II 

111TH CONGRESS 

1ST SESSION S. 1466 

To establish the position of Deputy United States Trade Representative 

for Trade Enforcement and a Trade Enforcement Division in the Office 

of the United States Trade Representative, to establish a Chief Manufacturing Negotiator in the Office of the United States Trade Representative, to strengthen enforcement of United States intellectual property 

rights at United States borders, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 16, 2009 

Ms. STABENOW (for herself, Mr. GRAHAM, and Mr. LEVIN) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To establish the position of Deputy United States Trade 

Representative for Trade Enforcement and a Trade Enforcement Division in the Office of the United States 

Trade Representative, to establish a Chief Manufacturing 

Negotiator in the Office of the United States Trade 

Representative, to strengthen enforcement of United 

States intellectual property rights at United States borders, 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, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Trade Enforcement Act of 2009’’. 

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

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—STRENGTHENING TRADE ENFORCEMENT BY THE 

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE 

Sec. 101. Establishment of Trade Enforcement Division and Deputy United 

States Trade Representative for Trade Enforcement. 

Sec. 102. Identification of trade enforcement priorities. 

Sec. 103. Establishment of Chief Manufacturing Negotiator. 

Sec. 104. Plan for addressing nontariff barriers to market access. 

TITLE II—STRENGTHENING ENFORCEMENT OF INTELLECTUAL 

PROPERTY RIGHTS 

Subtitle A—Definitions 

Sec. 201. Definitions. 

Subtitle B—Coordination of Enforcement of Intellectual Property Rights 

Sec. 211. Director of Intellectual Property Rights Enforcement. 

Sec. 212. Strategic plan for the enforcement of intellectual property rights. 

Sec. 213. U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement intellectual property rights coordinators. 

Subtitle C—Regulatory and Policy Improvements With Respect to Combating 

Counterfeiting and Piracy 

Sec. 221. Identification of certain unlawful goods. 

Sec. 222. Training in new technologies. 

Sec. 223. Disclosure of information and samples of shipments to intellectual 

property owners. 

Sec. 224. Improvements to recordation process. 

Sec. 225. Identification of low-risk importers. 

Sec. 226. ‘‘Watch List’’ database. 

Sec. 227. Civil fines for importation of pirated or counterfeit goods. 

Sec. 228. Report on effective collection techniques. 

Subtitle D—Training Enhancements 

Sec. 231. International training and technical assistance enhancements. 

Subtitle E—New Legal Tools for Border Enforcement 

Sec. 241. Expanded prohibitions on importation, exportation, and transshipment of counterfeit or pirated goods. 

Sec. 242. Declarations regarding counterfeit and infringing merchandise. 


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Sec. 243. Seizure and forfeiture of devices designed to circumvent intellectual 

property rights protections. 

Sec. 244. Authority of Chief Counsel of U.S. Customs and Border Protection 

to represent the United States in certain forfeiture proceedings. 

Subtitle F—Administrative Provisions 

Sec. 251. Advisory Committee on Import Safety and Intellectual Property Enforcement. 

Sec. 252. Staffing enhancements at U.S. Customs and Border Protection. 

Sec. 253. Staffing enhancements at U.S. Immigration and Customs Enforcement. 

Sec. 254. Regulatory authority. 

1 TITLE I—STRENGTHENING 

2 TRADE ENFORCEMENT BY 

3 THE OFFICE OF THE UNITED 

4 STATES TRADE REPRESENTA5 TIVE 

6 SEC. 101. ESTABLISHMENT OF TRADE ENFORCEMENT DIVI7 SION AND DEPUTY UNITED STATES TRADE 

8 REPRESENTATIVE FOR TRADE ENFORCE9 MENT. 

10 (a) ESTABLISHMENT.—Chapter 4 of title I of the 

11 Trade Act of 1974 (19 U.S.C. 2171) is amended by add12 ing at the end the following: 

13 ‘‘SEC. 142. TRADE ENFORCEMENT DIVISION AND DEPUTY 

14 UNITED STATES TRADE REPRESENTATIVE 

15 FOR TRADE ENFORCEMENT. 

16 ‘‘(a) ESTABLISHMENT OF TRADE ENFORCEMENT DI17 VISION.—There is established within the Office of the 

18 United States Trade Representative a Trade Enforcement 

19 Division (in this section referred to as the ‘Division’). 


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1 ‘‘(b) ESTABLISHMENT OF POSITION OF DEPUTY

2 UNITED STATES TRADE REPRESENTATIVE FOR TRADE

3 ENFORCEMENT.— 

4 ‘‘(1) IN GENERAL.—The Division shall be head5 ed by a Deputy United States Trade Representative 

6 for Trade Enforcement. 

7 ‘‘(2) APPOINTMENT AND NOMINATION.—The 

8 Deputy United States Trade Representative for 

9 Trade Enforcement shall be appointed by the Presi10 dent, by and with the advice and consent of the Sen11 ate. As an exercise of the rulemaking power of the 

12 Senate, any nomination of the Deputy United States 

13 Trade Representative for Trade Enforcement sub14 mitted to the Senate for its advice and consent, and 

15 referred to a committee, shall be referred to the 

16 Committee on Finance. 

17 ‘‘(3) RANK.—The Deputy United States Trade 

18 Representative for Trade Enforcement shall hold of19 fice at the pleasure of the President and shall have 

20 the rank of Ambassador. 

21 ‘‘(c) FUNCTIONS OF DEPUTY UNITED STATES

22 TRADE REPRESENTATIVE FOR TRADE ENFORCEMENT.— 

23 ‘‘(1) PRINCIPAL FUNCTION.—The principal 

24 function of the Deputy United States Trade Rep25 resentative for Trade Enforcement shall be to ensure 


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1 that United States trading partners comply with 

2 trade agreements to which the United States is a 

3 party. 

4 ‘‘(2) ADDITIONAL FUNCTIONS.—The Deputy 

5 United States Trade Representative for Trade En6 forcement shall— 

7 ‘‘(A) assist the United States Trade Rep8 resentative in investigating and prosecuting dis9 putes before the World Trade Organization and 

10 pursuant to other bilateral or regional trade 

11 agreements to which the United States is a 

12 party; 

13 ‘‘(B) assist the United States Trade Rep14 resentative in carrying out the United States 

15 Trade Representative’s functions under section 

16 141(d); 

17 ‘‘(C) make recommendations with respect 

18 to the administration of United States trade 

19 laws relating to barriers imposed by foreign 

20 governments to the importation of United 

21 States goods, services, and intellectual property, 

22 and other trade matters; and 

23 ‘‘(D) perform such other functions as the 

24 United States Trade Representative may direct. 


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1 ‘‘(d) OFFICE OF TRADE ASSISTANCE FOR SMALL

2 BUSINESSES.— 

3 ‘‘(1) ESTABLISHMENT.—There is established 

4 within the Division the Office of Trade Assistance 

5 for Small Businesses. 

6 ‘‘(2) FUNCTIONS.—The Office of Trade Assist7 ance for Small Businesses shall provide technical 

8 and legal assistance and advice to eligible small busi9 nesses to enable such small businesses to prepare 

10 and file petitions (other than those that, in the opin11 ion of the Office, are frivolous) under section 302. 

12 ‘‘(3) ELIGIBLE SMALL BUSINESS DEFINED.— 

13 The term ‘eligible small business’ means any busi14 ness concern that, in the judgment of the Office of 

15 Trade Assistance for Small Businesses, due to its 

16 size, has neither adequate internal resources nor fi17 nancial ability to obtain qualified outside assistance 

18 in preparing and filing petitions and complaints 

19 under section 302. In determining whether a busi20 ness concern is an ‘eligible small business’, the Of21 fice of Trade Assistance for Small Businesses may 

22 consult with the Administrator of the Small Busi23 ness Administration and the heads of other appro24 priate Federal departments and agencies.’’. 


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1 (b) CONFORMING AMENDMENT.—The table of con2 tents for the Trade Act of 1974 is amended by inserting 

3 after the item relating to section 141 the following: 

‘‘Sec. 142. Trade Enforcement Division and Deputy United States Trade Representative for Trade Enforcement.’’. 

4 (c) COMPENSATION FOR DEPUTY UNITED STATES

5 TRADE REPRESENTATIVE FOR TRADE ENFORCEMENT.— 

6 Section 5314 of title 5, United States Code, is amended 

7 by striking ‘‘Deputy United States Trade Representatives 

8 (3).’’ and inserting ‘‘Deputy United States Trade Rep9 resentatives (4).’’. 

10 (d) CONFORMING REPEAL.—Section 2112 of the Bi11 partisan Trade Promotion Authority Act of 2002 (19 

12 U.S.C. 3812) is repealed. 

13 SEC. 102. IDENTIFICATION OF TRADE ENFORCEMENT PRI14 ORITIES. 

15 (a) IN GENERAL.—Title III of the Trade Act of 1974 

16 (19 U.S.C. 2411 et seq.) is amended by adding at the end 

17 the following: 

18 ‘‘SEC. 311. IDENTIFICATION OF TRADE ENFORCEMENT PRI19 ORITIES. 

20 ‘‘(a) IDENTIFICATION AND ANNUAL REPORT.— 

21 ‘‘(1) IN GENERAL.—Not later than 75 days 

22 after the submission of the report required by sec23 tion 181(b), the Trade Representative shall annu24 ally— 


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1 ‘‘(A) identify United States trade enforce2 ment priorities; 

3 ‘‘(B) identify enforcement actions that the 

4 Trade Representative has taken during the pre5 vious year and review the impact such enforce6 ment actions have had on trade barriers in for7 eign countries; 

8 ‘‘(C) identify trade practices of foreign 

9 countries on which the Trade Representative 

10 will focus enforcement efforts (in this section 

11 referred to as ‘priority foreign country trade 

12 practices’); 

13 ‘‘(D) submit to the Committee on Finance 

14 of the Senate and the Committee on Ways and 

15 Means of the House of Representatives a report 

16 on the priorities, actions, and practices identi17 fied in subparagraphs (A), (B), and (C); and 

18 ‘‘(E) publish the report required by sub19 paragraph (D) in the Federal Register. 

20 ‘‘(2) FACTORS TO CONSIDER.—In identifying 

21 priority foreign country trade practices under para22 graph (1)(C), the Trade Representative shall focus 

23 on the practices the elimination of which the Trade 

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1 ther directly or through the establishment of a bene2 ficial precedent. The Trade Representative shall take 

3 into account all relevant factors, including— 

4 ‘‘(A) the major barriers and trade dis5 torting practices described in the most recent 

6 available report submitted under section 181(b), 

7 including any practices identified pursuant to a 

8 review of a trade agreement conducted under 

9 section 1377 of the Omnibus Trade and Com10 petitiveness Act of 1988 (19 U.S.C. 3106); 

11 ‘‘(B) the findings and practices described 

12 in the most recent available report required 

13 under— 

14 ‘‘(i) section 182; 

15 ‘‘(ii) section 3005 of the Omnibus 

16 Trade and Competitiveness Act of 1988 

17 (22 U.S.C. 5305); 

18 ‘‘(iii) section 421 of the U.S.-China 

19 Relations Act of 2000 (22 U.S.C. 6951); 

20 and 

21 ‘‘(iv) any other report relating to 

22 international trade and investment pre23 pared by the Trade Representative or any 

24 other agency; 


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1 ‘‘(C) the trade agreements to which a for2 eign country is a party and the compliance of 

3 the foreign country with such agreements; 

4 ‘‘(D) the medium- and long-term implica5 tions of the procurement plans of foreign gov6 ernments; and 

7 ‘‘(E) the international competitive position 

8 and export potential of United States products 

9 and services. 

10 ‘‘(3) OTHER ITEMS IN REPORT.—The Trade 

11 Representative may include in the report required by 

12 paragraph (1)(D) a description of foreign country 

13 trade practices that may in the future warrant iden14 tification as priority foreign country trade practices. 

15 ‘‘(b) CONSULTATION.— 

16 ‘‘(1) IN GENERAL.—Not later than 45 days 

17 after the submission of the report required by sec18 tion 181(b), the Trade Representative shall consult 

19 with the Committee on Finance of the Senate and 

20 the Committee on Ways and Means of the House of 

21 Representatives with respect to the priorities, ac22 tions, and practices to be identified in the report re23 quired by subsection (a)(1)(D). 

24 ‘‘(2) VOTE OF COMMITTEE.—If, as a result of 

25 the consultations described in paragraph (1), either 


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1 the Committee on Finance of the Senate or the 

2 Committee on Ways and Means of the House of 

3 Representatives requests by majority vote that a 

4 trade practice of a foreign country be identified as 

5 a priority foreign country trade practice, the Trade 

6 Representative shall include such identification in 

7 the report required by subsection (a)(1)(D). 

8 ‘‘(3) DETERMINATION NOT TO INCLUDE PRI9 ORITY FOREIGN COUNTRY TRADE PRACTICES.—The 

10 Trade Representative may determine not to include 

11 the identification of a priority foreign country trade 

12 practice requested under paragraph (2) in the report 

13 required by subsection (a)(1)(D) only if— 

14 ‘‘(A) the Trade Representative finds 

15 that— 

16 ‘‘(i) the practice is already being ad17 dressed— 

18 ‘‘(I) under provisions of United 

19 States trade law; 

20 ‘‘(II) under the Uruguay Round 

21 Agreements (as defined in section 

22 2(7) of the Uruguay Round Agree23 ments Act (19 U.S.C. 3501(7))); 

24 ‘‘(III) under any bilateral or re25 gional trade agreement; or 


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1 ‘‘(IV) as part of trade negotia2 tions with the foreign country or other 

3 countries engaging in the practice; 

4 and 

5 ‘‘(ii) progress is being made toward 

6 the elimination of the practice; or 

7 ‘‘(B) the Trade Representative finds that 

8 identification of the practice as a priority for9 eign country trade practice would be contrary 

10 to the interests of the United States. 

11 ‘‘(4) REASONS FOR DETERMINATION.—In the 

12 case of a determination made pursuant to paragraph 

13 (3), the Trade Representative shall set forth in de14 tail the reasons for that determination in the report 

15 required by subsection (a)(1)(D). 

16 ‘‘(c) INVESTIGATION AND RESOLUTION.— 

17 ‘‘(1) IN GENERAL.—Upon submission of the re18 port required by subsection (a)(1)(D), the Trade 

19 Representative shall, with respect to any priority for20 eign country trade practice identified, seek satisfac21 tory resolution with the foreign country or countries 

22 engaging in the practice pursuant to paragraph (2). 

23 A satisfactory resolution may include the elimination 

24 of the practice or, if elimination of the practice is 


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1 not feasible, the provision of compensatory trade 

2 benefits. 

3 ‘‘(2) CONSULTATIONS; INVESTIGATIONS.—Not 

4 later than 120 days after the submission of the re5 port required by subsection (a)(1)(D), the Trade 

6 Representative shall, with respect to any priority for7 eign country trade practice identified in the report— 

8 ‘‘(A) initiate dispute settlement consulta9 tions in the World Trade Organization; 

10 ‘‘(B) initiate dispute settlement consulta11 tions under the applicable provisions of any bi12 lateral or regional trade agreement to which the 

13 United States is a party; 

14 ‘‘(C) initiate an investigation under section 

15 302(b); 

16 ‘‘(D) seek to negotiate an agreement that 

17 provides for the elimination of the priority for18 eign country trade practice or, if elimination of 

19 the practice is not feasible, an agreement that 

20 provides for compensatory trade benefits; or 

21 ‘‘(E) take any other action necessary to 

22 eliminate the priority foreign country trade 

23 practice. 

24 ‘‘(3) REPORT.—On the day on which the Trade 

25 Representative takes action under subparagraph (E) 


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1 of paragraph (2), the Trade Representative shall 

2 submit to Congress a report— 

3 ‘‘(A) describing the action taken under 

4 such subparagraph and the reasons for taking 

5 the action; and 

6 ‘‘(B) stating in detail the reasons the 

7 Trade Representative did not take action under 

8 subparagraphs (A) through (D) of paragraph 

9 (2). 

10 ‘‘(d) ADDITIONAL REPORTING.—Not later than 6 

11 months after the date of the enactment of this Act, and 

12 every 6 months thereafter, the Trade Representative shall 

13 report to the Committee on Finance of the Senate and 

14 the Committee on Ways and Means of the House of Rep15 resentatives on— 

16 ‘‘(1) the progress being made to achieve the 

17 trade enforcement priorities identified in subsection 

18 (a)(1)(A); and 

19 ‘‘(2) the steps being taken to address the pri20 ority foreign country trade practices identified in 

21 subsection (a)(1)(C).’’. 

22 (b) CONFORMING AMENDMENT.—The table of con23 tents of the Trade Act of 1974 is amended by inserting 

24 after the item relating to section 310 the following: 

‘‘Sec. 311. Identification of trade enforcement priorities.’’. 


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1 SEC. 103. ESTABLISHMENT OF CHIEF MANUFACTURING NE2 GOTIATOR. 

3 (a) ESTABLISHMENT OF POSITION.—Section 

4 141(b)(2) of the Trade Act of 1974 (19 U.S.C. 

5 2171(b)(2)) is amended to read as follows: 

6 ‘‘(2) There shall be in the Office 3 Deputy United 

7 States Trade Representatives, 1 Chief Agricultural Nego8 tiator, and 1 Chief Manufacturing Negotiator who shall 

9 all be appointed by the President, by and with the advice 

10 and consent of the Senate. As an exercise of the rule11 making power of the Senate, any nomination of a Deputy 

12 United States Trade Representative, the Chief Agricul13 tural Negotiator, or the Chief Manufacturing Negotiator 

14 submitted to the Senate for its advice and consent, and 

15 referred to a committee, shall be referred to the Com16 mittee on Finance. Each Deputy United States Trade 

17 Representative, the Chief Agricultural Negotiator, and the 

18 Chief Manufacturing Negotiator shall hold office at the 

19 pleasure of the President and shall have the rank of Am20 bassador.’’. 

21 (b) FUNCTIONS OF POSITION.—Section 141(c) of the 

22 Trade Act of 1974 (19 U.S.C. 2171(c)) is amended— 

23 (1) by moving paragraph (5) 2 ems to the left; 

24 and 

25 (2) by adding at the end the following new 

26 paragraph: 


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1 ‘‘(6)(A) The principal function of the Chief Manufac2 turing Negotiator shall be to conduct trade negotiations 

3 and to enforce trade agreements relating to United States 

4 manufacturing products and services. The Chief Manufac5 turing Negotiator shall be a vigorous advocate on behalf 

6 of United States manufacturing interests and shall per7 form such other functions as the United States Trade 

8 Representative may direct. 

9 ‘‘(B) Not later than 1 year after the date of the en10 actment of this paragraph, and annually thereafter, the 

11 Chief Manufacturing Negotiator shall submit to the Com12 mittee on Finance of the Senate and the Committee on 

13 Ways and Means of the House of Representatives a report 

14 on the actions taken by the Chief Manufacturing Nego15 tiator in the preceding year.’’. 

16 (c) COMPENSATION.—Section 5314 of title 5, United 

17 States Code, as amended by section 101(c), is further 

18 amended by inserting ‘‘Chief Manufacturing Negotiator.’’ 

19 after ‘‘Chief Agricultural Negotiator.’’. 

20 (d) TECHNICAL AMENDMENTS.—Section 141(e) of 

21 the Trade Act of 1974 (19 U.S.C. 2171(e)) is amended— 

22 (1) in paragraph (1), by striking ‘‘5314’’ and 

23 inserting ‘‘5315’’; and 

24 (2) in paragraph (2), by striking ‘‘the max25 imum rate of pay for grade GS–18, as provided in 


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1 section 5332’’ and inserting ‘‘the maximum rate of 

2 pay for level IV of the Executive Schedule in section 

3 5315’’. 

4 SEC. 104. PLAN FOR ADDRESSING NONTARIFF BARRIERS 

5 TO MARKET ACCESS. 

6 Not later than 180 days after the date of the enact7 ment of this Act, the Deputy United States Trade Rep8 resentative for Trade Enforcement shall submit to the 

9 Committee on Commerce, Science, and Transportation 

10 and the Committee on Finance of the Senate and the 

11 Committee on Energy and Commerce and the Committee 

12 on Ways and Means of the House of Representatives a 

13 plan for addressing nontariff barriers affecting market ac14 cess for United States companies in any country with re15 spect to which the United States has entered into a bilat16 eral or regional trade agreement or is negotiating such an 

17 agreement. 

18 TITLE II—STRENGTHENING EN19 FORCEMENT OF INTELLEC20 TUAL PROPERTY RIGHTS 

21 Subtitle A—Definitions 

22 SEC. 201. DEFINITIONS. 

23 In this title: 

24 (1) ADVISORY COMMITTEE.—The term ‘‘Advi25 sory Committee’’ means the Advisory Committee on 


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1 Import Safety and Intellectual Property Rights En2 forcement established pursuant to section 251. 

3 (2) COMMISSIONER.—The term ‘‘Commis4 sioner’’ means the Commissioner responsible for 

5 U.S. Customs and Border Protection. 

6 (3) COUNTERFEITING; COUNTERFEIT GOODS.— 

7 (A) COUNTERFEITING.—The term ‘‘coun8 terfeiting’’ means activities related to produc9 tion of or trafficking in goods, including pack10 aging, that bear a spurious mark or designation 

11 that is identical to or substantially indistin12 guishable from a mark or designation protected 

13 under the trademark laws or related laws.

14 (B) COUNTERFEIT GOODS.—The term 

15 ‘‘counterfeit goods’’ means goods described in 

16 subparagraph (A). 

17 (4) DIRECTOR.—The term ‘‘Director’’ means 

18 the Director of Intellectual Property Rights Enforce19 ment of the Department of the Treasury established 

20 under section 211. 

21 (5) ENFORCEMENT OF INTELLECTUAL PROP22 ERTY RIGHTS.—The term ‘‘enforcement of intellec23 tual property rights’’ means activities to enforce— 

24 (A) copyrights, patents, trademarks, and 

25 other forms of intellectual property, including 


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1 activities to control counterfeiting and piracy; 

2 and 

3 (B) exclusion orders issued by the United 

4 States International Trade Commission by rea5 son of any of subparagraphs (B) through (E) of 

6 subsection (a)(1) of section 337 of the Tariff 

7 Act of 1930 (19 U.S.C. 1337(a)(1) (B) through 

8 (E)). 

9 (6) EXCLUSION ORDER.—The term ‘‘exclusion 

10 order’’ means an order of the United States Inter11 national Trade Commission issued under section 337 

12 (d) or (e) of the Tariff Act of 1930 (19 U.S.C. 1337 

13 (d) and (e)) to exclude goods from entry into the 

14 United States. 

15 (7) PIRACY; PIRATED GOODS.— 

16 (A) PIRACY.—The term ‘‘piracy’’ means 

17 activities related to production of or trafficking 

18 in unauthorized copies or phonorecords of 

19 works protected under title 17, United States 

20 Code, or related laws. 

21 (B) PIRATED GOODS.—The term ‘‘pirated 

22 goods’’ means copies or phonorecords described 

23 in subparagraph (A). 


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1 (8) SECRETARY.—Except as otherwise provided, 

2 the term ‘‘Secretary’’ means the Secretary of the 

3 Treasury. 

4 (9) TRANSSHIPMENT.—The term ‘‘trans5 shipment’’ means the shipment of goods through one 

6 country that is an intermediate destination to an7 other country that is the final destination of the 

8 goods. 

9 Subtitle B—Coordination of En10 forcement of Intellectual Prop11 erty Rights 

12 SEC. 211. DIRECTOR OF INTELLECTUAL PROPERTY RIGHTS 

13 ENFORCEMENT. 

14 (a) ESTABLISHMENT.—There is established within 

15 the Department of the Treasury the position of Director 

16 of Intellectual Property Rights Enforcement. 

17 (b) APPOINTMENT.—The Director shall be appointed 

18 by the Secretary, and shall be responsible to and shall re19 port directly to the Deputy Secretary of the Treasury. 

20 (c) DUTIES.—The Director shall— 

21 (1) coordinate all activities of the Department 

22 of the Treasury involving the enforcement of intel23 lectual property rights and coordinate with U.S. 

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1 tion and Customs Enforcement with respect to such 

2 enforcement; 

3 (2) oversee the development and implementa4 tion of the strategic plan for the enforcement of in5 tellectual property rights required under section 212; 

6 (3) coordinate the policy and regulatory 

7 changes set forth in this title; 

8 (4) serve as staff representative of the Depart9 ment of the Treasury in interagency bodies with re10 sponsibility for coordination of activities involving 

11 the enforcement of intellectual property rights; 

12 (5) conduct an evaluation of the effectiveness of 

13 the organizational structure of U.S. Customs and 

14 Border Protection for reducing the entry into the 

15 United States of counterfeit or pirated goods, goods 

16 in violation of exclusion orders, and other goods in 

17 violation of other intellectual property rights; and 

18 (6) carry out other duties, as assigned by the 

19 Secretary or Deputy Secretary of the Treasury, to 

20 improve the effectiveness of the efforts of the De21 partment of the Treasury under the laws within its 

22 jurisdiction with respect to the enforcement of intel23 lectual property rights. 


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1 SEC. 212. STRATEGIC PLAN FOR THE ENFORCEMENT OF IN2 TELLECTUAL PROPERTY RIGHTS. 

3 (a) IN GENERAL.—The Director shall develop, for 

4 approval by the Deputy Secretary of the Treasury, an an5 nual strategic plan for the enforcement of intellectual 

6 property rights. 

7 (b) CONSULTATION.—In developing the annual stra8 tegic plan required under subsection (a), the Director shall 

9 consult with— 

10 (1) the Advisory Committee; 

11 (2) the U.S. Customs and Border Protection 

12 Intellectual Property Rights Coordinator and the 

13 U.S. Immigration and Customs Enforcement Intel14 lectual Property Rights Coordinator appointed under 

15 section 213; 

16 (3) all entities within the Department of the 

17 Treasury with expertise and experience in the en18 forcement of intellectual property rights; 

19 (4) other agencies of the executive branch en20 gaged in the enforcement of intellectual property 

21 rights, including any officials designated to coordi22 nate such enforcement efforts on an interagency 

23 basis; and 

24 (5) officials from foreign law enforcement agen25 cies and international organizations, including the 

26 World Customs Organization, with experience and 


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1 expertise in border control measures relating to the 

2 enforcement of intellectual property rights. 

3 (c) CONTENTS OF PLAN.—The annual strategic plan 

4 shall set forth objectives, goals, and strategies for more 

5 effective use of the authorities of U.S. Customs and Bor6 der Protection and U.S. Immigration and Customs En7 forcement relating to the enforcement of intellectual prop8 erty rights, and shall— 

9 (1) provide for specific measurement of the cur10 rent effectiveness of enforcement tools, including 

11 targeting, examination, post-entry auditing, and pen12 alty actions; 

13 (2) give priority to those enforcement tools de14 termined under paragraph (1) to be most effective; 

15 (3) identify best practices, both in the United 

16 States and abroad, with respect to the enforcement 

17 of intellectual property rights, taking into account 

18 the practices of enforcement authorities of other 

19 countries, and implement those practices; 

20 (4) identify and apply the specific performance 

21 measures to be used to evaluate the progress of U.S. 

22 Customs and Border Protection and U.S. Immigra23 tion and Customs Enforcement in improving the ef24 fectiveness of efforts relating to the enforcement of 

25 intellectual property rights; 


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1 (5) address border control programs adminis2 tered by U.S. Customs and Border Protection and 

3 U.S. Immigration and Customs Enforcement at 

4 ports of entry for passengers and freight, and at 

5 points of entry for postal and courier services, as 

6 well as for goods being transshipped through United 

7 States ports and in the process of being exported 

8 from the United States; 

9 (6) require cooperation between U.S. Customs 

10 and Border Protection and U.S. Immigration and 

11 Customs Enforcement and State and local law en12 forcement agencies with respect to the enforcement 

13 of intellectual property rights and sharing informa14 tion with respect to detained shipments of goods 

15 suspected of violating intellectual property rights at 

16 ports of entry; 

17 (7) recommend the optimal feasible allocation of 

18 human, financial, physical, and technological re19 sources that U.S. Customs and Border Protection 

20 and U.S. Immigration and Customs Enforcement 

21 should use to achieve the goals of the annual stra22 tegic plan; 

23 (8) report on the key activities of U.S. Customs 

24 and Border Protection and U.S. Immigration and 

25 Customs Enforcement during the preceding year 


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1 with respect to the enforcement of intellectual prop2 erty rights; and 

3 (9) contain such other information as the Di4 rector considers appropriate to convey what U.S. 

5 Customs and Border Protection and U.S. Immigra6 tion and Customs Enforcement will do, over the fol7 lowing year, with respect to the enforcement of intel8 lectual property rights and reducing the costs that 

9 violations of intellectual property rights impose on 

10 the United States economy and public safety. 

11 (d) APPROVAL OF PLAN BY DEPUTY SECRETARY OF

12 THE TREASURY.—The Director shall submit the annual 

13 strategic plan to the Deputy Secretary of the Treasury 

14 for approval, who shall ensure that the plan is consistent 

15 with any other relevant interagency strategic plans. 

16 (e) SUBMISSION TO CONGRESS.—After approving the 

17 annual strategic plan under subsection (d), the Deputy 

18 Secretary of the Treasury shall transmit the annual stra19 tegic plan to the Committee on Finance of the Senate and 

20 the Committee on Ways and Means of the House of Rep21 resentatives, along with any recommendations of the De22 partment of the Treasury for statutory changes or funding 

23 authorizations needed to improve the effectiveness of the 

24 Department’s efforts with respect to the enforcement of 

25 intellectual property rights. 


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1 (f) TIMING.—The Deputy Secretary of the Treasury 

2 shall submit the annual strategic plan under subsection 

3 (d) not later than 180 days after the date of the enact4 ment of this Act and annually thereafter. 

5 SEC. 213. U.S. CUSTOMS AND BORDER PROTECTION AND 

6 U.S. IMMIGRATION AND CUSTOMS ENFORCE7 MENT INTELLECTUAL PROPERTY RIGHTS CO8 ORDINATORS. 

9 (a) U.S. CUSTOMS AND BORDER PROTECTION IN10 TELLECTUAL PROPERTY RIGHTS COORDINATOR.— 

11 (1) APPOINTMENT.—The Commissioner shall 

12 appoint a U.S. Customs and Border Protection coor13 dinator of intellectual property rights enforcement 

14 activities (in this subtitle referred to as the ‘‘U.S. 

15 Customs and Border Protection Intellectual Prop16 erty Rights Coordinator’’), who shall report directly 

17 to the Commissioner. 

18 (2) DUTIES.—The U.S. Customs and Border 

19 Protection Intellectual Property Rights Coordinator 

20 shall— 

21 (A) assist the Director of Intellectual 

22 Property Rights Enforcement of the Depart23 ment of the Treasury in the development of the 

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1 mentation of those aspects of the plan that in2 volve U.S. Customs and Border Protection; 

3 (B) coordinate all efforts, at all ports of 

4 entry and elsewhere, carried out by U.S. Cus5 toms and Border Protection with respect to the 

6 enforcement of intellectual property rights, in7 cluding training and staffing; 

8 (C) supervise the implementation of those 

9 aspects of the regulatory and policy reforms set 

10 out in this title that involve U.S. Customs and 

11 Border Protection and submit a report on such 

12 activities to the Director to be included in the 

13 annual strategic plan required under section 

14 212; and 

15 (D) carry out such other duties, as as16 signed by the Commissioner, the purpose of 

17 which are to improve the performance of U.S. 

18 Customs and Border Protection with respect to 

19 the enforcement of intellectual property rights. 

20 (b) U.S. IMMIGRATION AND CUSTOMS ENFORCE21 MENT INTELLECTUAL PROPERTY RIGHTS COORDI22 NATOR.— 

23 (1) APPOINTMENT.—The Assistant Secretary 

24 for United States Immigration and Customs En25 forcement shall appoint an U.S. Immigration and 


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1 Customs Enforcement coordinator of intellectual 

2 property enforcement activities (in this subtitle re3 ferred to as the ‘‘U.S. Immigration and Customs 

4 Enforcement Intellectual Property Rights Coordi5 nator’’), who shall report directly to the Assistant 

6 Secretary for U.S. Immigration and Customs En7 forcement. 

8 (2) DUTIES.—The U.S. Immigration and Cus9 toms Enforcement Intellectual Property Rights Co10 ordinator shall— 

11 (A) assist the Director of Intellectual 

12 Property Rights Enforcement of the Depart13 ment of the Treasury in the development of the 

14 annual strategic plan and coordinate the imple15 mentation of those aspects of the plan that in16 volve U.S. Immigration and Customs Enforce17 ment; 

18 (B) coordinate all efforts carried out by 

19 U.S. Immigration and Customs Enforcement 

20 with respect to the enforcement of intellectual 

21 property rights, including training and staffing; 

22 (C) supervise the implementation of those 

23 aspects of the regulatory and policy reforms set 

24 out in this title that involve U.S. Immigration 

25 and Customs Enforcement; and 


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1 (D) carry out such other duties, as as2 signed by the Assistant Secretary for U.S. Im3 migration and Customs Enforcement, the pur4 pose which are to improve the performance of 

5 U.S. Immigration and Customs Enforcement 

6 with respect to the enforcement of intellectual 

7 property rights. 

8 Subtitle C—Regulatory and Policy 

9 Improvements With Respect to 

10 Combating Counterfeiting and 

11 Piracy 

12 SEC. 221. IDENTIFICATION OF CERTAIN UNLAWFUL GOODS. 

13 (a) IN GENERAL.—The Secretary, acting through the 

14 Commissioner, shall prescribe regulations to apply risk as15 sessment modeling techniques to border enforcement ac16 tivities with respect to combating counterfeiting and pi17 racy. Such efforts shall include— 

18 (1) preparing a report on and evaluation of the 

19 pilot project of U.S. Customs and Border Protection 

20 with respect to shipments of counterfeit or pirated 

21 products; 

22 (2) expanding the pilot project to allow for the 

23 use of the Automated Targeting System in risk as24 sessment modeling; and 


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1 (3) developing a plan for the development, test2 ing, evaluation, and continuous improvement of risk 

3 assessment modeling techniques to facilitate the en4 forcement of intellectual property rights. 

5 (b) INCLUSION IN STRATEGIC PLAN.—The report de6 scribed in subsection (a)(1), and the plan described in sub7 section (a)(3), shall be included in the annual strategic 

8 plan that is required under section 212. 

9 SEC. 222. TRAINING IN NEW TECHNOLOGIES. 

10 (a) TRAINING OF PERSONNEL.—The Commissioner 

11 shall consult with the Advisory Committee to determine 

12 the feasibility of training U.S. Customs and Border Pro13 tection personnel in the use of new technological means 

14 for detecting and identifying, at ports of entry, counterfeit 

15 and pirated goods, and goods that are subject to exclusion 

16 orders, whether for entry into the United States or for 

17 transshipment to other destinations. 

18 (b) IDENTIFICATION OF TECHNOLOGIES AND

19 SOURCES OF TRAINING.—In consultation with the Advi20 sory Committee, the Commissioner shall identify— 

21 (1) cost-effective technologies for detecting and 

22 identifying goods described in subsection (a) at ports 

23 of entry; and 


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1 (2) economical sources for training U.S. Cus2 toms and Border Protection personnel in the use of 

3 such technologies. 

4 (c) REGULATORY AND POLICY CHANGES.—The 

5 Comptroller General of the United States shall submit to 

6 Congress a report analyzing the costs and benefits of mak7 ing regulatory and policy changes to enable the receipt of 

8 donations of hardware, software, equipment, and similar 

9 technologies, and the acceptance of training and other 

10 support services, from the private sector, to facilitate the 

11 training of personnel of U.S. Customs and Border Protec12 tion under subsection (a). 

13 SEC. 223. DISCLOSURE OF INFORMATION AND SAMPLES OF 

14 SHIPMENTS TO INTELLECTUAL PROPERTY 

15 OWNERS. 

16 The Commissioner shall prescribe regulations to— 

17 (1) improve the process of making samples of 

18 shipments of goods suspected of violating intellectual 

19 property rights available to the owners of copyrights, 

20 trademarks, patents, and other forms of intellectual 

21 property, in an efficient and cost-effective manner, 

22 for the purpose of inspection or analysis, including 

23 by developing a process under which— 


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1 (A) a requirement that such an owner post 

2 a bond to receive such a sample may be waived 

3 if the value of the sample is less than $100; or 

4 (B) such an owner may elect to obtain a 

5 continuous bond with respect to such samples; 

6 and 

7 (2) increase disclosure to owners of copyrights, 

8 trademarks, patents, and other forms of intellectual 

9 property of information about shipments of goods 

10 that have been detained at ports of entry on sus11 picion that the importation into, or transshipment 

12 through, the United States of those goods would vio13 late the intellectual property rights of such owners, 

14 including— 

15 (A) providing a detailed description of the 

16 goods, including information on the packaging 

17 of the goods such as expiration dates and 

18 model, lot, batch, part, or serial numbers or 

19 universal product codes (UPC); 

20 (B) providing photographs of the goods 

21 that do not mask identifying information about 

22 the goods; 

23 (C) disclosing the identities and contact in24 formation of all parties involved in the ship25 ments, including importers, exporters, declarVerDate Nov 24 2008 05:53 Jul 17, 2009 Jkt 079200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S1466.IS S1466

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1 ants, consignees, freight forwarders, and ware2 house owners; 

3 (D) identifying points of origin and des4 tination of the shipments; and 

5 (E) providing any other documents relat6 ing to the shipments. 

7 SEC. 224. IMPROVEMENTS TO RECORDATION PROCESS. 

8 (a) IMPROVEMENTS IN RECORDATION PROCESS.— 

9 The Commissioner shall prescribe regulations to ensure 

10 that the system for recordation of copyrights, trademarks, 

11 patents, and other forms of intellectual property that may 

12 be subject to recordation, does not impede the rapid sei13 zure of goods that violate the rights of the owners of such 

14 copyrights, trademarks, patents, and other forms of intel15 lectual property. 

16 (b) SIMULTANEOUS RECORDATION.— 

17 (1) IN GENERAL.—In consultation with the 

18 Under Secretary of Commerce for Intellectual Prop19 erty and Director of the United States Patent and 

20 Trademark Office, and the Register of Copyrights, 

21 the Commissioner shall develop a system pursuant to 

22 which— 

23 (A) trademarks may be recorded with U.S. 

24 Customs and Border Protection simultaneously 


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1 with the issuance of trademark registration; 

2 and 

3 (B) copyrights of audiovisual works and 

4 sound recordings may be recorded with U.S. 

5 Customs and Border Protection simultaneously 

6 with the filing of an application for a certificate 

7 of copyright registration or an application for 

8 registration of another intellectual property 

9 right under title 17, United States Code. 

10 (2) DEFINITIONS.—In this subsection, the 

11 terms ‘‘audiovisual works’’ and ‘‘sound recordings’’ 

12 have the meanings given those terms in section 101 

13 of title 17, United States Code. 

14 SEC. 225. IDENTIFICATION OF LOW-RISK IMPORTERS. 

15 (a) IN GENERAL.—The Commissioner shall develop 

16 a voluntary certification program for importers that have 

17 taken specific measures to strengthen and protect their 

18 supply chains to prevent the infiltration into the inter19 national supply chain of counterfeit and pirated goods, 

20 goods that are the subject to exclusion orders, and goods 

21 that violate other forms of intellectual property rights. 

22 (b) SELF-CERTIFICATION.—The voluntary certifi23 cation program developed under subsection (a) shall rely 

24 primarily on self-certification by importers in determining 

25 the eligibility of importers for the program. 


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1 (c) THIRD PARTY VERIFICATIONS.—The Commis2 sioner shall identify any circumstances, such as importa3 tion from any country with a history of being identified 

4 under section 182 of the Trade Act of 1974 (19 U.S.C. 

5 2242) as denying adequate and effective protection of in6 tellectual property rights, under which third party 

7 verifications shall be required to determine the eligibility 

8 of importers for the voluntary certification program. 

9 (d) BENEFITS.—An importer determined to be eligi10 ble for the voluntary certification program and to have 

11 taken the measures required under subsection (a) may re12 ceive benefits with respect to customs requirements, such 

13 as reduced inspections from U.S. Customs and Border 

14 Protection. 

15 (e) DEFINITION.—In this section, the term ‘‘inter16 national supply chain’’ has the meaning given that term 

17 in section 2 of the Security and Accountability for Every 

18 Port Act of 2006 (6 U.S.C. 901). 

19 SEC. 226. ‘‘WATCH LIST’’ DATABASE. 

20 (a) IN GENERAL.—The Secretary, acting through the 

21 Commissioner, shall develop and implement a database of 

22 importers, shippers, freight forwarders, and other partici23 pants in the import, export, and transshipment process, 

24 whose activities the Commissioner determines merit spe25 cial scrutiny at ports of entry because of the risk of imporVerDate Nov 24 2008 05:53 Jul 17, 2009 Jkt 079200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S1466.IS S1466

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1 tation, exportation, or transshipment of goods that violate 

2 intellectual property rights or exclusion orders. 

3 (b) PLAN.—The Secretary, acting through the Com4 missioner, shall develop a plan to implement the database 

5 required under subsection (a). The plan shall— 

6 (1) identify legitimate information sources to be 

7 used in determining whether to place persons on the 

8 database from— 

9 (A) within U.S. Customs and Border Pro10 tection; 

11 (B) other law enforcement sources; and 

12 (C) the private sector; 

13 (2) establish criteria under which the database 

14 should be made available— 

15 (A) to qualified officers of U.S. Customs 

16 and Border Protection and other law enforce17 ment agencies; 

18 (B) for intelligence purposes; and 

19 (C) for use in identifying shipments for en20 hanced inspection; 

21 (3) identify any regulatory or policy changes 

22 that are necessary to make the database operational; 

23 (4) contain any recommendations for statutory 

24 changes to improve the effectiveness of the database; 


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1 (5) include an estimate of the resources nec2 essary to implement and operate the database and to 

3 evaluate its effectiveness; and 

4 (6) include a timetable for implementation of 

5 the database. 

6 (c) CONSULTATIONS WITH ADVISORY COMMITTEE.— 

7 The Commissioner shall consult with the Advisory Com8 mittee on the development of criteria for the database. 

9 (d) TIMING.—The Commissioner shall complete the 

10 plan required under subsection (b) in a timely fashion that 

11 will permit the inclusion of the plan in the first annual 

12 strategic plan required under section 212. 

13 SEC. 227. CIVIL FINES FOR IMPORTATION OF PIRATED OR 

14 COUNTERFEIT GOODS. 

15 (a) LIMITATION ON MITIGATION, DISMISSAL, AND

16 VACATION OF FINES.—Unless otherwise ordered by a 

17 court of competent jurisdiction, any civil fine imposed pur18 suant to section 526(f) of the Tariff Act of 1930 (19 

19 U.S.C. 1526(f))— 

20 (1) may not be mitigated, except pursuant to 

21 regulations issued by the Commissioner; and 

22 (2) may not be dismissed or vacated, except 

23 pursuant to regulations issued by the Commissioner 

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1 sioner or the Commissioner’s designee for such dis2 missal or vacation. 

3 (b) EXTRAORDINARY CASES.—In issuing regulations 

4 under subsection (a), the Commissioner shall ensure that 

5 the mitigation, dismissal, or vacation of civil fines for in6 volvement in the importation, exportation, or trans7 shipment of pirated or counterfeit goods is limited to ex8 traordinary cases in which the interests of justice will 

9 clearly be served by such action. 

10 SEC. 228. REPORT ON EFFECTIVE COLLECTION TECH11 NIQUES. 

12 (a) IN GENERAL.—The Commissioner shall submit to 

13 the Committee on Finance of the Senate and the Com14 mittee on Ways and Means of the House of Representa15 tives a report on— 

16 (1) the extent to which U.S. Customs and Bor17 der Protection uses effective collection techniques for 

18 collecting civil fines imposed on persons that import, 

19 export, or transship pirated or counterfeit goods; 

20 (2) any recommendations with respect to im21 proving the use of such techniques by U.S. Customs 

22 and Border Protection; 

23 (3) any recommendations with respect to 

24 whether— 


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1 (A) owners of copyrights or trademarks 

2 should be authorized to pursue and collect fines 

3 imposed as a result of activities that violate 

4 such copyrights or trademarks; and 

5 (B) such owners should be allowed to re6 tain some or all of any funds so collected; and 

7 (4) any other recommendations for statutory, 

8 regulatory, or policy changes not under the control 

9 of U.S. Customs and Border Protection to improve 

10 the agency’s ability— 

11 (A) to impose civil fines on persons that 

12 import, export, or transship pirated or counter13 feit goods, at levels that would deter such im14 portation, exportation, and transshipment; and 

15 (B) to collect such fines. 

16 (b) EFFECTIVE COLLECTION TECHNIQUES.—In this 

17 section, the term ‘‘effective collection techniques’’ in18 cludes— 

19 (1) confiscation of the proceeds of actions for 

20 which civil fines can be imposed; 

21 (2) seizure of property acquired with such pro22 ceeds; 

23 (3) imposition of liens on the real or personal 

24 property of persons upon whom civil fines are im25 posed; 


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1 (4) use of bonds to secure full payment of fines; 

2 (5) in any case in which an entity is liable and 

3 has no assets or is no longer in business, holding lia4 ble any person who— 

5 (A) was an officer or director of the entity; 

6 (B) in the case of a corporation, held at 

7 least 5 percent (by vote or value) of the capital 

8 structure of the corporation; or 

9 (C) in the case of any other entity, held in10 terests representing at least 5 percent of the 

11 capital structure of the entity; and 

12 (6) engaging private sector entities to collect 

13 civil fines imposed. 

14 Subtitle D—Training 

15 Enhancements 

16 SEC. 231. INTERNATIONAL TRAINING AND TECHNICAL AS17 SISTANCE ENHANCEMENTS. 

18 The Secretary shall take the necessary steps— 

19 (1) to increase staffing and resources of offices 

20 of U.S. Customs and Border Protection and U.S. 

21 Immigration and Customs Enforcement engaged in 

22 providing training and technical assistance to the 

23 customs services and enforcement agencies of other 

24 countries in order to improve the effectiveness of 


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1 such customs services and enforcement agencies with 

2 respect to— 

3 (A) detecting and intercepting the expor4 tation, importation, and transshipment of coun5 terfeit or pirated goods, goods that are the sub6 ject to exclusion orders, and goods that violate 

7 other forms of intellectual property rights; and 

8 (B) imposing penalties on persons that ex9 port, import, or transship counterfeit or pirated 

10 goods at levels that will deter such exportation, 

11 importation, and transshipment; and 

12 (2) to ensure that the Director, in order to 

13 make the most efficient and effective use of training 

14 and technical assistance resources— 

15 (A) coordinates the international training 

16 and technical assistance activities of U.S. Cus17 toms and Border Protection and U.S. Immigra18 tion and Customs Enforcement as part of the 

19 Director’s coordination responsibilities under 

20 section 211; 

21 (B) gives priority to international training 

22 and technical assistance activities in countries 

23 in which such activities can be carried out most 

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1 tecting the intellectual property rights of United 

2 States persons; 

3 (C) takes steps to minimize duplication, 

4 overlap, or inconsistency of international train5 ing and technical assistance efforts; and 

6 (D) coordinates such activities of the De7 partment of the Treasury with international 

8 training and technical assistance activities 

9 against counterfeiting and piracy carried out by 

10 other agencies, and enhances the participation 

11 of Department of the Treasury personnel in 

12 interagency training and technical assistance 

13 activities in this field. 

14 Subtitle E—New Legal Tools for 

15 Border Enforcement 

16 SEC. 241. EXPANDED PROHIBITIONS ON IMPORTATION, EX17 PORTATION, AND TRANSSHIPMENT OF COUN18 TERFEIT OR PIRATED GOODS. 

19 (a) IN GENERAL.—Section 526 of the Tariff Act of 

20 1930 (19 U.S.C. 1526) is amended— 

21 (1) in the section heading, by inserting ‘‘OR

22 PROTECTED BY COPYRIGHT’’ after ‘‘TRADE23 MARK’’; 

24 (2) in subsection (e), by striking ‘‘Any such 

25 merchandise’’ and all that follows through ‘‘15 


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1 U.S.C. 1124),’’ and inserting ‘‘Any merchandise 

2 bearing a counterfeit mark (as defined in section 

3 2320(e) of title 18, United States Code) that is im4 ported into the United States, exported out of the 

5 United States, or transshipped through the United 

6 States’’; and 

7 (3) in subsection (f)— 

8 (A) by striking paragraph (1) and insert9 ing the following: 

10 ‘‘(1) Any person who engages in, directs, assists fi11 nancially or otherwise, or aids and abets the importation, 

12 exportation, or transshipment of merchandise that is 

13 seized under subsection (e) of this section, or under regu14 lations issued pursuant to section 603(c) of title 17, 

15 United States Code, shall be subject to a civil fine.’’; 

16 (B) by redesignating paragraph (4) as 

17 paragraph (5); and 

18 (C) by inserting after paragraph (3) the 

19 following: 

20 ‘‘(4) When the seizure of merchandise that results in 

21 the imposition of a civil fine is made under circumstances 

22 indicating that the importation, exportation, or trans23 shipment of the merchandise was for the purpose of sale 

24 or public distribution of the merchandise, the maximum 


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1 fine amounts set forth in paragraphs (2) and (3) shall be 

2 tripled.’’. 

3 (b) CONFORMING AMENDMENTS.—Title 17, United 

4 States Code, is amended— 

5 (1) in section 501(a), by inserting ‘‘, exports 

6 copies or phonorecords from the United States, or 

7 transships copies or phonorecords through the 

8 United States’’ after ‘‘into the United States’’; 

9 (2) in section 506(c), by inserting 

10 ‘‘, exports, or transships’’ after ‘‘imports’’; 

11 (3) in section 511(a), by inserting ‘‘, exporting, 

12 or transshipping’’ after ‘‘importing’’; 

13 (4) in section 602— 

14 (A) in the section heading, by striking ‘‘or 

15 exportation’’ and inserting ‘‘, expor16 tation, or transshipment’’; and 

17 (B) in subsection (a)— 

18 (i) in paragraph (2)— 

19 (I) in the paragraph heading, by 

20 striking ‘‘OR EXPORTATION’’ and in21 serting ‘‘, EXPORTATION, OR TRANS22 SHIPMENT’’; and 

23 (II) by striking ‘‘or exportation 

24 from the United States’’ and inserting 

25 ‘‘, exportation from the United States, 


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1 or transshipment through the United 

2 States’’; and 

3 (ii) in paragraph (3)— 

4 (I) in subparagraph (A), by strik5 ing ‘‘or exportation’’ and inserting ‘‘, 

6 exportation, or transshipment’’; and 

7 (II) in subparagraph (B), by 

8 striking ‘‘or exportation, for the pri9 vate use of the importer or exporter’’ 

10 and inserting ‘‘, exportation, or trans11 shipment, for the private use of the 

12 importer, exporter, or person trans13 shipping copies or phonorecords’’; 

14 (5) in section 603— 

15 (A) in the section heading, by striking 

16 ‘‘Importation prohibitions’’ and inserting 

17 ‘‘Prohibitions on importation, expor18 tation, and transshipment’’; 

19 (B) in subsection (a), by inserting 

20 ‘‘, exportation, and transshipment’’ after ‘‘im21 portation’’; 

22 (C) in subsection (b), by inserting 

23 ‘‘, exportation, or transshipment’’ after ‘‘impor24 tation’’ each place it appears; and 

25 (D) in subsection (c)— 


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1 (i) by inserting ‘‘, exported, or trans2 shipped’’ after ‘‘imported’’ each place it 

3 appears; and 

4 (ii) by inserting ‘‘, exportation, or 

5 transshipped’’ after ‘‘importation’’; 

6 (6) by amending the chapter heading for chap7 ter 6 to read as follows: 

8 ‘‘CHAPTER 6—MANUFACTURING REQUIRE9 MENTS, IMPORTATION, EXPORTATION, 

10 AND TRANSSHIPMENT’’; 

11 (7) in the table of sections for chapter 6, by 

12 amending the items relating to sections 602 and 603 

13 to read as follows: 

‘‘602. Infringing importation, exportation, and transshipment of copies or 

phonorecords. 

‘‘603. Prohibitions on importation, exportation, and transshipment: Enforcement 

and disposition of excluded articles.’’; 

14 and 

15 (8) in the table of chapters, by amending the 

16 item relating to chapter 6 to read as follows: 

‘‘6. Manufacturing Requirements, Importation, Exportation, and Transshipment ................................ 601’’. 

17 SEC. 242. DECLARATIONS REGARDING COUNTERFEIT AND 

18 INFRINGING MERCHANDISE. 

19 (a) DECLARATIONS.—Section 485(a) of the Tariff 

20 Act of 1930 (19 U.S.C. 1485(a)) is amended— 

21 (1) in paragraph (1), by striking ‘‘Whether’’ 

22 and inserting ‘‘whether’’; 


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1 (2) in paragraph (2), by striking ‘‘That’’ and 

2 inserting ‘‘that’’; 

3 (3) in paragraph (3)— 

4 (A) by striking ‘‘That’’ and inserting 

5 ‘‘that’’; and 

6 (B) by striking ‘‘and’’ after the semicolon; 

7 (4) in paragraph (4)— 

8 (A) by striking ‘‘That’’ and inserting 

9 ‘‘that’’; and 

10 (B) by striking the period and inserting a 

11 semicolon; and 

12 (5) by adding at the end the following: 

13 ‘‘(5) that the merchandise being imported does 

14 not bear a counterfeit mark (as defined in section 

15 2320(e) of title 18, United States Code); 

16 ‘‘(6) that the merchandise is not an infringing 

17 copy or phonorecord or one whose making would 

18 have constituted an infringement of copyright if title 

19 17, United States Code, had applied; and 

20 ‘‘(7) that the merchandise— 

21 ‘‘(A) does not violate an exclusion order of 

22 the United States International Trade Commis23 sion under section 337 (d) or (e) by reason of 

24 any of subparagraphs (B) through (E) of sub25 section (a)(1) of section 337; or 


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1 ‘‘(B) infringe any other intellectual prop2 erty right not covered by subparagraph (A) or 

3 by paragraph (5) or (6).’’. 

4 (b) REGULATIONS.—The Secretary shall issue regula5 tions requiring that the declarations required by para6 graphs (5), (6), and (7) of section 485(a) of the Tariff 

7 Act of 1930, as added by subsection (a) of this section, 

8 be made by all persons arriving in the United States with 

9 respect to articles carried on their person or contained in 

10 their baggage. 

11 SEC. 243. SEIZURE AND FORFEITURE OF DEVICES DE12 SIGNED TO CIRCUMVENT INTELLECTUAL 

13 PROPERTY RIGHTS PROTECTIONS. 

14 Section 596(c)(2) of the Tariff Act of 1930 (19 

15 U.S.C. 1595a(c)(2)) is amended— 

16 (1) in subparagraph (E), by striking ‘‘or’’; 

17 (2) in subparagraph (F), by striking the period 

18 and inserting ‘‘; or’’; and 

19 (3) by adding at the end the following: 

20 ‘‘(G) it is a technology, product, service, 

21 device, component, or part thereof the importa22 tion of which is prohibited under section 

23 1201(a)(2) of title 17, United States Code.’’. 


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1 SEC. 244. AUTHORITY OF CHIEF COUNSEL OF U.S. CUSTOMS 

2 AND BORDER PROTECTION TO REPRESENT 

3 THE UNITED STATES IN CERTAIN FOR4 FEITURE PROCEEDINGS. 

5 Title V of the Tariff Act of 1930 (19 U.S.C. 1500 

6 et seq.) is amended by inserting after section 529 the fol7 lowing: 

8 ‘‘SEC. 530. AUTHORITY OF CHIEF COUNSEL OF U.S. CUS9 TOMS AND BORDER PROTECTION TO REP10 RESENT THE UNITED STATES IN CERTAIN 

11 FORFEITURE PROCEEDINGS. 

12 ‘‘(a) IN GENERAL.—Subject to subsection (b), the 

13 Chief Counsel of U.S. Customs and Border Protection 

14 may commence, defend, or intervene in, and supervise the 

15 litigation of, any civil forfeiture proceeding under section 

16 2320(b) of title 18, United States Code, or section 526(e) 

17 of this Act. 

18 ‘‘(b) PROCEDURE FOR EXERCISE OF AUTHORITY TO

19 LITIGATE OR APPEAL.— 

20 ‘‘(1) IN GENERAL.—Prior to commencing, de21 fending, or intervening in any civil forfeiture pro22 ceeding referred to in subsection (a), the Chief 

23 Counsel shall submit a written notification to the At24 torney General with respect to the proposed pro25 ceeding. 


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1 ‘‘(2) FAILURE TO RESPOND.—If, not later than 

2 120 days after the date on which the Chief Counsel 

3 submits the notification to the Attorney General 

4 under paragraph (1), the Attorney General has 

5 failed to commence, defend, or intervene in the pro6 posed proceeding, the Chief Counsel may commence, 

7 defend, or intervene in, and supervise the litigation 

8 of, the proceeding and any appeal of the proceeding 

9 in the name of the Chief Counsel. 

10 ‘‘(3) AUTHORITY OF ATTORNEY GENERAL TO

11 INTERVENE.—Nothing in this subsection precludes 

12 the Attorney General from intervening on behalf of 

13 the United States in any civil forfeiture proceeding 

14 under section 2320(b) of title 18, United States 

15 Code, or in any appeal of such a proceeding, as may 

16 be otherwise provided by law.’’. 

17 Subtitle F—Administrative 

18 Provisions 

19 SEC. 251. ADVISORY COMMITTEE ON IMPORT SAFETY AND 

20 INTELLECTUAL PROPERTY ENFORCEMENT. 

21 (a) ESTABLISHMENT.— 

22 (1) IN GENERAL.—The Secretary, acting 

23 through the Commissioner and the Assistant Sec24 retary for U.S. Immigration and Customs Enforce25 ment, shall establish an advisory committee which 


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1 shall be known as the Advisory Committee on Im2 port Safety and Intellectual Property Rights En3 forcement (in this section referred to as the ‘‘Advi4 sory Committee’’). 

5 (2) MEMBERSHIP.—The Advisory Committee 

6 shall consist of 20 members appointed by the Sec7 retary. In making appointments to the Advisory 

8 Committee, the Secretary shall ensure that— 

9 (A) the membership of the Advisory Com10 mittee is representative of the individuals and 

11 organizations affected by the enforcement of 

12 import safety standards and intellectual prop13 erty rights by U.S. Customs and Border Pro14 tection and U.S. Immigration and Customs En15 forcement; 

16 (B) at least one member of the Advisory 

17 Committee is a representative of organized 

18 labor; 

19 (C) at least one member of the Advisory 

20 Committee is a representative of consumer 

21 groups; and 

22 (D) not more than 10 members of the Ad23 visory Committee belong to the same political 

24 party. 

25 (b) DUTIES.—The Advisory Committee shall— 


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1 (1) provide advice to the Secretary, the Com2 missioner, and the Assistant Secretary for U.S. Im3 migration and Customs Enforcement on all matters 

4 involving the enforcement of import safety standards 

5 and intellectual property rights by U.S. Customs 

6 and Border Protection and U.S. Immigration and 

7 Customs Enforcement; and 

8 (2) submit an annual report to the Committee 

9 on Finance of the Senate and the Committee on 

10 Ways and Means of the House of Representatives 

11 that shall— 

12 (A) describe the operations of the Advisory 

13 Committee during the preceding year; and 

14 (B) set forth any recommendations of the 

15 Advisory Committee with respect the enforce16 ment of import safety standards and intellec17 tual property rights by U.S. Customs and Bor18 der Protection and U.S. Immigration and Cus19 toms Enforcement. 

20 (c) PRESIDING OFFICERS.—The Commissioner and 

21 the Assistant Secretary for U.S. Immigration and Cus22 toms Enforcement shall jointly preside over meetings of 

23 the Advisory Committee. 


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1 SEC. 252. STAFFING ENHANCEMENTS AT U.S. CUSTOMS AND 

2 BORDER PROTECTION. 

3 There are authorized to be appropriated to U.S. Cus4 toms and Border Protection such funds as may be nec5 essary for additional personnel (as determined in accord6 ance with the Resource Allocation Model established pur7 suant to section 301(h) of the Customs Procedural Reform 

8 and Simplification Act of 1978 (19 U.S.C. 2075(h)) to 

9 carry out the additional responsibilities of U.S. Customs 

10 and Border Protection under this title regarding the im11 portation, transshipment, and exportation of counterfeit 

12 or pirated goods, goods that are the subject to exclusion 

13 orders, and goods that violate other forms of intellectual 

14 property rights. 

15 SEC. 253. STAFFING ENHANCEMENTS AT U.S. IMMIGRATION 

16 AND CUSTOMS ENFORCEMENT. 

17 There are authorized to be appropriated to U.S. Im18 migration and Customs Enforcement such funds as may 

19 be necessary for additional personnel to carry out the ad20 ditional responsibilities of U.S. Immigration and Customs 

21 Enforcement under this title regarding the enforcement 

22 of intellectual property rights, including for developing 

23 and implementing a training program with respect to the 

24 enforcement of intellectual property rights for each U.S. 

25 Immigration and Customs Enforcement attache ́ office out26 side the United States. 


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1 SEC. 254. REGULATORY AUTHORITY. 

2 The Secretary may issue such regulations as are nec3 essary to carry out this title. 

Æ 


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