II 

113TH CONGRESS 

1ST SESSION S. 662 

To reauthorize trade facilitation and trade enforcement functions and 

activities, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 22, 2013 

Mr. BAUCUS (for himself and Mr. HATCH) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To reauthorize trade facilitation and trade enforcement 

functions and activities, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Trade Facilitation and Trade Enforcement Reauthoriza6 tion Act of 2013’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—CUSTOMS ORGANIZATION 


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Subtitle A—Functions Other Than Investigative Functions 

Sec. 101. Establishment of U.S. Customs and Border Protection Agency; Commissioner. 

Sec. 102. Officers and employees. 

Sec. 103. Separate budget requests for U.S. Customs and Border Protection 

Agency. 

Sec. 104. Revolving fund. 

Sec. 105. Advances in foreign countries. 

Sec. 106. Advances for enforcement of customs provisions. 

Sec. 107. Certification of reason for advance. 

Sec. 108. Payments in foreign countries; claims for reimbursement. 

Sec. 109. Customs administration. 

Sec. 110. Personnel. 

Sec. 111. Authorization of appropriations. 

Subtitle B—Investigative Functions 

Sec. 121. Establishment of U.S. Immigration and Customs Enforcement Agency. 

Sec. 122. Separate budget requests for U.S. Immigration and Customs Enforcement Agency. 

Sec. 123. Undercover investigative operations. 

Sec. 124. Authorization of appropriations. 

Subtitle C—Joint Strategic Plan on Trade Facilitation and Trade 

Enforcement 

Sec. 131. Joint strategic plan on trade facilitation and trade enforcement. 

TITLE II—TRADE FACILITATION, TRADE ENFORCEMENT, AND 

TRANSPARENCY 

Subtitle A—Trade Facilitation and Transparency 

Sec. 201. Improving partnership programs. 

Sec. 202. Trade facilitation partnership program. 

Sec. 203. Centers of Excellence and Expertise. 

Sec. 204. Mutual recognition agreements. 

Sec. 205. Customs Operations Advisory Committee. 

Sec. 206. Automated Commercial Environment computer system. 

Sec. 207. International Trade Data System. 

Sec. 208. Electronic submission of public comments. 

Subtitle B—Trade Enforcement 

CHAPTER 1—COMMERCIAL TARGETING

Sec. 211. Commercial Targeting Division and National Targeting and Analysis 

Groups. 

Sec. 212. Annual illegal drug control law enforcement strategy. 

Sec. 213. Report on oversight of revenue protection and enforcement measures 

by the inspector general. 

Sec. 214. Report on security and revenue measures with respect to merchandise 

transported in bond. 

Sec. 215. Importer of record program. 

CHAPTER 2—IMPORT HEALTH AND SAFETY


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Sec. 221. Interagency Import Safety Working Group. 

Sec. 222. Joint import safety rapid response plan. 

Sec. 223. Training. 

CHAPTER 3—IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY

RIGHTS

SUBCHAPTER A—NATIONAL INTELLECTUAL PROPERTY RIGHTS COORDINATION

CENTER

Sec. 231. National Intellectual Property Rights Coordination Center. 

SUBCHAPTER B—AMENDMENTS TO THE TARIFF ACT OF 1930

Sec. 241. Provision to rights owners of information about and samples of merchandise suspected of infringing trademarks or copyrights. 

Sec. 242. Enforcement by the U.S. Customs and Border Protection Agency of 

works for which a copyright registration is pending. 

Sec. 243. Seizure of circumvention devices. 

SUBCHAPTER C—OTHER MATTERS

Sec. 251. Definition of intellectual property rights. 

Sec. 252. Joint strategic plan for the enforcement of intellectual property 

rights. 

Sec. 253. Personnel dedicated to the enforcement of intellectual property rights. 

Sec. 254. Training with respect to the enforcement of intellectual property 

rights. 

Sec. 255. Information for travelers regarding violations of intellectual property 

rights. 

Sec. 256. International cooperation and information sharing. 

Sec. 257. Sense of Congress regarding recordation process. 

Sec. 258. Report on intellectual property rights enforcement. 

CHAPTER 4—COORDINATION OF TRADE ENFORCEMENT PRIORITIES

Sec. 261. Establishment of priority trade enforcement coordination centers. 

TITLE III—EVASION OF ANTIDUMPING AND COUNTERVAILING 

DUTY ORDERS 

Sec. 301. Short title. 

Sec. 302. Procedures for investigating claims of evasion of antidumping and 

countervailing duty orders. 

Sec. 303. Annual report on prevention and investigation of evasion of antidumping and countervailing duty orders. 

TITLE IV—MISCELLANEOUS PROVISIONS 

Sec. 401. Consultation on trade and customs revenue functions. 

Sec. 402. Drawback simplification. 

Sec. 403. Penalties for customs brokers. 

Sec. 404. Amendments to chapter 98 of the Harmonized Tariff Schedule of the 

United States. 

Sec. 405. Charter flights. 

Sec. 406. Pilot program to designate additional 24-hour commercial ports of 

entry. 


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Sec. 407. Elimination of consumptive demand exception to prohibition on importation of goods made with convict labor, forced labor, or indentured labor; report. 

Sec. 408. Honey transshipment. 

Sec. 409. Contraband archaeological or ethnological materials. 

Sec. 410. De minimis value and entry under regulations. 

Sec. 411. Repeal of authority of U.S. Customs and Border Protection Agency 

to enter into certain reimbursable fee agreements. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) COMMERCIAL OPERATIONS.—The term 

4 ‘‘commercial operations’’, with respect to the U.S. 

5 Customs and Border Protection Agency, means the 

6 operations described in section 1(c)(2) of the Act of 

7 March 3, 1927 (44 Stat. 1381, chapter 348; 19 

8 U.S.C. 2071), as amended by section 101 of this 

9 Act. 

10 (2) COMMISSIONER.—The term ‘‘Commis11 sioner’’ means the Commissioner of U.S. Customs 

12 and Border Protection (as established under section 

13 1 of the Act of March 3, 1927 (44 Stat. 1381, chap14 ter 348; 19 U.S.C. 2071), as amended by section 

15 101 of this Act). 

16 (3) CUSTOMS OPERATIONS ADVISORY COM17 MITTEE.—The term ‘‘Customs Operations Advisory 

18 Committee’’ means the Advisory Committee estab19 lished under section 205 of this Act or any successor 

20 committee. 


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1 (4) CUSTOMS AND TRADE LAWS OF THE

2 UNITED STATES.—The term ‘‘customs and trade 

3 laws of the United States’’ includes the following: 

4 (A) The Tariff Act of 1930 (19 U.S.C. 

5 1202 et seq.). 

6 (B) Section 249 of the Revised Statutes 

7 (19 U.S.C. 3). 

8 (C) Section 2 of the Act of March 4, 1923 

9 (42 Stat. 1453, chapter 251; 19 U.S.C. 6). 

10 (D) The Act of March 3, 1927 (44 Stat. 

11 1381, chapter 348; 19 U.S.C. 2071 et seq.). 

12 (E) Section 13031 of the Consolidated 

13 Omnibus Budget Reconciliation Act of 1985 

14 (19 U.S.C. 58c). 

15 (F) Section 251 of the Revised Statutes 

16 (19 U.S.C. 66). 

17 (G) Section 1 of the Act of June 26, 1930 

18 (46 Stat. 817, chapter 617; 19 U.S.C. 68). 

19 (H) The Foreign Trade Zones Act (19 

20 U.S.C. 81a et seq.). 

21 (I) Section 1 of the Act of March 2, 1911 

22 (36 Stat. 965, chapter 191; 19 U.S.C. 198). 

23 (J) The Trade Act of 1974 (19 U.S.C. 

24 2102 et seq.). 


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1 (K) The Trade Agreements Act of 1979 

2 (19 U.S.C. 2501 et seq.). 

3 (L) The North American Free Trade 

4 Agreement Implementation Act (19 U.S.C. 

5 3301 et seq.). 

6 (M) The Uruguay Round Agreements Act 

7 (19 U.S.C. 3501 et seq.). 

8 (N) The Caribbean Basin Economic Recov9 ery Act (19 U.S.C. 2701 et seq.). 

10 (O) The Andean Trade Preference Act (19 

11 U.S.C. 3201 et seq.). 

12 (P) The African Growth and Opportunity 

13 Act (19 U.S.C. 3701 et seq.). 

14 (Q) The Customs Enforcement Act of 

15 1986 (Public Law 99–570; 100 Stat. 3207–79). 

16 (R) The Customs and Trade Act of 1990 

17 (Public Law 101–382; 104 Stat. 629). 

18 (S) The Customs Procedural Reform and 

19 Simplification Act of 1978 (Public Law 95– 

20 410; 92 Stat. 888). 

21 (T) The Trade Act of 2002 (Public Law 

22 107–210; 116 Stat. 933). 

23 (U) The Convention on Cultural Property 

24 Implementation Act (19 U.S.C. 2601 et seq.). 


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1 (V) The Act of March 28, 1928 (45 Stat. 

2 374, chapter 266; 19 U.S.C. 2077 et seq.) 

3 (W) The Act of August 7, 1939 (53 Stat. 

4 1263, chapter 566). 

5 (X) Any other provision of law imple6 menting a trade agreement. 

7 (Y) Any other provision of law vesting cus8 toms revenue functions in the Secretary of the 

9 Treasury. 

10 (Z) Any other provision of law relating to 

11 trade facilitation or trade enforcement that is 

12 administered by the U.S. Customs and Border 

13 Protection Agency on behalf of any Federal 

14 agency that is required to participate in the 

15 International Trade Data System. 

16 (AA) Any other provision of customs or 

17 trade law administered by the U.S. Customs 

18 and Border Protection Agency or the U.S. Im19 migration and Customs Enforcement Agency. 

20 (5) CUSTOMS REVENUE FUNCTION.—The term 

21 ‘‘customs revenue function’’ has the meaning given 

22 that term in section 415 of the Homeland Security 

23 Act of 2002 (6 U.S.C. 215). 

24 (6) PRIVATE SECTOR ENTITY.—The term ‘‘pri25 vate sector entity’’ means— 


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1 (A) an importer; 

2 (B) an exporter; 

3 (C) a forwarder; 

4 (D) an air, sea, or land carrier or shipper; 

5 (E) a contract logistics provider; 

6 (F) a customs broker; or 

7 (G) any other person (other than an em8 ployee of a government) involved in the impor9 tation or exportation of merchandise into or out 

10 of the United States. 

11 (7) TRADE ENFORCEMENT.—The term ‘‘trade 

12 enforcement’’ means the enforcement of the customs 

13 and trade laws of the United States. 

14 (8) TRADE FACILITATION.—The term ‘‘trade 

15 facilitation’’ refers to policies and activities of the 

16 U.S. Customs and Border Protection Agency with 

17 respect to facilitating the movement of merchandise 

18 into and out of the United States in a manner that 

19 complies with the customs and trade laws of the 

20 United States. 

21 (9) TRADE SUPPORT NETWORK.—The term 

22 ‘‘Trade Support Network’’ means the network of 

23 private sector entities that provide input on the de24 velopment of modernization projects of the U.S. 

25 Customs and Border Protection Agency. 


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1 TITLE I—CUSTOMS 

2 ORGANIZATION 

3 Subtitle A—Functions Other Than 

4 Investigative Functions 

5 SEC. 101. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER 

6 PROTECTION AGENCY; COMMISSIONER. 

7 (a) IN GENERAL.—The first section of the Act of 

8 March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 

9 2071), is amended to read as follows: 

10 ‘‘SECTION 1. ESTABLISHMENT OF U.S. CUSTOMS AND BOR11 DER PROTECTION AGENCY; COMMISSIONER. 

12 ‘‘(a) ESTABLISHMENT OF U.S. CUSTOMS AND BOR13 DER PROTECTION AGENCY.—There is established in the 

14 Department of Homeland Security the U.S. Customs and 

15 Border Protection Agency. 

16 ‘‘(b) ESTABLISHMENT OF COMMISSIONER OF U.S. 

17 CUSTOMS AND BORDER PROTECTION.—The head of the 

18 U.S. Customs and Border Protection Agency shall be a 

19 Commissioner of U.S. Customs and Border Protection (in 

20 this Act referred to as the ‘Commissioner’), who shall— 

21 ‘‘(1) be appointed by the President, by and with 

22 the advice and consent of the Senate; 

23 ‘‘(2) carry out the duties described in sub24 section (c); and 


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1 ‘‘(3) report directly to the Secretary of Home2 land Security. 

3 ‘‘(c) DUTIES.— 

4 ‘‘(1) IN GENERAL.—The duties of the Commis5 sioner shall include— 

6 ‘‘(A) coordinating and integrating the se7 curity, trade facilitation, and trade enforcement 

8 functions of the U.S. Customs and Border Pro9 tection Agency; 

10 ‘‘(B) directing the administration of the 

11 commercial operations as described in para12 graph (2) and the noncommercial operations of 

13 the Agency; 

14 ‘‘(C) otherwise safeguarding the homeland 

15 security interests of the United States; 

16 ‘‘(D) ensuring that the overall economic se17 curity of the United States is not diminished by 

18 efforts, activities, and programs aimed at secur19 ing the homeland (as defined in section 2 of the 

20 Homeland Security Act of 2002 (6 U.S.C. 

21 101)); and 

22 ‘‘(E) carrying out the duties and powers 

23 prescribed by law and such other duties as the 

24 Secretary of Homeland Security or the SecVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 retary of the Treasury, as appropriate, may as2 sign. 

3 ‘‘(2) COMMERCIAL OPERATIONS.—The commer4 cial operations of the U.S. Customs and Border Pro5 tection Agency shall include— 

6 ‘‘(A) administering any customs revenue 

7 function (as defined in section 415 of the 

8 Homeland Security Act of 2002 (6 U.S.C. 

9 215)); 

10 ‘‘(B) coordinating efforts of the Depart11 ment of Homeland Security with respect to 

12 trade facilitation and, as appropriate, trade en13 forcement; 

14 ‘‘(C) coordinating with the Director of 

15 U.S. Immigration and Customs Enforcement 

16 with respect to— 

17 ‘‘(i) investigations relating to trade 

18 enforcement; and 

19 ‘‘(ii) the development and implementa20 tion of the joint strategic plan on trade fa21 cilitation and trade enforcement required 

22 under section 123A of the Customs and 

23 Trade Act of 1990; 

24 ‘‘(D) coordinating, on behalf of the De25 partment of Homeland Security, efforts among 


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1 Federal agencies with respect to trade facilita2 tion and, as appropriate, trade enforcement, in3 cluding representing the Department of Home4 land Security in interagency fora addressing 

5 such efforts; 

6 ‘‘(E) coordinating the efforts of the U.S. 

7 Customs and Border Protection Agency with 

8 the efforts of customs authorities of foreign 

9 countries to facilitate international trade and 

10 enforce customs and trade laws; 

11 ‘‘(F) collecting, assessing, and dissemi12 nating information as appropriate and in ac13 cordance with law, regarding cargo destined for 

14 the United States, to enhance trade facilitation 

15 and, as appropriate, trade enforcement; and 

16 ‘‘(G) otherwise advising the Secretary of 

17 Homeland Security with respect to the develop18 ment of policies associated with trade facilita19 tion and, as appropriate, trade enforcement. 

20 ‘‘(d) CONSULTATIONS.— 

21 ‘‘(1) RESOURCE NEEDS.—In carrying out the 

22 duties described in subsection (c), the Commissioner 

23 shall consult with the Committee on Finance and 

24 Committee on Appropriations of the Senate and the 

25 Committee on Ways and Means and the Committee 


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1 on Appropriations of the House of Representatives 

2 on a regular and timely basis regarding the resource 

3 needs of the U.S. Customs and Border Protection 

4 Agency to safeguard the economic security interests 

5 of the United States at land borders and ports of 

6 entry. 

7 ‘‘(2) INTERNATIONAL NEGOTIATIONS.—The 

8 Commissioner shall consult with the Committee on 

9 Finance of the Senate and the Committee on Ways 

10 and Means of the House of Representatives on a 

11 regular and timely basis regarding the status and 

12 substance of international negotiations relating to 

13 the customs and trade laws of the United States, or 

14 of foreign countries, in which personnel of the U.S. 

15 Customs and Border Protection Agency are partici16 pating. 

17 ‘‘(3) PRIVATE SECTOR INPUT.—In carrying out 

18 the duties described in subsection (c), the Commis19 sioner shall solicit and consider on a regular basis 

20 input from private sector entities, including the Cus21 toms Operations Advisory Committee, the Trade 

22 Support Network, and other entities affected by the 

23 efforts of the Federal Government relating to trade 

24 facilitation and trade enforcement, with respect to— 


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1 ‘‘(A) the implementation of new or amend2 ed customs and trade laws; and 

3 ‘‘(B) the development, implementation, or 

4 revision of policies or regulations administered 

5 by the U.S. Customs and Border Protection 

6 Agency. 

7 ‘‘(e) COMPENSATION.—The Commissioner shall be 

8 compensated at the rate of pay for level III of the Execu9 tive Schedule as provided in section 5314 of title 5, United 

10 States Code. 

11 ‘‘(f) ABSENCE OR DISABILITY OF COMMISSIONER.— 

12 The Deputy Commissioner for Trade, appointed pursuant 

13 to section 2, shall act as Commissioner during the absence 

14 or disability of the Commissioner or in the event that the 

15 position of Commissioner is vacant. 

16 ‘‘(g) DEFINITIONS.—In this Act, the terms ‘Customs 

17 Operations Advisory Committee’, ‘customs and trade laws 

18 of the United States’, ‘private sector entity’, ‘trade en19 forcement’, ‘trade facilitation’, and ‘Trade Support Net20 work’ have the meanings given those terms in section 2 

21 of the Trade Facilitation and Trade Enforcement Reau22 thorization Act of 2013.’’. 

23 (b) ADMINISTRATIVE CONTINUITY.—The Act of 

24 March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 


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1 2071 et seq.), is amended by striking section 3 (19 U.S.C. 

2 2073) and all that follows and inserting the following: 

3 ‘‘SEC. 3. TRANSFER OF FUNCTIONS, ASSETS, LIABILITIES, 

4 AND DUTIES. 

5 ‘‘(a) IN GENERAL.—Section 411 of the Homeland 

6 Security Act of 2002 (6 U.S.C. 211) is repealed, and the 

7 functions and associated personnel, assets, and liabilities, 

8 identified under such section 411 on the day before the 

9 date of the enactment of the Trade Facilitation and Trade 

10 Enforcement Reauthorization Act of 2013 are transferred 

11 to the U.S. Customs and Border Protection Agency. 

12 ‘‘(b) CONTINUATION IN OFFICE.—The individual 

13 serving as Commissioner of Customs in the Department 

14 of Homeland Security on the day before the date of the 

15 enactment of the Trade Facilitation and Trade Enforce16 ment Reauthorization Act of 2013 may serve as the Com17 missioner of the U.S. Customs and Border Protection 

18 Agency established under section 1 until the earlier of— 

19 ‘‘(1) the date on which that individual is no 

20 longer eligible to serve as Commissioner of Customs; 

21 or 

22 ‘‘(2) the date on which an individual nominated 

23 by the President to be the Commissioner of U.S. 

24 Customs and Border Protection is confirmed by the 

25 Senate.’’. 


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1 (c) CONFORMING AMENDMENTS.— 

2 (1) TITLE 5.—Section 5314 of title 5, United 

3 States Code, is amended by striking ‘‘Commissioner 

4 of Customs, Department of Homeland Security.’’ 

5 and inserting ‘‘Commissioner of U.S. Customs and 

6 Border Protection, Department of Homeland Secu7 rity.’’. 

8 (2) TABLE OF CONTENTS.—The table of con9 tents for the Homeland Security Act of 2002 is 

10 amended by striking the item relating to section 411 

11 and inserting the following: 

‘‘Sec. 411. [Reserved].’’. 

12 SEC. 102. OFFICERS AND EMPLOYEES. 

13 (a) IN GENERAL.—Section 2 of the Act of March 3, 

14 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072), is 

15 amended to read as follows: 

16 ‘‘SEC. 2. DEPUTY COMMISSIONERS; TRADE ADVOCATE; 

17 OTHER OFFICERS. 

18 ‘‘(a) ESTABLISHMENT OF DEPUTY COMMIS19 SIONERS.— 

20 ‘‘(1) IN GENERAL.—There shall be in the U.S. 

21 Customs and Border Protection Agency established 

22 under section 1 not more than 3 and not fewer than 

23 2 deputy commissioners, each of whom shall report 

24 directly to the Commissioner. 


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1 ‘‘(2) SENIOR EXECUTIVE SERVICE POSITION.— 

2 The position of a deputy commissioner established 

3 under paragraph (1) shall be a Senior Executive 

4 Service position (as defined in section 3132(a) of 

5 title 5, United States Code). 

6 ‘‘(b) DEPUTY COMMISSIONER FOR TRADE.— 

7 ‘‘(1) IN GENERAL.—One of the deputy commis8 sioners established under subsection (a)(1) shall be 

9 the Deputy Commissioner for Trade. 

10 ‘‘(2) DUTIES.—The duties of the Deputy Com11 missioner for Trade shall include— 

12 ‘‘(A) overseeing the commercial operations 

13 of the U.S. Customs and Border Protection 

14 Agency (as described in section 1(c)(2)); 

15 ‘‘(B) overseeing the Office of Trade estab16 lished under section 4 and the Office of Inter17 national Affairs established under section 5; 

18 ‘‘(C) overseeing the development and im19 plementation of all policies and regulations ad20 ministered by the Agency pursuant to the cus21 toms and trade laws of the United States; 

22 ‘‘(D) coordinating the establishment of 

23 standards and policies for developing, deliv24 ering, and evaluating training programs for 


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1 personnel of the Agency with responsibility for 

2 trade facilitation and trade enforcement; 

3 ‘‘(E) overseeing the development and im4 plementation of information technology, re5 search, and communication functions, including 

6 automation and modernization strategies, that 

7 support the commercial operations of the Agen8 cy, including the implementation of the Auto9 mated Commercial Environment computer sys10 tem authorized under section 13031(f)(5) of the 

11 Consolidated Omnibus Budget and Reconcili12 ation Act of 1985 (19 U.S.C. 58c(f)(5)); and 

13 ‘‘(F) overseeing the administration of the 

14 financial management activities of the Agency, 

15 including accounting, budgeting, procurement, 

16 logistics, financial systems, policy, planning, 

17 and audit oversight. 

18 ‘‘(3) QUALIFICATIONS.—An individual ap19 pointed to be the Deputy Commissioner for Trade 

20 shall have a minimum of 10 years of professional ex21 perience in the operation of the customs and trade 

22 laws of the United States, not less than 3 of which 

23 shall involve either working with or for the private 

24 sector on matters relating to trade facilitation or 

25 trade enforcement. 


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1 ‘‘(4) ABSENCE OR DISABILITY OF DEPUTY COM2 MISSIONER FOR TRADE.—The Assistant Commis3 sioner of the Office of Trade, established under sec4 tion 4, shall act as the Deputy Commissioner for 

5 Trade during the absence or disability of the Deputy 

6 Commissioner for Trade or in the event that the po7 sition of Deputy Commissioner for Trade is vacant. 

8 ‘‘(c) TRADE ADVOCATE.— 

9 ‘‘(1) ESTABLISHMENT.— 

10 ‘‘(A) IN GENERAL.—There shall be in the 

11 office of the Commissioner a Trade Advocate, 

12 who shall be appointed by and report directly to 

13 the Commissioner. 

14 ‘‘(B) SENIOR EXECUTIVE SERVICE POSI15 TION.—The position of Trade Advocate shall be 

16 a Senior Executive Service position (as defined 

17 in section 3132(a) of title 5, United States 

18 Code). 

19 ‘‘(2) DUTIES.—The duties of the Trade Advo20 cate shall include— 

21 ‘‘(A) developing and maintaining strategic 

22 communications with private sector entities and 

23 the public to enhance trade facilitation and 

24 trade enforcement; 


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1 ‘‘(B) serving as the primary liaison be2 tween the U.S. Customs and Border Protection 

3 Agency and private sector entities and the pub4 lic with respect to the Agency’s trade facilita5 tion and trade enforcement functions; 

6 ‘‘(C) consulting with private sector entities, 

7 including the Customs Operations Advisory 

8 Committee and the Trade Support Network, for 

9 their input with respect to— 

10 ‘‘(i) the development, implementation, 

11 and impact of policies and regulations ad12 ministered by the Agency; 

13 ‘‘(ii) the development of the joint stra14 tegic plan on trade facilitation and trade 

15 enforcement required under section 123A 

16 of the Customs and Trade Act of 1990; 

17 ‘‘(iii) the assessment of the effective18 ness of the trade facilitation and trade en19 forcement activities of the Agency; 

20 ‘‘(iv) trade modernization activities, 

21 including the development and implementa22 tion of the Automated Commercial Envi23 ronment computer system authorized 

24 under section 13031(f)(5) of the Consoli25 dated Omnibus Budget and Reconciliation 


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1 Act of 1985 (19 U.S.C. 58c(f)(5)) and 

2 support for the establishment of the Inter3 national Trade Data System under the 

4 oversight of the Department of the Treas5 ury pursuant to section 411(d) of the Tar6 iff Act of 1930 (19 U.S.C. 1411(d)); 

7 ‘‘(v) the identification of private sec8 tor resources and capabilities that will sup9 plement the trade facilitation and trade en10 forcement activities of the Agency; 

11 ‘‘(D) advising the Commissioner with re12 spect to the consultations described in subpara13 graph (C); 

14 ‘‘(E) promoting existing public-private 

15 partnerships and developing new public-private 

16 partnerships to enhance the trade facilitation 

17 and trade enforcement activities of the Agency; 

18 and 

19 ‘‘(F) otherwise consulting with private sec20 tor entities and the public as directed by the 

21 Commissioner or by law. 

22 ‘‘(3) QUALIFICATIONS.—An individual ap23 pointed to be the Trade Advocate shall have a min24 imum of 10 years of professional experience working 

25 with the customs and trade laws of the United 


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1 States, not less than 3 of which shall have been 

2 spent working in the private sector. 

3 ‘‘(4) ELIMINATION OF OFFICE OF TRADE RELA4 TIONS.— 

5 ‘‘(A) TRANSFER.—Not later than 30 days 

6 after the date of the enactment of the Trade 

7 Facilitation and Trade Enforcement Reauthor8 ization Act of 2013, the Secretary of Homeland 

9 Security shall transfer the assets, functions, 

10 personnel, and liabilities of the Office of Trade 

11 Relations of the U.S. Customs and Border Pro12 tection Agency to the Trade Advocate estab13 lished under paragraph (1). 

14 ‘‘(B) ELIMINATION.—Not later than 30 

15 days after the date of the enactment of the 

16 Trade Facilitation and Trade Enforcement Re17 authorization Act of 2013, the Office of Trade 

18 Relations shall be abolished. 

19 ‘‘(C) LIMITATION ON FUNDS.—No funds 

20 appropriated to the Agency or the Department 

21 of Homeland Security may be used to transfer 

22 the assets, functions, personnel, and liabilities 

23 of the Office of Trade Relations to an office or 

24 official other than the Trade Advocate estab25 lished under paragraph (1). 


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1 ‘‘(d) OTHER OFFICERS.—The Commissioner may ap2 point such other officers as are necessary to manage the 

3 individual offices within the U.S. Customs and Border 

4 Protection Agency. Any appointment of personnel under 

5 this subsection shall be subject to the provisions of the 

6 civil service laws, and the salaries shall be fixed in accord7 ance with chapter 51 and subchapter III of chapter 53 

8 of title 5, United States Code.’’. 

9 (b) TRADE OFFICES AND FUNCTIONS.—The Act of 

10 March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 

11 2071 et seq.), is amended by adding at the end the fol12 lowing: 

13 ‘‘SEC. 4. OFFICE OF TRADE. 

14 ‘‘(a) ESTABLISHMENT OF OFFICE OF TRADE.— 

15 There shall be in the U.S. Customs and Border Protection 

16 Agency an Office of Trade, which shall be headed by an 

17 Assistant Commissioner for Trade. 

18 ‘‘(b) TRANSFER OF ASSETS, FUNCTION, AND PER19 SONNEL; ELIMINATION OF OFFICES.— 

20 ‘‘(1) OFFICE OF INTERNATIONAL TRADE.— 

21 ‘‘(A) TRANSFER.—Not later than 30 days 

22 after the date of the enactment of the Trade 

23 Facilitation and Trade Enforcement Reauthor24 ization Act of 2013, the Secretary of Homeland 

25 Security shall transfer the assets, functions, 


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1 personnel, and liabilities of the Office of Inter2 national Trade to the Office of Trade estab3 lished under subsection (a). 

4 ‘‘(B) ELIMINATION.—Not later than 30 

5 days after the date of the enactment of the 

6 Trade Facilitation and Trade Enforcement Re7 authorization Act of 2013, the Office of Inter8 national Trade shall be abolished. 

9 ‘‘(C) LIMITATION ON FUNDS.—No funds 

10 appropriated to the U.S. Customs and Border 

11 Protection Agency or the Department of Home12 land Security may be used to transfer the as13 sets, functions, personnel, and liabilities of the 

14 Office of International Trade to an office other 

15 than the Office of Trade established under sub16 section (a). 

17 ‘‘(D) OFFICE OF INTERNATIONAL TRADE

18 DEFINED.—In this paragraph, the term ‘Office 

19 of International Trade’ means the Office of 

20 International Trade established under sub21 section (d) of section 2 of this Act, as added by 

22 section 402 of the Security and Accountability 

23 for Every Port Act of 2006 (Public Law 109– 

24 347; 120 Stat. 1924), and as in effect on the 

25 day before the date of the enactment of the 


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1 Trade Facilitation and Trade Enforcement Re2 authorization Act of 2013. 

3 ‘‘(2) OTHER TRANSFERS.— 

4 ‘‘(A) IN GENERAL.—The Commissioner is 

5 authorized to transfer any other assets, func6 tions, or personnel within the U.S. Customs 

7 and Border Protection Agency to the Office of 

8 Trade established under subsection (a). 

9 ‘‘(B) CONGRESSIONAL NOTIFICATION.— 

10 Not less than 90 days prior to the transfer of 

11 assets, functions, or personnel under subpara12 graph (A), the Commissioner shall notify the 

13 Committee on Finance of the Senate and the 

14 Committee on Ways and Means of the House of 

15 Representatives of the specific assets, functions, 

16 or personnel to be transferred, and the reason 

17 for the transfer. 

18 ‘‘(c) ASSISTANT COMMISSIONER FOR TRADE.— 

19 ‘‘(1) APPOINTMENT.— 

20 ‘‘(A) IN GENERAL.—The Commissioner 

21 shall appoint an Assistant Commissioner for 

22 Trade who shall— 

23 ‘‘(i) be the head of the Office of 

24 Trade; and 


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1 ‘‘(ii) report to the Deputy Commis2 sioner for Trade of the U.S. Customs and 

3 Border Protection Agency. 

4 ‘‘(B) SENIOR EXECUTIVE SERVICE POSI5 TION.—The position of Assistant Commissioner 

6 for Trade shall be a Senior Executive Service 

7 position (as defined in section 3132(a) of title 

8 5, United States Code). 

9 ‘‘(2) QUALIFICATIONS.—An individual ap10 pointed to be the Assistant Commissioner for Trade 

11 shall have a minimum of 10 years of professional ex12 perience in the operation of the customs and trade 

13 laws of the United States, not less than 3 of which 

14 shall involve either working with or for the private 

15 sector on matters relating to trade facilitation or 

16 trade enforcement. 

17 ‘‘(3) DUTIES.—The duties of the Assistant 

18 Commissioner for Trade shall include— 

19 ‘‘(A) directing the development and imple20 mentation, pursuant to the customs and trade 

21 laws of the United States, of policies and regu22 lations administered by the U.S. Customs and 

23 Border Protection Agency; 

24 ‘‘(B) advising the Deputy Commissioner 

25 for Trade with respect to the impact on trade 


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1 facilitation and trade enforcement of any policy 

2 or regulation otherwise proposed or adminis3 tered by the Agency; 

4 ‘‘(C) cooperating with the Assistant Com5 missioner for Field Operations with respect to 

6 the trade facilitation and trade enforcement ac7 tivities of the Agency carried out at the land 

8 borders and ports of entry of the United States; 

9 ‘‘(D) directing the development and imple10 mentation of matters relating to the priority 

11 trade issues identified by the Commissioner in 

12 the joint strategic plan on trade facilitation and 

13 trade enforcement required under section 123A 

14 of the Customs and Trade Act of 1990; 

15 ‘‘(E) otherwise advising the Commissioner 

16 with respect to the development and implemen17 tation of the joint strategic plan; 

18 ‘‘(F) directing the trade enforcement ac19 tivities of the Agency, including the activities of 

20 the National Targeting and Analysis Groups es21 tablished under section 211 of the Trade Facili22 tation and Trade Enforcement Reauthorization 

23 Act of 2013; 

24 ‘‘(G) overseeing the trade modernization 

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1 ment and implementation of the Automated 

2 Commercial Environment computer system au3 thorized under section 13031(f)(5) of the Con4 solidated Omnibus Budget and Reconciliation 

5 Act of 1985 (19 U.S.C. 58c(f)(5)) and support 

6 for the establishment of the International Trade 

7 Data System under the oversight of the Depart8 ment of the Treasury pursuant to section 

9 411(d) of the Tariff Act of 1930 (19 U.S.C. 

10 1411(d)); 

11 ‘‘(H) directing the administration of cus12 toms revenue functions as otherwise provided 

13 by law or delegated by the Commissioner; and 

14 ‘‘(I) preparing an annual report to be sub15 mitted to the Committee on Finance of the Sen16 ate and the Committee on Ways and Means of 

17 the House of Representatives not later than 

18 March 1 of each calendar year that includes— 

19 ‘‘(i) a summary of the changes to cus20 toms policies and regulations adopted by 

21 the Agency during the preceding calendar 

22 year; and 

23 ‘‘(ii) a description of the public vet24 ting and interagency consultation that oc25 curred with respect to each such change. 


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1 ‘‘(4) CONTINUATION IN OFFICE.—The indi2 vidual serving as the Assistant Commissioner of the 

3 Office of International Trade on the day before the 

4 date of the enactment of the Trade Facilitation and 

5 Trade Enforcement Reauthorization Act of 2013 

6 may serve as the Assistant Commissioner for Trade 

7 on or after such date of enactment, at the discretion 

8 of the Commissioner. 

9 ‘‘SEC. 5. OFFICE OF INTERNATIONAL AFFAIRS. 

10 ‘‘(a) ESTABLISHMENT OF OFFICE OF INTER11 NATIONAL AFFAIRS.—There shall be in the U.S. Customs 

12 and Border Protection Agency an Office of International 

13 Affairs, which shall be headed by an Assistant Commis14 sioner for International Affairs. 

15 ‘‘(b) ASSISTANT COMMISSIONER FOR INTER16 NATIONAL AFFAIRS.— 

17 ‘‘(1) APPOINTMENT.— 

18 ‘‘(A) IN GENERAL.—The Commissioner 

19 shall appoint an Assistant Commissioner for 

20 International Affairs who shall— 

21 ‘‘(i) be the head of the Office of Inter22 national Affairs; and 

23 ‘‘(ii) report to the Deputy Commis24 sioner for Trade of the U.S. Customs and 

25 Border Protection Agency. 


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1 ‘‘(B) SENIOR EXECUTIVE SERVICE POSI2 TION.—The position of Assistant Commissioner 

3 for International Affairs shall be a Senior Exec4 utive Service position (as defined in section 

5 3132(a) of title 5, United States Code). 

6 ‘‘(2) QUALIFICATIONS.—An individual ap7 pointed to be the Assistant Commissioner for Inter8 national Affairs shall have a minimum of 10 years 

9 of professional experience in the operation of the 

10 customs and trade laws of the United States, not 

11 less than 3 of which shall involve either working 

12 with or for the private sector on matters relating to 

13 trade facilitation or trade enforcement. 

14 ‘‘(3) DUTIES.—The duties of the Assistant 

15 Commissioner for International Affairs shall in16 clude— 

17 ‘‘(A) coordinating the initiatives, programs, 

18 and activities of the U.S. Customs and Border 

19 Protection Agency in foreign countries, includ20 ing employees of the Agency in foreign coun21 tries; 

22 ‘‘(B) advising the Commissioner with re23 spect to matters arising in the World Customs 

24 Organization and, if appropriate, the World 


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1 Trade Organization and other international or2 ganizations; 

3 ‘‘(C) ensuring that the policies and regula4 tions of the Agency are consistent with the obli5 gations of the United States pursuant to inter6 national agreements; 

7 ‘‘(D) coordinating with other Federal agen8 cies on international efforts to enhance trade 

9 facilitation and trade enforcement by the Agen10 cy; 

11 ‘‘(E) coordinating with the customs au12 thorities of foreign countries with respect to 

13 trade facilitation and, as appropriate, trade en14 forcement; and 

15 ‘‘(F) providing training and capacity build16 ing to customs authorities of foreign countries. 

17 ‘‘(4) CONTINUATION IN OFFICE.—The indi18 vidual serving as the Assistant Commissioner of the 

19 Office of International Affairs on the day before the 

20 date of the enactment of the Trade Facilitation and 

21 Trade Enforcement Reauthorization Act of 2013 

22 may serve as the Assistant Commissioner for Inter23 national Affairs on or after such date of enactment, 

24 at the discretion of the Commissioner. 


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1 ‘‘SEC. 6. COORDINATION BETWEEN THE ASSISTANT COM2 MISSIONER FOR TRADE AND THE ASSISTANT 

3 COMMISSIONER FOR FIELD OPERATIONS. 

4 ‘‘To advance the security, trade facilitation, and 

5 trade enforcement missions of the U.S. Customs and Bor6 der Protection Agency, the Commissioner shall ensure that 

7 the Assistant Commissioner for Trade and the Assistant 

8 Commissioner for Field Operations of the Agency work to9 gether on— 

10 ‘‘(1) trade facilitation and trade enforcement 

11 activities at United States ports of entry; 

12 ‘‘(2) operational training of personnel within 

13 the Office of Field Operations at United States 

14 ports of entry to administer trade facilitation and 

15 trade enforcement activities; 

16 ‘‘(3) evaluating the operational effectiveness of 

17 the trade facilitation and trade enforcement activi18 ties at United States ports of entry by personnel of 

19 the Office of Field Operations; 

20 ‘‘(4) cooperating with the Trade Advocate es21 tablished under section 2(c) to ensure that any in22 formation received from private sector entities re23 garding the trade facilitation and trade enforcement 

24 activities of the Agency is considered; 

25 ‘‘(5) ensuring the uniform administration and 

26 implementation among United States ports of entry 


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1 of new or revised customs and trade laws, policies, 

2 or regulations related to the trade facilitation and 

3 trade enforcement activities of the Agency; 

4 ‘‘(6) implementing the operational provisions of 

5 the joint strategic plan on trade facilitation and 

6 trade enforcement required under section 123A of 

7 the Customs and Trade Act of 1990 related to the 

8 trade facilitation and trade enforcement activities of 

9 the Agency at United States ports of entry; 

10 ‘‘(7) in cooperation with the Office of Inter11 national Affairs established under section 5, ensur12 ing that trade facilitation and trade enforcement ac13 tivities comply with obligations of the United States 

14 pursuant to international agreements; 

15 ‘‘(8) ensuring the prompt collection of available 

16 data regarding cargo that violates the customs and 

17 trade laws of the United States, and the prompt 

18 issuance of Trade Alerts pursuant to section 211 of 

19 the Trade Facilitation and Trade Enforcement Re20 authorization Act of 2013; and 

21 ‘‘(9) otherwise overseeing the trade facilitation 

22 and trade enforcement activities of personnel within 

23 the Office of Field Operations at United States 

24 ports of entry. 


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1 ‘‘SEC. 7. ESTABLISHMENT OF TRADE FACILITATION AND 

2 TRADE ENFORCEMENT DIVISION IN OFFICE 

3 OF FIELD OPERATIONS; DIVISION PER4 SONNEL. 

5 ‘‘(a) ESTABLISHMENT.—There is established in the 

6 Office of Field Operations of the U.S. Customs and Bor7 der Protection Agency a Trade Facilitation and Trade En8 forcement Division. 

9 ‘‘(b) DIVISION PERSONNEL.— 

10 ‘‘(1) HEADQUARTERS PERSONNEL.—The Com11 missioner shall assign sufficient personnel to operate 

12 the Trade Facilitation and Trade Enforcement Divi13 sion in the Office of Field Operations established 

14 under subsection (a). 

15 ‘‘(2) COMMERCIAL ENFORCEMENT OFFICERS.— 

16 ‘‘(A) IN GENERAL.—Not later than 180 

17 days after the date of the enactment of the 

18 Trade Facilitation and Trade Enforcement Re19 authorization Act of 2013, the Commissioner 

20 shall designate and dedicate within the Office of 

21 Field Operations not fewer than 40 commercial 

22 enforcement officers. 

23 ‘‘(B) ASSIGNMENT.—The Commissioner 

24 shall assign the commercial enforcement officers 

25 authorized under this subsection among the 40 

26 United States ports of entry that experienced 


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1 the highest volume of trade during fiscal year 

2 2013. 

3 ‘‘(C) DUTIES.—The duties of a commercial 

4 enforcement officer shall be— 

5 ‘‘(i) to supervise all trade enforcement 

6 activities of personnel of the Office of Field 

7 Operations at the port of entry to which 

8 the commercial enforcement officer has 

9 been assigned; 

10 ‘‘(ii) to coordinate with the Office of 

11 Trade all trade enforcement activities at 

12 that port of entry; 

13 ‘‘(iii) to direct the training of per14 sonnel at that port of entry to effectuate 

15 the trade enforcement activities of the Of16 fice of Field Operations; and 

17 ‘‘(iv) to otherwise conduct trade en18 forcement activities at that port of entry. 

19 ‘‘SEC. 8. CUSTOMS FACILITATION AND ENFORCEMENT 

20 INTERAGENCY COMMITTEE. 

21 ‘‘(a) ESTABLISHMENT.—The Commissioner shall es22 tablish a Customs Facilitation and Enforcement Inter23 agency Committee (in this section referred to as the ‘Com24 mittee’) to improve coordination and collaboration among 


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1 Federal agencies with respect to trade facilitation and 

2 trade enforcement. 

3 ‘‘(b) FUNCTIONS.—The functions of the Committee 

4 shall include— 

5 ‘‘(1) advising the Commissioner with respect to 

6 policies or regulations of the U.S. Customs and Bor7 der Protection Agency that may significantly af8 fect— 

9 ‘‘(A) the trade facilitation and trade en10 forcement missions of the Agency; or 

11 ‘‘(B) the international trade policy, trade 

12 commitments, or trade competitiveness of the 

13 United States; 

14 ‘‘(2) consulting with the Commissioner with re15 spect to the development and implementation of poli16 cies of agencies that are represented on the Com17 mittee that significantly affect the trade facilitation 

18 and trade enforcement missions of the Agency; 

19 ‘‘(3) reviewing recommendations of and ad20 dressing concerns identified by the Customs Facilita21 tion and Enforcement Review Group established 

22 under subsection (d); and 

23 ‘‘(4) such other functions as are agreed on by 

24 the Commissioner and the members of the Com25 mittee. 


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1 ‘‘(c) MEMBERSHIP.—The members of the Committee 

2 shall be the following: 

3 ‘‘(1) The Commissioner. 

4 ‘‘(2) The Deputy Commissioner for Trade of 

5 the U.S. Customs and Border Protection Agency. 

6 ‘‘(3) The Assistant Secretary for Tax Policy of 

7 the Department of the Treasury. 

8 ‘‘(4) The Administrator of the Animal and 

9 Plant Health Inspection Service of the Department 

10 of Agriculture. 

11 ‘‘(5) The Director of the Bureau of Alcohol, To12 bacco, Firearms, and Explosives of the Department 

13 of Justice. 

14 ‘‘(6) The Chairman of the Consumer Product 

15 Safety Commission. 

16 ‘‘(7) The Administrator of the Environmental 

17 Protection Agency. 

18 ‘‘(8) The Commissioner of Food and Drugs of 

19 the Department of Health and Human Services. 

20 ‘‘(9) The Administrator of the Food Safety and 

21 Inspection Service of the Department of Agriculture. 

22 ‘‘(10) The Director of U.S. Immigration and 

23 Customs Enforcement of the Department of Home24 land Security. 


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1 ‘‘(11) The Administrator of the National High2 way Traffic Safety Administration of the Depart3 ment of Transportation. 

4 ‘‘(12) The Assistant Administrator for Fish5 eries of the National Oceanic and Atmospheric Ad6 ministration of the Department of Commerce. 

7 ‘‘(13) The Under Secretary for International 

8 Trade of the Department of Commerce. 

9 ‘‘(14) A Deputy United States Trade Rep10 resentative. 

11 ‘‘(15) Senior officials of such other Federal 

12 agencies as the Commissioner determines appro13 priate. 

14 ‘‘(d) CUSTOMS FACILITATION AND ENFORCEMENT

15 REVIEW GROUP.— 

16 ‘‘(1) ESTABLISHMENT.—The Committee shall 

17 establish a Customs Facilitation and Enforcement 

18 Review Group (in this subsection referred to as the 

19 ‘Review Group’) as a subordinate body of the Com20 mittee. 

21 ‘‘(2) MEMBERSHIP.—The members of the Re22 view Group shall be— 

23 ‘‘(A) the Deputy Commissioner for Trade 

24 of the U.S. Customs and Border Protection 

25 Agency or another senior official of the Agency 


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1 designated by the Commissioner, who shall 

2 serve as chairperson of the Review Group; and 

3 ‘‘(B) a senior official of each agency rep4 resented on the Committee. 

5 ‘‘(3) MEETINGS.—The Deputy Commissioner 

6 for Trade shall convene the Review Group as needed 

7 to carry out the functions of the Review Group 

8 under paragraph (4) and any other duties assigned 

9 to the Review Group by the Committee. 

10 ‘‘(4) FUNCTIONS.—The functions of the Review 

11 Group shall include— 

12 ‘‘(A) reviewing, and advising the Com13 mittee with respect to, proposed policies, proce14 dures, regulations, and activities of the U.S. 

15 Customs and Border Protection Agency that 

16 may significantly affect— 

17 ‘‘(i) the trade facilitation and trade 

18 enforcement missions of the Agency; or 

19 ‘‘(ii) the international trade policy, 

20 trade commitments, or trade competitive21 ness of the United States; 

22 ‘‘(B) advising the Committee with respect 

23 to the development and implementation of poli24 cies, procedures, regulations, and activities of 

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1 nificantly affect the trade facilitation and trade 

2 enforcement missions of the Agency; and 

3 ‘‘(C) such other functions as the Com4 mittee may direct.’’. 

5 (c) CONFORMING AMENDMENT.—Section 5315 of 

6 title 5, United States Code, is amended by adding at the 

7 end the following: 

8 ‘‘Deputy Commissioners of U.S. Customs and 

9 Border Protection, Department of Homeland Secu10 rity (3).’’. 

11 (d) CONFORMING REPEAL.—Section 650 of the Tar12 iff Act of 1930 (19 U.S.C. 1650) is repealed. 

13 SEC. 103. SEPARATE BUDGET REQUESTS FOR U.S. CUSTOMS 

14 AND BORDER PROTECTION AGENCY. 

15 (a) IN GENERAL.—The President shall include in 

16 each budget transmitted to Congress under section 1105 

17 of title 31, United States Code, two separate budget re18 quests for the U.S. Customs and Border Protection Agen19 cy— 

20 (1) one for the commercial operations of the 

21 Agency; and 

22 (2) one for the noncommercial operations of the 

23 Agency. 

24 (b) REPEAL.— 


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1 (1) IN GENERAL.—Section 414 of the Home2 land Security Act of 2002 (6 U.S.C. 214) is re3 pealed. 

4 (2) CONFORMING AMENDMENT.—The table of 

5 contents for the Homeland Security Act of 2002 is 

6 amended by striking the item relating to section 414 

7 and inserting the following: 

‘‘Sec. 414. [Reserved].’’. 

8 SEC. 104. REVOLVING FUND. 

9 The matter under the heading ‘‘REVOLVING FUND, 

10 BUREAU OF CUSTOMS’’ in the Treasury and Post Office 

11 Departments Appropriation Act, 1950 (63 Stat. 360, 

12 chapter 286; 19 U.S.C. 2074), is amended by striking 

13 ‘‘United States Customs Service’’ and inserting ‘‘U.S. 

14 Customs and Border Protection Agency’’. 

15 SEC. 105. ADVANCES IN FOREIGN COUNTRIES. 

16 The matter under the heading ‘‘BUREAU OF CUS17 TOMS’’ in the Treasury Department Appropriation Act 

18 1940 (53 Stat. 660, chapter 115; 19 U.S.C. 2076) is 

19 amended in the last proviso by striking ‘‘Bureau of Cus20 toms’’ and inserting ‘‘U.S. Customs and Border Protec21 tion Agency or the U.S. Immigration and Customs En22 forcement Agency’’. 


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1 SEC. 106. ADVANCES FOR ENFORCEMENT OF CUSTOMS 

2 PROVISIONS. 

3 Section 2 of the Act of March 28, 1928 (45 Stat. 

4 374, chapter 266; 19 U.S.C. 2077), is amended to read 

5 as follows: 

6 ‘‘SEC. 2. ADVANCES FOR ENFORCEMENT OF CUSTOMS PRO7 VISIONS. 

8 ‘‘The Commissioner of U.S. Customs and Border 

9 Protection and the Director of U.S. Immigration and Cus10 toms Enforcement, with the approval of the Secretary of 

11 Homeland Security and the Secretary of the Treasury, are 

12 each authorized to direct the advance of funds by the Fis13 cal Service of the Department of the Treasury in connec14 tion with the enforcement of the customs and trade laws 

15 of the United States (as defined in section 2 of the Trade 

16 Facilitation and Trade Enforcement Reauthorization Act 

17 of 2013).’’. 

18 SEC. 107. CERTIFICATION OF REASON FOR ADVANCE. 

19 Section 3 of the Act of March 28, 1928 (45 Stat. 

20 374, chapter 266; 19 U.S.C. 2078), is amended by strik21 ing ‘‘Commissioner of Customs’’ and inserting ‘‘Commis22 sioner of U.S. Customs and Border Protection or the Di23 rector of U.S. Immigration and Customs Enforcement’’. 


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1 SEC. 108. PAYMENTS IN FOREIGN COUNTRIES; CLAIMS FOR 

2 REIMBURSEMENT. 

3 Section 4 of the Act of March 28, 1928 (45 Stat. 

4 374, chapter 266; 19 U.S.C. 2079), is amended to read 

5 as follows: 

6 ‘‘SEC. 4. PAYMENTS IN FOREIGN COUNTRIES; CLAIMS FOR 

7 REIMBURSEMENT. 

8 ‘‘The provisions of this Act shall not affect payments 

9 made for the U.S. Customs and Border Protection Agency 

10 or the U.S. Immigration and Customs Enforcement Agen11 cy in foreign countries, or the right of any officer or em12 ployee of either such Agency to claim reimbursement for 

13 personal funds expended in connection with the enforce14 ment of the customs and trade laws of the United States 

15 (as defined in section 2 of the Trade Facilitation and 

16 Trade Enforcement Reauthorization Act of 2013).’’. 

17 SEC. 109. CUSTOMS ADMINISTRATION. 

18 Section 113 of the Customs and Trade Act of 1990 

19 (19 U.S.C. 2082) is amended to read as follows: 

20 ‘‘SEC. 113. CUSTOMS ADMINISTRATION. 

21 ‘‘(a) IN GENERAL.—The Commissioner of U.S. Cus22 toms and Border Protection and the Director of U.S. Im23 migration and Customs Enforcement each shall— 

24 ‘‘(1) develop and implement accounting systems 

25 that accurately determine and report the allocation 

26 of the personnel and other resources of the U.S. 


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1 Customs and Border Protection Agency and the 

2 U.S. Immigration and Customs Enforcement Agency 

3 among the various operational functions of each 

4 Agency, such as merchandise processing, passenger 

5 processing, drug enforcement, trade facilitation, and 

6 trade enforcement; and 

7 ‘‘(2) develop and implement periodic labor dis8 tribution surveys of major workforce activities within 

9 the U.S. Customs and Border Protection Agency 

10 and the U.S. Immigration and Customs Enforce11 ment Agency to determine the cost of the various 

12 operational functions of each Agency and the extent 

13 to which the costs of one Agency are covered by the 

14 other Agency. 

15 ‘‘(b) SURVEY REPORTS.—Not later than one year 

16 after the date of the enactment of the Trade Facilitation 

17 and Trade Enforcement Reauthorization Act of 2013, the 

18 Commissioner of U.S. Customs and Border Protection and 

19 the Director of U.S. Immigration and Customs Enforce20 ment shall each submit to the Committee on Finance of 

21 the Senate and the Committee on Ways and Means of the 

22 House of Representatives a report on the results of the 

23 first surveys implemented under subsection (a)(2).’’. 


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1 SEC. 110. PERSONNEL. 

2 (a) IN GENERAL.—Subsection (a) of section 401 of 

3 the Security and Accountability for Every Port Act of 

4 2006 (6 U.S.C. 115) is amended to read as follows: 

5 ‘‘(a) DIRECTOR OF TRADE POLICY.— 

6 ‘‘(1) IN GENERAL.—There shall be in the Office 

7 of Policy of the Department of Homeland Security 

8 a Director of Trade Policy, who shall— 

9 ‘‘(A) coordinate with the Commissioner of 

10 U.S. Customs and Border Protection and the 

11 Director of U.S. Immigration and Customs En12 forcement to ensure that the economic security 

13 interests of the United States associated with 

14 international trade, including trade facilitation 

15 and trade enforcement (as defined in section 2 

16 of the Trade Facilitation and Trade Enforce17 ment Reauthorization Act of 2013), are consid18 ered in the development and implementation of 

19 policies within the Department of Homeland 

20 Security; 

21 ‘‘(B) engage with law enforcement and 

22 customs authorities of foreign countries and 

23 private sector entities to build on existing ef24 forts to develop, strengthen, and implement 

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1 tems of the global economy and more effectively 

2 facilitating trade; and 

3 ‘‘(C) submit to the Committee on Finance 

4 of the Senate and the Committee on Ways and 

5 Means of the House of Representatives, not 

6 later than December 15 of each year, a report 

7 describing how the Department of Homeland 

8 Security accounted for the economic security in9 terests of the United States associated with 

10 international trade, including trade facilitation 

11 and trade enforcement, in developing and imple12 menting policies during the preceding fiscal 

13 year. 

14 ‘‘(2) QUALIFICATIONS.—The Director of Trade 

15 Policy shall have significant experience in the devel16 opment, operation, or administration of the customs 

17 and trade laws of the United States (as defined in 

18 section 2 of the Trade Facilitation and Trade En19 forcement Reauthorization Act of 2013).’’. 

20 (b) NEW PERSONNEL.—Subsection (c) of section 412 

21 of the Homeland Security Act of 2002 (6 U.S.C. 212(c)) 

22 is amended to read as follows: 

23 ‘‘(c) NEW PERSONNEL.—Not later than 90 days 

24 after the date of the enactment of the Trade Facilitation 

25 and Trade Enforcement Reauthorization Act of 2013, the 


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1 Secretary of the Treasury shall designate and dedicate not 

2 fewer than 5 and not more than 20 full-time equivalent 

3 personnel to work exclusively with the Deputy Assistant 

4 Secretary of the Treasury for Tax, Trade, and Tariff Pol5 icy in the performance and oversight of customs revenue 

6 functions.’’. 

7 SEC. 111. AUTHORIZATION OF APPROPRIATIONS. 

8 (a) IN GENERAL.—Section 301 of the Customs Pro9 cedural Reform and Simplification Act of 1978 (19 U.S.C. 

10 2075) is amended— 

11 (1) by redesignating subsection (h) as sub12 section (i); and 

13 (2) by striking subsections (a) through (g) and 

14 inserting the following: 

15 ‘‘(a) IN GENERAL.— 

16 ‘‘(1) FISCAL YEAR 2014 AND EACH FISCAL YEAR

17 THEREAFTER.—For fiscal year 2014 and each fiscal 

18 year thereafter, there are authorized to be appro19 priated to the Department of Homeland Security for 

20 the U.S. Customs and Border Protection Agency 

21 only such sums as may hereafter be authorized by 

22 law. 

23 ‘‘(2) REQUIREMENT FOR AUTHORIZATION.— 

24 The authorization of appropriations for the U.S. 

25 Customs and Border Protection Agency for fiscal 


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1 year 2014 and each fiscal year thereafter shall speci2 fy— 

3 ‘‘(A) the amount authorized for the fiscal 

4 year for the salaries and expenses of the Agency 

5 in conducting commercial operations (as de6 scribed in section 1(c)(2) of the Act of March 

7 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 

8 2071)); and 

9 ‘‘(B) the amount authorized for the fiscal 

10 year for the salaries and expenses of the Agency 

11 for noncommercial operations. 

12 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated for the salaries and ex14 penses of the U.S. Customs and Border Protection Agency 

15 that are incurred in commercial operations such sums as 

16 are necessary for fiscal years 2014 through 2018. 

17 ‘‘(c) CUSTOMS USER FEE ACCOUNT.—The monies 

18 authorized to be appropriated pursuant to subsection (b) 

19 for any fiscal year, except for such sums as may be nec20 essary for the salaries and expenses of the U.S. Customs 

21 and Border Protection Agency that are incurred in con22 nection with the processing of merchandise that is exempt 

23 from the fees imposed pursuant to paragraphs (9) and 

24 (10) of section 13031(a) of the Consolidated Omnibus 

25 Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)), 


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1 shall be appropriated from the Customs User Fee Ac2 count. 

3 ‘‘(d) MANDATORY 10-DAY DEFERMENT.—No part of 

4 the funds appropriated pursuant to subsection (a) for any 

5 fiscal year may be used to provide less time for the collec6 tion of estimated duties than the 10-day deferment proce7 dure in effect on January 1, 1981. 

8 ‘‘(e) OVERTIME PAY LIMITATIONS; WAIVER.—No 

9 part of the funds appropriated pursuant to subsection (a) 

10 for any fiscal year may be used for administrative ex11 penses to pay any employee of the U.S. Customs and Bor12 der Protection Agency overtime pay in an amount exceed13 ing $35,000 unless the Secretary of Homeland Security, 

14 or the designee of the Secretary, determines on an indi15 vidual basis that payment of overtime pay to such em16 ployee in an amount exceeding $35,000 is necessary for 

17 national security purposes, to prevent excessive costs, or 

18 to meet emergency requirements of the Agency. 

19 ‘‘(f) PAY COMPARABILITY AUTHORIZATION.—For fis20 cal year 2014 and each fiscal year thereafter, there are 

21 authorized to be appropriated to the Department of 

22 Homeland Security for salaries of the U.S. Customs and 

23 Border Protection Agency such additional sums as may 

24 be provided by law to reflect pay rate changes made in 


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1 accordance with subchapter I of chapter 53 of title 5, 

2 United States Code. 

3 ‘‘(g) USE OF SAVINGS RESULTING FROM ADMINIS4 TRATIVE CONSOLIDATIONS.—If savings in salaries and ex5 penses result from the consolidation of administrative 

6 functions within the U.S. Customs and Border Protection 

7 Agency, the Commissioner of U.S. Customs and Border 

8 Protection shall apply the savings, to the extent the sav9 ings are not needed to meet emergency requirements of 

10 the Agency, to strengthening the commercial operations 

11 of the Agency. 

12 ‘‘(h) ALLOCATION OF RESOURCES; REPORT TO CON13 GRESSIONAL COMMITTEES.—The Commissioner of U.S. 

14 Customs and Border Protection shall notify the Com15 mittee on Finance of the Senate and the Committee on 

16 Ways and Means of the House of Representatives at least 

17 180 days prior to taking any action that would— 

18 ‘‘(1) result in any significant reduction in force 

19 of employees of the U.S. Customs and Border Pro20 tection Agency other than by means of attrition; 

21 ‘‘(2) result in any significant reduction in hours 

22 of operation or services rendered at any office of the 

23 Agency or any United States port of entry; 

24 ‘‘(3) eliminate or relocate any office of the 

25 Agency; 


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1 ‘‘(4) eliminate any United States port of entry; 

2 or 

3 ‘‘(5) significantly reduce the number of employ4 ees assigned to any office or any function of the 

5 Agency.’’. 

6 (b) RESOURCE OPTIMIZATION MODEL.—Subsection 

7 (i) of section 301 of the Customs Procedural Reform and 

8 Simplification Act of 1978, as redesignated by subsection 

9 (a), is amended by striking ‘‘Resource Allocation Model’’ 

10 each place it appears in the text and in the heading and 

11 inserting ‘‘Resource Optimization Model’’. 

12 (c) CONFORMING AMENDMENTS.— 

13 (1) IN GENERAL.—Subsection (c) of section 5 

14 of the Act of February 13, 1911 (36 Stat. 901, 

15 chapter 46; 19 U.S.C. 267), is amended to read as 

16 follows: 

17 ‘‘(c) LIMITATIONS.— 

18 ‘‘(1) FISCAL YEAR CAP.—The aggregate of 

19 overtime pay under subsection (a) (including com20 muting compensation under subsection (a)(2)(B)) 

21 and premium pay under subsection (b) that an em22 ployee of the U.S. Customs and Border Protection 

23 Agency may be paid in any fiscal year may not ex24 ceed $35,000 unless the Secretary of Homeland Se25 curity, or the designee of the Secretary, determines 


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1 on an individual basis that payment of overtime pay 

2 to such employee in an amount exceeding $35,000 is 

3 necessary for national security purposes, to prevent 

4 excessive costs, or to meet emergency requirements 

5 of the Agency. 

6 ‘‘(2) EXCLUSIVITY OF PAY UNDER THIS SEC7 TION.—An employee of the Agency who receives 

8 overtime pay under subsection (a), or premium pay 

9 under subsection (b) for time worked, may not re10 ceive pay or other compensation for that work under 

11 any other provision of law.’’. 

12 (2) BASIC PAY.—Section 8331(3)(G) of title 5, 

13 United States Code, is amended— 

14 (A) by striking ‘‘a customs officer’’ and all 

15 that follows through ‘‘1911)’’ and inserting ‘‘an 

16 employee of the U.S. Customs and Border Pro17 tection Agency’’; 

18 (B) by striking ‘‘subsection (a) of such sec19 tion 5’’ and inserting ‘‘subsection (c) of section 

20 5 of the Act of February 13, 1911 (36 Stat. 

21 901, chapter 46; 19 U.S.C. 267)’’; and 

22 (C) by striking ‘‘customs officers’’ and in23 serting ‘‘such employees’’. 


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1 Subtitle B—Investigative Functions 

2 SEC. 121. ESTABLISHMENT OF U.S. IMMIGRATION AND CUS3 TOMS ENFORCEMENT AGENCY. 

4 (a) IN GENERAL.—Section 442 of the Homeland Se5 curity Act of 2002 (6 U.S.C. 252) is amended to read 

6 as follows: 

7 ‘‘SEC. 442. ESTABLISHMENT OF U.S. IMMIGRATION AND 

8 CUSTOMS ENFORCEMENT AGENCY; DIREC9 TOR. 

10 ‘‘(a) ESTABLISHMENT OF AGENCY.—There shall be 

11 in the Department of Homeland Security an agency to be 

12 known as the U.S. Immigration and Customs Enforce13 ment Agency. 

14 ‘‘(b) ESTABLISHMENT OF DIRECTOR.— 

15 ‘‘(1) IN GENERAL.—The head of the U.S. Im16 migration and Customs Enforcement Agency shall 

17 be a Director of U.S. Immigration and Customs En18 forcement (in this section referred to as the ‘Direc19 tor’), who shall— 

20 ‘‘(A) be appointed by the President, by and 

21 with the advice and consent of the Senate; 

22 ‘‘(B) carry out the duties and powers de23 scribed in subsection (c), prescribed by law, and 

24 prescribed by the Secretary of Homeland Secu25 rity; 


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1 ‘‘(C) report directly to the Secretary of 

2 Homeland Security; and 

3 ‘‘(D) have a minimum of 5 years profes4 sional experience in law enforcement, and a 

5 minimum of 5 years of management experience. 

6 ‘‘(2) COMMITTEE REFERRAL.—As an exercise 

7 of the rulemaking power of the Senate, any nomina8 tion for Director shall be referred to the Committee 

9 on Finance. If the Committee on Finance has not 

10 reported such nomination at the close of the 30th 

11 day after its referral to such Committee, the Com12 mittee shall be automatically discharged from fur13 ther consideration of such nomination and such 

14 nomination shall be referred to the Committee on 

15 the Judiciary. 

16 ‘‘(3) COMPENSATION.—The Director shall be 

17 compensated at the rate of pay for level III of the 

18 Executive Schedule as provided in section 5314 of 

19 title 5, United States Code. 

20 ‘‘(c) DUTIES OF DIRECTOR.—The duties of the Di21 rector shall include— 

22 ‘‘(1) establishing and overseeing the administra23 tion of policies with respect to functions— 

24 ‘‘(A) performed under the detention and 

25 removal program, the intelligence program, and 


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1 the investigations program that were trans2 ferred to the Under Secretary for Border and 

3 Transportation Security by section 441 and del4 egated to the Assistant Secretary for U.S. Im5 migration and Customs Enforcement on the day 

6 before the date of the enactment of the Trade 

7 Facilitation and Trade Enforcement Reauthor8 ization Act of 2013; and 

9 ‘‘(B) otherwise vested in the Assistant Sec10 retary on the day before such date of enact11 ment; 

12 ‘‘(2) advising the Secretary with respect to any 

13 policy or operation of the U.S. Immigration and 

14 Customs Enforcement Agency that may affect the 

15 U.S. Citizenship and Immigration Services estab16 lished under subtitle E, including potentially con17 flicting policies and operations; 

18 ‘‘(3) conducting and coordinating investigations 

19 of violations of the customs and trade laws of the 

20 United States (as defined in section 2 of the Trade 

21 Facilitation and Trade Enforcement Reauthorization 

22 Act of 2013) and, when appropriate, referring al23 leged violations of such laws for criminal prosecu24 tion; 


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1 ‘‘(4) coordinating efforts with law enforcement 

2 and customs authorities of foreign countries to in3 vestigate violations of customs and trade laws; and 

4 ‘‘(5) coordinating with the Commissioner of 

5 U.S. Customs and Border Protection with respect to 

6 investigations of violations of the customs and trade 

7 laws of the United States and ensuring the develop8 ment and implementation of the joint strategic plan 

9 on trade facilitation and trade enforcement required 

10 under section 123A of the Customs and Trade Act 

11 of 1990. 

12 ‘‘(d) DEPUTY DIRECTOR.—The Director is author13 ized to appoint, in the U.S. Immigration and Customs En14 forcement Agency established under subsection (a), one 

15 Deputy Director who shall assist the Director in the man16 agement of the Agency and who shall act for the Director 

17 during the absence or disability of the Director or in the 

18 event that the position of Director is vacant. 

19 ‘‘(e) ADDITIONAL OFFICERS.—The Director may ap20 point such officers as are necessary to manage the indi21 vidual offices within the U.S. Immigration and Customs 

22 Enforcement Agency. 

23 ‘‘(f) PROGRAM TO COLLECT INFORMATION RELAT24 ING TO FOREIGN STUDENTS.—The Director shall be re25 sponsible for administering the program to collect inforVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 mation relating to nonimmigrant foreign students and 

2 other exchange program participants described in section 

3 641 of the Illegal Immigration Reform and Immigrant Re4 sponsibility Act of 1996 (8 U.S.C. 1372), including the 

5 Student and Exchange Visitor Information System estab6 lished pursuant to that section, and shall use such infor7 mation to carry out the enforcement functions of the U.S. 

8 Immigration and Customs Enforcement Agency. 

9 ‘‘(g) CHIEF OF POLICY AND STRATEGY.— 

10 ‘‘(1) IN GENERAL.—There shall be a position of 

11 Chief of Policy and Strategy for the U.S. Immigra12 tion and Customs Enforcement Agency. 

13 ‘‘(2) FUNCTIONS.—In consultation with per14 sonnel in local offices of the Agency, the Chief of 

15 Policy and Strategy shall be responsible for— 

16 ‘‘(A) making policy recommendations and 

17 performing policy research and analysis on im18 migration enforcement issues; and 

19 ‘‘(B) coordinating immigration policy 

20 issues with the Chief of Policy and Strategy for 

21 the Bureau of Citizenship and Immigration 

22 Services established under section 451(c), as 

23 appropriate. 

24 ‘‘(h) LEGAL ADVISOR.—There shall be a principal 

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1 vide specialized legal advice to the Director and shall rep2 resent the U.S. Immigration and Customs Enforcement 

3 Agency in all exclusion, deportation, and removal pro4 ceedings before the Executive Office for Immigration Re5 view.’’. 

6 (b) COMPENSATION.— 

7 (1) IN GENERAL.—Section 5314 of title 5, 

8 United States Code, is amended by adding at the 

9 end the following: 

10 ‘‘Director of U.S. Immigration and Customs 

11 Enforcement, Department of Homeland Security.’’. 

12 (2) CONTINUATION IN OFFICE.—The individual 

13 serving as Assistant Secretary for U.S. Immigration 

14 and Customs Enforcement of the Department of 

15 Homeland Security on the day before the date of the 

16 enactment of this Act may serve as Director of U.S. 

17 Immigration and Customs Enforcement until the 

18 earlier of— 

19 (A) the date on which that individual is no 

20 longer eligible to serve as Assistant Secretary; 

21 or 

22 (B) the date on which an individual nomi23 nated by the President to be the Director of 

24 U.S. Immigration and Customs Enforcement is 

25 confirmed by the Senate. 


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1 (3) REFERENCE.—On and after the date of the 

2 enactment of this Act, any reference to the Assistant 

3 Secretary for U.S. Immigration and Customs En4 forcement or the Assistant Secretary of the Bureau 

5 of Border Security of the Department of Homeland 

6 Security, shall be deemed to be a reference to the 

7 Director of U.S. Immigration and Customs Enforce8 ment. 

9 (c) CONFORMING AMENDMENTS.— 

10 (1) The heading for subtitle D of title IV of the 

11 Homeland Security Act of 2002 is amended to read 

12 as follows: 

13 ‘‘Subtitle D—Enforcement 

14 Functions’’. 

15 (2) The table of contents for the Homeland Se16 curity Act of 2002 is amended— 

17 (A) by striking the item relating to section 

18 442 and inserting the following: 

‘‘Sec. 442. Establishment of U.S. Immigration and Customs Enforcement 

Agency; Director.’’; 

19 and 

20 (B) by striking the item relating to subtitle 

21 D of title IV and inserting the following: 

‘‘Subtitle D—Enforcement Functions’’. 

22 (3) Section 451(a)(2)(C) of the Homeland Se23 curity Act of 2002 (6 U.S.C. 271(a)(2)(C)) is 


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1 amended by striking ‘‘Assistant Secretary of the Bu2 reau of Border Security’’ and inserting ‘‘Director of 

3 U.S. Immigration and Customs Enforcement’’. 

4 SEC. 122. SEPARATE BUDGET REQUESTS FOR U.S. IMMI5 GRATION AND CUSTOMS ENFORCEMENT 

6 AGENCY. 

7 The President shall include in each budget trans8 mitted to Congress under section 1105 of title 31, United 

9 States Code, two separate budget requests for the U.S. 

10 Immigration and Customs Enforcement Agency— 

11 (1) one for the customs operations of the Agen12 cy; and 

13 (2) one for the operations of the Agency other 

14 than customs operations. 

15 SEC. 123. UNDERCOVER INVESTIGATIVE OPERATIONS. 

16 Section 3131 of the Customs Enforcement Act of 

17 1986 (19 U.S.C. 2081) is amended— 

18 (1) in the section heading, by striking ‘‘CUS19 TOMS SERVICE’’ and inserting ‘‘U.S. IMMIGRA20 TION AND CUSTOMS ENFORCEMENT AGENCY’’; 

21 (2) in subsection (a)— 

22 (A) in the matter preceding paragraph 

23 (1)— 

24 (i) by striking ‘‘United States Cus25 toms Service (hereinafter in this section reVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 ferred to as the ‘Service’)’’ and inserting 

2 ‘‘U.S. Immigration and Customs Enforce3 ment Agency (in this section referred to as 

4 the ‘Agency’)’’; and 

5 (ii) by striking ‘‘the Treasury’’ and in6 serting ‘‘Homeland Security’’; 

7 (B) in paragraph (1)— 

8 (i) in the matter preceding subpara9 graph (A), by striking ‘‘for the Service’’; 

10 and 

11 (ii) in subparagraph (A), by striking 

12 clauses (i) through (v) and inserting the 

13 following: 

14 ‘‘(i) sections 1341 and 3324 of title 

15 31, United States Code, 

16 ‘‘(ii) section 8141 of title 40, United 

17 States Code, and 

18 ‘‘(iii) sections 3901, 6301, and 6306, 

19 and chapter 45, of title 41, United States 

20 Code, and’’; 

21 (C) in paragraph (2), by striking ‘‘Service’’ 

22 and inserting ‘‘Agency’’; and 

23 (D) in the flush text at the end, by strik24 ing ‘‘Commissioner of Customs (or, if des25 ignated by the Commissioner the Deputy or an 


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1 Assistant Commissioner of Customs)’’ and in2 serting ‘‘Director of U.S. Immigration and Cus3 toms Enforcement (or such other officer within 

4 the Agency as the Director may designate)’’; 

5 (3) in subsection (b), by striking ‘‘Service, as 

6 much in advance as the Commissioner or his des7 ignee determines is practicable, shall report the cir8 cumstances to the Secretary of the Treasury’’ and 

9 inserting ‘‘Agency, as much in advance as the Direc10 tor (or such other officer within the Agency as the 

11 Director may designate) determines is practicable, 

12 shall report the circumstances to the Secretary of 

13 Homeland Security and the Secretary of the Treas14 ury’’; 

15 (4) in subsection (d)— 

16 (A) in paragraph (1)— 

17 (i) in the matter preceding subpara18 graph (A), by striking ‘‘Service’’ and in19 serting ‘‘Director of U.S. Immigration and 

20 Customs Enforcement’’; and 

21 (ii) in subparagraph (A), by inserting 

22 ‘‘the Secretary of Homeland Security and’’ 

23 after ‘‘in writing to’’; and 

24 (B) in paragraph (2), in the matter pre25 ceding subparagraph (A)— 


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1 (i) by striking ‘‘Service’’ and inserting 

2 ‘‘Director’’; and 

3 (ii) by striking ‘‘as to its undercover 

4 investigative operations’’ and inserting 

5 ‘‘with respect to the undercover investiga6 tive operations of the Agency’’; and 

7 (5) in subsection (e), by striking ‘‘Service’’ each 

8 place it appears and inserting ‘‘Agency’’. 

9 SEC. 124. AUTHORIZATION OF APPROPRIATIONS. 

10 Title III of the Customs Procedural Reform and Sim11 plification Act of 1978 (19 U.S.C. 2075) is amended by 

12 inserting after section 301 the following: 

13 ‘‘SEC. 302. AUTHORIZATION OF APPROPRIATIONS FOR CER14 TAIN CUSTOMS ENFORCEMENT ACTIVITIES. 

15 ‘‘(a) IN GENERAL.— 

16 ‘‘(1) FISCAL YEAR 2014 AND EACH FISCAL YEAR

17 THEREAFTER.—For fiscal year 2014 and each fiscal 

18 year thereafter, there are authorized to be appro19 priated to the Department of Homeland Security for 

20 the U.S. Immigration and Customs Enforcement 

21 Agency only such sums as may hereafter be author22 ized by law. 

23 ‘‘(2) SPECIFICATION OF AMOUNTS.—The au24 thorization of the appropriations for the U.S. Immi25 gration and Customs Enforcement Agency for fiscal 


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1 year 2014 and each fiscal year thereafter shall speci2 fy— 

3 ‘‘(A) the amount authorized for the fiscal 

4 year for the salaries and expenses of the Agency 

5 in conducting customs operations; and 

6 ‘‘(B) the amount authorized for the fiscal 

7 year for the salaries and expenses of the Agency 

8 for other than customs operations. 

9 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated for the salaries and ex11 penses of the U.S. Immigration and Customs Enforcement 

12 Agency that are incurred in customs operations such sums 

13 as are necessary for fiscal years 2014 through 2018.’’. 

14 Subtitle C—Joint Strategic Plan on 

15 Trade Facilitation and Trade 

16 Enforcement 

17 SEC. 131. JOINT STRATEGIC PLAN ON TRADE FACILITATION 

18 AND TRADE ENFORCEMENT. 

19 (a) IN GENERAL.—Subtitle C of title I of the Cus20 toms and Trade Act of 1990 (Public Law 101–382; 104 

21 Stat. 629) is amended by inserting after section 123 (19 

22 U.S.C. 2083) the following: 


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1 ‘‘SEC. 123A. JOINT STRATEGIC PLAN ON TRADE FACILITA2 TION AND TRADE ENFORCEMENT. 

3 ‘‘(a) IN GENERAL.—Not later than one year after the 

4 date of the enactment of the Trade Facilitation and Trade 

5 Enforcement Reauthorization Act of 2013, and every 2 

6 years thereafter, the Commissioner of U.S. Customs and 

7 Border Protection and the Director of U.S. Immigration 

8 and Customs Enforcement shall jointly develop and sub9 mit to the Committee on Finance of the Senate and the 

10 Committee on Ways and Means of the House of Rep11 resentatives a joint strategic plan on trade facilitation and 

12 trade enforcement. 

13 ‘‘(b) CONTENTS.—The joint strategic plan required 

14 by subsection (a) shall be comprised of a comprehensive 

15 multiyear plan for trade facilitation and trade enforcement 

16 and shall include— 

17 ‘‘(1) a summary of actions taken during the 2- 

18 year period preceding the submission of the report 

19 to improve trade facilitation and trade enforcement, 

20 including a description and analysis of specific per21 formance measures to evaluate the progress of the 

22 U.S. Customs and Border Protection Agency and 

23 the U.S. Immigration and Customs Enforcement 

24 Agency with respect to trade facilitation and trade 

25 enforcement; 


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1 ‘‘(2) a statement of objectives and plans for 

2 further improving trade facilitation and trade en3 forcement; 

4 ‘‘(3) a statement of objectives and plans to 

5 strengthen the economic security and competitive6 ness of the United States; 

7 ‘‘(4) a designation of priority trade issues that 

8 that can be addressed in order to enhance trade fa9 cilitation and trade enforcement and a description of 

10 strategies, plans, and metrics for addressing each 

11 such issue; 

12 ‘‘(5) a description of efforts made to improve 

13 consultation and coordination among Federal agen14 cies, and in particular between the U.S. Customs 

15 and Border Protection Agency and the U.S. Immi16 gration and Customs Enforcement Agency, to en17 hance trade facilitation and trade enforcement; 

18 ‘‘(6) a description of efforts to work with the 

19 World Customs Organization, the World Trade Or20 ganization, and other international organizations 

21 with respect to enhancing trade facilitation and 

22 trade enforcement; 

23 ‘‘(7) a description of efforts made to improve 

24 consultation and coordination with the private sector 

25 to enhance trade facilitation and trade enforcement; 


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1 ‘‘(8) a description of the training that has oc2 curred during the 2-year period preceding the sub3 mission of the report within the U.S. Customs and 

4 Border Protection Agency and the U.S. Immigration 

5 and Customs Enforcement Agency to improve trade 

6 facilitation and trade enforcement; 

7 ‘‘(9) a specific identification of any domestic or 

8 international best practices or technologies that may 

9 further improve trade facilitation and trade enforce10 ment; and 

11 ‘‘(10) any legislative recommendations to fur12 ther improve trade facilitation and trade enforce13 ment. 

14 ‘‘(c) CONSULTATIONS.—In developing the joint stra15 tegic plan required by subsection (a), the Commissioner 

16 of U.S. Customs and Border Protection and the Director 

17 of U.S. Immigration and Customs Enforcement shall con18 sult with— 

19 ‘‘(1) appropriate officials of agencies rep20 resented on the Customs Facilitation and Enforce21 ment Interagency Committee established under sec22 tion 8 of the Act of March 3, 1927, and such other 

23 agencies as the Commissioner or the Director deter24 mine appropriate; and 


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1 ‘‘(2) the Customs Operations Advisory Com2 mittee and the Trade Support Network, as appro3 priate. 

4 ‘‘(d) DEFINITIONS.—In this section, the terms ‘Cus5 toms Operations Advisory Committee’, ‘trade enforce6 ment’, ‘trade facilitation’, and ‘Trade Support Network’ 

7 have the meanings given those terms in section 2 of the 

8 Trade Facilitation and Trade Enforcement Reauthoriza9 tion Act of 2013.’’. 

10 (b) CONFORMING AMENDMENT.—The table of con11 tents for the Customs and Trade Act of 1990 is amended 

12 by inserting after the item relating to section 123 the fol13 lowing: 

‘‘Sec. 123A. Joint strategic plan on trade facilitation and trade enforcement.’’. 

14 TITLE II—TRADE FACILITATION, 

15 TRADE ENFORCEMENT, AND 

16 TRANSPARENCY 

17 Subtitle A—Trade Facilitation and 

18 Transparency 

19 SEC. 201. IMPROVING PARTNERSHIP PROGRAMS. 

20 (a) IN GENERAL.—In order to advance the security, 

21 trade facilitation, and trade enforcement missions of the 

22 U.S. Customs and Border Protection Agency, the Com23 missioner shall ensure that partnership programs of the 

24 Agency established before the date of the enactment of 

25 this Act, such as the Customs–Trade Partnership Against 


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1 Terrorism established under subtitle B of title II of the 

2 Security and Accountability for Every Port Act of 2006 

3 (6 U.S.C. 961 et seq.), and partnership programs of the 

4 Agency established after such date of enactment, provide 

5 trade benefits to private sector entities that meet the re6 quirements for participation in those programs established 

7 by the Commissioner under this section. 

8 (b) ELEMENTS.—In developing and operating part9 nership programs under subsection (a), the Commissioner 

10 shall— 

11 (1) consult with private sector entities, the pub12 lic, and other Federal agencies when appropriate, to 

13 ensure that participants in those programs receive 

14 commercially significant and measurable trade bene15 fits; 

16 (2) ensure an integrated and transparent sys17 tem of trade benefits and compliance requirements 

18 for all partnership programs of the U.S. Customs 

19 and Border Protection Agency; 

20 (3) consider consolidating partnership programs 

21 in situations in which doing so would support the 

22 objectives of such programs, increase participation in 

23 such programs, enhance the trade benefits provided 

24 to participants in such programs, and enhance the 

25 allocation of the resources of the Agency; 


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1 (4) coordinate with other Federal agencies with 

2 authority to detain and release merchandise entering 

3 the United States— 

4 (A) to ensure coordination in the release of 

5 such merchandise through the Automated Com6 mercial Environment computer system, or its 

7 predecessor, and the International Trade Data 

8 System; 

9 (B) to ensure that the partnership pro10 grams of those agencies are compatible with the 

11 partnership programs of the U.S. Customs and 

12 Border Protection Agency; and 

13 (C) to develop criteria for authorizing the 

14 release, on an expedited basis, of merchandise 

15 for which documentation is required from one 

16 or more of those agencies to clear or license the 

17 merchandise for entry into the United States; 

18 and 

19 (5) ensure that trade benefits are provided to 

20 participants in partnership programs. 

21 (c) REPORT REQUIRED.—Not later than the date 

22 that is 180 days after the date of the enactment of this 

23 Act, and December 31 of each year thereafter, the Com24 missioner shall submit to the Committee on Finance of 


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1 the Senate and the Committee on Ways and Means of the 

2 House of Representatives a report that— 

3 (1) identifies each partnership program referred 

4 to in subsection (a), including the program referred 

5 to in section 499A of the Tariff Act of 1930, as 

6 added by section 202; 

7 (2) for each such program, identifies— 

8 (A) the requirements for participants in 

9 the program; 

10 (B) the commercially significant and meas11 urable trade benefits provided to participants in 

12 the program; 

13 (C) the number of participants in the pro14 gram; and 

15 (D) in the case of a program that provides 

16 for participation at multiple tiers, the number 

17 of participants at each such tier; 

18 (3) identifies the number of participants en19 rolled in more than one such partnership program; 

20 (4) assesses the effectiveness of each such part21 nership program in advancing the security, trade fa22 cilitation, and trade enforcement missions of the 

23 U.S. Customs and Border Protection Agency, based 

24 on historical developments, the level of participation 


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1 in the program, and the evolution of benefits pro2 vided to participants in the program; 

3 (5) summarizes the efforts of the Agency to 

4 work with other Federal agencies with authority to 

5 detain and release merchandise entering the United 

6 States to ensure that partnership programs of those 

7 agencies are compatible with partnership programs 

8 of the Agency; 

9 (6) identifies from among those agencies the 

10 agencies that are collaborating with the Commis11 sioner to provide benefits pursuant to subsection (f) 

12 of section 499A of the Tariff Act of 1930, as added 

13 by section 202; 

14 (7) summarizes criteria developed with those 

15 agencies for authorizing the release, on an expedited 

16 basis, of merchandise for which documentation is re17 quired from one or more of those agencies to clear 

18 or license the merchandise for entry into the United 

19 States; 

20 (8) summarizes the efforts of the Agency to 

21 work with private sector entities and the public to 

22 develop and improve partnership programs referred 

23 to in subsection (a); 


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1 (9) describes measures taken by the Agency to 

2 make private sector entities aware of the trade bene3 fits available to participants in such programs; and 

4 (10) summarizes the plans, targets, and goals 

5 of the Agency with respect to such programs for the 

6 2 years following the submission of the report. 

7 SEC. 202. TRADE FACILITATION PARTNERSHIP PROGRAM. 

8 (a) IN GENERAL.—Title IV of the Tariff Act of 1930 

9 (19 U.S.C. 1401 et seq.) is amended by adding at the end 

10 the following: 

11 ‘‘SEC. 499A. TRADE FACILITATION PARTNERSHIP PRO12 GRAM. 

13 ‘‘(a) IN GENERAL.—The Commissioner of U.S. Cus14 toms and Border Protection (in this section referred to 

15 as the ‘Commissioner’) shall establish a voluntary govern16 ment–private sector program or modify an existing such 

17 program to enhance trade facilitation and trade enforce18 ment and to provide trade benefits developed under sub19 section (c) to qualified persons. 

20 ‘‘(b) QUALIFIED PERSON DEFINED.—For purposes 

21 of this section, the term ‘qualified person’ means a person 

22 that— 

23 ‘‘(1) is involved in the entry of merchandise 

24 into the United States, including as an intermodal 

25 transportation system provider, contract logistics 


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1 provider, air, land, or sea carrier, customs broker, 

2 importer, or forwarder; and 

3 ‘‘(2) demonstrates compliance with the require4 ments established under subsection (e) in accordance 

5 with the procedures established under subsection 

6 (d). 

7 ‘‘(c) TRADE BENEFITS.— 

8 ‘‘(1) IN GENERAL.—The Commissioner shall, in 

9 consultation with the entities specified in paragraph 

10 (3), develop enhanced commercially significant and 

11 measurable trade benefits to be provided to qualified 

12 persons. 

13 ‘‘(2) REQUIREMENTS.—The trade benefits de14 veloped under paragraph (1) shall— 

15 ‘‘(A) be designed to expedite the release of 

16 merchandise of qualified persons upon arrival of 

17 the merchandise in the United States; and 

18 ‘‘(B) include— 

19 ‘‘(i) consideration of the status of per20 sons as qualified persons for the purposes 

21 of commercial targeting under section 

22 211(c) of the Trade Facilitation and Trade 

23 Enforcement Reauthorization Act of 2013; 

24 ‘‘(ii) to the extent practicable, giving 

25 priority to qualified persons with respect to 


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1 the clearance of merchandise during activi2 ties to resume trade after any disruption to 

3 the processing of merchandise entering the 

4 United States; 

5 ‘‘(iii) providing preclearance of mer6 chandise for qualified persons that dem7 onstrate the highest levels of compliance 

8 with the customs and trade laws of the 

9 United States, regulations of the U.S. Cus10 toms and Border Protection Agency, and 

11 requirements established under subsection 

12 (e); and 

13 ‘‘(iv) any other trade benefits the 

14 Commissioner determines appropriate for 

15 achieving the goals of the program under 

16 subsection (a). 

17 ‘‘(3) ENTITIES SPECIFIED.—The entities speci18 fied in this paragraph are— 

19 ‘‘(A) the Customs Operations Advisory 

20 Committee established under section 205 of the 

21 Trade Facilitation and Trade Enforcement Re22 authorization Act of 2013; 

23 ‘‘(B) the Trade Support Network (as de24 fined in section 2 of that Act); 


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1 ‘‘(C) the Committee on Finance of the 

2 Senate; and 

3 ‘‘(D) the Committee on Ways and Means 

4 of the House of Representatives. 

5 ‘‘(d) PROCEDURES.—The Commissioner shall estab6 lish procedures with respect to the following: 

7 ‘‘(1) Submission and approval of applications to 

8 receive trade benefits under the program under sub9 section (a). 

10 ‘‘(2) Verification that an applicant to receive 

11 trade benefits under the program is a qualified per12 son. 

13 ‘‘(3) Reverification that a person receiving 

14 trade benefits under the program continues to be a 

15 qualified person. 

16 ‘‘(4) Withdrawal of trade benefits from a per17 son that the Commissioner determines is not a quali18 fied person. 

19 ‘‘(5) Appeals of decisions of the Commissioner 

20 under this section. 

21 ‘‘(e) REQUIREMENTS.— 

22 ‘‘(1) IN GENERAL.—The Commissioner, in con23 sultation with the entities specified in subsection 

24 (c)(3)— 


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1 ‘‘(A) shall establish requirements for re2 ceiving trade benefits under the program under 

3 subsection (a); and 

4 ‘‘(B) may establish multiple tiers of re5 quirements and trade benefits under the pro6 gram. 

7 ‘‘(2) MINIMUM REQUIREMENTS.—The minimum 

8 requirements for a person to receive trade benefits 

9 under the program under subsection (a) are the fol10 lowing: 

11 ‘‘(A) The certification of the person as a 

12 member of the Customs–Trade Partnership 

13 Against Terrorism established under subtitle B 

14 of title II of the Security and Accountability for 

15 Every Port Act of 2006 (6 U.S.C. 961 et seq.) 

16 or an equivalent certification in a successor pro17 gram. 

18 ‘‘(B) A history of compliance by the person 

19 with the customs and trade laws of the United 

20 States and regulations of the U.S. Customs and 

21 Border Protection Agency. 

22 ‘‘(f) INTERAGENCY PROGRAM BENEFITS.—The Com23 missioner shall collaborate with the head of each Federal 

24 agency with authority to detain and release merchandise 

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1 vided to persons that receive trade benefits under the pro2 gram under subsection (a) and that import merchandise 

3 into the United States that requires clearance by that 

4 agency, including— 

5 ‘‘(1) the submission to, and retrieval of infor6 mation from, that agency relating to the entry and 

7 release of that merchandise through the Automated 

8 Commercial Environment, or its predecessor, and 

9 the International Trade Data System; 

10 ‘‘(2) the preclearance of that merchandise by 

11 that agency through the Automated Commercial En12 vironment or its predecessor to the extent possible; 

13 and 

14 ‘‘(3) any other benefits that the Commissioner 

15 and the head of that agency determine appropriate. 

16 ‘‘(g) CONFIDENTIAL INFORMATION SAFEGUARDS.— 

17 The Commissioner, in consultation with the Customs Op18 erations Advisory Committee established under section 

19 205 of the Trade Facilitation and Trade Enforcement Re20 authorization Act of 2013, shall establish procedures to 

21 safeguard confidential data collected, stored, or shared 

22 with the U.S. Customs and Border Protection Agency or 

23 any other Federal agency pursuant to this section. 

24 ‘‘(h) CUSTOMS AND TRADE LAWS OF THE UNITED

25 STATES DEFINED.—In this section, the term ‘customs 


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1 and trade laws of the United States’ has the meaning 

2 given that term in section 2 of the Trade Facilitation and 

3 Trade Enforcement Reauthorization Act of 2013.’’. 

4 (b) FEDERAL REGISTER NOTICE.—Not later than 90 

5 days after the date of the enactment of this Act, the Com6 missioner shall publish a notice in the Federal Register 

7 setting forth the requirements of section 499A of the Tar8 iff Act of 1930, as added by subsection (a), and seeking 

9 public comments on the development and implementation 

10 of the program under that section. 

11 SEC. 203. CENTERS OF EXCELLENCE AND EXPERTISE. 

12 The Commissioner shall, in consultation with private 

13 sector entities, develop and implement Agency-wide Cen14 ters of Excellence and Expertise that— 

15 (1) build the expertise of the U.S. Customs and 

16 Border Protection Agency in particular industry op17 erations, supply chains, and compliance require18 ments; 

19 (2) ensure the uniform implementation across 

20 United States ports of entry of policies and regula21 tions affecting major import sectors; 

22 (3) centralize decisionmaking of the Agency 

23 that impacts particular industries; 

24 (4) enhance trade facilitation and trade enforce25 ment; and 


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1 (5) formalize an account-based approach to the 

2 importation of merchandise into the United States 

3 by persons the Commissioner determines have a his4 tory of compliance with the customs and trade laws 

5 of the United States. 

6 SEC. 204. MUTUAL RECOGNITION AGREEMENTS. 

7 (a) NEGOTIATING OBJECTIVE.—It shall be a negoti8 ating objective of the United States in any negotiation for 

9 a mutual recognition agreement with a foreign country on 

10 partnership programs, such as the Customs–Trade Part11 nership Against Terrorism established under subtitle B of 

12 title II of the Security and Accountability for Every Port 

13 Act of 2006 (6 U.S.C. 961 et seq.), to seek to ensure the 

14 compatibility of the partnership programs of that country 

15 with the partnership programs of the U.S. Customs and 

16 Border Protection Agency to enhance trade facilitation 

17 and trade enforcement. 

18 (b) CONSULTATIONS.—Not later than 30 days before 

19 entering into a mutual recognition agreement described in 

20 subsection (a), the Secretary of Homeland Security shall 

21 consult with the Committee on Finance of the Senate and 

22 the Committee on Ways and Means of the House of Rep23 resentatives with respect to how the provisions of the 

24 agreement will advance the security, trade facilitation, and 


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1 trade enforcement missions of the U.S. Customs and Bor2 der Protection Agency. 

3 SEC. 205. CUSTOMS OPERATIONS ADVISORY COMMITTEE. 

4 (a) ESTABLISHMENT.—Not later than December 31, 

5 2013, the Secretary of the Treasury and the Secretary of 

6 Homeland Security shall jointly establish a Customs Oper7 ations Advisory Committee (in this section referred to as 

8 the ‘‘Advisory Committee’’). 

9 (b) MEMBERSHIP.— 

10 (1) IN GENERAL.—The Advisory Committee 

11 shall be comprised of— 

12 (A) 20 individuals appointed under para13 graph (2); 

14 (B) the Commissioner and the Assistant 

15 Secretary for Tax Policy of the Department of 

16 the Treasury, who shall jointly co-chair meet17 ings of the Advisory Committee; and 

18 (C) the Assistant Secretary for Policy of 

19 the Department of Homeland Security and the 

20 Director of U.S. Immigration and Customs En21 forcement, who shall serve as deputy co-chairs 

22 of meetings of the Advisory Committee. 

23 (2) APPOINTMENT.— 

24 (A) IN GENERAL.—Not later than 180 

25 days after the date of the enactment of this 


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1 Act, the Secretary of the Treasury and the Sec2 retary of Homeland Security shall jointly ap3 point 20 individuals from the private sector to 

4 the Advisory Committee, not more than 10 of 

5 whom shall be of the same political party. 

6 (B) TERMS.—Each individual appointed to 

7 the Advisory Committee under this paragraph 

8 shall be appointed for a term of up to 3 years, 

9 and may be reappointed to subsequent terms, 

10 but may not serve more than 2 terms sequen11 tially. 

12 (3) QUALIFICATIONS.—The individuals ap13 pointed to the Advisory Committee shall be broadly 

14 representative of the sectors of the United States 

15 economy affected by the commercial operations of 

16 the U.S. Customs and Border Protection Agency 

17 and the investigations of the U.S. Immigration and 

18 Customs Enforcement Agency. 

19 (4) TRANSFER OF MEMBERSHIP.—The Sec20 retary of the Treasury and the Secretary of Home21 land Security may transfer members serving on the 

22 Advisory Committee on Commercial Operations of 

23 the United States Customs Service established under 

24 section 9503(c) of the Omnibus Budget Reconcili25 ation Act of 1987 (19 U.S.C. 2071 note) on the day 


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1 before the date of the enactment of this Act to the 

2 Advisory Committee established under subsection 

3 (a). 

4 (c) DUTIES.—The Advisory Committee established 

5 under subsection (a) shall— 

6 (1) advise the Secretary of the Treasury and 

7 the Secretary of Homeland Security on all matters 

8 involving the commercial operations of the U.S. Cus9 toms and Border Protection Agency and the inves10 tigations of the U.S. Immigration and Customs En11 forcement Agency, including advising with respect to 

12 significant changes that are proposed with respect to 

13 policies or regulations of either such Agency; 

14 (2) provide recommendations to the Secretary 

15 of the Treasury and the Secretary of Homeland Se16 curity on improvements to the commercial operations 

17 of the U.S. Customs and Border Protection Agency 

18 and the investigations of the U.S. Immigration and 

19 Customs Enforcement Agency; and 

20 (3) perform such other functions relating to the 

21 commercial operations of the U.S. Customs and Bor22 der Protection Agency and the investigations of the 

23 U.S. Immigration and Customs Enforcement Agency 

24 as prescribed by law or as the Secretary of the 


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1 Treasury and the Secretary of Homeland Security 

2 jointly direct. 

3 (d) MEETINGS.— 

4 (1) IN GENERAL.—The Advisory Committee 

5 shall meet at the call of the Secretary of the Treas6 ury and the Secretary of Homeland Security or at 

the call of not less than 2 7 ⁄3 of the membership of the 

8 Advisory Committee. 

9 (2) NUMBER OF MEETINGS.—The Advisory 

10 Committee shall, at a minimum, meet at least 4 

11 times each calendar year. Additional meetings may 

12 be called of such special task forces or other groups 

13 made up of members of the Advisory Committee as 

14 the Advisory Committee determines appropriate. 

15 (3) ADDITION OF AGENDA ITEMS.—Any mem16 ber of the Advisory Committee may recommend ad17 ditional items for the agenda of a meeting before the 

18 meeting. 

19 (4) OPEN MEETINGS.—A meeting of the Advi20 sory Committee shall be open to the public unless 

21 the Secretary of the Treasury and the Secretary of 

22 Homeland Security determine that the meeting will 

23 include matters the disclosure of which would seri24 ously compromise the development of policies, prior25 ities, or negotiating objectives or positions that could 


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1 impact the commercial operations of the U.S. Cus2 toms and Border Protection Agency or the investiga3 tions of the U.S. Immigration and Customs Enforce4 ment Agency. 

5 (e) REPORTS.— 

6 (1) ANNUAL REPORT.—Not later than Decem7 ber 31 of each calendar year, the Advisory Com8 mittee shall submit to the Committee on Finance of 

9 the Senate and the Committee on Ways and Means 

10 of the House of Representatives a report that— 

11 (A) describes the activities of the Advisory 

12 Committee during the preceding fiscal year; and 

13 (B) sets forth any recommendations of the 

14 Advisory Committee regarding the commercial 

15 operations of the U.S. Customs and Border 

16 Protection Agency and the investigations of the 

17 U.S. Immigration and Customs Enforcement 

18 Agency during the preceding fiscal year. 

19 (2) ADDITIONAL REPORTS.—The members of 

20 the Advisory Committee appointed under subsection 

21 (b)(2) may submit directly to the Committee on Fi22 nance of the Senate and the Committee on Ways 

23 and Means of the House of Representatives such ad24 ditional reports on the commercial operations of the 

25 U.S. Customs and Border Protection Agency and 


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1 the investigations of the U.S. Immigration and Cus2 toms Enforcement Agency as such members deter3 mine appropriate. 

4 (f) APPLICABILITY OF FEDERAL ADVISORY COM5 MITTEE ACT.—The provisions of the Federal Advisory 

6 Committee Act (5 U.S.C. App.) shall apply to the Advisory 

7 Committee, except as follows: 

8 (1) Subsections (a) and (b) of section 10 of 

9 such Act (relating to open meetings and availability 

10 of information) shall not apply. 

11 (2) Section 11 of such Act (relating to the 

12 availability of transcripts of meetings) shall not 

13 apply. 

14 (3) Section 14(a)(2) of such Act (relating to 

15 termination) shall be applied by substituting ‘‘4-year 

16 period’’ for ‘‘two-year period’’. 

17 (g) CONFORMING REPEAL.—Effective January 31, 

18 2014, section 9503(c) of the Omnibus Budget Reconcili19 ation Act of 1987 (19 U.S.C. 2071 note) is repealed. 

20 (h) REFERENCES.—On or after January 31, 2014, 

21 any reference in law to the Advisory Committee on Com22 mercial Operations of the United States Customs Service 

23 established under section 9503(c) of the Omnibus Budget 

24 Reconciliation Act of 1987 (19 U.S.C. 2071 note) shall 


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1 be deemed to be a reference to the Customs Operations 

2 Advisory Committee established under subsection (a). 

3 (i) CONFORMING AMENDMENTS.— 

4 (1) SAFE PORT ACT.—The Security and Ac5 countability for Every Port Act of 2006 (6 U.S.C. 

6 901 et seq.) is amended— 

7 (A) in section 2, by striking paragraph (2) 

8 and inserting the following: 

9 ‘‘(2) CUSTOMS OPERATIONS ADVISORY COM10 MITTEE.—The term ‘Customs Operations Advisory 

11 Committee’ means the Advisory Committee estab12 lished under section 205 of the Trade Facilitation 

13 and Trade Enforcement Reauthorization Act of 

14 2013 or any successor committee.’’; and 

15 (B) by striking ‘‘Commercial Operations 

16 Advisory Committee’’ each place it appears and 

17 inserting ‘‘Customs Operations Advisory Com18 mittee’’. 

19 (2) TARIFF ACT OF 1930.—Section 411(d) of 

20 the Tariff Act of 1930 (19 U.S.C. 1411(d)) is 

21 amended— 

22 (A) in paragraph (1)(D), by striking 

23 ‘‘Commercial Operations Advisory Committee’’ 

24 and inserting ‘‘Customs Operations Advisory 

25 Committee’’; and 


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1 (B) by striking paragraph (7) and insert2 ing the following: 

3 ‘‘(7) CUSTOMS OPERATIONS ADVISORY COM4 MITTEE DEFINED.—In this section, the term ‘Cus5 toms Operations Advisory Committee’ means the 

6 Advisory Committee established under section 205 of 

7 the Trade Facilitation and Trade Enforcement Re8 authorization Act of 2013 or any successor com9 mittee.’’. 

10 (3) EFFECTIVE DATE.—The amendments made 

11 by this subsection shall take effect on January 1, 

12 2014. 

13 SEC. 206. AUTOMATED COMMERCIAL ENVIRONMENT COM14 PUTER SYSTEM. 

15 (a) FUNDING.—Section 13031(f)(5) of the Consoli16 dated Omnibus Budget Reconciliation Act of 1985 (19 

17 U.S.C. 58c(f)(5)) is amended— 

18 (1) in subparagraph (A)— 

19 (A) by striking ‘‘2003, 2004, and 2005’’ 

20 and inserting ‘‘2014 through 2018’’; and 

21 (B) by striking ‘‘$350,000,000’’ and in22 serting ‘‘$325,000,000’’; and 

23 (2) by striking subparagraph (B) and inserting 

24 the following: 


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1 ‘‘(B)(i) From amounts that are available in the Ac2 count, there are authorized to be appropriated— 

3 ‘‘(I) for each of fiscal years 2014 through 2016, 

4 $140,000,000 to complete the development of the 

5 Automated Commercial Environment computer sys6 tem; 

7 ‘‘(II) for each of fiscal years 2017 and 2018, 

8 $115,000,000 for the operation and maintenance of 

9 the Automated Commercial Environment computer 

10 system; and 

11 ‘‘(III) for fiscal years 2014 through 2018, such 

12 amounts as are available in the Account after the 

13 obligation of amounts pursuant to the authorizations 

14 of appropriations under subclauses (I) and (II) and 

15 subparagraph (C) for other purposes related to the 

16 functions of the Department of Homeland Security. 

17 ‘‘(ii) Amounts authorized to be appropriated pursu18 ant to this subparagraph shall remain available until ex19 pended. 

20 ‘‘(iii) Not more than 1 percent of the amounts au21 thorized to be appropriated from the Account under sub22 clauses (I) and (II) of clause (i) may be used as matching 

23 funds to assist Federal agencies (other than the Depart24 ment of Homeland Security) with authority to detain and 

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1 oping their respective automated release programs that 

2 are integrated with the Automated Commercial Environ3 ment computer system.’’. 

4 (b) REPORT.—Section 311(b)(3) of the Customs Bor5 der Security Act of 2002 (19 U.S.C. 2075 note) is amend6 ed to read as follows: 

7 ‘‘(3) REPORT.— 

8 ‘‘(A) IN GENERAL.—Not later than De9 cember 31, 2013, the Commissioner of U.S. 

10 Customs and Border Protection shall submit to 

11 the Committee on Appropriations and the Com12 mittee on Finance of the Senate and the Com13 mittee on Appropriations and the Committee on 

14 Ways and Means of the House of Representa15 tives a report— 

16 ‘‘(i) describing the plans of the U.S. 

17 Customs and Border Protection Agency, 

18 including deadlines, for incorporating all 

19 cargo release data elements into the Auto20 mated Commercial Environment computer 

21 system not later than September 30, 2015, 

22 to conform with the admissibility criteria 

23 of agencies participating in the Inter24 national Trade Data System identified 


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1 pursuant to subsection (d)(4)(A)(iii) of 

2 section 411 of the Tariff Act of 1930; 

3 ‘‘(ii) identifying the components of the 

4 National Customs Automation Program 

5 specified in subsection (a)(2) of such sec6 tion 411 that have not been implemented; 

7 ‘‘(iii) identifying the priorities of the 

8 Agency for incorporating entry summary 

9 data elements, cargo manifest data ele10 ments, and cargo financial data elements 

11 into the Automated Commercial Environ12 ment computer system; 

13 ‘‘(iv) describing the objectives, plans, 

14 and deadlines of the Agency for imple15 menting the components identified under 

16 clause (ii) and the priorities identified 

17 under cause (iii) not later than September 

18 30, 2016; and 

19 ‘‘(v) describing any additional compo20 nent of the National Customs Automation 

21 Program initiated by the Commissioner to 

22 complete the development, establishment, 

23 and implementation of the Automated 

24 Commercial Environment computer sys25 tem. 


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1 ‘‘(B) UPDATE OF REPORTS.—Not later 

2 than June 30, 2014, and every 180 days there3 after, the Commissioner shall submit to the 

4 Committee on Appropriations and the Com5 mittee on Finance of the Senate and the Com6 mittee on Appropriations and the Committee on 

7 Ways and Means of the House of Representa8 tives an updated report addressing each of the 

9 matters referred to in subparagraph (A).’’. 

10 (c) GOVERNMENT ACCOUNTABILITY OFFICE RE11 PORT.—Not later than one year after the date of the en12 actment of this Act, the Comptroller General of the United 

13 States shall submit to the Committee on Appropriations 

14 and the Committee on Finance of the Senate and the 

15 Committee on Appropriations and the Committee on Ways 

16 and Means of the House of Representatives a report— 

17 (1) evaluating the cost and effectiveness of the 

18 efforts of the U.S. Customs and Border Protection 

19 Agency to complete the development, establishment, 

20 and implementation of the Automated Commercial 

21 Environment computer system; 

22 (2) assessing the extent to which any additional 

23 functionality may be added into the Automated 

24 Commercial Environment computer system at a rea25 sonable cost; and 


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1 (3) assessing the progress of other Federal 

2 agencies in accessing and utilizing the Automated 

3 Commercial Environment computer system. 

4 SEC. 207. INTERNATIONAL TRADE DATA SYSTEM. 

5 (a) INFORMATION TECHNOLOGY INFRASTRUC6 TURE.—Section 411(d) of the Tariff Act of 1930 (19 

7 U.S.C. 1411(d)) is amended— 

8 (1) by redesignating paragraphs (4) through 

9 (7) as paragraphs (5) through (8), respectively; and 

10 (2) by inserting after paragraph (3) the fol11 lowing: 

12 ‘‘(4) INFORMATION TECHNOLOGY INFRASTRUC13 TURE.— 

14 ‘‘(A) IN GENERAL.—The Secretary shall 

15 work with the head of each agency participating 

16 in the ITDS and the Interagency Steering 

17 Committee to ensure that each such agency— 

18 ‘‘(i) develops and maintains the nec19 essary information technology infrastruc20 ture to support the operation of the ITDS 

21 and to submit all data to the ITDS elec22 tronically; 

23 ‘‘(ii) enters into a memorandum of 

24 understanding, or takes such other action 

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1 tion sharing between the agency and the 

2 U.S. Customs and Border Protection 

3 Agency necessary for the operation and 

4 maintenance of the ITDS; and 

5 ‘‘(iii) not later than June 30, 2014, 

6 identifies and transmits to the Commis7 sioner of U.S. Customs and Border Protec8 tion the admissibility criteria and data ele9 ments required by the agency to authorize 

10 the release of cargo by the U.S. Customs 

11 and Border Protection Agency for incorpo12 ration into the operational functionality of 

13 the Automated Commercial Environment 

14 computer system. 

15 ‘‘(B) RULE OF CONSTRUCTION.—Nothing 

16 in this paragraph shall be construed to require 

17 any action to be taken that would compromise 

18 an ongoing law enforcement investigation or na19 tional security.’’. 

20 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

21 13031(f)(5) of the Consolidated Omnibus Budget Rec22 onciliation Act of 1985 (19 U.S.C. 58c(f)(5)), as amended 

23 by section 206(a), is further amended by striking subpara24 graph (C) and inserting the following: 


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1 ‘‘(C) There are authorized to be appropriated to the 

2 Secretary of the Treasury from amounts available in the 

3 Account $25,000,000 for each of fiscal years 2014 

4 through 2018, to remain available until expended, to carry 

5 out the provisions of section 411(d)(4) of the Tariff Act 

6 of 1930.’’. 

7 (c) GOVERNMENT ACCOUNTABILITY OFFICE RE8 PORT.—Not later than June 30, 2015, the Comptroller 

9 General of the United States shall submit to the Com10 mittee on Appropriations and the Committee on Finance 

11 of the Senate and the Committee on Appropriations and 

12 the Committee on Ways and Means of the House of Rep13 resentatives a report— 

14 (1) evaluating the development and mainte15 nance of the information technology infrastructure 

16 necessary to support the operations of the Inter17 national Trade Data System; and 

18 (2) assessing the number of memoranda of un19 derstanding and other actions taken by the U.S. 

20 Customs and Border Protection Agency and other 

21 Federal agencies to ensure the sharing of electronic 

22 import and export data. 


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1 SEC. 208. ELECTRONIC SUBMISSION OF PUBLIC COM2 MENTS. 

3 Not later than one year after the date of the enact4 ment of this Act, the Commissioner shall provide— 

5 (1) for the electronic submission and posting of 

6 any public comments solicited by the U.S. Customs 

7 and Border Protection Agency on the Internet 

8 website of the Agency; and 

9 (2) for the prompt posting of public comments 

10 associated with any rulemaking of the Agency on the 

11 Federal Government Internet website for Federal 

12 regulations, www.regulations.gov, or any successor 

13 website. 

14 Subtitle B—Trade Enforcement 

15 CHAPTER 1—COMMERCIAL TARGETING 

16 SEC. 211. COMMERCIAL TARGETING DIVISION AND NA17 TIONAL TARGETING AND ANALYSIS GROUPS. 

18 (a) ESTABLISHMENT OF COMMERCIAL TARGETING

19 DIVISION.— 

20 (1) IN GENERAL.—The Secretary of Homeland 

21 Security shall establish and maintain within the Of22 fice of Trade of the U.S. Customs and Border Pro23 tection Agency, established under section 4 of the 

24 Act of March 3, 1927, as added by section 102, a 

25 Commercial Targeting Division. 


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1 (2) COMPOSITION.—The Commercial Targeting 

2 Division shall be composed of— 

3 (A) headquarters personnel led by an Ex4 ecutive Director, who shall report to the Assist5 ant Commissioner for Trade; and 

6 (B) individual National Targeting and 

7 Analysis Groups, each led by a Director who 

8 shall report to the Executive Director of the 

9 Commercial Targeting Division. 

10 (3) DUTIES.—The Commercial Targeting Divi11 sion shall be dedicated— 

12 (A) to the development and conduct of 

13 commercial targeting with respect to cargo des14 tined for the United States in accordance with 

15 subsection (c); and 

16 (B) to issuing Trade Alerts described in 

17 subsection (d). 

18 (b) NATIONAL TARGETING AND ANALYSIS

19 GROUPS.— 

20 (1) IN GENERAL.—The Commissioner shall de21 termine the priorities of the National Targeting and 

22 Analysis Groups referred to in subsection (a)(2)(B), 

23 to include the enforcement, with respect to the im24 portation of merchandise into the United States, 

25 of— 


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1 (A) intellectual property rights; 

2 (B) health and safety laws and regulations; 

3 (C) agriculture-related laws and regula4 tions; 

5 (D) textile- and apparel-related laws and 

6 regulations; 

7 (E) general revenue laws and regulations; 

8 and 

9 (F) non-general revenue laws and regula10 tions, including with respect to antidumping 

11 and countervailing duties. 

12 (c) COMMERCIAL TARGETING.—In carrying out its 

13 duties with respect to commercial targeting, the Commer14 cial Targeting Division shall— 

15 (1) establish targeting methodologies and 

16 standards for— 

17 (A) assessing the risk that cargo destined 

18 for the United States may violate the customs 

19 and trade laws of the United States; and 

20 (B) issuing, as appropriate, Trade Alerts 

21 described in subsection (d); 

22 (2) to the extent practicable and otherwise au23 thorized by law, use, to administer the methodologies 

24 and standards established under paragraph (1)— 

25 (A) publicly available information; 


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1 (B) information available from the Auto2 mated Commercial System, the Automated 

3 Commercial Environment computer system, the 

4 Automated Targeting System, the Automated 

5 Export System, the International Trade Data 

6 System, the TECS (formerly known as the 

7 ‘‘Treasury Enforcement Communications Sys8 tem’’), and the case management system of the 

9 U.S. Immigration and Customs Enforcement 

10 Agency, and any successors to those systems; 

11 and 

12 (C) information made available to the 

13 Commercial Targeting Division, including infor14 mation provided by private sector entities; and 

15 (3) coordinate targeting efforts with other Fed16 eral agencies with authority to detain and release 

17 merchandise entering the United States. 

18 (d) TRADE ALERTS.— 

19 (1) ISSUANCE.—Based upon the application of 

20 the targeting methodologies and standards estab21 lished under subsection (c), the Executive Director 

22 of the Commercial Targeting Division and the Direc23 tors of the National Targeting and Analysis Groups 

24 may issue Trade Alerts to port directors providing 

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1 tion, or testing, of specific merchandise if certain 

2 risk-assessment thresholds are met to improve com3 pliance with the customs and trade laws of the 

4 United States and regulations administered by the 

5 U.S. Customs and Border Protection Agency. 

6 (2) DETERMINATIONS NOT TO IMPLEMENT

7 TRADE ALERTS.—A port director may determine not 

8 to follow a Trade Alert issued under paragraph (1) 

9 that requires further inspection, physical examina10 tion, or testing if the port director— 

11 (A) finds that such a determination is jus12 tified by security interests; and 

13 (B) notifies the Trade Facilitation and 

14 Trade Enforcement Division of the Office of 

15 Field Operations of the determination not to 

16 follow the Trade Alert and the reasons for the 

17 determination not later than 48 hours after 

18 making the determination. 

19 (3) SUMMARY OF DETERMINATIONS NOT TO IM20 PLEMENT.—The Trade Facilitation and Trade En21 forcement Division shall— 

22 (A) compile an annual summary of all de23 terminations by port directors under paragraph 

24 (2) and the reasons for those determinations; 


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1 (B) conduct an evaluation of the utilization 

2 of Trade Alerts issued under paragraph (1); 

3 and 

4 (C) submit the summary compiled under 

5 subparagraph (A) and the evaluation conducted 

6 under subparagraph (B) to the Committee on 

7 Finance of the Senate and the Committee on 

8 Ways and Means of the House of Representa9 tives not later than December 31 of each year. 

10 (4) INSPECTION DEFINED.—In this subsection, 

11 the term ‘‘inspection’’ means the comprehensive 

12 evaluation process used by the U.S. Customs and 

13 Border Protection Agency, other than physical ex14 amination or testing, to permit the entry of mer15 chandise into the United States, or the clearance of 

16 merchandise for transportation in bond through the 

17 United States, for purposes of— 

18 (A) assessing duties; 

19 (B) identifying restricted or prohibited 

20 items; and 

21 (C) ensuring compliance with the customs 

22 and trade laws of the United States and regula23 tions administered by the Agency. 

24 (e) USE OF TRADE DATA FOR COMMERCIAL EN25 FORCEMENT PURPOSES.—Section 343(a)(3)(F) of the 


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1 Trade Act of 2002 (19 U.S.C. 2071 note) is amended to 

2 read as follows: 

3 ‘‘(F) The information collected pursuant to 

4 the regulations shall be used for ensuring avia5 tion, maritime, and surface transportation safe6 ty and security, and may be used for commer7 cial enforcement purposes. A person that pro8 vides information pursuant to the regulations 

9 that is used to detect a violation of any statute 

10 or regulation relating to commercial enforce11 ment shall be subject to commercial penalties 

12 pursuant to that statute or regulation only if 

13 the person is found to have committed fraud in 

14 providing the information.’’. 

15 SEC. 212. ANNUAL ILLEGAL DRUG CONTROL LAW EN16 FORCEMENT STRATEGY. 

17 (a) IN GENERAL.—Section 123 of the Customs and 

18 Trade Act of 1990 (19 U.S.C. 2083) is amended to read 

19 as follows: 

20 ‘‘SEC. 123. ANNUAL ILLEGAL DRUG CONTROL LAW EN21 FORCEMENT STRATEGY. 

22 ‘‘(a) REPORTS ON VIOLATION ESTIMATES.—Not 

23 later than one year after the date of the enactment of the 

24 Trade Facilitation and Trade Enforcement Reauthoriza25 tion Act of 2013, and annually thereafter, the CommisVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00102 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 sioner of U.S. Customs and Border Protection and the Di2 rector of U.S. Immigration and Customs Enforcement 

3 shall jointly develop and submit to the chairperson and 

4 ranking member of the Committee on Finance of the Sen5 ate and of the Committee on Ways and Means of the 

6 House of Representatives (in this section referred to as 

7 the ‘Committees’) in accordance with subsection (d) a re8 port that contains an estimate of— 

9 ‘‘(1) the number and extent of violations of the 

10 illegal drug control laws specified in subsection (b) 

11 that are likely to occur during the year following the 

12 report; and 

13 ‘‘(2) the relative incidence of the violations de14 scribed in paragraph (1) among the various United 

15 States ports of entry and customs regions within the 

16 customs territory of the United States during the 

17 year preceding the report. 

18 ‘‘(b) ILLEGAL DRUG CONTROL LAWS SPECIFIED.— 

19 The Commissioner of U.S. Customs and Border Protec20 tion and the Director of U.S. Immigration and Customs 

21 Enforcement, after consultation with the Committees— 

22 ‘‘(1) shall, not later than 180 days after the 

23 date of the enactment of the Trade Facilitation and 

24 Trade Enforcement Reauthorization Act of 2013, 

25 prepare a list of those provisions of the illegal drug 


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1 control laws of the United States with respect to 

2 which the U.S. Customs and Border Protection 

3 Agency and the U.S. Immigration and Customs En4 forcement Agency have enforcement responsibility 

5 and to which the reports required by subsection (a) 

6 will apply; and 

7 ‘‘(2) may periodically update the list developed 

8 under paragraph (1), as warranted. 

9 ‘‘(c) ENFORCEMENT STRATEGY.—Not later than 90 

10 days after submitting a report under subsection (a), the 

11 Commissioner of U.S. Customs and Border Protection and 

12 the Director of U.S. Immigration and Customs Enforce13 ment shall jointly— 

14 ‘‘(1) develop or update a strategy for enforcing 

15 the illegal drug control laws specified in subsection 

16 (b) in a nationally uniform manner and addressing 

17 the violations estimated in the report during the pe18 riod covered by the report; and 

19 ‘‘(2) submit to the chairperson and ranking 

20 member of each of the Committees a confidential re21 port setting forth the details of the strategy de22 scribed in paragraph (1). 

23 ‘‘(d) CONFIDENTIALITY.—The contents of any report 

24 submitted to the chairperson and ranking member of each 

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1 fidential and the disclosure of the contents is restricted 

2 to— 

3 ‘‘(1) officers and employees of the United 

4 States designated by the Commissioner of U.S. Cus5 toms and Border Protection or the Director of U.S. 

6 Customs and Immigration Enforcement to have ac7 cess to the contents of the report; 

8 ‘‘(2) the chairperson and ranking member of 

9 each of the Committees; and 

10 ‘‘(3) such Members of Congress and staff of 

11 such Members as the chairperson or ranking mem12 ber of either of the Committees may authorize to 

13 have access to the contents of the report.’’. 

14 (b) CONFORMING AMENDMENT.—The table of con15 tents for the Customs and Trade Act of 1990 is amended 

16 by striking the item relating to section 123 and inserting 

17 the following: 

‘‘Sec. 123. Annual illegal drug control law enforcement strategy.’’. 

18 SEC. 213. REPORT ON OVERSIGHT OF REVENUE PROTEC19 TION AND ENFORCEMENT MEASURES BY THE 

20 INSPECTOR GENERAL. 

21 Not later than June 30, 2015, the Inspector General 

22 of the Department of the Treasury shall submit to the 

23 Committee on Finance of the Senate and the Committee 

24 on Ways and Means of the House of Representatives a 

25 report assessing the following: 


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1 (1) The effectiveness of the measures taken by 

2 the U.S. Customs and Border Protection Agency 

3 with respect to revenue protection, including— 

4 (A) the collection of countervailing and 

5 antidumping duties; 

6 (B) the assessment and collection of com7 mercial fines and penalties; and 

8 (C) the adequacy of the policies of the 

9 Agency with respect to monitoring and tracking 

10 of merchandise transported in bond and col11 lecting duties, as appropriate. 

12 (2) The effectiveness of actions taken by the 

13 Agency to measure accountability and performance 

14 with respect to revenue protection. 

15 (3) The number of entries resulting in the un16 derpayment of duties and a summary of the actions 

17 taken to address the underpayment of duties. 

18 (4) The effectiveness of training with respect to 

19 the collection of duties provided for personnel of the 

20 Agency. 

21 SEC. 214. REPORT ON SECURITY AND REVENUE MEASURES 

22 WITH RESPECT TO MERCHANDISE TRANS23 PORTED IN BOND. 

24 (a) IN GENERAL.—Not later than December 31 of 

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1 rity and the Secretary of the Treasury shall jointly submit 

2 to the Committee on Finance of the Senate and the Com3 mittee on Ways and Means of the House of Representa4 tives a report on efforts undertaken by the U.S. Customs 

5 and Border Protection Agency to ensure the secure trans6 portation of merchandise in bond through the United 

7 States and the collection of revenue owed upon the entry 

8 of such merchandise into the United States for consump9 tion. 

10 (b) CONTENTS.—The report required by subsection 

11 (a) shall include information, for the 2 fiscal years pre12 ceding the submission of the report, on— 

13 (1) the overall number of entries of merchan14 dise for transportation in bond through the United 

15 States; 

16 (2) the ports at which merchandise arrives in 

17 the United States for transportation in bond and at 

18 which records of the arrival of such merchandise are 

19 generated; 

20 (3) the average time taken to reconcile such 

21 records with the records at the final destination of 

22 the merchandise in the United States to demonstrate 

23 that the merchandise reaches its final destination or 

24 is reexported; 


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1 (4) the average time taken to transport mer2 chandise in bond from the port at which the mer3 chandise arrives in the United States to the final 

4 destination of the merchandise in the United States; 

5 (5) the total amount of duties, taxes, and fees 

6 owed with respect to shipments of merchandise 

7 transported in bond and the total amount of such 

8 duties, taxes, and fees paid; 

9 (6) the total number of notifications by carriers 

10 of merchandise being transported in bond that the 

11 destination of the merchandise has changed while in 

12 transit in the United States; and 

13 (7) the number of entries that remain 

14 unreconciled. 

15 SEC. 215. IMPORTER OF RECORD PROGRAM. 

16 (a) ESTABLISHMENT.—Not later than 180 days after 

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

18 Homeland Security shall establish an importer of record 

19 program to assign and maintain importer of record num20 bers. 

21 (b) REQUIREMENTS.—The Secretary of Homeland 

22 Security shall ensure that, as part of the importer of 

23 record program, the U.S. Customs and Border Protection 

24 Agency— 


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1 (1) develops criteria that importers must meet 

2 in order to obtain an importer of record number; 

3 (2) provides a process by which importers are 

4 assigned importer of record numbers; 

5 (3) maintains a centralized database of im6 porter of record numbers, including a history of im7 porter of record numbers associated with each im8 porter; 

9 (4) evaluates the accuracy of the database on a 

10 regular basis; and 

11 (5) takes measures to ensure that duplicate im12 porter of record numbers are not issued to the same 

13 importer. 

14 (c) REPORT.—Not later than one year after the date 

15 of the enactment of this Act, the Secretary of Homeland 

16 Security shall submit to the Committee on Finance of the 

17 Senate and the Committee on Ways and Means of the 

18 House of Representatives a report on the importer of 

19 record program established under subsection (a). 

20 (d) NUMBER DEFINED.—In this subsection, the term 

21 ‘‘number’’, with respect to an importer of record, means 

22 a filing identification number described in section 24.5 of 

23 title 19, Code of Federal Regulations (or any cor24 responding similar regulation). 


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1 CHAPTER 2—IMPORT HEALTH AND 

2 SAFETY 

3 SEC. 221. INTERAGENCY IMPORT SAFETY WORKING GROUP. 

4 (a) ESTABLISHMENT.—There is established an inter5 agency Import Safety Working Group. 

6 (b) MEMBERSHIP.—The interagency Import Safety 

7 Working Group shall consist of the following officials or 

8 their designees: 

9 (1) The Secretary of Homeland Security, who 

10 shall serve as the Chair. 

11 (2) The Secretary of Health and Human Serv12 ices, who shall serve as the Vice Chair. 

13 (3) The Secretary of the Treasury. 

14 (4) The Secretary of Commerce. 

15 (5) The Secretary of Agriculture. 

16 (6) The United States Trade Representative. 

17 (7) The Director of the Office of Management 

18 and Budget. 

19 (8) The Commissioner of Food and Drugs. 

20 (9) The Commissioner of U.S. Customs and 

21 Border Protection. 

22 (10) The Chairman of the Consumer Product 

23 Safety Commission. 

24 (11) The Director of U.S. Immigration and 

25 Customs Enforcement. 


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1 (12) The head of any other Federal agency des2 ignated by the President to participate in the inter3 agency Import Safety Working Group, as appro4 priate. 

5 (c) DUTIES.—The duties of the interagency Import 

6 Safety Working Group shall include— 

7 (1) consulting on the development of the joint 

8 import safety rapid response plan required by sec9 tion 222; 

10 (2) periodically evaluating the adequacy of the 

11 plans, practices, and resources of the Federal Gov12 ernment dedicated to ensuring the safety of mer13 chandise imported in the United States and the ex14 peditious entry of such merchandise, including— 

15 (A) minimizing the duplication of efforts 

16 among agencies the heads of which are mem17 bers of the interagency Import Safety Working 

18 Group and ensuring the compatibility of the 

19 policies and regulations of those agencies; and 

20 (B) recommending additional administra21 tive actions, as appropriate, designed to ensure 

22 the safety of merchandise imported into the 

23 United States and the expeditious entry of such 

24 merchandise and considering the impact of 

25 those actions on private sector entities; 


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1 (3) reviewing the engagement and cooperation 

2 of foreign governments and foreign manufacturers in 

3 facilitating the inspection and certification, as appro4 priate, of such merchandise to be imported into the 

5 United States and the facilities producing such mer6 chandise to ensure the safety of the merchandise 

7 and the expeditious entry of the merchandise into 

8 the United States; and 

9 (4) identifying best practices, in consultation 

10 with private sector entities as appropriate, to assist 

11 United States importers in taking all appropriate 

12 steps to ensure the safety of merchandise imported 

13 into the United States, including with respect to— 

14 (A) the inspection of manufacturing facili15 ties in foreign countries; 

16 (B) the inspection of merchandise destined 

17 for the United States before exportation from a 

18 foreign country or before distribution in the 

19 United States; and 

20 (C) the protection of the international sup21 ply chain (as defined in section 2 of the Secu22 rity and Accountability For Every Port Act of 

23 2006 (6 U.S.C. 901)); 

24 (5) identifying best practices to assist Federal, 

25 State, and local governments and agencies, and port 


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1 authorities, to improve communication and coordina2 tion among such agencies and authorities with re3 spect to ensuring the safety of merchandise imported 

4 into the United States and the expeditious entry of 

5 such merchandise; and 

6 (6) otherwise identifying appropriate steps to 

7 increase the accountability of United States import8 ers and the engagement of foreign government agen9 cies with respect to ensuring the safety of merchan10 dise imported into the United States and the expedi11 tious entry of such merchandise. 

12 SEC. 222. JOINT IMPORT SAFETY RAPID RESPONSE PLAN. 

13 (a) IN GENERAL.—Not later than December 31, 

14 2014, the Secretary of Homeland Security, in consultation 

15 with the interagency Import Safety Working Group, shall 

16 develop a plan (to be known as the ‘‘joint import safety 

17 rapid response plan’’) that sets forth protocols and defines 

18 practices for the U.S. Customs and Border Protection 

19 Agency to use— 

20 (1) in taking action in response to, and coordi21 nating Federal responses to, an incident in which 

22 cargo destined for or merchandise entering the 

23 United States has been identified as posing a threat 

24 to the health or safety of consumers in the United 

25 States; and 


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1 (2) in recovering from or mitigating the effects 

2 of actions and responses to an incident described in 

3 paragraph (1). 

4 (b) CONTENTS.—The joint import safety rapid re5 sponse plan shall address— 

6 (1) the statutory and regulatory authorities and 

7 responsibilities of the U.S. Customs and Border Pro8 tection Agency and other Federal agencies in re9 sponding to an incident described in subsection 

10 (a)(1); 

11 (2) the protocols and practices to be used by 

12 the Agency when taking action in response to, and 

13 coordinating Federal responses to, such an incident; 

14 (3) the measures to be taken by the Agency and 

15 other Federal agencies in recovering from or miti16 gating the effects of actions taken in response to 

17 such an incident after the incident to ensure the re18 sumption of the entry of merchandise into the 

19 United States; and 

20 (4) exercises that the Agency may conduct in 

21 conjunction with Federal, State, and local agencies, 

22 and private sector entities, to simulate responses to 

23 such an incident. 

24 (c) UPDATES OF PLAN.—The Secretary of Homeland 

25 Security shall review and update the joint import safety 


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1 rapid response plan, as appropriate, after conducting exer2 cises under subsection (d). 

3 (d) IMPORT HEALTH AND SAFETY EXERCISES.— 

4 (1) IN GENERAL.—The Secretary of Homeland 

5 Security and the Commissioner shall periodically en6 gage in the exercises referred to in subsection (b)(4), 

7 in conjunction with Federal, State, and local agen8 cies and private sector entities, as appropriate, to 

9 test and evaluate the protocols and practices identi10 fied in the joint import safety rapid response plan at 

11 United States ports of entry. 

12 (2) REQUIREMENTS FOR EXERCISES.—In con13 ducting exercises under paragraph (1), the Secretary 

14 and the Commissioner shall— 

15 (A) make allowance for the resources, 

16 needs, and constraints of United States ports of 

17 entry of different sizes in representative geo18 graphic locations across the United States; 

19 (B) base evaluations on current risk as20 sessments of merchandise entering the United 

21 States at representative United States ports of 

22 entry located across the United States; 

23 (C) ensure that such exercises are con24 ducted in a manner consistent with the Na25 tional Incident Management System, the NaVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00115 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 tional Response Plan, the National Infrastruc2 ture Protection Plan, the National Prepared3 ness Guidelines, the Maritime Transportation 

4 System Security Plan, and other such national 

5 initiatives of the Department of Homeland Se6 curity, as appropriate; and 

7 (D) develop metrics with respect to the re8 sumption of the entry of merchandise into the 

9 United States after an incident described in 

10 subsection (a)(1). 

11 (3) REQUIREMENTS FOR TESTING AND EVALUA12 TION.—The Secretary and the Commissioner shall 

13 ensure that the testing and evaluation carried out in 

14 conducting exercises under paragraph (1)— 

15 (A) are performed using clear and objec16 tive performance measures; and 

17 (B) result in the identification of specific 

18 recommendations or best practices for respond19 ing to an incident described in subsection 

20 (a)(1). 

21 (4) DISSEMINATION OF RECOMMENDATIONS

22 AND BEST PRACTICES.—The Secretary and the 

23 Commissioner shall— 

24 (A) share the recommendations or best 

25 practices identified under paragraph (3)(B) 


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1 among the members of the interagency Import 

2 Safety Working Group and with, as appro3 priate— 

4 (i) State, local, and tribal govern5 ments; 

6 (ii) foreign governments; and 

7 (iii) private sector entities; and 

8 (B) use such recommendations and best 

9 practices to update the joint import safety rapid 

10 response plan. 

11 SEC. 223. TRAINING. 

12 The Commissioner shall ensure that personnel of the 

13 U.S. Customs and Border Protection Agency assigned to 

14 United States ports of entry are trained to effectively ad15 minister the provisions of this chapter and to otherwise 

16 assist in ensuring the safety of merchandise imported into 

17 the United States and the expeditious entry of such mer18 chandise. 


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1 CHAPTER 3—IMPORT-RELATED PROTEC2 TION OF INTELLECTUAL PROPERTY 

3 RIGHTS 

4 Subchapter A—National Intellectual 

5 Property Rights Coordination Center 

6 SEC. 231. NATIONAL INTELLECTUAL PROPERTY RIGHTS 

7 COORDINATION CENTER. 

8 (a) ESTABLISHMENT.—The Secretary of Homeland 

9 Security shall— 

10 (1) establish within the U.S. Immigration and 

11 Customs Enforcement Agency a National Intellec12 tual Property Rights Coordination Center; and 

13 (2) appoint an Assistant Director to head the 

14 National Intellectual Property Rights Coordination 

15 Center. 

16 (b) DUTIES.—The Assistant Director of the National 

17 Intellectual Property Rights Coordination Center shall— 

18 (1) coordinate the investigation of sources of 

19 merchandise that infringes intellectual property 

20 rights to identify organizations that produce, smug21 gle, or distribute such merchandise; 

22 (2) coordinate training with other domestic and 

23 international law enforcement agencies on investiga24 tive best practices— 


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1 (A) to develop and expand the capability of 

2 such agencies to enforce intellectual property 

3 rights; and 

4 (B) to develop metrics to assess whether 

5 the training improved enforcement of intellec6 tual property rights; 

7 (3) coordinate, with the U.S. Customs and Bor8 der Protection Agency, activities conducted by the 

9 United States to prevent the importation or expor10 tation of merchandise that infringes intellectual 

11 property rights; 

12 (4) support the international interdiction of 

13 merchandise destined for the United States that in14 fringes intellectual property rights; 

15 (5) collect and integrate information regarding 

16 infringements of intellectual property rights from do17 mestic and international law enforcement agencies 

18 and other non-Federal sources; 

19 (6) develop a single platform or portal to re20 ceive information regarding infringements of intellec21 tual property rights from such agencies and other 

22 sources and a database to organize and search that 

23 information; 


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1 (7) disseminate information regarding infringe2 ments of intellectual property rights to other Federal 

3 agencies, as appropriate; 

4 (8) develop and implement risk-based alert sys5 tems to be shared with the U.S. Customs and Bor6 der Protection Agency to improve the targeting of 

7 persons that repeatedly infringe intellectual property 

8 rights; 

9 (9) coordinate with the United States attorneys’ 

10 offices to develop expertise in, and assist with the in11 vestigation and prosecution of, crimes relating to the 

12 infringement of intellectual property rights; and 

13 (10) carry out such other duties as the Sec14 retary of Homeland Security may assign. 

15 (c) COORDINATION WITH OTHER AGENCIES.—In 

16 carrying out the duties described in subsection (b), the As17 sistant Director of the National Intellectual Property 

18 Rights Coordination Center shall coordinate with— 

19 (1) the U.S. Customs and Border Protection 

20 Agency; 

21 (2) the Food and Drug Administration; 

22 (3) the Department of Justice; 

23 (4) the Department of Commerce, including the 

24 United States Patent and Trademark Office; 

25 (5) the United States Postal Inspection Service; 


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1 (6) the Office of the United States Trade Rep2 resentative; 

3 (7) any Federal, State, local, or international 

4 law enforcement agencies the Director of U.S. Immi5 gration and Customs Enforcement considers appro6 priate; and 

7 (8) any other entities the Director considers ap8 propriate. 

9 (d) PRIVATE SECTOR OUTREACH.— 

10 (1) IN GENERAL.—The Assistant Director of 

11 the National Intellectual Property Rights Coordina12 tion Center shall work with the U.S. Customs and 

13 Border Protection Agency and other Federal agen14 cies to conduct outreach to private sector entities to 

15 determine trends in and methods of infringing intel16 lectual property rights. 

17 (2) INFORMATION SHARING.—The Assistant Di18 rector shall share information and best practices 

19 with respect to the enforcement of intellectual prop20 erty rights with private sector entities, as appro21 priate, to coordinate public and private sector efforts 

22 to combat the infringement of intellectual property 

23 rights. 


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1 Subchapter B—Amendments to the Tariff Act 

2 of 1930 

3 SEC. 241. PROVISION TO RIGHTS OWNERS OF INFORMA4 TION ABOUT AND SAMPLES OF MERCHAN5 DISE SUSPECTED OF INFRINGING TRADE6 MARKS OR COPYRIGHTS. 

7 The Tariff Act of 1930 is amended by inserting after 

8 section 526 (19 U.S.C. 1526) the following: 

9 ‘‘SEC. 526A. PROVISION TO RIGHTS OWNERS OF INFORMA10 TION ABOUT AND SAMPLES OF MERCHAN11 DISE SUSPECTED OF INFRINGING TRADE12 MARKS OR COPYRIGHTS. 

13 ‘‘(a) IN GENERAL.—Subject to subsections (c) and 

14 (d), if the Commissioner of U.S. Customs and Border Pro15 tection suspects that merchandise is being imported into 

16 the United States in violation of section 526 or section 

17 602, 1201(a)(1), or 1201(b)(1) of title 17, United States 

18 Code, and determines that the examination or testing of 

19 the merchandise by a person described in subsection (b) 

20 would assist the Commissioner in determining if the mer21 chandise is being imported in violation of that section, the 

22 Commissioner, to permit the person to conduct the exam23 ination and testing— 

24 ‘‘(1) shall provide to the person information 

25 that appears on the merchandise and its packaging 


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1 and labels, including unredacted images of the mer2 chandise and its packaging and labels; and 

3 ‘‘(2) may, subject to any applicable bonding re4 quirements, provide to the person unredacted sam5 ples of the merchandise. 

6 ‘‘(b) PERSON DESCRIBED.—A person described in 

7 this subsection is— 

8 ‘‘(1) in the case of merchandise suspected of 

9 being imported in violation of section 526, the owner 

10 of the trademark suspected of being copied or simu11 lated by the merchandise; 

12 ‘‘(2) in the case of merchandise suspected of 

13 being imported in violation of section 602 of title 17, 

14 United States Code, the owner of the copyright sus15 pected of being infringed by the merchandise; 

16 ‘‘(3) in the case of merchandise suspected of 

17 being primarily designed or produced for the pur18 pose of circumventing a technological measure that 

19 effectively controls access to a work protected under 

20 that title, and being imported in violation of section 

21 1201(a)(2) of that title, the owner of a copyright in 

22 the work; and 

23 ‘‘(4) in the case of merchandise suspected of 

24 being primarily designed or produced for the pur25 pose of circumventing protection afforded by a techVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00123 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 nological measure that effectively protects a right of 

2 an owner of a copyright in a work or a portion of 

3 a work, and being imported in violation of section 

4 1201(b)(1) of that title, the owner of the copyright. 

5 ‘‘(c) LIMITATION.—Subsection (a) applies only with 

6 respect to merchandise suspected of infringing a trade7 mark or copyright that is recorded with the U.S. Customs 

8 and Border Protection Agency. 

9 ‘‘(d) EXCEPTION.—The Commissioner of U.S. Cus10 toms and Border Protection may not provide under sub11 section (a) information, photographs, or samples to a per12 son described in subsection (b) if providing such informa13 tion, photographs, or samples would compromise an ongo14 ing law enforcement investigation or national security.’’. 

15 SEC. 242. ENFORCEMENT BY THE U.S. CUSTOMS AND BOR16 DER PROTECTION AGENCY OF WORKS FOR 

17 WHICH A COPYRIGHT REGISTRATION IS 

18 PENDING. 

19 Not later than 180 days after the date of the enact20 ment of this Act, the Secretary of Homeland Security shall 

21 establish a process pursuant to which the Commissioner 

22 shall enforce a copyright for which the owner has sub23 mitted an application for registration under title 17, 

24 United States Code, with the Copyright Office of the Li25 brary of Congress to the same extent and in the same 


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1 manner as if the copyright were registered with the Copy2 right Office, including by sharing information, images, 

3 and samples of merchandise suspected of infringing the 

4 copyright under section 526A of the Tariff Act of 1930, 

5 as added by section 241. 

6 SEC. 243. SEIZURE OF CIRCUMVENTION DEVICES. 

7 (a) IN GENERAL.—Section 596(c)(2) of the Tariff 

8 Act of 1930 (19 U.S.C. 1595a(c)(2)) is amended— 

9 (1) in subparagraph (E), by striking ‘‘or’’; 

10 (2) in subparagraph (F), by striking the period 

11 and inserting ‘‘; or’’; and 

12 (3) by adding at the end the following: 

13 ‘‘(G) the U.S. Customs and Border Protec14 tion Agency determines it is a technology, prod15 uct, service, device, component, or part thereof 

16 the importation of which is prohibited under 

17 subsection (a)(2) or (b)(1) of section 1201 of 

18 title 17, United States Code.’’. 

19 (b) PUBLICATION.— 

20 (1) IN GENERAL.—Except as provided in para21 graph (2), not later than 30 days after seizing mer22 chandise pursuant to subparagraph (G) of section 

23 596(c)(2) of the Tariff Act of 1930, as added by 

24 subsection (a), the Commissioner shall publish on 

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1 der Protection Agency information regarding the 

2 merchandise seized to permit any person to identify 

3 the merchandise and determine whether the mer4 chandise is— 

5 (A) a technology, product, service, device, 

6 component, or part thereof described in section 

7 1201(a)(2) of title 17, United States Code, 

8 that— 

9 (i) is primarily designed or produced 

10 for the purpose of circumventing a techno11 logical measure that effectively controls ac12 cess to a work for which the person has a 

13 copyright that is registered under title 17, 

14 United States Code, or that is otherwise 

15 recorded with the Agency; 

16 (ii) has only limited commercially sig17 nificant purpose or use other than to cir18 cumvent such a technological measure; or 

19 (iii) is marketed for use in circum20 venting such a technological measure; or 

21 (B) a technology, product, service, device, 

22 component, or part thereof described in section 

23 1201(b)(1) of title 17, United States Code, 

24 that— 


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1 (i) is primarily designed or produced 

2 for the purpose of circumventing protection 

3 afforded by a technological measure that 

4 effectively protects a right of the person in 

5 a work or a portion of a work that is reg6 istered under title 17, United States Code, 

7 or that is otherwise recorded with the 

8 Agency; 

9 (ii) has only limited commercially sig10 nificant purpose or use other than to cir11 cumvent protection afforded by such a 

12 technological measure; or 

13 (iii) is marketed for use in circum14 venting protection afforded such a techno15 logical measure. 

16 (2) EXCEPTION.—The Commissioner may not 

17 publish information under paragraph (1) if pub18 lishing that information would compromise an ongo19 ing law enforcement investigation or national secu20 rity. 

21 (c) APPLICATION.—Not later than 30 days after pub22 lishing the information required under subsection (b) with 

23 respect to seized merchandise, any person that determines 

24 that the seized merchandise is merchandise that infringes 

25 a right of the person as described in subsection (b) (or 


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1 an agent of such a person) may submit to the U.S. Cus2 toms and Border Protection Agency an application that— 

3 (1) identifies the person as a person that holds 

4 such a right (or an agent of such a person); and 

5 (2) requests the information described in sub6 section (d). 

7 (d) DISCLOSURE.—Subject to subsection (f), the 

8 Commissioner shall disclose to a person that submitted an 

9 application described in subsection (c) with respect to 

10 seized merchandise the following information: 

11 (1) The date of importation of the seized mer12 chandise. 

13 (2) The United States port of entry at which 

14 the merchandise was seized. 

15 (3) A description of the merchandise. 

16 (4) The quantity of merchandise seized. 

17 (5) The country of origin of the merchandise. 

18 (6) The name and address of the foreign manu19 facturer of the merchandise. 

20 (7) The name and address of the exporter of 

21 the merchandise. 

22 (8) The name and address of the importer of 

23 the merchandise. 

24 (e) EXPEDITED DISCLOSURE.—Subject to subsection 

25 (f), the Commissioner may, on an expedited basis, disclose 


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1 information pursuant to subsection (d) with respect to 

2 merchandise seized pursuant to subparagraph (G) of sec3 tion 526(c)(2) of the Tariff Act of 1930, as added by sub4 section (a), and with respect to which information is pub5 lished pursuant to subsection (b), to a person that has 

6 previously submitted an application under subsection (c) 

7 with respect to such merchandise. 

8 (f) LIMITATION ON DISCLOSURE.—The Commis9 sioner may not disclose information under subsection (d) 

10 or (e) with respect to merchandise seized pursuant to sub11 paragraph (G) of section 526(c)(2) of the Tariff Act of 

12 1930, as added by subsection (a), until the Commissioner 

13 has made a final determination with respect to whether 

14 the merchandise is a technology, product, service, device, 

15 component, or part thereof the importation of which is 

16 prohibited under subsection (a)(2) or (b)(1) of section 

17 1201 of title 17, United States Code. 

18 Subchapter C—Other Matters 

19 SEC. 251. DEFINITION OF INTELLECTUAL PROPERTY 

20 RIGHTS. 

21 In this subchapter, the term ‘‘intellectual property 

22 rights’’ refers to copyrights, trademarks, and other forms 

23 of intellectual property rights that are enforced by the 

24 U.S. Customs and Border Protection Agency or the U.S. 

25 Immigration and Customs Enforcement Agency. 


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1 SEC. 252. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT 

2 OF INTELLECTUAL PROPERTY RIGHTS. 

3 The Commissioner and the Director of U.S. Immigra4 tion and Customs Enforcement shall include in the joint 

5 strategic plan on trade facilitation and trade enforcement 

6 required by section 123A of the Customs and Trade Act 

7 of 1990, as amended by section 131— 

8 (1) a description of the efforts of the Depart9 ment of Homeland Security to enforce intellectual 

10 property rights; 

11 (2) a list of the 10 United States ports of entry 

12 at which the U.S. Customs and Border Protection 

13 Agency has seized the most merchandise, both by 

14 volume and by value, that infringes intellectual prop15 erty rights during the most recent 2-year period for 

16 which data are available; and 

17 (3) a recommendation for the optimal allocation 

18 of personnel, resources, and technology to ensure 

19 that the U.S. Customs and Border Protection Agen20 cy and the U.S. Immigration and Customs Enforce21 ment Agency are adequately enforcing intellectual 

22 property rights. 

23 SEC. 253. PERSONNEL DEDICATED TO THE ENFORCEMENT 

24 OF INTELLECTUAL PROPERTY RIGHTS. 

25 (a) PERSONNEL OF THE U.S. CUSTOMS AND BORDER

26 PROTECTION AGENCY.—The Commissioner and the DiVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00130 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 rector of U.S. Immigration and Customs Enforcement 

2 shall ensure that sufficient personnel are assigned 

3 throughout the U.S. Customs and Border Protection 

4 Agency and the U.S. Immigration and Customs Enforce5 ment Agency, respectively, who have responsibility for pre6 venting the importation of merchandise that infringes in7 tellectual property rights into the United States. 

8 (b) STAFFING OF NATIONAL INTELLECTUAL PROP9 ERTY RIGHTS COORDINATION CENTER.—The Commis10 sioner shall— 

11 (1) assign not fewer than 3 full-time employees 

12 of the U.S. Customs and Border Protection Agency 

13 to the National Intellectual Property Rights Coordi14 nation Center established under section 231; and 

15 (2) ensure that sufficient personnel are as16 signed to United States ports of entry to carry out 

17 the directives of the Center. 

18 SEC. 254. TRAINING WITH RESPECT TO THE ENFORCEMENT 

19 OF INTELLECTUAL PROPERTY RIGHTS. 

20 (a) TRAINING.—The Commissioner shall ensure that 

21 officers of the U.S. Customs and Border Protection Agen22 cy are trained to effectively detect and identify merchan23 dise destined for the United States that infringes intellec24 tual property rights, including through the use of tech25 nologies identified under subsection (c). 


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1 (b) CONSULTATION WITH PRIVATE SECTOR.—The 

2 Commissioner shall consult with private sector entities to 

3 better identify opportunities for collaboration between the 

4 U.S. Customs and Border Protection Agency and such en5 tities with respect to training for officers of the Agency 

6 to enforce intellectual property rights. 

7 (c) IDENTIFICATION OF NEW TECHNOLOGIES.—In 

8 consultation with private sector entities, the Commissioner 

9 shall identify— 

10 (1) technologies with the cost-effective capa11 bility to detect and identify merchandise at United 

12 States ports of entry that infringes intellectual prop13 erty rights; and 

14 (2) cost-effective programs for training officers 

15 of the U.S. Customs and Border Protection Agency 

16 to use such technologies. 

17 (d) DONATIONS OF TECHNOLOGY.—Not later than 

18 180 days after the date of the enactment of this Act, the 

19 Commissioner shall promulgate regulations to enable the 

20 U.S. Customs and Border Protection Agency to receive do21 nations of hardware, software, equipment, and similar 

22 technologies, and to accept training and other support 

23 services from private sector entities, for the purpose of en24 forcing intellectual property rights. 


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1 SEC. 255. INFORMATION FOR TRAVELERS REGARDING VIO2 LATIONS OF INTELLECTUAL PROPERTY 

3 RIGHTS. 

4 (a) IN GENERAL.—The Secretary of Homeland Secu5 rity shall develop and carry out an educational campaign 

6 to inform travelers entering or leaving the United States 

7 about the legal, economic, and public health and safety 

8 implications of acquiring merchandise that infringes intel9 lectual property rights outside the United States and im10 porting such merchandise into the United States in viola11 tion of United States law. 

12 (b) DECLARATION FORMS.—The Commissioner shall 

13 ensure that all versions of Declaration Form 6059B of the 

14 U.S. Customs and Border Protection Agency, or a suc15 cessor form, printed on or after the date that is 30 days 

16 after the date of the enactment of this Act include a writ17 ten warning to inform travelers arriving in the United 

18 States that importation of merchandise into the United 

19 States that infringes intellectual property rights may sub20 ject travelers to civil or criminal penalties and may pose 

21 serious risks to safety or health. 

22 SEC. 256. INTERNATIONAL COOPERATION AND INFORMA23 TION SHARING. 

24 (a) COOPERATION.—The Secretary of Homeland Se25 curity shall coordinate with the competent law enforce26 ment and customs authorities of foreign countries, includVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00133 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 ing by sharing information relevant to enforcement ac2 tions, to enhance the efforts of United States and such 

3 authorities to enforce intellectual property rights. 

4 (b) TECHNICAL ASSISTANCE.—The Secretary of 

5 Homeland Security shall provide technical assistance to 

6 competent law enforcement and customs authorities of for7 eign countries to enhance the ability of such authorities 

8 to enforce intellectual property rights. 

9 (c) INTERAGENCY COLLABORATION.—The Commis10 sioner and the Director of U.S. Immigration and Customs 

11 Enforcement shall lead interagency efforts to collaborate 

12 with law enforcement and customs authorities of foreign 

13 countries to enforce intellectual property rights. 

14 SEC. 257. SENSE OF CONGRESS REGARDING RECORDATION 

15 PROCESS. 

16 It is the sense of Congress that the Commissioner 

17 should work with the Under Secretary for Intellectual 

18 Property and Director of the United States Patent and 

19 Trademark Office of the Department of Commerce and 

20 the Register of Copyrights of the Library of Congress to 

21 consider a system under which— 

22 (1) a trademark may be recorded with the U.S. 

23 Customs and Border Protection Agency simulta24 neously with the issuance of trademark registration 


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1 by the United States Patent and Trademark Office; 

2 and 

3 (2) a copyright may be recorded with the U.S. 

4 Customs and Border Protection Agency simulta5 neously with the registration of a copyright by the 

6 Register of Copyrights. 

7 SEC. 258. REPORT ON INTELLECTUAL PROPERTY RIGHTS 

8 ENFORCEMENT. 

9 Not later than June 30, 2014, and annually there10 after, the Commissioner and the Director of U.S. Immi11 gration and Customs Enforcement shall jointly submit to 

12 the Committee on Finance of the Senate and the Com13 mittee on Ways and Means of the House of Representa14 tives a report that contains the following: 

15 (1) With respect to the enforcement of intellec16 tual property rights, the following: 

17 (A) The number of referrals from the U.S. 

18 Customs and Border Protection Agency to the 

19 U.S. Immigration and Customs Enforcement 

20 Agency relating to infringements of intellectual 

21 property rights during the preceding year. 

22 (B) The number of investigations relating 

23 to the infringement of intellectual property 

24 rights referred by the U.S. Immigration and 

25 Customs Enforcement Agency to a United 


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1 States Attorney’s office for prosecution and the 

2 United States Attorneys’ offices to which those 

3 investigations were referred. 

4 (C) The number of such investigations ac5 cepted by each such United States Attorney’s 

6 office and the status or outcome of each such 

7 investigation. 

8 (D) The number of such investigations 

9 that resulted in the imposition of civil or crimi10 nal penalties. 

11 (E) A description of the efforts of the U.S. 

12 Custom and Border Protection Agency and the 

13 U.S. Immigration and Customs Enforcement 

14 Agency to improve the success rates of inves15 tigations and prosecutions relating to the in16 fringement of intellectual property rights. 

17 (2) An estimate of the average time required by 

18 the Office of Trade of the U.S. Customs and Border 

19 Protection Agency to respond to a request from port 

20 personnel for advice with respect to whether mer21 chandise detained by the Agency infringed intellec22 tual property rights, distinguished by types of intel23 lectual property rights infringed. 

24 (3) A summary of the outreach efforts of the 

25 U.S. Customs and Border Protection Agency and 


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1 the U.S. Immigration and Customs Enforcement 

2 Agency with respect to— 

3 (A) the interdiction and investigation of, 

4 and the sharing of information between those 

5 Agencies and other Federal agencies to prevent 

6 the infringement of intellectual property rights; 

7 (B) collaboration with private sector enti8 ties— 

9 (i) to identify trends in the infringe10 ment of, and technologies that infringe, in11 tellectual property rights; 

12 (ii) to identify opportunities for en13 hanced training of officers of those Agen14 cies; and 

15 (iii) to develop best practices to en16 force intellectual property rights; and 

17 (C) coordination with foreign governments 

18 and international organizations with respect to 

19 the enforcement of intellectual property rights. 

20 (4) A summary of the efforts of the U.S. Cus21 toms and Border Protection Agency and the U.S. 

22 Immigration and Customs Enforcement Agency to 

23 address the challenges with respect to the enforce24 ment of intellectual property rights presented by 

25 Internet commerce and the transit of small packages 


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1 and an identification of the volume, value, and type 

2 of merchandise seized for infringing intellectual 

3 property rights as a result of such efforts. 

4 (5) A summary of training relating to the en5 forcement of intellectual property rights conducted 

6 under section 254 and expenditures for such train7 ing. 

8 CHAPTER 4—COORDINATION OF TRADE 

9 ENFORCEMENT PRIORITIES 

10 SEC. 261. ESTABLISHMENT OF PRIORITY TRADE ENFORCE11 MENT COORDINATION CENTERS. 

12 The Secretary of Homeland Security may establish 

13 in the U.S. Immigration and Customs Enforcement Agen14 cy additional enforcement coordination centers— 

15 (1) to address the issues relating to trade en16 forcement designated as priority trade issues in the 

17 joint strategic plan on trade facilitation and trade 

18 enforcement required by section 123A of the Cus19 toms and Trade Act of 1990, as added by section 

20 131; and 

21 (2) that are modeled on the structure of the 

22 National Intellectual Property Rights Coordination 

23 Center established under section 231. 


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1 TITLE III—EVASION OF ANTI2 DUMPING AND COUNTER3 VAILING DUTY ORDERS 

4 SEC. 301. SHORT TITLE. 

5 This title may be cited as the ‘‘Enforcing Orders and 

6 Reducing Customs Evasion Act of 2013’’. 

7 SEC. 302. PROCEDURES FOR INVESTIGATING CLAIMS OF 

8 EVASION OF ANTIDUMPING AND COUNTER9 VAILING DUTY ORDERS. 

10 (a) IN GENERAL.—The Tariff Act of 1930 is amend11 ed by inserting after section 516A (19 U.S.C. 1516a) the 

12 following: 

13 ‘‘SEC. 517. PROCEDURES FOR INVESTIGATING CLAIMS OF 

14 EVASION OF ANTIDUMPING AND COUNTER15 VAILING DUTY ORDERS. 

16 ‘‘(a) DEFINITIONS.—In this section: 

17 ‘‘(1) ADMINISTERING AUTHORITY.—The term 

18 ‘administering authority’ has the meaning given that 

19 term in section 771(1). 

20 ‘‘(2) COMMISSIONER.—The term ‘Commis21 sioner’ means the Commissioner of U.S. Customs 

22 and Border Protection, acting pursuant to the dele23 gation by the Secretary of the Treasury of the au24 thority of the Secretary with respect to customs revVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00139 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 enue functions (as defined in section 415 of the 

2 Homeland Security Act of 2002 (6 U.S.C. 215)). 

3 ‘‘(3) COVERED MERCHANDISE.—The term ‘cov4 ered merchandise’ means merchandise that is subject 

5 to— 

6 ‘‘(A) an antidumping duty order issued 

7 under section 736; 

8 ‘‘(B) a finding issued under the Anti9 dumping Act, 1921; or 

10 ‘‘(C) a countervailing duty order issued 

11 under section 706. 

12 ‘‘(4) ENTER; ENTRY.—The terms ‘enter’ and 

13 ‘entry’ refer to the entry, or withdrawal from ware14 house for consumption, of merchandise in the cus15 toms territory of the United States. 

16 ‘‘(5) EVASION.— 

17 ‘‘(A) IN GENERAL.—Except as provided in 

18 subparagraph (B), the term ‘evasion’ refers to 

19 entering covered merchandise into the customs 

20 territory of the United States by means of any 

21 document or electronically transmitted data or 

22 information, written or oral statement, or act 

23 that is material and false, or any omission that 

24 is material, and that results in any cash deposit 

25 or other security or any amount of applicable 


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1 antidumping or countervailing duties being re2 duced or not being applied with respect to the 

3 merchandise. 

4 ‘‘(B) EXCEPTION FOR CLERICAL ERROR.— 

5 ‘‘(i) IN GENERAL.—Except as pro6 vided in clause (ii), the term ‘evasion’ does 

7 not include entering covered merchandise 

8 into the customs territory of the United 

9 States by means of— 

10 ‘‘(I) a document or electronically 

11 transmitted data or information, writ12 ten or oral statement, or act that is 

13 false as a result of a clerical error; or 

14 ‘‘(II) an omission that results 

15 from a clerical error. 

16 ‘‘(ii) PATTERNS OF NEGLIGENT CON17 DUCT.—If the Commissioner determines 

18 that a person has entered covered mer19 chandise into the customs territory of the 

20 United States by means of a clerical error 

21 referred to in subclause (I) or (II) of 

22 clause (i) and that the clerical error is part 

23 of a pattern of negligent conduct on the 

24 part of that person, the Commissioner may 

25 determine, notwithstanding clause (i), that 


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1 the person has entered such covered mer2 chandise into the customs territory of the 

3 United States through evasion. 

4 ‘‘(iii) ELECTRONIC REPETITION OF

5 ERRORS.—For purposes of clause (ii), the 

6 mere nonintentional repetition by an elec7 tronic system of an initial clerical error 

8 does not constitute a pattern of negligent 

9 conduct. 

10 ‘‘(iv) RULE OF CONSTRUCTION.—A 

11 determination by the Commissioner that a 

12 person has entered covered merchandise 

13 into the customs territory of the United 

14 States by means of a clerical error referred 

15 to in subclause (I) or (II) of clause (i) 

16 rather than through evasion shall not be 

17 construed to excuse that person from the 

18 payment of any duties applicable to the 

19 merchandise. 

20 ‘‘(b) INVESTIGATIONS.— 

21 ‘‘(1) IN GENERAL.—Not later than 10 business 

22 days after receiving an allegation described in para23 graph (2) or a referral described in paragraph (3), 

24 the Commissioner shall initiate an investigation if 

25 the Commissioner determines that the information 


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1 provided in the allegation or the referral, as the case 

2 may be, reasonably suggests that covered merchan3 dise has been entered into the customs territory of 

4 the United States through evasion. 

5 ‘‘(2) ALLEGATION DESCRIBED.—An allegation 

6 described in this paragraph is an allegation that a 

7 person has entered covered merchandise into the 

8 customs territory of the United States through eva9 sion that is— 

10 ‘‘(A) filed with the Commissioner by a per11 son that is a producer in the United States of 

12 merchandise— 

13 ‘‘(i) that is like, or in the absence of 

14 like, most similar in characteristics and 

15 uses with, such covered merchandise; or 

16 ‘‘(ii) into which merchandise described 

17 in clause (i) is incorporated; and 

18 ‘‘(B) accompanied by information reason19 ably available to the person that filed the alle20 gation. 

21 ‘‘(3) REFERRAL DESCRIBED.—A referral de22 scribed in this paragraph is information submitted 

23 to the Commissioner by any other Federal agency, 

24 including the Department of Commerce or the 

25 United States International Trade Commission, that 


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1 reasonably suggests that a person has entered cov2 ered merchandise into the customs territory of the 

3 United States through evasion. 

4 ‘‘(4) CONSOLIDATION OF ALLEGATIONS AND

5 REFERRALS.— 

6 ‘‘(A) IN GENERAL.—The Commissioner 

7 may consolidate multiple allegations described 

8 in paragraph (2) and referrals described in 

9 paragraph (3) into a single investigation if the 

10 Commissioner determines it is appropriate to do 

11 so. 

12 ‘‘(B) EFFECT ON TIMING REQUIRE13 MENTS.—If the Commissioner consolidates mul14 tiple allegations or referrals into a single inves15 tigation under subparagraph (A), the date on 

16 which the Commissioner receives the first such 

17 allegation or referral shall be used for purposes 

18 of the requirement under paragraph (1) with 

19 respect to the timing of the initiation of the in20 vestigation. 

21 ‘‘(5) INFORMATION-SHARING TO PROTECT

22 HEALTH AND SAFETY.—If, during the course of con23 ducting an investigation under paragraph (1) with 

24 respect to covered merchandise, the Commissioner 

25 has reason to suspect that such covered merchandise 


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1 may pose a health or safety risk to consumers, the 

2 Commissioner shall provide, as appropriate, informa3 tion to the appropriate Federal agencies for pur4 poses of mitigating the risk. 

5 ‘‘(c) DETERMINATIONS.— 

6 ‘‘(1) IN GENERAL.—Not later than 270 cal7 endar days after the date on which the Commis8 sioner initiates an investigation under subsection (b) 

9 with respect to covered merchandise, the Commis10 sioner shall make a determination, based on sub11 stantial evidence, with respect to whether such cov12 ered merchandise was entered into the customs terri13 tory of the United States through evasion. 

14 ‘‘(2) AUTHORITY TO COLLECT AND VERIFY AD15 DITIONAL INFORMATION.—In making a determina16 tion under paragraph (1) with respect to covered 

17 merchandise, the Commissioner may collect such ad18 ditional information as is necessary to make the de19 termination through such methods as the Commis20 sioner considers appropriate, including by— 

21 ‘‘(A) issuing a questionnaire with respect 

22 to such covered merchandise to— 

23 ‘‘(i) a person that filed an allegation 

24 under paragraph (2) of subsection (b) that 

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1 tion under paragraph (1) of that sub2 section with respect to such covered mer3 chandise; 

4 ‘‘(ii) a person alleged to have entered 

5 such covered merchandise into the customs 

6 territory of the United States through eva7 sion; 

8 ‘‘(iii) a person that is a foreign pro9 ducer or exporter of such covered merchan10 dise; or 

11 ‘‘(iv) the government of a country 

12 from which such covered merchandise was 

13 exported; and 

14 ‘‘(B) conducting verifications, including on15 site verifications, of any relevant information. 

16 ‘‘(3) ADVERSE INFERENCE.—If the Commis17 sioner finds that a person described in clause (i), 

18 (ii), or (iii) of paragraph (2)(A) has failed to cooper19 ate by not acting to the best of the person’s ability 

20 to comply with a request for information, the Com21 missioner may, in making a determination under 

22 paragraph (1), use an inference that is adverse to 

23 the interests of that person in selecting from among 

24 the facts otherwise available to make the determina25 tion. 


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1 ‘‘(4) NOTIFICATION.—Not later than 5 business 

2 days after making a determination under paragraph 

3 (1) with respect to covered merchandise, the Com4 missioner— 

5 ‘‘(A) shall provide to each person that filed 

6 an allegation under paragraph (2) of subsection 

7 (b) that resulted in the initiation of an inves8 tigation under paragraph (1) of that subsection 

9 with respect to such covered merchandise a no10 tification of the determination and may, in ad11 dition, include an explanation of the basis for 

12 the determination; and 

13 ‘‘(B) may provide to importers, in such 

14 manner as the Commissioner determines appro15 priate, information discovered in the investiga16 tion that the Commissioner determines will help 

17 educate importers with respect to importing 

18 merchandise into the customs territory of the 

19 United States in accordance with all applicable 

20 laws and regulations. 

21 ‘‘(d) EFFECT OF DETERMINATIONS.— 

22 ‘‘(1) IN GENERAL.—If the Commissioner makes 

23 a determination under subsection (c) that covered 

24 merchandise was entered into the customs territory 


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1 of the United States through evasion, the Commis2 sioner shall— 

3 ‘‘(A)(i) suspend the liquidation of unliqui4 dated entries of such covered merchandise that 

5 are subject to the determination and that enter 

6 on or after the date of the initiation of the in7 vestigation under subsection (b) with respect to 

8 such covered merchandise and on or before the 

9 date of the determination; or 

10 ‘‘(ii) if the Commissioner has already sus11 pended the liquidation of such entries pursuant 

12 to subsection (e)(1), continue to suspend the 

13 liquidation of such entries; 

14 ‘‘(B) pursuant to the Commissioner’s au15 thority under section 504(b)— 

16 ‘‘(i) extend the period for liquidating 

17 unliquidated entries of such covered mer18 chandise that are subject to the determina19 tion and that entered before the date of 

20 the initiation of the investigation; or 

21 ‘‘(ii) if the Commissioner has already 

22 extended the period for liquidating such 

23 entries pursuant to subsection (e)(1), con24 tinue to extend the period for liquidating 

25 such entries; 


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1 ‘‘(C) notify the administering authority of 

2 the determination and request that the admin3 istering authority— 

4 ‘‘(i) identify the applicable anti5 dumping or countervailing duty assessment 

6 rates for entries described in subpara7 graphs (A) and (B); or 

8 ‘‘(ii) if no such assessment rate for 

9 such an entry is available at the time, 

10 identify the applicable cash deposit rate to 

11 be applied to the entry, with the applicable 

12 antidumping or countervailing duty assess13 ment rate to be provided as soon as that 

14 rate becomes available; 

15 ‘‘(D) require the posting of cash deposits 

16 and assess duties on entries described in sub17 paragraphs (A) and (B) in accordance with the 

18 instructions received from the administering au19 thority under paragraph (2); and 

20 ‘‘(E) take such additional enforcement 

21 measures as the Commissioner determines ap22 propriate, such as— 

23 ‘‘(i) initiating proceedings under sec24 tion 592 or 596; 


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1 ‘‘(ii) implementing, in consultation 

2 with the relevant Federal agencies, rule 

3 sets or modifications to rules sets for iden4 tifying, particularly through the Auto5 mated Targeting System and the Auto6 mated Commercial Environment, import7 ers, other parties, and merchandise that 

8 may be associated with evasion; 

9 ‘‘(iii) requiring, with respect to mer10 chandise for which the importer has re11 peatedly provided incomplete or erroneous 

12 entry summary information in connection 

13 with determinations of evasion, the im14 porter to deposit estimated duties at the 

15 time of entry; and 

16 ‘‘(iv) referring the record in whole or 

17 in part to the U.S. Immigration and Cus18 toms Enforcement Agency for civil or 

19 criminal investigation. 

20 ‘‘(2) COOPERATION OF ADMINISTERING AU21 THORITY.— 

22 ‘‘(A) IN GENERAL.—Upon receiving a noti23 fication from the Commissioner under para24 graph (1)(C), the administering authority shall 

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1 plicable cash deposit rates and antidumping or 

2 countervailing duty assessment rates and any 

3 necessary liquidation instructions. 

4 ‘‘(B) SPECIAL RULE FOR CASES IN WHICH

5 THE PRODUCER OR EXPORTER IS UNKNOWN.— 

6 If the Commissioner and the administering au7 thority are unable to determine the producer or 

8 exporter of the merchandise with respect to 

9 which a notification is made under paragraph 

10 (1)(C), the administering authority shall iden11 tify, as the applicable cash deposit rate or anti12 dumping or countervailing duty assessment 

13 rate, the cash deposit or duty (as the case may 

14 be) in the highest amount applicable to any 

15 producer or exporter, including the ‘all-others’ 

16 rate of the merchandise subject to an anti17 dumping order or countervailing duty order 

18 under section 736 or 706, respectively, or a 

19 finding issued under the Antidumping Act, 

20 1921, or any administrative review conducted 

21 under section 751. 

22 ‘‘(e) INTERIM MEASURES.—Not later than 90 cal23 endar days after initiating an investigation under sub24 section (b) with respect to covered merchandise, the Com25 missioner shall decide based on the investigation if there 


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1 is a reasonable suspicion that such covered merchandise 

2 was entered into the customs territory of the United 

3 States through evasion and, if the Commissioner decides 

4 there is such a reasonable suspicion, the Commissioner 

5 shall— 

6 ‘‘(1) suspend the liquidation of each unliqui7 dated entry of such covered merchandise that en8 tered on or after the date of the initiation of the in9 vestigation; 

10 ‘‘(2) pursuant to the Commissioner’s authority 

11 under section 504(b), extend the period for liqui12 dating each unliquidated entry of such covered mer13 chandise that entered before the date of the initi14 ation of the investigation; and 

15 ‘‘(3) pursuant to the Commissioner’s authority 

16 under section 623, take such additional measures as 

17 the Commissioner determines necessary to protect 

18 the revenue of the United States, including requiring 

19 a single transaction bond or additional security or 

20 the posting of a cash deposit with respect to such 

21 covered merchandise. 

22 ‘‘(f) ADMINISTRATIVE REVIEW.— 

23 ‘‘(1) IN GENERAL.—Not later than 30 business 

24 days after the Commissioner makes a determination 

25 under subsection (c) with respect to whether covered 


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1 merchandise was entered into the customs territory 

2 of the United States through evasion, a person de3 termined to have entered such covered merchandise 

4 through evasion or a person that filed an allegation 

5 under paragraph (2) of subsection (b) that resulted 

6 in the initiation of an investigation under paragraph 

7 (1) of that subsection with respect to such covered 

8 merchandise may file an appeal with the Commis9 sioner for de novo review of the determination. 

10 ‘‘(2) TIMELINE FOR REVIEW.—Not later than 

11 60 business days after an appeal of a determination 

12 is filed under paragraph (1), the Commissioner shall 

13 complete the review of the determination. 

14 ‘‘(g) JUDICIAL REVIEW.— 

15 ‘‘(1) IN GENERAL.—Not later than 30 business 

16 days after the Commissioner completes a review 

17 under subsection (f) of a determination under sub18 section (c) with respect to whether covered merchan19 dise was entered into the customs territory of the 

20 United States through evasion, a person determined 

21 to have entered such covered merchandise through 

22 evasion or a person that filed an allegation under 

23 paragraph (2) of subsection (b) that resulted in the 

24 initiation of an investigation under paragraph (1) of 

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1 chandise may commence a civil action in the United 

2 States Court of International Trade by filing concur3 rently a summons and complaint contesting any fac4 tual findings or legal conclusions upon which the de5 termination is based. 

6 ‘‘(2) STANDARD OF REVIEW.—In a civil action 

7 under this subsection, the court shall hold unlawful 

8 any determination, finding, or conclusion found to be 

9 arbitrary, capricious, an abuse of discretion, or oth10 erwise not in accordance with law. 

11 ‘‘(h) RULE OF CONSTRUCTION WITH RESPECT TO

12 OTHER CIVIL AND CRIMINAL PROCEEDINGS AND INVES13 TIGATIONS.—No determination under subsection (c) or ac14 tion taken by the Commissioner pursuant to this section 

15 shall be construed to limit the authority to carry out, or 

16 the scope of, any other proceeding or investigation pursu17 ant to any other provision of Federal or State law, includ18 ing sections 592 and 596.’’. 

19 (b) CONFORMING AMENDMENT.—Section 1581(c) of 

20 title 28, United States Code, is amended by inserting ‘‘or 

21 517’’ after ‘‘516A’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall take effect on the date that is 180 days 

24 after the date of the enactment of this Act. 


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1 (d) REGULATIONS.—Not later than the date that is 

2 180 days after the date of the enactment of this Act, the 

3 Secretary of the Treasury shall prescribe such regulations 

4 as may be necessary to implement the amendments made 

5 by this section. 

6 (e) APPLICATION TO CANADA AND MEXICO.—Pursu7 ant to article 1902 of the North American Free Trade 

8 Agreement and section 408 of the North American Free 

9 Trade Agreement Implementation Act (19 U.S.C. 3438), 

10 the amendments made by this section shall apply with re11 spect to goods from Canada and Mexico. 

12 SEC. 303. ANNUAL REPORT ON PREVENTION AND INVES13 TIGATION OF EVASION OF ANTIDUMPING 

14 AND COUNTERVAILING DUTY ORDERS. 

15 (a) IN GENERAL.—Not later than January 15 of 

16 each calendar year that begins on or after the date that 

17 is 270 days after the date of the enactment of this Act, 

18 the Commissioner, in consultation with the Secretary of 

19 Commerce and the Director of U.S. Immigration and Cus20 toms Enforcement, shall submit to the Committee on Fi21 nance of the Senate and the Committee on Ways and 

22 Means of the House of Representatives a report on the 

23 efforts being taken to prevent and investigate the entry 

24 of covered merchandise into the customs territory of the 

25 United States through evasion. 


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1 (b) CONTENTS.—Each report required under sub2 section (a) shall include— 

3 (1) for the calendar year preceding the submis4 sion of the report— 

5 (A) a summary of the efforts of the U.S. 

6 Customs and Border Protection Agency to pre7 vent and investigate the entry of covered mer8 chandise into the customs territory of the 

9 United States through evasion; 

10 (B) the number of allegations of evasion 

11 received under subsection (b) of section 517 of 

12 the Tariff Act of 1930, as added by section 

13 302, and the number of such allegations result14 ing in investigations by the U.S. Customs and 

15 Border Protection Agency or any other agency; 

16 (C) a summary of investigations initiated 

17 under subsection (b) of such section 517, in18 cluding— 

19 (i) the number and nature of the in20 vestigations initiated, conducted, and com21 pleted; and 

22 (ii) the resolution of each completed 

23 investigation; 

24 (D) the number of investigations initiated 

25 under that subsection not completed during the 


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1 time provided for making determinations under 

2 subsection (c) of such section 517 and an expla3 nation for why the investigations could not be 

4 completed on time; 

5 (E) the amount of additional duties that 

6 were determined to be owed as a result of such 

7 investigations, the amount of such duties that 

8 were collected, and, for any such duties not col9 lected, a description of the reasons those duties 

10 were not collected; 

11 (F) with respect to each such investigation 

12 that led to the imposition of a penalty, the 

13 amount of the penalty; 

14 (G) an identification of the countries of or15 igin of covered merchandise determined under 

16 subsection (c) of such section 517 to be entered 

17 into the customs territory of the United States 

18 through evasion; 

19 (H) the amount of antidumping and coun20 tervailing duties collected as a result of any in21 vestigations or other actions by the U.S. Cus22 toms and Border Protection Agency or any 

23 other agency; 

24 (I) a description of the allocation of per25 sonnel and other resources of the U.S. Customs 


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1 and Border Protection Agency and the U.S. Im2 migration and Customs Enforcement Agency to 

3 prevent and investigate evasion, including any 

4 assessments conducted regarding the allocation 

5 of such personnel and resources; and 

6 (J) a description of training conducted to 

7 increase expertise and effectiveness in the pre8 vention and investigation of evasion; and 

9 (2) a description of processes and procedures of 

10 the U.S. Customs and Border Protection Agency to 

11 prevent and investigate evasion, including— 

12 (A) the specific guidelines, policies, and 

13 practices used by the Agency to ensure that al14 legations of evasion are promptly evaluated and 

15 acted upon in a timely manner; 

16 (B) an evaluation of the efficacy of those 

17 guidelines, policies, and practices; 

18 (C) an identification of any changes since 

19 the last report required by this section, if any, 

20 that have materially improved or reduced the 

21 effectiveness of the Agency in preventing and 

22 investigating evasion; 

23 (D) a description of the development and 

24 implementation of policies for the application of 

25 single entry and continuous bonds for entries of 


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1 covered merchandise to sufficiently protect the 

2 collection of antidumping and countervailing 

3 duties commensurate with the level of risk of 

4 not collecting those duties; 

5 (E) a description of the processes and pro6 cedures for increased cooperation and informa7 tion sharing with the Department of Commerce, 

8 the U.S. Immigration and Customs Enforce9 ment Agency, and any other relevant Federal 

10 agencies to prevent and investigate evasion; and 

11 (F) an identification of any recommended 

12 policy changes for other Federal agencies or 

13 legislative changes to improve the effectiveness 

14 of the U.S. Customs and Border Protection 

15 Agency in preventing and investigating evasion. 

16 (c) PUBLIC SUMMARY.—The Commissioner shall 

17 make available to the public a summary of the report re18 quired by subsection (a) that includes, at a minimum— 

19 (1) a description of the type of merchandise 

20 with respect to which investigations were initiated 

21 under subsection (b) of section 517 of the Tariff Act 

22 of 1930, as added by section 302; 

23 (2) the amount of additional duties determined 

24 to be owed as a result of such investigations and the 

25 amount of such duties that were collected; 


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1 (3) an identification of the countries of origin 

2 of covered merchandise determined under subsection 

3 (c) of such section 517 to be entered into the cus4 toms territory of the United States through evasion; 

5 and 

6 (4) a description of the types of measures used 

7 by the U.S. Customs and Border Protection Agency 

8 to prevent and investigate evasion. 

9 (d) DEFINITIONS.—In this section, the terms ‘‘cov10 ered merchandise’’ and ‘‘evasion’’ have the meanings given 

11 those terms in section 517(a) of the Tariff Act of 1930, 

12 as added by section 302. 

13 TITLE IV—MISCELLANEOUS 

14 PROVISIONS 

15 SEC. 401. CONSULTATION ON TRADE AND CUSTOMS REV16 ENUE FUNCTIONS. 

17 Section 401(c) of the Safety and Accountability for 

18 Every Port Act (6 U.S.C. 115(c)) is amended— 

19 (1) in paragraph (1), by striking ‘‘on Depart20 ment policies and actions that have’’ and inserting 

21 ‘‘not later than 30 days after proposing, and not 

22 later than 30 days before finalizing, any Department 

23 policies, initiatives, or actions that will have’’; and 

24 (2) in paragraph (2)(A), by striking ‘‘not later 

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1 ing ‘‘not later than 60 days before proposing, and 

2 not later than 60 days before finalizing,’’. 

3 SEC. 402. DRAWBACK SIMPLIFICATION. 

4 (a) IN GENERAL.—Section 313 of the Tariff Act of 

5 1930 (19 U.S.C. 1313) is amended to read as follows: 

6 ‘‘SEC. 313. DRAWBACK. 

7 ‘‘(a) DEFINITIONS.—In this section: 

8 ‘‘(1) BILL OF MATERIALS; FORMULA.—The 

9 terms ‘bill of materials’ and ‘formula’ mean records 

10 kept in the ordinary course of business that identify 

11 each component incorporated into merchandise or 

12 that identify the quantity of each element, material, 

13 chemical, mixture, or other substance incorporated 

14 into merchandise. 

15 ‘‘(2) COMMISSIONER.—The term ‘Commis16 sioner’ means the Commissioner of U.S. Customs 

17 and Border Protection. 

18 ‘‘(3) DESTROYED MERCHANDISE.—The term 

19 ‘destroyed merchandise’ means merchandise that has 

20 undergone destruction. 

21 ‘‘(4) DESTRUCTION.—The term ‘destruction’ 

22 means a process by which merchandise loses all com23 mercial value, other than the value of any material 

24 that may be recovered when the merchandise is de25 stroyed. 


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1 ‘‘(5) DIRECT IDENTIFICATION.—The term ‘di2 rect identification’ means the identification of mer3 chandise that is exported or destroyed to claim 

4 drawback with respect to imported merchandise as 

5 the imported merchandise or merchandise into which 

6 the imported merchandise is incorporated using— 

7 ‘‘(A) the serial number or other unique 

8 identifier of the exported merchandise or de9 stroyed merchandise and the imported merchan10 dise; or 

11 ‘‘(B) such accounting methods as are pro12 vided for by regulation by the Commissioner. 

13 ‘‘(6) DIRECTLY.—The term ‘directly’ means a 

14 transfer of merchandise from one person to another 

15 person without any intermediate transfer. 

16 ‘‘(7) FUNGIBLE.—The term ‘fungible’ means, 

17 with respect to merchandise, merchandise that is 

18 interchangeable for commercial purposes with other 

19 merchandise and has properties that are essentially 

20 identical to the properties of the other merchandise. 

21 ‘‘(8) GOOD SUBJECT TO CHILE FTA DRAW22 BACK.—The term ‘good subject to Chile FTA draw23 back’ has the meaning given that term in section 

24 203(a) of the United States-Chile Free Trade Agree25 ment Implementation Act (19 U.S.C. 3805 note). 


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1 ‘‘(9) GOOD SUBJECT TO NAFTA DRAWBACK.— 

2 The term ‘good subject to NAFTA drawback’ has 

3 the meaning given that term in section 203(a) of the 

4 North American Free Trade Agreement Implemen5 tation Act (19 U.S.C. 3333(a)). 

6 ‘‘(10) HTS.—The term ‘HTS’ means the Har7 monized Tariff Schedule of the United States. 

8 ‘‘(11) INCORPORATED.—The term ‘incor9 porated’ means any operation by which merchandise 

10 becomes classifiable in a different 8-digit HTS sub11 heading number. 

12 ‘‘(12) INDIRECTLY.—The term ‘indirectly’ 

13 means a transfer of merchandise from one person to 

14 another person with one or more intermediate trans15 fers. 

16 ‘‘(13) LINE ITEM.— 

17 ‘‘(A) IMPORTED MERCHANDISE.—The term 

18 ‘line item’, with respect to imported merchan19 dise, means the identification, in an entry filed 

20 pursuant to section 484, of merchandise im21 ported from one country by net quantity, en22 tered value, 8-digit HTS subheading number, 

23 and applicable duties, taxes, and fees. 

24 ‘‘(B) EXPORTED MERCHANDISE.—The 

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1 chandise, means the identification of the mer2 chandise by 8-digit HTS subheading number or 

3 Schedule B number, declared value, and quan4 tity. 

5 ‘‘(14) NAFTA COUNTRY.—The term ‘NAFTA 

6 country’ has the meaning given that term in section 

7 2 of the North American Free Trade Agreement Im8 plementation Act (19 U.S.C. 3301). 

9 ‘‘(15) SCHEDULE B.—The term ‘Schedule B’ 

10 means the Department of Commerce Schedule B, 

11 Statistical Classification of Domestic and Foreign 

12 Commodities Exported from the United States. 

13 ‘‘(16) SUBSTITUTE MERCHANDISE.—The term 

14 ‘substitute merchandise’ means merchandise that is 

15 substituted for other merchandise for drawback pur16 poses pursuant to subsection (g). 

17 ‘‘(17) VESSEL.—The term ‘vessel’ includes ves18 sels, parts of vessels, aircraft, and parts of aircraft. 

19 ‘‘(b) ELIGIBILITY FOR DRAWBACK.— 

20 ‘‘(1) IN GENERAL.—A person described in sub21 section (c) is eligible for drawback of duties, taxes, 

22 and fees imposed under Federal law paid on im23 ported merchandise in an amount determined under 

24 subsection (h) if— 


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1 ‘‘(A) the imported merchandise meets the 

2 requirements of subsection (d); 

3 ‘‘(B)(i) merchandise that meets the re4 quirements of subsection (e) is exported; or 

5 ‘‘(ii) merchandise that meets the require6 ments of subsection (f) is destroyed; and 

7 ‘‘(C) the person files a claim for drawback 

8 with respect to the imported merchandise in ac9 cordance with subsection (i). 

10 ‘‘(2) MULTIPLE DRAWBACK CLAIMS.—If a per11 son claims drawback under paragraph (1) with re12 spect to imported merchandise based on exported 

13 merchandise or destroyed merchandise, the exported 

14 merchandise or destroyed merchandise (as the case 

15 may be) may not be the basis of any other claim for 

16 drawback, except that appropriate credit and deduc17 tions for claims covering components or ingredients 

18 of exported merchandise or destroyed merchandise 

19 shall be made in determining the amount of draw20 back under subsection (h). 

21 ‘‘(c) PERSONS ELIGIBLE TO CLAIM DRAWBACK.— 

22 ‘‘(1) IN GENERAL.—A person may claim draw23 back under this section if the person— 

24 ‘‘(A)(i) imports the merchandise on which 

25 the claim is based; or 


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1 ‘‘(ii) obtains the authorization of the im2 porter to claim the drawback; and 

3 ‘‘(B)(i) exports or destroys the merchan4 dise that was exported or destroyed to claim 

5 drawback with respect to the imported mer6 chandise; or 

7 ‘‘(ii) obtains the authorization of the ex8 porter or the person that destroyed the mer9 chandise (as the case may be) to claim draw10 back. 

11 ‘‘(2) LIABILITY FOR CLAIMS.— 

12 ‘‘(A) IN GENERAL.—Any person making a 

13 claim for drawback with respect to imported 

14 merchandise shall be liable for the full amount 

15 of the drawback claimed against the imported 

16 merchandise. 

17 ‘‘(B) LIABILITY OF IMPORTERS.—An im18 porter shall be liable for any drawback claim 

19 made by another person with respect to im20 ported merchandise in an amount equal to the 

21 lesser of— 

22 ‘‘(i) the amount of duties, taxes, and 

23 fees that the person claimed with respect 

24 to the imported merchandise; or 


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1 ‘‘(ii) the amount of duties, taxes, and 

2 fees that the importer authorized the other 

3 person to claim with respect to the im4 ported merchandise. 

5 ‘‘(C) JOINT AND SEVERAL LIABILITY.— 

6 Persons described in subparagraph (A) and (B) 

7 shall be jointly and severally liable for the 

8 amount described in subparagraph (B). 

9 ‘‘(D) ORDER OF RECOVERY.—The Sec10 retary of the Treasury shall seek to recover the 

11 amount of the drawback from a person de12 scribed in subparagraph (A) before seeking re13 covery from an importer described in subpara14 graph (B). 

15 ‘‘(d) REQUIREMENTS FOR IMPORTED MERCHAN16 DISE.—Imported merchandise meets the requirements of 

17 this subsection if— 

18 ‘‘(1) all applicable duties, taxes, and fees have 

19 been paid on the imported merchandise; and 

20 ‘‘(2) the imported merchandise is entered or 

21 withdrawn from warehouse for consumption. 

22 ‘‘(e) REQUIREMENTS FOR EXPORTED MERCHAN23 DISE.— 


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1 ‘‘(1) IN GENERAL.—Exported merchandise 

2 meets the requirements of this subsection if the ex3 ported merchandise is— 

4 ‘‘(A) the imported merchandise; 

5 ‘‘(B) merchandise that is substituted for 

6 the imported merchandise pursuant to sub7 section (g); 

8 ‘‘(C) merchandise into which the imported 

9 merchandise or substitute merchandise is incor10 porated; or 

11 ‘‘(D) merchandise that is substituted, pur12 suant to subsection (g), for merchandise into 

13 which the imported merchandise or substitute 

14 merchandise is incorporated. 

15 ‘‘(2) SPECIAL RULES WITH RESPECT TO INCOR16 PORATION OF MERCHANDISE INTO OTHER MER17 CHANDISE.—For purposes of subparagraphs (C) and 

18 (D) of paragraph (1), imported merchandise or sub19 stitute merchandise is incorporated into other mer20 chandise— 

21 ‘‘(A) if the bill of materials or formula for 

22 such other merchandise submitted with the 

23 claim for drawback under subsection (i) in24 cludes the imported merchandise or substitute 

25 merchandise; and 


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1 ‘‘(B) without regard to the number of 

2 times the imported merchandise or substitute 

3 merchandise is incorporated into such other 

4 merchandise. 

5 ‘‘(f) REQUIREMENTS FOR DESTROYED MERCHAN6 DISE.— 

7 ‘‘(1) IN GENERAL.—Destroyed merchandise 

8 meets the requirements of this subsection if— 

9 ‘‘(A) the merchandise is— 

10 ‘‘(i) the imported merchandise; 

11 ‘‘(ii) merchandise that is substituted 

12 for the imported merchandise pursuant to 

13 subsection (g); 

14 ‘‘(iii) merchandise into which the im15 ported merchandise or substitute merchan16 dise is incorporated; or 

17 ‘‘(iv) merchandise that is substituted, 

18 pursuant to subsection (g), for merchan19 dise into which the imported merchandise 

20 or substitute merchandise is incorporated; 

21 and 

22 ‘‘(B) the merchandise— 

23 ‘‘(i) is not exported because of its de24 struction; and 


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1 ‘‘(ii) was not used in the United 

2 States before its destruction. 

3 ‘‘(2) TREATMENT OF RETURNED MERCHAN4 DISE.—For purposes of paragraph (1)(B)(ii), mer5 chandise is not used in the United States solely be6 cause the merchandise is— 

7 ‘‘(A) sold at retail by the importer or an8 other person that received the merchandise 

9 from the importer under a certificate of deliv10 ery; and 

11 ‘‘(B) subsequently returned to and accept12 ed by the importer or other person described in 

13 subparagraph (A). 

14 ‘‘(g) SUBSTITUTION.— 

15 ‘‘(1) IN GENERAL.—Except as provided in this 

16 subsection, merchandise may be substituted for 

17 other merchandise if it can be demonstrated that the 

18 merchandise was classifiable under the same 8-digit 

19 HTS subheading number as such other merchandise 

20 at some point during the 5-year period beginning on 

21 the date on which the merchandise was imported. 

22 ‘‘(2) CLASSIFICATION.—The Schedule B num23 ber for merchandise may be used for purposes of de24 termining under paragraph (1) if the merchandise is 

25 or has been classified under the same 8-digit HTS 


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1 subheading number as other merchandise, without 

2 regard to whether the Schedule B number encom3 passes more than one 8-digit HTS subheading num4 ber. 

5 ‘‘(3) SPECIAL SUBSTITUTION RULES.— 

6 ‘‘(A)(i) Merchandise that is classifiable 

7 under any heading or subheading of the HTS 

8 specified in clause (ii) may be substituted for 

9 other merchandise if the merchandise is classifi10 able under the same 8-digit HTS subheading 

11 number as the other merchandise under the 

12 HTS as in effect on January 1, 2000. 

13 ‘‘(ii) A heading or subheading of the HTS 

14 specified in this clause is— 

15 ‘‘(I) any of headings 2707 through 

16 2715, 2901, or 2902; 

17 ‘‘(II) any of headings 3901 through 

18 3914 (as such headings apply to the pri19 mary forms provided under Note 6 to 

20 chapter 39 of the HTS); or 

21 ‘‘(III) subheading 2903.21.00, 

22 2909.19.14, 2917.36, 2917.39.04, 

23 2917.39.15, 2926.10.00, 3811.21.00, or 

24 3811.90.00. 


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1 ‘‘(B) Merchandise that is classifiable under 

2 subheading 2204.21.50, 2204.29.20, or 

3 2204.29.60 of the HTS may be substituted for 

4 other merchandise that is classifiable under any 

5 such subheading. 

6 ‘‘(C) Merchandise that is classifiable under 

7 subheading 2204.21.80, 2204.29.40, or 

8 2204.29.80 of the HTS may be substituted for 

9 other merchandise that is classifiable under any 

10 such subheading. 

11 ‘‘(4) SPECIAL RULE FOR ETHYL ALCOHOL.— 

12 Notwithstanding any other provision of law, in the 

13 case of any duty paid under subheading 9901.00.50 

14 of the HTS on imports of ethyl alcohol or a mixture 

15 of ethyl alcohol, such duty may not be refunded if 

16 the exported merchandise upon which a drawback 

17 claim is based does not contain ethyl alcohol or a 

18 mixture of ethyl alcohol. 

19 ‘‘(h) AMOUNT OF DRAWBACK.— 

20 ‘‘(1) CLAIMS BASED ON EXPORTATION OF IM21 PORTED OR SUBSTITUTE MERCHANDISE.—If a per22 son claims drawback with respect to imported mer23 chandise based on the exportation of the imported 

24 merchandise or substitute merchandise, the amount 


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1 of drawback paid pursuant to this section shall be 

2 equal to 99 percent of the product of— 

3 ‘‘(A) the number of units of the imported 

4 merchandise or substitute merchandise exported 

5 to claim drawback with respect to the imported 

6 merchandise, and 

7 ‘‘(B) the lesser of— 

8 ‘‘(i) the amount of duties, taxes, and 

9 fees paid with respect to the line item for 

10 the imported merchandise divided by the 

11 total number of units of the imported mer12 chandise included in the line item, or 

13 ‘‘(ii) the amount of duties, taxes, and 

14 fees that would apply to the exported mer15 chandise if the exported merchandise were 

16 imported divided by the number of units of 

17 the exported merchandise. 

18 ‘‘(2) CLAIMS BASED ON DESTRUCTION OF IM19 PORTED MERCHANDISE, MERCHANDISE INTO WHICH

20 IMPORTED MERCHANDISE IS INCORPORATED, OR

21 MERCHANDISE SUBSTITUTED FOR MERCHANDISE

22 INTO WHICH IMPORTED MERCHANDISE IS INCOR23 PORATED.—If a person claims drawback with re24 spect to imported merchandise based on the destruc25 tion of the imported merchandise, merchandise into 


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1 which the imported merchandise is incorporated, or 

2 merchandise substituted for merchandise into which 

3 the imported merchandise is incorporated, the 

4 amount of drawback paid pursuant to this section 

5 shall be equal to 99 percent of— 

6 ‘‘(A) the product of— 

7 ‘‘(i) the number of units of the im8 ported merchandise destroyed to claim 

9 drawback with respect to the imported 

10 merchandise or incorporated into merchan11 dise for which the destroyed merchandise 

12 is substituted, and 

13 ‘‘(ii) the amount of duties, taxes, and 

14 fees paid with respect to the line item for 

15 the imported merchandise divided by the 

16 total number of units of the imported mer17 chandise included in the line item, minus 

18 ‘‘(B) the value of any materials recovered 

19 during the destruction of the destroyed mer20 chandise (including the value of any tax benefit 

21 or royalty payment with respect to such mate22 rials). 

23 ‘‘(3) CLAIMS BASED ON EXPORTATION OF MER24 CHANDISE INTO WHICH IMPORTED OR SUBSTITUTE

25 MERCHANDISE IS INCORPORATED OR MERCHANDISE


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1 SUBSTITUTED FOR MERCHANDISE INTO WHICH IM2 PORTED OR SUBSTITUTE MERCHANDISE IS INCOR3 PORATED.—If a person claims drawback with re4 spect to imported merchandise based on the expor5 tation of merchandise into which the imported mer6 chandise or substitute merchandise is incorporated, 

7 or merchandise substituted for merchandise into 

8 which the imported merchandise or substitute mer9 chandise is incorporated, the amount of drawback 

10 paid pursuant to this section shall be equal to 99 

11 percent of the product of— 

12 ‘‘(A) the number of units of the imported 

13 merchandise or substitute merchandise incor14 porated into the exported merchandise or the 

15 merchandise for which the exported merchan16 dise is substituted, and 

17 ‘‘(B)(i) in the case of exported merchan18 dise into which the imported merchandise is in19 corporated or exported merchandise substituted 

20 for merchandise into which the imported mer21 chandise is incorporated, the amount of duties, 

22 taxes, and fees paid with respect to the line 

23 item for the imported merchandise divided by 

24 the number of units of the imported merchan25 dise included in the line item, or 


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1 ‘‘(ii) in the case of exported merchandise 

2 into which substitute merchandise is incor3 porated or exported merchandise substituted for 

4 merchandise into which substitute merchandise 

5 is incorporated, the lesser of— 

6 ‘‘(I) the amount of duties, taxes, and 

7 fees paid with respect to the line item for 

8 the imported merchandise divided by the 

9 total number of units of the imported mer10 chandise included in the line item, or 

11 ‘‘(II) the amount of duties, taxes, and 

12 fees that would apply to the substitute 

13 merchandise, if the substitute merchandise 

14 were imported, divided by the number of 

15 units of the substitute merchandise incor16 porated into the exported merchandise or 

17 the merchandise for which the exported 

18 merchandise is substituted. 

19 ‘‘(4) CLAIMS BASED ON DESTRUCTION OF SUB20 STITUTE MERCHANDISE, MERCHANDISE INTO WHICH

21 SUBSTITUTE MERCHANDISE IS INCORPORATED, OR

22 MERCHANDISE SUBSTITUTED FOR MERCHANDISE

23 INTO WHICH SUBSTITUTE MERCHANDISE IS INCOR24 PORATED.—If a person claims drawback with re25 spect to imported merchandise based on the destrucVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00176 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 tion of substitute merchandise, merchandise into 

2 which substitute merchandise is incorporated, or 

3 merchandise substituted for merchandise into which 

4 substitute merchandise is incorporated, the amount 

5 of drawback paid pursuant to this section shall be 

6 equal to 99 percent of the lesser of— 

7 ‘‘(A) the amount of— 

8 ‘‘(i) duties, taxes, and fees that would 

9 apply to the substitute merchandise de10 stroyed, incorporated into destroyed mer11 chandise, or incorporated into merchandise 

12 for which the destroyed merchandise is 

13 substituted, if the substitute merchandise 

14 were imported, minus 

15 ‘‘(ii) the value of any materials recov16 ered during the destruction of the de17 stroyed merchandise (including the value 

18 of any tax benefit or royalty payment with 

19 respect to such materials), or 

20 ‘‘(B) the amount of drawback the person 

21 could have claimed under paragraph (2) if the 

22 person had destroyed the imported merchan23 dise. 

24 ‘‘(5) LIMITATION FOR DUTIES, TAXES, AND

25 FEES PREVIOUSLY REFUNDED.—The amount of duVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00177 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 ties, taxes, and fees that may be refunded as draw2 back with respect to imported merchandise pursuant 

3 to this subsection shall be reduced by the amount of 

4 any duties, taxes, and fees previously refunded to a 

5 person with respect to such merchandise. 

6 ‘‘(i) FILING REQUIREMENTS.—The requirements for 

7 filing a claim for drawback under this subsection are the 

8 following: 

9 ‘‘(1) ELECTRONIC FILING.—The claim shall be 

10 filed electronically. 

11 ‘‘(2) TIME LIMIT FOR CLAIM.—The claim shall 

12 be filed not later than 5 years after the date— 

13 ‘‘(A) on which the merchandise with re14 spect to which drawback is claimed is imported; 

15 or 

16 ‘‘(B) if the claim is based on merchandise 

17 imported on more than one date, the earliest 

18 date on which any such merchandise was im19 ported. 

20 ‘‘(3) IDENTIFICATION OF MERCHANDISE.—The 

21 claim shall include an identification of the merchan22 dise with respect to which the claim is filed as fol23 lows: 

24 ‘‘(A) If drawback is claimed with respect 

25 to imported merchandise based on the exporVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00178 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 tation of merchandise, a demonstration that the 

2 exported merchandise meets the requirements 

3 of subsection (e) using— 

4 ‘‘(i)(I) the information contained in 

5 the line item for the imported merchandise 

6 and information contained in the line item 

7 for the exported merchandise; and 

8 ‘‘(II) in the case of imported mer9 chandise or substitute merchandise incor10 porated into the exported merchandise or 

11 merchandise that is substituted for mer12 chandise into which imported merchandise 

13 or substitute merchandise is incorporated, 

14 a bill of materials or formula identifying 

15 the imported merchandise or substitute 

16 merchandise and the exported merchandise 

17 by the 8-digit HTS subheading number 

18 and the quantity of the imported merchan19 dise or substitute merchandise and the ex20 ported merchandise; or 

21 ‘‘(ii) direct identification. 

22 ‘‘(B) If drawback is claimed with respect 

23 to imported merchandise based on the destruc24 tion of merchandise, an identification of the imVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00179 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 ported merchandise and the destroyed merchan2 dise using— 

3 ‘‘(i)(I) the information contained in 

4 the line item for the imported merchandise 

5 and information identifying the destroyed 

6 merchandise by 8-digit HTS subheading 

7 number and quantity; and 

8 ‘‘(II) in the case of imported mer9 chandise or substitute merchandise incor10 porated into the destroyed merchandise or 

11 merchandise that is substituted for mer12 chandise into which imported merchandise 

13 or substitute merchandise is incorporated, 

14 a bill of materials or formula identifying 

15 the imported merchandise or substitute 

16 merchandise and the destroyed merchan17 dise by the 8-digit HTS subheading num18 ber and the quantity of the imported mer19 chandise or substitute merchandise and the 

20 destroyed merchandise; or 

21 ‘‘(ii) using direct identification. 

22 ‘‘(4) PROOF OF EXPORTATION.—If drawback is 

23 claimed with respect to imported merchandise based 

24 on the exportation of merchandise, the claim shall 

25 include, as proof of exportation, one of the following: 


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1 ‘‘(A) The record of exportation entered in 

2 the automated export system of the United 

3 States Government or, if the exporter is unable 

4 to use that system, information similar to the 

5 information contained in such a record that is 

6 kept by the exporter in the ordinary course of 

7 business. 

8 ‘‘(B) In the case of a deemed export, any 

9 record that establishes the deemed export, or a 

10 copy of such a record, that is kept by the ex11 porter in the ordinary course of business. 

12 ‘‘(5) PROOF OF AUTHORIZATION.—The claim 

13 shall include, as proof of the authorization under 

14 subsection (c)(1) of the importer, exporter, or person 

15 who destroyed merchandise, as appropriate, for an16 other person to claim drawback, records kept in the 

17 ordinary course of business demonstrating the au18 thorization. 

19 ‘‘(j) SPECIAL RULES.— 

20 ‘‘(1) VESSELS BUILT FOR RESIDENTS OF A

21 FOREIGN COUNTRY.—Drawback under this section 

22 may be claimed for materials imported and used in 

23 the construction and equipment of vessels built for 

24 foreign account and ownership, or for the govern25 ment of any foreign country, notwithstanding that 


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1 such vessels may not within the strict meaning of 

2 the term be exported. 

3 ‘‘(2) AGRICULTURAL PRODUCTS.—No drawback 

4 may be claimed under this section for an agricul5 tural product with respect to which an over-quota 

6 rate of duty has been paid, unless the product is 

7 identified as the imported agricultural product using 

8 direct identification. 

9 ‘‘(3) CERTAIN EXPORTED MERCHANDISE.— 

10 ‘‘(A) IN GENERAL.—Except as provided in 

11 subparagraph (B), upon the exportation of fla12 voring extracts, flavors, medicines, medicinal 

13 preparations, or perfumes manufactured or pro14 duced in the United States in part from domes15 tic alcohol on which an internal revenue tax has 

16 been paid, there shall be allowed a drawback in 

17 an amount equal to the tax found to have been 

18 paid on the alcohol so used. 

19 ‘‘(B) LIMITATION.—If drawback has been 

20 claimed under section 5114 of the Internal Rev21 enue Code of 1986 with respect to flavoring ex22 tracts, flavors, medicines, medicinal prepara23 tions, or perfumes manufactured or produced in 

24 the United States, the amount of drawback 


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•S 662 IS

1 under this paragraph shall be limited to $1 per 

2 proof gallon. 

3 ‘‘(C) FORM OF CLAIM.—A claim for draw4 back under this paragraph shall be submitted in 

5 such form, at such times, and under such con6 ditions as the Secretary of the Treasury shall 

7 prescribe by regulation. 

8 ‘‘(4) PAYMENT FROM RECEIPTS OF PUERTO

9 RICO.—A drawback under this section for merchan10 dise shall be paid from the customs receipts of Puer11 to Rico if the duties for such merchandise were 

12 originally paid into the Treasury of Puerto Rico. 

13 ‘‘(k) DRAWBACK ON EXPORTED GOODS UNDER CER14 TAIN FREE TRADE AGREEMENTS.— 

15 ‘‘(1) SPECIAL RULES FOR NAFTA COUNTRIES.— 

16 ‘‘(A) IN GENERAL.—Subject to section 

17 508(b)(2)(B) of the Tariff Act of 1930 (19 

18 U.S.C. 1508(b)(2)(B)), and for purposes of this 

19 section, if merchandise that is exported to a 

20 NAFTA country is a good subject to NAFTA 

21 drawback, no customs duties on the good may 

22 be refunded, waived, or reduced in an amount 

23 that exceeds the lesser of— 


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1 ‘‘(i) the total amount of customs du2 ties paid or owed on the good on importa3 tion into the United States; or 

4 ‘‘(ii) the total amount of customs du5 ties paid on the good on importation into 

6 the NAFTA country. 

7 ‘‘(B) SPECIAL RULE FOR CANADA.—If 

8 Canada ceases to be a NAFTA country and the 

9 suspension of the operation of the United 

10 States-Canada Free-Trade Agreement there11 after terminates, then for purposes of this sec12 tion, the shipment to Canada during the period 

13 such Agreement is in operation of merchandise 

14 made from or substituted for a good eligible for 

15 drawback under section 204(a) of the United 

16 States-Canada Free-Trade Agreement Imple17 mentation Act of 1988 (Public Law 100–449; 

18 19 U.S.C. 2112 note) does not constitute an ex19 portation. 

20 ‘‘(C) FUNGIBLE MERCHANDISE EXPORTED

21 TO NAFTA COUNTRIES.—The exportation to a 

22 NAFTA country of merchandise that is fungible 

23 with and substituted for imported merchandise, 

24 other than merchandise described in paragraphs 

25 (1) through (8) of section 203(a) of the North 


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•S 662 IS

1 American Free Trade Agreement Implementa2 tion Act (19 U.S.C. 3333(a)), shall not be 

3 treated as an exportation of substitute mer4 chandise for purposes of drawback under this 

5 section. 

6 ‘‘(D) PROOF OF EXPORTATION TO CANADA

7 OR MEXICO.—Notwithstanding subsection 

8 (i)(4), a person filing a claim under this para9 graph shall submit, as proof of exportation, the 

10 entry records from Canada or Mexico. 

11 ‘‘(2) SPECIAL RULES FOR CHILE.— 

12 ‘‘(A) IN GENERAL.—For purposes of this 

13 section, if merchandise that is exported to Chile 

14 is a good subject to Chile FTA drawback, no 

15 customs duties on the good may be refunded, 

16 waived, or reduced, except as provided in sub17 paragraph (B). 

18 ‘‘(B) AMOUNT OF CUSTOMS DUTIES.—The 

19 customs duties referred to in subparagraph (A) 

20 may be refunded, waived, or reduced by— 

21 ‘‘(i) 100 percent during the 8-year pe22 riod beginning on January 1, 2004; 

23 ‘‘(ii) 75 percent during the 1-year pe24 riod beginning on January 1, 2012; 


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1 ‘‘(iii) 50 percent during the 1-year pe2 riod beginning on January 1, 2013; and 

3 ‘‘(iv) 25 percent during the 1-year pe4 riod beginning on January 1, 2014. 

5 ‘‘(C) FUNGIBLE MERCHANDISE EXPORTED

6 TO CHILE.—Beginning on January 1, 2015, the 

7 exportation to Chile of merchandise that is fun8 gible with and substituted for imported mer9 chandise, other than merchandise described in 

10 paragraphs (1) through (5) of section 203(a) of 

11 the United States-Chile Free Trade Agreement 

12 Implementation Act (19 U.S.C. 3805 note), 

13 shall not be treated as an exportation of sub14 stitute merchandise for purposes of drawback 

15 under this section. The preceding sentence shall 

16 not be construed to permit the substitution of 

17 merchandise under this section with respect to 

18 merchandise described in paragraph (2) of sec19 tion 203(a) of the United States-Chile Free 

20 Trade Agreement Implementation Act.’’. 

21 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

22 (1) REFUNDS.—Section 505(b) of the Tariff 

23 Act of 1930 (19 U.S.C. 1505(b)) is amended by 

24 adding at the end the following: ‘‘Refunds of excess 

25 moneys deposited, as determined on a liquidation or 


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1 reliquidation, shall be reduced by any amount paid, 

2 on an accelerated basis or otherwise, to a person 

3 claiming drawback pursuant to section 313.’’ 

4 (2) REVIEW OF PROTESTS.—The second sen5 tence of section 515(a) of the Tariff Act of 1930 (19 

6 U.S.C. 1515(a)) is amended by striking the period 

7 at the end and inserting ‘‘in accordance with section 

8 505.’’. 

9 (3) REFUNDS, WAIVERS, AND REDUCTIONS OF

10 DUTY UNDER NAFTA.—Section 508(b)(2)(B)(i)(III) 

11 of the Tariff Act of 1930 (19 U.S.C. 

12 1508(b)(2)(B)(i)(III)) is amended by striking ‘‘sec13 tion 313(n)(2) or (o)(1)’’ and inserting ‘‘section 

14 313(k)(1)’’. 

15 (c) EFFECTIVE DATE.— 

16 (1) IN GENERAL.—Except as provided in para17 graph (2), the amendments made by this section 

18 shall apply to drawback claims filed with respect to 

19 merchandise that enters the United States on or 

20 after the date that is 2 years after the date of the 

21 enactment of this Act. 

22 (2) TRANSITION RULE.—During the 1-year pe23 riod beginning on the date specified in paragraph 

24 (1), a person may elect to file a claim for drawback 

25 under— 


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1 (A) section 313 of the Tariff Act of 1930, 

2 as amended by this section; or 

3 (B) section 313 of the Tariff Act of 1930, 

4 as in effect on the day before the date specified 

5 in paragraph (1). 

6 (d) GOVERNMENT ACCOUNTABILITY OFFICE RE7 PORT.—Not later than the date that is 4 years after the 

8 date of the enactment of this Act, the Comptroller General 

9 of the United States shall submit to the Committee on 

10 Finance of the Senate and the Committee on Ways and 

11 Means of the House of Representatives a report that con12 tains— 

13 (1) an evaluation of the costs and benefits to 

14 the Federal Government, and the benefits to the pri15 vate sector, resulting from the implementation of 

16 section 313 of the Tariff Act of 1930, as amended 

17 by this section; and 

18 (2) an assessment of the extent to which the 

19 implementation of that section may permit a person 

20 claiming drawback with respect to imported mer21 chandise to receive drawback in excess of the duties, 

22 taxes, or fees paid on the imported merchandise. 

23 SEC. 403. PENALTIES FOR CUSTOMS BROKERS. 

24 (a) IN GENERAL.—Section 641(d)(1) of the Tariff 

25 Act of 1930 (19 U.S.C. 1641(d)(1)) is amended— 


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1 (1) in subparagraph (E), by striking ‘‘; or’’ and 

2 inserting a semicolon; 

3 (2) in subparagraph (F), by striking the period 

4 and inserting ‘‘; or’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(G) has been convicted of committing or 

7 conspiring to commit an act of terrorism de8 scribed in section 2332b of title 18, United 

9 States Code.’’. 

10 (b) TECHNICAL AMENDMENTS.—Section 641 of the 

11 Tariff Act of 1930 (19 U.S.C. 1641) is amended— 

12 (1) in subsection (g)(2)(B), by striking ‘‘Sec13 retary’s notice’’ and inserting ‘‘notice under sub14 paragraph (A)’’; and 

15 (2) by striking ‘‘Customs Service’’ each place it 

16 appears and inserting ‘‘U.S. Customs and Border 

17 Protection Agency’’. 

18 SEC. 404. AMENDMENTS TO CHAPTER 98 OF THE HAR19 MONIZED TARIFF SCHEDULE OF THE UNITED 

20 STATES. 

21 (a) ARTICLES EXPORTED AND RETURNED, AD22 VANCED OR IMPROVED ABROAD.—Subchapter II of chap23 ter 98 of the Harmonized Tariff Schedule of the United 

24 States is amended by adding at the end of U.S. Note 3 

25 the following: 


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1 ‘‘(f)(i) For purposes of subheadings 9802.00.40 

2 and 9802.00.50, fungible articles exported from the 

3 United States for the purposes described in such 

4 subheadings— 

5 ‘‘(A) may be commingled; and 

6 ‘‘(B) the origin, value, and classification of 

7 such articles may be accounted for using an in8 ventory management method. 

9 ‘‘(ii) If a person chooses to use an inventory 

10 management method under this subdivision with re11 spect to fungible articles, the person shall use the 

12 same inventory management method for those arti13 cles with respect to which the person claims 

14 fungibility. 

15 ‘‘(iii) For purposes of this subdivision— 

16 ‘‘(A) the term ‘fungible articles’ means ar17 ticles that are interchangeable for commercial 

18 purposes and have essentially identical prop19 erties; and 

20 ‘‘(B) the term ‘inventory management 

21 method’ means any method for managing inven22 tory that is based on generally accepted ac23 counting principles.’’. 

24 (b) MODIFICATION OF PROVISIONS RELATING TO

25 RETURNED PROPERTY.—The article description for subVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00190 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 heading 9801.00.10 of the Harmonized Tariff Schedule of 

2 the United States is amended by inserting after ‘‘ex3 ported’’ the following: ‘‘, or any other products when re4 turned within 3 years after having been exported’’. 

5 (c) DUTY-FREE TREATMENT FOR CERTAIN UNITED

6 STATES GOVERNMENT PROPERTY RETURNED TO THE

7 UNITED STATES.—Subchapter I of chapter 98 of the Har8 monized Tariff Schedule of the United States is amended 

9 by inserting in numerical sequence the following new sub10 heading: 

‘‘ 9801.00.11 United States Government 

property, returned to the 

United States without having 

been advanced in value or improved in condition by any 

means while abroad, entered 

by the United States Government or a contractor to the 

United States Government, 

and certified by the importer 

as United States Government 

property ................................. Free ’’. 

11 SEC. 405. CHARTER FLIGHTS. 

12 Section 13031(e)(1) of the Consolidated Omnibus 

13 Budget Reconciliation Act of 1985 (19 U.S.C. 58c(e)(1)) 

14 is amended— 

15 (1) by striking ‘‘(1) Notwithstanding section 

16 451 of the Tariff Act of 1930 (19 U.S.C. 1451) or 

17 any other provision of law (other than paragraph 

18 (2))’’ and inserting the following: 

19 ‘‘(1)(A) Notwithstanding section 451 of the Tariff 

20 Act of 1930 (19 U.S.C. 1451) or any other provision of 


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1 law (other than subparagraph (B) and paragraph (2))’’; 

2 and 

3 (2) by adding at the end the following: 

4 ‘‘(B)(i) An appropriate officer of the U.S. Customs 

5 and Border Protection Agency may assign a sufficient 

6 number of employees from the Agency (if available) to per7 form services described in clause (ii) for a charter air car8 rier (as defined in section 40102 of title 49, United States 

9 Code) for a charter flight arriving after normal operating 

10 hours at an airport that is an established port of entry 

11 serviced by the Agency, notwithstanding that overtime 

12 funds for those services are not available, if the charter 

13 air carrier— 

14 ‘‘(I) not later than 4 hours before the flight ar15 rives, specifically requests that such services be pro16 vided; and 

17 ‘‘(II) pays any overtime fees incurred in connec18 tion with such services. 

19 ‘‘(ii) Services described in this clause are customs 

20 services for passengers and their baggage or any other 

21 such service that could lawfully be performed during reg22 ular hours of operation.’’. 


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1 SEC. 406. PILOT PROGRAM TO DESIGNATE ADDITIONAL 24- 

2 HOUR COMMERCIAL PORTS OF ENTRY. 

3 (a) ESTABLISHMENT OF PILOT PROGRAM.—The 

4 President shall establish a pilot program under which the 

5 President shall— 

6 (1) pursuant to the Act of August 1, 1914 (38 

7 Stat. 623, chapter 223; 19 U.S.C. 2), designate cer8 tain land border crossings as 24-hour commercial 

9 ports of entry in accordance with subsections (b) 

10 and (c); and 

11 (2) ensure that each land border crossing des12 ignated as a commercial port of entry under the 

13 pilot program has sufficient resources— 

14 (A) to carry out the functions of a com15 mercial port of entry, including accepting en16 tries of merchandise, collecting duties, and en17 forcing the customs and trade laws of the 

18 United States; and 

19 (B) to perform those functions 24 hours a 

20 day. 

21 (b) DESIGNATION.—Not later than 180 days after 

22 the date of the enactment of this Act, the President shall, 

23 after considering the criteria set forth in subsection (c) 

24 and any input provided by the public, designate not fewer 

25 than 2 and not more than 6 land border crossings, equally 

26 divided between land border crossings on the northern and 


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1 southern borders of the United States, as 24-hour com2 mercial ports of entry under the pilot program established 

3 under subsection (a). 

4 (c) CRITERIA.—In designating a land border crossing 

5 as a 24-hour commercial port of entry under the pilot pro6 gram established under subsection (a), the President shall 

7 consider the following: 

8 (1) The number of 24-hour commercial ports of 

9 entry already located in the State in which the land 

10 border crossing is located. 

11 (2) The costs associated with operating the land 

12 border crossing as a 24-hour commercial port of 

13 entry, including whether the Federal Government 

14 would be required to acquire or lease additional 

15 land. 

16 (3) The positive economic impact of designating 

17 the land border crossing as a 24-hour commercial 

18 port of entry on the community in which the land 

19 border crossing is located. 

20 (4) Any commitment of resources by the gov21 ernment of Canada or Mexico, as applicable, to a 

22 similar designation of a corresponding foreign port 

23 of entry. 

24 (5) The support demonstrated by the govern25 ment of the State or locality in which the land borVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00194 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 der crossing is located, including through infrastruc2 ture improvements, to facilitate the operation of the 

3 land border crossing as a 24-hour commercial port 

4 of entry. 

5 (d) TERMINATION.— 

6 (1) DETERMINATION OF ECONOMIC BENEFIT.— 

7 Not later than the date that is 2 years after the date 

8 on which a land border crossing designated as a 24- 

9 hour commercial port of entry under the pilot pro10 gram established under subsection (a) becomes fully 

11 operational as a 24-hour commercial port of entry, 

12 the President shall— 

13 (A) determine whether the operation of the 

14 land border crossing as a port of entry 24 

15 hours a day provides a net economic benefit to 

16 the United States; and 

17 (B) submit to the Committee on Finance 

18 of the Senate and Committee on Ways and 

19 Means of the House of Representatives a report 

20 on that determination and the reasons for that 

21 determination. 

22 (2) TERMINATION.—If the President deter23 mines under paragraph (1) that operating a land 

24 border crossing as a port of entry 24 hours a day 

25 does not provide a net economic benefit to the 


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1 United States, the land border crossing shall cease 

2 to operate as a port of entry 24 hours a day on the 

3 date on which the President submits the report 

4 under paragraph (1)(B). 

5 (e) REPORT.—Not later than 90 days before the 

6 President makes a determination under subsection (d)(1) 

7 with respect to a land border crossing designated as a 24- 

8 hour commercial port of entry under the pilot program 

9 established under subsection (a), the President shall sub10 mit to the Committee on Finance of the Senate and Com11 mittee on Ways and Means of the House of Representa12 tives a report that provides— 

13 (1) a comparison of the vehicle traffic, the esti14 mated total volume of commercial merchandise en15 tered, and the wait times at the land border cross16 ing— 

17 (A) during the 2-year period preceding the 

18 designation of the land border crossing as a 24- 

19 hour commercial port of entry; and 

20 (B) after the land border crossing becomes 

21 fully operational as a 24-hour commercial port 

22 of entry; 

23 (2) a comparison of the total value of commer24 cial merchandise transported through the land bor25 der crossing— 


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1 (A) during the 2-year period preceding the 

2 designation of the land border crossing as a 24- 

3 hour commercial port of entry; and 

4 (B) after the land border crossing becomes 

5 fully operational as a 24-hour commercial port 

6 of entry; and 

7 (3) a comparison of wait times at other ports 

8 of entry in the State in which the land border cross9 ing is located— 

10 (A) during the 2-year period preceding the 

11 designation of the land border crossing as a 24- 

12 hour commercial port of entry; and 

13 (B) after the land border crossing becomes 

14 fully operational as a 24-hour commercial port 

15 of entry. 

16 SEC. 407. ELIMINATION OF CONSUMPTIVE DEMAND EXCEP17 TION TO PROHIBITION ON IMPORTATION OF 

18 GOODS MADE WITH CONVICT LABOR, 

19 FORCED LABOR, OR INDENTURED LABOR; RE20 PORT. 

21 (a) ELIMINATION OF CONSUMPTIVE DEMAND EX22 CEPTION.— 

23 (1) IN GENERAL.—Section 307 of the Tariff 

24 Act of 1930 (19 U.S.C. 1307) is amended by strikVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00197 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 ing ‘‘The provisions of this section’’ and all that fol2 lows through ‘‘of the United States.’’. 

3 (2) EFFECTIVE DATE.—The amendment made 

4 by paragraph (1) shall take effect on the date that 

5 is 15 days after the date of the enactment of this 

6 Act. 

7 (b) REPORT REQUIRED.—Not later than 180 days 

8 after the date of the enactment of this Act, and annually 

9 thereafter, the Commissioner shall submit to the Com10 mittee on Finance of the Senate and the Committee on 

11 Ways and Means of the House of Representatives a report 

12 on compliance with section 307 of the Tariff Act of 1930 

13 (19 U.S.C. 1307) that includes the following: 

14 (1) The number of instances in which merchan15 dise was denied entry pursuant to that section dur16 ing the 1-year period preceding the submission of 

17 the report. 

18 (2) A description of the merchandise denied 

19 entry pursuant to that section. 

20 (3) Such other information as the Commis21 sioner considers appropriate with respect to moni22 toring and enforcing compliance with that section. 

23 SEC. 408. HONEY TRANSSHIPMENT. 

24 (a) IN GENERAL.—The Commissioner of U.S. Cus25 toms and Border Protection shall direct appropriate perVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00198 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 sonnel and resources of the U.S. Customs and Border Pro2 tection Agency to address concerns that honey is being 

3 imported into the United States in violation of the customs 

4 and trade laws of the United States. 

5 (b) COUNTRY OF ORIGIN.— 

6 (1) IN GENERAL.—The Commissioner of U.S. 

7 Customs and Border Protection shall compile a 

8 database of the individual characteristics of honey 

9 produced in foreign countries to facilitate the 

10 verification of country of origin markings of im11 ported honey. 

12 (2) ENGAGEMENT WITH FOREIGN GOVERN13 MENTS.—The Commissioner shall seek to engage the 

14 customs agencies of foreign governments for assist15 ance in compiling the database described in para16 graph (1). 

17 (3) CONSULTATION WITH INDUSTRY.—In com18 piling the database described in paragraph (1), the 

19 Commissioner shall consult with entities in the 

20 honey industry regarding the development of indus21 try standards for honey identification. 

22 (4) CONSULTATION WITH FOOD AND DRUG AD23 MINISTRATION.—In compiling the database de24 scribed in paragraph (1), the Commissioner shall 

25 consult with the Commissioner of Food and Drugs. 


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1 (c) REPORT REQUIRED.—Not later than 180 days 

2 after the date of the enactment of this Act, the Commis3 sioner of U.S. Customs and Border Protection shall sub4 mit to Congress a report that— 

5 (1) describes and assesses the limitations in the 

6 existing analysis capabilities of laboratories with re7 spect to determining the country of origin of honey 

8 samples or the percentage of honey contained in a 

9 sample; and 

10 (2) includes any recommendations of the Com11 missioner for improving such capabilities. 

12 (d) SENSE OF CONGRESS.—It is the sense of Con13 gress that the Commissioner of Food and Drugs should 

14 promptly establish a national standard of identity for 

15 honey for the Commissioner of U.S. Customs and Border 

16 Protection to use to ensure that imports of honey are— 

17 (1) classified accurately for purposes of assess18 ing duties; and 

19 (2) denied entry into the United States if such 

20 imports pose a threat to the health or safety of con21 sumers in the United States. 

22 SEC. 409. CONTRABAND ARCHAEOLOGICAL OR ETHNO23 LOGICAL MATERIALS. 

24 (a) IN GENERAL.—The Commissioner shall ensure 

25 that appropriate personnel of the U.S. Customs and BorVerDate Mar 15 2010 15:59 Mar 29, 2013 Jkt 029200 PO 00000 Frm 00200 Fmt 6652 Sfmt 6201 E:\BILLS\S662.IS S662

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1 der Protection Agency are trained in the detection, identi2 fication, and detention of archaeological or ethnological 

3 materials the importation of which violates the customs 

4 and trade laws of the United States. 

5 (b) TRAINING.—The Commissioner is authorized to 

6 accept training and other support services from experts 

7 outside of the Federal Government in the detection, identi8 fication, and detention of archaeological or ethnological 

9 materials described in subsection (a). 

10 SEC. 410. DE MINIMIS VALUE AND ENTRY UNDER REGULA11 TIONS. 

12 (a) INCREASE IN MAXIMUM VALUE OF ARTICLES

13 THAT MAY BE IMPORTED DUTY-FREE BY ONE PERSON

14 ON ONE DAY.— 

15 (1) IN GENERAL.—Section 321(a)(2)(C) of the 

16 Tariff Act of 1930 (19 U.S.C. 1321(a)(2)(C)) is 

17 amended by striking ‘‘$200’’ and inserting ‘‘$800’’. 

18 (2) EFFECTIVE DATE.—The amendment made 

19 by paragraph (1) shall apply with respect to articles 

20 entered, or withdrawn from warehouse for consump21 tion, on or after the 15th day after the date of the 

22 enactment of this Act. 

23 (b) ENTRY UNDER REGULATIONS.—Section 498 of 

24 the Tariff Act of 1930 (19 U.S.C. 1498) is amended— 


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1 (1) in subsection (a), by striking paragraph (1) 

2 and inserting the following: 

3 ‘‘(1) Merchandise, when different commercial 

4 facilitation and risk considerations that may vary for 

5 different classes or kinds of merchandise or different 

6 classes of transactions may dictate;’’; 

7 (2) by redesignating subsection (b) as sub8 section (c); and 

9 (3) by inserting after subsection (a) the fol10 lowing: 

11 ‘‘(b) ENTRY OF MERCHANDISE VALUED AT $2,500 

12 OR LESS.— 

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (2), the Secretary of the Treasury shall pre15 scribe rules and regulations for the declaration and 

16 entry of merchandise if the aggregate value of the 

17 shipment of merchandise does not exceed $2,500. 

18 ‘‘(2) EXCEPTION.—The rules and regulations 

19 prescribed under paragraph (1) shall not apply to 

20 merchandise that— 

21 ‘‘(A) has a value in excess of $250; and 

22 ‘‘(B) is classified under section VII, VIII, 

23 XI, or XII, chapter 94, or subchapter III or IV 

24 of chapter 99 of the Harmonized Tariff Sched25 ule of the United States.’’. 


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1 SEC. 411. REPEAL OF AUTHORITY OF U.S. CUSTOMS AND 

2 BORDER PROTECTION AGENCY TO ENTER 

3 INTO CERTAIN REIMBURSABLE FEE AGREE4 MENTS. 

5 Section 560 of the Department of Homeland Security 

6 Appropriations Act, 2013 (division D of the Consolidated 

7 and Further Continuing Appropriations Act, 2013) is re8 pealed. 

Æ 


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