II 

111TH CONGRESS 

1ST SESSION S. 1631 

To reauthorize customs facilitation and trade enforcement functions and 

programs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 6, 2009 

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

which was read twice and referred to the Committee on Finance 

A BILL 

To reauthorize customs facilitation and trade enforcement 

functions and programs, 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 ‘‘Customs Facilitation and Trade Enforcement Reauthor6 ization Act of 2009’’. 

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 FACILITATION 


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Subtitle A—Functions Other Than Investigative Functions 

Sec. 101. Establishment of Agency; Commissioner. 

Sec. 102. Officers and employees. 

Sec. 103. Separate budget 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 Agency. 

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

Agency. 

Sec. 123. Undercover investigative operations. 

Sec. 124. Authorization of appropriations. 

Subtitle C—Joint Strategic Plan 

Sec. 131. Joint Strategic Plan. 

TITLE II—CUSTOMS FACILITATION, TRADE ENFORCEMENT, AND 

TRANSPARENCY 

Subtitle A—Customs Facilitation and Transparency 

Sec. 201. Trade benefits under the Customs-Trade Partnership Against Terrorism. 

Sec. 202. Customs Facilitation Partnership Program. 

Sec. 203. Consultations with respect to mutual recognition agreements. 

Sec. 204. Commercial Customs Operations Advisory Committee. 

Sec. 205. Automated Commercial Environment computer system. 

Sec. 206. International Trade Data System. 

Sec. 207. Electronic submission of public comments. 

Subtitle B—Trade Enforcement 

CHAPTER 1—COMMERCIAL RISK ASSESSMENT 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

Sec. 221. Interagency Import Safety Working Group. 

Sec. 222. Joint Import Safety Rapid Response Plan. 

Sec. 223. Training. 


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CHAPTER 3—IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY

RIGHTS

Sec. 231. Intellectual property rights. 

Sec. 232. National Intellectual Property Rights Coordination Center. 

Sec. 233. Joint strategic plan for the enforcement of intellectual property 

rights. 

Sec. 234. Repeated import-related infringement of intellectual property rights. 

Sec. 235. Personnel dedicated to the enforcement of intellectual property rights. 

Sec. 236. Training with respect to the enforcement of intellectual property 

rights. 

Sec. 237. Recordation of works for which a copyright is pending. 

Sec. 238. Availability of samples to owners of copyrights and trademarks or 

persons injured by the importation of circumvention devices. 

Sec. 239. Seizure of circumvention devices. 

Sec. 240. Information for travelers regarding violations of intellectual property 

rights. 

Sec. 241. International cooperation and information sharing. 

Sec. 242. Sense of Congress regarding recordation process. 

TITLE III—MISCELLANEOUS PROVISIONS 

Sec. 301. Consultation on trade and customs revenue functions. 

Sec. 302. Drawback for exported merchandise. 

Sec. 303. Penalties for customs brokers. 

Sec. 304. Articles repaired or altered. 

Sec. 305. Charter flights. 

Sec. 306. Symposium fees. 

Sec. 307. Pilot program for establishing 24-hour commercial land border ports 

of entry. 

Sec. 308. Prohibition on importation of goods made with forced or indentured 

labor or by benefit of human trafficking. 

Sec. 309. Honey transshipment. 

Sec. 310. Contraband archaeological or ethnological materials. 

Sec. 311. De minimis and informal entries. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) COMMERCIAL CUSTOMS OPERATIONS ADVI4 SORY COMMITTEE.—The term ‘‘Commercial Customs 

5 Operations Advisory Committee’’ means the Advi6 sory Committee established pursuant to section 202 

7 of this Act or any successor committee. 


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1 (2) 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. 

5 (B) Section 249 of the Revised Statutes of 

6 the United States (19 U.S.C. 3). 

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

8 (19 U.S.C. 6). 

9 (D) Section 13031 of the Consolidated 

10 Omnibus Budget Reconciliation Act of 1985 

11 (19 U.S.C. 58c). 

12 (E) Section 251 of the Revised Statutes of 

13 the United States (19 U.S.C. 66). 

14 (F) Section 1 of the Act of June 26, 1930 

15 (19 U.S.C. 68). 

16 (G) The Foreign Trade Zones Act (19 

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

18 (H) Section 1 of the Act of March 2, 1911 

19 (19 U.S.C. 198). 

20 (I) The Trade Act of 1974. 

21 (J) The Trade Agreements Act of 1979. 

22 (K) The North American Free Trade Area 

23 Implementation Act. 

24 (L) The Uruguay Round Agreements Act. 


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1 (M) The Caribbean Basin Economic Re2 covery Act. 

3 (N) The Andean Trade Preference Act. 

4 (O) The African Growth and Opportunity 

5 Act. 

6 (P) The Act of March 3, 1927 (44 Stat. 

7 1381, chapter 348; 19 U.S.C. 2071 et seq.). 

8 (Q) The Customs Enforcement Act of 

9 1986 (Public Law 99–570; 100 Stat. 3207–79). 

10 (R) The Customs and Trade Act of 1990 

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

12 (S) The Customs Procedural Reform and 

13 Simplification Act of 1978 (Public Law 95– 

14 410; 92 Stat. 888). 

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

16 107–210; 116 Stat. 933). 

17 (U) The Convention on Cultural Property 

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

19 (V) The Act of August 7, 1939 (53 Stat. 

20 1263, chapter 566; 19 U.S.C. 2077 et seq.). 

21 (W) Any other provision of law vesting 

22 customs revenue functions in the Secretary of 

23 the Treasury. 

24 (X) Any other provision of law relating to 

25 customs facilitation or trade enforcement that 


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1 is administered by the U.S. Customs and Bor2 der Protection Agency on behalf of any Federal 

3 agency that is required to participate in the 

4 International Trade Data System. 

5 (Y) Any other provision of customs or 

6 trade law administered by the U.S. Customs 

7 and Border Protection Agency. 

8 (3) CUSTOMS REVENUE FUNCTION.—The term 

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

10 that term in section 415 of the Homeland Security 

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

12 (4) PRIVATE SECTOR ENTITY.—The term ‘‘pri13 vate sector entity’’ means— 

14 (A) an importer; 

15 (B) an exporter; 

16 (C) a forwarder; 

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

18 (E) a contract logistics provider; 

19 (F) a customs broker; or 

20 (G) any other person involved in the im21 portation or exportation of goods into or out of 

22 the United States. 

23 (5) JOINT STRATEGIC PLAN.—The term ‘‘Joint 

24 Strategic Plan’’ means the plan required by section 


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1 123A of the Customs and Trade Act of 1990, as 

2 added by section 131 of this Act. 

3 (6) TRADE SUPPORT NETWORK.—The term 

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

5 private sector entities that provide input on the de6 sign and development of modernization projects of 

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

8 TITLE I—CUSTOMS 

9 FACILITATION 

10 Subtitle A—Functions Other Than 

11 Investigative Functions 

12 SEC. 101. ESTABLISHMENT OF AGENCY; COMMISSIONER. 

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

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

15 2071), is amended to read as follows: 

16 ‘‘SECTION 1. ESTABLISHMENT OF U.S. CUSTOMS AND BOR17 DER PROTECTION AGENCY; COMMISSIONER. 

18 ‘‘(a) ESTABLISHMENT OF U.S. CUSTOMS AND BOR19 DER PROTECTION AGENCY.—There is established in the 

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

21 Border Protection Agency. 

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

23 CUSTOMS AND BORDER PROTECTION.—The head of the 

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


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

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

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

4 the advice and consent of the Senate; 

5 ‘‘(2) carry out the duties described in sub6 section (c); and 

7 ‘‘(3) report directly to the Secretary of Home8 land Security. 

9 ‘‘(c) DUTIES.— 

10 ‘‘(1) IN GENERAL.—The duties of the Commis11 sioner shall be— 

12 ‘‘(A) to carry out the duties and powers 

13 prescribed by law and such other duties as the 

14 Secretary of Homeland Security may assign; 

15 ‘‘(B) to direct the administration of the 

16 commercial operations as described in para17 graph (2) and the noncommercial operations of 

18 the U.S. Customs and Border Protection Agen19 cy; and 

20 ‘‘(C) to otherwise safeguard the economic 

21 and homeland security interests of the United 

22 States at land borders and ports of entry. 

23 ‘‘(2) COMMERCIAL OPERATIONS.—The commer24 cial operations of the U.S. Customs and Border Pro25 tection Agency shall include— 


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1 ‘‘(A) administering any customs revenue 

2 function delegated by the Secretary of the 

3 Treasury to the Secretary of Homeland Secu4 rity pursuant to section 412 of the Homeland 

5 Security Act of 2002 (6 U.S.C. 212); 

6 ‘‘(B) facilitating legitimate international 

7 trade, and enforcing the customs and trade 

8 laws of the United States to the extent of the 

9 authority of the Commissioner under such laws; 

10 ‘‘(C) coordinating all efforts of the Depart11 ment of Homeland Security to facilitate legiti12 mate international trade and to enforce the cus13 toms and trade laws of the United States; 

14 ‘‘(D) coordinating, on behalf of the De15 partment of Homeland Security, efforts among 

16 executive branch agencies to facilitate legitimate 

17 trade and to enforce the customs and trade 

18 laws of the United States, including— 

19 ‘‘(i) representing the Department of 

20 Homeland Security in interagency fora ad21 dressing such efforts; and 

22 ‘‘(ii) coordinating with the Director of 

23 U.S. Immigration and Customs Enforce24 ment to develop and implement the Joint 

25 Strategic Plan required under section 


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1 123A of the Customs and Trade Act of 

2 1990 (as added by section 131 of the Cus3 toms Facilitation and Trade Enforcement 

4 Reauthorization Act of 2009); 

5 ‘‘(E) coordinating, on behalf of the United 

6 States, efforts with foreign customs agencies to 

7 facilitate legitimate international trade and to 

8 enforce the customs and trade laws of the 

9 United States and of foreign countries; 

10 ‘‘(F) consulting with the Committee on Fi11 nance of the Senate and the Committee on 

12 Ways and Means of the House of Representa13 tives on a regular and timely basis regarding 

14 the status and substance of international nego15 tiations relating to the customs and trade laws 

16 of the United States, or of foreign countries, in 

17 which personnel of the U.S. Customs and Bor18 der Protection Agency are participating; 

19 ‘‘(G) collecting, assessing, and dissemi20 nating information as appropriate and in ac21 cordance with law, regarding cargo destined for 

22 the United States, to ensure that such cargo 

23 complies with the customs and trade laws of the 

24 United States and to facilitate the legitimate 

25 international trade of such cargo; 


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1 ‘‘(H) soliciting and considering on a reg2 ular basis input from the private sector, includ3 ing the Commercial Customs Operations Advi4 sory Committee, the Trade Support Network, 

5 and private sector entities affected by the ef6 forts of the Federal Government to facilitate le7 gitimate international trade and to enforce the 

8 customs and trade laws of the United States, 

9 with respect to— 

10 ‘‘(i) the implementation of new or 

11 amended customs and trade laws; and 

12 ‘‘(ii) the development, implementation, 

13 or revision of policies or regulations admin14 istered by the U.S. Customs and Border 

15 Protection Agency; 

16 ‘‘(I) consulting on a regular basis with the 

17 Committee on Appropriations and the Com18 mittee on Finance of the Senate and the Com19 mittee on Appropriations and the Committee on 

20 Ways and Means of the House of Representa21 tives, regarding the resource needs of the U.S. 

22 Customs and Border Protection Agency to safe23 guard the economic security interests of the 

24 United States at land borders and ports of 

25 entry; and 


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1 ‘‘(J) otherwise advising the Secretary of 

2 Homeland Security with respect to the develop3 ment of policies associated with facilitating le4 gitimate international trade and enforcing the 

5 customs and trade laws of the United States. 

6 ‘‘(3) DEFINITIONS.—The terms ‘Commercial 

7 Customs Operations Advisory Committee’, ‘customs 

8 and trade laws of the United States’, ‘private sector 

9 entity’, and ‘Trade Support Network’ have the 

10 meaning given such terms in section 2 of the Cus11 toms Facilitation and Trade Enforcement Reauthor12 ization Act of 2009. 

13 ‘‘(d) COMPENSATION.—The Commissioner of U.S. 

14 Customs and Border Protection, Department of Home15 land Security, shall be compensated at the rate of pay for 

16 level III of the Executive Schedule as provided in section 

17 5314 of title 5, United States Code. 

18 ‘‘(e) ABSENCE OR DISABILITY OF COMMISSIONER.— 

19 The Principal Deputy Commissioner, appointed pursuant 

20 to section 2, shall act as Commissioner of U.S. Customs 

21 and Border Protection during the absence or disability of 

22 the Commissioner of U.S. Customs and Border Protection, 

23 or in the event that there is no Commissioner of U.S. Cus24 toms and Border Protection.’’. 


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1 (b) ADMINISTRATIVE CONTINUITY.—The Act of 

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

3 2073), is amended by striking section 3 and inserting the 

4 following: 

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

6 AND DUTIES. 

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

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

9 functions and associated personnel, assets, and liabilities, 

10 identified under such section 411 on the day before the 

11 date of the enactment of the Customs Facilitation and 

12 Trade Enforcement Reauthorization Act of 2009, are 

13 transferred to the U.S. Customs and Border Protection 

14 Agency. 

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

16 serving as Commissioner of Customs, in the Department 

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

18 enactment of the Customs Facilitation and Trade En19 forcement Reauthorization Act of 2009 may serve as the 

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

21 Agency until the earlier of— 

22 ‘‘(1) the date on which such individual is no 

23 longer eligible to serve as Commissioner of Customs; 

24 or 


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1 ‘‘(2) the date on which a person nominated by 

2 the President to be the Commissioner of U.S. Cus3 toms and Border Protection is confirmed by the 

4 Senate.’’. 

5 (c) REFERENCE.—On and after the effective date of 

6 this Act, any reference in law or regulations to the ‘‘Com7 missioner of Customs’’ or the ‘‘Commissioner of the Cus8 toms Service’’ shall be deemed to be a reference to the 

9 Commissioner of U.S. Customs and Border Protection es10 tablished pursuant to the first section of the Act of March 

11 3, 1927, as amended by subsection (a) of this section. 

12 (d) CONFORMING AMENDMENTS.— 

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

14 States Code, is amended by striking ‘‘Commissioner 

15 of Customs, Department of the Treasury’’ and in16 serting ‘‘Commissioner of U.S. Customs and Border 

17 Protection, Department of Homeland Security’’. 

18 (2) TABLE OF CONTENTS.—The table of con19 tents for the Homeland Security Act of 2002 is 

20 amended by striking the item relating to section 411 

21 and inserting the following: 

‘‘Sec. 411. Reserved.’’. 

22 SEC. 102. OFFICERS AND EMPLOYEES. 

23 (a) IN GENERAL.—The Act of March 3, 1927 (44 

24 Stat. 1381, chapter 348; 19 U.S.C. 2072), is amended by 

25 striking section 2 and inserting the following: 


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1 ‘‘SEC. 2. PRINCIPAL DEPUTY COMMISSIONER; DEPUTY COM2 MISSIONER; OTHER OFFICERS. 

3 ‘‘(a) PRINCIPAL DEPUTY COMMISSIONER.— 

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

5 Customs and Border Protection Agency established 

6 by the first section, 1 Principal Deputy Commis7 sioner who shall be appointed by the President, by 

8 and with the advice and consent of the Senate. 

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

10 of the rulemaking power of the Senate, a nomination 

11 for Principal Deputy Commissioner of U.S. Customs 

12 and Border Protection shall be referred to the Com13 mittee on Finance of the Senate. 

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

15 Deputy Commissioner shall include— 

16 ‘‘(A) primary oversight of the commercial 

17 operations of the U.S. Customs and Border 

18 Protection Agency; 

19 ‘‘(B) overseeing the operations of the Of20 fice of Trade established pursuant to section 4 

21 of this Act; 

22 ‘‘(C) coordinating the establishment of 

23 standards and policies for designing, developing, 

24 delivering, and evaluating training programs for 

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1 cy personnel with responsibilities for customs 

2 facilitation and trade enforcement; 

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

6 automation and modernization strategies, that 

7 support the operations of the U.S. Customs and 

8 Border Protection Agency, including the imple9 mentation of the Automated Commercial Envi10 ronment computer system authorized under sec11 tion 13031(f)(5) of the Consolidated Omnibus 

12 Budget and Reconciliation Act of 1985 (19 

13 U.S.C. 58c(f)(5)); 

14 ‘‘(E) overseeing the administration of cus15 toms revenue functions performed by the U.S. 

16 Customs and Border Protection Agency; 

17 ‘‘(F) overseeing the administration of the 

18 financial management activities of the U.S. 

19 Customs and Border Protection Agency, includ20 ing accounting, budgeting, procurement, logis21 tics, financial systems, policy, planning, and 

22 audit oversight; 

23 ‘‘(G) overseeing the public communication 

24 efforts of the U.S. Customs and Border Protec25 tion Agency; and 


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1 ‘‘(H) overseeing the human resources oper2 ations of the U.S. Customs and Border Protec3 tion Agency. 

4 ‘‘(4) COMPENSATION.—The Principal Deputy 

5 Commissioner of U.S. Customs and Border Protec6 tion, Department of Homeland Security, shall be 

7 compensated at the rate of pay for level IV of the 

8 Executive Schedule as provided in section 5315 of 

9 title 5, United States Code. 

10 ‘‘(5) ABSENCE OR DISABILITY OF PRINCIPAL

11 DEPUTY COMMISSIONER.—The Assistant Commis12 sioner of the Office of Trade, established under sec13 tion 4, shall act as the Principal Deputy Commis14 sioner during the disability of the Principal Deputy 

15 Commissioner, or in the event that there is no Prin16 cipal Deputy Commissioner. 

17 ‘‘(b) DEPUTY COMMISSIONER.— 

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

19 Customs and Border Protection Agency, 1 Deputy 

20 Commissioner, who shall be a member of the Senior 

21 Executive Service compensated at the maximum rate 

22 of pay provided for in section 5382 of title 5, United 

23 States Code. 

24 ‘‘(2) DUTIES.—The duties of the Deputy Com25 missioner shall include— 


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1 ‘‘(A) primary oversight of the security op2 erations of the U.S. Customs and Border Pro3 tection Agency, including field operations at 

4 land borders and ports of entry; 

5 ‘‘(B) overseeing the noncommercial anal6 ysis and dissemination of information collected 

7 by the U.S. Customs and Border Protection 

8 Agency; and 

9 ‘‘(C) overseeing the enforcement of laws, 

10 other than the customs and trade laws of the 

11 United States, by the U.S. Customs and Border 

12 Protection Agency at land borders and ports of 

13 entry, including the detection, interdiction, or 

14 apprehension of cargo destined for the United 

15 States or persons seeking entry into the United 

16 States in contravention of such laws. 

17 ‘‘(c) OTHER OFFICERS.—The Secretary of Homeland 

18 Security may appoint such other officers as are necessary 

19 to manage the individual offices within the U.S. Customs 

20 and Border Protection Agency. Any appointment of per21 sonnel under this subsection shall be subject to the provi22 sions of the civil service laws, and the salaries shall be 

23 fixed in accordance with chapter 51 and subchapter III 

24 of chapter 53 of title 5, United States Code.’’. 


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

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

3 2071 et seq.), is amended by inserting after section 3 the 

4 following: 

5 ‘‘SEC. 4. OFFICE OF TRADE. 

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

7 There shall be within the U.S. Customs and Border Pro8 tection Agency an Office of Trade that shall be headed 

9 by an Assistant Commissioner. 

10 ‘‘(b) TRANSFER OF ASSETS, FUNCTION, AND PER11 SONNEL; ELIMINATION OF OFFICES.— 

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

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

14 after the date of the enactment of the Customs 

15 Facilitation and Trade Enforcement Reauthor16 ization Act of 2009, the Secretary of Homeland 

17 Security shall transfer the assets, functions, 

18 personnel, and liabilities of the Office of Inter19 national Trade established pursuant to section 

20 402 of the Security and Accountability for 

21 Every Port Act of 2006 (Public Law 109–347; 

22 120 Stat. 1924) to the Office of Trade estab23 lished pursuant to subsection (a) of this section. 

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

25 days after the date of the enactment of the 


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1 Customs Facilitation and Trade Enforcement 

2 Reauthorization Act of 2009, the Office of 

3 International Trade established pursuant to 

4 section 402 of the Security and Accountability 

5 for Every Port Act of 2006 shall be abolished. 

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

7 appropriated to the U.S. Customs and Border 

8 Protection Agency or the Department of Home9 land Security may be used to transfer the as10 sets, functions, personnel, and liabilities of the 

11 Office of International Trade to an office other 

12 than the Office of Trade established pursuant 

13 to subsection (a) of this section. 

14 ‘‘(2) OFFICE OF INTERNATIONAL AFFAIRS.— 

15 ‘‘(A) TRANSFER.—Not later than 90 days 

16 after the date of the enactment of the Customs 

17 Facilitation and Trade Enforcement Reauthor18 ization Act of 2009, the Secretary of Homeland 

19 Security shall transfer the assets, functions, 

20 personnel, and liabilities of the Office of Inter21 national Affairs (described in section 415(8) of 

22 the Department of Homeland Security Act of 

23 2002 (6 U.S.C. 215(8))) to the Office of Trade 

24 established pursuant to subsection (a) of this 

25 section. 


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1 ‘‘(B) ELIMINATION.—Not later than 90 

2 days after the date of the enactment of the 

3 Customs Facilitation and Trade Enforcement 

4 Reauthorization Act of 2009, the Office of 

5 International Affairs shall be abolished. 

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

7 appropriated to the U.S. Customs and Border 

8 Protection Agency or the Department of Home9 land Security may be used to transfer the as10 sets, functions, personnel, and liabilities of the 

11 Office of International Affairs to an office other 

12 than the Office of Trade established pursuant 

13 to subsection (a) of this section. 

14 ‘‘(3) OTHER TRANSFERS.— 

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

16 authorized to transfer any other assets, func17 tions, or personnel within the U.S. Customs 

18 and Border Protection Agency to the Office of 

19 Trade established pursuant to subsection (a) of 

20 this section. 

21 ‘‘(B) CONGRESSIONAL NOTIFICATION.— 

22 Not less than 90 days prior to such transfer, 

23 the Commissioner shall notify the Committee on 

24 Finance of the Senate and the Committee on 

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1 tives of the specific assets, functions, or per2 sonnel to be transferred, and the reason for 

3 such transfer. 

4 ‘‘(c) ASSISTANT COMMISSIONER.— 

5 ‘‘(1) IN GENERAL.—The Commissioner of U.S. 

6 Customs and Border Protection shall appoint an As7 sistant Commissioner who shall— 

8 ‘‘(A) be the head of the Office of Trade; 

9 ‘‘(B) report to the Principal Deputy Com10 missioner of U.S. Customs and Border Protec11 tion; and 

12 ‘‘(C) be employed without regard to any 

13 provision of law regulating employment or com14 pensation at a rate not to exceed the rate of 

15 pay for level IV of the Executive Schedule as 

16 provided in section 5315 of title 5, United 

17 States Code. 

18 ‘‘(2) QUALIFICATIONS.—A person appointed to 

19 be the Assistant Commissioner of the Office of 

20 Trade shall have a minimum of 10 years of profes21 sional experience in the operation of the customs 

22 and trade laws of the United States, not less than 

23 5 of which shall be in non-Federal Government serv24 ice. 


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

2 Commissioner shall include— 

3 ‘‘(A) directing the development and imple4 mentation of rules, regulations, decisions, no5 tices, and abstracts, related to the customs and 

6 trade laws of the United States administered by 

7 the Agency; 

8 ‘‘(B) advising the Commissioner with re9 spect to the impact on international trade of 

10 any program or regulation otherwise proposed 

11 or administered by the Agency; 

12 ‘‘(C) directing the definition and adminis13 tration of the trade priority issue areas identi14 fied by the Commissioner in the Joint Strategic 

15 Plan required under section 123A of the Cus16 toms and Trade Act of 1990; 

17 ‘‘(D) otherwise advising the Commissioner 

18 with respect to the development and implemen19 tation of the Joint Strategic Plan required 

20 under section 123A of the Customs and Trade 

21 Act of 1990; 

22 ‘‘(E) directing the trade enforcement and 

23 compliance assessment activities of the Agency, 

24 including the activities of the National Tar25 geting and Analysis Groups established under 


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1 section 211 of the Customs Facilitation and 

2 Trade Enforcement Reauthorization Act of 

3 2009; 

4 ‘‘(F) overseeing the trade modernization 

5 activities of the Agency, including the develop6 ment and implementation of the Automated 

7 Commercial Environment computer system au8 thorized under section 13031(f)(5) of the Con9 solidated Omnibus Budget and Reconciliation 

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

11 for the establishment of the International Trade 

12 Data System under the oversight of the Depart13 ment of the Treasury pursuant to section 

14 411(d) of the Tariff Act of 1930 (19 U.S.C. 

15 1411(d)); 

16 ‘‘(G) advising the Commissioner with re17 spect to matters arising in the World Customs 

18 Organization; 

19 ‘‘(H) directing the administration of cus20 toms revenue functions otherwise provided by 

21 law or delegated by the Commissioner; and 

22 ‘‘(I) preparing an annual report to be sub23 mitted to the Committee on Finance of the Sen24 ate and the Committee on Ways and Means of 

25 the House of Representatives not later than 


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1 March 1 of each calendar year, summarizing 

2 the changes to customs regulations, practices, 

3 and procedures adopted by the U.S. Customs 

4 and Border Protection Agency during the pre5 ceding calendar year, the public vetting that oc6 curred with respect to each such change, and 

7 the interagency consultation that occurred with 

8 respect to each such change. 

9 ‘‘(d) TRADE ADVOCATE.—The Commissioner shall 

10 appoint within the Office of Trade, a Trade Advocate, who 

11 shall report directly to the Assistant Commissioner. 

12 ‘‘(1) DUTIES.—The Trade Advocate shall— 

13 ‘‘(A) serve as the primary liaison between 

14 the U.S. Customs and Border Protection Agen15 cy and the public with respect to the Agency’s 

16 administration of customs facilitation and trade 

17 enforcement functions; 

18 ‘‘(B) serve as a liaison between the Office 

19 of Trade and the Office of Field Operations 

20 with respect to the administration of customs 

21 facilitation and trade enforcement functions; 

22 ‘‘(C) consult with interested persons in the 

23 private sector, the Commercial Customs Oper24 ations Advisory Committee, and the Trade SupVerDate Nov 24 2008 00:10 Aug 08, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S1631.IS S1631

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1 port Network, for their input with respect to 

2 the Agency’s— 

3 ‘‘(i) development and implementation 

4 of rules, regulations, decisions, notices, and 

5 abstracts, related to the customs and trade 

6 laws of the United States administered by 

7 the Agency; 

8 ‘‘(ii) development of the Joint Stra9 tegic Plan required under section 123A of 

10 the Customs and Trade Act of 1990; 

11 ‘‘(iii) assessment of the effectiveness 

12 of customs facilitation and trade enforce13 ment efforts; and 

14 ‘‘(iv) trade modernization activities, 

15 including the development and implementa16 tion of the Automated Commercial Envi17 ronment computer system authorized 

18 under section 13031(f)(5) of the Consoli19 dated Omnibus Budget and Reconciliation 

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

21 support for the establishment of the Inter22 national Trade Data System under the 

23 oversight of the Department of the Treas24 ury pursuant to section 411(d) of the Tar25 iff Act of 1930 (19 U.S.C. 1411(d)); 


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1 ‘‘(D) advise the Commissioner with respect 

2 to the consultations described in subparagraph 

3 (C); and 

4 ‘‘(E) otherwise consult with the public as 

5 directed by the Commissioner or by law. 

6 ‘‘(2) ELIMINATION OF OFFICE.— 

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

8 after the date of the enactment of the Customs 

9 Facilitation and Trade Enforcement Reauthor10 ization Act of 2009, the Secretary of Homeland 

11 Security shall transfer the assets, functions, 

12 personnel, and liabilities of the Office of Trade 

13 Relations in the U.S. Customs and Border Pro14 tection Agency to the Office of Trade estab15 lished pursuant to subsection (a) of this section. 

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

17 days after the date of the enactment of the 

18 Customs Facilitation and Trade Enforcement 

19 Reauthorization Act of 2009, the Office of 

20 Trade Relations in the U.S. Customs and Bor21 der Protection Agency shall be abolished. 

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

23 appropriated to the U.S. Customs and Border 

24 Protection Agency or the Department of Home25 land Security may be used to transfer the asVerDate Nov 24 2008 00:10 Aug 08, 2009 Jkt 079200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S1631.IS S1631

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1 sets, functions, personnel, and liabilities of the 

2 Office of Trade Relations to an office other 

3 than the Office of Trade established pursuant 

4 to subsection (a) of this section. 

5 ‘‘SEC. 5. ESTABLISHMENT OF THE CUSTOMS FACILITATION 

6 AND TRADE ENFORCEMENT DIVISION IN THE 

7 OFFICE OF FIELD OPERATIONS; DIVISION 

8 PERSONNEL. 

9 ‘‘(a) ESTABLISHMENT.—There is established within 

10 the Office of Field Operations of the U.S. Customs and 

11 Border Protection Agency a Customs Facilitation and 

12 Trade Enforcement Division. 

13 ‘‘(b) APPOINTMENT.—The head of the Customs Fa14 cilitation and Trade Enforcement Division shall be a Dep15 uty Assistant Commissioner, who shall— 

16 ‘‘(1) be appointed by the Commissioner subject 

17 to the provisions of the civil service laws; and 

18 ‘‘(2) whose salary shall be fixed in accordance 

19 with chapter 51 and subchapter III of chapter 53 of 

20 title 5, United States Code. 

21 ‘‘(c) DUTIES.—The duties of the Deputy Assistant 

22 Commissioner shall include— 

23 ‘‘(1) overseeing the customs facilitation and 

24 trade enforcement activities at ports of entry by per25 sonnel within the Office of Field Operations, includVerDate Nov 24 2008 00:10 Aug 08, 2009 Jkt 079200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S1631.IS S1631

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1 ing the activities of Commercial Enforcement Offi2 cers provided for under subsection (d)(2); 

3 ‘‘(2) overseeing the operational training of per4 sonnel within the Office of Field Operations at ports 

5 of entry to administer the customs facilitation and 

6 trade enforcement functions of the U.S. Customs 

7 and Border Protection Agency; 

8 ‘‘(3) evaluating on a regular basis the oper9 ational effectiveness of the customs facilitation and 

10 trade enforcement activities at ports of entry by per11 sonnel of the Office of Field Operations; 

12 ‘‘(4) overseeing the coordination of customs fa13 cilitation and trade enforcement efforts between the 

14 Office of Field Operations and the Office of Trade 

15 established under section 4; 

16 ‘‘(5) consulting regularly with the Trade Advo17 cate established under section 4(d) with respect to 

18 any input received regarding the customs facilitation 

19 and trade enforcement efforts of the U.S. Customs 

20 and Border Protection Agency; 

21 ‘‘(6) ensuring uniform administration and im22 plementation among ports of entry of new or revised 

23 customs and trade laws, regulations, or policies, re24 lated to the customs facilitation and trade enforceVerDate Nov 24 2008 00:10 Aug 08, 2009 Jkt 079200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S1631.IS S1631

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1 ment efforts of the U.S. Customs and Border Pro2 tection Agency; 

3 ‘‘(7) implementing the operational provisions of 

4 the Joint Strategic Plan required under section 

5 123A of the Customs and Trade Act of 1990 related 

6 to the customs facilitation and trade enforcement ef7 forts of the U.S. Customs and Border Protection 

8 Agency at ports of entry; 

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

10 data regarding cargo that violates the customs and 

11 trade laws of the United States, and the prompt 

12 issuance of Trade Alerts pursuant to section 211 of 

13 the Customs Facilitation and Trade Enforcement 

14 Reauthorization Act of 2009; and 

15 ‘‘(9) otherwise overseeing the customs facilita16 tion and trade enforcement activities of personnel 

17 within the Office of Field Operations at ports of 

18 entry, as directed by the Commissioner. 

19 ‘‘(d) PERSONNEL.— 

20 ‘‘(1) HEADQUARTERS PERSONNEL.—In addition 

21 to the Deputy Assistant Commissioner, the Commis22 sioner shall designate and dedicate not less than 5 

23 full-time equivalent personnel to operate the Cus24 toms Facilitation and Trade Enforcement Division 

25 in the Office of Field Operations. 


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1 ‘‘(2) COMMERCIAL ENFORCEMENT OFFICERS.— 

2 ‘‘(A) IN GENERAL.—Not later than Sep3 tember 30, 2011, the Commissioner shall des4 ignate and dedicate within the Office of Field 

5 Operations not less than 40 Commercial En6 forcement Officers. 

7 ‘‘(B) ASSIGNMENT.—The Commissioner 

8 shall assign the Commercial Enforcement Offi9 cers authorized under this section among the 40 

10 United States ports of entry that experienced 

11 the highest volume of trade during fiscal year 

12 2009. 

13 ‘‘(C) DUTIES.—The duties of a Commer14 cial Enforcement Officer shall be— 

15 ‘‘(i) to supervise all trade enforcement 

16 activities of personnel of the Office of Field 

17 Operations at the port of entry to which 

18 the Commercial Enforcement Officer has 

19 been assigned; 

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

21 Trade all trade enforcement activities at 

22 the port of entry to which the Commercial 

23 Enforcement Officer has been assigned; 

24 ‘‘(iii) to direct the training of per25 sonnel at the port of entry to which the 


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1 Commercial Enforcement Officer has been 

2 assigned to effectuate the trade enforce3 ment activities of the Office of Field Oper4 ations; and 

5 ‘‘(iv) to otherwise conduct trade en6 forcement activities at the port of entry to 

7 which the Commercial Enforcement Officer 

8 has been assigned. 

9 ‘‘SEC. 6. ESTABLISHMENT OF INTERAGENCY CUSTOMS RE10 VIEW BOARD. 

11 ‘‘(a) ESTABLISHMENT.—There is established an 

12 interagency Customs Review Board. 

13 ‘‘(b) MEMBERSHIP.—The interagency Customs Re14 view Board shall be comprised of the Commissioner, the 

15 Assistant Secretary for Policy in the Department of 

16 Homeland Security, the Assistant Secretary for Tax Pol17 icy in the Department of the Treasury, the Under Sec18 retary for International Trade in the Department of Com19 merce, and 1 Deputy United States Trade Representative 

20 designated by the United States Trade Representative to 

21 serve on the interagency Customs Review Board. The 

22 interagency Customs Review Board shall be cochaired by 

23 the Commissioner and the Assistant Secretary for Tax 

24 Policy in the Department of the Treasury. 


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1 ‘‘(c) DUTIES.—Before the U.S. Customs and Border 

2 Protection Agency may publicly propose or adopt a pro3 posed change to a customs regulation, interpretation, or 

4 practice, the interagency Customs Review Board shall re5 view the proposed change to determine if the proposed 

6 change conforms to the international trade obligations of 

7 the United States.’’. 

8 (c) CONFORMING AMENDMENT.—Section 5315 of 

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

10 end the following: 

11 ‘‘Principal Deputy Commissioner of U.S. Cus12 toms and Border Protection, Department of Home13 land Security.’’. 

14 SEC. 103. SEPARATE BUDGET FOR U.S. CUSTOMS AND BOR15 DER PROTECTION AGENCY. 

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

17 each budget transmitted to Congress under section 1105 

18 of title 31, United States Code, 2 separate budget requests 

19 for the U.S. Customs and Border Protection Agency— 

20 (1) 1 for the commercial operations of the 

21 Agency; and 

22 (2) 1 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 hereby 

3 repealed. 

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 first section of the Act of May 6, 1939 (53 Stat. 

17 660, chapter 115; 19 U.S.C. 2076), is amended by strik18 ing ‘‘United States Customs Service’’ and inserting ‘‘U.S. 

19 Customs and Border Protection Agency or the U.S. Immi20 gration and Customs Enforcement Agency’’. 

21 SEC. 106. ADVANCES FOR ENFORCEMENT OF CUSTOMS 

22 PROVISIONS. 

23 Section 2 of the Act of August 7, 1939 (53 Stat. 

24 1263, chapter 566; 19 U.S.C. 2077), is amended to read 

25 as follows: 


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1 ‘‘SEC. 2. ADVANCES FOR ENFORCEMENT OF CUSTOMS PRO2 VISIONS. 

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

4 Protection and the Director of U.S. Immigration and Cus5 toms Enforcement, with the approval of the Secretary of 

6 Homeland Security and the Secretary of the Treasury, are 

7 each authorized to direct the advance of funds by the Fis8 cal Service in the Department of the Treasury, in connec9 tion with the enforcement of the customs and trade laws 

10 of the United States (as defined in section 2 of the Cus11 toms Facilitation and Trade Enforcement Reauthorization 

12 Act of 2009).’’. 

13 SEC. 107. CERTIFICATION OF REASON FOR ADVANCE. 

14 Section 3 of the Act of August 7, 1939 (53 Stat. 

15 1263, chapter 566; 19 U.S.C. 2078), is amended by strik16 ing ‘‘Commissioner of Customs’’ and inserting ‘‘Commis17 sioner of U.S. Customs and Border Protection or the Di18 rector of U.S. Immigration and Customs Enforcement’’. 

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

20 REIMBURSEMENT. 

21 Section 4 of the Act of August 7, 1939 (53 Stat. 

22 1263, chapter 566; 19 U.S.C. 2079), is amended to read 

23 as follows: 


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

2 REIMBURSEMENT. 

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

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

5 or the U.S. Immigration and Customs Enforcement Agen6 cy in foreign countries, or the right of any officer or em7 ployee of such Agencies to claim reimbursement for per8 sonal funds expended in connection with the enforcement 

9 of the customs and trade laws of the United States (as 

10 defined in section 2 of the Customs Facilitation and Trade 

11 Enforcement Reauthorization Act of 2009).’’. 

12 SEC. 109. CUSTOMS ADMINISTRATION. 

13 Section 113 of the Customs and Trade Act of 1990 

14 (19 U.S.C. 2082) is amended to read as follows: 

15 ‘‘SEC. 113. CUSTOMS ADMINISTRATION. 

16 ‘‘(a) IN GENERAL.—The Commissioner of U.S. Cus17 toms and Border Protection and the Director of U.S. Im18 migration and Customs Enforcement each shall— 

19 ‘‘(1) develop and implement accounting systems 

20 that accurately determine and report the allocation 

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

22 Customs and Border Protection Agency and the 

23 U.S. Immigration and Customs Enforcement Agency 

24 among the various operational functions of each 

25 Agency, including merchandise processing and cus26 toms and trade law enforcement; and 


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1 ‘‘(2) develop and implement periodic labor dis2 tribution surveys of major workforce activities within 

3 the U.S. Customs and Border Protection Agency 

4 and the U.S. Immigration and Customs Enforce5 ment Agency to determine the cost of the various 

6 operational functions of each Agency and the extent 

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

8 other Agency. 

9 ‘‘(b) SURVEY REPORTS.—The Commissioner of U.S. 

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

11 Immigration and Customs Enforcement shall each, not 

12 later than June 30, 2010, submit to the Committee on 

13 Finance of the Senate and the Committee on Ways and 

14 Means of the House of Representatives a report on the 

15 results of the first surveys implemented under paragraph 

16 (2) of subsection (a).’’. 

17 SEC. 110. PERSONNEL. 

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

19 the Security and Accountability for Every Port Act of 

20 2006 (6 U.S.C. 115(a)) is amended to read as follows: 

21 ‘‘(a) DIRECTOR OF TRADE POLICY.— 

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

23 of Policy and Planning of the Department of Home24 land Security a Director of Trade Policy, who 

25 shall— 


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1 ‘‘(A) coordinate with the Commissioner of 

2 U.S. Customs and Border Protection to ensure 

3 that the economic security interests of the 

4 United States associated with international 

5 trade are considered in the development and 

6 implementation of policies within the Depart7 ment of Homeland Security; and 

8 ‘‘(B) submit to the Committee on Finance 

9 of the Senate and the Committee on Ways and 

10 Means of the House of Representatives, not 

11 later than December 15 of each year, a report 

12 describing how the Department of Homeland 

13 Security accounted for the economic security in14 terests of the United States associated with 

15 international trade in developing and imple16 menting policies during the preceding fiscal 

17 year. 

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

19 Policy shall have significant experience in the devel20 opment, operation, or administration of United 

21 States trade policy, and shall be compensated at a 

22 rate of pay that is not less than the rate of pay for 

23 grade 14 of the General Schedule under section 

24 5332 of title 5, United States Code.’’. 


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

2 of the Homeland Security Act of 2002 (16 U.S.C. 212(c)) 

3 is amended to read as follows: 

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

5 after the date of the enactment of the Customs Facilita6 tion and Trade Enforcement Reauthorization Act of 2009, 

7 the Secretary of the Treasury shall designate and dedicate 

8 not less than 5 full-time equivalent personnel to work ex9 clusively with the Deputy Assistant Secretary of the 

10 Treasury for Tax, Trade, and Tariff Policy in the per11 formance and oversight of customs revenue functions.’’. 

12 SEC. 111. AUTHORIZATION OF APPROPRIATIONS. 

13 (a) IN GENERAL.—Section 301 of the Customs Pro14 cedural Reform and Simplification Act of 1978 (19 U.S.C. 

15 2075) is amended by redesignating subsection (h) as sub16 section (i) and by striking subsections (a) through (g) and 

17 inserting the following: 

18 ‘‘(a) IN GENERAL.— 

19 ‘‘(1) FISCAL YEARS BEGINNING OCTOBER 1, 

20 2009.—For the fiscal year beginning October 1, 

21 2009, and each fiscal year thereafter, there are au22 thorized to be appropriated to the Department of 

23 Homeland Security for the U.S. Customs and Bor24 der Protection Agency only such sums as may here25 after be authorized by law. 


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1 ‘‘(2) REQUIREMENT FOR AUTHORIZATION.— 

2 The authorization of the appropriations for the U.S. 

3 Customs and Border Protection Agency for each fis4 cal year after fiscal year 2009 shall specify— 

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

6 year for the salaries and expenses of the Agency 

7 in conducting commercial operations; and 

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

9 year for the salaries and expenses of the Agency 

10 for other than commercial operations. 

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

12 are authorized to be appropriated for the salaries and ex13 penses of the U.S. Customs and Border Protection Agency 

14 that are incurred in commercial operations such sums as 

15 are necessary for fiscal years 2010, 2011, and 2012. 

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

17 authorized to be appropriated pursuant to subsection (b) 

18 for any fiscal year, except for such sums as may be nec19 essary for the salaries and expenses of the U.S. Customs 

20 and Border Protection Agency that are incurred in con21 nection with the processing of merchandise that is exempt 

22 from the fees imposed pursuant to section 13031(a) (9) 

23 and (10) of the Consolidated Omnibus Budget Reconcili24 ation Act of 1985 (19 U.S.C. 58c(a) (9) and (10)) shall 

25 be appropriated from the Customs User Fee Account. 


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

2 the funds appropriated under subsection (a) for any fiscal 

3 year may be used to provide less time for the collection 

4 of estimated duties than the 10-day deferment procedure 

5 in effect on January 1, 1981. 

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

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

8 for any fiscal year may be used for administrative ex9 penses to pay any employee of the U.S. Customs and Bor10 der Protection Agency overtime pay in an amount exceed11 ing $35,000 unless the Secretary of Homeland Security, 

12 or the designee of the Secretary, determines on an indi13 vidual basis that payment of overtime pay to such em14 ployee in an amount exceeding $35,000 is necessary for 

15 national security purposes, to prevent excessive costs, or 

16 to meet emergency requirements of the Agency. 

17 ‘‘(f) PAY COMPARABILITY AUTHORIZATION.—For the 

18 fiscal year beginning October 1, 2009, and for each fiscal 

19 year thereafter, there are authorized to be appropriated 

20 to the Department of Homeland Security for salaries of 

21 the U.S. Customs and Border Protection Agency such ad22 ditional sums as may be provided by law to reflect pay 

23 rate changes made in accordance with the Federal Pay 

24 Comparability Act of 1970 (Public Law 91–656; 84 Stat. 

25 1946). 


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1 ‘‘(g) USE OF SAVINGS RESULTING FROM ADMINIS2 TRATIVE CONSOLIDATIONS.—If savings in salaries and ex3 penses result from the consolidation of administrative 

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

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

6 Protection shall apply the savings, to the extent the sav7 ings are not needed to meet emergency requirements of 

8 the Agency, to strengthening the commercial operations 

9 of the Agency by increasing the number of personnel dedi10 cated to administering customs revenue functions. 

11 ‘‘(h) ALLOCATION OF RESOURCES; REPORT TO CON12 GRESSIONAL COMMITTEES.—The Commissioner of U.S. 

13 Customs and Border Protection shall notify the Com14 mittee on Finance of the Senate and the Committee on 

15 Ways and Means of the House of Representatives at least 

16 180 days prior to taking any action that would— 

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

18 of employees of the U.S. Customs and Border Pro19 tection Agency other than by means of attrition; 

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

21 of operation or services rendered at any office of the 

22 U.S. Customs and Border Protection Agency or any 

23 United States port of entry; 

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

25 Customs and Border Protection 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 U.S. Customs and Border Protection 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 (19 U.S.C. 267(c)), 

15 is amended to read as follows: 

16 ‘‘(c) LIMITATIONS.— 

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

18 overtime pay under subsection (a) of this section (in19 cluding commuting compensation under subsection 

20 (a)(2)(B) of this section) and premium pay under 

21 subsection (b) of this section that an employee of the 

22 U.S. Customs and Border Protection may be paid in 

23 any fiscal year may not exceed $35,000 unless the 

24 Secretary of Homeland Security, or the designee of 

25 the Secretary, determines on an individual basis that 


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1 payment of overtime pay to such employee in an 

2 amount exceeding $35,000 is necessary for national 

3 security purposes, to prevent excessive costs, or to 

4 meet emergency requirements of the Agency. 

5 ‘‘(2) EXCLUSIVITY OF PAY UNDER THIS SEC6 TION.—An employee of the U.S. Customs and Bor7 der Protection Agency who receives overtime pay 

8 under subsection (a) of this section, or premium pay 

9 under subsection (b) of this section for time worked, 

10 may not receive pay or other compensation for that 

11 work under 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 in15 serting ‘‘employee of the U.S. Customs and 

16 Border Protection Agency’’; and 

17 (B) by striking ‘‘customs officers’’ and in18 serting ‘‘such employees’’. 

19 Subtitle B—Investigative Functions 

20 SEC. 121. ESTABLISHMENT OF AGENCY. 

21 (a) IN GENERAL.—Section 442 of the Homeland Se22 curity Act of 2002 (6 U.S.C. 252) is amended to read 

23 as follows: 


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1 ‘‘SEC. 442. ESTABLISHMENT OF AGENCY; DIRECTOR. 

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

3 in the Department of Homeland Security an agency to be 

4 known as the U.S. Immigration and Customs Enforce5 ment Agency. 

6 ‘‘(b) ESTABLISHMENT OF DIRECTOR.— 

7 ‘‘(1) IN GENERAL.—The head of the U.S. Im8 migration and Customs Enforcement Agency shall 

9 be a Director of U.S. Immigration and Customs En10 forcement, who shall— 

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

12 with the advice and consent of the Senate; 

13 ‘‘(B) carry out the duties and powers de14 scribed in subsection (c), prescribed by law, and 

15 prescribed by the Secretary of Homeland Secu16 rity; 

17 ‘‘(C) report directly to the Deputy Sec18 retary of Homeland Security; 

19 ‘‘(D) have a minimum of 5 years profes20 sional experience in law enforcement, and a 

21 minimum of 5 years of management experience; 

22 and 

23 ‘‘(E) advise the Secretary with respect to 

24 any policy or operation of the U.S. Immigration 

25 and Customs Enforcement Agency that may af26 fect the Bureau of Citizenship and Immigration 


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1 Services established under subtitle E (redesig2 nated as the U.S. Citizenship and Immigration 

3 Services), including potentially conflicting poli4 cies or operations. 

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

6 of the rulemaking power of the Senate, any nomina7 tion for Director of U.S. Immigration and Customs 

8 Enforcement shall be referred to the Committee on 

9 Finance. If the Committee on Finance has not re10 ported such nomination at the close of the 30th day 

11 after its referral to such Committee, the Committee 

12 shall be automatically discharged from further con13 sideration of such nomination and such nomination 

14 shall be referred to the Committee on the Judiciary. 

15 ‘‘(c) DUTIES OF DIRECTOR.—The duties of the Di16 rector shall include— 

17 ‘‘(1) establishing and overseeing the administra18 tion of policies with respect to functions— 

19 ‘‘(A) performed under the detention and 

20 removal program, the intelligence program, and 

21 the investigations program that were trans22 ferred to the Under Secretary for Border and 

23 Transportation Security by section 441 of this 

24 Act and delegated to the Assistant Secretary 

25 for Immigration and Customs Enforcement on 


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1 the day before the date of the enactment of the 

2 Customs Facilitation and Trade Enforcement 

3 Reauthorization Act of 2009; and 

4 ‘‘(B) otherwise vested in the Assistant Sec5 retary on the day before the date of the enact6 ment of the Customs Facilitation and Trade 

7 Enforcement Reauthorization Act of 2009; 

8 ‘‘(2) advising the Secretary of Homeland Secu9 rity with respect to any policy or operation of the 

10 U.S. Immigration and Customs Enforcement Agency 

11 that may affect the U.S. Citizenship and Immigra12 tion Services established under subtitle E, including 

13 potentially conflicting policies and operations; 

14 ‘‘(3) conducting investigations of violations of 

15 the customs and trade laws of the United States (as 

16 that term is defined in section 2 of the Customs Fa17 cilitation and Trade Enforcement Reauthorization 

18 Act of 2009), including investigations of violations of 

19 laws that protect intellectual property rights or pro20 hibit the importation of goods that pose a threat to 

21 the health or safety of consumers in the United 

22 States; and 

23 ‘‘(4) coordinating with the Commissioner of 

24 U.S. Customs and Border Protection to ensure the 

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1 tegic Plan required under section 123A of the Cus2 toms and Trade Act of 1990. 

3 ‘‘(d) DEPUTY DIRECTOR.—The Secretary of Home4 land Security is authorized to appoint, in the U.S. Immi5 gration and Customs Enforcement Agency established by 

6 subsection (a), 1 Deputy Director. Such appointment shall 

7 be subject to the provisions of the civil service laws and 

8 the salary shall be fixed in accordance with chapter 51 

9 and subchapter III of chapter 53 of title 5, United States 

10 Code. 

11 ‘‘(e) ABSENCE OR DISABILITY OF DIRECTOR OR

12 DEPUTY DIRECTOR.— 

13 ‘‘(1) DIRECTOR.—The Secretary of Homeland 

14 Security is authorized to designate an officer of the 

15 U.S. Immigration and Customs Enforcement Agency 

16 to serve as Director of U.S. Immigration and Cus17 toms Enforcement, during the absence or disability 

18 of the Director of U.S. Immigration and Customs 

19 Enforcement, or in the event that there is no Direc20 tor of U.S. Immigration and Customs Enforcement. 

21 ‘‘(2) DEPUTY DIRECTOR.—The Secretary of 

22 Homeland Security is authorized to designate an of23 ficer of the U.S. Immigration and Customs Enforce24 ment Agency to serve as Deputy Director of U.S. 

25 Immigration and Customs Enforcement, during the 


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1 absence or disability of the Deputy Director of U.S. 

2 Immigration and Customs Enforcement, or in the 

3 event that there is no Deputy Director of U.S. Im4 migration and Customs Enforcement. 

5 ‘‘(f) ADDITIONAL OFFICERS.—The Secretary of 

6 Homeland Security may appoint such officers as are nec7 essary to manage the individual offices within the U.S. 

8 Immigration and Customs Enforcement Agency. Appoint9 ments under this paragraph shall be subject to the provi10 sions of the civil service laws, and the salaries shall be 

11 fixed in accordance with chapter 51 and subchapter III 

12 of chapter 53 of title 5, United States Code. 

13 ‘‘(g) DUTIES OF PERSONNEL.—The personnel of the 

14 U.S. Immigration and Customs Enforcement Agency shall 

15 conduct and prosecute investigations for the enforcement 

16 of the customs and trade laws of the United States, and 

17 perform such other duties as are prescribed by law or by 

18 the Secretary of Homeland Security. 

19 ‘‘(h) PROGRAM TO COLLECT INFORMATION RELAT20 ING TO FOREIGN STUDENTS.—The Director of the U.S. 

21 Immigration and Customs Enforcement Agency shall be 

22 responsible for administering the program to collect infor23 mation relating to nonimmigrant foreign students and 

24 other exchange program participants described in section 

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1 sponsibility Act of 1996 (8 U.S.C. 1372), including the 

2 Student and Exchange Visitor Information System estab3 lished under that section, and shall use such information 

4 to carry out the enforcement functions of the U.S. Immi5 gration and Customs Enforcement Agency. 

6 ‘‘(i) CHIEF OF POLICY AND STRATEGY.— 

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

8 Chief of Policy and Strategy for the U.S. Immigra9 tion and Customs Enforcement Agency. 

10 ‘‘(2) FUNCTIONS.—In consultation with per11 sonnel in local offices of the U.S. Immigration and 

12 Customs Enforcement Agency, the Chief of Policy 

13 and Strategy shall be responsible for— 

14 ‘‘(A) making policy recommendations and 

15 performing policy research and analysis on im16 migration enforcement issues; and 

17 ‘‘(B) coordinating immigration policy 

18 issues with the Chief of Policy and Strategy for 

19 the Bureau of Citizenship and Immigration 

20 Services established under subtitle E, as appro21 priate. 

22 ‘‘(j) LEGAL ADVISOR.—There shall be a principal 

23 legal advisor to the Director of U.S. Immigration and Cus24 toms Enforcement. The legal advisor shall provide special25 ized legal advice to the Director of Immigration and CusVerDate Nov 24 2008 00:10 Aug 08, 2009 Jkt 079200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S1631.IS S1631

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1 toms Enforcement and shall represent the U.S. Immigra2 tion and Customs Enforcement Agency in all exclusion, 

3 deportation, and removal proceedings before the Executive 

4 Office for Immigration Review.’’. 

5 (b) COMPENSATION.— 

6 (1) IN GENERAL.—Section 5315 of title 5, 

7 United States Code, is amended by adding at the 

8 end the following: 

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

10 Enforcement, Department of Homeland Security.’’. 

11 (2) CONTINUATION IN OFFICE.—The individual 

12 serving as Assistant Secretary for Immigration and 

13 Customs Enforcement of the Department of Home14 land Security on the day before the date of the en15 actment of this Act may serve as Director of U.S. 

16 Immigration and Customs Enforcement until the 

17 earlier of— 

18 (A) the date on which such individual is no 

19 longer eligible to serve as Assistant Secretary; 

20 or 

21 (B) the date on which a person nominated 

22 by the President to be the Director of U.S. Im23 migration and Customs Enforcement is con24 firmed by the Senate. 


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1 (3) REFERENCE.—On and after the effective 

2 date of this Act, any reference to the Assistant Sec3 retary for Immigration and Customs Enforcement of 

4 the Department of Homeland Security, shall be 

5 deemed to be a reference to the Director of U.S. Im6 migration and Customs Enforcement. 

7 (c) CONFORMING AMENDMENTS.— 

8 (1) SUBTITLE D.—The heading for subtitle D 

9 of title IV of the Homeland Security Act of 2002 is 

10 amended by striking the matter preceding section 

11 441 and inserting the following: 

12 ‘‘Subtitle D—Enforcement 

13 Functions’’. 

14 (2) TABLE OF CONTENTS.—The table of con15 tents for the Homeland Security Act of 2002 is 

16 amended— 

17 (A) by striking the item relating to section 

18 442 and inserting the following: 

‘‘Sec. 442. Establishment of 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) DIRECTOR OF THE BUREAU OF CITIZEN23 SHIP AND IMMIGRATION SERVICES.—Section 

24 451(a)(2)(C) of the Homeland Security Act of 2002 


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1 (6 U.S.C. 271(a)(2)(C)) is amended by striking ‘‘As2 sistant Secretary of the Bureau of Border Security’’ 

3 and inserting ‘‘Director of U.S. Immigration and 

4 Customs Enforcement’’. 

5 SEC. 122. SEPARATE BUDGET FOR U.S. IMMIGRATION AND 

6 CUSTOMS ENFORCEMENT AGENCY. 

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

9 States Code, a separate budget request for the U.S. Immi10 gration and Customs Enforcement Agency— 

11 (1) 1 for the customs operations of the Agency; 

12 and 

13 (2) 1 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 to read as follows: 

18 ‘‘SEC. 3131. UNDERCOVER INVESTIGATIVE OPERATIONS OF 

19 THE U.S. IMMIGRATION AND CUSTOMS EN20 FORCEMENT AGENCY. 

21 ‘‘(a) CERTIFICATION REQUIRED FOR EXEMPTION OF

22 UNDERCOVER OPERATIONS FROM CERTAIN LAWS.—With 

23 respect to any undercover investigative operation of the 

24 U.S. Immigration and Customs Enforcement Agency (in 

25 this section referred to as the ‘Agency’) that is necessary 


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1 for the detection and prosecution of offenses against the 

2 United States that are within the jurisdiction of the Sec3 retary of Homeland Security— 

4 ‘‘(1) sums authorized to be appropriated may 

5 be used— 

6 ‘‘(A) to purchase property, buildings, and 

7 other facilities, and to lease space, within the 

8 United States, the District of Columbia, and 

9 the territories and possessions of the United 

10 States without regard to— 

11 ‘‘(i) sections 1341 and 3342 of title 

12 31, United States Code; 

13 ‘‘(ii) sections 3732(a) and 3741 of the 

14 Revised Statutes of the United States (41 

15 U.S.C. 11(a) and 22); 

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

17 States Code; and 

18 ‘‘(iv) sections 304(a) and 305 of the 

19 Federal Property and Administrative Serv20 ices Act of 1949 (41 U.S.C. 254(a) and 

21 255); and 

22 ‘‘(B) to establish or to acquire proprietary 

23 corporations or business entities as part of the 

24 undercover operation, and to operate such cor25 porations or business entities without regard to 


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1 sections 9102 and 9103 of title 31, United 

2 States Code; 

3 ‘‘(2) sums authorized to be appropriated for the 

4 Agency and the proceeds from the undercover oper5 ation, may be deposited in banks or other financial 

6 institutions without regard to the provisions of sec7 tion 648 of title 18 and section 3302 of title 31, 

8 United States Code; and 

9 ‘‘(3) the proceeds from the undercover oper10 ation may be used to offset necessary and reasonable 

11 expenses incurred in such operation without regard 

12 to the provision of section 3302 of title 31, United 

13 States Code; 

14 only upon written certification of the Director of the U.S. 

15 Immigration and Customs Enforcement Agency (or, if 

16 designated by the Director, such other officer within the 

17 U.S. Immigration and Customs Enforcement Agency) that 

18 any action authorized by paragraph (1), (2), or (3) of this 

19 subsection is necessary for the conduct of such undercover 

20 operation. 

21 ‘‘(b) LIQUIDATION OF CORPORATIONS AND BUSINESS

22 ENTITIES.—If a corporation or business entity established 

23 or acquired as part of an undercover operation under sub24 section (a)(1)(B) of this section with a net value over 

25 $50,000 is to be liquidated, sold, or otherwise disposed 


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1 of, the U.S. Immigration and Customs Enforcement Agen2 cy, as much in advance as the Director (or, if designated 

3 by the Director, such other officer within the Agency) de4 termines is practicable, shall report the circumstances to 

5 the Secretary of Homeland Security and the Secretary of 

6 the Treasury. The proceeds of the liquidation, sale, or 

7 other disposition, after obligations are met, shall be depos8 ited in the Treasury of the United States as miscellaneous 

9 receipts. 

10 ‘‘(c) DEPOSITS OF PROCEEDS.—As soon as the pro11 ceeds from an undercover investigative operation with re12 spect to which an action is authorized and carried out 

13 under paragraphs (2) and (3) of subsection (a) of this sec14 tion are no longer necessary for the conduct of such oper15 ation, such proceeds, or the balance of such proceeds re16 maining at the time, shall be deposited into the Treasury 

17 of the United States as miscellaneous receipts. 

18 ‘‘(d) AUDITS.— 

19 ‘‘(1) IN GENERAL.—The Director of U.S. Immi20 gration and Customs Enforcement shall— 

21 ‘‘(A) conduct a detailed financial audit of 

22 each undercover investigative operation that is 

23 closed in each fiscal year; 


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1 ‘‘(B) submit the results of the audit in 

2 writing to the Secretary of Homeland Security 

3 and the Secretary of the Treasury; and 

4 ‘‘(C) not later than 180 days after such 

5 undercover operation is closed, submit a report 

6 to the Congress concerning such audit. 

7 ‘‘(2) REPORT.—The Director shall also submit 

8 a report annually to the Congress specifying with re9 spect to the Agency’s undercover investigative oper10 ations— 

11 ‘‘(A) the number, by program, of under12 cover investigative operations pending at the 

13 end of the 1-year period for which such report 

14 is submitted; 

15 ‘‘(B) the number, by program, of under16 cover investigative operations commenced in the 

17 1-year period preceding the period for which 

18 such report is submitted; and 

19 ‘‘(C) the number, by program, of under20 cover investigative operations closed in the 1- 

21 year period preceding the period for which such 

22 report is submitted and, with respect to each 

23 such closed undercover operation, the results 

24 obtained and any civil claims made with respect 

25 thereto. 


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1 ‘‘(e) DEFINITIONS.—For purposes of subsection (d), 

2 the following definitions apply: 

3 ‘‘(1) CLOSED.—The term ‘closed’ refers to the 

4 earliest point in time at which— 

5 ‘‘(A) all criminal proceedings (other than 

6 appeals) are concluded; or 

7 ‘‘(B) covert activities are concluded, which8 ever occurs later. 

9 ‘‘(2) EMPLOYEES.—The term ‘employees’ 

10 means employees of the U.S. Immigration and Cus11 toms Enforcement Agency, as defined in section 

12 2105 of title 5, United States Code. 

13 ‘‘(3) UNDERCOVER INVESTIGATIVE OPERATION; 

14 UNDERCOVER OPERATION.— 

15 ‘‘(A) IN GENERAL.—The terms ‘undercover 

16 investigative operation’ and ‘undercover oper17 ation’ mean any undercover investigative oper18 ations of the U.S. Immigration and Customs 

19 Enforcement Agency— 

20 ‘‘(i) in which— 

21 ‘‘(I) the gross receipts (excluding 

22 interest earned) exceed $50,000; or 

23 ‘‘(II) expenditures (other than 

24 expenditures for salaries of employees) 

25 exceed $150,000; and 


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1 ‘‘(ii) which is exempt from section 

2 3302 or 9102 of title 31, United States 

3 Code. 

4 ‘‘(B) EXCEPTION.—Clauses (i) and (ii) of 

5 subparagraph (A) shall not apply with respect 

6 to the report required under paragraph (2) of 

7 subsection (d) of this section.’’. 

8 SEC. 124. AUTHORIZATION OF APPROPRIATIONS. 

9 Title III of the Customs Procedural Reform and Sim10 plification Act of 1978 (19 U.S.C. 2075) is amended by 

11 inserting after section 301 the following: 

12 ‘‘SEC. 302. AUTHORIZATION OF APPROPRIATIONS FOR CER13 TAIN CUSTOMS ENFORCEMENT ACTIVITIES. 

14 ‘‘(a) IN GENERAL.— 

15 ‘‘(1) FISCAL YEARS BEGINNING ON OR AFTER

16 OCTOBER 1, 2009.—For the fiscal year beginning Oc17 tober 1, 2009, and each fiscal year thereafter, there 

18 are authorized to be appropriated to the Department 

19 of Homeland Security for the U.S. Immigration and 

20 Customs Enforcement Agency only such sums as 

21 may hereafter be authorized by law. 

22 ‘‘(2) SPECIFICATION OF AMOUNTS.—The au23 thorization of the appropriations for the U.S. Immi24 gration and Customs Enforcement Agency for each 

25 fiscal year after fiscal year 2009 shall specify— 


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

2 year for the salaries and expenses of the Agency 

3 in conducting customs operations; and 

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

5 year for the salaries and expenses of the Agency 

6 for other than customs operations. 

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

8 are authorized to be appropriated for the salaries and ex9 penses of the U.S. Immigration and Customs Enforcement 

10 Agency that are incurred in customs operations such sums 

11 as are necessary for fiscal years 2010, 2011, and 2012.’’. 

12 Subtitle C—Joint Strategic Plan 

13 SEC. 131. JOINT STRATEGIC PLAN. 

14 (a) IN GENERAL.—Title I of the Customs and Trade 

15 Act of 1990 (Public Law 101–382; 104 Stat. 629) is 

16 amended by inserting after section 123, the following new 

17 section: 

18 ‘‘SEC. 123A. JOINT STRATEGIC PLAN. 

19 ‘‘(a) IN GENERAL.—Not later than June 30, 2010, 

20 and every 2 years thereafter, the Commissioner of U.S. 

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

22 Immigration and Customs Enforcement shall jointly de23 velop and submit to the Committee on Finance of the Sen24 ate and the Committee on Ways and Means of the House 

25 of Representatives, a Joint Strategic Plan. 


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1 ‘‘(b) CONTENTS.—The Joint Strategic Plan required 

2 under this section shall be comprised of a comprehensive 

3 multiyear plan for enforcing the customs and trade laws 

4 of the United States (as defined in section 2(2) of the Cus5 toms Facilitation and Trade Enforcement Reauthorization 

6 Act of 2009) and for facilitating the international trade 

7 of the United States, and shall include— 

8 ‘‘(1) a summary of actions taken to date to bet9 ter enforce the customs and trade laws of the United 

10 States and to better facilitate the international trade 

11 of the United States, including a description and 

12 analysis of specific performance measures to evalu13 ate the progress of the U.S. Customs and Border 

14 Protection Agency and the U.S. Immigration and 

15 Customs Enforcement Agency in meeting each such 

16 responsibility; 

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

18 further improving the enforcement of the customs 

19 and trade laws of the United States and the facilita20 tion of the international trade of the United States; 

21 ‘‘(3) a specific identification of priority trade 

22 issues that pose a high risk to public health and 

23 safety or to the public fisc, and a description of 

24 strategies and plans for addressing each such risk; 


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1 ‘‘(4) a description of efforts made to improve 

2 consultation and coordination among Federal agen3 cies, and in particular between the U.S. Customs 

4 and Border Protection Agency and the U.S. Immi5 gration and Customs Enforcement Agency, regard6 ing the enforcement of the customs and trade laws 

7 of the United States and the facilitation of the inter8 national trade of the United States; 

9 ‘‘(5) a description of the training that has oc10 curred to date within the U.S. Customs and Border 

11 Protection Agency and the U.S. Immigration and 

12 Customs Enforcement Agency to improve the en13 forcement of the customs and trade laws of the 

14 United States and the facilitation of the inter15 national trade of the United States; 

16 ‘‘(6) a specific identification of any domestic or 

17 international best practices that may further im18 prove the enforcement of the customs and trade laws 

19 of the United States and the facilitation of the inter20 national trade of the United States; and 

21 ‘‘(7) any legislative recommendations to further 

22 improve the enforcement of the customs and trade 

23 laws of the United States or the facilitation of the 

24 international trade of the United States. 

25 ‘‘(c) CONSULTATIONS.— 


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1 ‘‘(1) IN GENERAL.—In developing the Joint 

2 Strategic Plan required under this section, the Com3 missioner and the Director shall consult with— 

4 ‘‘(A) appropriate officials from the relevant 

5 Federal departments and agencies, including— 

6 ‘‘(i) the Department of the Treasury; 

7 ‘‘(ii) the Department of Agriculture; 

8 ‘‘(iii) the Department of Commerce; 

9 ‘‘(iv) the Department of Justice; 

10 ‘‘(v) the Department of the Interior; 

11 ‘‘(vi) the Department of Health and 

12 Human Services; 

13 ‘‘(vii) the Food and Drug Administra14 tion; 

15 ‘‘(viii) the Consumer Product Safety 

16 Commission; and 

17 ‘‘(ix) the Office of the United States 

18 Trade Representative; and 

19 ‘‘(B) the Commercial Customs Operations 

20 Advisory Committee and the Trade Support 

21 Network. 

22 ‘‘(2) OTHER CONSULTATIONS.—In developing 

23 the Joint Strategic Plan required under this section, 

24 the Commissioner and the Director shall seek to 

25 consult with— 


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1 ‘‘(A) appropriate officials from relevant 

2 foreign law enforcement agencies and inter3 national organizations, including the World 

4 Customs Organization; and 

5 ‘‘(B) private sector entities as defined in 

6 section 2(4) of the Customs Facilitation and 

7 Trade Enforcement Reauthorization Act of 

8 2009.’’. 

9 (b) CONFORMING AMENDMENT.—The table of con10 tents for the Customs and Trade Act of 1990 is amended 

11 by inserting after the item relating to section 123, the fol12 lowing new item: 

‘‘Sec. 123A. Joint Strategic Plan.’’. 

13 TITLE II—CUSTOMS FACILITA14 TION, TRADE ENFORCEMENT, 

15 AND TRANSPARENCY 

16 Subtitle A—Customs Facilitation 

17 and Transparency 

18 SEC. 201. TRADE BENEFITS UNDER THE CUSTOMS-TRADE 

19 PARTNERSHIP AGAINST TERRORISM. 

20 (a) IN GENERAL.—The Secretary of Homeland Secu21 rity, acting through the Commissioner of U.S. Customs 

22 and Border Protection and in consultation with the enti23 ties specified in subsection (b), shall develop and imple24 ment additional trade benefits to be provided to Tier 1, 

25 Tier 2, and Tier 3 participants in the Customs-Trade 


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1 Partnership Against Terrorism under subtitle B of title 

2 II of the Security and Accountability for Every Port Act 

3 of 2006 (6 U.S.C. 961 et seq.). 

4 (b) ENTITIES SPECIFIED.—The entities specified in 

5 this subsection are— 

6 (1) the Commercial Customs Operations Advi7 sory Committee established under section 204; 

8 (2) the Trade Support Network; 

9 (3) the Committee on Finance of the Senate; 

10 and 

11 (4) the Committee on Ways and Means of the 

12 House of Representatives. 

13 (c) REPORTS.— 

14 (1) IN GENERAL.—Not later than December 31, 

15 2010, the Secretary of Homeland Security, acting 

16 through the Commissioner of U.S. Customs and 

17 Border Protection, shall submit to the Committee on 

18 Finance of the Senate and the Committee on Ways 

19 and Means of the House of Representatives a re20 port— 

21 (A) describing the trade benefits provided 

22 to Tier 1, Tier 2, and Tier 3 participants in the 

23 Customs-Trade Partnership Against Terrorism 

24 as of the date on which the report is submitted; 

25 and 


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1 (B) describing the additional trade benefits 

2 developed under subsection (a) that have not 

3 been implemented as of the date on which the 

4 report is submitted. 

5 (2) PROGRESS REPORT.—Not later than De6 cember 31, 2011, and December 31, 2012, the Com7 missioner shall submit to the Committee on Finance 

8 of the Senate and the Committee on Ways and 

9 Means of the House of Representatives a report on 

10 the progress made in providing the additional trade 

11 benefits developed under subsection (a). 

12 SEC. 202. CUSTOMS FACILITATION PARTNERSHIP PRO13 GRAM. 

14 Title IV of the Tariff Act of 1930 (19 U.S.C. 1401 

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

16 ‘‘SEC. 499A. CUSTOMS FACILITATION PARTNERSHIP PRO17 GRAM. 

18 ‘‘(a) ESTABLISHMENT.— 

19 ‘‘(1) IN GENERAL.—The Commissioner of U.S. 

20 Customs and Border Protection shall establish a vol21 untary government-private sector program to be 

22 known as the ‘Customs Facilitation Partnership 

23 Program’ (in this section referred to as the ‘Partner24 ship Program’) to facilitate the entry of merchandise 

25 into the United States and to provide benefits deVerDate Nov 24 2008 00:10 Aug 08, 2009 Jkt 079200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S1631.IS S1631

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1 scribed in paragraph (3) to persons described in 

2 paragraph (2) that meet or exceed the requirements 

3 of the Partnership Program established under sub4 section (b)(2). 

5 ‘‘(2) PERSONS DESCRIBED.—Persons described 

6 in this paragraph are persons involved in the entry 

7 of merchandise into the United States, including 

8 intermodal transportation system providers, contract 

9 logistics providers, air, land, and sea carriers, cus10 toms brokers, importers, and forwarders. 

11 ‘‘(3) BENEFITS DESCRIBED.— 

12 ‘‘(A) IN GENERAL.—The benefits described 

13 in this paragraph are such benefits as the Com14 missioner considers appropriate for the purpose 

15 of facilitating the entry of merchandise into the 

16 United States, including— 

17 ‘‘(i) taking into account the participa18 tion of persons in the Partnership Pro19 gram in assessing the risk posed by such 

20 persons for the purposes of commercial 

21 risk assessment targeting under section 

22 211; and 

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

24 priority to persons participating in the 

25 Partnership Program with respect to the 


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1 clearance of merchandise during activities 

2 to resume trade after an incident in which 

3 merchandise entering the United States 

4 was found to pose a threat to the health or 

5 safety of consumers in the United States. 

6 ‘‘(B) CONSULTATION.—In developing bene7 fits under subparagraph (A) to be provided to 

8 persons participating in the Partnership Pro9 gram, the Commissioner shall consult with the 

10 Commercial Customs Operations Advisory Com11 mittee established under section 204 of the 

12 Customs Facilitation and Trade Enforcement 

13 Reauthorization Act of 2009. 

14 ‘‘(b) APPLICATION FOR PARTICIPATION.— 

15 ‘‘(1) IN GENERAL.—The Commissioner of U.S. 

16 Customs and Border Protection shall establish pro17 cedures in accordance with this subsection for per18 sons described in subsection (a)(2) to apply to par19 ticipate in the Partnership Program. 

20 ‘‘(2) MINIMUM REQUIREMENTS.— 

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

22 shall establish minimum requirements for par23 ticipation in the Partnership Program. 

24 ‘‘(B) SPECIFIC CONSIDERATIONS.—In de25 termining whether a person meets the minimum 


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1 requirements for participation in the Partner2 ship Program, the following shall be considered: 

3 ‘‘(i) The person’s history of entering 

4 merchandise into the United States. 

5 ‘‘(ii) The persons’s history of compli6 ance with the customs and trade laws of 

7 the United States (as defined in section 2 

8 of the Customs Facilitation and Trade En9 forcement Reauthorization Act of 2009), 

10 including— 

11 ‘‘(I) properly maintaining im12 porter of record numbers; 

13 ‘‘(II) properly maintaining cus14 toms bonds as required by law; and 

15 ‘‘(III) promptly responding to re16 quests from the U.S. Customs and 

17 Border Protection Agency for infor18 mation or notices of action, liquidated 

19 damages, or civil penalties. 

20 ‘‘(3) CERTIFICATION AND VERIFICATION OF AP21 PLICATIONS.—A person who applies to participate in 

22 the Partnership Program may participate in the 

23 Partnership Program after the Commissioner— 


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1 ‘‘(A) certifies the person as complying with 

2 the requirements established under paragraph 

3 (2); and 

4 ‘‘(B) verifies the information contained in 

5 the person’s application pursuant to paragraph 

6 (4). 

7 ‘‘(4) VERIFICATION OF APPLICATIONS.— 

8 ‘‘(A) IN GENERAL.—The Commissioner 

9 shall establish procedures for verifying the in10 formation contained in applications for partici11 pation in the Partnership Program. The 

12 verification of such information may include a 

13 document review or any other verification meth14 od that the Commissioner determines to be nec15 essary. 

16 ‘‘(B) TIMING.—To the extent practicable, 

17 the Commissioner shall verify the information 

18 contained in an application for participation in 

19 the Partnership Program not later than 90 

20 days after receiving the application. 

21 ‘‘(c) REVERIFICATIONS; MAINTENANCE OF ELIGI22 BILITY.— 

23 ‘‘(1) REVERIFICATION OF PARTICIPANTS.—The 

24 Commissioner of U.S. Customs and Border Protec25 tion shall establish— 


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1 ‘‘(A) a process for reverifying that persons 

2 participating in the Partnership Program con3 tinue to meet the requirements established 

4 under subsection (b)(2); and 

5 ‘‘(B) a process by which persons partici6 pating in the Partnership Program are selected 

7 for reverification— 

8 ‘‘(i) based on an assessment of the 

9 risk posed by such persons; or 

10 ‘‘(ii) using random sampling. 

11 ‘‘(2) CONSEQUENCES FOR LACK OF COMPLI12 ANCE.—If the Commissioner determines, in con13 ducting a reverification under paragraph (1) of a 

14 person participating in the Partnership Program, 

15 that the person fails to meet the requirements for 

16 participation in the Partnership Program established 

17 under subsection (b)(2), or if the Commissioner is 

18 unable to reverify that the person meets those re19 quirements, the Commissioner may suspend all or 

20 some of the benefits provided to the person under 

21 the Partnership Program until the Commissioner is 

22 able to reverify that the person meets those require23 ments. 

24 ‘‘(d) FALSE OR MISLEADING INFORMATION.—If a 

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1 tionally provides false or misleading information to the 

2 Commissioner of U.S. Customs and Border Protection in 

3 the application submitted under subsection (b)(1), during 

4 the verification process under subsection (b)(4), or during 

5 the reverification process under subsection (c), the Com6 missioner shall, in addition to any other penalty provided 

7 by law— 

8 ‘‘(1) deny to the person the benefits provided to 

9 the person under the Partnership Program; and 

10 ‘‘(2) prohibit the person from further participa11 tion in the Partnership Program. 

12 ‘‘(e) APPEALS.— 

13 ‘‘(1) IN GENERAL.— 

14 ‘‘(A) APPEALS OF DENIALS OF APPLICA15 TION.—A person who submits an application 

16 under subsection (b)(1) to participate in the 

17 Partnership Program may appeal a decision of 

18 the Commissioner of U.S. Customs and Border 

19 Protection denying participation in the Partner20 ship Program under subsection (b)(3). 

21 ‘‘(B) APPEALS OF DENIALS OF BENEFITS

22 OR SUSPENSIONS OF PARTICIPATION.—A person 

23 who participates in the Partnership Program 

24 may appeal a decision of the Commissioner de25 nying or suspending benefits provided to the 


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1 person under the Partnership Program under 

2 subsection (c) or (d) or prohibiting the person 

3 from further participation in the Partnership 

4 Program under subsection (d). 

5 ‘‘(2) FILING OF APPEAL.—A person who files 

6 an appeal under paragraph (1) shall file the appeal 

7 with the Commissioner not later than 90 days after 

8 the date on which the person receives notice of the 

9 decision of the Commissioner being appealed. 

10 ‘‘(3) FINAL DETERMINATION.—The Commis11 sioner shall make a final determination with respect 

12 to an appeal under paragraph (1) not later than 180 

13 days after the date on which the appeal is filed 

14 under paragraph (2). 

15 ‘‘(f) ADMINISTRATIVE PROVISIONS.— 

16 ‘‘(1) STAFFING.—The Commissioner of U.S. 

17 Customs and Border Protection shall designate, 

18 train, and maintain not fewer than 7 full-time equiv19 alent personnel in the Office of Trade of the U.S. 

20 Customs and Border Protection Agency to admin21 ister the Partnership Program. 

22 ‘‘(2) CONFIDENTIAL INFORMATION SAFE23 GUARDS.—The Commissioner, in consultation with 

24 the Commercial Customs Operations Advisory Com25 mittee established under section 204 of the Customs 


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1 Facilitation and Trade Enforcement Reauthorization 

2 Act of 2009, shall establish procedures to safeguard 

3 confidential data collected, stored, or shared with the 

4 U.S. Customs and Border Protection Agency or any 

5 other Federal agency during the verification process 

6 under subsection (b)(4) or the reverification process 

7 under subsection (c)(1). 

8 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated such sums as are nec10 essary to carry out the provisions of this section.’’. 

11 SEC. 203. CONSULTATIONS WITH RESPECT TO MUTUAL 

12 RECOGNITION AGREEMENTS. 

13 Not later than 30 days before entering into a Mutual 

14 Recognition Arrangement or similar agreement between 

15 the United States and a foreign government providing for 

16 mutual recognition of supply chain security programs, the 

17 Secretary of Homeland Security shall consult with the 

18 Committee on Finance of the Senate and the Committee 

19 on Ways and Means of the House of Representatives. 

20 SEC. 204. COMMERCIAL CUSTOMS OPERATIONS ADVISORY 

21 COMMITTEE. 

22 (a) ESTABLISHMENT.—Not later than June 30, 

23 2010, the Secretary of the Treasury and the Secretary of 

24 Homeland Security shall jointly establish a Commercial 


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1 Customs Operations Advisory Committee (in this section 

2 referred to as the ‘‘Advisory Committee’’). 

3 (b) MEMBERSHIP.— 

4 (1) IN GENERAL.—The Advisory Committee 

5 shall be comprised of— 

6 (A) 20 individuals appointed under para7 graph (2); 

8 (B) the Assistant Secretary for Tax Policy 

9 of the Department of the Treasury and the As10 sistant Secretary of Policy and Planning of the 

11 Department of Homeland Security, who shall 

12 jointly co-chair meetings of the Advisory Com13 mittee; and 

14 (C) the Commissioner of U.S. Customs 

15 and Border Protection and the Director of U.S. 

16 Immigration and Customs Enforcement, who 

17 shall serve as deputy co-chairs of meetings of 

18 the Advisory Committee. 

19 (2) APPOINTMENT.—Not later than June 30, 

20 2010, the Secretary of the Treasury and the Sec21 retary of Homeland Security shall jointly appoint 20 

22 individuals from the private sector to the Advisory 

23 Committee, not more than 10 of whom shall be of 

24 the same political party. Each individual shall be ap25 pointed to the Advisory Committee for a term of up 


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1 to 4 years, and may be reappointed to subsequent 

2 terms but may not serve more than 2 terms sequen3 tially. 

4 (3) QUALIFICATIONS.—The individuals ap5 pointed to the Advisory Committee shall be broadly 

6 representative of the sectors of the United States 

7 economy affected by the commercial operations of 

8 the U.S. Customs and Border Protection Agency 

9 and the U.S. Immigration and Customs Enforce10 ment Agency. 

11 (4) TRANSFER OF MEMBERSHIP.—The Sec12 retary of the Treasury and the Secretary of Home13 land Security may transfer members serving on the 

14 Advisory Committee on Commercial Operations of 

15 the United States Customs Service established under 

16 section 9503(c) of the Omnibus Budget Reconcili17 ation Act of 1987 (19 U.S.C. 2071 note) on the day 

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

19 Advisory Committee established under subsection 

20 (a). 

21 (c) DUTIES.—The Advisory Committee established 

22 under subsection (a) shall— 

23 (1) advise the Secretary of the Treasury and 

24 the Secretary of Homeland Security on all matters 

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1 toms and Border Protection Agency and the U.S. 

2 Immigration and Customs Enforcement Agency, in3 cluding advising with respect to significant changes 

4 that are proposed with respect to agency regulations, 

5 policies, or practices; 

6 (2) provide recommendations to the Secretary 

7 of the Treasury and the Secretary of Homeland Se8 curity on improvements to the commercial operations 

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

10 and the U.S. Immigration and Customs Enforce11 ment Agency; and 

12 (3) perform such other functions relating to the 

13 commercial operations of the U.S. Customs and Bor14 der Protection Agency and the U.S. Immigration 

15 and Customs Enforcement Agency as prescribed by 

16 law or as the Secretary of the Treasury and the Sec17 retary of Homeland Security jointly direct. 

18 (d) MEETINGS.— 

19 (1) IN GENERAL.—The Advisory Committee 

20 shall meet at the call of the Secretary of the Treas21 ury and the Secretary of Homeland Security or at 

the call of not less than 2 22 ⁄3 of the membership of the 

23 Advisory Committee. 

24 (2) NUMBER OF MEETINGS.—The Advisory 

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


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1 times each calendar year. Additional meetings may 

2 be called of such special task forces or other groups 

3 made up of members of the Advisory Committee as 

4 the Advisory Committee determines appropriate. 

5 (3) ADDITION OF AGENDA ITEMS.—Any mem6 ber of the Advisory Committee may add an item to 

7 the agenda of a meeting not less than 3 days before 

8 the meeting. 

9 (4) OPEN MEETINGS.—A meeting of the Advi10 sory Committee shall be open to the public unless 

11 the Secretary of the Treasury and the Secretary of 

12 Homeland Security determine that the meeting will 

13 include matters the disclosure of which would seri14 ously compromise the development of policies, prior15 ities, or negotiating objectives or positions that could 

16 impact the commercial operations of the U.S. Cus17 toms and Border Protection Agency or the U.S. Im18 migration and Customs Enforcement Agency. 

19 (e) REPORTS.— 

20 (1) ANNUAL REPORT.—Not later than Decem21 ber 31 of each calendar year, the Advisory Com22 mittee shall submit to the Committee on Finance of 

23 the Senate and the Committee on Ways and Means 

24 of the House of Representatives a report that— 


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1 (A) describes the activities of the Advisory 

2 Committee during the preceding fiscal year; and 

3 (B) sets forth any recommendations of the 

4 Advisory Committee regarding the commercial 

5 operations of the U.S. Customs and Border 

6 Protection Agency and the U.S. Immigration 

7 and Customs Enforcement Agency during the 

8 preceding fiscal year. 

9 (2) ADDITIONAL REPORTS.—The Advisory 

10 Committee may submit directly to the Committee on 

11 Finance of the Senate and the Committee on Ways 

12 and Means of the House of Representatives such ad13 ditional reports on the commercial operations of the 

14 U.S. Customs and Border Protection Agency and 

15 the U.S. Immigration and Customs Enforcement 

16 Agency as the Advisory Committee determines ap17 propriate. 

18 (f) APPLICABILITY OF FEDERAL ADVISORY COM19 MITTEE ACT.—The provisions of the Federal Advisory 

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

21 Committee, except as follows: 

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

23 such Act (relating to open meetings and availability 

24 of information) shall not apply. 


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

2 availability of transcripts of meetings) shall not 

3 apply. 

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

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

6 period’’ for ‘‘two-year period’’. 

7 (g) CONFORMING AMENDMENT.— 

8 (1) IN GENERAL.—Effective June 30, 2010, 

9 section 9503(c) of the Omnibus Budget Reconcili10 ation Act of 1987 (19 U.S.C. 2071 note) is repealed. 

11 (2) REFERENCE.—Any reference in law to the 

12 Advisory Committee on Commercial Operations of 

13 the United States Customs Service established under 

14 section 9503(c) of the Omnibus Budget Reconcili15 ation Act of 1987 (19 U.S.C. 2071 note) made on 

16 or after June 30, 2010, shall be deemed a reference 

17 to the Commercial Customs Operations Advisory 

18 Committee established under subsection (a). 

19 SEC. 205. AUTOMATED COMMERCIAL ENVIRONMENT COM20 PUTER SYSTEM. 

21 (a) FUNDING.—Section 13031(f)(5) of the Consoli22 dated Omnibus Budget Reconciliation Act of 1985 (19 

23 U.S.C. 58c(f)(5)) is amended— 

24 (1) in subparagraph (A)— 


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

2 and inserting ‘‘2010, 2011, and 2012’’; and 

3 (B) by striking ‘‘$350,000,000’’ and in4 serting ‘‘$325,000,000’’; and 

5 (2) in subparagraph (B)— 

6 (A) by striking ‘‘2003 through 2005’’ and 

7 inserting ‘‘2010 through 2012’’; and 

8 (B) by striking ‘‘for the development’’ and 

9 inserting ‘‘to complete the development’’. 

10 (b) REPORT.—Section 311(b)(3) of the Customs Bor11 der Security Act of 2002 (19 U.S.C. 2075 note) is amend12 ed to read as follows: 

13 ‘‘(3) REPORT.— 

14 ‘‘(A) IN GENERAL.—Not later than De15 cember 31, 2009, the Commissioner of U.S. 

16 Customs and Border Protection shall submit to 

17 the Committee on Appropriations and the Com18 mittee on Finance of the Senate and the Com19 mittee on Appropriations and the Committee on 

20 Ways and Means of the House of Representa21 tives a report specifying— 

22 ‘‘(i) the plans of the U.S. Customs 

23 and Border Protection Agency and dead24 lines for incorporating all cargo release 

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1 mercial Environment computer system not 

2 later than September 30, 2012, to conform 

3 with the admissibility criteria of agencies 

4 participating in the International Trade 

5 Data System identified pursuant to section 

6 411(d)(4)(A)(iii) of the Tariff Act of 1930; 

7 ‘‘(ii) the Agency’s remaining priorities 

8 for incorporating entry summary data ele9 ments, cargo manifest data elements, and 

10 cargo financial data elements into the 

11 Automated Commercial Environment com12 puter system; and 

13 ‘‘(iii) the Agency’s objectives, plans, 

14 and deadlines for implementing the prior15 ities identified under clause (ii) not later 

16 than September 30, 2012. 

17 ‘‘(B) UPDATE OF REPORTS.—Not later 

18 than December 31, 2010, and September 30, 

19 2011, the Commissioner shall submit to the 

20 Committee on Appropriations and the Com21 mittee on Finance of the Senate and the Com22 mittee on Appropriations and the Committee on 

23 Ways and Means of the House of Representa24 tives an updated report addressing each of the 

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


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1 (c) GOVERNMENT ACCOUNTABILITY OFFICE RE2 PORT.—Not later than December 31, 2012, the Comp3 troller General of the United States shall submit to the 

4 Committee on Appropriations and the Committee on Fi5 nance of the Senate and the Committee on Appropriations 

6 and the Committee on Ways and Means of the House of 

7 Representatives a report— 

8 (1) evaluating the cost and effectiveness of the 

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

10 Agency to complete the development, establishment, 

11 and implementation of the Automated Commercial 

12 Environment computer system; and 

13 (2) assessing the extent to which any additional 

14 functionality may be added into the Automated 

15 Commercial Environment computer system at a rea16 sonable cost. 

17 SEC. 206. INTERNATIONAL TRADE DATA SYSTEM. 

18 (a) INFORMATION TECHNOLOGY INFRASTRUC19 TURE.—Section 411(d) of the Tariff Act of 1930 (19 

20 U.S.C. 1411(d)) is amended— 

21 (1) by redesignating paragraphs (4) through 

22 (7) as paragraphs (5) through (8), respectively; 

23 (2) by inserting after paragraph (3) the fol24 lowing: 


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1 ‘‘(4) INFORMATION TECHNOLOGY INFRASTRUC2 TURE.— 

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

4 work with the head of each agency participating 

5 in the ITDS and the Interagency Steering 

6 Committee to ensure that each such agency— 

7 ‘‘(i) develops and maintains the nec8 essary information technology infrastruc9 ture to support the operation of the ITDS; 

10 ‘‘(ii) enters into a memorandum of 

11 understanding, or takes such other action 

12 as is necessary, to provide for the informa13 tion sharing between the agency and the 

14 U.S. Customs and Border Protection 

15 Agency necessary for the operation and 

16 maintenance of the ITDS; and 

17 ‘‘(iii) not later than November 30, 

18 2009, identifies and transmits to the Com19 missioner of U.S. Customs and Border 

20 Protection the admissibility criteria and 

21 data elements required by the agency to 

22 authorize the release of cargo by the U.S. 

23 Customs and Border Protection Agency for 

24 incorporation into the operational 


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1 functionality of the Automated Commercial 

2 Environment computer system.’’; and 

3 (3) in paragraph (5), as redesignated, by strik4 ing ‘‘each fiscal year’’ and inserting ‘‘each of the fis5 cal years 2010 through 2013’’. 

6 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

7 13031(f)(5) of the Consolidated Omnibus Budget Rec8 onciliation Act of 1985 (19 U.S.C. 58c(f)(5)), as amended 

9 by section 205(a), is further amended by striking subpara10 graph (C) and inserting the following: 

11 ‘‘(C) Of the amounts deposited in the account estab12 lished under subparagraph (A), there shall be available to 

13 the Secretary of the Treasury $25,000,000 for each of the 

14 fiscal years 2010, 2011, and 2012, to remain available 

15 until expended, to carry out the provisions of section 

16 411(d)(4)(A) of the Tariff Act of 1930.’’. 

17 SEC. 207. ELECTRONIC SUBMISSION OF PUBLIC COM18 MENTS. 

19 Not later than December 31, 2009, the Commissioner 

20 of U.S. Customs and Border Protection shall provide— 

21 (1) for the electronic submission and posting of 

22 any public comments solicited by the U.S. Customs 

23 and Border Protection Agency on the Internet 

24 website of the Agency; and 


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1 (2) for the prompt posting of public comments 

2 associated with any rulemaking of the Agency on the 

3 Federal Government Internet website for Federal 

4 regulations, www.regulations.gov, or any successor 

5 website. 

6 Subtitle B—Trade Enforcement 

7 CHAPTER 1—COMMERCIAL RISK 

8 ASSESSMENT TARGETING 

9 SEC. 211. COMMERCIAL TARGETING DIVISION AND NA10 TIONAL TARGETING AND ANALYSIS GROUPS. 

11 (a) ESTABLISHMENT OF COMMERCIAL TARGETING

12 DIVISION.— 

13 (1) IN GENERAL.—The Secretary of Homeland 

14 Security shall establish and maintain within the Of15 fice of Trade of the U.S. Customs and Border Pro16 tection Agency, established under section 4 of the 

17 Act of March 3, 1927, as added by section 102, a 

18 Commercial Targeting Division. 

19 (2) COMPOSITION.—The Commercial Targeting 

20 Division shall be composed of— 

21 (A) headquarters personnel led by an Ex22 ecutive Director, who shall report to the Assist23 ant Commissioner of the Office of Trade; and 

24 (B) individual National Targeting and 

25 Analysis Groups, each led by a Director who 


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1 shall report to the Executive Director of the 

2 Commercial Targeting Division. 

3 (3) DUTIES.—The Commercial Targeting Divi4 sion shall be dedicated— 

5 (A) to the development and conduct of 

6 commercial risk assessment targeting with re7 spect to cargo destined for the United States in 

8 accordance with subsection (c); and 

9 (B) to issuing Trade Alerts described in 

10 subsection (d). 

11 (b) NATIONAL TARGETING AND ANALYSIS

12 GROUPS.— 

13 (1) IN GENERAL.—The Commissioner of U.S. 

14 Customs and Border Protection shall determine the 

15 priorities of the National Targeting and Analysis 

16 Groups referred to in subsection (a)(2)(B), to in17 clude the enforcement, with respect to the importa18 tion of merchandise into the United States, of— 

19 (A) intellectual property rights; 

20 (B) health and safety laws and regulations; 

21 (C) agriculture-related laws and regula22 tions; 

23 (D) textile- and apparel-related laws and 

24 regulations; 


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1 (E) general revenue laws and regulations; 

2 and 

3 (F) non-general revenue laws and regula4 tions, including with respect to antidumping 

5 and countervailing duties. 

6 (c) COMMERCIAL RISK ASSESSMENT TARGETING.— 

7 In carrying out its duties with respect to commercial risk 

8 assessment targeting, the Commercial Targeting Division 

9 shall— 

10 (1) establish targeted risk assessment meth11 odologies and standards— 

12 (A) for evaluating the risk that cargo des13 tined for the United States may violate the cus14 toms and trade laws of the United States; and 

15 (B) for issuing, as appropriate, Trade 

16 Alerts described in subsection (d); and 

17 (2) to the extent practicable and otherwise au18 thorized by law, use information available from the 

19 Automated Commercial System, the Automated 

20 Commercial Environment computer system, the 

21 Automated Targeting System, the Automated Entry 

22 System, the International Trade Data System, and 

23 the Treasury Enforcement Communications System, 

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1 odologies and standards established under paragraph 

2 (1). 

3 (d) TRADE ALERTS.— 

4 (1) ISSUANCE.—Based upon the application of 

5 the targeted risk assessment methodologies and 

6 standards established under subsection (c), the Ex7 ecutive Director of the Commercial Targeting Divi8 sion and the Directors of the National Targeting 

9 and Analysis Groups may issue Trade Alerts to di10 rectors of United States ports of entry directing fur11 ther inspection, or physical examination or testing, 

12 of specific merchandise to ensure compliance with all 

13 applicable customs and trade laws and regulations 

14 administered by the U.S. Customs and Border Pro15 tection Agency. 

16 (2) DETERMINATIONS NOT TO IMPLEMENT

17 TRADE ALERTS.—The director of a United States 

18 port of entry may determine not to conduct further 

19 inspections, or physical examination or testing, pur20 suant to a Trade Alert issued under paragraph (1) 

21 if— 

22 (A) the director finds that such a deter23 mination is justified by port security interests; 

24 and 


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1 (B) notifies the Deputy Assistant Commis2 sioner of the Customs Facilitation and Trade 

3 Enforcement Division of the Office of Field Op4 erations, established under section 5 of the Act 

5 of March 3, 1927, as added by section 102, of 

6 the determination and the reasons for the de7 termination not later than 48 hours after mak8 ing the determination. 

9 (3) SUMMARY OF DETERMINATIONS NOT TO IM10 PLEMENT.—The Deputy Assistant Commissioner for 

11 Customs Facilitation and Trade Enforcement 

12 shall— 

13 (A) compile an annual public summary of 

14 all determinations by directors of United States 

15 ports of entry under paragraph (2) and the rea16 sons for those determinations; and 

17 (B) submit the summary to the Committee 

18 on Finance of the Senate and the Committee on 

19 Ways and Means of the House of Representa20 tives not later than December 31 of each year. 

21 (4) INSPECTION DEFINED.—In this subsection, 

22 the term ‘‘inspection’’ means the comprehensive 

23 evaluation process used by the U.S. Customs and 

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1 chandise into the United States, or the clearance of 

2 merchandise for transportation in bond through the 

3 United States, for purposes of— 

4 (A) assessing duties; 

5 (B) identifying restricted or prohibited 

6 items; and 

7 (C) ensuring compliance with all applicable 

8 customs and trade laws and regulations admin9 istered by the Agency. 

10 (e) USE OF TRADE DATA FOR COMMERCIAL EN11 FORCEMENT PURPOSES.—Section 343(a)(3) of the Trade 

12 Act of 2002 (19 U.S.C. 2071 note) is amended— 

13 (1) by striking subparagraph (F); and 

14 (2) by redesignating subparagraphs (G) 

15 through (L) as subparagraphs (F) through (K), re16 spectively. 

17 SEC. 212. ANNUAL ILLEGAL DRUG CONTROL LAW EN18 FORCEMENT STRATEGY. 

19 (a) IN GENERAL.—Section 123 of the Customs and 

20 Trade Act of 1990 (19 U.S.C. 2083) is amended to read 

21 as follows: 

22 ‘‘SEC. 123. ANNUAL ILLEGAL DRUG CONTROL LAW EN23 FORCEMENT STRATEGY. 

24 ‘‘(a) REPORTS ON VIOLATION ESTIMATES.—Not 

25 later than June 30, 2010, and annually thereafter, the 


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

2 the Director of U.S. Immigration and Customs Enforce3 ment shall jointly develop and submit to the chairperson 

4 and ranking member of the Committee on Finance of the 

5 Senate 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 December 31, 2009, 

23 prepare a list of those provisions of the illegal drug 

24 control laws of the United States with respect to 

25 which the U.S. Customs and Border Protection 


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1 Agency and the U.S. Immigration and Customs En2 forcement Agency have enforcement responsibility 

3 and to which the reports required by subsection (a) 

4 will apply; and 

5 ‘‘(2) may periodically update the list developed 

6 under paragraph (1), as warranted. 

7 ‘‘(c) ENFORCEMENT STRATEGY.—Not later than 90 

8 days after submitting a report under subsection (a), the 

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

10 the Director of U.S. Immigration and Customs Enforce11 ment shall jointly— 

12 ‘‘(1) develop or update a strategy for enforcing 

13 the illegal drug control laws specified in subsection 

14 (b) in a nationally uniform manner and addressing 

15 the violations estimated in the report during the pe16 riod covered by the report; and 

17 ‘‘(2) submit to the chairperson and ranking 

18 member of each of the Committees a confidential re19 port setting forth the details of the strategy de20 scribed in paragraph (1). 

21 ‘‘(d) CONFIDENTIALITY.—The contents of any report 

22 submitted to the chairperson and ranking member of each 

23 of the Committees under subsection (a) or (c) are con24 fidential and the disclosure of the contents is restricted 

25 to— 


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1 ‘‘(1) officers and employees of the United 

2 States designated by the Commissioner of U.S. Cus3 toms and Border Protection or the Director of U.S. 

4 Customs and Immigration Enforcement to have ac5 cess to the contents of the report; 

6 ‘‘(2) the chairperson and ranking member of 

7 each of the Committees; and 

8 ‘‘(3) such Members of Congress and staff of 

9 such Members as the chairperson or ranking mem10 ber of either of the Committees may authorize to 

11 have access to the contents of the report.’’. 

12 (b) CONFORMING AMENDMENT.—The table of con13 tents for the Customs and Trade Act of 1990 is amended 

14 by striking the item relating to section 123 and inserting 

15 the following: 

‘‘Sec. 123. Annual illegal drug control law enforcement strategy.’’. 

16 SEC. 213. REPORT ON OVERSIGHT OF REVENUE PROTEC17 TION AND ENFORCEMENT MEASURES BY THE 

18 INSPECTOR GENERAL. 

19 The Inspector General of the Department of Home20 land Security shall submit to the Committee on Finance 

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

22 the House of Representatives a report assessing the fol23 lowing: 


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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 U.S. Customs and Border Protection Agency to 

14 measure accountability and performance with re15 spect to revenue protection. 

16 (3) The number and outcome of investigations 

17 instituted by the U.S. Customs and Border Protec18 tion Agency with respect to the underpayment of du19 ties. 

20 (4) The adequacy of training with respect to 

21 the collection of duties provided for personnel of the 

22 U.S. Customs and Border Protection Agency. 


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1 SEC. 214. REPORT ON SECURITY AND REVENUE MEASURES 

2 WITH RESPECT TO MERCHANDISE TRANS3 PORTED IN BOND. 

4 (a) IN GENERAL.—Not later than December 31 of 

5 2009, 2011, and 2013, the Secretary of Homeland Secu6 rity and the Secretary of the Treasury shall jointly submit 

7 to the Committee on Finance of the Senate and the Com8 mittee on Ways and Means of the House of Representa9 tives a report on efforts undertaken by the U.S. Customs 

10 and Border Protection Agency to ensure the secure trans11 portation of merchandise in bond through the United 

12 States and the collection of revenue owed upon the entry 

13 of such merchandise into the United States for consump14 tion. 

15 (b) CONTENTS.—The report required by subsection 

16 (a) shall include information, for the 2 fiscal years pre17 ceding the submission of the report, on— 

18 (1) the overall number of entries of merchan19 dise for transportation in bond through the United 

20 States; 

21 (2) the ports at which merchandise arrives in 

22 the United States for transportation in bond and at 

23 which records of the arrival of such merchandise are 

24 generated; 

25 (3) the average time taken to reconcile such 

26 records with the records at the final destination of 


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1 the merchandise in the United States to demonstrate 

2 that the merchandise reaches its final destination or 

3 is reexported; 

4 (4) the average time taken to transport mer5 chandise in bond from the port at which the mer6 chandise arrives in the United States to its final des7 tination in the United States; 

8 (5) the total amount of duties, taxes, and fees 

9 owed with respect to shipments of merchandise 

10 transported in bond and the total amount of such 

11 duties, taxes, and fees paid; 

12 (6) the total number of notifications by carriers 

13 of merchandise being transported in bond that the 

14 destination of the merchandise has changed; and 

15 (7) the number of entries that remain 

16 unreconciled. 

17 SEC. 215. IMPORTER OF RECORD PROGRAM. 

18 (a) ESTABLISHMENT.—Not later than 180 days after 

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

20 Homeland Security shall establish an importer of record 

21 program to assign and maintain importer of record num22 bers. 

23 (b) REQUIREMENTS.—The Secretary of Homeland 

24 Security shall ensure that, as part of the importer of 


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1 record program, the U.S. Customs and Border Protection 

2 Agency— 

3 (1) develops criteria that importers must meet 

4 in order to obtain an importer of record number; 

5 (2) provides a process by which importers are 

6 assigned importer of record numbers; 

7 (3) maintains a centralized database of im8 porter of record numbers, including a history of im9 porter of record numbers associated with each im10 porter; 

11 (4) evaluates the accuracy of the database; and 

12 (5) takes measures to ensure that duplicate im13 porter of record numbers are not issued. 

14 (c) REPORT.—Not later than 1 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 (as in effect on the 

24 day before the date of the enactment of this Act). 


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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 Agriculture. 

15 (5) The United States Trade Representative. 

16 (6) The Director of the Office of Management 

17 and Budget. 

18 (7) The Commissioner of the Food and Drug 

19 Administration. 

20 (8) The Commissioner of U.S. Customs and 

21 Border Protection. 

22 (9) The Chairman of the Consumer Product 

23 Safety Commission. 

24 (10) The head of any other Federal department 

25 or agency designated by the President to participate 


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1 in the interagency Import Safety Working Group, as 

2 appropriate. 

3 (c) DUTIES.—The duties of the interagency Import 

4 Safety Working Group shall include— 

5 (1) consulting on the development of the Joint 

6 Import Safety Rapid Response Plan required by sec7 tion 222; 

8 (2) periodically evaluating the adequacy of the 

9 plans, practices, and resources of the Federal Gov10 ernment dedicated to ensuring the safety of imports 

11 into the United States, including— 

12 (A) reviewing the engagement and coopera13 tion of foreign governments and foreign manu14 facturers in facilitating the inspection and cer15 tification, as appropriate, of such imports and 

16 the facilities producing such imports to ensure 

17 the safety of such imports into the United 

18 States; and 

19 (B) recommending additional administra20 tive measures designed to ensure the safety of 

21 imports, as appropriate; 

22 (3) identifying best practices to assist United 

23 States importers in taking all appropriate steps to 

24 ensure the safety of imports into the United States, 

25 including with respect to— 


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1 (A) the inspection of manufacturing facili2 ties in foreign countries; 

3 (B) the inspection of imports destined for 

4 the United States before exportation from a 

5 foreign country or before distribution in the 

6 United States; and 

7 (C) the protection of the international sup8 ply chain (as defined in section 2 of the Secu9 rity and Accountability For Every Port Act of 

10 2006 (6 U.S.C. 901)); 

11 (4) identifying best practices to assist Federal, 

12 State, and local governments and agencies, and port 

13 authorities, to improve communication and coordina14 tion among such agencies and authorities in re15 sponding to any threats to public health and safety 

16 associated with specific imports into the United 

17 States; and 

18 (5) otherwise identifying appropriate steps to 

19 increase the accountability of United States import20 ers and the engagement of foreign government agen21 cies with respect to ensuring the safety of imports 

22 into the United States. 

23 SEC. 222. JOINT IMPORT SAFETY RAPID RESPONSE PLAN. 

24 (a) IN GENERAL.—Not later than December 31, 

25 2009, the Secretary of Homeland Security, in consultation 


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1 with the interagency Import Safety Working Group, shall 

2 develop a plan (to be known as the ‘‘Joint Import Safety 

3 Rapid Response Plan’’) that sets forth protocols and de4 fines practices for the U.S. Customs and Border Protec5 tion Agency to use— 

6 (1) in taking action in response to, and coordi7 nating Federal responses to, an incident in which 

8 cargo destined for or merchandise entering the 

9 United States has been identified as posing a threat 

10 to the health or safety of consumers in the United 

11 States; and 

12 (2) in recovering from or mitigating the effects 

13 of actions and responses to an incident described in 

14 paragraph (1). 

15 (b) CONTENTS.—The Joint Import Safety Rapid Re16 sponse Plan shall address— 

17 (1) the statutory and regulatory authorities and 

18 responsibilities of the U.S. Customs and Border Pro19 tection Agency and other Federal departments and 

20 agencies in responding to an incident described in 

21 subsection (a)(1); 

22 (2) the protocols and practices to be used by 

23 the U.S. Customs and Border Protection Agency 

24 when taking action in response to, and coordinating 


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1 Federal responses to, an incident described in sub2 section (a)(1); 

3 (3) the measures to be taken by the U.S. Cus4 toms and Border Protection Agency and other Fed5 eral departments and agencies in recovering from or 

6 mitigating the effects of actions taken in response to 

7 an incident described in subsection (a)(1) after the 

8 incident; and 

9 (4) exercises that the U.S. Customs and Border 

10 Protection Agency may conduct in conjunction with 

11 Federal, State, and local departments and agencies 

12 to simulate responses to an incident described in 

13 subsection (a)(1). 

14 (c) UPDATES OF PLAN.—The Secretary of Homeland 

15 Security shall review and update the Joint Import Safety 

16 Rapid Response Plan, as appropriate, after conducting ex17 ercises under subsection (d). 

18 (d) IMPORT HEALTH AND SAFETY EXERCISES.— 

19 (1) IN GENERAL.—The Secretary of Homeland 

20 Security and the Commissioner of U.S. Customs and 

21 Border Protection shall periodically engage in the 

22 exercises referred to in subsection (b)(4), in conjunc23 tion with Federal, State, and local departments and 

24 agencies, as appropriate, to test and evaluate the 

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1 port Safety Rapid Response Plan at United States 

2 ports of entry. 

3 (2) REQUIREMENTS FOR EXERCISES.—In con4 ducting exercises under paragraph (1), the Secretary 

5 and the Commissioner shall— 

6 (A) make allowance for the resources, 

7 needs, and constraints of United States ports of 

8 entry of different sizes in representative geo9 graphic locations across the United States; 

10 (B) base evaluations on current risk as11 sessments of merchandise entering the United 

12 States at representative United States ports of 

13 entry located across the United States; and 

14 (C) ensure that such exercises are con15 ducted in a manner consistent with the Na16 tional Incident Management System, the Na17 tional Response Plan, the National Infrastruc18 ture Protection Plan, the National Prepared19 ness Guidance, the Maritime Transportation 

20 System Security Plan, and other such national 

21 initiatives of the Department of Homeland Se22 curity, as appropriate. 

23 (3) REQUIREMENTS FOR TESTING AND EVALUA24 TION.—The Secretary and the Commissioner shall 


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1 ensure that the testing and evaluation carried out in 

2 conducting exercises under paragraph (1)— 

3 (A) are performed using clear and objec4 tive performance measures; and 

5 (B) result in the identification of specific 

6 recommendations or best practices for respond7 ing to an incident described in subsection 

8 (a)(1). 

9 (4) DISSEMINATION OF RECOMMENDATIONS

10 AND BEST PRACTICES.—The Secretary and the 

11 Commissioner shall— 

12 (A) share the recommendations or best 

13 practices identified under paragraph (3) among 

14 the members of the interagency Import Safety 

15 Working Group and with, as appropriate— 

16 (i) State and local governments; 

17 (ii) tribal and foreign governments; 

18 and 

19 (iii) private sector entities (as defined 

20 in section 2); and 

21 (B) use such recommendations and best 

22 practices to update the Joint Import Safety 

23 Rapid Response Plan. 


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1 SEC. 223. TRAINING. 

2 The Commissioner of U.S. Customs and Border Pro3 tection shall ensure that personnel of the U.S. Customs 

4 and Border Protection Agency assigned to ports of entry 

5 are trained to effectively administer the provisions of this 

6 chapter and to otherwise assist in ensuring the safety of 

7 imports into the United States. 

8 CHAPTER 3—IMPORT-RELATED PROTEC9 TION OF INTELLECTUAL PROPERTY 

10 RIGHTS 

11 SEC. 231. INTELLECTUAL PROPERTY RIGHTS. 

12 In this chapter (other than section 232), the term 

13 ‘‘intellectual property rights’’ refers to copyrights, trade14 marks, and other forms of intellectual property rights that 

15 are enforced by the U.S. Customs and Border Protection 

16 Agency. 

17 SEC. 232. NATIONAL INTELLECTUAL PROPERTY RIGHTS 

18 COORDINATION CENTER. 

19 (a) ESTABLISHMENT.—The Secretary of Homeland 

20 Security shall— 

21 (1) establish within the U.S. Immigration and 

22 Customs Enforcement Agency a National Intellec23 tual Property Rights Coordination Center; and 

24 (2) appoint an Assistant Director to head the 

25 National Intellectual Property Rights Coordination 

26 Center. 


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1 (b) DUTIES.—The duties of the Assistant Director of 

2 the National Intellectual Property Rights Coordination 

3 Center shall include— 

4 (1) coordinating the investigation of sources of 

5 goods imported into the United States that infringe 

6 intellectual property rights to identify organizations 

7 that produce, smuggle, or distribute such goods; 

8 (2) coordinating training for domestic and 

9 international law enforcement agencies on investiga10 tive best practices to develop and expand the capa11 bility of such agencies to enforce intellectual prop12 erty rights; 

13 (3) coordinating activities conducted by the 

14 United States to prevent the importation or expor15 tation of goods that infringe intellectual property 

16 rights; 

17 (4) supporting the interdiction of goods des18 tined for the United States that infringe intellectual 

19 property rights; 

20 (5) collecting information regarding infringe21 ments of intellectual property rights from non-Fed22 eral sources; 

23 (6) integrating information from domestic and 

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1 tion received from non-Federal sources regarding in2 fringements of intellectual property rights; and 

3 (7) disseminating information regarding in4 fringements of intellectual property rights to other 

5 Federal agencies for use in appropriate investigative 

6 and tactical activities. 

7 (c) COORDINATION WITH OTHER AGENCIES.—In 

8 carrying out the duties described in subsection (b), the As9 sistant Director of the National Intellectual Property 

10 Rights Coordination Center shall coordinate with— 

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

12 Agency; 

13 (2) the Food and Drug Administration; 

14 (3) the Department of Justice; 

15 (4) the Department of Commerce; 

16 (5) the United States Postal Inspection Service; 

17 (6) any Federal, State, local, or international 

18 law enforcement agencies the Director of U.S. Immi19 gration and Customs Enforcement considers appro20 priate; and 

21 (7) any other entities the Director of U.S. Im22 migration and Customs Enforcement considers ap23 propriate. 


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1 SEC. 233. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT 

2 OF INTELLECTUAL PROPERTY RIGHTS. 

3 The Commissioner of U.S. Customs and Border Pro4 tection and the Director of U.S. Immigration and Customs 

5 Enforcement shall include in the Joint Strategic Plan (as 

6 defined in section 2)— 

7 (1) a description of the efforts of the Depart8 ment of Homeland Security to enforce intellectual 

9 property rights; 

10 (2) a list of the 10 United States ports of entry 

11 where the U.S. Customs and Border Protection 

12 Agency has seized the most goods, by volume, that 

13 infringe intellectual property rights during the most 

14 recent 2-year period for which data are available; 

15 and 

16 (3) a recommendation for the optimal allocation 

17 of personnel, resources, and technology to ensure 

18 that the U.S. Customs and Border Protection Agen19 cy and the U.S. Immigration and Customs Enforce20 ment Agency are adequately enforcing intellectual 

21 property rights. 

22 SEC. 234. REPEATED IMPORT-RELATED INFRINGEMENT OF 

23 INTELLECTUAL PROPERTY RIGHTS. 

24 (a) IN GENERAL.—The Assistant Commissioner of 

25 the Office of Trade of the U.S. Customs and Border Pro26 tection Agency shall identify and maintain a confidential 


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1 list of persons described in subsection (b) that have a his2 tory of attempting to import goods that infringe intellec3 tual property rights into the United States. 

4 (b) PERSONS DESCRIBED.—Persons described in this 

5 subsection are persons involved in the entry of goods into 

6 the United States, including intermodal transportation 

7 system providers, contract logistics providers, air, land, 

8 and sea carriers, customs brokers, importers, and for9 warders. 

10 (c) COMMERCIAL RISK ASSESSMENT TARGETING.— 

11 The Commercial Targeting Division of the Office of Trade 

12 established under section 211 shall consider the list under 

13 subsection (a) when establishing targeted risk assessment 

14 methodologies and standards under section 211(c). 

15 (d) REMOVAL FROM LIST.—The Assistant Commis16 sioner of the Office of Trade shall— 

17 (1) periodically review the list of persons under 

18 subsection (a); and 

19 (2) remove persons from the list that have dem20 onstrated a pattern of compliance with intellectual 

21 property rights. 

22 SEC. 235. PERSONNEL DEDICATED TO THE ENFORCEMENT 

23 OF INTELLECTUAL PROPERTY RIGHTS. 

24 (a) IN GENERAL.—The Commissioner of U.S. Cus25 toms and Border Protection shall ensure that sufficient 


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1 personnel are assigned throughout the U.S. Customs and 

2 Border Protection Agency who have responsibility for pre3 venting the importation of goods that infringe intellectual 

4 property rights into the United States, including the Com5 mercial Targeting Division established under section 211 

6 and the Office of Rulings and Regulations of the Office 

7 of Trade. 

8 (b) PORT PERSONNEL.—The Commissioner of U.S. 

9 Customs and Border Protection shall ensure that at least 

10 1 full-time employee with principal responsibility for pre11 venting the importation into the United States of goods 

12 that infringe intellectual property rights is assigned to 

13 each United States port of entry on the list required by 

14 section 233(2). 

15 (c) STAFFING.—The Commissioner of U.S. Customs 

16 and Border Protection shall assign not fewer than 3 full17 time employees of the U.S. Customs and Border Protec18 tion Agency to the National Intellectual Property Rights 

19 Coordination Center established under section 232. 

20 (d) REPORT.—Not later than December 31, 2010, 

21 the Commissioner of U.S. Customs and Border Protection 

22 shall submit to the Committee on Finance of the Senate 

23 and the Committee on Ways and Means of the House of 

24 Representatives a report estimating the average time re25 quired by the Office of Rulings and Regulations of the 


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1 Office of Trade to make a determination with respect to 

2 whether goods detained by the U.S. Customs and Border 

3 Protection Agency infringe intellectual property rights, 

4 distinguishing among types of intellectual property rights. 

5 SEC. 236. TRAINING WITH RESPECT TO THE ENFORCEMENT 

6 OF INTELLECTUAL PROPERTY RIGHTS. 

7 (a) TRAINING.—The Commissioner of U.S. Customs 

8 and Border Protection shall ensure that officers of the 

9 U.S. Customs and Border Protection Agency are trained 

10 to effectively detect and identify goods destined for the 

11 United States that infringe intellectual property rights, in12 cluding through the use of technologies identified under 

13 subsection (b). 

14 (b) IDENTIFICATION OF NEW TECHNOLOGIES.—In 

15 consultation with private sector entities (as defined in sec16 tion 2), the Commissioner of U.S. Customs and Border 

17 Protection shall identify— 

18 (1) technologies with the cost-effective capa19 bility to detect and identify goods at United States 

20 ports of entry that infringe intellectual property 

21 rights; and 

22 (2) cost-effective programs for training officers 

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

24 to use such technologies. 


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1 (c) DONATIONS OF TECHNOLOGY.—Not later than 

2 180 days after the date of the enactment of this Act, the 

3 Commissioner of U.S. Customs and Border Protection 

4 shall promulgate regulations to enable the U.S. Customs 

5 and Border Protection Agency to receive donations of 

6 hardware, software, equipment, and similar technologies, 

7 and to accept training and other support services from pri8 vate sector entities. 

9 SEC. 237. RECORDATION OF WORKS FOR WHICH A COPY10 RIGHT IS PENDING. 

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

12 1930 (19 U.S.C. 1526) is amended— 

13 (1) by redesignating subsection (f) as sub14 section (g); and 

15 (2) by inserting after subsection (e) the fol16 lowing: 

17 ‘‘(f) RECORDATION OF WORKS FOR WHICH A COPY18 RIGHT IS PENDING.— 

19 ‘‘(1) IN GENERAL.—Subject to paragraph (3), a 

20 person who submits an application to the Copyright 

21 Office of the Library of Congress for registration of 

22 a copyright under title 17, United States Code, with 

23 respect to a work described in paragraph (2) may 

24 request the Commissioner of U.S. Customs and Bor25 der Protection— 


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1 ‘‘(A) to record the application of the per2 son for registration of the copyright; and 

3 ‘‘(B) to enforce the copyright for which the 

4 person submitted the application to the same 

5 extent and in the same manner as if the copy6 right was registered with the Copyright Office. 

7 ‘‘(2) ELIGIBLE WORKS.—Works described in 

8 this paragraph are recordings, motion pictures, or 

9 similar works otherwise eligible for registration 

10 under title 17, United States Code. 

11 ‘‘(3) PROOF OF SUBSEQUENT REGISTRATION.— 

12 ‘‘(A) IN GENERAL.—Not later than the 

13 date that is 30 days after the date on which the 

14 Copyright Office registers, or denies the reg15 istration of, the copyright of a person who re16 quested that the Commissioner record the appli17 cation for the copyright under paragraph (1), 

18 the person shall submit to the Commissioner 

19 proof of the registration of the copyright or a 

20 notice of the denial of the registration of the 

21 copyright, as the case may be. 

22 ‘‘(B) NOTICES TO COMMISSIONER WHILE

23 APPLICATION PENDING.—Not later than 1 year 

24 after the date on which a person requests that 

25 the Commissioner record the application of the 


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1 person for a copyright under paragraph (1), 

2 and annually thereafter until the Copyright Of3 fice registers the copyright or denies the appli4 cation for the copyright, the person shall submit 

5 to the Commissioner a notice that the applica6 tion for the copyright remains pending before 

7 the Copyright Office. 

8 ‘‘(C) CANCELLATION OF RECORDATION.— 

9 The Commissioner may cancel the recordation 

10 of an application for a copyright under para11 graph (1) if— 

12 ‘‘(i) the person who requested that the 

13 Commissioner record the application for 

14 the copyright— 

15 ‘‘(I) fails to submit proof of the 

16 registration of the copyright to the 

17 Commissioner by the date required 

18 under subparagraph (A); or 

19 ‘‘(II) fails to submit a notice that 

20 the application for the copyright re21 mains pending by a date required 

22 under subparagraph (B); or 

23 ‘‘(ii) the Commissioner receives notice 

24 that the Copyright Office denied the appli25 cation for the copyright.’’. 


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1 (b) CONFORMING AMENDMENT.—Subsection (g) of 

2 such section 526, as redesignated by subsection (a), is 

3 amended by striking ‘‘(e)’’ and inserting ‘‘(e) or (f)’’. 

4 SEC. 238. AVAILABILITY OF SAMPLES TO OWNERS OF COPY5 RIGHTS AND TRADEMARKS OR PERSONS IN6 JURED BY THE IMPORTATION OF CIR7 CUMVENTION DEVICES. 

8 (a) MERCHANDISE THAT MAY INFRINGE A COPY9 RIGHT OR TRADEMARK.—The Commissioner of U.S. Cus10 toms and Border Protection may provide a sample of mer11 chandise detained or seized by the U.S. Customs and Bor12 der Protection Agency because the merchandise may in13 fringe a copyright or trademark to the owner of the copy14 right or trademark (as the case may be) to conduct phys15 ical examination or testing to determine if the merchan16 dise infringes the copyright or trademark (as the case may 

17 be). 

18 (b) CIRCUMVENTION DEVICES.—The Commissioner 

19 of U.S. Customs and Border Protection may provide a 

20 sample of merchandise detained or seized by the U.S. Cus21 toms and Border Protection Agency because the importa22 tion of the merchandise may be prohibited by subsection 

23 (a)(2) or (b)(1) of section 1201 of title 17, United States 

24 Code, to any person who may be injured by the importa25 tion of the merchandise to conduct physical examination 


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1 or testing to determine if the importation of the merchan2 dise is prohibited under either such subsection. 

3 (c) BOND REQUIREMENT FOR MERCHANDISE OVER

4 $100.—If the value of a sample of merchandise described 

5 in subsection (a) or (b) is more than $100, the Commis6 sioner of U.S. Customs and Border Protection shall re7 quire a person requesting such a sample to furnish a bond 

8 in the form and amount specified by the director of the 

9 United States port of entry where the merchandise entered 

10 the United States. 

11 SEC. 239. SEIZURE OF CIRCUMVENTION DEVICES. 

12 (a) IN GENERAL.—Section 596(c)(2) of the Tariff 

13 Act of 1930 (19 U.S.C. 1595a(c)(2)) is amended— 

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

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

16 and inserting ‘‘; or’’; and 

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

18 ‘‘(G) the U.S. Customs and Border Protec19 tion Agency determines it is a technology, prod20 uct, service, device, component, or part thereof 

21 the importation of which is prohibited under 

22 section 1201(a)(2) or 1201(b)(1) of title 17, 

23 United States Code.’’. 

24 (b) PUBLICATION.—Not later than 15 days after seiz25 ing merchandise pursuant to section 596(c)(2)(G) of the 


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1 Tariff Act of 1930, as added by subsection (a), the Com2 missioner of U.S. Customs and Border Protection shall 

3 publish on the Internet website of the U.S. Customs and 

4 Border Protection Agency information regarding the mer5 chandise seized to permit any person to identify the mer6 chandise and determine whether the merchandise is— 

7 (1) a technology, product, service, device, com8 ponent, or part thereof described in section 

9 1201(a)(2) of title 17, United States Code, that— 

10 (A) is primarily designed or produced for 

11 the purpose of circumventing a technological 

12 measure that effectively controls access to a 

13 work for which the person has a copyright that 

14 is registered under title 17, United States Code, 

15 or that is otherwise recorded with the U.S. Cus16 toms and Border Protection Agency; 

17 (B) has only limited commercially signifi18 cant purpose or use other than to circumvent 

19 such a technological measure; or 

20 (C) is marketed for use in circumventing 

21 such a technological measure; or 

22 (2) a technology, product, service, device, com23 ponent, or part thereof described in section 

24 1201(b)(1) of title 17, United States Code, that— 


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1 (A) is primarily designed or produced for 

2 the purpose of circumventing protection af3 forded by a technological measure that effec4 tively protects a right of the person for a work 

5 or a portion of a work that is registered under 

6 title 17, United States Code, or that is other7 wise recorded with the U.S. Customs and Bor8 der Protection Agency; 

9 (B) has only limited commercially signifi10 cant purpose or use other than to circumvent 

11 protection afforded by such a technological 

12 measure; or 

13 (C) is marketed for use in circumventing 

14 protection afforded such a technological meas15 ure. 

16 (c) APPLICATION.—Not later than 30 days after pub17 lishing the information required under subsection (b) with 

18 respect to seized merchandise, any person that determines 

19 that the seized merchandise is merchandise that infringes 

20 a right of the person as described in subsection (b) (or 

21 an agent of such a person) may submit to the U.S. Cus22 toms and Border Protection Agency an application that— 

23 (1) identifies the person as a person who holds 

24 such a right (or an agent of such a person); and 


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1 (2) requests the information described in sub2 section (d). 

3 (d) DISCLOSURE.—Not later than 30 days after re4 ceiving an application described in subsection (c), the U.S. 

5 Customs and Border Protection Agency shall disclose to 

6 the person who submitted the application the following in7 formation: 

8 (1) The date of importation of the merchandise 

9 seized. 

10 (2) The United States port of entry at which 

11 the merchandise was seized. 

12 (3) A description of the merchandise. 

13 (4) The quantity of merchandise seized. 

14 (5) The country of origin of the merchandise. 

15 (6) The name and address of the foreign manu16 facturer of the merchandise. 

17 (7) The name and address of the exporter of 

18 the merchandise. 

19 (8) The name and address of the importer of 

20 the merchandise. 

21 SEC. 240. INFORMATION FOR TRAVELERS REGARDING VIO22 LATIONS OF INTELLECTUAL PROPERTY 

23 RIGHTS. 

24 The Secretary of Homeland Security shall develop 

25 and carry out an educational campaign to inform travelers 


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1 entering or leaving the United States about the legal, eco2 nomic, and public health and safety implications of acquir3 ing goods that infringe intellectual property rights outside 

4 the United States and importing such goods into the 

5 United States in violation of United States law. 

6 SEC. 241. INTERNATIONAL COOPERATION AND INFORMA7 TION SHARING. 

8 (a) COOPERATION.—To the extent practicable and 

9 appropriate, the Secretary of Homeland Security shall co10 ordinate with the competent law enforcement authorities 

11 of foreign governments, including by sharing information 

12 relevant to enforcement actions, to enhance the efforts of 

13 United States and foreign law enforcement agencies to en14 force intellectual property rights. 

15 (b) TECHNICAL ASSISTANCE.—To the extent prac16 ticable and appropriate, the Secretary of Homeland Secu17 rity shall provide technical assistance to competent law en18 forcement authorities of foreign governments to enhance 

19 the ability of such authorities to enforce intellectual prop20 erty rights. 

21 SEC. 242. SENSE OF CONGRESS REGARDING RECORDATION 

22 PROCESS. 

23 It is the sense of Congress that the Commissioner 

24 of U.S. Customs and Border Protection should work with 

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1 tor of the United States Patent and Trademark Office of 

2 the Department of Commerce and the Register of Copy3 rights of the Library of Congress to consider a system 

4 under which— 

5 (1) a trademark may be recorded with the U.S. 

6 Customs and Border Protection Agency simulta7 neously with the issuance of trademark registration 

8 by the United States Patent and Trademark Office; 

9 and 

10 (2) a copyright may be recorded with the U.S. 

11 Customs and Border Protection Agency simulta12 neously with the registration of a copyright by the 

13 Register of Copyrights. 

14 TITLE III—MISCELLANEOUS 

15 PROVISIONS 

16 SEC. 301. CONSULTATION ON TRADE AND CUSTOMS REV17 ENUE FUNCTIONS. 

18 Section 401(c) of the Safety and Accountability for 

19 Every Port Act (6 U.S.C. 115(c)) is amended— 

20 (1) in paragraph (1), by striking ‘‘on Depart21 ment policies and actions that have’’ and inserting 

22 ‘‘not later than 30 days after proposing, and not 

23 later than 30 days before finalizing, any Department 

24 policies, initiatives, or actions that will have’’; and 


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1 (2) in paragraph (2)(A), by striking ‘‘not later 

2 than 30 days prior to the finalization of’’ and insert3 ing ‘‘not later than 60 days before proposing, and 

4 not later than 60 days before finalizing,’’. 

5 SEC. 302. DRAWBACK FOR EXPORTED MERCHANDISE. 

6 (a) IN GENERAL.—Section 313 of the Tariff Act of 

7 1930 (19 U.S.C. 1313) is amended to read as follows: 

8 ‘‘SEC. 313. DRAWBACK FOR EXPORTED MERCHANDISE. 

9 ‘‘(a) DEFINITIONS.—In this section: 

10 ‘‘(1) BILL OF MATERIALS; FORMULA.—The 

11 terms ‘bill of materials’ and ‘formula’ mean records 

12 kept in the ordinary course of business that identify 

13 each component incorporated into merchandise or 

14 that identify the quantity of each element, material, 

15 chemical, mixture, or other substance incorporated 

16 into merchandise. 

17 ‘‘(2) COMMISSIONER.—The term ‘Commis18 sioner’ means the Commissioner of U.S. Customs 

19 and Border Protection. 

20 ‘‘(3) DESTRUCTION.—The term ‘destruction’ 

21 means a process by which merchandise loses all com22 mercial value, other than the value of any material 

23 that may be recovered when the merchandise is de24 stroyed. 


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1 ‘‘(4) DIRECT IDENTIFICATION.—The term ‘di2 rect identification’ means identifying, for drawback 

3 purposes, merchandise when exported as the same 

4 merchandise previously imported or as merchandise 

5 into which the imported merchandise is incorporated 

6 using— 

7 ‘‘(A) the serial number or other unique 

8 identifier of the merchandise; or 

9 ‘‘(B) such accounting methods as are pro10 vided for by regulation by the Commissioner. 

11 ‘‘(5) DIRECTLY.—The term ‘directly’ means a 

12 transfer of merchandise from 1 person to another 

13 person without any intermediate transfer. 

14 ‘‘(6) FUNGIBLE.—The term ‘fungible’ means, 

15 with respect to merchandise, merchandise that is 

16 commercially identical to other merchandise in all in17 stances. 

18 ‘‘(7) GOOD SUBJECT TO CHILE FTA DRAW19 BACK.—The term ‘good subject to Chile FTA draw20 back’ has the meaning given that term in section 

21 203(a) of the United States-Chile Free Trade Agree22 ment Implementation Act (19 U.S.C. 3805 note). 

23 ‘‘(8) GOOD SUBJECT TO NAFTA DRAWBACK.— 

24 The term ‘good subject to NAFTA drawback’ has 

25 the meaning given that term in section 203(a) of the 


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1 North American Free Trade Agreement Implemen2 tation Act (19 U.S.C. 3333(a)). 

3 ‘‘(9) HTS.—The term ‘HTS’ means the Har4 monized Tariff Schedule of the United States (19 

5 U.S.C. 1202). 

6 ‘‘(10) INCORPORATED.—The term ‘incor7 porated’ means any operation by which merchandise 

8 becomes classifiable in a different 8-digit HTS sub9 heading number. 

10 ‘‘(11) INDIRECTLY.—The term ‘indirectly’ 

11 means a transfer of merchandise from 1 person to 

12 another person with 1 or more intermediate trans13 fers. 

14 ‘‘(12) NAFTA COUNTRY.—The term ‘NAFTA 

15 country’ has the meaning given that term in section 

16 2 of the North American Free Trade Agreement Im17 plementation Act (19 U.S.C. 3301). 

18 ‘‘(13) SCHEDULE B.—The term ‘Schedule B’ 

19 means the Department of Commerce Schedule B, 

20 Statistical Classification of Domestic and Foreign 

21 Commodities Exported from the United States. 

22 ‘‘(14) SUBSTITUTE MERCHANDISE.—The term 

23 ‘substitute merchandise’ means merchandise that is 

24 substituted for other merchandise for drawback pur25 poses pursuant to subsection (b)(3). 


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1 ‘‘(15) VESSEL.—The term ‘vessel’ includes ves2 sels, parts of vessels, aircraft, and parts of aircraft. 

3 ‘‘(b) IN GENERAL.— 

4 ‘‘(1) DRAWBACK.—If merchandise is imported 

5 into the United States and merchandise described in 

6 paragraph (2) is then exported, duties, fees, and 

7 taxes paid upon entry or importation of the mer8 chandise shall be refunded as drawback in an 

9 amount determined under subsection (d). 

10 ‘‘(2) ELIGIBLE MERCHANDISE.— 

11 ‘‘(A) IN GENERAL.—Merchandise described 

12 in this paragraph is— 

13 ‘‘(i) the imported merchandise; 

14 ‘‘(ii) merchandise that is substituted 

15 for the imported merchandise pursuant to 

16 paragraph (3); 

17 ‘‘(iii) merchandise into which the im18 ported merchandise or substitute merchan19 dise is incorporated; or 

20 ‘‘(iv) merchandise that is substituted, 

21 pursuant to paragraph (3), for merchan22 dise into which the imported merchandise 

23 or substitute merchandise is incorporated. 

24 ‘‘(B) IDENTIFICATION OF MERCHAN25 DISE.—A person claiming drawback under this 


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1 section shall demonstrate that the merchandise 

2 being exported is merchandise described in this 

3 paragraph based on information contained in 

4 the line item for the imported merchandise on 

5 the entry summary form and information con6 tained in the line item for the exported mer7 chandise in the automated export system. 

8 ‘‘(3) SUBSTITUTION.— 

9 ‘‘(A) IN GENERAL.—Except as provided in 

10 this paragraph, merchandise may be substituted 

11 for other merchandise if it can be demonstrated 

12 that the merchandise was classifiable under the 

13 same 8-digit HTS subheading number as the 

14 other merchandise at some point during the 5- 

15 year period beginning on the date on which the 

16 merchandise was imported. 

17 ‘‘(B) LIMITATION ON SUBSTITUTION

18 BASED ON EXCISE TAX RATE.—Notwith19 standing subparagraph (A), merchandise sub20 ject to one excise tax rate may not be sub21 stituted for merchandise subject to another ex22 cise tax rate. 

23 ‘‘(C) SPECIAL RULES.— 

24 ‘‘(i) In the case of merchandise that is 

25 classifiable under heading 2710 or 3901 


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1 through 3914 of the HTS, the merchan2 dise may be substituted for other merchan3 dise if the merchandise is classifiable under 

4 the same 8-digit HTS subheading number 

5 as the other merchandise under the HTS 

6 as in effect on January 1, 2000. 

7 ‘‘(ii) Merchandise that is classifiable 

8 under subheading 2204.21.50, 2204.29.20, 

9 or 2204.29.60 of the HTS may be sub10 stituted for other merchandise that is clas11 sifiable under any such subheading. 

12 ‘‘(iii) Merchandise that is classifiable 

13 under subheading 2204.21.80, 2204.29.40, 

14 or 2204.29.80 of the HTS may be sub15 stituted for other merchandise that is clas16 sifiable under any such subheading. 

17 ‘‘(D) CLASSIFICATION.—The Schedule B 

18 number for merchandise may be used for pur19 poses of determining under subparagraph (A) 

20 or (C) if the merchandise is or has been classifi21 able under the same 8-digit HTS subheading 

22 number as other merchandise. 

23 ‘‘(4) ELIGIBILITY FOR DRAWBACK FOR MER24 CHANDISE INCORPORATED INTO OTHER MERCHAN25 DISE.—Imported merchandise described in paraVerDate Nov 24 2008 00:10 Aug 08, 2009 Jkt 079200 PO 00000 Frm 00128 Fmt 6652 Sfmt 6201 E:\BILLS\S1631.IS S1631

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1 graph (1) that is incorporated into other merchan2 dise shall be eligible for drawback under this section 

3 regardless of the number of times the merchandise 

4 is incorporated into other merchandise or such other 

5 merchandise is incorporated into other merchandise 

6 if the merchandise is otherwise eligible for drawback 

7 under this section. 

8 ‘‘(5) SPECIAL RULES FOR ETHYL ALCOHOL.— 

9 ‘‘(A) IN GENERAL.—Notwithstanding any 

10 other provision of law, in the case of any duty 

11 paid under subheading 9901.00.50 of the HTS 

12 on imports of ethyl alcohol or a mixture of ethyl 

13 alcohol, such duty may not be refunded if the 

14 exported merchandise upon which a drawback 

15 claim is based does not contain ethyl alcohol or 

16 a mixture of ethyl alcohol. 

17 ‘‘(B) APPLICABILITY.—This paragraph 

18 shall apply with respect to— 

19 ‘‘(i) imports of ethyl alcohol or a mix20 ture of ethyl alcohol entered for consump21 tion, or withdrawn from warehouse for 

22 consumption, on or after October 1, 2008; 

23 and 

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1 tion, or withdrawn from warehouse for 

2 consumption, on or after October 1, 2008, 

3 if a duty drawback claim is filed with re4 spect to such imports on or after October 

5 1, 2010. 

6 ‘‘(c) ELIGIBILITY TO CLAIM DRAWBACK.— 

7 ‘‘(1) PERSON MAKING CLAIM.—A person may 

8 claim drawback under this section if the person— 

9 ‘‘(A)(i) imports the merchandise on which 

10 the claim is based; or 

11 ‘‘(ii) obtains the importer’s permission to 

12 claim the drawback; and 

13 ‘‘(B)(i) exports the merchandise on which 

14 the claim is based; or 

15 ‘‘(ii) obtains the exporter’s permission to 

16 claim drawback. 

17 ‘‘(2) CLAIM FOR DRAWBACK ON MERCHANDISE

18 INCORPORATED.—If drawback is claimed with re19 spect to imported merchandise or substitute mer20 chandise incorporated into other merchandise, the 

21 person making the claim shall submit a bill of mate22 rials or formula identifying the imported merchan23 dise or substitute merchandise and the merchandise 

24 into which it is incorporated by the 8-digit HTS sub25 heading number and the quantity of the imported 


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1 merchandise or substitute merchandise (as the case 

2 may be) and the merchandise into which it is incor3 porated. Imported merchandise or substitute mer4 chandise shall be deemed incorporated into other 

5 merchandise if the bill of materials or formula for 

6 such other merchandise includes the imported mer7 chandise or substitute merchandise. 

8 ‘‘(3) ELECTRONIC FILING.—A claim for draw9 back under this section shall be filed electronically. 

10 ‘‘(4) TIME LIMIT FOR CLAIM.—Drawback may 

11 be paid under this section only if the claim for draw12 back is filed not later than 5 years after the date on 

13 which the merchandise is imported. If merchandise 

14 with respect to which drawback is claimed is im15 ported on more than 1 date, the earliest date of im16 portation shall be used for purposes of this para17 graph. 

18 ‘‘(d) AMOUNT OF DRAWBACK.— 

19 ‘‘(1) IN GENERAL.—The amount of drawback 

20 paid pursuant to this section shall be equal to 99 

21 percent of the product of— 

22 ‘‘(A) the number of units of merchandise 

23 exported to claim drawback with respect to im24 ported merchandise, and 

25 ‘‘(B) the lesser of— 


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1 ‘‘(i) the average of duties, taxes, and 

2 fees paid for each unit of the imported 

3 merchandise with respect to which draw4 back is claimed, or 

5 ‘‘(ii) the average amount of duties, 

6 taxes, and fees that would apply to the ex7 ported merchandise if the exported mer8 chandise were imported. 

9 ‘‘(2) LIMITATION.—The amount of duties, 

10 taxes, and fees that may be refunded as drawback 

11 with respect to imported merchandise pursuant to 

12 this subsection shall be reduced by the amount of 

13 any duties, taxes, and fees previously refunded to a 

14 person with respect to such merchandise. 

15 ‘‘(e) REFUNDS, WAIVERS, OR REDUCTIONS UNDER

16 CERTAIN FREE TRADE AGREEMENTS.— 

17 ‘‘(1) IN GENERAL.—Subject to section 

18 508(b)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 

19 1508(b)(2)(B)), if merchandise that is exported to a 

20 NAFTA country is a good subject to NAFTA draw21 back, no customs duties on the good may be re22 funded, waived, or reduced in an amount that ex23 ceeds the lesser of— 


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1 ‘‘(A) the total amount of customs duties 

2 paid or owed on the good on importation into 

3 the United States; or 

4 ‘‘(B) the total amount of customs duties 

5 paid on the good on importation into the 

6 NAFTA country. 

7 ‘‘(2) SPECIAL RULE FOR CANADA.—If Canada 

8 ceases to be a NAFTA country and the suspension 

9 of the operation of the United States-Canada Free10 Trade Agreement thereafter terminates, then for 

11 purposes of subsection (b), the shipment to Canada 

12 during the period such Agreement is in operation of 

13 merchandise made from or substituted for a good el14 igible for drawback under section 204(a) of the 

15 United States-Canada Free-Trade Agreement Imple16 mentation Act of 1988 (Public Law 100–449; 19 

17 U.S.C. 2112 note) does not constitute an expor18 tation. 

19 ‘‘(3) SPECIAL RULE FOR CHILE.— 

20 ‘‘(A) IN GENERAL.—For purposes of sub21 sections (b) and (g)(2), if merchandise that is 

22 exported to Chile is a good subject to Chile 

23 FTA drawback, no customs duties on the good 

24 may be refunded, waived, or reduced, except as 

25 provided in subparagraph (B). 


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1 ‘‘(B) AMOUNT OF CUSTOMS DUTIES.—The 

2 customs duties referred to in subparagraph (A) 

3 may be refunded, waived, or reduced by— 

4 ‘‘(i) 100 percent during the 8-year pe5 riod beginning on January 1, 2004; 

6 ‘‘(ii) 75 percent during the 1-year pe7 riod beginning on January 1, 2012; 

8 ‘‘(iii) 50 percent during the 1-year pe9 riod beginning on January 1, 2013; and 

10 ‘‘(iv) 25 percent during the 1-year pe11 riod beginning on January 1, 2014. 

12 ‘‘(4) FUNGIBLE MERCHANDISE EXPORTED TO

13 NAFTA COUNTRIES OR CHILE.— 

14 ‘‘(A) FUNGIBLE MERCHANDISE EXPORTED

15 TO NAFTA COUNTRIES.—The exportation to a 

16 NAFTA country of merchandise that is fungible 

17 with and substituted for imported merchandise, 

18 other than merchandise described in paragraphs 

19 (1) through (8) of section 203(a) of the North 

20 American Free Trade Agreement Implementa21 tion Act (19 U.S.C. 3333(a)), shall not be 

22 treated as an exportation of substitute mer23 chandise for purposes of drawback under sub24 section (b)(3). 


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1 ‘‘(B) FUNGIBLE MERCHANDISE EXPORTED

2 TO CHILE.—Beginning on January 1, 2015, the 

3 exportation to Chile of merchandise that is fun4 gible with and substituted for imported mer5 chandise, other than merchandise described in 

6 paragraphs (1) through (5) of section 203(a) of 

7 the United States-Chile Free Trade Agreement 

8 Implementation Act (19 U.S.C. 3805 note), 

9 shall not be treated as an exportation of sub10 stitute merchandise for purposes of drawback 

11 under subsection (b)(3). The preceding sentence 

12 shall not be construed to permit the substi13 tution of merchandise under subsection (b) with 

14 respect to merchandise described in paragraph 

15 (2) of section 203(a) of the United States-Chile 

16 Free Trade Agreement Implementation Act. 

17 ‘‘(f) PROOF OF EXPORTATION.—A person claiming 

18 drawback under this section shall submit, as proof of ex19 portation, 1 of the following: 

20 ‘‘(1) The record of exportation entered in the 

21 United States Government automated export system 

22 or, if the exporter is unable to use that system, evi23 dence of information similar to the information con24 tained in such a record. 


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1 ‘‘(2) In the case of a drawback claim filed pur2 suant to paragraph (1) or (2) of subsection (e), the 

3 entry records from Canada or Mexico. 

4 ‘‘(3) In the case of a deemed export, any record 

5 that establishes the deemed export. 

6 ‘‘(g) SPECIAL ELIGIBILITY RULES.— 

7 ‘‘(1) DESTRUCTION OF MERCHANDISE.— 

8 ‘‘(A) ELIGIBILITY FOR DRAWBACK.— 

9 Drawback under this section may be claimed 

10 with respect to imported merchandise if— 

11 ‘‘(i) the imported merchandise or mer12 chandise into which the imported merchan13 dise is incorporated— 

14 ‘‘(I) is not exported because of 

15 its destruction; and 

16 ‘‘(II) was not used in the United 

17 States before its destruction; and 

18 ‘‘(ii) the person claiming the draw19 back uses direct identification to identify 

20 the imported merchandise that is destroyed 

21 or incorporated into other merchandise 

22 that is destroyed. 

23 ‘‘(B) AMOUNT OF DRAWBACK.—Subject to 

24 subparagraph (C), the amount of drawback 

25 paid pursuant to subparagraph (A) shall be the 


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1 amount of drawback determined under sub2 section (d)(1). 

3 ‘‘(C) LIMITATIONS.— 

4 ‘‘(i) DUTIES, TAXES, AND FEES PRE5 VIOUSLY REFUNDED.—The amount of du6 ties, taxes, and fees to be refunded with re7 spect to imported merchandise pursuant to 

8 this paragraph shall be reduced by the 

9 amount of any duties, taxes, and fees pre10 viously refunded to an importer of record 

11 or the person claiming drawback with re12 spect to such merchandise. 

13 ‘‘(ii) VALUE OF MATERIALS RECOV14 ERED DURING DESTRUCTION.—The value 

15 of the imported merchandise with respect 

16 to which drawback is claimed shall be re17 duced by the value of any materials recov18 ered during the destruction of the mer19 chandise (including the value of any tax 

20 benefit or royalty payment with respect to 

21 such materials). 

22 ‘‘(2) VESSELS BUILT FOR RESIDENTS OF A

23 FOREIGN COUNTRY.—Drawback under this section 

24 may be claimed for materials imported and used in 

25 the construction and equipment of vessels built for 


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1 foreign account and ownership, or for the govern2 ment of any foreign country, notwithstanding that 

3 such vessels may not within the strict meaning of 

4 the term be exported. 

5 ‘‘(3) AGRICULTURAL PRODUCTS.—No drawback 

6 may be claimed under this section for an agricul7 tural product with respect to which an over-quota 

8 rate of duty has been paid, unless— 

9 ‘‘(A) the product is identified as the im10 ported agricultural product using direct identi11 fication; and 

12 ‘‘(B) the product has not been used in the 

13 United States. 

14 ‘‘(4) MERCHANDISE NOT REGULARLY EN15 TERED.—Imported merchandise that is not regularly 

16 entered, or withdrawn from warehouse for consump17 tion, does not satisfy the exportation or destruction 

18 requirements of this section. 

19 ‘‘(5) CERTAIN EXPORTED MERCHANDISE.— 

20 ‘‘(A) IN GENERAL.—Except as provided in 

21 subparagraph (B), upon the exportation of fla22 voring extracts, flavors, medicines, medicinal 

23 preparations, or perfumes manufactured or pro24 duced in the United States in part from domes25 tic alcohol on which an internal revenue tax has 


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1 been paid, there shall be allowed a drawback in 

2 an amount equal to the tax found to have been 

3 paid on the alcohol so used. 

4 ‘‘(B) LIMITATION.—If drawback has been 

5 claimed under section 5114 of the Internal Rev6 enue Code of 1986 with respect to flavoring ex7 tracts, flavors, medicines, medicinal prepara8 tions, or perfumes manufactured or produced in 

9 the United States, the amount of drawback 

10 under this paragraph shall be limited to $1 per 

11 proof gallon. 

12 ‘‘(C) FORM OF CLAIM.—A claim for draw13 back under this paragraph shall be submitted in 

14 such form, at such times, and under such con15 ditions as the Secretary of the Treasury shall 

16 prescribe by regulation. 

17 ‘‘(h) PROHIBITION ON OTHER CLAIMS FOR DRAW18 BACK.—Merchandise that is exported or destroyed to sat19 isfy a claim for drawback shall not be the basis of any 

20 other claim for drawback, except that appropriate credit 

21 and deductions for claims covering components or ingredi22 ents of such merchandise shall be made in computing 

23 drawback payments. 

24 ‘‘(i) LIABILITY FOR CLAIM.— 


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1 ‘‘(1) IN GENERAL.—Any person making a claim 

2 for drawback with respect to imported merchandise 

3 shall be liable for the full amount of the drawback 

4 on the imported merchandise. 

5 ‘‘(2) LIABILITY OF IMPORTERS.—An importer 

6 shall be liable for any drawback claim made by an7 other person with respect to imported merchandise 

8 in an amount equal to the amount of duties, taxes, 

9 and fees that the importer authorizes the other per10 son to claim with respect to the imported merchan11 dise. 

12 ‘‘(3) JOINT AND SEVERAL LIABILITY.—Any 

13 person described in paragraphs (1) and (2) shall be 

14 jointly and severally liable for the amount described 

15 in paragraph (2). 

16 ‘‘(4) ORDER OF RECOVERY.—The Secretary of 

17 the Treasury shall seek to recover the amount of the 

18 drawback from a person described in paragraph (1) 

19 before seeking recovery from an importer described 

20 in paragraph (2). 

21 ‘‘(j) PAYMENT FROM RECEIPTS OF PUERTO RICO.— 

22 A drawback under this section for merchandise shall be 

23 paid from the customs receipts of Puerto Rico if the duties 

24 for such merchandise were originally paid into the Treas25 ury of Puerto Rico.’’. 


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1 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

2 (1) REFUNDS.—Section 505(b) of the Tariff 

3 Act of 1930 (19 U.S.C. 1505(b)), is amended by 

4 adding at the end the following: ‘‘Refunds of excess 

5 moneys deposited, as determined on a liquidation or 

6 reliquidation, shall be reduced by any amount paid, 

7 on an accelerated basis or otherwise, to a person 

8 claiming drawback pursuant to section 313.’’. 

9 (2) REVIEW OF PROTESTS.—The second sen10 tence of section 515(a) of the Tariff Act of 1930 (19 

11 U.S.C. 1515(a)) is amended by striking the period 

12 at the end and inserting ‘‘in accordance with section 

13 505.’’. 

14 (3) REFUNDS, WAIVERS, AND REDUCTIONS OF

15 DUTY UNDER NAFTA.—Section 508(b)(2)(B) of the 

16 Tariff Act of 1930 (19 U.S.C. 1508(b)(2)(B)) is 

17 amended by striking ‘‘section 313(n)(2) or (o)(1)’’ 

18 and inserting ‘‘section 313(e)(1)’’. 

19 (c) EFFECTIVE DATE.— 

20 (1) IN GENERAL.—The amendments made by 

21 this section shall— 

22 (A) take effect on the date on which the 

23 Commissioner of U.S. Customs and Border 

24 Protection publishes in the Federal Register a 

25 finding that the Automated Commercial EnviVerDate Nov 24 2008 00:10 Aug 08, 2009 Jkt 079200 PO 00000 Frm 00141 Fmt 6652 Sfmt 6201 E:\BILLS\S1631.IS S1631

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1 ronment computer system is the exclusive sys2 tem of record in the United States for filing 

3 entry summaries; and 

4 (B) except as provided in paragraph (2), 

5 apply to drawback claims filed with respect to 

6 merchandise that enters the United States on 

7 or after such date. 

8 (2) TRANSITION RULE.—During the 1-year pe9 riod beginning on the date described in paragraph 

10 (1)(A), a person may elect to file a claim for draw11 back under— 

12 (A) section 313 of the Tariff Act of 1930, 

13 as amended by this section; or 

14 (B) section 313 of the Tariff Act of 1930, 

15 as in effect on the day before the date described 

16 in paragraph (1)(A). 

17 (d) GOVERNMENT ACCOUNTABILITY OFFICE RE18 PORT.—Not later than October 1, 2012, the Comptroller 

19 General of the United States shall submit to the Com20 mittee on Finance of the Senate and the Committee on 

21 Ways and Means of the House of Representatives a report 

22 that contains— 

23 (1) an evaluation of the costs and benefits to 

24 the Federal Government, and the benefits to the pri25 vate sector, resulting from the implementation of 


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1 section 313 of the Tariff Act of 1930, as amended 

2 by this section; and 

3 (2) an assessment of the extent to which the 

4 implementation of such section 313 may permit a 

5 person claiming drawback with respect to imported 

6 merchandise to receive drawback in excess of the du7 ties, taxes, or fees paid on the imported merchan8 dise. 

9 SEC. 303. PENALTIES FOR CUSTOMS BROKERS. 

10 (a) IN GENERAL.—Section 641(d)(1) of the Tariff 

11 Act of 1930 (19 U.S.C. 1641(d)(1)) is amended— 

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

13 inserting a semicolon; 

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

15 and inserting ‘‘; or’’; and 

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

17 ‘‘(G) has been convicted of committing or 

18 conspiring to commit an act of terrorism de19 scribed in section 2332b of title 18, United 

20 States Code.’’. 

21 (b) TECHNICAL AMENDMENTS.—Section 641 of the 

22 Tariff Act of 1930 (19 U.S.C. 1641) is amended— 

23 (1) in subsection (g)(2)(B), by striking ‘‘Sec24 retary’s notice’’ and inserting ‘‘notice under sub25 paragraph (A)’’; and 


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1 (2) by striking ‘‘Customs Service’’ each place it 

2 appears and inserting ‘‘U.S. Customs and Border 

3 Protection Agency’’. 

4 SEC. 304. ARTICLES REPAIRED OR ALTERED. 

5 (a) ARTICLES EXPORTED AND RETURNED, NOT AD6 VANCED OR IMPROVED IN CONDITION.—Subchapter I of 

7 chapter 98 of the Harmonized Tariff Schedule of the 

8 United States is amended— 

9 (1) in the article description for the item relat10 ing to subheading 9801.00.20, by inserting ‘‘bail11 ment agreements, or for warehousing, repackaging, 

12 or both,’’ after ‘‘similar use agreements,’’; and 

13 (2) by adding at the end of the U.S. Notes the 

14 following: 

15 ‘‘3.(a) For purposes of subheading 9801.00.20, fun16 gible goods exported from the United States— 

17 ‘‘(i) may be commingled; and 

18 ‘‘(ii) the origin, value, and classification of such 

19 goods may be accounted for using an inventory man20 agement method. 

21 ‘‘(b) If a person chooses to use an inventory manage22 ment method under subdivision (a) with respect to fun23 gible goods, the person shall use the same inventory man24 agement method for those goods with respect to which the 

25 person claims fungibility. 


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1 ‘‘(c) For purposes of this note— 

2 ‘‘(i) the term ‘fungible good’ means any good 

3 that is commercially identical to another good in all 

4 instances; and 

5 ‘‘(ii) the term ‘inventory management method’ 

6 means any method for managing inventory that is 

7 based on generally accepted accounting principles. 

8 ‘‘4. For purposes of subheading 9801.00.26— 

9 ‘‘(a) an article is sold for exportation and ex10 ported to an individual outside of the United States 

11 for personal use if the article— 

12 ‘‘(i) is sold to the individual through the 

13 Internet or a catalogue or in any other similar 

14 manner; and 

15 ‘‘(ii) delivered to the individual from a 

16 warehouse, distribution center, or similar facil17 ity in the United States; and 

18 ‘‘(b) an article exported to an individual under 

19 subdivision (a) is reimported as a personal return if 

20 the article is— 

21 ‘‘(i) returned by the individual to the ware22 house, distribution center, or similar facility in 

23 the United States from which the article was 

24 delivered; and 


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1 ‘‘(ii) resold, without regard to whom the 

2 article is resold.’’. 

3 (b) ARTICLES EXPORTED AND RETURNED, AD4 VANCED OR IMPROVED ABROAD.—Subchapter II of chap5 ter 98 of the Harmonized Tariff Schedule of the United 

6 States is amended by adding at the end of U.S. Note 3 

7 the following: 

8 ‘‘(f)(i) For purposes of subheadings 9802.00.40 

9 and 9802.00.50, fungible goods exported from the 

10 United States for the purposes described in such 

11 subheadings— 

12 ‘‘(A) may be commingled; and 

13 ‘‘(B) the origin, value, and classification of 

14 such goods may be accounted for using an in15 ventory management method. 

16 ‘‘(ii) If a person chooses to use an inventory 

17 management method under this subdivision with re18 spect to fungible goods, the person shall use the 

19 same inventory management method for those goods 

20 with respect to which the person claims fungibility. 

21 ‘‘(iii) For purposes of this subdivision— 

22 ‘‘(A) the term ‘fungible good’ means any 

23 good that is commercially identical to another 

24 good in all instances; and 


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1 ‘‘(B) the term ‘inventory management 

2 method’ means any method for managing inven3 tory that is based on generally accepted ac4 counting principles.’’. 

5 SEC. 305. CHARTER FLIGHTS. 

6 Section 13031(e)(1) of the Consolidated Omnibus 

7 Budget Reconciliation Act of 1985 (19 U.S.C. 58c(e)(1)) 

8 is amended— 

9 (1) by striking ‘‘(1) Notwithstanding section 

10 451 of the Tariff Act of 1930 (19 U.S.C. 1451) or 

11 any other provision of law (other than paragraph 

12 (2))’’ and inserting the following: 

13 ‘‘(1)(A) Notwithstanding section 451 of the Tariff 

14 Act of 1930 (19 U.S.C. 1451) or any other provision of 

15 law (other than subparagraph (B) and paragraph (2))’’; 

16 and 

17 (2) by adding at the end the following: 

18 ‘‘(B)(i) An appropriate officer of the U.S. Customs 

19 and Border Protection Agency may assign a sufficient 

20 number of employees from the Agency (if available) to per21 form services described in clause (ii) for a charter air car22 rier (as defined in section 40102(a)(13) of title 49, United 

23 States Code) for a charter flight arriving after normal op24 erating hours at an airport that is an established port of 

25 entry serviced by the Agency, notwithstanding that overVerDate Nov 24 2008 00:10 Aug 08, 2009 Jkt 079200 PO 00000 Frm 00147 Fmt 6652 Sfmt 6201 E:\BILLS\S1631.IS S1631

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1 time funds for those services are not available, if the char2 ter air carrier— 

3 ‘‘(I) not later than 4 hours before the flight ar4 rives, specifically requests that such services be pro5 vided; and 

6 ‘‘(II) pays any overtime fees incurred in connec7 tion with such services. 

8 ‘‘(ii) Services described in this clause are customs 

9 services for passengers and their baggage or any other 

10 such service that could lawfully be performed during reg11 ular hours of operation.’’. 

12 SEC. 306. SYMPOSIUM FEES. 

13 (a) IN GENERAL.—The Secretary of Homeland Secu14 rity may collect fees from any non-Federal participant in 

15 a conference, seminar, exhibition, symposium, or similar 

16 meeting conducted by the Department of Homeland Secu17 rity in advance of such a meeting to offset the costs to 

18 the Department of conducting the meeting. 

19 (b) EXCESS FEES.—Any fees collected by the Sec20 retary pursuant to subsection (a) that exceed the actual 

21 costs to the Department of conducting a meeting referred 

22 to in that subsection shall be deposited into the Treasury 

23 as miscellaneous receipts. 


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1 SEC. 307. PILOT PROGRAM FOR ESTABLISHING 24-HOUR 

2 COMMERCIAL LAND BORDER PORTS OF 

3 ENTRY. 

4 (a) IN GENERAL.—The President shall establish a 

5 pilot program under which the President shall— 

6 (1) pursuant to chapter 223 of the Act of Au7 gust 1, 1914 (19 U.S.C. 2), designate certain land 

8 border crossings as commercial ports of entry in ac9 cordance with subsection (b); and 

10 (2) ensure that each commercial port of entry 

11 designated under paragraph (1) has sufficient re12 sources— 

13 (A) to carry out the functions of a com14 mercial port of entry, including accepting en15 tries of merchandise, collecting duties, and en16 forcing the customs and trade laws of the 

17 United States; and 

18 (B) to perform the functions described in 

19 subparagraph (A) 24 hours a day. 

20 (b) DESIGNATION.— 

21 (1) IN GENERAL.—Not later than 180 days 

22 after the date of the enactment of this Act, the 

23 President shall designate as 24-hour commercial 

24 ports of entry under the pilot program— 

25 (A) not less than 1 and not more than 3 

26 land border crossings on the northern border of 


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1 the United States that meet the criteria de2 scribed in paragraph (2); and 

3 (B) not less than 1 and not more than 3 

4 land border crossings on the southern border of 

5 the United States that meet the criteria de6 scribed in paragraph (2). 

7 (2) CRITERIA FOR DESIGNATION.—The criteria 

8 described in this paragraph are, with respect to a 

9 land border crossing, the following: 

10 (A) The land border crossing is located in 

11 a State that has 2 or fewer 24-hour commercial 

12 ports of entry. 

13 (B) The land border crossing is located on 

14 land owned by the United States Government. 

15 (C) An environmental assessment has been 

16 made of the land on which the border crossing 

17 is located. 

18 (D) The costs associated with the designa19 tion of the land border crossing as a commer20 cial port of entry do not exceed $30,000,000. 

21 (E) Based on an economic study, a deter22 mination is made that the designation will have 

23 a positive economic impact on the local commu24 nity where the land border crossing is located. 


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1 (F) The appropriate authorities of the 

2 Government of Canada or Mexico, as the case 

3 may be, have expressed an intention to commit 

4 resources to a similar designation of a cor5 responding foreign port. 

6 (G) A State or local government has dem7 onstrated support for the designation through 

8 infrastructure improvements to facilitate the 

9 operation of the land border crossing as a 24- 

10 hour commercial port of entry. 

11 (c) REPORT.—Not later than 90 days before the 

12 President makes a determination under subsection (d)(1), 

13 the President shall submit to the Committee on Finance 

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

15 House of Representatives a report that provides— 

16 (1) a comparison of the vehicle traffic crossing 

17 at each land border crossing— 

18 (A) before the designation of the crossing 

19 as a 24-hour commercial port of entry under 

20 the pilot program; and 

21 (B) after the port of entry becomes fully 

22 operational as a 24-hour commercial port of 

23 entry under the pilot program; 

24 (2) an estimate of the total value of commercial 

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1 ignated as a 24-hour commercial port of entry after 

2 becoming fully operational as a 24-hour commercial 

3 port of entry; and 

4 (3) a comparison of— 

5 (A) wait times at other ports of entry in 

6 each State in which a port of entry is des7 ignated as a 24-hour commercial port of entry 

8 under the pilot program during the 2-year pe9 riod preceding the designation; and 

10 (B) wait times at such other ports of entry 

11 in the State after the port of entry in the State 

12 designated as a 24-hour commercial port of 

13 entry becomes fully operational as a 24-hour 

14 commercial port of entry. 

15 (d) TERMINATION.— 

16 (1) DETERMINATION OF ECONOMIC BENEFIT.— 

17 Not later than the date that is 2 years after the date 

18 on which a port of entry becomes fully operational 

19 as a 24-hour commercial port of entry under the 

20 pilot program, the President shall— 

21 (A) determine whether the operation of the 

22 port of entry 24 hours a day provides a net eco23 nomic benefit to the United States; and 

24 (B) submit to the Committee on Finance 

25 of the Senate and the Committee on Ways and 


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1 Means of the House of Representatives a report 

2 on that determination and the reasons for that 

3 determination. 

4 (2) TERMINATION.—If the President deter5 mines under paragraph (1) that operating a port of 

6 entry 24 hours a day does not provide a net eco7 nomic benefit to the United States, that port of 

8 entry shall cease to operate 24 hours a day on the 

9 date on which the President submits the report 

10 under paragraph (1)(B). 

11 SEC. 308. PROHIBITION ON IMPORTATION OF GOODS MADE 

12 WITH FORCED OR INDENTURED LABOR OR 

13 BY BENEFIT OF HUMAN TRAFFICKING. 

14 (a) GOODS MADE WITH FORCED LABOR.— 

15 (1) IN GENERAL.—Section 307 of the Tariff 

16 Act of 1930 (19 U.S.C. 1307) is amended to read 

17 as follows: 

18 ‘‘SEC. 307. PROHIBITION ON IMPORTATION OF GOODS 

19 MADE WITH FORCED OR INDENTURED LABOR 

20 OR BY BENEFIT OF HUMAN TRAFFICKING. 

21 ‘‘(a) PROHIBITION ON IMPORTATION.—No good may 

22 be imported into the United States, if that good was pro23 duced, in whole or in part— 

24 ‘‘(1) with convict labor, forced labor, or inden25 tured labor under penal sanctions; 


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1 ‘‘(2) by means of coercion (as defined in section 

2 103 of the Trafficking Victims Protection Act of 

3 2000 (22 U.S.C. 7102)), including by means of an 

4 employer withholding the passport or other travel 

5 documents of a foreign worker in order to compel 

6 the production of that good; or 

7 ‘‘(3) by 1 or more individuals who, at the time 

8 of the production were being subjected to a severe 

9 form of trafficking in persons (as defined in section 

10 103 of the Trafficking Victims Protection Act of 

11 2000 (22 U.S.C. 7102)). 

12 ‘‘(b) CIVIL PENALTIES.— 

13 ‘‘(1) IN GENERAL.—Any person who violates 

14 any provision of this section or any regulation issued 

15 under this section may, in addition to any other civil 

16 or criminal penalty that may be imposed under this 

17 Act or title 18, United States Code, or any other 

18 provision of law, be assessed a civil penalty by the 

19 Secretary of Homeland Security of not more than— 

20 ‘‘(A) for the first violation, an amount 

21 equal to 3 times the value of the goods im22 ported or attempted to be imported in violation 

23 of this section; and 

24 ‘‘(B) for the second and subsequent viola25 tions, an amount equal to 6 times the value of 


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1 the goods imported or attempted to be imported 

2 in violation of this section. 

3 ‘‘(2) DEBARMENT.— 

4 ‘‘(A) IN GENERAL.—The Secretary may 

5 prohibit a person from importing any good into 

6 the United States, or exporting any good from 

7 the United States, if the Secretary finds that 

8 the person has engaged in a pattern or practice 

9 of actions that has resulted in a final deter10 mination with respect to the assessment of civil 

11 or criminal penalties for knowing and inten12 tional or grossly negligent violations of any pro13 vision of this section or any regulation issued 

14 under this section. 

15 ‘‘(B) REINSTATEMENT.—The Secretary 

16 may retract a prohibition imposed with respect 

17 to a person under subparagraph (A) if the Sec18 retary determines that changed circumstances 

19 warrant such a retraction. 

20 ‘‘(3) NOTICE.—No penalty may be assessed 

21 under this section against a person for violating a 

22 provision of this section or a regulation issued under 

23 this section unless the person is given notice and op24 portunity for a hearing with respect to such violation 


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1 in accordance with section 554 of title 5, United 

2 States Code. 

3 ‘‘(c) DEFINITIONS.—In this section: 

4 ‘‘(1) CHILD LABOR.—The terms ‘forced labor’ 

5 and ‘indentured labor’ include forced or indentured 

6 child labor. 

7 ‘‘(2) CONVICT LABOR.—The term ‘convict labor’ 

8 means work performed by an individual while im9 prisoned by a foreign government and without com10 pensation. 

11 ‘‘(3) FORCED LABOR.—The term ‘forced labor’ 

12 means all work or service that is exacted from any 

13 person under the menace of any penalty for non14 performance and in which the person does not en15 gage voluntarily. 

16 ‘‘(4) GOODS.—The term ‘goods’ means goods, 

17 wares, articles, and merchandise. 

18 ‘‘(5) INDENTURED LABOR UNDER PENAL SANC19 TIONS.—The term ‘indentured labor under penal 

20 sanctions’ means work performed under a contract if 

21 the contract can be enforced through the imposition 

22 of a penalty or imprisonment. 

23 ‘‘(6) PRODUCED.—The term ‘produced’ means 

24 produced, mined, or manufactured.’’. 


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1 (2) EFFECTIVE DATE.—The amendment made 

2 by this subsection applies to goods entered, or with3 drawn from warehouse for consumption, on or after 

4 the date that is 15 days after the date of the enact5 ment of this Act. 

6 (b) MONITORING AND REPORTING.— 

7 (1) ESTABLISHMENT OF OFFICE FOR LABOR

8 ENFORCEMENT.— 

9 (A) IN GENERAL.—There is established 

10 within the U.S. Immigration and Customs En11 forcement Agency of the Department of Home12 land Security an Office for Labor Enforcement 

13 (in this subsection referred to as the ‘‘Office’’) 

14 to coordinate enforcement of the prohibition on 

15 importing goods described in section 307 of the 

16 Tariff Act of 1930, as amended by this section. 

17 (B) ASSISTANT DIRECTOR.—The Office 

18 shall be headed by the Assistant Director for 

19 Labor Enforcement who shall— 

20 (i) be appointed by the Secretary of 

21 Homeland Security, in consultation with 

22 the Secretary of the Treasury; and 

23 (ii) report to the Director of U.S. Im24 migration and Customs Enforcement. 


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1 (C) DUTIES.—The Assistant Director 

2 shall— 

3 (i) oversee the investigations of the 

4 U.S. Immigration and Customs Enforce5 ment Agency with respect to the prohibi6 tion on importing goods described in sec7 tion 307 of the Tariff Act of 1930; 

8 (ii) coordinate efforts to enforce the 

9 prohibition on importing goods described in 

10 section 307 of the Tariff Act of 1930, and 

11 centralize information collected with re12 spect to that prohibition, by— 

13 (I) the U.S. Immigration and 

14 Customs Enforcement Agency; 

15 (II) the U.S. Customs and Bor16 der Protection Agency; 

17 (III) the Department of the 

18 Treasury; 

19 (IV) the Department of State; 

20 (V) the Department of Labor; 

21 (VI) the Department of Com22 merce; and 

23 (VII) the Foreign Agricultural 

24 Service of the Department of Agri25 culture; 


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1 (iii) coordinate with foreign govern2 ments to prevent the exportation to the 

3 United States of goods prohibited under 

4 section 307 of the Tariff Act of 1930; 

5 (iv) prepare and publish the list of 

6 producers described in paragraph (2); and 

7 (v) report annually, as described in 

8 paragraph (3), to the Committee on Fi9 nance of the Senate and the Committee on 

10 Ways and Means of the House of Rep11 resentatives. 

12 (2) LIST OF PRODUCERS.— 

13 (A) IN GENERAL.—The list described in 

14 this paragraph is a list compiled and regularly 

15 updated by the Assistant Director for Labor 

16 Enforcement that includes the name and coun17 try of each producer of goods the importation 

18 of which is prohibited under section 307 of the 

19 Tariff Act of 1930. The list and regular up20 dates shall be published in the Federal Reg21 ister. 

22 (B) REMOVAL FROM LIST.—The Assistant 

23 Director may remove a producer from the list 

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1 tor determines that changed circumstances war2 rant such a removal. 

3 (3) REPORT.—The report required by para4 graph (1)(C)(vi) is a report submitted 180 days 

5 after the date of the enactment of this Act, and an6 nually thereafter, that contains the following: 

7 (A) The volume and value of goods made 

8 with child labor, convict labor, forced labor, in9 dentured labor under penal sanctions, or any 

10 other coercion (as such terms are defined in 

11 section 307 of the Tariff Act of 1930) that are 

12 seized upon arrival in the United States. 

13 (B) A description of the goods described in 

14 subparagraph (A). 

15 (C) An assessment of the extent to which 

16 child labor, convict labor, forced labor, inden17 tured labor under penal sanctions, or any other 

18 coercion are used in producing goods destined 

19 for the United States. 

20 (D) The progress being made in identi21 fying and interdicting goods that are destined 

22 for the United States that are made with child 

23 labor, convict labor, forced labor, indentured 

24 labor under penal sanctions, or any other coer25 cion. 


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1 (E) The most recent list of producers com2 piled pursuant to subsection (b)(2). 

3 (4) OTHER DUTIES.—The Office shall also be 

4 responsible for investigations relating to fraud, gross 

5 negligence, and negligence under section 592 of the 

6 Tariff Act of 1930 (19 U.S.C. 1592) with respect to 

7 violations of section 307 of such Act. 

8 (c) CONFORMING AMENDMENT.—Section 501 of the 

9 U.S.-China Relations Act of 2000 (22 U.S.C. 6961) is re10 pealed. 

11 SEC. 309. HONEY TRANSSHIPMENT. 

12 (a) IN GENERAL.—The Commissioner of U.S. Cus13 toms and Border Protection shall direct appropriate per14 sonnel and resources of the U.S. Customs and Border Pro15 tection Agency to address concerns that honey is being 

16 imported into the United States in violation of the customs 

17 and trade laws of the United States. 

18 (b) COUNTRY OF ORIGIN.— 

19 (1) IN GENERAL.—The Commissioner of U.S. 

20 Customs and Border Protection shall compile a 

21 database of the individual characteristics of honey 

22 produced in foreign countries to facilitate the 

23 verification of country of origin markings of im24 ported honey. 


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1 (2) ENGAGEMENT WITH FOREIGN GOVERN2 MENTS.—The Commissioner shall seek to engage the 

3 customs agencies of foreign governments for assist4 ance in compiling the database described in para5 graph (1). 

6 (c) SENSE OF CONGRESS.—It is the sense of Con7 gress that the Commissioner of the Food and Drug Ad8 ministration should promptly establish a national standard 

9 of identity for honey for the Commissioner of U.S. Cus10 toms and Border Protection to use to ensure that imports 

11 of honey are— 

12 (1) classified accurately for purposes of assess13 ing duties; and 

14 (2) denied entry into the United States if such 

15 imports pose a threat to the health or safety of con16 sumers in the United States. 

17 SEC. 310. CONTRABAND ARCHAEOLOGICAL OR ETHNO18 LOGICAL MATERIALS. 

19 (a) IN GENERAL.—The Commissioner of U.S. Cus20 toms and Border Protection shall ensure that appropriate 

21 personnel of the U.S. Customs and Border Protection 

22 Agency are trained in the detection, identification, and de23 tention of archaeological or ethnological materials the im24 portation of which violates the customs and trade laws of 

25 the United States. 


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1 (b) TRAINING.—The Commissioner of U.S. Customs 

2 and Border Protection is authorized to accept training and 

3 other support services from experts outside of the Federal 

4 Government in the detection, identification, and detention 

5 of archaeological or ethnological materials described in 

6 subsection (a). 

7 SEC. 311. DE MINIMIS AND INFORMAL ENTRIES. 

8 (a) DE MINIMIS VALUE.—Section 321(a)(2)(C) of 

9 the Tariff Act of 1930 (19 U.S.C. 1321(a)(2)(C)) is 

10 amended by striking ‘‘$200’’ and inserting ‘‘$500’’. 

11 (b) ENTRY UNDER REGULATIONS.—Section 498 of 

12 the Tariff Act of 1930 (19 U.S.C. 1498) is amended— 

13 (1) in subsection (a), by striking paragraph (1) 

14 and inserting the following: 

15 ‘‘(1) Merchandise, when different commercial 

16 facilitation and risk considerations that may vary for 

17 different classes or kinds of merchandise or different 

18 classes of transactions may dictate;’’; 

19 (2) by redesignating subsection (b) as sub20 section (c); and 

21 (3) by inserting after subsection (a) the fol22 lowing: 

23 ‘‘(b) ENTRY OF MERCHANDISE VALUED AT $2,500 

24 OR LESS.— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), the Secretary of the Treasury shall pre3 scribe rules and regulations for the declaration and 

4 entry of merchandise if the aggregate value of the 

5 shipment of merchandise does not exceed $2,500. 

6 ‘‘(2) EXCEPTION.—The rules and regulations 

7 prescribed under paragraph (1) shall not apply to 

8 articles that— 

9 ‘‘(A) have a value in excess of $250; and 

10 ‘‘(B) are classified under section VII, VIII, 

11 XI, or XII, chapter 94, or subchapter III or IV 

12 of chapter 99 of the Harmonized Tariff Sched13 ule of the United States.’’. 

Æ 


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