to explain the preliminary results

14 of the audit.

15 ‘‘(3) Except as provided in paragraph (5), if the

16 estimated or actual termination date for an audit

17 passes without the Customs Service auditor provid18 ing a closing conference to explain the results of the

19 audit, the person being audited may petition in writ20 ing for such a conference to the appropriate regional

21 commissioner, who, upon receipt of such a request,

22 shall provide for such a conference to be held within

23 15 days after the date of receipt.

24 ‘‘(4) Except as provided in paragraph (5), the

25 Customs Service auditor shall complete the formal
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1 written audit report within 90 days following the

2 closing conference unless the appropriate regional

3 commissioner provides written notice to the person

4 being audited of the reason for any delay and the

5 anticipated completion date. After application of any

6 exemption contained in section 552 of title 5, United

7 States Code, a copy of the formal written audit re8 port shall be sent to the person audited no later

9 than 30 days following completion of the report.

10 ‘‘(5) Paragraphs (3) and (4) shall not apply

11 after the Customs Service commences a formal in12 vestigation with respect to the issue involved.’’.

13 (4) Subsection (d) (as redesignated by para14 graph (2)) is amended—

15 (A) by striking out ‘‘or documents’’ in

16 paragraph (1)(A) and inserting ‘‘documents, or

17 electronically generated or machine readable

18 data’’;

19 (B) by inserting ‘‘, unless such custom20 house broker is the importer of record on an

21 entry’’ after ‘‘broker’’ in paragraph (1)(C)(i);

22 (C) by striking out ‘‘import’’ in each of

23 paragraphs (2)(B) and (4)(B);
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1 (D) by inserting ‘‘described in section

2 508’’ after ‘‘transactions’’ in each of para3 graphs (2)(B) and (4)(B); and

4 (E) by inserting ‘‘, fees,’’ after ‘‘duties’’ in

5 paragraph (4)(A).

6 (5) The following new subsections are added at

7 the end thereof:

8 ‘‘(e) LIST OF RECORDS AND INFORMATION.—The

9 Customs Service shall identify and publish a list of the

10 records or entry information that is required to be main11 tained and produced under subsection (a)(1)(A).

12 ‘‘(f) RECORDKEEPING COMPLIANCE PROGRAM.—

13 ‘‘(1) IN GENERAL.—After consultation with the

14 importing community, the Customs Service shall by

15 regulation establish a recordkeeping compliance pro16 gram which the parties listed in section 508(a) may

17 participate in after being certified by the Customs

18 Service under paragraph (2). Participation in the

19 recordkeeping compliance program by recordkeepers

20 is voluntary.

21 ‘‘(2) CERTIFICATION.—A recordkeeper may be

22 certified as a participant in the recordkeeping com23 pliance program after meeting the general record24 keeping requirements established under the program

25 or after negotiating an alternative program suited to
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1 the needs of the recordkeeper and the Customs Serv2 ice. Certification requirements shall take into ac3 count the size and nature of the importing business

4 and the volume of imports. In order to be certified,

5 the recordkeeper must be able to demonstrate that

6 it—

7 ‘‘(A) understands the legal requirements

8 for recordkeeping, including the nature of the

9 records required to be maintained and produced

10 and the time periods involved;

11 ‘‘(B) has in place procedures to explain the

12 recordkeeping requirements to those employees

13 who are involved in the preparation, mainte14 nance, and production of required records;

15 ‘‘(C) has in place procedures regarding the

16 preparation and maintenance of required

17 records, and the production of such records to

18 the Customs Service;

19 ‘‘(D) has designated a dependable individ20 ual or individuals to be responsible for record21 keeping compliance under the program and

22 whose duties include maintaining familiarity

23 with the recordkeeping requirements of the

24 Customs Service;
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1 ‘‘(E) has a record maintenance procedure

2 approved by the Customs Service for original

3 records, or, if approved by the Customs Service,

4 for alternative records or recordkeeping formats

5 other than the original records; and

6 ‘‘(F) has procedures for notifying the Cus7 toms Service of occurrences of variances to, and

8 violations of, the requirements of the record9 keeping compliance program or the negotiated

10 alternative programs, and for taking corrective

11 action when notified by the Customs Service of

12 violations or problems regarding such program.

13 ‘‘(g) PENALTIES.—

14 ‘‘(1) DEFINITION.—For purposes of this sub15 section, the term ‘information’ means any record,

16 statement, declaration, document, or electronically

17 stored or transmitted information or data referred to

18 in subsection (a)(1)(A).

19 ‘‘(2) EFFECTS OF FAILURE TO COMPLY WITH

20 DEMAND.—Except as provided in paragraph (4), if

21 a person fails to comply with a lawful demand for

22 information under subsection (a)(1)(A) the following

23 provisions apply:

24 ‘‘(A) If the failure to comply is a result of

25 the willful failure of the person to maintain,
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1 store, or retrieve the demanded information,

2 such person shall be subject to a penalty, for

3 each release of merchandise, not to exceed

4 $100,000, or an amount equal to 75 percent of

5 the appraised value of the merchandise, which6 ever amount is less.

7 ‘‘(B) If the failure to comply is a result of

8 the negligence of the person in maintaining,

9 storing, or retrieving the demanded informa10 tion, such person shall be subject to a penalty,

11 for each release of merchandise, not to exceed

12 $10,000, or an amount equal to 40 percent of

13 the appraised value of the merchandise, which14 ever amount is less.

15 ‘‘(C) In addition to any penalty imposed

16 under subparagraph (A) or (B) regarding de17 manded information, if such information related

18 to the eligibility of merchandise for a column 1

19 special rate of duty under title I, the entry of

20 such merchandise—

21 ‘‘(i) if unliquidated, shall be liquidated

22 at the applicable column 1 general rate of

23 duty; or

24 ‘‘(ii) if liquidated within the 2-year

25 period preceding the date of the demand,
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1 shall be reliquidated, notwithstanding the

2 time limitation in section 514 or 520, at

3 the applicable column 1 general rate of

4 duty;

5 except that any liquidation or reliquidation

6 under clause (i) or (ii) shall be at the applicable

7 column 2 rate of duty if the Customs Service

8 demonstrates that the merchandise should be

9 dutiable at such rate.

10 ‘‘(3) AVOIDANCE OF PENALTY.—No penalty

11 may be assessed under this subsection if the person

12 can show—

13 ‘‘(A) that the loss of the demanded infor14 mation was the result of an act of God or other

15 natural casualty or disaster beyond the fault of

16 such person or an agent of the person;

17 ‘‘(B) on the basis of other evidence satis18 factory to the Customs Service, that the de19 mand was substantially complied with; or

20 ‘‘(C) the information demanded was pre21 sented to and retained by the Customs Service

22 at the time of entry or submitted in response to

23 an earlier demand.
26

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1 ‘‘(4) PENALTIES NOT EXCLUSIVE.—Any penalty

2 imposed under this subsection shall be in addition to

3 any other penalty provided by law except for—

4 ‘‘(A) a penalty imposed under section 592

5 for a material omission of the demanded infor6 mation, or

7 ‘‘(B) disciplinary action taken under sec8 tion 641.

9 ‘‘(5) REMISSION OR MITIGATION.—A penalty

10 imposed under this section may be remitted or miti11 gated under section 618.

12 ‘‘(6) CUSTOMS SUMMONS.—Nothing in this sub13 section shall limit or preclude the Customs Service

14 from issuing, or seeking the enforcement of, a cus15 toms summons.

16 ‘‘(7) ALTERNATIVES TO PENALTIES.—

17 ‘‘(A) IN GENERAL.—When a recordkeeper

18 who—

19 ‘‘(i) has been certified as a participant

20 in the recordkeeping compliance program

21 under subsection (f); and

22 ‘‘(ii) is generally in compliance with

23 the appropriate procedures and require24 ments of the program;
27

•S 106 IS

1 does not produce a demanded record or infor2 mation for a specific release or provide the in3 formation by acceptable alternative means, the

4 Customs Service, in the absence of willfulness

5 or repeated violations, shall issue a written no6 tice of the violation to the recordkeeper in lieu

7 of a monetary penalty. Repeated violations by

8 the recordkeeper may result in the issuance of

9 penalties and removal of certification under the

10 program until corrective action, satisfactory to

11 the Customs Service, is taken.

12 ‘‘(B) CONTENTS OF NOTICE.—A notice of

13 violation issued under subparagraph (A) shall—

14 ‘‘(i) state that the recordkeeper has

15 violated the recordkeeping requirements;

16 ‘‘(ii) indicate the record or informa17 tion which was demanded; and

18 ‘‘(iii) warn the recordkeeper that fu19 ture failures to produce demanded records

20 or information may result in the imposition

21 of monetary penalties.

22 ‘‘(C) RESPONSE TO NOTICE.—Within a

23 reasonable time after receiving written notice

24 under subparagraph (A), the recordkeeper shall
28

•S 106 IS

1 notify the Customs Service of the steps it has

2 taken to prevent a recurrence of the violation.

3 ‘‘(D) REGULATIONS.—The Secretary shall

4 promulgate regulations to implement this para5 graph. Such regulations may specify the time

6 periods for compliance with a demand for infor7 mation and provide guidelines which define re8 peated violations for purposes of this para9 graph. Any penalty issued for a recordkeeping

10 violation shall take into account the degree of

11 compliance compared to the total number of im12 portations, the nature of the demanded records

13 and the recordkeeper’s cooperation.’’.

14 SEC. 106. JUDICIAL ENFORCEMENT.

15 The second sentence of section 510(a) (19 U.S.C.

16 1510(a)) is amended by inserting ‘‘and such court may

17 assess a monetary penalty’’ after ‘‘as a contempt thereof’’.

18 SEC. 107. REVIEW OF PROTESTS.

19 Section 515 (19 U.S.C. 1515) is amended by insert20 ing at the end the following new subsections:

21 ‘‘(c) If a protesting party believes that an application

22 for further review was erroneously or improperly denied

23 or was denied without authority for such action, it may

24 file with the Commissioner of Customs a written request

25 that the denial of the application for further review be set
29

•S 106 IS

1 aside. Such request must be filed within 90 days after the

2 date of the notice of the denial. The Commissioner of Cus3 toms may review such request and, based solely on the

4 information before the Customs Service at the time the

5 application for further review was denied, may set aside

6 the denial of the application for further review and void

7 the denial of protest, if appropriate. If the Commissioner

8 of Customs fails to act within 30 days after the date of

9 the request, the request shall be considered denied. All de10 nials of protests are effective from the date of original de11 nial for purposes of section 2636 of title 28, United States

12 Code. If an action is commenced in the Court of Inter13 national Trade that arises out of a protest or an applica14 tion for further review, all administrative action pertaining

15 to such protest or application shall terminate and any ad16 ministrative action taken subsequent to the commence17 ment of the action is null and void.

18 ‘‘(d) If a protest is timely and properly filed, but is

19 denied contrary to proper instructions, the Customs Serv20 ice may on its own initiative, or pursuant to a written re21 quest by the protesting party filed with the appropriate

22 district director within 90 days after the date of the pro23 test denial, void the denial of the protest.’’.
30

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1 SEC. 108. REPEAL OF PROVISION RELATING TO RELIQUIDA2 TION ON ACCOUNT OF FRAUD.

3 Section 521 (19 U.S.C. 1521) is repealed.

4 SEC. 109. PENALTIES RELATING TO MANIFESTS.

5 Section 584 (19 U.S.C. 1584) is amended—

6 (1) by amending subsection (a)—

7 (A) by striking out ‘‘appropriate customs

8 officer’’ wherever it appears and inserting

9 ‘‘Customs Service’’,

10 (B) by striking out ‘‘officer demanding the

11 same’’ in paragraph (1) and inserting ‘‘officer

12 (whether of the Customs Service or the Coast

13 Guard) demanding the same’’, and

14 (C) by inserting ‘‘(electronically or other15 wise)’’ after ‘‘submission’’ in the last sentence

16 of paragraph (1); and

17 (2) by amending subsection (b)—

18 (A) by striking out ‘‘the appropriate cus19 toms officer’’, ‘‘he’’ (except in paragraph

20 (1)(F)), and ‘‘such officer’’ wherever they ap21 pear and inserting ‘‘the Customs Service’’,

22 (B) by striking out ‘‘written’’ wherever it

23 appears (other than paragraph (1)(F)),

24 (C) by inserting ‘‘or electronically trans25 mit’’ after ‘‘issue’’ wherever it appears, and
31

•S 106 IS

1 (D) by striking out ‘‘his intention’’ in the

2 first sentence of paragraph (1) and inserting

3 ‘‘intent’’.

4 SEC. 110. UNLAWFUL UNLADING OR TRANSSHIPMENT.

5 Section 586 (19 U.S.C. 1586) is amended—

6 (1) by inserting ‘‘, or of a hovering vessel which

7 has received or delivered merchandise while outside

8 the territorial sea,’’ after ‘‘from a foreign port or

9 place’’ wherever it appears; and

10 (2) by amending subsection (f)—

11 (A) by striking out ‘‘the appropriate cus12 toms officer of the’’ and ‘‘the appropriate cus13 toms officer within the’’ and inserting ‘‘the

14 Customs Service at the’’; and

15 (B) by striking out ‘‘the appropriate cus16 toms officer is’’ and inserting ‘‘the Customs

17 Service is’’.

18 SEC. 111. PENALTIES FOR FRAUD, GROSS NEGLIGENCE,

19 AND NEGLIGENCE; PRIOR DISCLOSURE.

20 Section 592 (19 U.S.C. 1592) is amended—

21 (1) by inserting ‘‘or electronically transmitted

22 data or information’’ after ‘‘document’’ in subsection

23 (a)(1)(A)(i);

24 (2) by inserting ‘‘The mere nonintentional rep25 etition by an electronic system of an initial clerical
32

•S 106 IS

1 error does not constitute a pattern of negligent con2 duct.’’ at the end of subsection (a)(2);

3 (3) by amending subsection (b)—

4 (A) by amending the first sentence of

5 paragraph (1)(A)—

6 (i) by striking out ‘‘the appropriate

7 customs officer’’ and inserting ‘‘the Cus8 toms Service’’,

9 (ii) by striking out ‘‘he’’ and inserting

10 ‘‘it’’, and

11 (iii) by striking out ‘‘his’’ and insert12 ing ‘‘its’’, and

13 (B) by amending paragraph (2)—

14 (i) by striking out ‘‘the appropriate

15 customs officer’’ wherever it appears and

16 inserting ‘‘the Customs Service’’,

17 (ii) by striking out ‘‘such officer’’

18 wherever it appears and inserting ‘‘the

19 Customs Service’’, and

20 (iii) by striking out ‘‘he’’ wherever it

21 appears and inserting ‘‘it’’;

22 (4) by amending subsection (c)(4)—

23 (A) by striking ‘‘time of disclosure or with24 in thirty days, or such longer period as the ap25 propriate customs officer may provide, after no-
33

•S 106 IS

1 tice by the appropriate customs officer of his’’

2 in subparagraphs (A)(i) and (B), and inserting

3 ‘‘time of disclosure, or within 30 days (or such

4 longer period as the Customs Service may pro5 vide) after notice by the Customs Service of

6 its’’; and

7 (B) by inserting after the last sentence the

8 following: ‘‘For purposes of this section, a for9 mal investigation of a violation is considered to

10 be commenced with regard to the disclosing

11 party and the disclosed information on the date

12 recorded in writing by the Customs Service as

13 the date on which facts and circumstances were

14 discovered or information was received which

15 caused the Customs Service to believe that a

16 possibility of a violation of subsection (a) ex17 isted.’’; and

18 (5) by amending subsection (d)—

19 (A) by striking out ‘‘the appropriate cus20 toms officer’’ and inserting ‘‘the Customs Serv21 ice’’,

22 (B) by striking out ‘‘duties’’ wherever it

23 appears and inserting ‘‘duties, taxes, or fees’’,

24 and
34

•S 106 IS

1 (C) by inserting ‘‘, TAXES OR FEES’’ after

2 ‘‘DUTIES’’ in the sideheading.

3 SEC. 112. PENALTIES FOR FALSE DRAWBACK CLAIMS.

4 (a) AMENDMENT.—Part V of title IV is amended by

5 inserting after section 593 the following new section:

6 ‘‘SEC. 593A. PENALTIES FOR FALSE DRAWBACK CLAIMS.

7 ‘‘(a) PROHIBITION.—

8 ‘‘(1) GENERAL RULE.—No person, by fraud, or

9 negligence—

10 ‘‘(A) may seek, induce or affect, or at11 tempt to seek, induce, or affect, the payment or

12 credit to that person or others of any drawback

13 claim by means of—

14 ‘‘(i) any document, written or oral

15 statement, or electronically transmitted

16 data or information, or act which is mate17 rial and false, or

18 ‘‘(ii) any omission which is material;

19 or

20 ‘‘(B) may aid or abet any other person to

21 violate subparagraph (A).

22 ‘‘(2) EXCEPTION.—Clerical errors or mistakes

23 of fact are not violations of paragraph (1) unless

24 they are part of a pattern of negligent conduct. The

25 mere nonintentional repetition by an electronic sys-
35

•S 106 IS

1 tem of an initial clerical error does not constitute a

2 pattern of negligent conduct.

3 ‘‘(b) PROCEDURES.—

4 ‘‘(1) PREPENALTY NOTICE.—

5 ‘‘(A) IN GENERAL.—If the Customs Serv6 ice has reasonable cause to believe that there

7 has been a violation of subsection (a) and deter8 mines that further proceedings are warranted,

9 the Customs Service shall issue to the person

10 concerned a written notice of intent to issue a

11 claim for a monetary penalty. Such notice

12 shall—

13 ‘‘(i) identify the drawback claim;

14 ‘‘(ii) set forth the details relating to

15 the seeking, inducing, or affecting, or the

16 attempted seeking, inducing, or affecting,

17 or the aiding or procuring of, the drawback

18 claim;

19 ‘‘(iii) specify all laws and regulations

20 allegedly violated;

21 ‘‘(iv) disclose all the material facts

22 which establish the alleged violation;

23 ‘‘(v) state whether the alleged viola24 tion occurred as a result of fraud or neg25 ligence;
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•S 106 IS

1 ‘‘(vi) state the estimated actual or po2 tential loss of revenue due to the drawback

3 claim, and, taking into account all cir4 cumstances, the amount of the proposed

5 monetary penalty; and

6 ‘‘(vii) inform such person that he shall

7 have a reasonable opportunity to make rep8 resentations, both oral and written, as to

9 why a claim for a monetary penalty should

10 not be issued in the amount stated.

11 ‘‘(B) EXCEPTIONS.—The Customs Service

12 may not issue a prepenalty notice if the amount

13 of the penalty in the penalty claim issued under

14 paragraph (2) is $1,000 or less. In such cases,

15 the Customs Service may proceed directly with

16 a penalty claim.

17 ‘‘(C) PRIOR APPROVAL.—No prepenalty

18 notice in which the alleged violation occurred as

19 a result of fraud shall be issued without the

20 prior approval of Customs Headquarters.

21 ‘‘(2) PENALTY CLAIM.—After considering rep22 resentations, if any, made by the person concerned

23 pursuant to the notice issued under paragraph (1),

24 the Customs Service shall determine whether any

25 violation of subsection (a), as alleged in the notice,
37

•S 106 IS

1 has occurred. If the Customs Service determines

2 that there was no violation, the Customs Service

3 shall promptly issue a written statement of the de4 termination to the person to whom the notice was

5 sent. If the Customs Service determines that there

6 was a violation, Customs shall issue a written pen7 alty claim to such person. The written penalty claim

8 shall specify all changes in the information provided

9 under clauses (i) through (vii) of paragraph (1)(A).

10 Such person shall have a reasonable opportunity

11 under section 618 to make representations, both oral

12 and written, seeking remission or mitigation of the

13 monetary penalty. At the conclusion of any proceed14 ing under section 618, the Customs Service shall

15 provide to the person concerned a written statement

16 which sets forth the final determination, and the

17 findings of fact and conclusions of law on which

18 such determination is based.

19 ‘‘(c) MAXIMUM PENALTIES.—

20 ‘‘(1) FRAUD.—A fraudulent violation of sub21 section (a) of this section is punishable by a civil

22 penalty in an amount not to exceed 3 times the ac23 tual or potential loss of revenue.

24 ‘‘(2) NEGLIGENCE.—
38

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1 ‘‘(A) IN GENERAL.—A negligent violation

2 of subsection (a) is punishable by a civil penalty

3 in an amount not to exceed 20 percent of the

4 actual or potential loss of revenue for the 1st

5 violation.

6 ‘‘(B) REPETITIVE VIOLATIONS.—If the

7 Customs Service determines that a repeat neg8 ligent violation occurs relating to the same

9 issue, the penalty amount for the 2d violation

10 shall be in an amount not to exceed 50 percent

11 of the total actual or potential loss of revenue.

12 The penalty amount for each succeeding repet13 itive negligent violation shall be in an amount

14 not to exceed the actual or potential loss of rev15 enue. If the same party commits a nonrepetitive

16 violation, that violation shall be subject to a

17 penalty not to exceed 20 percent of the actual

18 or potential loss of revenue.

19 ‘‘(3) PRIOR DISCLOSURE.—

20 ‘‘(A) IN GENERAL.—Subject to subpara21 graph (B), if the person concerned discloses the

22 circumstances of a violation of subsection (a)

23 before, or without knowledge of the commence24 ment of, a formal investigation of such viola-
39

•S 106 IS

1 tion, the monetary penalty assessed under this

2 subsection may not exceed—

3 ‘‘(i) if the violation resulted from

4 fraud, an amount equal to the actual or

5 potential revenue of which the United

6 States is or may be deprived as a result of

7 overpayment of the claim; or

8 ‘‘(ii) if the violation resulted from

9 negligence, an amount equal to the interest

10 computed on the basis of the prevailing

11 rate of interest applied under section 6621

12 of the Internal Revenue Code of 1986 on

13 the amount of actual revenue of which the

14 United States is or may be deprived during

15 the period that—

16 ‘‘(I) begins on the date of the

17 overpayment of the claim; and

18 ‘‘(II) ends on the date on which

19 the person concerned tenders the

20 amount of the overpayment.

21 ‘‘(B) CONDITION AFFECTING PENALTY

22 LIMITATIONS.—The limitations in subparagraph

23 (A) on the amount of the monetary penalty to

24 be assessed under subsection (c) apply only if

25 the person concerned tenders the amount of the
40

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1 overpayment made on the claim at the time of

2 disclosure, or within 30 days (or such longer

3 period as the Customs Service may provide),

4 after notice by the Customs Service of its cal5 culation of the amount of the overpayment.

6 ‘‘(C) BURDEN OF PROOF.—The person as7 serting lack of knowledge of the commencement

8 of a formal investigation has the burden of

9 proof in establishing such lack of knowledge.

10 ‘‘(4) COMMENCEMENT OF INVESTIGATION.—

11 For purposes of this section, a formal investigation

12 of a violation is considered to be commenced with re13 gard to the disclosing party and the disclosed infor14 mation on the date recorded in writing by the Cus15 toms Service as the date on which facts and cir16 cumstances were discovered or information was re17 ceived which caused the Customs Service to believe

18 that a possibility of a violation of subsection (a) ex19 isted.

20 ‘‘(5) EXCLUSIVITY.—Penalty claims under this

21 section shall be the exclusive civil remedy for any

22 drawback related violation of subsection (a).

23 ‘‘(d) DEPRIVATION OF LAWFUL REVENUE.—Not24 withstanding section 514, if the United States has been

25 deprived of lawful duties and taxes resulting from a viola-
41

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1 tion of subsection (a), the Customs Service shall require

2 that such drawback claim be restored whether or not a

3 monetary penalty is assessed.

4 ‘‘(e) DRAWBACK COMPLIANCE PROGRAM.—

5 ‘‘(1) IN GENERAL.—After consultation with the

6 drawback trade community, the Customs Service

7 shall establish a drawback compliance program in

8 which claimants and other parties in interest may

9 participate after being certified by the Customs

10 Service under paragraph (2). Participation in the

11 drawback compliance program is voluntary.

12 ‘‘(2) CERTIFICATION.—A party may be certified

13 as a participant in the drawback compliance pro14 gram after meeting the general requirements estab15 lished under the program or after negotiating an al16 ternative program suited to the needs of the party

17 and the Customs Service. Certification requirements

18 shall take into account the size and nature of the

19 party’s drawback program and the volume of claims.

20 In order to be certified, the participant must be able

21 to demonstrate that it—

22 ‘‘(A) understands the legal requirements

23 for filing claims, including the nature of the

24 records required to be maintained and produced

25 and the time periods involved;
42

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1 ‘‘(B) has in place procedures to explain the

2 Customs Service requirements to those employ3 ees that are involved in the preparation of

4 claims, and the maintenance and production of

5 required records;

6 ‘‘(C) has in place procedures regarding the

7 preparation of claims and maintenance of re8 quired records, and the production of such

9 records to the Customs Service;

10 ‘‘(D) has designated a dependable individ11 ual or individuals to be responsible for compli12 ance under the program and whose duties in13 clude maintaining familiarity with the drawback

14 requirements of the Customs Service;

15 ‘‘(E) has a record maintenance procedure

16 approved by the Customs Service for original

17 records, or, if approved by the Customs Service,

18 for alternate records or recordkeeping formats

19 other than the original records; and

20 ‘‘(F) has procedures for notifying the Cus21 toms Service of variances to, and violations of,

22 the requirements of the drawback compliance

23 program or any negotiated alternative pro24 grams, and for taking corrective action when
43

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1 notified by the Customs Service for violations or

2 problems regarding such program.

3 ‘‘(f) ALTERNATIVES TO PENALTIES.—

4 ‘‘(1) IN GENERAL.—When a party that—

5 ‘‘(A) has been certified as a participant in

6 the drawback compliance program under sub7 section (e); and

8 ‘‘(B) is generally in compliance with the

9 appropriate procedures and requirements of the

10 program;

11 commits a violation of subsection (a), the Customs

12 Service, shall, in the absence of fraud or repeated

13 violations, and in lieu of a monetary penalty, issue

14 a written notice of the violation to the party. Re15 peated violations by a party may result in the issu16 ance of penalties and removal of certification under

17 the program until corrective action, satisfactory to

18 the Customs Service, is taken.

19 ‘‘(2) CONTENTS OF NOTICE.—A notice of viola20 tion issued under paragraph (1) shall—

21 ‘‘(A) state that the party has violated sub22 section (a);

23 ‘‘(B) explain the nature of the violation;

24 and
44

•S 106 IS

1 ‘‘(C) warn the party that future violations

2 of subsection (a) may result in the imposition

3 of monetary penalties.

4 ‘‘(3) RESPONSE TO NOTICE.—Within a reason5 able time after receiving written notice under para6 graph (1), the party shall notify the Customs Service

7 of the steps it has taken to prevent a recurrence of

8 the violation.

9 ‘‘(g) REPETITIVE VIOLATIONS.—

10 ‘‘(1) A party who has been issued a written no11 tice under subsection (f)(1) and subsequently com12 mits a repeat negligent violation involving the same

13 issue is subject to the following monetary penalties:

14 ‘‘(A) 2D VIOLATION.—An amount not to

15 exceed 20 percent of the loss of revenue.

16 ‘‘(B) 3RD VIOLATION.—An amount not to

17 exceed 50 percent of the loss of revenue.

18 ‘‘(C) 4TH AND SUBSEQUENT VIOLA19 TIONS.—An amount not to exceed 100 percent

20 of the loss of revenue.

21 ‘‘(2) If a party that has been certified as a par22 ticipant in the drawback compliance program under

23 subsection (e) commits an alleged violation which

24 was not repetitive, the party shall be issued a ‘warn25 ing letter’, and, for any subsequent violation, shall
45

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1 be subject to the same maximum penalty amounts

2 stated in paragraph (1).

3 ‘‘(h) REGULATION.—The Secretary shall promulgate

4 regulations and guidelines to implement this section. Such

5 regulations shall specify that for purposes of subsection

6 (g), a repeat negligent violation involving the same issue

7 shall be treated as a repetitive violation for a maximum

8 period of 3 years.

9 ‘‘(i) COURT OF INTERNATIONAL TRADE PROCEED10 INGS.—Notwithstanding any other provision of law, in any

11 proceeding commenced by the United States in the Court

12 of International Trade for the recovery of any monetary

13 penalty claimed under this section—

14 ‘‘(1) all issues, including the amount of the pen15 alty, shall be tried de novo;

16 ‘‘(2) if the monetary penalty is based on fraud,

17 the United States shall have the burden of proof to

18 establish the alleged violation by clear and convinc19 ing evidence; and

20 ‘‘(3) if the monetary penalty is based on neg21 ligence, the United States shall have the burden of

22 proof to establish the act or omission constituting

23 the violation, and the alleged violator shall have the

24 burden of providing evidence that the act or omis25 sion did not occur as a result of negligence.’’.
46

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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) applies to drawback claims filed on and

3 after the nationwide operational implementation of an

4 automated drawback selectivity program by the Customs

5 Service. The Customs Service shall publish notice of this

6 date in the Customs Bulletin.

7 SEC. 113. INTERPRETIVE RULINGS AND DECISIONS; PUBLIC

8 INFORMATION.

9 Section 625 (19 U.S.C. 1625) is amended to read as

10 follows:

11 ‘‘SEC. 625. INTERPRETIVE RULINGS AND DECISIONS; PUB12 LIC INFORMATION.

13 ‘‘(a) PUBLICATION.—Within 90 days after the date

14 of issuance of any interpretive ruling (including any ruling

15 letter, or internal advice memorandum) or protest review

16 decision under this chapter with respect to any customs

17 transaction, the Secretary shall have such ruling or deci18 sion published in the Customs Bulletin or shall otherwise

19 make such ruling or decision available for public inspec20 tion.

21 ‘‘(b) APPEALS.—A person may appeal an adverse in22 terpretive ruling and any interpretation of any regulation

23 prescribed to implement such ruling to a higher level of

24 authority within the Customs Service for de novo review.

25 Upon a reasonable showing of business necessity, any such
47

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1 appeal shall be considered and decided no later than 60

2 days following the date on which the appeal is filed. The

3 Secretary shall issue regulations to implement this sub4 section.

5 ‘‘(c) MODIFICATION AND REVOCATION.—A proposed

6 interpretive ruling or decision which would—

7 ‘‘(1) modify (other than to correct a clerical

8 error) or revoke a prior interpretive ruling or deci9 sion which has been in effect for at least 60 days;

10 or

11 ‘‘(2) have the effect of modifying the treatment

12 previously accorded by the Customs Service to sub13 stantially identical transactions;

14 shall be published in the Customs Bulletin. The Secretary

15 shall give interested parties an opportunity to submit, dur16 ing not less than the 30-day period after the date of such

17 publication, comments on the correctness of the proposed

18 ruling or decision. After consideration of any comments

19 received, the Secretary shall publish a final ruling or deci20 sion in the Customs Bulletin within 30 days after the clos21 ing of the comment period. The final ruling or decision

22 shall become effective 60 days after the date of its publica23 tion.

24 ‘‘(d) PUBLICATION OF CUSTOMS DECISIONS THAT

25 LIMIT COURT DECISIONS.—A decision that proposes to
48

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1 limit the application of a court decision shall be published

2 in the Customs Bulletin together with notice of oppor3 tunity for public comment thereon prior to a final decision.

4 ‘‘(e) PUBLIC INFORMATION.—The Secretary may

5 make available in writing or through electronic media, in

6 an efficient, comprehensive and timely manner, all infor7 mation, including directives, memoranda, electronic mes8 sages and telexes which contain instructions, require9 ments, methods or advice necessary for importers and ex10 porters to comply with the Customs laws and regulations.

11 All information which may be made available pursuant to

12 this subsection shall be subject to any exemption from dis13 closure provided by section 552 of title 5, United States

14 Code.’’.

15 SEC. 114. SEIZURE AUTHORITY.

16 Section 596(c) (19 U.S.C. 1595a(c)) is amended to

17 read as follows:

18 ‘‘(c) Merchandise which is introduced or attempted

19 to be introduced into the United States contrary to law

20 shall be treated as follows:

21 ‘‘(1) The merchandise shall be seized and for22 feited if it—

23 ‘‘(A) is stolen, smuggled, or clandestinely

24 imported or introduced;
49

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1 ‘‘(B) is a controlled substance, as defined

2 in the Controlled Substances Act (21 U.S.C.

3 801 et seq.), and is not imported in accordance

4 with applicable law; or

5 ‘‘(C) is a contraband article, as defined in

6 section 1 of the Act of August 9, 1939 (49

7 U.S.C. App. 781).

8 ‘‘(2) The merchandise may be seized and for9 feited if—

10 ‘‘(A) its importation or entry is subject to

11 any restriction or prohibition which is imposed

12 by law relating to health, safety, or conserva13 tion and the merchandise is not in compliance

14 with the applicable rule, regulation, or statute;

15 ‘‘(B) its importation or entry requires a li16 cense, permit or other authorization of an agen17 cy of the United States Government and the

18 merchandise is not accompanied by such li19 cense, permit, or authorization;

20 ‘‘(C) it is merchandise or packaging in

21 which copyright, trademark, or trade name pro22 tection violations are involved (including, but

23 not limited to, violations of section 42, 43, or

24 45 of the Act of July 5, 1946 (Public Law 95–

25 410; 15 U.S.C. 1124, 1125, or 1127), section
50

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1 506 or 509 of title 17, United States Code, or

2 section 2318 or 2320 of title 18, United States

3 Code);

4 ‘‘(D) it is trade dress merchandise involved

5 in the violation of a court order citing section

6 43 of such Act of July 5, 1946 (15 U.S.C.

7 1125);

8 ‘‘(E) it is merchandise which is marked in9 tentionally in violation of section 304; or

10 ‘‘(F) it is merchandise for which the im11 porter has received written notices that previous

12 importations of identical merchandise from the

13 same supplier were found to have been marked

14 in violation of section 304.

15 ‘‘(3) If the importation or entry of the mer16 chandise is subject to quantitative restrictions re17 quiring a visa, permit, license or other similar docu18 ment, or stamp from the United States Government

19 or from a foreign government or issuing authority

20 pursuant to a bilateral or multilateral agreement,

21 the merchandise shall be subject to detention in ac22 cordance with section 499 unless the appropriate

23 visa, license, permit, or similar document or stamp

24 is presented to the Customs Service; but if the visa,

25 permit, license or similar document or stamp which
51

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1 is presented in connection with the importation or

2 entry of the merchandise is counterfeit, the mer3 chandise may be seized and forfeited.

4 ‘‘(4) If the merchandise is imported or intro5 duced contrary to a provision of law which governs

6 the classification or value of merchandise and there

7 are no issues as to the admissibility of the merchan8 dise into the United States, it shall not be seized ex9 cept in accordance with section 592.

10 ‘‘(5) In any case where the seizure and forfeit11 ure of merchandise are required or authorized by

12 this section, the Secretary may—

13 ‘‘(A) remit the forfeiture under section

14 618, or

15 ‘‘(B) permit the exportation of the mer16 chandise, unless its release would adversely af17 fect health, safety, or conservation or be in con18 travention of a bilateral or multilateral agree19 ment or treaty.’’.

20 TITLE II—NATIONAL CUSTOMS

21 AUTOMATION PROGRAM

22 SEC. 201. NATIONAL CUSTOMS AUTOMATION PROGRAM.

23 Part I of title IV is amended—

24 (1) by striking out
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1 ‘‘PART I—DEFINITIONS

2 and inserting

3 ‘‘PART I—DEFINITIONS AND NATIONAL CUSTOMS

4 AUTOMATION PROGRAM

5 ‘‘Subpart A—Definitions’’; and

6 (2) by inserting after section 402 the following:

7 ‘‘Subpart B—National Customs Automation Program

8 ‘‘SEC. 411. NATIONAL CUSTOMS AUTOMATION PROGRAM.

9 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab10 lish the National Customs Automation Program (herein11 after in this subpart referred to as the ‘Program’) which

12 shall be an automated and electronic system for processing

13 commercial importations and shall include the following

14 existing and planned components:

15 ‘‘(1) Existing components:

16 ‘‘(A) The electronic entry of merchandise.

17 ‘‘(B) The electronic entry summary of re18 quired information.

19 ‘‘(C) The electronic transmission of invoice

20 information.

21 ‘‘(D) The electronic transmission of mani22 fest information.

23 ‘‘(E) Electronic payments of duties, fees,

24 and taxes.

25 ‘‘(F) The electronic status of liquidation

26 and reliquidation.
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1 ‘‘(G) The electronic selection of high risk

2 entries for examination (cargo selectivity and

3 entry summary selectivity).

4 ‘‘(2) Planned components:

5 ‘‘(A) The electronic filing and status of

6 protests.

7 ‘‘(B) The electronic filing (including re8 mote filing under section 414) of entry informa9 tion with the Customs Service at any location.

10 ‘‘(C) The electronic filing of import activity

11 summary statements and reconciliation.

12 ‘‘(D) The electronic filing of bonds.

13 ‘‘(E) The electronic penalty process.

14 ‘‘(F) The electronic filing of drawback

15 claims, records, or entries.

16 ‘‘(G) Any other component initiated by the

17 Customs Service to carry out the goals of this

18 subpart.

19 ‘‘(b) PARTICIPATION IN PROGRAM.—The Secretary

20 shall by regulation prescribe the eligibility criteria for par21 ticipation in the Program. Participation in the Program

22 is voluntary.

23 ‘‘SEC. 412. PROGRAM GOALS.

24 ‘‘The goals of the Program are to ensure that all reg25 ulations and rulings that are administered or enforced by
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1 the Customs Service are administered and enforced in a

2 manner that—

3 ‘‘(1) is uniform and consistent;

4 ‘‘(2) is as minimally intrusive upon the normal

5 flow of business activity as practicable; and

6 ‘‘(3) improves compliance.

7 ‘‘SEC. 413. IMPLEMENTATION AND EVALUATION OF PRO8 GRAM.

9 ‘‘(a) OVERALL PROGRAM PLAN.—

10 ‘‘(1) IN GENERAL.—Before the 180th day after

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

12 shall develop and transmit to the Committees an

13 overall plan for the Program. The overall Program

14 plan shall set forth—

15 ‘‘(A) a general description of the ultimate

16 configuration of the Program;

17 ‘‘(B) a description of each of the existing

18 components of the Program listed in section

19 411(a)(1); and

20 ‘‘(C) estimates regarding the stages on

21 which planned components of the Program list22 ed in section 411(a)(2) will be brought on-line.

23 ‘‘(2) ADDITIONAL INFORMATION.—In addition

24 to the information required under paragraph (1), the
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1 overall Program plan shall include a statement re2 garding—

3 ‘‘(A) the extent to which the existing com4 ponents of the Program currently meet, and the

5 planned components will meet, the Program

6 goals set forth in section 412; and

7 ‘‘(B) the effects that the existing compo8 nents are currently having, and the effects that

9 the planned components will likely have, on—

10 ‘‘(i) importers, brokers, and other

11 users of the Program, and

12 ‘‘(ii) Customs Service occupations, op13 erations, processes, and systems.

14 ‘‘(b) IMPLEMENTATION PLAN, TESTING, AND EVAL15 UATION.—

16 ‘‘(1) IMPLEMENTATION PLAN.—For each of the

17 planned components of the Program listed in section

18 411(a)(2), the Secretary shall—

19 ‘‘(A) develop an implementation plan;

20 ‘‘(B) test the component in order to assess

21 its viability;

22 ‘‘(C) evaluate the component in order to

23 assess its contribution toward achieving the

24 program goals; and
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1 ‘‘(D) transmit to the Committees the im2 plementation plan, the testing results, and an

3 evaluation report.

4 In developing an implementation plan under sub5 paragraph (A) and evaluating components under

6 subparagraph (C), the Secretary shall publish a re7 quest for comments in the Customs Bulletin and

8 shall consult with the trade community, including

9 importers, brokers, shippers, and other affected par10 ties.

11 ‘‘(2) IMPLEMENTATION.—

12 ‘‘(A) The Secretary may implement on a

13 permanent basis any Program component re14 ferred to in paragraph (1) on or after the date

15 which is 30 days after paragraph (1)(D) is

16 complied with.

17 ‘‘(B) For purposes of subparagraph (A),

18 the 30 days shall be computed by excluding—

19 ‘‘(i) the days either House is not in

20 session because of an adjournment of more

21 than 3 days to a day certain or an ad22 journment of the Congress sine die, and

23 ‘‘(ii) any Saturday and Sunday, not

24 excluded under clause (i), when either

25 House is not in session.
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1 ‘‘(3) EVALUATION AND REPORT.—The Sec2 retary shall—

3 ‘‘(A) develop a user satisfaction survey of

4 parties participating in the Program;

5 ‘‘(B) evaluate the results of the user satis6 faction survey on a biennial basis (fiscal years)

7 and transmit a report to the Committees on the

8 evaluation by no later than the 90th day after

9 the close of each 2d fiscal year;

10 ‘‘(C) with respect to the existing Program

11 component listed in section 411(a)(1)(G) trans12 mit to the Committees—

13 ‘‘(i) a written evaluation of such com14 ponent before the 180th day after the date

15 of the enactment of this section and before

16 the implementation of the planned Pro17 gram components listed in section

18 411(a)(2) (B) and (C), and

19 ‘‘(ii) a report on such component for

20 each of the 3 full fiscal years occurring

21 after the date of the enactment of this sec22 tion, which report shall be transmitted not

23 later than the 90th day after the close of

24 each such year; and
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1 ‘‘(D) not later than the 90th day after the

2 close of fiscal year 1993, and annually there3 after through fiscal year 1999, transmit to the

4 Committees a written evaluation with respect to

5 the implementation and effect on users of each

6 of the planned Program components listed in

7 section 411(a)(2).

8 In carrying out the provisions of this paragraph, the

9 Secretary shall publish requests for comments in the

10 Customs Bulletin and shall consult with the trade

11 community, including importers, brokers, shippers,

12 and other affected parties.

13 ‘‘(c) COMMITTEES.—For purposes of this section, the

14 term ‘Committees’ means the Committee on Ways and

15 Means of the House of Representatives and the Committee

16 on Finance of the Senate.

17 ‘‘SEC. 414. REMOTE LOCATION FILING.

18 ‘‘(a) CORE ENTRY INFORMATION.—

19 ‘‘(1) IN GENERAL.—A Program participant

20 may file an entry of merchandise with the Customs

21 Service from a location other than the district des22 ignated in the entry for examination (hereafter in

23 this section referred to as a ‘remote location’) if—

24 ‘‘(A) the Customs Service is satisfied that

25 the participant has the capabilities referred to
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1 in paragraph (2) regarding such method of fil2 ing; and

3 ‘‘(B) the participant elects to file from the

4 remote location.

5 ‘‘(2) REQUIREMENTS.—In order to qualify for

6 filing from a remote location, a Program participant

7 must have the capability to provide, on an entry-by8 entry basis, for the following:

9 ‘‘(A) The electronic entry of merchandise.

10 ‘‘(B) The electronic entry summary of re11 quired information.

12 ‘‘(C) The electronic transmission of invoice

13 information (when required by the Customs

14 Service).

15 ‘‘(D) The electronic payment of duties,

16 fees, and taxes.

17 ‘‘(E) Such other electronic capabilities

18 within the existing or planned components of

19 the Program as the Secretary shall by regula20 tion require.

21 ‘‘(3) ALTERNATIVE FILING.—Any Program par22 ticipant that is eligible under paragraph (1) to file

23 entry information electronically from a remote loca24 tion but chooses not to do so in the case of any

25 entry must file any paper documentation for the
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1 entry at the designated location referred to in sub2 section (d).

3 ‘‘(b) ADDITIONAL ENTRY INFORMATION.—

4 ‘‘(1) IN GENERAL.—A Program participant that

5 is eligible under subsection (a) to file entry informa6 tion from a remote location may, if the Customs

7 Service is satisfied that the participant meets the re8 quirements under paragraph (2), also electronically

9 file from the remote location additional information

10 that is required by the Customs Service to be pre11 sented before the acceptance of entry summary in12 formation and at the time of acceptance of entry

13 summary information.

14 ‘‘(2) REQUIREMENTS.—The Secretary shall

15 publish, and periodically update, a list of those capa16 bilities within the existing and planned components

17 of the Program that a Program participant must

18 have for purposes of this subsection.

19 ‘‘(3) FILING OF ADDITIONAL INFORMATION.—

20 ‘‘(A) IF INFORMATION ELECTRONICALLY

21 ACCEPTABLE.—A Program participant that is

22 eligible under paragraph (1) to file additional

23 information from a remote location shall elec24 tronically file all such information that the Cus25 toms Service can accept electronically.
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1 ‘‘(B) ALTERNATIVE FILING.—If the Cus2 toms Service cannot accept additional informa3 tion electronically, the Program participant

4 shall file the paper documentation with respect

5 to the information at the appropriate filing lo6 cation.

7 ‘‘(C) APPROPRIATE LOCATION.—For pur8 poses of subparagraph (B), the ‘appropriate lo9 cation’ is—

10 ‘‘(i) before January 1, 1999, a des11 ignated location; and

12 ‘‘(ii) after December 31, 1998—

13 ‘‘(I) if the paper documentation

14 is required for release, a designated

15 location; or

16 ‘‘(II) if the paper documentation

17 is not required for release, a remote

18 location designated by the Customs

19 Service or a designated location.

20 ‘‘(D) OTHER.—A Program participant that

21 is eligible under paragraph (1) to file additional

22 information electronically from a remote loca23 tion but chooses not to do so must file the

24 paper documentation with respect to the infor25 mation at a designated location.
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1 ‘‘(c) POST-ENTRY SUMMARY INFORMATION.—A Pro2 gram participant that is eligible to file electronically entry

3 information under subsection (a) and additional informa4 tion under subsection (b) from a remote location may file

5 at any remote location designated by the Customs Service

6 any information required by the Customs Service after

7 entry summary.

8 ‘‘(d) DEFINITION OF DESIGNATED LOCATION.—For

9 purposes of this section, the term ‘designated location’

10 means a customs office located in the customs district des11 ignated by the entry filer for purposes of customs exam12 ination of the merchandise.’’.

13 SEC. 202. DRAWBACK AND REFUNDS.

14 (a) AMENDMENTS.—Section 313 (19 U.S.C. 1313) is

15 amended as follows:

16 (1) Subsection (a) is amended—

17 (A) by inserting ‘‘or destruction under cus18 toms supervision’’ after ‘‘Upon the expor19 tation’’;

20 (B) by inserting ‘‘provided that those arti21 cles have not been used prior to such expor22 tation or destruction,’’ after ‘‘manufactured or

23 produced in the United States with the use of

24 imported merchandise,’’;
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1 (C) by inserting ‘‘or destruction’’ after ‘‘re2 funded upon the exportation’’; and

3 (D) by striking out ‘‘wheat imported after

4 ninety days after the date of the enactment of

5 this Act’’ and inserting ‘‘imported wheat’’.

6 (2) Subsection (b) is amended—

7 (A) by striking out ‘‘duty-free or domestic

8 merchandise’’ and inserting ‘‘any other mer9 chandise (whether imported or domestic)’’;

10 (B) by inserting ‘‘, or destruction under

11 customs supervision,’’ after ‘‘there shall be al12 lowed upon the exportation’’;

13 (C) by inserting ‘‘or destroyed’’ after ‘‘not14 withstanding the fact that none of the imported

15 merchandise may actually have been used in the

16 manufacture or production of the exported’’;

17 (D) by inserting ‘‘, but only if those arti18 cles have not been used prior to such expor19 tation or destruction’’ after ‘‘an amount of

20 drawback equal to that which would have been

21 allowable had the merchandise used therein

22 been imported’’; and

23 (E) by inserting ‘‘or destruction under cus24 toms supervision’’ after ‘‘but the total amount

25 of drawback allowed upon the exportation’’.
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1 (3) Subsection (c) is amended to read as fol2 lows:

3 ‘‘(c) MERCHANDISE NOT CONFORMING TO SAMPLE

4 OR SPECIFICATIONS.—Upon the exportation, or destruc5 tion under the supervision of the Customs Service, of mer6 chandise—

7 ‘‘(1) not conforming to sample or specifications,

8 shipped without the consent of the consignee, or de9 termined to be defective as of the time of importa10 tion;

11 ‘‘(2) upon which the duties have been paid;

12 ‘‘(3) which has been entered or withdrawn for

13 consumption; and

14 ‘‘(4) which, within 3 years after release from

15 the custody of the Customs Service, has been re16 turned to the custody of the Customs Service for ex17 portation or destruction under the supervision of the

18 Customs Service;

19 the full amount of the duties paid upon such merchandise,

20 less 1 percent, shall be refunded as drawback.’’.

21 (4) Subsection (j) is amended to read as fol22 lows:

23 ‘‘(j) UNUSED MERCHANDISE DRAWBACK.—
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1 ‘‘(1) If imported merchandise, on which was

2 paid any duty, tax, or fee imposed under Federal

3 law because of its importation—

4 ‘‘(A) is, before the close of the 3-year pe5 riod beginning on the date of importation—

6 ‘‘(i) exported, or

7 ‘‘(ii) destroyed under customs super8 vision; and

9 ‘‘(B) is not used within the United States

10 before such exportation or destruction;

11 then upon such exportation or destruction 99 per12 cent of the amount of each duty, tax, or fee so paid

13 shall be refunded as drawback.

14 ‘‘(2) If there is, with respect to imported mer15 chandise on which was paid any duty, tax, or fee im16 posed under Federal law because of its importation,

17 any other merchandise (whether imported or domes18 tic), that—

19 ‘‘(A) is commercially interchangeable with

20 such imported merchandise;

21 ‘‘(B) is, before the close of the 3-year pe22 riod beginning on the date of importation of the

23 imported merchandise, either exported or de24 stroyed under customs supervision; and
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1 ‘‘(C) before such exportation or destruc2 tion—

3 ‘‘(i) is not used within the United

4 States, and

5 ‘‘(ii) is in the possession of, including

6 ownership while in bailment, in leased fa7 cilities, in transit to, or in any other man8 ner under the operational control of, the

9 party claiming drawback under this para10 graph (if that party paid the duty, tax, or

11 fee on the imported merchandise (estab12 lished by means of either an entry sum13 mary or a certificate of delivery));

14 then upon the exportation or destruction of such

15 other merchandise the amount of each such duty,

16 tax, and fee paid regarding the imported merchan17 dise shall be refunded as drawback, but in no case

18 may the total drawback on the imported merchan19 dise, whether available under this paragraph or any

20 other provision of law or any combination thereof,

21 exceed 99 percent of that duty, tax, or fee.

22 ‘‘(3) The performing of any operation or com23 bination of operations (including, but not limited to,

24 testing, cleaning, repacking, inspecting, sorting, re25 furbishing, freezing, blending, repairing, reworking,
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1 cutting, slitting, adjusting, replacing components,

2 relabeling, disassembling, and unpacking), not

3 amounting to manufacture or production for draw4 back purposes under the preceding provisions of this

5 section on—

6 ‘‘(A) the imported merchandise itself in

7 cases to which paragraph (1) applies, or

8 ‘‘(B) the commercially interchangeable

9 merchandise in cases to which paragraph (2)

10 applies,

11 shall not be treated as a use of that merchandise for

12 purposes of applying paragraph (1)(B) or (2)(C).’’.

13 (5) Subsection (l) is amended by striking out

14 ‘‘the fixing of a time limit within which drawback

15 entries or entries for refund under any of the provi16 sions of this section or section 309(b) shall be filed

17 and completed,’’ and inserting ‘‘the authority for the

18 electronic submission of drawback entries’’.

19 (6) The following new subsections are inserted

20 after subsection (p):

21 ‘‘(q) PACKAGING MATERIAL.—Packaging material,

22 when used on or for articles or merchandise exported or

23 destroyed under subsection (a), (b), (c), or (j), shall be

24 eligible under such subsection for refund, as drawback, of
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1 99 percent of any duty, tax, or fee imposed under Federal

2 law on the importation of such material.

3 ‘‘(r) FILING DRAWBACK CLAIMS.—

4 ‘‘(1) A drawback entry and all documents nec5 essary to complete a drawback claim, including those

6 issued by one customs officer to another, shall be

7 filed or applied for, as applicable, within 3 years

8 after the date of exportation or destruction of the

9 articles on which drawback is claimed, except that

10 any landing certificate required by regulation shall

11 be filed within the time limit prescribed in such reg12 ulation. Claims not completed within the 3-year pe13 riod shall be considered abandoned. No extension

14 will be granted unless it is established that a cus15 toms officer was responsible for the untimely filing.

16 ‘‘(2) A drawback entry for refund filed pursu17 ant to any subsection of this section shall be deemed

18 filed pursuant to any other subsection of this section

19 should it be determined that drawback is not allow20 able under the entry as originally filed but is allow21 able under such other subsection.

22 ‘‘(s) DESIGNATION OF MERCHANDISE BY SUCCES23 SOR.—

24 ‘‘(1) For purposes of subsection (b), a draw25 back successor may designate imported merchandise
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1 used by the predecessor before the date of succession

2 as the basis for drawback on articles manufactured

3 by the drawback successor after the date of succes4 sion.

5 ‘‘(2) For purposes of subsection (j)(2), a draw6 back successor may designate imported merchandise

7 upon which the predecessor, before the date of suc8 cession, paid the duty, tax, or fee related to the im9 portation of the merchandise as the basis for draw10 back on merchandise possessed by the drawback suc11 cessor after the date of succession.

12 ‘‘(3) For purposes of this subsection, the term

13 ‘drawback successor’ means an entity to which an14 other entity (in this subsection referred to as the

15 ‘predecessor’) has transferred by written agreement,

16 merger, or corporate resolution all or substantially

17 all of the rights, privileges, immunities, powers, du18 ties, and liabilities of the predecessor, or all or sub19 stantially all of the assets and other business inter20 ests of a division, plant, or other business unit of

21 such predecessor, but only if in such transfer the

22 value of the transferred realty and personalty ex23 ceeds the value of all transferred intangibles.

24 ‘‘(4) No drawback shall be paid under this sub25 section until either the predecessor or the drawback
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1 successor (who shall also certify that it has the pred2 ecessor’s records) certifies that—

3 ‘‘(A) the transferred merchandise was not

4 and will not be claimed by the predecessor, and

5 ‘‘(B) the predecessor did not and will not

6 issue any certificate to any other person that

7 would enable that person to claim drawback.

8 ‘‘(t) DRAWBACK CERTIFICATES.—Any person who is9 sues a certificate which would enable another person to

10 claim drawback shall be subject to the recordkeeping pro11 visions of this chapter, with the retention period beginning

12 on the date that such certificate is issued.

13 ‘‘(u) ELIGIBILITY OF ENTERED OR WITHDRAWN

14 MERCHANDISE.—Imported merchandise that has not been

15 regularly entered or withdrawn for consumption shall not

16 satisfy any requirement for use, exportation, or destruc17 tion under this section.

18 ‘‘(v) MULTIPLE DRAWBACK CLAIMS.—Merchandise

19 that is exported or destroyed to satisfy any claim for draw20 back shall not be the basis of any other claim for draw21 back; except that appropriate credit and deductions for

22 claims covering components or ingredients of such mer23 chandise shall be made in computing drawback

24 payments.’’.
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1 (b) EFFECTIVE DATE.—The amendments made by

2 subsection (a) apply to—

3 (1) any drawback entry made after September

4 30, 1993; and

5 (2) any drawback entry made before October 1,

6 1993, if the liquidation of the entry is not final as

7 of that date.

8 SEC. 203. EFFECTIVE DATE OF RATES OF DUTY.

9 Section 315 (19 U.S.C. 1315) is amended—

10 (1) by striking out ‘‘appropriate customs officer

11 in the form and manner prescribed by regulations of

12 the Secretary of the Treasury,’’ in the first sentence

13 of subsection (a) and inserting ‘‘Customs Service by

14 written, electronic or such other means as the Sec15 retary by regulation shall prescribe,’’;

16 (2) by striking out ‘‘customs custody’’ in the

17 first sentence of subsection (b) and inserting ‘‘cus18 tody of the Customs Service’’; and

19 (3) by striking out ‘‘section 1001, paragraph

20 813’’ in subsection (c) and inserting ‘‘chapter 98 of

21 the Harmonized Tariff Schedule of the United

22 States’’.

23 SEC. 204. DEFINITIONS.

24 Section 401 (19 U.S.C. 1401) is amended—
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1 (1) by amending subsection (k) to read as fol2 lows:

3 ‘‘(k) The term ‘hovering vessel’ means—

4 ‘‘(1) any vessel which is found or kept off the

5 coast of the United States within or without the cus6 toms waters, if, from the history, conduct, character,

7 or location of the vessel, it is reasonable to believe

8 that such vessel is being used or may be used to in9 troduce or promote or facilitate the introduction or

10 attempted introduction of merchandise into the

11 United States in violation of the laws of the United

12 States; and

13 ‘‘(2) any vessel which has visited a vessel de14 scribed in paragraph (1).’’; and

15 (2) by inserting at the end thereof the following

16 new subsections:

17 ‘‘(n) The term ‘electronic transmission’ means the

18 transfer of data or information through an authorized

19 electronic data interchange system consisting of, but not

20 limited to, computer modems and computer networks.

21 ‘‘(o) The term ‘electronic entry’ means the electronic

22 transmission to the Customs Service of—

23 ‘‘(1) entry information required for the entry of

24 merchandise, and
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1 ‘‘(2) entry summary information required for

2 the classification and appraisement of the merchan3 dise, the verification of statistical information, and

4 the determination of compliance with applicable law.

5 ‘‘(p) The term ‘electronic data interchange system’

6 means any established mechanism approved by the Com7 missioner of Customs through which information can be

8 transferred electronically.

9 ‘‘(q) The term ‘National Customs Automation Pro10 gram’ means the program established under section 411.

11 ‘‘(r) The term ‘import activity summary statement’

12 refers to data or information transmitted electronically to

13 the Customs Service, in accordance with such regulations

14 as the Secretary prescribes, at the end of a specified pe15 riod of time which enables the Customs Service to assess

16 properly the duties, taxes and fees on merchandise im17 ported during that period, collect accurate statistics and

18 determine whether any other applicable requirement of law

19 (other than a requirement relating to release from customs

20 custody) is met.

21 ‘‘(s) The term ‘reconciliation’ means an electronic

22 process, initiated at the request of an importer, under

23 which the elements of an entry, other than those elements

24 related to the admissibility of the merchandise, that are

25 undetermined at the time of entry summary are provided
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1 to the Customs Service at a later time. A reconciliation

2 is treated as an entry for purposes of liquidation, reliqui3 dation, and protest.’’.

4 SEC. 205. MANIFESTS.

5 Section 431 (19 U.S.C. 1431) is amended—

6 (1) by amending subsections (a) and (b) to read

7 as follows:

8 ‘‘(a) IN GENERAL.—Every vessel required to make

9 entry under section 434 or obtain clearance under section

10 4197 of the Revised Statutes of the United States (46

11 U.S.C. App. 91) shall have a manifest that complies with

12 the requirements prescribed under subsection (d).

13 ‘‘(b) PRODUCTION OF MANIFEST.—Any manifest re14 quired by the Customs Service shall be signed, produced,

15 delivered or electronically transmitted by the master or

16 person in charge of the vessel, aircraft, or vehicle, or by

17 any other authorized agent of the owner or operator of

18 the vessel, aircraft, or vehicle in accordance with the re19 quirements prescribed under subsection (d). A manifest

20 may be supplemented by bill of lading data supplied by

21 the issuer of such bill. If any irregularity of omission or

22 commission occurs in any way in respect to any manifest

23 or bill of lading data, the owner or operator of the vessel,

24 aircraft or vehicle, or any party responsible for such irreg25 ularity, shall be liable for any fine or penalty prescribed
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1 by law with respect to such irregularity. The Customs

2 Service may take appropriate action against any of the

3 parties.’’; and

4 (2) by inserting after subsection (c) the follow5 ing new subsection:

6 ‘‘(d) REGULATIONS.—

7 ‘‘(1) IN GENERAL.—The Secretary shall by reg8 ulation—

9 ‘‘(A) specify the form for, and the informa10 tion and data that must be contained in, the

11 manifest required by subsection (a);

12 ‘‘(B) allow, at the option of the individual

13 producing the manifest and subject to para14 graph (2), letters and documents shipments to

15 be accounted for by summary manifesting pro16 cedures;

17 ‘‘(C) prescribe the manner of production

18 for, and the delivery for electronic transmittal

19 of, the manifest required by subsection (a); and

20 ‘‘(D) prescribe the manner for

21 supplementing manifests with bill of lading data

22 under subsection (b).

23 ‘‘(2) LETTERS AND DOCUMENTS SHIPMENTS.—

24 For purposes of paragraph (1)(B)—
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1 ‘‘(A) the Customs Service may require with

2 respect to letters and documents shipments—

3 ‘‘(i) that they be segregated by coun4 try of origin, and

5 ‘‘(ii) additional examination proce6 dures that are not necessary for individ7 ually manifested shipments;

8 ‘‘(B) standard letter envelopes and stand9 ard document packs shall be segregated from

10 larger document shipments for purposes of cus11 toms inspections; and

12 ‘‘(C) the term ‘letters and documents’

13 means—

14 ‘‘(i) data described in General Head15 note 4(c) of the Harmonized Tariff Sched16 ule of the United States,

17 ‘‘(ii) securities and similar evidences

18 of value described in heading 4907 of such

19 Schedule, but not monetary instruments

20 defined pursuant to chapter 53 of title 31,

21 United States Code, and

22 ‘‘(iii) personal correspondence, wheth23 er on paper, cards, photographs, tapes, or

24 other media.’’.
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1 SEC. 206. INVOICE CONTENTS.

2 Section 481 (19 U.S.C. 1481) is amended—

3 (1) by amending subsection (a)—

4 (A) by amending the matter preceding

5 paragraph (1) to read as follows: ‘‘IN GEN6 ERAL.—All invoices of merchandise to be im7 ported into the United States and any elec8 tronic equivalent thereof considered acceptable

9 by the Secretary in regulations prescribed under

10 this section shall set forth, in written, elec11 tronic, or such other form as the Secretary

12 shall prescribe, the following:’’,

13 (B) by amending paragraph (3) to read as

14 follows:

15 ‘‘(3) A detailed description of the merchandise,

16 including the commercial name by which each item

17 is known, the grade or quality, and the marks, num18 bers, or symbols under which sold by the seller or

19 manufacturer in the country of exportation, together

20 with the marks and numbers of the packages in

21 which the merchandise is packed;’’, and

22 (C) by amending paragraph (10) to read

23 as follows:

24 ‘‘(10) Any other fact that the Secretary may by

25 regulation require as being necessary to a proper ap-
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1 praisement, examination and classification of the

2 merchandise.’’;

3 (2) by amending subsection (c) to read as fol4 lows:

5 ‘‘(c) IMPORTER PROVISION OF INFORMATION.—Any

6 information required to be set forth on an invoice may

7 alternatively be provided by any of the parties qualifying

8 as an ‘importer of record’ under section 484(a)(2)(B) by

9 such means, in such form or manner, and within such time

10 as the Secretary shall by regulation prescribe.’’; and

11 (3) by inserting before the period at the end of

12 subsection (d) the following: ‘‘and may allow for the

13 submission or electronic transmission of partial in14 voices, electronic equivalents of invoices, bills, or

15 other documents or parts thereof, required under

16 this section’’.

17 SEC. 207. ENTRY OF MERCHANDISE.

18 Section 484 (19 U.S.C. 1484) is amended to read as

19 follows:

20 ‘‘SEC. 484. ENTRY OF MERCHANDISE.

21 ‘‘(a) REQUIREMENT AND TIME.—

22 ‘‘(1) Except as provided in sections 490, 498,

23 552, 553, and 336(j), one of the parties qualifying

24 as ‘importer of record’ under paragraph (2)(B), ei-
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1 ther in person or by an agent authorized by the

2 party in writing, shall, using reasonable care—

3 ‘‘(A) make entry therefor by filing with the

4 Customs Service—

5 ‘‘(i) such documentation or, pursuant

6 to an electronic data interchange system,

7 such information as is necessary to enable

8 the Customs Service to determine whether

9 the merchandise may be released from cus10 toms custody, and

11 ‘‘(ii) notification whether an import

12 activity summary statement will be filed;

13 and

14 ‘‘(B) complete the entry by filing with the

15 Customs Service the declared value, classifica16 tion and rate of duty applicable to the merchan17 dise, and such other documentation or, pursu18 ant to an electronic data interchange system,

19 such other information as is necessary to enable

20 the Customs Service to—

21 ‘‘(i) properly assess duties on the mer22 chandise,

23 ‘‘(ii) collect accurate statistics with re24 spect to the merchandise, and
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1 ‘‘(iii) determine whether any other ap2 plicable requirement of law (other than a

3 requirement relating to release from cus4 toms custody) is met.

5 ‘‘(2)(A) The documentation or information re6 quired under paragraph (1) with respect to any im7 ported merchandise shall be filed or transmitted in

8 such manner and within such time periods as the

9 Secretary shall by regulation prescribe. Such regula10 tions shall provide for the filing of import activity

11 summary statements, covering entries made during a

12 calendar month, within such time period as is pre13 scribed in regulations but not to exceed the 20th day

14 following such calendar month.

15 ‘‘(B) When an entry of merchandise is made

16 under this section, the required documentation or in17 formation shall be filed or electronically transmitted

18 either by the owner or purchaser of the merchandise

19 or, when appropriately designated by the owner, pur20 chaser, or consignee of the merchandise, a person

21 holding a valid license under section 641. When a

22 consignee declares on entry that he is the owner or

23 purchaser of merchandise the Customs Service may,

24 without liability, accept the declaration. For the pur25 poses of this Act, the importer of record must be one
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1 of the parties who is eligible to file the documenta2 tion or information required by this section.

3 ‘‘(C) The Secretary, in prescribing regulations

4 to carry out this subsection, shall establish proce5 dures which insure the accuracy and timeliness of

6 import statistics, particularly statistics relevant to

7 the classification and valuation of imports. Correc8 tions of errors in such statistical data shall be trans9 mitted immediately to the Director of the Bureau of

10 the Census, who shall make corrections in the statis11 tics maintained by the Bureau. The Secretary shall

12 also provide, to the maximum extent practicable, for

13 the protection of the revenue, the enforcement of

14 laws governing the importation and exportation of

15 merchandise, the facilitation of the commerce of the

16 United States, and the equal treatment of all im17 porters of record of imported merchandise.

18 ‘‘(b) RECONCILIATION.—A party that electronically

19 transmits an entry summary or import activity summary

20 statement may at the time of filing such summary or

21 statement notify the Customs Service of his intention to

22 file a reconciliation pursuant to such regulations as the

23 Secretary may prescribe. Such reconciliation must be filed

24 by the importer of record within such time period as is

25 prescribed by regulation but no later than 15 months fol-
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1 lowing the filing of the entry summary or import activity

2 summary statement. Before filing a reconciliation, an im3 porter of record shall post bond or other security pursuant

4 to such regulations as the Secretary may prescribe.

5 ‘‘(c) RELEASE OF MERCHANDISE.—The Customs

6 Service may permit the entry and release of merchandise

7 from customs custody in accordance with such regulations

8 as the Secretary may prescribe. No officer of the Customs

9 Service shall be liable to any person with respect to the

10 delivery of merchandise released from customs custody in

11 accordance with such regulations.

12 ‘‘(d) SIGNING AND CONTENTS.—Entries shall be

13 signed by the importer of record, or his agent, unless filed

14 pursuant to an electronic data interchange system. If elec15 tronically filed, each transmission of data shall be certified

16 by an importer of record or his agent, one of whom shall

17 be resident in the United States for purposes of receiving

18 service of process, as being true and correct to the best

19 of his knowledge and belief, and such transmission shall

20 be binding in the same manner and to the same extent

21 as a signed document. The entry shall set forth such facts

22 in regard to the importation as the Secretary may require

23 and shall be accompanied by such invoices, bills of lading,

24 certificates, and documents, or their electronically submit25 ted equivalents, as are required by regulation.
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1 ‘‘(e) PRODUCTION OF INVOICE.—The Secretary may

2 provide by regulation for the production of an invoice,

3 parts thereof, or the electronic equivalents thereof, in such

4 manner and form, and under such terms and conditions,

5 as the Secretary considers necessary.

6 ‘‘(f) STATISTICAL ENUMERATION.—The Secretary,

7 the Secretary of Commerce, and the United States Inter8 national Trade Commission shall establish from time to

9 time for statistical purposes an enumeration of articles in

10 such detail as in their judgment may be necessary, com11 prehending all merchandise imported into the United

12 States and exported from the United States, and shall

13 seek, in conjunction with statistical programs for domestic

14 production and programs for achieving international har15 monization of trade statistics, to establish the comparabil16 ity thereof with such enumeration of articles. All import

17 entries and export declarations shall include or have at18 tached thereto an accurate statement specifying, in terms

19 of such detailed enumeration, the kinds and quantities of

20 all merchandise imported and exported and the value of

21 the total quantity of each kind of article.

22 ‘‘(g) STATEMENT OF COST OF PRODUCTION.—Under

23 such regulations as the Secretary may prescribe, the Cus24 toms Service may require a verified statement from the

25 manufacturer or producer showing the cost of producing
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1 the imported merchandise, if the Customs Service consid2 ers such verification necessary for the appraisement of

3 such merchandise.

4 ‘‘(h) ADMISSIBILITY OF DATA ELECTRONICALLY

5 TRANSMITTED.—Any entry or other information transmit6 ted by means of an authorized electronic data interchange

7 system shall be admissible in any and all administrative

8 and judicial proceedings as evidence of such entry or infor9 mation.’’.

10 SEC. 208. APPRAISEMENT AND OTHER PROCEDURES.

11 Section 500 (19 U.S.C. 1500) is amended—

12 (1) by striking out ‘‘The appropriate customs

13 officer’’ and inserting ‘‘The Customs Service’’;

14 (2) by striking out ‘‘appraise’’ in subsection (a)

15 and inserting ‘‘fix the final appraisement of’’;

16 (3) by striking out ‘‘ascertain the’’ in sub17 section (b) and inserting ‘‘fix the final’’;

18 (4) by amending subsection (c)—

19 (A) by inserting ‘‘final’’ after ‘‘fix the’’,

20 and

21 (B) by inserting ‘‘, taxes, and fees’’ after

22 ‘‘duties’’ wherever it appears; and

23 (5) by amending subsections (d) and (e) to read

24 as follows:
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1 ‘‘(d) liquidate the entry and reconciliation, if

2 any, of such merchandise; and

3 ‘‘(e) give or transmit, pursuant to an electronic

4 data interchange system, notice of such liquidation

5 to the importer, his consignee, or agent in such form

6 and manner as the Secretary shall by regulation pre7 scribe.’’.

8 SEC. 209. VOLUNTARY RELIQUIDATIONS.

9 Section 501 (19 U.S.C. 1501) is amended—

10 (1) by striking out ‘‘the appropriate customs of11 ficer on his own initiative’’ and inserting ‘‘the Cus12 toms Service’’;

13 (2) by inserting ‘‘or transmitted’’ after ‘‘given’’

14 wherever it appears; and

15 (3) by amending the section heading to read as

16 follows:

17 ‘‘SEC. 501. VOLUNTARY RELIQUIDATIONS BY THE CUS18 TOMS SERVICE.’’.

19 SEC. 210. APPRAISEMENT REGULATIONS.

20 Section 502 (19 U.S.C. 1502) is amended—

21 (1) by amending subsection (a)—

22 (A) by inserting ‘‘(including regulations es23 tablishing procedures for the issuance of bind24 ing rulings prior to the entry of the merchan25 dise concerned)’’ after ‘‘law’’,
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1 (B) by striking out ‘‘ports of entry, and’’

2 inserting ‘‘ports of entry. The Secretary’’,

3 (C) by inserting ‘‘or classifying’’ after ‘‘ap4 praising’’ wherever it appears, and

5 (D) by striking out ‘‘such port’’ and insert6 ing ‘‘any port, and may direct any customs offi7 cer at any port to review entries of merchandise

8 filed at any other port’’; and

9 (2) by striking out subsection (b) and redesig10 nating subsection (c) as subsection (b).

11 SEC. 211. LIMITATION ON LIQUIDATION.

12 Section 504 (19 U.S.C. 1504) is amended—

13 (1) by amending subsection (a)—

14 (A) by striking out ‘‘Except as provided in

15 subsection (b),’’ and inserting ‘‘Unless an entry

16 is extended under subsection (b) or suspended

17 as required by statute or court order,’’,

18 (B) by striking out ‘‘or’’ at the end of

19 paragraph (2),

20 (C) by inserting ‘‘or’’ after the semicolon

21 at the end of paragraph (3), and

22 (D) by inserting the following new para23 graph after paragraph (3):

24 ‘‘(4) if a reconciliation is filed, or should have

25 been filed, the date of the filing under section 484
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1 or the date the reconciliation should have been

2 filed;’’; and

3 (2) by amending subsections (b), (c), and (d) to

4 read as follows:

5 ‘‘(b) EXTENSION.—The Secretary may extend the pe6 riod in which to liquidate an entry if—

7 ‘‘(1) the information needed for the proper ap8 praisement or classification of the merchandise, or

9 for insuring compliance with applicable law, is not

10 available to the Customs Service; or

11 ‘‘(2) the importer of record requests such exten12 sion and shows good cause therefor.

13 The Secretary shall give notice of an extension under this

14 subsection to the importer of record and the surety of such

15 importer of record. Notice shall be in such form and man16 ner (which may include electronic transmittal) as the Sec17 retary shall by regulation prescribe. Any entry the liquida18 tion of which is extended under this subsection shall be

19 treated as having been liquidated at the rate of duty,

20 value, quantity, and amount of duty asserted at the time

21 of entry by the importer of record at the expiration of 4

22 years from the applicable date specified in subsection (a).

23 ‘‘(c) NOTICE OF SUSPENSION.—If the liquidation of

24 any entry is suspended, the Secretary shall by regulation

25 require that notice of the suspension be provided, in such
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1 manner as the Secretary considers appropriate, to the im2 porter of record and to any authorized agent and surety

3 of such importer of record.

4 ‘‘(d) REMOVAL OF SUSPENSION.—When a suspension

5 required by statute or court order is removed, the Customs

6 Service shall liquidate the entry within 6 months after re7 ceiving notice of the removal from the Department of

8 Commerce, other agency, or a court with jurisdiction over

9 the entry. Any entry not liquidated by the Customs Service

10 within 6 months after receiving such notice shall be treat11 ed as having been liquidated at the rate of duty, value,

12 quantity, and amount of duty asserted at the time of entry

13 by the importer of record.’’.

14 SEC. 212. PAYMENT OF DUTIES AND FEES.

15 (a) AMENDMENT TO SECTION 505.—Section 505

16 (U.S.C. 1505) is amended to read as follows:

17 ‘‘SEC. 505. PAYMENT OF DUTIES AND FEES.

18 ‘‘(a) DEPOSIT OF ESTIMATED DUTIES, FEES, AND

19 INTEREST.—Unless merchandise is entered for warehouse

20 or transportation, or under bond, the importer of record

21 shall deposit with the Customs Service at the time of mak22 ing entry, or at such later time as the Secretary may pre23 scribe by regulation, the amount of duties and fees esti24 mated to be payable thereon. Such regulations may pro25 vide that estimated duties and fees shall be deposited be-
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1 fore or at the time an import activity summary statement

2 is filed. If an import activity summary statement is filed,

3 the estimated duties and fees shall be deposited together

4 with interest, at a rate determined by the Secretary, ac5 cruing from the first date of the month the statement is

6 required to be filed until the date such statement is actu7 ally filed.

8 ‘‘(b) COLLECTION OR REFUND OF DUTIES, FEES,

9 AND INTEREST DUE UPON LIQUIDATION OR RELIQUIDA10 TION.—The Customs Service shall collect any increased or

11 additional duties and fees due, together with interest

12 thereon, or refund any excess moneys deposited, together

13 with interest thereon, as determined on a liquidation or

14 reliquidation. Duties, fees, and interest determined to be

15 due upon liquidation or reliquidation are due 30 days after

16 issuance of the bill for such payment. Refunds of excess

17 moneys deposited, together with interest thereon, shall be

18 paid within 30 days of liquidation or reliquidation.

19 ‘‘(c) INTEREST.—Interest assessed due to an

20 underpayment of duties, fees, or interest shall accrue, at

21 a rate determined by the Secretary, from the date the im22 porter of record is required to deposit estimated duties,

23 fees, and interest to the date of liquidation or reliquidation

24 of the applicable entry or reconciliation. Interest on excess

25 moneys deposited shall accrue, at a rate determined by
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1 the Secretary, from the date the importer of record depos2 its estimated duties, fees, and interest to the date of liq3 uidation or reliquidation of the applicable entry or rec4 onciliation.

5 ‘‘(d) DELINQUENCY.—If duties, fees, and interest de6 termined to be due or refunded are not paid in full within

7 the 30-day period specified in subsection (b), any unpaid

8 balance shall be considered delinquent and bear interest

9 by 30-day periods, at a rate determined by the Secretary,

10 from the date of liquidation or reliquidation until the full

11 balance is paid. No interest shall accrue during the 30-

12 day period in which payment is actually made.’’.

13 (b) CONFORMING AMENDMENT.—Subsection (d) of

14 section 520 (19 U.S.C. 1520(d)) is repealed.

15 SEC. 213. ABANDONMENT AND DAMAGE.

16 Section 506 (19 U.S.C. 1506) is amended—

17 (1) by striking out ‘‘the appropriate customs of18 ficer’’ and ‘‘such customs officer’’ wherever they ap19 pear and inserting ‘‘the Customs Service’’;

20 (2) by amending paragraph (1)—

21 (A) by striking out ‘‘not sent to the ap22 praiser’s stores for’’ and inserting ‘‘released

23 without an’’,

24 (B) by striking out ‘‘of the examination

25 packages or quantities of merchandise’’,
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1 (C) by striking out ‘‘the appraiser’s stores’’

2 and inserting ‘‘the Customs Service’’, and

3 (D) by inserting ‘‘or entry’’ after ‘‘in4 voice’’, and

5 (3) by amending paragraph (2)—

6 (A) by inserting ‘‘, electronically or other7 wise,’’ after ‘‘files’’, and

8 (B) by striking out ‘‘written’’.

9 SEC. 214. CUSTOMS OFFICER’S IMMUNITY.

10 Section 513 (19 U.S.C. 1513) is amended to read as

11 follows:

12 ‘‘SEC. 513. CUSTOMS OFFICER’S IMMUNITY.

13 ‘‘No customs officer shall be liable in any way to any

14 person for or on account of—

15 ‘‘(1) any ruling or decision regarding the ap16 praisement or the classification of any imported

17 merchandise or regarding the duties, fees, and taxes

18 charged thereon,

19 ‘‘(2) the collection of any dues, charges, duties,

20 fees, and taxes on or on account of any imported

21 merchandise, or

22 ‘‘(3) any other matter or thing as to which any

23 person might under this Act be entitled to protest or

24 appeal from the decision of such officer.’’.
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1 SEC. 215. PROTESTS.

2 Section 514 (19 U.S.C. 1514) is amended—

3 (1) by amending subsection (a)—

4 (A) by striking out ‘‘appropriate customs

5 officer’’ in the text preceding paragraph (1) and

6 inserting ‘‘Customs Service’’,

7 (B) by inserting ‘‘or reconciliation as to

8 the issues contained therein,’’ after ‘‘entry,’’ in

9 paragraph (5),

10 (C) by striking out ‘‘and’’ and inserting

11 ‘‘or’’ at the end of paragraph (6),

12 (D) by striking out the comma at the end

13 of paragraph (7) and inserting a semicolon, and

14 (E) by striking out ‘‘appropriate customs

15 officer, who’’ in the text following paragraph

16 (7) and inserting ‘‘Customs Service, which’’;

17 (2) by amending subsection (b) by striking out

18 ‘‘appropriate customs officer’’ and inserting ‘‘Cus19 toms Service’’;

20 (3) by amending the first sentence of subsection

21 (c)(1) to read as follows: ‘‘A protest of a decision

22 made under subsection (a) shall be filed in writing,

23 or transmitted electronically pursuant to an elec24 tronic data interchange system, in accordance with

25 regulations prescribed by the Secretary. A protest

26 must set forth distinctly and specifically—
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1 ‘‘(A) each decision described in subsection

2 (a) as to which protest is made;

3 ‘‘(B) each category of merchandise affected

4 by each decision set forth under paragraph (1);

5 ‘‘(C) the nature of each objection and the

6 reasons therefor; and

7 ‘‘(D) any other matter required by the Sec8 retary by regulation.’’;

9 (4) by redesignating paragraph (2) of sub10 section (c) as paragraph (3) and by striking out

11 ‘‘such customs officer’’ in such redesignated para12 graph and inserting ‘‘the Customs Service’’;

13 (5) by designating the last sentence of para14 graph (1) of subsection (c) as paragraph (2);

15 (6) by striking out ‘‘customs officer’’ in sub16 section (d) and inserting ‘‘Customs Service’’; and

17 (7) by amending the section heading to read as

18 follows:

19 ‘‘SEC. 514. PROTEST AGAINST DECISIONS OF THE CUS20 TOMS SERVICE.’’.

21 SEC. 216. REFUNDS AND ERRORS.

22 Section 520 (19 U.S.C. 1520) is amended—

23 (1) by inserting ‘‘or reconciliation’’ after

24 ‘‘entry’’ in paragraphs (1) and (4) of subsection (a);

25 and
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1 (2) by amending subsection (c)—

2 (A) by striking out ‘‘appropriate customs

3 officer’’ wherever it appears and inserting

4 ‘‘Customs Service’’,

5 (B) by inserting ‘‘or reconciliation’’ after

6 ‘‘reliquidate an entry’’, and

7 (C) by inserting ‘‘, whether or not result8 ing from or contained in electronic trans9 mission,’’ after ‘‘inadvertence’’ the first place it

10 appears in paragraph (1).

11 SEC. 217. BONDS AND OTHER SECURITY.

12 Section 623 (19 U.S.C. 1623) is amended—

13 (1) by inserting ‘‘and the manner in which the

14 bond may be filed with or, pursuant to an author15 ized electronic data interchange system, transmitted

16 to the Customs Service’’ after ‘‘form of such bond’’

17 in subsection (b)(1); and

18 (2) by inserting at the end of subsection (d) the

19 following new sentence: ‘‘Any bond transmitted to

20 the Customs Service pursuant to an authorized elec21 tronic data interchange system shall have the same

22 force and effect and be binding upon the parties

23 thereto as if such bond were manually executed,

24 signed, and filed.’’.
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1 SEC. 218. CUSTOMHOUSE BROKERS.

2 Section 641 (19 U.S.C. 1641) is amended—

3 (1) by adding at the end of subsection (a)(2)

4 the following new sentence: ‘‘It also includes the

5 preparation of documents or forms in any format

6 and the electronic transmission of documents, in7 voices, bills, or parts thereof, intended to be filed

8 with the Customs Service in furtherance of such ac9 tivities, whether or not signed or filed by the pre10 parer, or activities relating to such preparation, but

11 does not include the mere electronic transmission of

12 data received for transmission to Customs.’’;

13 (2) by amending subsection (c)(1) to read as

14 follows:

15 ‘‘(1) IN GENERAL.—Each person granted a cus16 toms broker’s license under subsection (b) shall be

17 issued, in accordance with such regulations as the

18 Secretary shall prescribe, either or both of the fol19 lowing:

20 ‘‘(A) A national permit for the conduct of

21 such customs business as the Secretary pre22 scribes by regulation.

23 ‘‘(B) A permit for each customs district in

24 which that person conducts customs business

25 and, except as provided in paragraph (2), regu26 larly employs at least 1 individual who is li-
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1 censed under subsection (b)(2) to exercise re2 sponsible supervision and control over the cus3 toms business conducted by that person in that

4 district.’’;

5 (3) by inserting at the end of subsection (c) the

6 following new paragraph:

7 ‘‘(4) APPOINTMENT OF SUBAGENTS.—Notwith8 standing subsection (c)(1), upon the implementation

9 by the Secretary under section 413(b)(2) of the com10 ponent of the National Customs Automation Pro11 gram referred to in section 411(a)(2)(B), a licensed

12 broker may appoint another licensed broker holding

13 a permit in a customs district to act on its behalf

14 as its subagent in that district if such activity re15 lates to the filing of information that is permitted by

16 law or regulation to be filed electronically. A licensed

17 broker appointing a subagent pursuant to this para18 graph shall remain liable for any and all obligations

19 arising under bond and any and all duties, taxes,

20 and fees, as well as any other liabilities imposed by

21 law, and shall be precluded from delegating to a

22 subagent such liability.’’;

23 (4) by amending subsection (d)(2)(B)—
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1 (A) by striking out ‘‘appropriate customs

2 officer’’ and inserting ‘‘Customs Service’’ in the

3 first and third sentences,

4 (B) by striking out ‘‘he’’ and inserting ‘‘it’’

5 in the third sentence,

6 (C) by striking out ‘‘15 days’’ and insert7 ing ‘‘30 days’’ in the third sentence,

8 (D) by striking out ‘‘the appropriate cus9 toms officer and the customs broker; they’’ and

10 inserting ‘‘the Customs Service and the customs

11 broker; which’’ in the sixth sentence,

12 (E) by striking out ‘‘his’’ and inserting

13 ‘‘the’’ in the seventh sentence, and

14 (F) by striking out ‘‘for his decision’’ and

15 inserting ‘‘for the decision’’ in the eighth sen16 tence; and

17 (5) by amending subsection (f) by striking out

18 ‘‘United States Customs Service.’’ and inserting

19 ‘‘Customs Service. The Secretary may not prohibit

20 customs brokers from limiting their liability to other

21 persons in the conduct of customs business. For pur22 poses of this subsection or any other provision of

23 this Act pertaining to recordkeeping, all data re24 quired to be retained by a customs broker may be

25 kept on microfilm, optical disc, magnetic tapes, disks
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1 or drums, video files or any other electrically gen2 erated medium. Pursuant to such regulations as the

3 Secretary shall prescribe, the conversion of data to

4 such storage medium may be accomplished at any

5 time subsequent to the relevant customs transaction

6 and the data may be retained in a centralized basis

7 according to such broker’s business system.’’.

8 SEC. 219. CONFORMING AMENDMENTS.

9 (a) PLACE OF ENTRY AND UNLADING.—Section 447

10 (19 U.S.C. 1447) is amended by striking out ‘‘the appro11 priate customs officer shall consider’’ and inserting ‘‘the

12 Customs Service considers’’.

13 (b) UNLADING.—Section 449 (19 U.S.C. 1449) is

14 amended by striking out ‘‘appropriate customs officer of

15 such port issues a permit for the unlading of such mer16 chandise or baggage,’’ and inserting ‘‘Customs Service is17 sues a permit for the unlading of such merchandise or

18 baggage at such port,’’.

19 TITLE III—MISCELLANEOUS

20 AMENDMENTS TO THE TAR21 IFF ACT OF 1930

22 SEC. 301. ADMINISTRATIVE EXEMPTIONS.

23 Section 321 (19 U.S.C. 1321) is amended—

24 (1) by amending subsection (a)(1)—
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1 (A) by striking out ‘‘of less than $10’’ and

2 inserting ‘‘of an amount specified by the Sec3 retary by regulation, but not less than $20,’’,

4 (B) by inserting ‘‘, fees,’’ after ‘‘duties’’

5 wherever it appears, and

6 (C) by striking out ‘‘and’’ at the end there7 of;

8 (2) by amending subsection (a)(2)—

9 (A) by striking out ‘‘shall not exceed—’’

10 and inserting ‘‘shall not exceed an amount spec11 ified by the Secretary by regulation, but not

12 less than—’’,

13 (B) by striking out ‘‘$50’’ and ‘‘$100’’ in

14 subparagraph (A) and inserting ‘‘$100’’ and

15 ‘‘$200’’, respectively,

16 (C) by striking out ‘‘$25’’ in subparagraph

17 (B) and inserting ‘‘$200’’,

18 (D) by striking out ‘‘$5’’ in subparagraph

19 (C) and inserting ‘‘$200’’, and

20 (E) by striking the period at the end there21 of and inserting ‘‘; and’’;

22 (3) by inserting a new paragraph (3) at the end

23 of subsection (a) to read as follows:

24 ‘‘(3) waive the collection of duties, fees, and

25 taxes due on entered merchandise when such duties,
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1 fees, or taxes are less than $20 or such greater

2 amount as may be specified by the Secretary by reg3 ulation.’’; and

4 (4) by amending subsection (b)—

5 (A) by striking out ‘‘to diminish any dollar

6 amount specified in subsection (a) and’’; and

7 (B) by striking out ‘‘such subsection’’

8 wherever it appears and inserting ‘‘subsection

9 (a)’’.

10 SEC. 302. REPORT OF ARRIVAL.

11 Section 433 (19 U.S.C. 1433) is amended—

12 (1) by amending subsection (a)(1)—

13 (A) by striking out ‘‘or’’ at the end of sub14 paragraph (B),

15 (B) by inserting ‘‘or’’ after the semicolon

16 at the end of subparagraph (C), and

17 (C) by adding after subparagraph (C) the

18 following:

19 ‘‘(D) any vessel which has visited a hover20 ing vessel or received merchandise while outside

21 the territorial sea;’’;

22 (2) by striking out ‘‘present to customs officers

23 such’’ in subsection (d) and inserting ‘‘present, or

24 transmit pursuant to an electronic data interchange
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1 system, to the Customs Service such information,

2 data,’’; and

3 (3) by amending subsection (e) to read as fol4 lows:

5 ‘‘(e) PROHIBITION ON DEPARTURES AND DIS6 CHARGE.—Unless otherwise authorized by law, a vessel,

7 aircraft or vehicle after arriving in the United States or

8 Virgin Islands may, but only in accordance with regula9 tions prescribed by the Secretary—

10 ‘‘(1) depart from the port, place, or airport of

11 arrival; or

12 ‘‘(2) discharge any passenger or merchandise

13 (including baggage).’’.

14 SEC. 303. ENTRY OF VESSELS.

15 Section 434 (19 U.S.C. 1434) is amended to read as

16 follows:

17 ‘‘SEC. 434. ENTRY; VESSELS.

18 ‘‘(a) FORMAL ENTRY.—Within 24 hours (or such

19 other period of time as may be provided under subsection

20 (c)(2)) after the arrival at any port or place in the United

21 States of—

22 ‘‘(1) any vessel from a foreign port or place;

23 ‘‘(2) any foreign vessel from a domestic port;
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1 ‘‘(3) any vessel of the United States having on

2 board bonded merchandise or foreign merchandise

3 for which entry has not been made; or

4 ‘‘(4) any vessel which has visited a hovering

5 vessel or has delivered or received merchandise while

6 outside the territorial sea;

7 the master of the vessel shall, unless otherwise provided

8 by law, make formal entry at the nearest customs facility

9 or such other place as the Secretary may prescribe by reg10 ulation.

11 ‘‘(b) PRELIMINARY ENTRY.—The Secretary may by

12 regulation permit the master to make preliminary entry

13 of the vessel with the Customs Service in lieu of formal

14 entry or before formal entry is made. In permitting pre15 liminary entry, the Customs Service shall board a suffi16 cient number of vessels to ensure compliance with the laws

17 it enforces.

18 ‘‘(c) REGULATIONS.—The Secretary may by regula19 tion—

20 ‘‘(1) prescribe the manner and format in which

21 entry under subsection (a) or subsection (b), or

22 both, must be made, and such regulations may pro23 vide that any such entry may be made electronically

24 pursuant to an electronic data interchange system;

25 ‘‘(2) provide that—
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1 ‘‘(A) formal entry must be made within a

2 greater or lesser time than 24 hours after arriv3 al, but in no case more than 48 hours after ar4 rival, and

5 ‘‘(B) formal entry may be made before ar6 rival; and

7 ‘‘(3) authorize the Customs Service to permit

8 entry or preliminary entry of any vessel to be made

9 at a place other than a designated port of entry,

10 under such conditions as may be prescribed.’’.

11 SEC. 304. UNLAWFUL RETURN OF FOREIGN VESSEL PA12 PERS.

13 Section 438 (19 U.S.C. 1438) is amended—

14 (1) by striking out ‘‘section 435’’ and inserting

15 ‘‘section 434’’;

16 (2) by inserting ‘‘, or regulations issued there17 under,’’ after ‘‘of this Act’’; and

18 (3) by striking out ‘‘the appropriate customs of19 ficer of the port where such vessel has been en20 tered.’’ and inserting ‘‘the Customs Service in the

21 port in which such vessel has entered.’’.

22 SEC. 305. VESSELS NOT REQUIRED TO ENTER.

23 Section 441 (19 U.S.C. 1441) is amended—

24 (1) by amending the text preceding paragraph

25 (1) to read as follows: ‘‘The following vessels shall
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1 not be required to make entry under section 434 or

2 to obtain clearance under section 4197 of the Re3 vised Statutes of the United States (46 U.S.C. App.

4 91):’’;

5 (2) by amending paragraph (3) to read as fol6 lows:

7 ‘‘(3) Any vessel carrying passengers on excursion

8 from the United States Virgin Islands to the British Vir9 gin Islands and returning, if—

10 ‘‘(A) the vessel does not in any way violate the

11 customs or navigation laws of the United States;

12 ‘‘(B) the vessel has not visited any hovering

13 vessel; and

14 ‘‘(C) the master of the vessel, if there is on

15 board any article required by law to be entered, re16 ports the article to the Customs Service immediately

17 upon arrival.’’;

18 (3) by redesignating paragraphs (4) and (5) as

19 paragraphs (5) and (6), respectively, and inserting

20 after paragraph (3) the following:

21 ‘‘(4) Any United States documented vessel with rec22 reational endorsement or any undocumented United

23 States pleasure vessel not engaged in trade, if—
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1 ‘‘(A) the vessel complies with the reporting re2 quirements of section 433, and with the customs and

3 navigation laws of the United States;

4 ‘‘(B) the vessel has not visited any hovering

5 vessel; and

6 ‘‘(C) the master of, and any other person on

7 board, the vessel, if the master or such person has

8 on board any article required by law to be entered

9 or declared, reports such article to the Customs

10 Service immediately upon arrival;’’; and

11 (4) by amending the section heading to read as

12 follows:

‘‘Sec. 441. Exceptions to vessel entry and clearance requirements.’’.

13 SEC. 306. UNLADING.

14 Section 448(a) (19 U.S.C. 1448(a)) is amended—

15 (1) by amending the first sentence—

16 (A) by striking out ‘‘enter)’’ and inserting

17 ‘‘enter or clear)’’,

18 (B) by striking out ‘‘or vehicle arriving

19 from a foreign port or place’’ and inserting ‘‘re20 quired to make entry under section 434, or ve21 hicle required to report arrival under section

22 433,’’,

23 (C) by inserting ‘‘or transmitted pursuant

24 to an electronic data interchange system’’ after

25 ‘‘issued’’, and
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1 (D) by striking out the colon after ‘‘offi2 cer’’ and the proviso and inserting a period;

3 (2) by amending the second sentence—

4 (A) by striking out ‘‘, preliminary or other5 wise,’’, and

6 (B) by inserting ‘‘, electronically pursuant

7 to an authorized electronic data interchange

8 system or otherwise,’’ after ‘‘may issue a per9 mit’’;

10 (3) by striking out the last sentence and insert11 ing the following: ‘‘The owner or master of any ves12 sel or vehicle, or agent thereof, shall notify the Cus13 toms Service of any merchandise or baggage so un14 laden for which entry is not made within the time

15 prescribed by law or regulation. The Secretary shall

16 by regulation prescribe administrative penalties not

17 to exceed $1,000 for each bill of lading for which no18 tice is not given. Any such administrative penalty

19 shall be subject to mitigation and remittance under

20 section 618. Such unentered merchandise or bag21 gage shall be the responsibility of the master or per22 son in charge of the importing vessel or vehicle, or

23 agent thereof, until it is removed from the carrier’s

24 control in accordance with section 490.’’; and
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1 (4) by striking out ‘‘the appropriate customs of2 ficer’’ and ‘‘such customs officer’’ wherever they ap3 pear and inserting ‘‘the Customs Service’’.

4 SEC. 307. DECLARATIONS.

5 Section 485 (19 U.S.C. 1485) is amended—

6 (1) by amending subsection (a)—

7 (A) by inserting ‘‘or transmit electroni8 cally’’ after ‘‘file’’, and

9 (B) by inserting ‘‘and manner’’ after

10 ‘‘form’’;

11 (2) by amending subsection (d)—

12 (A) by striking out ‘‘A importer’’ and in13 serting ‘‘An importer’’, and

14 (B) by striking out ‘‘a importer’’ and in15 serting ‘‘an importer’’; and

16 (3) by inserting after subsection (f) the follow17 ing new subsection:

18 ‘‘(g) EXPORTED MERCHANDISE RETURNED AS

19 UNDELIVERABLE.—With respect to any importation of

20 merchandise to which General Headnote 4(e) of the Har21 monized Tariff Schedule of the United States applies, any

22 person who gained any benefit from, or met any obligation

23 to, the United States as a result of the prior exportation

24 of such merchandise shall, in accordance with regulations

25 prescribed by the Secretary, within a reasonable time in-
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1 form the Customs Service of the return of the merchan2 dise.’’.

3 SEC. 308. GENERAL ORDERS.

4 Section 490 (19 U.S.C. 1490) is amended—

5 (1) by amending subsection (a) to read as fol6 lows:

7 ‘‘(a) INCOMPLETE ENTRY.—

8 ‘‘(1) Whenever—

9 ‘‘(A) the entry of any imported merchan10 dise is not made within the time provided by

11 law or by regulation prescribed by the Sec12 retary;

13 ‘‘(B) the entry of imported merchandise is

14 incomplete because of failure to pay the esti15 mated duties, fees, or interest;

16 ‘‘(C) in the opinion of the Customs Serv17 ice, the entry of imported merchandise cannot

18 be made for want of proper documents or other

19 cause; or

20 ‘‘(D) the Customs Service believes that any

21 merchandise is not correctly and legally

22 invoiced;

23 the carrier (unless subject to subsection (c)) shall

24 notify the bonded warehouse of such unentered mer25 chandise.
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1 ‘‘(2) After notification under paragraph (1), the

2 bonded warehouse shall arrange for the transpor3 tation and storage of the merchandise at the risk

4 and expense of the consignee. The merchandise shall

5 remain in the bonded warehouse until—

6 ‘‘(A) entry is made or completed and the

7 proper documents are produced;

8 ‘‘(B) the information and data necessary

9 for entry are transmitted to the Customs Serv10 ice pursuant to an authorized electronic data

11 interchange system; or

12 ‘‘(C) a bond is given for the production of

13 documents or the transmittal of data.’’;

14 (2) by amending subsection (b)—

15 (A) by amending the heading for sub16 section (b) to read as follows: ‘‘(b) REQUEST

17 FOR POSSESSION BY CUSTOMS.—’’, and

18 (B) by striking out ‘‘appropriate customs

19 officer’’ and inserting ‘‘Customs Service’’; and

20 (3) by adding at the end the following new sub21 section:

22 ‘‘(c) GOVERNMENT MERCHANDISE.—Any imported

23 merchandise that—

24 ‘‘(1) is described in any of paragraphs (1)

25 through (4) of subsection (a); and
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1 ‘‘(2) is consigned to, or owned by, the United

2 States Government;

3 shall be stored and disposed of in accordance with such

4 rules and procedures as the Secretary shall by regulation

5 prescribe.’’.

6 SEC. 309. UNCLAIMED MERCHANDISE.

7 Section 491 (19 U.S.C. 1491) is amended—

8 (1) by amending subsection (a)—

9 (A) by striking out ‘‘customs custody for

10 one year’’ in the first sentence and inserting ‘‘in

11 a bonded warehouse pursuant to section 490 for

12 6 months’’,

13 (B) by striking out ‘‘public store or bonded

14 warehouse for a period of one year’’ in the sec15 ond sentence and inserting ‘‘pursuant to section

16 490 in a bonded warehouse for 6 months’’,

17 (C) by striking out ‘‘estimated duties and

18 storage’’ in the first sentence and inserting ‘‘es19 timated duties, taxes, fees, interest, storage,’’,

20 (D) by inserting ‘‘taxes, fees, interest,’’

21 after ‘‘duties,’’ wherever it appears, and

22 (E) by striking out ‘‘duties’’ in the last

23 sentence and inserting ‘‘duties, taxes, interest,

24 and fees’’; and
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1 (2) by redesignating subsection (b) as sub2 section (e) and inserting after subsection (a) the fol3 lowing new subsections:

4 ‘‘(b) NOTICE OF TITLE VESTING IN THE UNITED

5 STATES.—At the end of the 6-month period referred to

6 in subsection (a), the Customs Service may, in lieu of sale

7 of the merchandise, provide notice to all known interested

8 parties that the title to such merchandise shall be consid9 ered to vest in the United States free and clear of any

10 liens or encumbrances, on the 30th day after the date of

11 the notice unless, before such 30th day—

12 ‘‘(1) the subject merchandise is entered or with13 drawn for consumption; and

14 ‘‘(2) payment is made of all duties, taxes, fees,

15 transfer and storage charges, and other expenses

16 that may have accrued thereon.

17 ‘‘(c) RETENTION, TRANSFER, DESTRUCTION, OR

18 OTHER DISPOSITION.—If title to any merchandise vests

19 in the United States by operation of subsection (b), such

20 merchandise may be retained by the Customs Service for

21 official use, transferred to any other Federal agency or

22 to any State or local agency, destroyed, or otherwise dis23 posed of in accordance with such regulations as the Sec24 retary shall prescribe. All transfer and storage charges or

25 expenses accruing on transferred merchandise shall be
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1 paid by the receiving agency, otherwise the charges and

2 expenses on such merchandise shall be paid out of the

3 Customs Forfeiture Fund.

4 ‘‘(d) PETITION.—Whenever any party, having lost a

5 substantial interest in merchandise by virtue of title vest6 ing in the United States under subsection (b), can estab7 lish such title or interest to the satisfaction of the Sec8 retary within 30 days after the day on which title vests

9 in the United States under subsection (b), or can establish

10 to the satisfaction of the Secretary that the party did not

11 receive notice under subsection (b), the Secretary may,

12 upon receipt of a timely and proper petition and upon

13 finding that the facts and circumstances warrant, pay

14 such party out of the Customs Forfeiture Fund the

15 amount the Secretary believes the party would have re16 ceived under section 493 had the merchandise been sold

17 and a proper claim filed. The decision of the Secretary

18 with respect to any such petition is final and conclusive

19 on all parties.’’; and

20 (3) by amending subsection (e) (as so redesig21 nated) by striking out ‘‘appropriate customs officer’’

22 in paragraph (3) and inserting ‘‘Customs Service’’.

23 SEC. 310. DESTRUCTION OF MERCHANDISE.

24 Section 492 (19 U.S.C. 1492) is amended—
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1 (1) by inserting ‘‘, retained for official use, or

2 otherwise disposed of’’ after ‘‘destroyed’’; and

3 (2) by striking out ‘‘appropriate customs offi4 cer’’ and inserting ‘‘Customs Service’’.

5 SEC. 311. PROCEEDS OF SALE.

6 Section 493 (19 U.S.C. 1493) is amended—

7 (1) by inserting ‘‘taxes, and fees,’’ after ‘‘du8 ties,’’;

9 (2) by striking out ‘‘by the appropriate customs

10 officer in the Treasury of the United States’’ and in11 serting ‘‘in the Customs Forfeiture Fund’’; and

12 (3) by striking out ‘‘such customs officer’’ and

13 inserting ‘‘the Customs Service’’.

14 SEC. 312. ENTRY UNDER REGULATIONS.

15 Section 498(a) (19 U.S.C. 1498(a)) is amended—

16 (1) by amending paragraph (1) to read as fol17 lows:

18 ‘‘(1) Merchandise, when—

19 ‘‘(A) the aggregate value of the shipment

20 does not exceed an amount specified by the Sec21 retary by regulation, but not more than $2,500;

22 or

23 ‘‘(B) different commercial facilitation and

24 risk considerations that may vary for different
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1 classes or kinds of merchandise or different

2 classes of transactions may dictate;’’; and

3 (2) by striking out ‘‘$10,000’’ in paragraph (2)

4 and inserting ‘‘such amounts as the Secretary may

5 prescribe’’.

6 SEC. 313. AMERICAN TRADEMARKS.

7 Section 526(e)(3) (19 U.S.C. 1526(e)(3)) is amend8 ed—

9 (1) by striking out ‘‘1 year’’ and inserting ‘‘90

10 days’’; and

11 (2) by striking out ‘‘appropriate customs offi12 cers’’ and inserting ‘‘the Customs Service’’.

13 SEC. 314. SEIZURE.

14 Section 612 (19 U.S.C. 1612) is amended—

15 (1) by amending subsection (a)—

16 (A) by striking out ‘‘the appropriate cus17 toms officer’’, ‘‘such officer’’ and ‘‘the customs

18 officer’’ wherever they appear and inserting

19 ‘‘the Customs Service’’, and

20 (B) by striking out ‘‘the appraiser’s return

21 and his’’ and inserting ‘‘its’’; and

22 (2) by amending subsection (b) to read as fol23 lows:

24 ‘‘(b) If the Customs Service determines that the ex25 pense of keeping the vessel, vehicle, aircraft, merchandise,
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1 or baggage is disproportionate to the value thereof, the

2 Customs Service may promptly order the destruction or

3 other appropriate disposition of such property under regu4 lations prescribed by the Secretary. No customs officer

5 shall be liable for the destruction or other disposition of

6 property made pursuant to this section.’’.

7 SEC. 315. CUSTOMS FORFEITURE FUND.

8 (a) AMENDMENT.—Section 613A (19 U.S.C. 1613b)

9 is amended—

10 (1) by redesignating subparagraphs (E) and

11 (F) of subsection (a)(3) as subparagraphs (G) and

12 (H), respectively;

13 (2) by inserting after subparagraph (D) of sub14 section (a)(3) the following new subparagraphs:

15 ‘‘(E) the payment of transfer and storage

16 charges and expenses under section 491(c);

17 ‘‘(F) the payment of claims against em18 ployees of the Customs Service settled by the

19 Secretary under section 630;’’; and

20 (3) by striking out ‘‘shall’’ in subsection (d)

21 and inserting ‘‘may’’.

22 (b) REFERENCE.—After the effective date of section

23 9703 of title 31, United States Code, any reference in the

24 Tariff Act of 1930 to the Customs Forfeiture Fund shall

25 be treated as being a reference to the Department of the
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1 Treasury Forfeiture Fund established by such section

2 9703.

3 SEC. 316. LIMITATION ON ACTIONS.

4 Section 621 (19 U.S.C. 1621) is amended—

5 (1) by inserting ‘‘any duty under section

6 592(d), 593A(d), or’’ before ‘‘any pecuniary pen7 alty’’; and

8 (2) by striking out ‘‘discovered:’’ and all that

9 follows thereafter and inserting the follow10 ing: ‘‘discovered; except that—

11 ‘‘(1) in the case of an alleged violation of sec12 tion 592 or 593A, no suit or action (including a suit

13 or action for restoration of lawful duties under sub14 section (d) of such sections) may be instituted unless

15 commenced within 5 years after the date of the al16 leged violation or, if such violation arises out of

17 fraud, within 5 years after the date of discovery of

18 fraud, and

19 ‘‘(2) the time of the absence from the United

20 States of the person subject to the penalty or forfeit21 ure, or of any concealment or absence of the prop22 erty, shall not be reckoned within the 5-year period

23 of limitation.’’.
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1 SEC. 317. COLLECTION OF FEES ON BEHALF OF OTHER

2 AGENCIES.

3 The Tariff Act of 1930 is amended by inserting after

4 section 528 the following new section:

5 ‘‘SEC. 529. COLLECTION OF FEES ON BEHALF OF OTHER

6 AGENCIES.

7 ‘‘The Customs Service shall be reimbursed from the

8 fees collected for the cost and expense, administrative and

9 otherwise, incurred in collecting any fees on behalf of any

10 government agency for any reason.’’.

11 SEC. 318. AUTHORITY TO SETTLE CLAIMS.

12 The Tariff Act of 1930 is amended by inserting after

13 section 629 the following new section:

14 ‘‘SEC. 630. AUTHORITY TO SETTLE CLAIMS.

15 ‘‘(a) IN GENERAL.—Notwithstanding any other pro16 vision of law and subject to subsection (b), the Secretary

17 may settle, for not more than $50,000 in any one case,

18 a claim for personal injury, death, or damage to, or loss

19 of, privately owned property caused by an investigative or

20 law enforcement officer (as defined in section 2680(h) of

21 title 28, United States Code) who is employed by the

22 Customs Service and acting within the scope of his or her

23 employment.

24 ‘‘(b) LIMITATIONS.—The Secretary may not pay a

25 claim under subsection (a) that—

26 ‘‘(1) concerns commercial property;
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1 ‘‘(2) is presented to the Secretary more than 1

2 year after it occurs; or

3 ‘‘(3) is presented by an officer or employee of

4 the United States Government and arose within the

5 scope of employment.

6 ‘‘(c) FINAL SETTLEMENT.—A claim may be paid

7 under this section only if the claimant accepts the amount

8 of settlement in complete satisfaction of the claim.’’.

9 SEC. 319. USE OF PRIVATE COLLECTION AGENCIES.

10 The Tariff Act of 1930 is amended by inserting after

11 section 630 the following new section:

12 ‘‘SEC. 631. USE OF PRIVATE COLLECTION AGENCIES.

13 ‘‘(a) IN GENERAL.—Notwithstanding any other pro14 vision of law, the Secretary, under such terms and condi15 tions as the Secretary considers appropriate, shall enter

16 into contracts and incur obligations with one or more per17 sons for collection services to recover indebtedness arising

18 under the customs laws and owed the United States Gov19 ernment, but only after the Customs Service has ex20 hausted all administrative efforts, including all claims

21 against applicable surety bonds, to collect the indebted22 ness.

23 ‘‘(b) CONTRACT REQUIREMENTS.—Any contract en24 tered into under subsection (a) shall provide that—
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1 ‘‘(1) the Secretary retains the authority to re2 solve a dispute, compromise a claim, end collection

3 action, and refer a matter to the Attorney General

4 to bring a civil action; and

5 ‘‘(2) the person is subject to—

6 ‘‘(A) section 552a of title 5, United States

7 Code, to the extent provided in subsection (m)

8 of such section; and

9 ‘‘(B) laws and regulations of the United

10 States Government and State governments re11 lated to debt collection practices.’’.

12 TITLE IV—MISCELLANEOUS

13 PROVISIONS AND CON14 SEQUENTIAL AND CONFORM15 ING AMENDMENTS TO OTHER

16 LAWS

17 SEC. 401. AMENDMENTS TO THE HARMONIZED TARIFF

18 SCHEDULE.

19 (a) RETURN SHIPMENTS.—General Note 4 of the

20 Harmonized Tariff Schedule of the United States is

21 amended—

22 (1) by striking out ‘‘and’’ at the end of subdivi23 sion (c);

24 (2) by inserting ‘‘and’’ after ‘‘1930,’’ in subdivi25 sion (d);
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1 (3) by inserting after subdivision (d) the follow2 ing:

3 ‘‘(e) articles exported from the United States

4 which are returned within 45 days after such expor5 tation from the United States as undeliverable and

6 which have not left the custody of the carrier or for7 eign customs service,’’; and

8 (4) by adding at the end the following new sen9 tence: ‘‘No exportation referred to in subdivision (e)

10 may be treated as satisfying any requirement for ex11 portation in order to receive a benefit from, or meet

12 an obligation to, the United States as a result of

13 such exportation.’’.

14 (b) ENTRY NOT REQUIRED FOR LOCOMOTIVES AND

15 RAILWAY FREIGHT CARS.—

16 (1) The Notes to chapter 86 of such Schedule

17 are amended by inserting after note 3 the following

18 new note:

19 ‘‘4. Railway locomotives (provided for in headings 8601

20 and 8602) and railway freight cars (provided for in head21 ing 8606) on which no duty is owed are not subject to

22 the entry or release requirements for imported merchan23 dise set forth in sections 448 and 484 of the Tariff Act

24 of 1930. The Secretary of the Treasury may by regulation

25 establish appropriate reporting requirements, including
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1 the requirement that a bond be posted to ensure compli2 ance.’’.

3 (2) The U.S. Notes to subchapter V of chapter

4 99 of such Schedule are amended by inserting after

5 note 8 the following new note:

6 ‘‘9. Railway freight cars provided for in subheadings

7 9905.86.05 and 9905.86.10 are not subject to the entry

8 or release requirements for imported merchandise set

9 forth in sections 448 and 484 of the Tariff Act of 1930.

10 The Secretary of the Treasury may by regulation establish

11 appropriate reporting requirements, including the require12 ment that a bond be posted to ensure compliance.’’.

13 (c) INSTRUMENTS OF INTERNATIONAL TRAFFIC.—

14 The U.S. Notes to subchapter III of chapter 98 of such

15 Schedule is amended by inserting after note 3 the follow16 ing new note:

17 ‘‘4. Instruments of international traffic, such as contain18 ers, life vans, rail cars and locomotives, truck cabs and

19 trailers, etc. are exempt from formal entry procedures but

20 are required to be accounted for when imported and ex21 ported into and out of the United States, respectively,

22 through the manifesting procedures required for all inter23 national carriers by the United States Customs Service.

24 Fees associated with the importation of such instruments

25 of international traffic shall be reported and paid on a
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1 periodic basis as required by regulations issued by the Sec2 retary of the Treasury and in accordance with 1956 Cus3 toms Convention on Containers (20 UST 30; TIAS

4 6634).’’.

5 SEC. 402. AMENDMENT TO THE INTERNAL REVENUE CODE

6 OF 1986.

7 Section 9505(c) of the Internal Revenue Code of

8 1986 is amended to read as follows:

9 ‘‘(c) EXPENDITURES FROM THE HARBOR MAINTE10 NANCE TRUST FUND.—

11 ‘‘(1) Amounts in the Harbor Maintenance

12 Trust Fund shall be available, as provided by appro13 priations Acts, for making expenditures—

14 ‘‘(A) to carry out section 210(a) of the

15 Water Resources Development Act of 1986 (as

16 amended by the Water Resources Development

17 Act of 1990),

18 ‘‘(B) for payments of rebates of tolls or

19 charges pursuant to section 13(b) of the Act of

20 May 13, 1954 (as in effect on April 1, 1987),

21 and

22 ‘‘(C) for the payments of all administrative

23 expenses incurred by the Department of the

24 Army, the Department of the Treasury and the
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1 Department of Commerce in administering the

2 tax imposed by section 4461.

3 ‘‘(2) There are authorized to be appropriated to

4 the Department of the Army, out of the Harbor

5 Maintenance Trust Fund established by subsection

6 (a), for each fiscal year not to exceed $5,000,000 to

7 be used by the Department of the Army to provide

8 payment of all administrative expenses incurred by

9 the Department of the Army, the Department of the

10 Treasury, and the Department of Commerce in ad11 ministering the tax imposed by section 4461.’’.

12 SEC. 403. AMENDMENTS TO TITLE 28, UNITED STATES

13 CODE.

14 (a) AMENDMENTS RELATING TO ACCREDITATION OF

15 PRIVATE LABORATORIES.—Title 28 of the United States

16 Code is amended as follows:

17 (1) Section 1581(g) is amended by—

18 (A) striking out ‘‘and’’ at the end of para19 graph (1);

20 (B) by striking out the period at the end

21 of paragraph (2) and inserting ‘‘; and’’; and

22 (C) by adding at the end the following:

23 ‘‘(3) any decision or order of the Customs Serv24 ice to deny, suspend, or revoke accreditation of a
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1 private laboratory under section 499(b) of the Tariff

2 Act of 1930.’’.

3 (2) Section 2631(g) is amended by inserting at

4 the end the following new paragraph:

5 ‘‘(3) A civil action to review any decision or order

6 of the Customs Service to deny, suspend, or revoke accred7 itation of a private laboratory under section 499(b) of the

8 Tariff Act of 1930 may be commenced in the Court of

9 International Trade by the person whose accreditation was

10 denied, suspended, or revoked.’’.

11 (3) Section 2636 is amended—

12 (A) by redesignating subsection (h) as sub13 section (i); and

14 (B) by inserting after subsection (g) the

15 following new subsection:

16 ‘‘(h) A civil action contesting the denial, suspension,

17 or revocation by the Customs Service of a private labora18 tory’s accreditation under section 499(b) of the Tariff Act

19 of 1930 is barred unless commenced in accordance with

20 the rules of the Court of International Trade within 60

21 days after the date of the decision or order of the Customs

22 Service.’’.

23 (4) Section 2640 is amended—

24 (A) by redesignating subsection (d) as sub25 section (e); and
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1 (B) by inserting after subsection (c) the

2 following new subsection:

3 ‘‘(d) In any civil action commenced to review any

4 order or decision of the Customs Service under section

5 499(b) of the Tariff Act of 1930, the court shall review

6 the action on the basis of the record before the Customs

7 Service at the time of issuing such decision or order.’’.

8 (5) Section 2642 is amended by inserting before

9 the period the following: ‘‘or laboratories accredited

10 by the Customs Service under section 499(b) of the

11 Tariff Act of 1930’’.

12 (b) APPLICATION OF SUBSECTION (a) AMEND13 MENTS.—For purposes of applying the amendments made

14 by subsection (a), any decision or order of the Customs

15 Service denying, suspending, or revoking the accreditation

16 of a private laboratory on or after the date of the enact17 ment of this Act and before regulations to implement sec18 tion 499(b) of the Tariff Act of 1930 are issued shall be

19 treated as having been denied, suspended, or revoked

20 under such section 499(b).

21 (c) JURISDICTION OF COURT.—Section 1582(1) of

22 title 28, United States Code, is amended by inserting

23 ‘‘593A,’’ after ‘‘592,’’.
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1 (d) FILING OF OFFICIAL DOCUMENTS.—Section

2 2635(a) of title 28, United States Code, is amended to

3 read as follows:

4 ‘‘(a) In any action commenced in the Court of Inter5 national Trade contesting the denial of a protest under

6 section 515 of the Tariff Act of 1930 or the denial of a

7 petition under section 516 of such Act, the Customs Serv8 ice, as prescribed by the rules of the court, shall file with

9 the clerk of the court, as part of the official record, any

10 document, paper, information or data relating to the entry

11 of merchandise and the administrative determination that

12 is the subject of the protest or petition.’’.

13 SEC. 404. AMENDMENTS TO THE REVISED STATUTES OF

14 THE UNITED STATES.

15 (a) ENROLLED OR LICENSED VESSELS.—Section

16 2793 of the Revised Statutes of the United States (19

17 U.S.C. 288; 46 U.S.C. App. 111, 123) is amended by

18 striking out the first semicolon and all the text that follows

19 thereafter and inserting a period.

20 (b) REGISTERED VESSELS AT FOREIGN PORTS.—

21 Section 3126 of such Revised Statutes (19 U.S.C. 293)

22 is amended—

23 (1) by striking out ‘‘Any vessel, on being duly

24 registered in pursuance of the laws of the United

25 States,’’ and inserting ‘‘Any United States docu-
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1 mented vessel with a registry and coastwise endorse2 ments’’; and

3 (2) by striking out all the text occurring after

4 the first sentence.

5 (c) CLEARANCE REQUIREMENTS.—Section 4197 of

6 such Revised Statutes (46 U.S.C. App. 91) is amended

7 to read as follows:

8 ‘‘SEC. 4197. CLEARANCE; VESSELS.

9 ‘‘(a) WHEN REQUIRED; VESSELS OF THE UNITED

10 STATES.—Except as otherwise provided by law, any vessel

11 of the United States shall obtain clearance from the Cus12 toms Service before proceeding from a port or place in

13 the United States—

14 ‘‘(1) for a foreign port or place;

15 ‘‘(2) for another port or place in the United

16 States if the vessel has on board bonded merchan17 dise or foreign merchandise for which entry has not

18 been made; or

19 ‘‘(3) outside the territorial sea to visit a hover20 ing vessel or to receive merchandise while outside

21 the territorial sea.

22 ‘‘(b) WHEN REQUIRED; OTHER VESSELS.—Except

23 as otherwise provided by law, any vessel that is not a ves24 sel of the United States shall obtain clearance from the
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1 Customs Service before proceeding from a port or place

2 in the United States—

3 ‘‘(1) for a foreign port or place;

4 ‘‘(2) for another port or place in the United

5 States; or

6 ‘‘(3) outside the territorial sea to visit a hover7 ing vessel or to receive or deliver merchandise while

8 outside the territorial sea.

9 ‘‘(c) REGULATIONS.—The Secretary of the Treasury

10 may by regulation—

11 ‘‘(1) prescribe the manner in which clearance

12 under this section is to be obtained, including the

13 documents, data or information which shall be sub14 mitted or transmitted, pursuant to an authorized

15 data interchange system, to obtain the clearance;

16 ‘‘(2) permit the Customs Service to grant clear17 ance for a vessel under this section before all re18 quirements for clearance are complied with, but only

19 if the owner or operator of the vessel files a bond

20 in an amount set by the Secretary of the Treasury

21 conditioned upon the compliance by the owner or op22 erator with all specified requirements for clearance

23 within a time period (not exceeding 4 business days)

24 established by the Secretary of the Treasury; and
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1 ‘‘(3) authorize the Customs Service to permit

2 clearance of any vessel to be obtained at a place

3 other than a designated port of entry, under such

4 conditions as he may prescribe.’’.

5 SEC. 405. AMENDMENTS TO TITLE 18, UNITED STATES

6 CODE.

7 Section 965(a) of title 18, United States Code, is

8 amended—

9 (1) by striking out ‘‘sections 91, 92, and 94 of

10 Title 46’’ and inserting ‘‘section 431 of the Tariff

11 Act of 1930 (19 U.S.C. 1431) and section 4197 of

12 the Revised Statutes of the United States (46

13 U.S.C. App. 91),’’;

14 (2) by striking out ‘‘the collector of customs for

15 the district wherein such vessel is then located’’ and

16 inserting ‘‘the Customs Service’’; and

17 (3) by striking out ‘‘the collector like’’ and in18 serting in lieu thereof ‘‘the Customs Service like’’.

19 SEC. 406. AMENDMENT TO THE ACT TO PREVENT POLLU20 TION FROM SHIPS.

21 Section 9(e) of the Act to Prevent Pollution from

22 Ships (94 Stat. 2301, 33 U.S.C. 1908(e)) is amended by

23 striking out ‘‘shall refuse or revoke’’ and all of the text

24 following thereafter and inserting ‘‘shall refuse or revoke

25 the clearance required by section 4197 of the Revised
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1 Statutes of the United States (46 U.S.C. App. 91). Clear2 ance may be granted upon the filing of a bond or other

3 surety satisfactory to the Secretary.’’.

4 SEC. 407. AMENDMENTS TO THE ACT OF NOVEMBER 6, 1966.

5 Sections 2(e) and 3(e) of the Act of November 6,

6 1966 (46 U.S.C. App. 817d(e) and 817e(e)) are each

7 amended—

8 (1) by striking out ‘‘The collector of customs

9 at’’ and inserting ‘‘At’’; and

10 (2) by inserting ‘‘, the Customs Service’’ after

11 ‘‘subsection (a) of this section’’.

12 SEC. 408. REPEAL OF OBSOLETE PROVISIONS OF LAW.

13 (a) REVISED STATUTES.—The following provisions of

14 the Revised Statutes of the United States are repealed:

15 (1) So much of section 2792 as is codified at

16 19 U.S.C. 289 and 46 U.S.C. App. 110 and 112 (as

17 in effect on the date of the enactment of this Act).

18 (2) Section 3111 (19 U.S.C. 282).

19 (3) Section 3118 (19 U.S.C. 286).

20 (4) Section 3119 (19 U.S.C. 287).

21 (5) Section 3122 (19 U.S.C. 290).

22 (6) Section 3124 (19 U.S.C. 291).

23 (7) Section 3125 (19 U.S.C. 292).

24 (8) Section 4198 (46 U.S.C. App. 94).

25 (9) Section 4199 (46 U.S.C. App. 93).
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1 (10) Section 4201 (46 U.S.C. App. 96).

2 (11) Section 4207.

3 (12) Section 4208 (46 U.S.C. App. 102).

4 (13) Section 4213 (46 U.S.C. App. 101).

5 (14) So much of section 4221 as is codified at

6 46 U.S.C. App. 113 (as in effect on the date of the

7 enactment of this Act).

8 (15) Section 4222 (46 U.S.C. App. 126).

9 (16) Section 4332 (46 U.S.C. App. 274).

10 (17) Section 4348 (46 U.S.C. App. 293).

11 (18) Section 4358 (46 U.S.C. App. 306).

12 (19) Section 4361 (46 U.S.C. App. 307).

13 (20) Sections 4362 through 4369 (46 U.S.C.

14 App. 308 through 315).

15 (21) Sections 4573 through 4576 (46 U.S.C.

16 App. 674 through 677).

17 (b) TARIFF ACT OF 1930.—The following sections of

18 the Tariff Act of 1930 are repealed:

19 (1) Section 432 (19 U.S.C. 1432).

20 (2) Section 435 (19 U.S.C. 1435).

21 (3) Section 437 (19 U.S.C. 1437).

22 (4) Section 439 (19 U.S.C. 1439).

23 (5) Section 440 (19 U.S.C. 1440).

24 (6) Sections 443, 444, and 445 (19 U.S.C.

25 1443, 1444, and 1445).
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1 (7) Section 465 (19 U.S.C. 1465).

2 (8) Section 482 (19 U.S.C. 1482).

3 (9) Section 583 (19 U.S.C. 1583).

4 (10) Section 585 (19 U.S.C. 1585).

5 (c) MISCELLANEOUS PROVISIONS.—The following

6 provisions are repealed:

7 (1) The last undesignated paragraph of section

8 201 of the Act of August 5, 1935 (19 U.S.C.

9 1432a), is repealed.

10 (2) The Act of June 16, 1937 (19 U.S.C.

11 1435b).

12 (3) Section 1 of the Act of July 3, 1926 (46

13 U.S.C. App. 293a).

14 (4) The Act of May 4, 1934 (46 U.S.C. App.

15 91a).

16 (5) Section 1403(b) of the Water Resources De17 velopment Act of 1986 (Public Law 99–662; 26

18 U.S.C. 4461 note).

19 SEC. 409. REPORTS TO CONGRESS.

20 (a) ANTIDUMPING AND COUNTERVAILING DUTY

21 COLLECTIONS.—The Commissioner of Customs shall be22 fore the 60th day of each fiscal year after fiscal year 1992

23 submit to Congress a report regarding the collection dur24 ing the preceding fiscal year of duties imposed under the

25 antidumping and countervailing duty laws.
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1 (b) CES FEE REPORT.—

2 (1) AMENDMENT.—Section 9501(c) of the Om3 nibus Budget Reconciliation Act of 1987 (19 U.S.C.

4 3 note) is amended by adding at the end the follow5 ing new paragraph:

6 ‘‘(3) The Commissioner of Customs is author7 ized to obtain from the operators of centralized

8 cargo examination stations information regarding

9 the fees paid to them for the provision of services at

10 these stations.’’.

11 (2) REPORT.—Within 9 months after the date

12 of the enactment of this subsection, the Commis13 sioner of Customs shall submit to the Committees

14 referred to in section 9501(c) of the Omnibus Budg15 et Reconciliation Act of 1987, a report setting

16 forth—

17 (A) an estimate of the aggregate amount

18 of fees paid to operators of centralized cargo

19 examination stations during fiscal year 1992;

20 and

21 (B) the variations, if any, among customs

22 districts with respect to the amounts of the fees

23 charged for centralized cargo examination sta24 tion services.
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1 (c) COMPLIANCE WITH CUSTOMS LAWS.—Section

2 123 of the Customs and Trade Act of 1990 (19 U.S.C.

3 2083) is amended—

4 (1) by redesignating subsection (d) as sub5 section (e), and

6 (2) by inserting after subsection (c) the follow7 ing:

8 ‘‘(d) COMPLIANCE PROGRAM.—The Commissioner of

9 Customs shall—

10 ‘‘(1) devise and implement a methodology for

11 estimating the level of compliance with the laws ad12 ministered by the Customs Service; and

13 ‘‘(2) include as an additional part of the report

14 required to be submitted under subsection (a) for

15 each of fiscal years 1993, 1994, and 1995, an eval16 uation of the extent to which such compliance was

17 obtained during the 12-month period preceding the

18 60th day before each such fiscal year.’’.

19 (d) COURIER SERVICES COMPLIANCE REPORT.—The

20 Commissioner of Customs shall initiate a compliance re21 view of certain courier services which may not be eligible

22 for benefits under the regulations of the Customs Service

23 prescribed in part 128 of title 19 of the Code of Federal

24 Regulations and shall submit a report to Congress on the
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1 results of such review within 1 year after the date of the

2 enactment of this Act.

3 SEC. 410. APPLICABILITY OF AMENDMENTS TO ENTRY OR

4 WITHDRAWAL OF GOODS.

5 Any amendment made by this subtitle that is applica6 ble to the entry, or withdrawal from warehouse for con7 sumption, of goods applies to any such entry or with8 drawal that is made on or after the 15th day after the

9 date of the enactment of this Act.

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