I 

114TH CONGRESS 

1ST SESSION H. R. 1916 

To reauthorize trade enforcement and trade facilitation functions and 

activities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 21, 2015 

Mr. LEVIN introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committee on Homeland Security, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL 

To reauthorize trade enforcement and trade facilitation 

functions and activities, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Trade Enforcement and Trade Facilitation Act of 2015’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—TRADE FACILITATION AND TRADE ENFORCEMENT 


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Sec. 101. Improving partnership programs. 

Sec. 102. Report on effectiveness of trade enforcement activities. 

Sec. 103. Priorities and performance standards for customs modernization, 

trade facilitation, and trade enforcement functions and programs. 

Sec. 104. Educational seminars to improve efforts to classify and appraise imported articles, to improve trade enforcement efforts, and to 

otherwise facilitate legitimate international trade. 

Sec. 105. Joint strategic plan. 

Sec. 106. Automated Commercial Environment. 

Sec. 107. International Trade Data System. 

Sec. 108. Consultations with respect to mutual recognition arrangements. 

Sec. 109. Commercial Customs Operations Advisory Committee. 

Sec. 110. Centers of Excellence and Expertise. 

Sec. 111. Commercial Targeting Division and National Targeting and Analysis 

Groups. 

Sec. 112. Report on oversight of revenue protection and enforcement measures. 

Sec. 113. Report on security and revenue measures with respect to merchandise 

transported in bond. 

Sec. 114. Importer of record program. 

Sec. 115. Customs broker identification of importers. 

Sec. 116. Establishment of new importer program. 

Sec. 117. Requirements applicable to non-resident importers. 

Sec. 118. Single entry bond for suspected evasion. 

TITLE II—IMPORT HEALTH AND SAFETY 

Sec. 201. Interagency import safety working group. 

Sec. 202. Joint import safety rapid response plan. 

Sec. 203. Training. 

TITLE III—IMPORT-RELATED PROTECTION OF INTELLECTUAL 

PROPERTY RIGHTS 

Sec. 301. Definition of intellectual property rights. 

Sec. 302. Exchange of information related to trade enforcement. 

Sec. 303. Seizure of circumvention devices. 

Sec. 304. Enforcement by U.S. Customs and Border Protection of works for 

which copyright registration is pending. 

Sec. 305. National Intellectual Property Rights Coordination Center. 

Sec. 306. Joint strategic plan for the enforcement of intellectual property 

rights. 

Sec. 307. Personnel dedicated to the enforcement of intellectual property rights. 

Sec. 308. Training with respect to the enforcement of intellectual property 

rights. 

Sec. 309. International cooperation and information sharing. 

Sec. 310. Report on intellectual property rights enforcement. 

Sec. 311. Information for travelers regarding violations of intellectual property 

rights. 

TITLE IV—MISCELLANEOUS PROVISIONS 

Sec. 401. De minimis value. 

Sec. 402. Consultation on trade and customs revenue functions. 

Sec. 403. Penalties for customs brokers. 


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

United States. 

Sec. 405. Exemption from duty of residue of bulk cargo contained in instruments of international traffic previously exported from the 

United States. 

Sec. 406. Drawback and refunds. 

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

TITLE V—PREVENTION OF EVASION OF ANTIDUMPING AND 

COUNTERVAILING DUTY ORDERS 

Subtitle A—Actions Relating to Enforcement of Trade Remedy Laws 

Sec. 501. Prevention and investigation of evasion. 

Sec. 502. Application to Canada and Mexico. 

Subtitle B—Other Matters 

Sec. 511. Definitions. 

Sec. 512. Allocation and training of personnel. 

Sec. 513. Regulations. 

Sec. 514. Annual report on prevention of evasion of antidumping and countervailing duty orders. 

Sec. 515. Government Accountability Office report on reliquidation authority. 

Sec. 516. Addressing circumvention by new shippers. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) AUTOMATED COMMERCIAL ENVIRON4 MENT.—The term ‘‘Automated Commercial Environ5 ment’’ means the Automated Commercial Environ6 ment computer system authorized under section 

7 13031(f)(4) of the Consolidated Omnibus Budget 

8 Reconciliation Act of 1985 (19 U.S.C. 58c(f)(4)). 

9 (2) COMMISSIONER.—The term ‘‘Commis10 sioner’’ means the Commissioner responsible for 

11 U.S. Customs and Border Protection. 


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1 (3) CUSTOMS AND TRADE LAWS OF THE

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

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

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

5 1202 et seq.). 

6 (B) Section 249 of the Revised Statutes 

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

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

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

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

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

12 (E) Section 13031 of the Consolidated 

13 Omnibus Budget Reconciliation Act of 1985 

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

15 (F) Section 251 of the Revised Statutes 

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

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

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

19 (H) The Foreign Trade Zones Act (19 

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

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

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

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

24 2102 et seq.). 


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1 (K) The Trade Agreements Act of 1979 

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

3 (L) The North American Free Trade 

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

5 3301 et seq.). 

6 (M) The Uruguay Round Agreements Act 

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

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

10 (O) The Andean Trade Preference Act (19 

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

12 (P) The African Growth and Opportunity 

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

14 (Q) The Customs Enforcement Act of 

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

16 (R) The Customs and Trade Act of 1990 

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

18 (S) The Customs Procedural Reform and 

19 Simplification Act of 1978 (Public Law 95– 

20 410; 92 Stat. 888). 

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

22 107–210; 116 Stat. 933). 

23 (U) The Convention on Cultural Property 

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


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

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

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

4 1263, chapter 566). 

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

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

9 Treasury. 

10 (Z) Any other provision of law relating to 

11 trade facilitation or trade enforcement that is 

12 administered by U.S. Customs and Border Pro13 tection on behalf of any Federal agency that is 

14 required to participate in the International 

15 Trade Data System. 

16 (AA) Any other provision of customs or 

17 trade law administered by U.S. Customs and 

18 Border Protection or U.S. Immigration and 

19 Customs Enforcement. 

20 (4) PRIVATE SECTOR ENTITY.—The term ‘‘pri21 vate sector entity’’ means— 

22 (A) an importer; 

23 (B) an exporter; 

24 (C) a forwarder; 

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


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1 (E) a contract logistics provider; 

2 (F) a customs broker; or 

3 (G) any other person (other than an em4 ployee of a government) affected by the imple5 mentation of the customs and trade laws of the 

6 United States, including a domestic producer. 

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

8 enforcement’’ means the enforcement of the customs 

9 and trade laws of the United States. 

10 (6) TRADE FACILITATION.—The term ‘‘trade 

11 facilitation’’ refers to policies and activities of U.S. 

12 Customs and Border Protection with respect to fa13 cilitating the movement of merchandise into and out 

14 of the United States in a manner that complies with 

15 the customs and trade laws of the United States. 

16 TITLE I—TRADE FACILITATION 

17 AND TRADE ENFORCEMENT 

18 SEC. 101. IMPROVING PARTNERSHIP PROGRAMS. 

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

20 trade enforcement, and trade facilitation missions of U.S. 

21 Customs and Border Protection, the Commissioner shall 

22 ensure that partnership programs of U.S. Customs and 

23 Border Protection established before the date of the enact24 ment of this Act, such as the Customs–Trade Partnership 

25 Against Terrorism established under subtitle B of title II 


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1 of the Security and Accountability for Every Port Act of 

2 2006 (6 U.S.C. 961 et seq.), and partnership programs 

3 of U.S. Customs and Border Protection established after 

4 such date of enactment, provide trade benefits to private 

5 sector entities that meet the requirements for participation 

6 in those programs established by the Commissioner under 

7 this section. 

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

10 shall— 

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

13 ensure that participants in those programs receive 

14 commercially significant and measurable trade bene15 fits, including providing pre-clearance of merchan16 dise for qualified persons that demonstrate the high17 est levels of compliance with the customs and trade 

18 laws of the United States, regulations of U.S. Cus19 toms and Border Protection, and other requirements 

20 the Commissioner determines to be necessary; 

21 (2) ensure an integrated and transparent sys22 tem of trade benefits and compliance requirements 

23 for all partnership programs of U.S. Customs and 

24 Border Protection; 


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1 (3) consider consolidating partnership programs 

2 in situations in which doing so would support the 

3 objectives of such programs, increase participation in 

4 such programs, enhance the trade benefits provided 

5 to participants in such programs, and enhance the 

6 allocation of the resources of U.S. Customs and Bor7 der Protection; 

8 (4) coordinate with the Director of U.S. Immi9 gration and Customs Enforcement, and other Fed10 eral agencies with authority to detain and release 

11 merchandise entering the United States— 

12 (A) to ensure coordination in the release of 

13 such merchandise through the Automated Com14 mercial Environment, or its predecessor, and 

15 the International Trade Data System; 

16 (B) to ensure that the partnership pro17 grams of those agencies are compatible with the 

18 partnership programs of U.S. Customs and 

19 Border Protection; 

20 (C) to develop criteria for authorizing the 

21 release, on an expedited basis, of merchandise 

22 for which documentation is required from one 

23 or more of those agencies to clear or license the 

24 merchandise for entry into the United States; 

25 and 


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1 (D) to create pathways, within and among 

2 the appropriate Federal agencies, for qualified 

3 persons that demonstrate the highest levels of 

4 compliance to receive immediate clearance ab5 sent information that a transaction may pose a 

6 national security or compliance threat; and 

7 (5) ensure that trade benefits are provided to 

8 participants in partnership programs. 

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

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

11 Act, and December 31 of each year thereafter, the Com12 missioner shall submit to the Committee on Finance of 

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

14 House of Representatives a report that— 

15 (1) identifies each partnership program referred 

16 to in subsection (a); 

17 (2) for each such program, identifies— 

18 (A) the requirements for participants in 

19 the program; 

20 (B) the commercially significant and meas21 urable trade benefits provided to participants in 

22 the program; 

23 (C) the number of participants in the pro24 gram; and 


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

2 for participation at multiple tiers, the number 

3 of participants at each such tier; 

4 (3) identifies the number of participants en5 rolled in more than one such partnership program; 

6 (4) assesses the effectiveness of each such part7 nership program in advancing the security, trade en8 forcement, and trade facilitation missions of U.S. 

9 Customs and Border Protection, based on historical 

10 developments, the level of participation in the pro11 gram, and the evolution of benefits provided to par12 ticipants in the program; 

13 (5) summarizes the efforts of U.S. Customs and 

14 Border Protection to work with other Federal agen15 cies with authority to detain and release merchan16 dise entering the United States to ensure that part17 nership programs of those agencies are compatible 

18 with partnership programs of U.S. Customs and 

19 Border Protection; 

20 (6) summarizes criteria developed with those 

21 agencies for authorizing the release, on an expedited 

22 basis, of merchandise for which documentation is re23 quired from one or more of those agencies to clear 

24 or license the merchandise for entry into the United 

25 States; 


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1 (7) summarizes the efforts of U.S. Customs and 

2 Border Protection to work with private sector enti3 ties and the public to develop and improve partner4 ship programs referred to in subsection (a); 

5 (8) describes measures taken by U.S. Customs 

6 and Border Protection to make private sector enti7 ties aware of the trade benefits available to partici8 pants in such programs; and 

9 (9) summarizes the plans, targets, and goals of 

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

11 such programs for the 2 years following the submis12 sion of the report. 

13 SEC. 102. REPORT ON EFFECTIVENESS OF TRADE EN14 FORCEMENT ACTIVITIES. 

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

16 date of the enactment of this Act, the Comptroller General 

17 of the United States shall submit to the Committee on 

18 Finance of the Senate and the Committee on Ways and 

19 Means of the House of Representatives a report on the 

20 effectiveness of trade enforcement activities of U.S. Cus21 toms and Border Protection. 

22 (b) CONTENTS.—The report required by subsection 

23 (a) shall include— 

24 (1) a description of the use of resources, results 

25 of audits and verifications, targeting, organization, 


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1 and training of personnel of U.S. Customs and Bor2 der Protection; and 

3 (2) a description of trade enforcement activities 

4 to address undervaluation, transshipment, legitimacy 

5 of entities making entry, protection of revenues, 

6 fraud prevention and detection, and penalties, in7 cluding intentional misclassification, inadequate 

8 bonding, and other misrepresentations. 

9 SEC. 103. PRIORITIES AND PERFORMANCE STANDARDS 

10 FOR CUSTOMS MODERNIZATION, TRADE FA11 CILITATION, AND TRADE ENFORCEMENT 

12 FUNCTIONS AND PROGRAMS. 

13 (a) PRIORITIES AND PERFORMANCE STANDARDS.— 

14 (1) IN GENERAL.—The Commissioner, in con15 sultation with the Committee on Finance of the Sen16 ate and the Committee on Ways and Means of the 

17 House of Representatives, shall establish priorities 

18 and performance standards to measure the develop19 ment and levels of achievement of the customs mod20 ernization, trade facilitation, and trade enforcement 

21 functions and programs described in subsection (b). 

22 (2) MINIMUM PRIORITIES AND STANDARDS.— 

23 Such priorities and performance standards shall, at 

24 a minimum, include priorities and standards relating 


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1 to efficiency, outcome, output, and other types of ap2 plicable measures. 

3 (b) FUNCTIONS AND PROGRAMS DESCRIBED.—The 

4 functions and programs referred to in subsection (a) are 

5 the following: 

6 (1) The Automated Commercial Environment. 

7 (2) Each of the priority trade issues described 

8 in paragraph (3)(B)(ii) of section 2(d) of the Act of 

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

10 U.S.C. 2072(d)), as added by section 111(a) of this 

11 Act. 

12 (3) The Centers of Excellence and Expertise de13 scribed in section 110 of this Act. 

14 (4) Drawback for exported merchandise under 

15 section 313 of the Tariff Act of 1930 (19 U.S.C. 

16 1313), as amended by section 406 of this Act. 

17 (5) Transactions relating to imported merchan18 dise in bond. 

19 (6) Collection of countervailing duties assessed 

20 under subtitle A of title VII of the Tariff Act of 

21 1930 (19 U.S.C. 1671 et seq.) and antidumping du22 ties assessed under subtitle B of title VII of the Tar23 iff Act of 1930 (19 U.S.C. 1673 et seq.). 

24 (7) The expedited clearance of cargo. 

25 (8) The issuance of regulations and rulings. 


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1 (9) The issuance of Regulatory Audit Reports. 

2 (c) CONSULTATIONS AND NOTIFICATION.— 

3 (1) CONSULTATIONS.—The consultations re4 quired by subsection (a)(1) shall occur, at a min5 imum, on an annual basis. 

6 (2) NOTIFICATION.—The Commissioner shall 

7 notify the Committee on Finance of the Senate and 

8 the Committee on Ways and Means of the House of 

9 Representatives of any changes to the priorities re10 ferred to in subsection (a) not later than 30 days be11 fore such changes are to take effect. 

12 SEC. 104. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS 

13 TO CLASSIFY AND APPRAISE IMPORTED AR14 TICLES, TO IMPROVE TRADE ENFORCEMENT 

15 EFFORTS, AND TO OTHERWISE FACILITATE 

16 LEGITIMATE INTERNATIONAL TRADE. 

17 (a) IN GENERAL.— 

18 (1) ESTABLISHMENT.—The Commissioner and 

19 the Director shall establish and carry out on a fiscal 

20 year basis educational seminars to— 

21 (A) improve the ability of U.S. Customs 

22 and Border Protection personnel to classify and 

23 appraise articles imported into the United 

24 States in accordance with the customs and 

25 trade laws of the United States; 


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1 (B) improve the trade enforcement efforts 

2 of U.S. Customs and Border Protection per3 sonnel and U.S. Immigration and Customs En4 forcement personnel; and 

5 (C) otherwise improve the ability and effec6 tiveness of U.S. Customs and Border Protection 

7 personnel and U.S. Immigration and Customs 

8 Enforcement personnel to facilitate legitimate 

9 international trade. 

10 (b) CONTENT.— 

11 (1) CLASSIFYING AND APPRAISING IMPORTED

12 ARTICLES.—In carrying out subsection (a)(1)(A), 

13 the Commissioner, the Director, and interested par14 ties in the private sector selected under subsection 

15 (c) shall provide instruction and related instructional 

16 materials at each educational seminar under this 

17 section to U.S. Customs and Border Protection per18 sonnel and, as appropriate, to U.S. Immigration and 

19 Customs Enforcement personnel on the following: 

20 (A) Conducting a physical inspection of an 

21 article imported into the United States, includ22 ing testing of samples of the article, to deter23 mine if the article is mislabeled in the manifest 

24 or other accompanying documentation. 


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1 (B) Reviewing the manifest and other ac2 companying documentation of an article im3 ported into the United States to determine if 

4 the country of origin of the article listed in the 

5 manifest or other accompanying documentation 

6 is accurate. 

7 (C) Customs valuation. 

8 (D) Industry supply chains and other re9 lated matters as determined to be appropriate 

10 by the Commissioner. 

11 (2) TRADE ENFORCEMENT EFFORTS.—In car12 rying out subsection (a)(1)(B), the Commissioner, 

13 the Director, and interested parties in the private 

14 sector selected under subsection (c) shall provide in15 struction and related instructional materials at each 

16 educational seminar under this section to U.S. Cus17 toms and Border Protection personnel and, as ap18 propriate, to U.S. Immigration and Customs En19 forcement personnel to identify opportunities to en20 hance enforcement of the following: 

21 (A) Collection of countervailing duties as22 sessed under subtitle A of title VII of the Tariff 

23 Act of 1930 (19 U.S.C. 1671 et seq.) and anti24 dumping duties assessed under subtitle B of 


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1 title VII of the Tariff Act of 1930 (19 U.S.C. 

2 1673 et seq.). 

3 (B) Addressing evasion of duties on im4 ports of textiles. 

5 (C) Protection of intellectual property 

6 rights. 

7 (D) Enforcement of child labor laws. 

8 (3) APPROVAL OF COMMISSIONER AND DIREC9 TOR.—The instruction and related instructional ma10 terials at each educational seminar under this sec11 tion shall be subject to the approval of the Commis12 sioner and the Director. 

13 (c) SELECTION PROCESS.— 

14 (1) IN GENERAL.—The Commissioner shall es15 tablish a process to solicit, evaluate, and select inter16 ested parties in the private sector for purposes of as17 sisting in providing instruction and related instruc18 tional materials described in subsection (b) at each 

19 educational seminar under this section. 

20 (2) CRITERIA.—The Commissioner shall evalu21 ate and select interested parties in the private sector 

22 under the process established under paragraph (1) 

23 based on— 

24 (A) availability and usefulness; 


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1 (B) the volume, value, and incidence of 

2 mislabeling or misidentification of origin of im3 ported articles; and 

4 (C) other appropriate criteria established 

5 by the Commissioner. 

6 (3) PUBLIC AVAILABILITY.—The Commissioner 

7 and the Director shall publish in the Federal Reg8 ister a detailed description of the process established 

9 under paragraph (1) and the criteria established 

10 under paragraph (2). 

11 (d) SPECIAL RULE FOR ANTIDUMPING AND COUN12 TERVAILING DUTY ORDERS.— 

13 (1) IN GENERAL.—The Commissioner shall give 

14 due consideration to carrying out an educational 

15 seminar under this section in whole or in part to im16 prove the ability of U.S. Customs and Border Pro17 tection personnel to enforce a countervailing or anti18 dumping duty order issued under section 706 or 736 

19 of the Tariff Act of 1930 (19 U.S.C. 1671e or 

20 1673e) upon the request of a petitioner in an action 

21 underlying such countervailing or antidumping duty 

22 order. 

23 (2) INTERESTED PARTY.—A petitioner de24 scribed in paragraph (1) shall be treated as an interVerDate Sep 11 2014 04:43 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H1916.IH H1916

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1 ested party in the private sector for purposes of the 

2 requirements of this section. 

3 (e) PERFORMANCE STANDARDS.—The Commissioner 

4 and the Director shall establish performance standards to 

5 measure the development and level of achievement of edu6 cational seminars under this section. 

7 (f) REPORTING.—Beginning September 30, 2016, the 

8 Commissioner and the Director shall submit to the Com9 mittee of Finance of the Senate and the Committee of 

10 Ways and Means of the House of Representatives an an11 nual report on the effectiveness of educational seminars 

12 under this section. 

13 (g) DEFINITIONS.—In this section: 

14 (1) DIRECTOR.—The term ‘‘Director’’ means 

15 the Director of U.S. Immigration and Customs En16 forcement. 

17 (2) UNITED STATES.—The term ‘‘United 

18 States’’ means the customs territory of the United 

19 States, as defined in General Note 2 to the Har20 monized Tariff Schedule of the United States. 

21 (3) U.S. CUSTOMS AND BORDER PROTECTION

22 PERSONNEL.—The term ‘‘U.S. Customs and Border 

23 Protection personnel’’ means import specialists, 

24 auditors, and other appropriate employees of the 

25 U.S. Customs and Border Protection. 


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1 (4) U.S. IMMIGRATION AND CUSTOMS ENFORCE2 MENT PERSONNEL.—The term ‘‘U.S. Immigrations 

3 and Customs Enforcement personnel’’ means Home4 land Security Investigations Directorate personnel 

5 and other appropriate employees of U.S. Immigra6 tions and Customs Enforcement. 

7 SEC. 105. JOINT STRATEGIC PLAN. 

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

9 date of the enactment of this Act, and every 2 years there10 after, the Commissioner and the Director of U.S. Immi11 gration and Customs Enforcement shall jointly develop 

12 and submit to the Committee on Finance of the Senate 

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

14 Representatives, a joint strategic plan. 

15 (b) CONTENTS.—The joint strategic plan required 

16 under this section shall be comprised of a comprehensive 

17 multi-year plan for trade enforcement and trade facilita18 tion, and shall include— 

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

20 year period preceding the submission of the plan to 

21 improve trade enforcement and trade facilitation, in22 cluding a description and analysis of specific per23 formance measures to evaluate the progress of U.S. 

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1 tion and Customs Enforcement in meeting each such 

2 responsibility; 

3 (2) a statement of objectives and plans for fur4 ther improving trade enforcement and trade facilita5 tion; 

6 (3) a specific identification of the priority trade 

7 issues described in paragraph (3)(B)(ii) of section 

8 2(d) of the Act of March 3, 1927 (44 Stat. 1381, 

9 chapter 348; 19 U.S.C. 2072(d)), as added by sec10 tion 111(a) of this Act, that can be addressed in 

11 order to enhance trade enforcement and trade facili12 tation, and a description of strategies and plans for 

13 addressing each such issue; 

14 (4) a description of efforts made to improve 

15 consultation and coordination among and within 

16 Federal agencies, and in particular between U.S. 

17 Customs and Border Protection and U.S. Immigra18 tion and Customs Enforcement, regarding trade en19 forcement and trade facilitation; 

20 (5) a description of the training that has oc21 curred to date within U.S. Customs and Border Pro22 tection and U.S. Immigration and Customs Enforce23 ment to improve trade enforcement and trade facili24 tation, including training under section 104 of this 

25 Act; 


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1 (6) a description of efforts to work with the 

2 World Customs Organization and other international 

3 organizations, in consultation with other Federal 

4 agencies as appropriate, with respect to enhancing 

5 trade enforcement and trade facilitation; 

6 (7) a description of U.S. Custom and Border 

7 Protection organizational benchmarks for optimizing 

8 staffing and wait times at ports of entry; 

9 (8) a specific identification of any domestic or 

10 international best practices that may further im11 prove trade enforcement and trade facilitation; 

12 (9) any legislative recommendations to further 

13 improve trade enforcement and trade facilitation; 

14 and 

15 (10) a description of efforts made to improve 

16 consultation and coordination with the private sector 

17 to enhance trade enforcement and trade facilitation. 

18 (c) CONSULTATIONS.— 

19 (1) IN GENERAL.—In developing the joint stra20 tegic plan required under this section, the Commis21 sioner and the Director shall consult with— 

22 (A) appropriate officials from the relevant 

23 Federal agencies, including— 

24 (i) the Department of the Treasury; 

25 (ii) the Department of Agriculture; 


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1 (iii) the Department of Commerce; 

2 (iv) the Department of Justice; 

3 (v) the Department of the Interior; 

4 (vi) the Department of Health and 

5 Human Services; 

6 (vii) the Food and Drug Administra7 tion; 

8 (viii) the Consumer Product Safety 

9 Commission; and 

10 (ix) the Office of the United States 

11 Trade Representative; and 

12 (B) the Commercial Customs Operations 

13 Advisory Committee established by section 109 

14 of this Act. 

15 (2) OTHER CONSULTATIONS.—In developing 

16 the joint strategic plan required under this section, 

17 the Commissioner and the Director shall seek to 

18 consult with— 

19 (A) appropriate officials from relevant for20 eign law enforcement agencies and international 

21 organizations, including the World Customs Or22 ganization; and 

23 (B) interested parties in the private sector. 


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1 SEC. 106. AUTOMATED COMMERCIAL ENVIRONMENT. 

2 (a) FUNDING.—Section 13031(f)(4)(B) of the Con3 solidated Omnibus Budget Reconciliation Act of 1985 (19 

4 U.S.C. 58c(f)(4)(B)) is amended— 

5 (1) by striking ‘‘2003 through 2005’’ and in6 serting ‘‘2016 through 2018’’; 

7 (2) by striking ‘‘such amounts as are available 

8 in that Account’’ and inserting ‘‘not less than 

9 $153,736,000’’; and 

10 (3) by striking ‘‘for the development’’ and in11 serting ‘‘to complete the development and implemen12 tation’’. 

13 (b) REPORT.—Section 311(b)(3) of the Customs Bor14 der Security Act of 2002 (19 U.S.C. 2075 note) is amend15 ed to read as follows: 

16 ‘‘(3) REPORT.— 

17 ‘‘(A) IN GENERAL.—Not later than De18 cember 31, 2016, the Commissioner responsible 

19 for U.S. Customs and Border Protection shall 

20 submit to the Committee on Appropriations and 

21 the Committee on Finance of the Senate and 

22 the Committee on Appropriations and the Com23 mittee on Ways and Means of the House of 

24 Representatives a report detailing— 

25 ‘‘(i) U.S. Customs and Border Protec26 tion’s incorporation of all core trade procVerDate Sep 11 2014 04:43 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H1916.IH H1916

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1 essing capabilities, including cargo release, 

2 entry summary, cargo manifest, cargo fi3 nancial data, and export data elements 

4 into the Automated Commercial Environ5 ment computer system authorized under 

6 section 13031(f)(4) of the Consolidated 

7 Omnibus Budget and Reconciliation Act of 

8 1985 (19 U.S.C. 58c(f)(4)) not later than 

9 September 30, 2016, to conform with the 

10 admissibility criteria of agencies partici11 pating in the International Trade Data 

12 System identified pursuant to section 

13 411(d)(4)(A)(iii) of the Tariff Act of 1930; 

14 ‘‘(ii) U.S. Customs and Border Pro15 tection’s remaining priorities for processing 

16 entry summary data elements, cargo mani17 fest data elements, cargo financial data 

18 elements, and export elements in the Auto19 mated Commercial Environment computer 

20 system, and the objectives and plans for 

21 implementing these remaining priorities; 

22 ‘‘(iii) the components of the National 

23 Customs Automation Program specified in 

24 subsection (a)(2) of section 411 of the 


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1 Tariff Act of 1930 that have not been im2 plemented; and 

3 ‘‘(iv) any additional components of the 

4 National Customs Automation Program 

5 initiated by the Commissioner to complete 

6 the development, establishment, and imple7 mentation of the Automated Commercial 

8 Environment computer system. 

9 ‘‘(B) UPDATE OF REPORTS.—Not later 

10 than September 30, 2017, the Commissioner 

11 shall submit to the Committee on Appropria12 tions and the Committee on Finance of the 

13 Senate and the Committee on Appropriations 

14 and the Committee on Ways and Means of the 

15 House of Representatives an updated report ad16 dressing each of the matters referred to in sub17 paragraph (A), and— 

18 ‘‘(i) evaluating the effectiveness of the 

19 implementation of the Automated Commer20 cial Environment computer system; and 

21 ‘‘(ii) detailing the percentage of trade 

22 processed in the Automated Commercial 

23 Environment every month since September 

24 30, 2016.’’. 


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1 (c) GOVERNMENT ACCOUNTABILITY OFFICE RE2 PORT.—Not later than December 31, 2017, 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) assessing the progress of other Federal 

9 agencies in accessing and utilizing the Automated 

10 Commercial Environment; and 

11 (2) assessing the potential cost savings to the 

12 United States Government and importers and ex13 porters and the potential benefits to enforcement of 

14 the customs and trade laws of the United States if 

15 the elements identified in clauses (i) through (iv) of 

16 section 311(b)(3)(A) of the Customs Border Secu17 rity Act of 2002, as amended by subsection (b) of 

18 this section, are implemented. 

19 SEC. 107. INTERNATIONAL TRADE DATA SYSTEM. 

20 (a) INFORMATION TECHNOLOGY INFRASTRUC21 TURE.—Section 411(d) of the Tariff Act of 1930 (19 

22 U.S.C. 1411(d)) is amended— 

23 (1) by redesignating paragraphs (4) through 

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


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1 (2) by inserting after paragraph (3) the fol2 lowing: 

3 ‘‘(4) INFORMATION TECHNOLOGY INFRASTRUC4 TURE.— 

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

6 work with the head of each agency participating 

7 in the ITDS and the Interagency Steering 

8 Committee to ensure that each agency— 

9 ‘‘(i) develops and maintains the nec10 essary information technology infrastruc11 ture to support the operation of the ITDS 

12 and to submit all data to the ITDS elec13 tronically; 

14 ‘‘(ii) enters into a memorandum of 

15 understanding, or takes such other action 

16 as is necessary, to provide for the informa17 tion sharing between the agency and U.S. 

18 Customs and Border Protection necessary 

19 for the operation and maintenance of the 

20 ITDS; 

21 ‘‘(iii) not later than June 30, 2016, 

22 identifies and transmits to the Commis23 sioner responsible for U.S. Customs and 

24 Border Protection the admissibility criteria 

25 and data elements required by the agency 


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1 to authorize the release of cargo by U.S. 

2 Customs and Border Protection for incor3 poration into the operational functionality 

4 of the Automated Commercial Environ5 ment computer system authorized under 

6 section 13031(f)(4) of the Consolidated 

7 Omnibus Budget and Reconciliation Act of 

8 1985 (19 U.S.C. 58c(f)(4)); and 

9 ‘‘(iv) not later than December 31, 

10 2016, utilizes the ITDS as the primary 

11 means of receiving from users the standard 

12 set of data and other relevant documenta13 tion, exclusive of applications for permits, 

14 licenses, or certifications required for the 

15 release of imported cargo and clearance of 

16 cargo for export. 

17 ‘‘(B) RULE OF CONSTRUCTION.—Nothing 

18 in this paragraph shall be construed to require 

19 any action to be taken that would compromise 

20 an ongoing law enforcement investigation or na21 tional security.’’; and 

22 (3) in paragraph (8), as redesignated, by strik23 ing ‘‘section 9503(c) of the Omnibus Budget Rec24 onciliation Act of 1987 (19 U.S.C. 2071 note)’’ and 


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1 inserting ‘‘section 109 of the Trade Facilitation and 

2 Trade Enforcement Act of 2015’’. 

3 SEC. 108. CONSULTATIONS WITH RESPECT TO MUTUAL 

4 RECOGNITION ARRANGEMENTS. 

5 (a) CONSULTATIONS.—The Secretary of Homeland 

6 Security, with respect to any proposed mutual recognition 

7 arrangement or similar agreement between the United 

8 States and a foreign government providing for mutual rec9 ognition of supply chain security programs and customs 

10 revenue functions, shall consult— 

11 (1) not later than 30 days before initiating ne12 gotiations to enter into any such arrangement or 

13 similar agreement, with the Committee on Finance 

14 of the Senate and the Committee on Ways and 

15 Means of the House of Representatives; and 

16 (2) not later than 30 days before entering into 

17 any such arrangement or similar agreement, with 

18 the Committee on Finance of the Senate and the 

19 Committee on Ways and Means of the House of 

20 Representatives. 

21 (b) NEGOTIATING OBJECTIVE.—It shall be a negoti22 ating objective of the United States in any negotiation for 

23 a mutual recognition arrangement with a foreign country 

24 on partnership programs, such as the Customs–Trade 

25 Partnership Against Terrorism established under subtitle 


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1 B of title II of the Security and Accountability for Every 

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

3 the compatibility of the partnership programs of that 

4 country with the partnership programs of U.S. Customs 

5 and Border Protection to enhance trade facilitation and 

6 trade enforcement. 

7 SEC. 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY 

8 COMMITTEE. 

9 (a) ESTABLISHMENT.—Not later than the date that 

10 is 60 days after the date of the enactment of this Act, 

11 the Secretary of the Treasury and the Secretary of Home12 land Security shall jointly establish a Commercial Customs 

13 Operations Advisory Committee (in this section referred 

14 to as the ‘‘Advisory Committee’’). 

15 (b) MEMBERSHIP.— 

16 (1) IN GENERAL.—The Advisory Committee 

17 shall be comprised of— 

18 (A) 20 individuals appointed under para19 graph (2); 

20 (B) the Assistant Secretary for Tax Policy 

21 of the Department of the Treasury and the 

22 Commissioner, who shall jointly co-chair meet23 ings of the Advisory Committee; and 

24 (C) the Assistant Secretary for Policy and 

25 the Director of U.S. Immigration and Customs 


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1 Enforcement of the Department of Homeland 

2 Security, who shall serve as deputy co-chairs of 

3 meetings of the Advisory Committee. 

4 (2) APPOINTMENT.— 

5 (A) IN GENERAL.—The Secretary of the 

6 Treasury and the Secretary of Homeland Secu7 rity shall jointly appoint 20 individuals from 

8 the private sector to the Advisory Committee. 

9 (B) REQUIREMENTS.—In making appoint10 ments under subparagraph (A), the Secretary 

11 of the Treasury and the Secretary of Homeland 

12 Security shall appoint members— 

13 (i) to ensure that the membership of 

14 the Advisory Committee is representative 

15 of the individuals and firms affected by the 

16 commercial operations of U.S. Customs 

17 and Border Protection; and 

18 (ii) without regard to political affili19 ation. 

20 (C) TERMS.—Each individual appointed to 

21 the Advisory Committee under this paragraph 

22 shall be appointed for a term of not more than 

23 3 years, and may be reappointed to subsequent 

24 terms, but may not serve more than 2 terms se25 quentially. 


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1 (3) TRANSFER OF MEMBERSHIP.—The Sec2 retary of the Treasury and the Secretary of Home3 land Security may transfer members serving on the 

4 Advisory Committee on Commercial Operations of 

5 the United States Customs Service established under 

6 section 9503(c) of the Omnibus Budget Reconcili7 ation Act of 1987 (19 U.S.C. 2071 note) on the day 

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

9 Advisory Committee established under subsection 

10 (a). 

11 (c) DUTIES.—The Advisory Committee established 

12 under subsection (a) shall— 

13 (1) advise the Secretary of the Treasury and 

14 the Secretary of Homeland Security on all matters 

15 involving the commercial operations of U.S. Customs 

16 and Border Protection, including advising with re17 spect to significant changes that are proposed with 

18 respect to regulations, policies, or practices of U.S. 

19 Customs and Border Protection; 

20 (2) provide recommendations to the Secretary 

21 of the Treasury and the Secretary of Homeland Se22 curity on improvements to the commercial operations 

23 of U.S. Customs and Border Protection; 

24 (3) collaborate in developing the agenda for Ad25 visory Committee meetings; and 


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1 (4) perform such other functions relating to the 

2 commercial operations of U.S. Customs and Border 

3 Protection as prescribed by law or as the Secretary 

4 of the Treasury and the Secretary of Homeland Se5 curity jointly direct. 

6 (d) MEETINGS.— 

7 (1) IN GENERAL.—The Advisory Committee 

8 shall meet at the call of the Secretary of the Treas9 ury and the Secretary of Homeland Security, or at 

the call of not less than 2 10 ⁄3 of the membership of the 

11 Advisory Committee. The Advisory Committee shall 

12 meet at least 4 times each calendar year. 

13 (2) OPEN MEETINGS.—Notwithstanding section 

14 10(a) of the Federal Advisory Committee Act (5 

15 U.S.C. App.), the Advisory Committee meetings 

16 shall be open to the public unless the Secretary of 

17 the Treasury or the Secretary of Homeland Security 

18 determines that the meeting will include matters the 

19 disclosure of which would compromise investigations 

20 of U.S. Immigration and Customs Enforcement. 

21 (e) ANNUAL REPORT.—Not later than December 31, 

22 2016, and annually thereafter, the Advisory Committee 

23 shall submit to the Committee on Finance of the Senate 

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

25 Representatives a report that— 


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1 (1) describes the activities of the Advisory Com2 mittee during the preceding fiscal year; and 

3 (2) sets forth any recommendations of the Advi4 sory Committee regarding the commercial operations 

5 of U.S. Customs and Border Protection. 

6 (f) TERMINATION.—Section 14(a)(2) of the Federal 

7 Advisory Committee Act (5 U.S.C. App.; relating to the 

8 termination of advisory committees) shall not apply to the 

9 Advisory Committee. 

10 (g) CONFORMING AMENDMENT.— 

11 (1) IN GENERAL.—Effective on the date on 

12 which the Advisory Committee is established under 

13 subsection (a), section 9503(c) of the Omnibus 

14 Budget Reconciliation Act of 1987 (19 U.S.C. 2071 

15 note) is repealed. 

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

17 Advisory Committee on Commercial Operations of 

18 the United States Customs Service established under 

19 section 9503(c) of the Omnibus Budget Reconcili20 ation Act of 1987 (19 U.S.C. 2071 note) made on 

21 or after the date on which the Advisory Committee 

22 is established under subsection (a), shall be deemed 

23 a reference to the Commercial Customs Operations 

24 Advisory Committee established under subsection 

25 (a). 


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1 SEC. 110. CENTERS OF EXCELLENCE AND EXPERTISE. 

2 (a) IN GENERAL.—The Commissioner shall, in con3 sultation with the Committee on Finance of the Senate, 

4 the Committee on Ways and Means of the House of Rep5 resentatives, and the Commercial Customs Operations Ad6 visory Committee established by section 109 of this Act, 

7 develop and implement Centers of Excellence and Exper8 tise throughout U.S. Customs and Border Protection 

9 that— 

10 (1) enhance the economic competitiveness of the 

11 United States by consistently enforcing the laws and 

12 regulations of the United States at all ports of entry 

13 of the United States and by facilitating the flow of 

14 legitimate trade through increasing industry-based 

15 knowledge; 

16 (2) improve enforcement efforts, including en17 forcement of priority trade issues described in sub18 paragraph (B)(ii) of section 2(d)(3) of the Act of 

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

20 U.S.C. 2072(d)), as added by section 111(a) of this 

21 Act, in specific industry sectors through the applica22 tion of targeting information from the Commercial 

23 Targeting Division established under subparagraph 

24 (A) of such section 2(d)(3) and from other means of 

25 verification; 


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1 (3) build upon the expertise of U.S. Customs 

2 and Border Protection in particular industry oper3 ations, supply chains, and compliance requirements; 

4 (4) promote the uniform implementation at 

5 each port of entry of the United States of policies 

6 and regulations relating to imports; 

7 (5) centralize the trade enforcement and trade 

8 facilitation efforts of U.S. Customs and Border Pro9 tection; 

10 (6) formalize an account-based approach to 

11 apply, as the Commissioner determines appropriate, 

12 to the importation of merchandise into the United 

13 States; 

14 (7) foster partnerships though the expansion of 

15 trade programs and other trusted partner programs; 

16 (8) develop applicable performance measure17 ments to meet internal efficiency and effectiveness 

18 goals; and 

19 (9) whenever feasible, facilitate a more efficient 

20 flow of information between Federal agencies. 

21 (b) REPORT.—Not later than December 31, 2016, 

22 the Commissioner shall submit to the Committee on Fi23 nance of the Senate and the Committee on Ways and 

24 Means of the House of Representatives a report describ25 ing— 


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1 (1) the scope, functions, and structure of each 

2 Center of Excellence and Expertise developed and 

3 implemented under subsection (a); 

4 (2) the effectiveness of each such Center of Ex5 cellence and Expertise in improving enforcement ef6 forts, including enforcement of priority trade issues, 

7 and facilitating legitimate trade; 

8 (3) the quantitative and qualitative benefits of 

9 each such Center of Excellence and Expertise to the 

10 trade community, including through fostering part11 nerships through the expansion of trade programs 

12 such as the Importer Self Assessment program and 

13 other trusted partner programs; 

14 (4) all applicable performance measurements 

15 with respect to each such Center of Excellence and 

16 Expertise, including performance measures with re17 spect to meeting internal efficiency and effectiveness 

18 goals; 

19 (5) the performance of each such Center of Ex20 cellence and Expertise in increasing the accuracy 

21 and completeness of data with respect to inter22 national trade and facilitating a more efficient flow 

23 of information between Federal agencies; and 

24 (6) any planned changes in the number, scope, 

25 functions or any other aspect of the Centers of ExVerDate Sep 11 2014 04:43 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H1916.IH H1916

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1 cellence and Expertise developed and implemented 

2 under subsection (a). 

3 SEC. 111. COMMERCIAL TARGETING DIVISION AND NA4 TIONAL TARGETING AND ANALYSIS GROUPS. 

5 (a) IN GENERAL.—Section 2(d) of the Act of March 

6 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)) 

7 is amended by adding at the end the following: 

8 ‘‘(3) COMMERCIAL TARGETING DIVISION AND

9 NATIONAL TARGETING AND ANALYSIS GROUPS.— 

10 ‘‘(A) ESTABLISHMENT OF COMMERCIAL

11 TARGETING DIVISION.— 

12 ‘‘(i) IN GENERAL.—The Secretary of 

13 Homeland Security shall establish and 

14 maintain within the Office of International 

15 Trade a Commercial Targeting Division. 

16 ‘‘(ii) COMPOSITION.—The Commercial 

17 Targeting Division shall be composed of— 

18 ‘‘(I) headquarters personnel led 

19 by an Executive Director, who shall 

20 report to the Assistant Commissioner 

21 for Trade; and 

22 ‘‘(II) individual National Tar23 geting and Analysis Groups, each led 

24 by a Director who shall report to the 


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1 Executive Director of the Commercial 

2 Targeting Division. 

3 ‘‘(iii) DUTIES.—The Commercial Tar4 geting Division shall be dedicated— 

5 ‘‘(I) to the development and con6 duct of commercial risk assessment 

7 targeting with respect to cargo des8 tined for the United States in accord9 ance with subparagraph (C); and 

10 ‘‘(II) to issuing Trade Alerts de11 scribed in subparagraph (D). 

12 ‘‘(B) NATIONAL TARGETING AND ANALYSIS

13 GROUPS.— 

14 ‘‘(i) IN GENERAL.—A National Tar15 geting and Analysis Group referred to in 

16 subparagraph (A)(ii)(II) shall, at a min17 imum, be established for each priority 

18 trade issue described in clause (ii). 

19 ‘‘(ii) PRIORITY TRADE ISSUES.— 

20 ‘‘(I) IN GENERAL.—The priority 

21 trade issues described in this clause 

22 are the following: 

23 ‘‘(aa) Agriculture programs. 

24 ‘‘(bb) Antidumping and 

25 countervailing duties. 


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1 ‘‘(cc) Import safety. 

2 ‘‘(dd) Intellectual property 

3 rights. 

4 ‘‘(ee) Revenue. 

5 ‘‘(ff) Textiles and wearing 

6 apparel. 

7 ‘‘(gg) Trade agreements and 

8 preference programs. 

9 ‘‘(II) MODIFICATION.—The Com10 missioner is authorized to establish 

11 new priority trade issues and elimi12 nate, consolidate, or otherwise modify 

13 the priority trade issues described in 

14 this paragraph if the Commissioner— 

15 ‘‘(aa) determines it nec16 essary and appropriate to do so; 

17 ‘‘(bb) submits to the Com18 mittee on Finance of the Senate 

19 and the Committee on Ways and 

20 Means of the House of Rep21 resentatives a summary of pro22 posals to consolidate, eliminate, 

23 or otherwise modify existing pri24 ority trade issues not later than 


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1 60 days before such changes are 

2 to take effect; and 

3 ‘‘(cc) submits to the Com4 mittee on Finance of the Senate 

5 and the Committee on Ways and 

6 Means of the House of Rep7 resentatives a summary of pro8 posals to establish new priority 

9 trade issues not later than 30 

10 days after such changes are to 

11 take effect. 

12 ‘‘(iii) DUTIES.—The duties of each 

13 National Targeting and Analysis Group 

14 shall include— 

15 ‘‘(I) directing the trade enforce16 ment and compliance assessment ac17 tivities of U.S. Customs and Border 

18 Protection that relate to the Group’s 

19 priority trade issue; 

20 ‘‘(II) facilitating, promoting, and 

21 coordinating cooperation and the ex22 change of information between U.S. 

23 Customs and Border Protection, U.S. 

24 Immigration and Customs Enforce25 ment, and other relevant Federal deVerDate Sep 11 2014 04:43 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H1916.IH H1916

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1 partments and agencies regarding the 

2 Group’s priority trade issue; and 

3 ‘‘(III) serving as the primary liai4 son between U.S. Customs and Bor5 der Protection and the public regard6 ing United States Government activi7 ties regarding the Group’s priority 

8 trade issue, including— 

9 ‘‘(aa) providing for receipt 

10 and transmission to the appro11 priate U.S. Customs and Border 

12 Protection office of allegations 

13 from interested parties in the pri14 vate sector of violations of cus15 toms and trade laws of the 

16 United States of merchandise re17 lating to the priority trade issue; 

18 ‘‘(bb) obtaining information 

19 from the appropriate U.S. Cus20 toms and Border Protection of21 fice on the status of any activi22 ties resulting from the submis23 sion of any such allegation, in24 cluding any decision not to pur25 sue the allegation, and providing 


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1 any such information to each in2 terested party in the private sec3 tor that submitted the allegation 

4 every 90 days after the allegation 

5 was received by U.S. Customs 

6 and Border Protection unless 

7 providing such information would 

8 compromise an ongoing law en9 forcement investigation; and 

10 ‘‘(cc) notifying on a timely 

11 basis each interested party in the 

12 private sector that submitted 

13 such allegation of any civil or 

14 criminal actions taken by U.S. 

15 Customs and Border Protection 

16 or other Federal department or 

17 agency resulting from the allega18 tion. 

19 ‘‘(C) COMMERCIAL RISK ASSESSMENT TAR20 GETING.—In carrying out its duties with re21 spect to commercial risk assessment targeting, 

22 the Commercial Targeting Division shall— 

23 ‘‘(i) establish targeted risk assessment 

24 methodologies and standards— 


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1 ‘‘(I) for evaluating the risk that 

2 cargo destined for the United States 

3 may violate the customs and trade 

4 laws of the United States, particularly 

5 those laws applicable to merchandise 

6 subject to the priority trade issues de7 scribed in subparagraph (B)(ii); and 

8 ‘‘(II) for issuing, as appropriate, 

9 Trade Alerts described in subpara10 graph (D); and 

11 ‘‘(ii) to the extent practicable and oth12 erwise authorized by law, use, to admin13 ister the methodologies and standards es14 tablished under clause (i) — 

15 ‘‘(I) publicly available informa16 tion; 

17 ‘‘(II) information available from 

18 the Automated Commercial System, 

19 the Automated Commercial Environ20 ment computer system, the Auto21 mated Targeting System, the Auto22 mated Export System, the Inter23 national Trade Data System, the 

24 TECS (formerly known as the ‘Treas25 ury Enforcement Communications 


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1 System’), the case management sys2 tem of U.S. Immigration and Customs 

3 Enforcement, and any successor sys4 tems; and 

5 ‘‘(III) information made available 

6 to the Commercial Targeting Division, 

7 including information provided by pri8 vate sector entities. 

9 ‘‘(D) TRADE ALERTS.— 

10 ‘‘(i) ISSUANCE.—Based upon the ap11 plication of the targeted risk assessment 

12 methodologies and standards established 

13 under subparagraph (C), the Executive Di14 rector of the Commercial Targeting Divi15 sion and the Directors of the National 

16 Targeting and Analysis Groups may issue 

17 Trade Alerts to directors of United States 

18 ports of entry directing further inspection, 

19 or physical examination or testing, of spe20 cific merchandise to ensure compliance 

21 with all applicable customs and trade laws 

22 and regulations administered by U.S. Cus23 toms and Border Protection. 

24 ‘‘(ii) DETERMINATIONS NOT TO IM25 PLEMENT TRADE ALERTS.—The director 


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1 of a United States port of entry may deter2 mine not to conduct further inspections, or 

3 physical examination or testing, pursuant 

4 to a Trade Alert issued under clause (i) 

5 if— 

6 ‘‘(I) the director finds that such 

7 a determination is justified by security 

8 interests; and 

9 ‘‘(II) notifies the Assistant Com10 missioner of the Office of Field Oper11 ations and the Assistant Commis12 sioner of International Trade of U.S. 

13 Customs and Border Protection of the 

14 determination and the reasons for the 

15 determination not later than 48 hours 

16 after making the determination. 

17 ‘‘(iii) SUMMARY OF DETERMINATIONS

18 NOT TO IMPLEMENT.—The Assistant Com19 missioner of the Office of Field Operations 

20 of U.S. Customs and Border Protection 

21 shall— 

22 ‘‘(I) compile an annual public 

23 summary of all determinations by di24 rectors of United States ports of entry 


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1 under clause (ii) and the reasons for 

2 those determinations; 

3 ‘‘(II) conduct an evaluation of 

4 the utilization of Trade Alerts issued 

5 under clause (i); and 

6 ‘‘(III) submit the summary to the 

7 Committee on Finance of the Senate 

8 and the Committee on Ways and 

9 Means of the House of Representa10 tives not later than December 31 of 

11 each year. 

12 ‘‘(iv) INSPECTION DEFINED.—In this 

13 subparagraph, the term ‘inspection’ means 

14 the comprehensive evaluation process used 

15 by U.S. Customs and Border Protection, 

16 other than physical examination or testing, 

17 to permit the entry of merchandise into the 

18 United States, or the clearance of mer19 chandise for transportation in bond 

20 through the United States, for purposes 

21 of— 

22 ‘‘(I) assessing duties; 

23 ‘‘(II) identifying restricted or 

24 prohibited items; and 


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1 ‘‘(III) ensuring compliance with 

2 all applicable customs and trade laws 

3 and regulations administered by U.S. 

4 Customs and Border Protection.’’. 

5 (b) USE OF TRADE DATA FOR COMMERCIAL EN6 FORCEMENT PURPOSES.—Section 343(a)(3)(F) of the 

7 Trade Act of 2002 (19 U.S.C. 2071 note) is amended to 

8 read as follows: 

9 ‘‘(F) The information collected pursuant to 

10 the regulations shall be used exclusively for en11 suring cargo safety and security, preventing 

12 smuggling, and commercial risk assessment tar13 geting, and shall not be used for any commer14 cial enforcement purposes, including for deter15 mining merchandise entry. Notwithstanding the 

16 preceding sentence, nothing in this section shall 

17 be treated as amending, repealing, or otherwise 

18 modifying title IV of the Tariff Act of 1930 or 

19 regulations prescribed thereunder.’’. 

20 SEC. 112. REPORT ON OVERSIGHT OF REVENUE PROTEC21 TION AND ENFORCEMENT MEASURES. 

22 (a) IN GENERAL.—Not later the March 31, 2016, 

23 and not later than March 31 of each second year there24 after, the Inspector General of the Department of the 

25 Treasury shall submit to the Committee on Finance of the 


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1 Senate and the Committee on Ways and Means of the 

2 House of Representatives a report assessing, with respect 

3 to the period covered by the report, as specified in sub4 section (b), the following: 

5 (1) The effectiveness of the measures taken by 

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

7 protection of revenue, including— 

8 (A) the collection of countervailing duties 

9 assessed under subtitle A of title VII of the 

10 Tariff Act of 1930 (19 U.S.C. 1671 et seq.) 

11 and antidumping duties assessed under subtitle 

12 B of title VII of the Tariff Act of 1930 (19 

13 U.S.C. 1673 et seq.); 

14 (B) the assessment, collection, and mitiga15 tion of commercial fines and penalties; 

16 (C) the use of bonds, including continuous 

17 and single transaction bonds, to secure that 

18 revenue; and 

19 (D) the adequacy of the policies of U.S. 

20 Customs and Border Protection with respect to 

21 the monitoring and tracking of merchandise 

22 transported in bond and collecting duties, as 

23 appropriate. 

24 (2) The effectiveness of actions taken by U.S. 

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1 ability and performance with respect to protection of 

2 revenue. 

3 (3) The number and outcome of investigations 

4 instituted by U.S. Customs and Border Protection 

5 with respect to the underpayment of duties. 

6 (4) The effectiveness of training with respect to 

7 the collection of duties provided for personnel of 

8 U.S. Customs and Border Protection. 

9 (b) PERIOD COVERED BY REPORT.—Each report re10 quired by subsection (a) shall cover the period of 2 fiscal 

11 years ending on September 30 of the calendar year pre12 ceding the submission of the report. 

13 SEC. 113. REPORT ON SECURITY AND REVENUE MEASURES 

14 WITH RESPECT TO MERCHANDISE TRANS15 PORTED IN BOND. 

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

17 2016, 2017, and 2018, the Secretary of Homeland Secu18 rity and the Secretary of the Treasury shall jointly submit 

19 to the Committee on Finance of the Senate and the Com20 mittee on Ways and Means of the House of Representa21 tives a report on efforts undertaken by U.S. Customs and 

22 Border Protection to ensure the secure transportation of 

23 merchandise in bond through the United States and the 

24 collection of revenue owed upon the entry of such mer25 chandise into the United States for consumption. 


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1 (b) ELEMENTS.—Each report required by subsection 

2 (a) shall include, for the fiscal year preceding the submis3 sion of the report, information on— 

4 (1) the overall number of entries of merchan5 dise for transportation in bond through the United 

6 States; 

7 (2) the ports at which merchandise arrives in 

8 the United States for transportation in bond and at 

9 which records of the arrival of such merchandise are 

10 generated; 

11 (3) the average time taken to reconcile such 

12 records with the records at the final destination of 

13 the merchandise in the United States to demonstrate 

14 that the merchandise reaches its final destination or 

15 is re-exported; 

16 (4) the average time taken to transport mer17 chandise in bond from the port at which the mer18 chandise arrives in the United States to its final des19 tination in the United States; 

20 (5) the total amount of duties, taxes, and fees 

21 owed with respect to shipments of merchandise 

22 transported in bond and the total amount of such 

23 duties, taxes, and fees paid; 


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1 (6) the total number of notifications by carriers 

2 of merchandise being transported in bond that the 

3 destination of the merchandise has changed; and 

4 (7) the number of entries that remain 

5 unreconciled. 

6 SEC. 114. IMPORTER OF RECORD PROGRAM. 

7 (a) ESTABLISHMENT.—Not later than the date that 

8 is 180 days after the date of the enactment of this Act, 

9 the Secretary of Homeland Security shall establish an im10 porter of record program to assign and maintain importer 

11 of record numbers. 

12 (b) REQUIREMENTS.—The Secretary shall ensure 

13 that, as part of the importer of record program, U.S. Cus14 toms and Border Protection— 

15 (1) develops criteria that importers must meet 

16 in order to obtain an importer of record number, in17 cluding— 

18 (A) criteria to ensure sufficient informa19 tion is collected to allow U.S. Customs and Bor20 der Protection to verify the existence of the im21 porter requesting the importer of record num22 ber; 

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1 filiations between importers that are requesting 

2 or have been assigned importer of record num3 bers; and 

4 (C) criteria to ensure sufficient informa5 tion is collected to allow U.S. Customs and Bor6 der Protection to identify changes in address 

7 and corporate structure of importers; 

8 (2) provides a process by which importers are 

9 assigned importer of record numbers; 

10 (3) maintains a centralized database of im11 porter of record numbers, including a history of im12 porter of record numbers associated with each im13 porter, and the information described in subpara14 graphs (A), (B), and (C) of paragraph (1); 

15 (4) evaluates and maintains the accuracy of the 

16 database if such information changes; and 

17 (5) takes measures to ensure that duplicate im18 porter of record numbers are not issued. 

19 (c) REPORT.—Not later than one year after the date 

20 of the enactment of this Act, the Secretary shall submit 

21 to the Committee on Finance of the Senate and the Com22 mittee on Ways and Means of the House of Representa23 tives a report on the importer of record program estab24 lished under subsection (a). 


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1 (d) NUMBER DEFINED.—In this subsection, the term 

2 ‘‘number’’, with respect to an importer of record, means 

3 a filing identification number described in section 24.5 of 

4 title 19, Code of Federal Regulations (or any cor5 responding similar regulation) that fully supports the re6 quirements of subsection (b) with respect to the collection 

7 and maintenance of information. 

8 SEC. 115. CUSTOMS BROKER IDENTIFICATION OF IMPORT9 ERS. 

10 (a) IN GENERAL.—Section 641 of the Tariff Act of 

11 1930 (19 U.S.C. 1641) is amended by adding at the end 

12 the following: 

13 ‘‘(i) IDENTIFICATION OF IMPORTERS.— 

14 ‘‘(1) IN GENERAL.—The Secretary shall pre15 scribe regulations setting forth the minimum stand16 ards for customs brokers and importers, including 

17 nonresident importers, regarding the identity of the 

18 importer that shall apply in connection with the im19 portation of merchandise into the United States. 

20 ‘‘(2) MINIMUM REQUIREMENTS.—The regula21 tions shall, at a minimum, require customs brokers 

22 to implement, and importers (after being given ade23 quate notice) to comply with, reasonable procedures 

24 for— 


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1 ‘‘(A) collecting the identity of importers, 

2 including nonresident importers, seeking to im3 port merchandise into the United States to the 

4 extent reasonable and practicable; and 

5 ‘‘(B) maintaining records of the informa6 tion used to substantiate a person’s identity, in7 cluding name, address, and other identifying in8 formation. 

9 ‘‘(3) PENALTIES.—Any customs broker who 

10 fails to collect information required under the regu11 lations prescribed under this subsection shall be lia12 ble to the United States, at the discretion of the 

13 Secretary, for a monetary penalty not to exceed 

14 $10,000 for each violation of those regulations and 

15 subject to revocation or suspension of a license or 

16 permit of the customs broker pursuant to the proce17 dures set forth in subsection (d). 

18 ‘‘(4) DEFINITIONS.—In this subsection, the 

19 terms ‘importer’ and ‘nonresident importer’ have the 

20 meaning given such terms in section 2 of the Cus21 toms Enhanced Enforcement and Trade Facilitation 

22 Act of 2012.’’. 

23 (b) STUDY AND REPORT REQUIRED.—Not later than 

24 180 days after the date of enactment of this Act, the Com25 missioner of U.S. Customs and Border Protection shall 


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1 submit to Congress a report containing recommendations 

2 for— 

3 (1) determining the most timely and effective 

4 way to require foreign nationals to provide customs 

5 brokers with appropriate and accurate information, 

6 comparable to that which is required of United 

7 States nationals, concerning the identity, address, 

8 and other related information relating to such for9 eign nationals necessary to enable customs brokers 

10 to comply with the requirements of section 641(i) of 

11 the Tariff Act of 1930 (as added by subsection (a)); 

12 and 

13 (2) establishing a system for customs brokers to 

14 review information maintained by relevant Federal 

15 agencies for purposes of verifying the identities of 

16 importers, including nonresident importers, seeking 

17 to import merchandise into the United States. 

18 SEC. 116. ESTABLISHMENT OF NEW IMPORTER PROGRAM. 

19 (a) IN GENERAL.—Not later than the date that is 

20 180 days after the date of the enactment of this Act, the 

21 Commissioner shall establish a new importer program that 

22 directs U.S. Customs and Border Protection to adjust 

23 bond amounts for new importers based on the level of risk 

24 assessed by U.S. Customs and Border Protection for pro25 tection of revenue of the Federal Government. 


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1 (b) REQUIREMENTS.—The Commissioner shall en2 sure that, as part of the new importer program established 

3 under subsection (a), U.S. Customs and Border Protec4 tion— 

5 (1) develops risk-based criteria for determining 

6 which importers are considered to be new importers 

7 for the purposes of this subsection; 

8 (2) develops risk assessment guidelines for new 

9 importers to determine if and to what extent— 

10 (A) to adjust bond amounts of imported 

11 products of new importers; and 

12 (B) to increase screening of imported prod13 ucts of new importers; 

14 (3) develops procedures to ensure increased 

15 oversight of imported products of new importers re16 lating to the enforcement of the priority trade issues 

17 described in paragraph (3)(B)(ii) of section 2(d) of 

18 the Act of March 3, 1927 (44 Stat. 1381, chapter 

19 348; 19 U.S.C. 2072(d)), as added by section 111(a) 

20 of this Act; 

21 (4) develops procedures to ensure increased 

22 oversight of imported products of new importers by 

23 Centers of Excellence and Expertise established 

24 under section 110 of this Act; and 


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1 (5) establishes a centralized database of new 

2 importers to ensure accuracy of information that is 

3 required to be provided by new importers to U.S. 

4 Customs and Border Protection. 

5 SEC. 117. REQUIREMENTS APPLICABLE TO NON-RESIDENT 

6 IMPORTERS. 

7 (a) IN GENERAL.—Part III of title IV of the Tariff 

8 Act of 1930 (19 U.S.C. 1481 et seq.) is amended by in9 serting after section 484b the following new section: 

10 ‘‘SEC. 484c. REQUIREMENTS APPLICABLE TO NON-RESI11 DENT IMPORTERS. 

12 ‘‘(a) IN GENERAL.—Except as provided in subsection 

13 (c), if an importer of record under section 484 of this Act 

14 is not a resident of the United States, the Commissioner 

15 responsible for U.S. Customs and Border Protection shall 

16 require the non-resident importer to designate a resident 

17 agent in the United States subject to the requirements de18 scribed in subsection (b). 

19 ‘‘(b) REQUIREMENTS.—The requirements described 

20 in this subsection are the following: 

21 ‘‘(1) The resident agent shall be authorized to 

22 accept service of process against the non-resident 

23 importer in connection with the importation of mer24 chandise. 


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1 ‘‘(2) The resident agent shall be liable to the 

2 United States for payment of duties and penalties or 

3 other fines issued by the Secretary of Homeland Se4 curity or the Commissioner if the Secretary or Com5 missioner is unable to collect such duties and pen6 alties or other fines from such non-resident importer 

7 in connection with the importation of merchandise. 

8 ‘‘(3) The Secretary of the Treasury may require 

9 the resident agent to secure a bond or other security 

10 in connection with the importation of merchandise 

11 as the Secretary may deem necessary for the protec12 tion of the revenue or to assure compliance with any 

13 provision of law, regulation, or instruction which the 

14 Secretary of the Commissioner may be authorized to 

15 enforce. 

16 ‘‘(4) The Commissioner responsible for U.S. 

17 Customs and Border Protection shall require the 

18 non-resident importer to establish a power of attor19 ney with the resident agent in connection with the 

20 importation of merchandise. 

21 ‘‘(c) NON-APPLICABILITY.—The requirements of this 

22 section shall not apply with respect to a non-resident im23 porter who is a validated Tier 2 or Tier 3 participant in 

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1 gram established under subtitle B of title II of the SAFE 

2 Port Act (6 U.S.C. 961 et seq.). 

3 ‘‘(d) PENALTIES.— 

4 ‘‘(1) IN GENERAL.—It shall be unlawful for any 

5 person to import into the United States any mer6 chandise in violation of this section. 

7 ‘‘(2) CIVIL PENALTIES.—Any person who vio8 lates paragraph (1) shall be liable for a civil penalty 

9 of $50,000 for each such violation. 

10 ‘‘(3) OTHER PENALTIES.—In addition to the 

11 penalties specified in paragraph (2), any violation of 

12 this section that violates any other customs and 

13 trade laws of the United States shall be subject to 

14 any applicable civil and criminal penalty, including 

15 seizure and forfeiture, that may be imposed under 

16 such customs or trade law or title 18, United States 

17 Code, with respect to the importation of merchan18 dise. 

19 ‘‘(4) DEFINITION.—In this subsection, the term 

20 ‘customs and trade laws of the United States’ has 

21 the meaning given such term in section 2 of the 

22 Trade Enforcement and Trade Facilitation Act of 

23 2015.’’. 

24 (b) EFFECTIVE DATE.—Section 484c of the Tariff 

25 Act of 1930, as added by subsection (a), takes effect on 


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1 the date of the enactment of this Act and applies with 

2 respect to the importation, on or after the date that is 

3 180 days after such date of enactment, of merchandise 

4 of an importer of record under section 484 of the Tariff 

5 Act of 1930 who is not a resident of the United States. 

6 SEC. 118. SINGLE ENTRY BOND FOR SUSPECTED EVASION. 

7 (a) IN GENERAL.—The Tariff Act of 1930 is amend8 ed by inserting after section 516A (19 U.S.C. 1516a) the 

9 following: 

10 ‘‘SEC. 516B. SINGLE ENTRY BOND FOR SUSPECTED EVA11 SION. 

12 ‘‘(a) DEFINITIONS.—In this section: 

13 ‘‘(1) ENTER; ENTRY.—The terms ‘enter’ and 

14 ‘entry’ refer to the entry, or withdrawal from ware15 house for consumption, in the customs territory of 

16 the United States. 

17 ‘‘(2) EVADE; EVASION.—The terms ‘evade’ and 

18 ‘evasion’ refer to entering covered merchandise into 

19 the customs territory of the United States by means 

20 of any document or electronically transmitted data 

21 or information, written or oral statement, or act that 

22 is material and false, or any omission that is mate23 rial, and that results in any cash deposit or other se24 curity or any amount of applicable antidumping or 


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1 countervailing duties being reduced or not being ap2 plied with respect to the merchandise. 

3 ‘‘(3) SECRETARY.—The term ‘Secretary’ means 

4 the Secretary of the Treasury. 

5 ‘‘(b) SINGLE ENTRY BOND.—The Secretary shall re6 quire a single entry bond, in addition to any continuous 

7 bond, in any case in which the Secretary has a reasonable 

8 belief, based on evidence, that merchandise— 

9 ‘‘(1) may be subject to an order issued under 

10 section 706 or section 736; and 

11 ‘‘(2) is being entered into the United States by 

12 means of evasion. 

13 The bond shall be set at an amount the Secretary deter14 mines sufficient to protect revenue and to ensure compli15 ance with the law, regulations, and instructions that the 

16 Secretary is authorized to enforce.’’. 

17 (b) TECHNICAL AMENDMENT.—Section 514(b) of the 

18 Tariff Act of 1930 (19 U.S.C. 1514(b)) is amended by 

19 striking ‘‘section 303’’ and all that follows through ‘‘which 

20 are reviewable’’ and inserting ‘‘title VII that are review21 able’’. 


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1 TITLE II—IMPORT HEALTH AND 

2 SAFETY 

3 SEC. 201. INTERAGENCY IMPORT SAFETY WORKING GROUP. 

4 (a) ESTABLISHMENT.—There is established an inter5 agency Import Safety Working Group. 

6 (b) MEMBERSHIP.—The interagency Import Safety 

7 Working Group shall consist of the following officials or 

8 their designees: 

9 (1) The Secretary of Homeland Security, who 

10 shall serve as the Chair. 

11 (2) The Secretary of Health and Human Serv12 ices, who shall serve as the Vice Chair. 

13 (3) The Secretary of the Treasury. 

14 (4) The Secretary of Commerce. 

15 (5) The Secretary of Agriculture. 

16 (6) The United States Trade Representative. 

17 (7) The Director of the Office of Management 

18 and Budget. 

19 (8) The Commissioner of Food and Drugs. 

20 (9) The Commissioner responsible for U.S. Cus21 toms and Border Protection. 

22 (10) The Chairman of the Consumer Product 

23 Safety Commission. 

24 (11) The Director of U.S. Immigration and 

25 Customs Enforcement. 


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1 (12) The head of any other Federal agency des2 ignated by the President to participate in the inter3 agency Import Safety Working Group, as appro4 priate. 

5 (c) DUTIES.—The duties of the interagency Import 

6 Safety Working Group shall include— 

7 (1) consulting on the development of the joint 

8 import safety rapid response plan required by sec9 tion 202 of this Act; 

10 (2) periodically evaluating the adequacy of the 

11 plans, practices, and resources of the Federal Gov12 ernment dedicated to ensuring the safety of mer13 chandise imported in the United States and the ex14 peditious entry of such merchandise, including— 

15 (A) minimizing the duplication of efforts 

16 among agencies the heads of which are mem17 bers of the interagency Import Safety Working 

18 Group and ensuring the compatibility of the 

19 policies and regulations of those agencies; and 

20 (B) recommending additional administra21 tive actions, as appropriate, designed to ensure 

22 the safety of merchandise imported into the 

23 United States and the expeditious entry of such 

24 merchandise and considering the impact of 

25 those actions on private sector entities; 


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1 (3) reviewing the engagement and cooperation 

2 of foreign governments and foreign manufacturers in 

3 facilitating the inspection and certification, as appro4 priate, of such merchandise to be imported into the 

5 United States and the facilities producing such mer6 chandise to ensure the safety of the merchandise 

7 and the expeditious entry of the merchandise into 

8 the United States; 

9 (4) identifying best practices, in consultation 

10 with private sector entities as appropriate, to assist 

11 United States importers in taking all appropriate 

12 steps to ensure the safety of merchandise imported 

13 into the United States, including with respect to— 

14 (A) the inspection of manufacturing facili15 ties in foreign countries; 

16 (B) the inspection of merchandise destined 

17 for the United States before exportation from a 

18 foreign country or before distribution in the 

19 United States; and 

20 (C) the protection of the international sup21 ply chain (as defined in section 2 of the Secu22 rity and Accountability For Every Port Act of 

23 2006 (6 U.S.C. 901)); 

24 (5) identifying best practices to assist Federal, 

25 State, and local governments and agencies, and port 


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1 authorities, to improve communication and coordina2 tion among such agencies and authorities with re3 spect to ensuring the safety of merchandise imported 

4 into the United States and the expeditious entry of 

5 such merchandise; and 

6 (6) otherwise identifying appropriate steps to 

7 increase the accountability of United States import8 ers and the engagement of foreign government agen9 cies with respect to ensuring the safety of merchan10 dise imported into the United States and the expedi11 tious entry of such merchandise. 

12 SEC. 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN. 

13 (a) IN GENERAL.—Not later than December 31, 

14 2016, the Secretary of Homeland Security, in consultation 

15 with the interagency Import Safety Working Group, shall 

16 develop a plan (to be known as the ‘‘joint import safety 

17 rapid response plan’’) that sets forth protocols and defines 

18 practices for U.S. Customs and Border Protection to 

19 use— 

20 (1) in taking action in response to, and coordi21 nating Federal responses to, an incident in which 

22 cargo destined for or merchandise entering the 

23 United States has been identified as posing a threat 

24 to the health or safety of consumers in the United 

25 States; and 


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1 (2) in recovering from or mitigating the effects 

2 of actions and responses to an incident described in 

3 paragraph (1). 

4 (b) CONTENTS.—The joint import safety rapid re5 sponse plan shall address— 

6 (1) the statutory and regulatory authorities and 

7 responsibilities of U.S. Customs and Border Protec8 tion and other Federal agencies in responding to an 

9 incident described in subsection (a)(1); 

10 (2) the protocols and practices to be used by 

11 U.S. Customs and Border Protection when taking 

12 action in response to, and coordinating Federal re13 sponses to, such an incident; 

14 (3) the measures to be taken by U.S. Customs 

15 and Border Protection and other Federal agencies in 

16 recovering from or mitigating the effects of actions 

17 taken in response to such an incident after the inci18 dent to ensure the resumption of the entry of mer19 chandise into the United States; and 

20 (4) exercises that U.S. Customs and Border 

21 Protection may conduct in conjunction with Federal, 

22 State, and local agencies, and private sector entities, 

23 to simulate responses to such an incident. 

24 (c) UPDATES OF PLAN.—The Secretary of Homeland 

25 Security shall review and update the joint import safety 


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1 rapid response plan, as appropriate, after conducting exer2 cises under subsection (d). 

3 (d) IMPORT HEALTH AND SAFETY EXERCISES.— 

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

5 Security and the Commissioner shall periodically en6 gage in the exercises referred to in subsection (b)(4), 

7 in conjunction with Federal, State, and local agen8 cies and private sector entities, as appropriate, to 

9 test and evaluate the protocols and practices identi10 fied in the joint import safety rapid response plan at 

11 United States ports of entry. 

12 (2) REQUIREMENTS FOR EXERCISES.—In con13 ducting exercises under paragraph (1), the Secretary 

14 and the Commissioner shall— 

15 (A) make allowance for the resources, 

16 needs, and constraints of United States ports of 

17 entry of different sizes in representative geo18 graphic locations across the United States; 

19 (B) base evaluations on current risk as20 sessments of merchandise entering the United 

21 States at representative United States ports of 

22 entry located across the United States; 

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1 tional Response Plan, the National Infrastruc2 ture Protection Plan, the National Prepared3 ness Guidelines, the Maritime Transportation 

4 System Security Plan, and other such national 

5 initiatives of the Department of Homeland Se6 curity, as appropriate; and 

7 (D) develop metrics with respect to the re8 sumption of the entry of merchandise into the 

9 United States after an incident described in 

10 subsection (a)(1). 

11 (3) REQUIREMENTS FOR TESTING AND EVALUA12 TION.—The Secretary and the Commissioner shall 

13 ensure that the testing and evaluation carried out in 

14 conducting exercises under paragraph (1)— 

15 (A) are performed using clear and objec16 tive performance measures; and 

17 (B) result in the identification of specific 

18 recommendations or best practices for respond19 ing to an incident described in subsection 

20 (a)(1). 

21 (4) DISSEMINATION OF RECOMMENDATIONS

22 AND BEST PRACTICES.—The Secretary and the 

23 Commissioner shall— 

24 (A) share the recommendations or best 

25 practices identified under paragraph (3)(B) 


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1 among the members of the interagency Import 

2 Safety Working Group and with, as appro3 priate— 

4 (i) State, local, and tribal govern5 ments; 

6 (ii) foreign governments; and 

7 (iii) private sector entities; and 

8 (B) use such recommendations and best 

9 practices to update the joint import safety rapid 

10 response plan. 

11 SEC. 203. TRAINING. 

12 The Commissioner shall ensure that personnel of 

13 U.S. Customs and Border Protection assigned to United 

14 States ports of entry are trained to effectively administer 

15 the provisions of this title and to otherwise assist in ensur16 ing the safety of merchandise imported into the United 

17 States and the expeditious entry of such merchandise. 

18 TITLE III—IMPORT-RELATED 

19 PROTECTION OF INTELLEC20 TUAL PROPERTY RIGHTS 

21 SEC. 301. DEFINITION OF INTELLECTUAL PROPERTY 

22 RIGHTS. 

23 In this title, the term ‘‘intellectual property rights’’ 

24 refers to copyrights, trademarks, and other forms of intel25 lectual property rights that are enforced by U.S. Customs 


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1 and Border Protection or U.S. Immigration and Customs 

2 Enforcement. 

3 SEC. 302. EXCHANGE OF INFORMATION RELATED TO 

4 TRADE ENFORCEMENT. 

5 The Tariff Act of 1930 is amended by inserting after 

6 section 628 (19 U.S.C. 1628) the following new section: 

7 ‘‘SEC. 628A. EXCHANGE OF INFORMATION RELATED TO 

8 TRADE ENFORCEMENT. 

9 ‘‘(a) IN GENERAL.—Subject to subsections (c) and 

10 (d), if the Commissioner responsible for U.S. Customs and 

11 Border Protection suspects that merchandise is being im12 ported into the United States in violation of section 526 

13 of this Act or section 602, 1201(a)(2), or 1201(b)(1) of 

14 title 17, United States Code, and determines that the ex15 amination or testing of the merchandise by a person de16 scribed in subsection (b) would assist the Commissioner 

17 in determining if the merchandise is being imported in vio18 lation of that section, the Commissioner, to permit the 

19 person to conduct the examination and testing— 

20 ‘‘(1) shall provide to the person information 

21 that appears on the merchandise and its packaging 

22 and labels, including unredacted images of the mer23 chandise and its packaging and labels; and 


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1 ‘‘(2) may, subject to any applicable bonding re2 quirements, provide to the person unredacted sam3 ples of the merchandise. 

4 ‘‘(b) PERSON DESCRIBED.—A person described in 

5 this subsection is— 

6 ‘‘(1) in the case of merchandise suspected of 

7 being imported in violation of section 526, the owner 

8 of the trademark suspected of being copied or simu9 lated by the merchandise; 

10 ‘‘(2) in the case of merchandise suspected of 

11 being imported in violation of section 602 of title 17, 

12 United States Code, the owner of the copyright sus13 pected of being infringed by the merchandise; 

14 ‘‘(3) in the case of merchandise suspected of 

15 being primarily designed or produced for the pur16 pose of circumventing a technological measure that 

17 effectively controls access to a work protected under 

18 that title, and being imported in violation of section 

19 1201(a)(2) of that title, the owner of a copyright in 

20 the work; and 

21 ‘‘(4) in the case of merchandise suspected of 

22 being primarily designed or produced for the pur23 pose of circumventing protection afforded by a tech24 nological measure that effectively protects a right of 

25 an owner of a copyright in a work or a portion of 


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1 a work, and being imported in violation of section 

2 1201(b)(1) of that title, the owner of the copyright. 

3 ‘‘(c) LIMITATION.—Subsection (a) applies only with 

4 respect to merchandise suspected of infringing a trade5 mark or copyright that is recorded with U.S. Customs and 

6 Border Protection. 

7 ‘‘(d) EXCEPTION.—The Commissioner may not pro8 vide under subsection (a) information, photographs, or 

9 samples to a person described in subsection (b) if pro10 viding such information, photographs, or samples would 

11 compromise an ongoing law enforcement investigation or 

12 national security.’’. 

13 SEC. 303. SEIZURE OF CIRCUMVENTION DEVICES. 

14 (a) IN GENERAL.—Section 596(c)(2) of the Tariff 

15 Act of 1930 (19 U.S.C. 1595a(c)(2)) is amended— 

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

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

18 and inserting ‘‘; or’’; and 

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

20 ‘‘(G) U.S. Customs and Border Protection 

21 determines it is a technology, product, service, 

22 device, component, or part thereof the importa23 tion of which is prohibited under subsection 

24 (a)(2) or (b)(1) of section 1201 of title 17, 

25 United States Code.’’. 


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1 (b) NOTIFICATION OF PERSONS INJURED.— 

2 (1) IN GENERAL.—Not later than the date that 

3 is 30 business days after seizing merchandise pursu4 ant to subparagraph (G) of section 596(c)(2) of the 

5 Tariff Act of 1930, as added by subsection (a), the 

6 Commissioner shall provide to any person identified 

7 under paragraph (2) information regarding the mer8 chandise seized that is equivalent to information 

9 provided to copyright owners under regulations of 

10 U.S. Customs and Border Protection for merchan11 dise seized for violation of the copyright laws. 

12 (2) PERSONS TO BE PROVIDED INFORMA13 TION.—Any person injured by the violation of (a)(2) 

14 or (b)(1) of section 1201 of title 17, United States 

15 Code, that resulted in the seizure of the merchandise 

16 shall be provided information under paragraph (1), 

17 if that person is included on a list maintained by the 

18 Commissioner that is revised annually through publi19 cation in the Federal Register. 

20 (3) REGULATIONS.—Not later than one year 

21 after the date of the enactment of this Act, the Sec22 retary of the Treasury shall prescribe regulations es23 tablishing procedures that implement this sub24 section. 


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1 SEC. 304. ENFORCEMENT BY U.S. CUSTOMS AND BORDER 

2 PROTECTION OF WORKS FOR WHICH COPY3 RIGHT REGISTRATION IS PENDING. 

4 Not later than the date that is 180 days after the 

5 date of the enactment of this Act, the Secretary of Home6 land Security shall authorize a process pursuant to which 

7 the Commissioner shall enforce a copyright for which the 

8 owner has submitted an application for registration under 

9 title 17, United States Code, with the United States Copy10 right Office, to the same extent and in the same manner 

11 as if the copyright were registered with the Copyright Of12 fice, including by sharing information, images, and sam13 ples of merchandise suspected of infringing the copyright 

14 under section 628A of the Tariff Act of 1930, as added 

15 by section 302. 

16 SEC. 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS 

17 COORDINATION CENTER. 

18 (a) ESTABLISHMENT.—The Secretary of Homeland 

19 Security shall— 

20 (1) establish within U.S. Immigration and Cus21 toms Enforcement a National Intellectual Property 

22 Rights Coordination Center; and 

23 (2) appoint an Assistant Director to head the 

24 National Intellectual Property Rights Coordination 

25 Center. 


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1 (b) DUTIES.—The Assistant Director of the National 

2 Intellectual Property Rights Coordination Center shall— 

3 (1) coordinate the investigation of sources of 

4 merchandise that infringe intellectual property rights 

5 to identify organizations and individuals that 

6 produce, smuggle, or distribute such merchandise; 

7 (2) conduct and coordinate training with other 

8 domestic and international law enforcement agencies 

9 on investigative best practices— 

10 (A) to develop and expand the capability of 

11 such agencies to enforce intellectual property 

12 rights; and 

13 (B) to develop metrics to assess whether 

14 the training improved enforcement of intellec15 tual property rights; 

16 (3) coordinate, with U.S. Customs and Border 

17 Protection, activities conducted by the United States 

18 to prevent the importation or exportation of mer19 chandise that infringes intellectual property rights; 

20 (4) support the international interdiction of 

21 merchandise destined for the United States that in22 fringes intellectual property rights; 

23 (5) collect and integrate information regarding 

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1 mestic and international law enforcement agencies 

2 and other non-Federal sources; 

3 (6) develop a means to receive and organize in4 formation regarding infringement of intellectual 

5 property rights from such agencies and other 

6 sources; 

7 (7) disseminate information regarding infringe8 ment of intellectual property rights to other Federal 

9 agencies, as appropriate; 

10 (8) develop and implement risk-based alert sys11 tems, in coordination with U.S. Customs and Border 

12 Protection, to improve the targeting of persons that 

13 repeatedly infringe intellectual property rights; 

14 (9) coordinate with the offices of United States 

15 attorneys in order to develop expertise in, and assist 

16 with the investigation and prosecution of, crimes re17 lating to the infringement of intellectual property 

18 rights; and 

19 (10) carry out such other duties as the Sec20 retary of Homeland Security may assign. 

21 (c) COORDINATION WITH OTHER AGENCIES.—In 

22 carrying out the duties described in subsection (b), the As23 sistant Director of the National Intellectual Property 

24 Rights Coordination Center shall coordinate with— 

25 (1) U.S. Customs and Border Protection; 


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1 (2) the Food and Drug Administration; 

2 (3) the Department of Justice; 

3 (4) the Department of Commerce, including the 

4 United States Patent and Trademark Office; 

5 (5) the United States Postal Inspection Service; 

6 (6) the Office of the United States Trade Rep7 resentative; 

8 (7) any Federal, State, local, or international 

9 law enforcement agencies that the Director of U.S. 

10 Immigration and Customs Enforcement considers 

11 appropriate; and 

12 (8) any other entities that the Director con13 siders appropriate. 

14 (d) PRIVATE SECTOR OUTREACH.— 

15 (1) IN GENERAL.—The Assistant Director of 

16 the National Intellectual Property Rights Coordina17 tion Center shall work with U.S. Customs and Bor18 der Protection and other Federal agencies to con19 duct outreach to private sector entities in order to 

20 determine trends in and methods of infringing intel21 lectual property rights. 

22 (2) INFORMATION SHARING.—The Assistant Di23 rector shall share information and best practices 

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1 priate, in order to coordinate public and private sec2 tor efforts to combat the infringement of intellectual 

3 property rights. 

4 SEC. 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT 

5 OF INTELLECTUAL PROPERTY RIGHTS. 

6 The Commissioner and the Director of U.S. Immigra7 tion and Customs Enforcement shall include in the joint 

8 strategic plan required by section 105 of this Act— 

9 (1) a description of the efforts of the Depart10 ment of Homeland Security to enforce intellectual 

11 property rights; 

12 (2) a list of the 10 United States ports of entry 

13 at which U.S. Customs and Border Protection has 

14 seized the most merchandise, both by volume and by 

15 value, that infringes intellectual property rights dur16 ing the most recent 2-year period for which data are 

17 available; and 

18 (3) a recommendation for the optimal allocation 

19 of personnel, resources, and technology to ensure 

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

21 Immigration and Customs Enforcement are ade22 quately enforcing intellectual property rights. 


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1 SEC. 307. PERSONNEL DEDICATED TO THE ENFORCEMENT 

2 OF INTELLECTUAL PROPERTY RIGHTS. 

3 (a) PERSONNEL OF U.S. CUSTOMS AND BORDER

4 PROTECTION.—The Commissioner and the Director of 

5 U.S. Immigration and Customs Enforcement shall ensure 

6 that sufficient personnel are assigned throughout U.S. 

7 Customs and Border Protection and U.S. Immigration 

8 and Customs Enforcement, respectively, who have respon9 sibility for preventing the importation into the United 

10 States of merchandise that infringes intellectual property 

11 rights. 

12 (b) STAFFING OF NATIONAL INTELLECTUAL PROP13 ERTY RIGHTS COORDINATION CENTER.—The Commis14 sioner shall— 

15 (1) assign not fewer than 3 full-time employees 

16 of U.S. Customs and Border Protection to the Na17 tional Intellectual Property Rights Coordination 

18 Center established under section 305 of this Act; 

19 and 

20 (2) ensure that sufficient personnel are as21 signed to United States ports of entry to carry out 

22 the directives of the Center. 

23 SEC. 308. TRAINING WITH RESPECT TO THE ENFORCEMENT 

24 OF INTELLECTUAL PROPERTY RIGHTS. 

25 (a) TRAINING.—The Commissioner shall ensure that 

26 officers of U.S. Customs and Border Protection are 


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1 trained to effectively detect and identify merchandise des2 tined for the United States that infringes intellectual 

3 property rights, including through the use of technologies 

4 identified under subsection (c). 

5 (b) CONSULTATION WITH PRIVATE SECTOR.—The 

6 Commissioner shall consult with private sector entities to 

7 better identify opportunities for collaboration between 

8 U.S. Customs and Border Protection and such entities 

9 with respect to training for officers of U.S. Customs and 

10 Border Protection in enforcing intellectual property rights. 

11 (c) IDENTIFICATION OF NEW TECHNOLOGIES.—In 

12 consultation with private sector entities, the Commissioner 

13 shall identify— 

14 (1) technologies with the cost-effective capa15 bility to detect and identify merchandise at United 

16 States ports of entry that infringes intellectual prop17 erty rights; and 

18 (2) cost-effective programs for training officers 

19 of U.S. Customs and Border Protection to use such 

20 technologies. 

21 (d) DONATIONS OF TECHNOLOGY.—Not later than 

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

23 of this Act, the Commissioner shall prescribe regulations 

24 to enable U.S. Customs and Border Protection to receive 

25 donations of hardware, software, equipment, and similar 


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1 technologies, and to accept training and other support 

2 services, from private sector entities, for the purpose of 

3 enforcing intellectual property rights. 

4 SEC. 309. INTERNATIONAL COOPERATION AND INFORMA5 TION SHARING. 

6 (a) COOPERATION.—The Secretary of Homeland Se7 curity shall coordinate with the competent law enforce8 ment and customs authorities of foreign countries, includ9 ing by sharing information relevant to enforcement ac10 tions, to enhance the efforts of the United States and such 

11 authorities to enforce intellectual property rights. 

12 (b) TECHNICAL ASSISTANCE.—The Secretary of 

13 Homeland Security shall provide technical assistance to 

14 competent law enforcement and customs authorities of for15 eign countries to enhance the ability of such authorities 

16 to enforce intellectual property rights. 

17 (c) INTERAGENCY COLLABORATION.—The Commis18 sioner and the Director of U.S. Immigration and Customs 

19 Enforcement shall lead interagency efforts to collaborate 

20 with law enforcement and customs authorities of foreign 

21 countries to enforce intellectual property rights. 

22 SEC. 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS 

23 ENFORCEMENT. 

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1 gration and Customs Enforcement shall jointly submit to 

2 the Committee on Finance of the Senate and the Com3 mittee on Ways and Means of the House of Representa4 tives a report that contains the following: 

5 (1) With respect to the enforcement of intellec6 tual property rights, the following: 

7 (A) The number of referrals from U.S. 

8 Customs and Border Protection to U.S. Immi9 gration and Customs Enforcement relating to 

10 infringement of intellectual property rights dur11 ing the preceding year. 

12 (B) The number of investigations relating 

13 to the infringement of intellectual property 

14 rights referred by U.S. Immigration and Cus15 toms Enforcement to a United States attorney 

16 for prosecution and the United States attorneys 

17 to which those investigations were referred. 

18 (C) The number of such investigations ac19 cepted by each such United States attorney and 

20 the status or outcome of each such investiga21 tion. 

22 (D) The number of such investigations 

23 that resulted in the imposition of civil or crimi24 nal penalties. 


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1 (E) A description of the efforts of U.S. 

2 Custom and Border Protection and U.S. Immi3 gration and Customs Enforcement to improve 

4 the success rates of investigations and prosecu5 tions relating to the infringement of intellectual 

6 property rights. 

7 (2) An estimate of the average time required by 

8 the Office of International Trade of U.S. Customs 

9 and Border Protection to respond to a request from 

10 port personnel for advice with respect to whether 

11 merchandise detained by U.S. Customs and Border 

12 Protection infringed intellectual property rights, dis13 tinguished by types of intellectual property rights in14 fringed. 

15 (3) A summary of the outreach efforts of U.S. 

16 Customs and Border Protection and U.S. Immigra17 tion and Customs Enforcement with respect to— 

18 (A) the interdiction and investigation of, 

19 and the sharing of information between those 

20 agencies and other Federal agencies to prevent 

21 the infringement of intellectual property rights; 

22 (B) collaboration with private sector enti23 ties— 


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1 (i) to identify trends in the infringe2 ment of, and technologies that infringe, in3 tellectual property rights; 

4 (ii) to identify opportunities for en5 hanced training of officers of U.S. Cus6 toms and Border Protection and U.S. Im7 migration and Customs Enforcement; and 

8 (iii) to develop best practices to en9 force intellectual property rights; and 

10 (C) coordination with foreign governments 

11 and international organizations with respect to 

12 the enforcement of intellectual property rights. 

13 (4) A summary of the efforts of U.S. Customs 

14 and Border Protection and U.S. Immigration and 

15 Customs Enforcement to address the challenges with 

16 respect to the enforcement of intellectual property 

17 rights presented by Internet commerce and the tran18 sit of small packages and an identification of the 

19 volume, value, and type of merchandise seized for in20 fringing intellectual property rights as a result of 

21 such efforts. 

22 (5) A summary of training relating to the en23 forcement of intellectual property rights conducted 

24 under section 308 of this Act and expenditures for 

25 such training. 


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1 SEC. 311. INFORMATION FOR TRAVELERS REGARDING VIO2 LATIONS OF INTELLECTUAL PROPERTY 

3 RIGHTS. 

4 (a) IN GENERAL.—The Secretary of Homeland Secu5 rity shall develop and carry out an educational campaign 

6 to inform travelers entering or leaving the United States 

7 about the legal, economic, and public health and safety 

8 implications of acquiring merchandise that infringes intel9 lectual property rights outside the United States and im10 porting such merchandise into the United States in viola11 tion of United States law. 

12 (b) DECLARATION FORMS.—The Commissioner shall 

13 ensure that all versions of Declaration Form 6059B of 

14 U.S. Customs and Border Protection, or a successor form, 

15 including any electronic equivalent of Declaration Form 

16 6059B or a successor form, printed or displayed on or 

17 after the date that is 30 days after the date of the enact18 ment of this Act include a written warning to inform trav19 elers arriving in the United States that importation of 

20 merchandise into the United States that infringes intellec21 tual property rights may subject travelers to civil or crimi22 nal penalties and may pose serious risks to safety or 

23 health. 


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1 TITLE IV—MISCELLANEOUS 

2 PROVISIONS 

3 SEC. 401. DE MINIMIS VALUE. 

4 (a) DE MINIMIS VALUE.—Section 321(a)(2)(C) of 

5 the Tariff Act of 1930 (19 U.S.C. 1321(a)(2)(C)) is 

6 amended by striking ‘‘$200’’ and inserting ‘‘$800’’. 

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

8 subsection (a) shall apply with respect to articles entered, 

9 or withdrawn from warehouse for consumption, on or after 

10 the 15th day after the date of the enactment of this Act. 

11 SEC. 402. CONSULTATION ON TRADE AND CUSTOMS REV12 ENUE FUNCTIONS. 

13 Section 401(c) of the Safety and Accountability for 

14 Every Port Act (6 U.S.C. 115(c)) is amended— 

15 (1) in paragraph (1), by striking ‘‘on Depart16 ment policies and actions that have’’ and inserting 

17 ‘‘not later than 30 days after proposing, and not 

18 later than 30 days before finalizing, any Department 

19 policies, initiatives, or actions that will have’’; and 

20 (2) in paragraph (2)(A), by striking ‘‘not later 

21 than 30 days prior to the finalization of’’ and insert22 ing ‘‘not later than 60 days before proposing, and 

23 not later than 60 days before finalizing,’’. 


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1 SEC. 403. PENALTIES FOR CUSTOMS BROKERS. 

2 (a) IN GENERAL.—Section 641(d)(1) of the Tariff 

3 Act of 1930 (19 U.S.C. 1641(d)(1)) is amended— 

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

5 inserting a semicolon; 

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

7 and inserting ‘‘; or’’; and 

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

9 ‘‘(G) has been convicted of committing or 

10 conspiring to commit an act of terrorism de11 scribed in section 2332b of title 18, United 

12 States Code.’’. 

13 (b) TECHNICAL AMENDMENTS.—Section 641 of the 

14 Tariff Act of 1930 (19 U.S.C. 1641) is amended— 

15 (1) by striking ‘‘the Customs Service’’ each 

16 place it appears and inserting ‘‘U.S. Customs and 

17 Border Protection’’; 

18 (2) in subsection (d)(2)(B), by striking ‘‘The 

19 Customs Service’’ and inserting ‘‘U.S. Customs and 

20 Border Protection’’; and 

21 (3) in subsection (g)(2)(B), by striking ‘‘Sec22 retary’s notice’’ and inserting ‘‘notice under sub23 paragraph (A)’’. 


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1 SEC. 404. AMENDMENTS TO CHAPTER 98 OF THE HAR2 MONIZED TARIFF SCHEDULE OF THE UNITED 

3 STATES. 

4 (a) ARTICLES EXPORTED AND RETURNED, AD5 VANCED OR IMPROVED ABROAD.— 

6 (1) IN GENERAL.—U.S. Note 3 to subchapter 

7 II of chapter 98 of the Harmonized Tariff Schedule 

8 of the United States is amended by adding at the 

9 end the following: 

10 ‘‘(f)(1) For purposes of subheadings 9802.00.40 and 

11 9802.00.50, fungible articles exported from the United 

12 States for the purposes described in such subheadings— 

13 ‘‘(A) may be commingled; and 

14 ‘‘(B) the origin, value, and classification of such 

15 articles may be accounted for using an inventory 

16 management method. 

17 ‘‘(2) If a person chooses to use an inventory manage18 ment method under this paragraph with respect to fun19 gible articles, the person shall use the same inventory 

20 management method for any other articles with respect 

21 to which the person claims fungibility under this para22 graph. 

23 ‘‘(3) For the purposes of this paragraph— 

24 ‘‘(A) the term ‘fungible articles’ means mer25 chandise or articles that, for commercial purposes, 

26 are identical or interchangeable in all situations; and 


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1 ‘‘(B) the term ‘inventory management method’ 

2 means any method for managing inventory that is 

3 based on generally accepted accounting principles.’’. 

4 (2) EFFECTIVE DATE.—The amendment made 

5 by this subsection applies to articles classifiable 

6 under subheading 9802.00.40 or 9802.00.50 of the 

7 Harmonized Tariff Schedule of the United States 

8 that are entered, or withdrawn from warehouse for 

9 consumption, on or after the date that is 60 days 

10 after the date of the enactment of this Act. 

11 (b) MODIFICATION OF PROVISIONS RELATING TO

12 RETURNED PROPERTY.— 

13 (1) IN GENERAL.—The article description for 

14 heading 9801.00.10 of the Harmonized Tariff 

15 Schedule of the United States is amended by insert16 ing after ‘‘exported’’ the following: ‘‘, or any other 

17 products when returned within 3 years after having 

18 been exported’’. 

19 (2) EFFECTIVE DATE.—The amendment made 

20 by paragraph (1) applies to articles entered, or with21 drawn from warehouse for consumption, on or after 

22 the date that is 60 days after the date of the enact23 ment of this Act. 


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1 (c) DUTY-FREE TREATMENT FOR CERTAIN UNITED

2 STATES GOVERNMENT PROPERTY RETURNED TO THE

3 UNITED STATES.— 

4 (1) IN GENERAL.—Subchapter I of chapter 98 

5 of the Harmonized Tariff Schedule of the United 

6 States is amended by inserting in numerical se7 quence the following new heading: 

‘‘ 9801.00.11 United States Government 

property, returned to the 

United States without having 

been advanced in value or improved in condition by any 

means while abroad, entered 

by the United States Government or a contractor to the 

United States Government, 

and certified by the importer 

as United States Government 

property ................................. Free ’’. 

8 (2) EFFECTIVE DATE.—The amendment made 

9 by paragraph (1) applies to goods entered, or with10 drawn from warehouse for consumption, on or after 

11 the date that is 60 days after the date of the enact12 ment of this Act. 

13 SEC. 405. EXEMPTION FROM DUTY OF RESIDUE OF BULK 

14 CARGO CONTAINED IN INSTRUMENTS OF 

15 INTERNATIONAL TRAFFIC PREVIOUSLY EX16 PORTED FROM THE UNITED STATES. 

17 (a) IN GENERAL.—General Note 3(e) of the Har18 monized Tariff Schedule of the United States is amend19 ed— 


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1 (1) in subparagraph (v), by striking ‘‘and’’ at 

2 the end; 

3 (2) in subparagraph (vi), by adding ‘‘and’’ at 

4 the end; 

5 (3) by inserting after subparagraph (vi) (as so 

6 amended) the following new subparagraph: 

7 ‘‘(vii) residue of bulk cargo contained in 

8 instruments of international traffic previously 

9 exported from the United States,’’; and 

10 (4) by adding at the end of the flush text fol11 lowing subparagraph (vii) (as so added) the fol12 lowing: ‘‘For purposes of subparagraph (vii) of this 

13 paragraph: The term ‘residue’ means material of 

14 bulk cargo that remains in an instrument of inter15 national traffic after the bulk cargo is removed, with 

16 a quantity, by weight or volume, not exceeding 7 

17 percent of the bulk cargo, and with no or de minimis 

18 value. The term ‘bulk cargo’ means cargo that is 

19 unpackaged and is in either solid, liquid, or gaseous 

20 form. The term ‘instruments of international traffic’ 

21 means containers or holders, capable of and suitable 

22 for repeated use, such as lift vans, cargo vans, ship23 ping tanks, skids, pallets, caul boards, and cores for 

24 textile fabrics, arriving (whether loaded or empty) in 

25 use or to be used in the shipment of merchandise in 


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1 international traffic, and any additional articles or 

2 classes of articles that the Commissioner responsible 

3 for U.S. Customs and Border Protection designates 

4 as instruments of international traffic.’’. 

5 (b) EFFECTIVE DATE.—The amendments made by 

6 subsection (a) take effect on the date of the enactment 

7 of this Act and apply with respect to residue of bulk cargo 

8 contained in instruments of international traffic that are 

9 imported into the customs territory of the United States 

10 on or after such date of enactment and that previously 

11 have been exported from the United States. 

12 SEC. 406. DRAWBACK AND REFUNDS. 

13 (a) ARTICLES MADE FROM IMPORTED MERCHAN14 DISE.—Section 313(a) of the Tariff Act of 1930 (19 

15 U.S.C. 1313(a)) is amended by striking ‘‘the full amount 

16 of the duties paid upon the merchandise so used shall be 

17 refunded as drawback, less 1 per centum of such duties, 

18 except that such’’ and inserting ‘‘an amount calculated 

19 pursuant to regulations prescribed by the Secretary of the 

20 Treasury under subsection (l) shall be refunded as draw21 back, except that’’. 

22 (b) SUBSTITUTION FOR DRAWBACK PURPOSES.— 

23 Section 313(b) of the Tariff Act of 1930 (19 U.S.C. 

24 1313(b)) is amended— 


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1 (1) by striking ‘‘If imported’’ and inserting the 

2 following: 

3 ‘‘(1) IN GENERAL.—If imported’’; 

4 (2) by striking ‘‘and any other merchandise 

5 (whether imported or domestic) of the same kind 

6 and quality are’’ and inserting ‘‘or merchandise clas7 sifiable under the same 8-digit HTS subheading 

8 number as such imported merchandise is’’; 

9 (3) by striking ‘‘three years’’ and inserting ‘‘5 

10 years’’; 

11 (4) by striking ‘‘the receipt of such imported 

12 merchandise by the manufacturer or producer of 

13 such articles’’ and inserting ‘‘the date of importation 

14 of such imported merchandise’’; 

15 (5) by striking ‘‘an amount of drawback equal 

16 to’’ and all that follows through the end period and 

17 inserting ‘‘an amount calculated pursuant to regula18 tions prescribed by the Secretary of the Treasury 

19 under subsection (l), but only if those articles have 

20 not been used prior to such exportation or destruc21 tion.’’; and 

22 (6) by adding at the end the following: 

23 ‘‘(2) REQUIREMENTS RELATING TO TRANSFER

24 OF MERCHANDISE.— 


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1 ‘‘(A) MANUFACTURERS AND PRO2 DUCERS.—Drawback shall be allowed under 

3 paragraph (1) with respect to an article manu4 factured or produced using imported merchan5 dise or other merchandise classifiable under the 

6 same 8-digit HTS subheading number as such 

7 imported merchandise only if the manufacturer 

8 or producer of the article received such im9 ported merchandise or such other merchandise, 

10 directly or indirectly, from the importer. 

11 ‘‘(B) EXPORTERS AND DESTROYERS.— 

12 Drawback shall be allowed under paragraph (1) 

13 with respect to a manufactured or produced ar14 ticle that is exported or destroyed only if the 

15 exporter or destroyer received that article or an 

16 article classifiable under the same 8-digit HTS 

17 subheading number as that article, directly or 

18 indirectly, from the manufacturer or producer. 

19 ‘‘(C) EVIDENCE OF TRANSFER.—Transfers 

20 of merchandise under subparagraph (A) and 

21 transfers of articles under subparagraph (B) 

22 may be evidenced by business records kept in 

23 the normal course of business and no additional 

24 certificates of transfer or manufacture shall be 

25 required. 


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1 ‘‘(3) SUBMISSION OF BILL OF MATERIALS OR

2 FORMULA.— 

3 ‘‘(A) IN GENERAL.—Drawback shall be al4 lowed under paragraph (1) with respect to an 

5 article manufactured or produced using im6 ported merchandise or other merchandise classi7 fiable under the same 8-digit HTS subheading 

8 number as such imported merchandise only if 

9 the person making the drawback claim submits 

10 with the claim a bill of materials or formula 

11 identifying the merchandise and article by the 

12 8-digit HTS subheading number and the quan13 tity of the merchandise. 

14 ‘‘(B) BILL OF MATERIALS AND FORMULA

15 DEFINED.—In this paragraph, the terms ‘bill of 

16 materials’ and ‘formula’ mean records kept in 

17 the normal course of business that identify each 

18 component incorporated into a manufactured or 

19 produced article or that identify the quantity of 

20 each element, material, chemical, mixture, or 

21 other substance incorporated into a manufac22 tured article. 

23 ‘‘(4) SPECIAL RULE FOR SOUGHT CHEMICAL

24 ELEMENTS.— 


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1 ‘‘(A) IN GENERAL.—For purposes of para2 graph (1), a sought chemical element may be— 

3 ‘‘(i) considered imported merchandise, 

4 or merchandise classifiable under the same 

5 8-digit HTS subheading number as such 

6 imported merchandise, used in the manu7 facture or production of an article as de8 scribed in paragraph (1); and 

9 ‘‘(ii) substituted for source material 

10 containing that sought chemical element, 

11 without regard to whether the sought 

12 chemical element and the source material 

13 are classifiable under the same 8-digit 

14 HTS subheading number, and apportioned 

15 quantitatively, as appropriate. 

16 ‘‘(B) SOUGHT CHEMICAL ELEMENT DE17 FINED.—In this paragraph, the term ‘sought 

18 chemical element’ means an element listed in 

19 the Periodic Table of Elements that is imported 

20 into the United States or a chemical compound 

21 consisting of those elements, either separately 

22 in elemental form or contained in source mate23 rial.’’. 


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1 (c) MERCHANDISE NOT CONFORMING TO SAMPLE OR

2 SPECIFICATIONS.—Section 313(c) of the Tariff Act of 

3 1930 (19 U.S.C. 1313(c)) is amended— 

4 (1) in paragraph (1)— 

5 (A) in subparagraph (C)(ii), by striking 

6 ‘‘under a certificate of delivery’’ each place it 

7 appears; 

8 (B) in subparagraph (D)— 

9 (i) by striking ‘‘3’’ and inserting ‘‘5’’; 

10 and 

11 (ii) by striking ‘‘the Customs Service’’ 

12 and inserting ‘‘U.S. Customs and Border 

13 Protection’’; and 

14 (C) in the flush text at the end, by striking 

15 ‘‘the full amount of the duties paid upon such 

16 merchandise, less 1 percent,’’ and inserting ‘‘an 

17 amount calculated pursuant to regulations pre18 scribed by the Secretary of the Treasury under 

19 subsection (l)’’; 

20 (2) in paragraph (2), by striking ‘‘the Customs 

21 Service’’ and inserting ‘‘U.S. Customs and Border 

22 Protection’’; and 

23 (3) by amending paragraph (3) to read as fol24 lows: 


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1 ‘‘(3) EVIDENCE OF TRANSFERS.—Transfers of 

2 merchandise under paragraph (1) may be evidenced 

3 by business records kept in the normal course of 

4 business and no additional certificates of transfer 

5 shall be required.’’. 

6 (d) PROOF OF EXPORTATION.—Section 313(i) of the 

7 Tariff Act of 1930 (19 U.S.C. 1313(i)) is amended to read 

8 as follows: 

9 ‘‘(i) PROOF OF EXPORTATION.—A person claiming 

10 drawback under this section based on the exportation of 

11 an article shall provide proof of the exportation of the arti12 cle. Such proof of exportation— 

13 ‘‘(1) shall establish fully the date and fact of 

14 exportation and the identity of the exporter; and 

15 ‘‘(2) may be established through the use of 

16 records kept in the normal course of business or 

17 through an electronic export system of the United 

18 States Government, as determined by the Commis19 sioner responsible for U.S. Customs and Border 

20 Protection.’’. 

21 (e) UNUSED MERCHANDISE DRAWBACK.—Section 

22 313(j) of the Tariff Act of 1930 (19 U.S.C. 1313(j)) is 

23 amended— 

24 (1) in paragraph (1)— 


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1 (A) in subparagraph (A), in the matter 

2 preceding clause (i)— 

3 (i) by striking ‘‘3-year’’ and inserting 

4 ‘‘5-year’’; and 

5 (ii) by inserting ‘‘and before the draw6 back claim is filed’’ after ‘‘the date of im7 portation’’; and 

8 (B) in the flush text at the end, by striking 

9 ‘‘99 percent of the amount of each duty, tax, or 

10 fee so paid’’ and inserting ‘‘an amount cal11 culated pursuant to regulations prescribed by 

12 the Secretary of the Treasury under subsection 

13 (l)’’; 

14 (2) in paragraph (2)— 

15 (A) in the matter preceding subparagraph 

16 (A), by striking ‘‘paragraph (4)’’ and inserting 

17 ‘‘paragraphs (4), (5), and (6)’’; 

18 (B) in subparagraph (A), by striking 

19 ‘‘commercially interchangeable with’’ and in20 serting ‘‘classifiable under the same 8-digit 

21 HTS subheading number as’’; 

22 (C) in subparagraph (B)— 

23 (i) by striking ‘‘3-year’’ and inserting 

24 ‘‘5-year’’; and 


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1 (ii) by inserting ‘‘and before the draw2 back claim is filed’’ after ‘‘the imported 

3 merchandise’’; 

4 (D) in subparagraph (C)(ii), by striking 

5 subclause (II) and inserting the following: 

6 ‘‘(II) received the imported mer7 chandise, other merchandise classifi8 able under the same 8-digit HTS sub9 heading number as such imported 

10 merchandise, or any combination of 

11 such imported merchandise and such 

12 other merchandise, directly or indi13 rectly from the person who imported 

14 and paid any duties, taxes, and fees 

15 imposed under Federal law upon im16 portation or entry and due on the im17 ported merchandise (and any such 

18 transferred merchandise, regardless of 

19 its origin, will be treated as the im20 ported merchandise and any retained 

21 merchandise will be treated as domes22 tic merchandise);’’; and 

23 (E) in the flush text at the end, by striking 

24 ‘‘the amount of each such duty, tax, and fee’’ 

25 and all that follows through ‘‘99 percent of that 


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1 duty, tax, or fee’’ and inserting ‘‘an amount 

2 calculated pursuant to regulations prescribed by 

3 the Secretary of the Treasury under subsection 

4 (l) shall be refunded as drawback’’; 

5 (3) in paragraph (3)(B), by striking ‘‘the com6 mercially interchangeable merchandise’’ and insert7 ing ‘‘merchandise classifiable under the same 8-digit 

8 HTS subheading number as such imported merchan9 dise’’; and 

10 (4) by adding at the end the following: 

11 ‘‘(5)(A) For purposes of paragraph (2) and ex12 cept as provided in subparagraph (B), merchandise 

13 may not be substituted for imported merchandise for 

14 drawback purposes based on the 8-digit HTS sub15 heading number if the article description for the 8- 

16 digit HTS subheading number under which the im17 ported merchandise is classified begins with the term 

18 ‘other’. 

19 ‘‘(B) In cases described in subparagraph (A), 

20 merchandise may be substituted for imported mer21 chandise for drawback purposes if— 

22 ‘‘(i) the other merchandise and such im23 ported merchandise are classifiable under the 

24 same 10-digit HTS statistical reporting num25 ber; and 


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1 ‘‘(ii) the article description for that 10- 

2 digit HTS statistical reporting number does not 

3 begin with the term ‘other’. 

4 ‘‘(6)(A) For purposes of paragraph (2), a draw5 back claimant may use the first 8 digits of the 10- 

6 digit Schedule B number for merchandise or an arti7 cle to determine if the merchandise or article is clas8 sifiable under the same 8-digit HTS subheading 

9 number as the imported merchandise, without re10 gard to whether the Schedule B number corresponds 

11 to more than one 8-digit HTS subheading number. 

12 ‘‘(B) In this paragraph, the term ‘Schedule B’ 

13 means the Department of Commerce Schedule B, 

14 Statistical Classification of Domestic and Foreign 

15 Commodities Exported from the United States.’’. 

16 (f) LIABILITY FOR DRAWBACK CLAIMS.—Section 

17 313(k) of the Tariff Act of 1930 (19 U.S.C. 1313(k)) is 

18 amended to read as follows: 

19 ‘‘(k) LIABILITY FOR DRAWBACK CLAIMS.— 

20 ‘‘(1) IN GENERAL.—Any person making a claim 

21 for drawback under this section shall be liable for 

22 the full amount of the drawback claimed. 

23 ‘‘(2) LIABILITY OF IMPORTERS.—An importer 

24 shall be liable for any drawback claim made by an25 other person with respect to merchandise imported 


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1 by the importer in an amount equal to the lesser 

2 of— 

3 ‘‘(A) the amount of duties, taxes, and fees 

4 that the person claimed with respect to the im5 ported merchandise; or 

6 ‘‘(B) the amount of duties, taxes, and fees 

7 that the importer authorized the other person 

8 to claim with respect to the imported merchan9 dise. 

10 ‘‘(3) JOINT AND SEVERAL LIABILITY.—Persons 

11 described in paragraphs (1) and (2) shall be jointly 

12 and severally liable for the amount described in 

13 paragraph (2).’’. 

14 (g) REGULATIONS.—Section 313(l) of the Tariff Act 

15 of 1930 (19 U.S.C. 1313(l)) is amended to read as follows: 

16 ‘‘(l) REGULATIONS.— 

17 ‘‘(1) IN GENERAL.—Allowance of the privileges 

18 provided for in this section shall be subject to com19 pliance with such rules and regulations as the Sec20 retary of the Treasury shall prescribe. 

21 ‘‘(2) CALCULATION OF DRAWBACK.— 

22 ‘‘(A) IN GENERAL.—Not later than the 

23 date that is 2 years after the date of the enact24 ment of the Trade Facilitation and Trade En25 forcement Act of 2015 (or, if later, the effective 


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1 date provided for in section 406(q)(2)(B) of 

2 that Act), the Secretary shall prescribe regula3 tions for determining the calculation of 

4 amounts refunded as drawback under this sec5 tion. 

6 ‘‘(B) REQUIREMENTS.—The regulations 

7 required by subparagraph (A) for determining 

8 the calculation of amounts refunded as draw9 back under this section shall provide for a re10 fund of up to 99 percent of the duties, taxes, 

11 and fees paid with respect to the imported mer12 chandise, except that where there is substi13 tution of the merchandise or article, then— 

14 ‘‘(i) in the case of an article that is 

15 exported, the amount of the refund shall 

16 be equal to 99 percent of the lesser of— 

17 ‘‘(I) the amount of duties, taxes, 

18 and fees paid with respect to the im19 ported merchandise; or 

20 ‘‘(II) the amount of duties, taxes, 

21 and fees that would apply to the ex22 ported article if the exported article 

23 were imported; and 


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1 ‘‘(ii) in the case of an article that is 

2 destroyed, the amount of the refund shall 

3 be an amount that is— 

4 ‘‘(I) equal to 99 percent of the 

5 lesser of— 

6 ‘‘(aa) the amount of duties, 

7 taxes, and fees paid with respect 

8 to the imported merchandise; and 

9 ‘‘(bb) the amount of duties, 

10 taxes, and fees that would apply 

11 to the destroyed article if the de12 stroyed article were imported; 

13 and 

14 ‘‘(II) reduced by the value of ma15 terials recovered during destruction as 

16 provided in subsection (x). 

17 ‘‘(3) STATUS REPORTS ON REGULATIONS.—Not 

18 later than the date that is one year after the date 

19 of the enactment of the Trade Facilitation and 

20 Trade Enforcement Act of 2015, and annually there21 after until the regulations required by paragraph (2) 

22 are final, the Secretary shall submit to Congress a 

23 report on the status of those regulations.’’. 


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1 (h) SUBSTITUTION OF FINISHED PETROLEUM DE2 RIVATIVES.—Section 313(p) of the Tariff Act of 1930 (19 

3 U.S.C. 1313(p)) is amended— 

4 (1) by striking ‘‘Harmonized Tariff Schedule of 

5 the United States’’ each place it appears and insert6 ing ‘‘HTS’’; and 

7 (2) in paragraph (3)(A)— 

8 (A) in clause (ii)(III), by striking ‘‘, as so 

9 certified in a certificate of delivery or certificate 

10 of manufacture and delivery’’; and 

11 (B) in the flush text at the end— 

12 (i) by striking ‘‘, as so designated on 

13 the certificate of delivery or certificate of 

14 manufacture and delivery’’; and 

15 (ii) by striking the last sentence and 

16 inserting the following: ‘‘The party trans17 ferring the merchandise shall maintain 

18 records kept in the normal course of busi19 ness to demonstrate the transfer.’’. 

20 (i) PACKAGING MATERIAL.—Section 313(q) of the 

21 Tariff Act of 1930 (19 U.S.C. 1313(q)) is amended— 

22 (1) in paragraph (1), by striking ‘‘of 99 percent 

23 of any duty, tax, or fee imposed under Federal law 

24 on such imported material’’ and inserting ‘‘in an 

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1 scribed by the Secretary of the Treasury under sub2 section (l)’’; 

3 (2) in paragraph (2), by striking ‘‘of 99 percent 

4 of any duty, tax, or fee imposed under Federal law 

5 on the imported or substituted merchandise used to 

6 manufacture or produce such material’’ and insert7 ing ‘‘in an amount calculated pursuant to regula8 tions prescribed by the Secretary of the Treasury 

9 under subsection (l)’’; and 

10 (3) in paragraph (3), by striking ‘‘they contain’’ 

11 and inserting ‘‘it contains’’. 

12 (j) FILING OF DRAWBACK CLAIMS.—Section 313(r) 

13 of the Tariff Act of 1930 (19 U.S.C. 1313(r)) is amend14 ed— 

15 (1) in paragraph (1)— 

16 (A) by striking the first sentence and in17 serting the following: ‘‘A drawback entry shall 

18 be filed or applied for, as applicable, not later 

19 than 5 years after the date on which merchan20 dise on which drawback is claimed was im21 ported.’’; 

22 (B) in the second sentence, by striking ‘‘3- 

23 year’’ and inserting ‘‘5-year’’; and 


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1 (C) in the third sentence, by striking ‘‘the 

2 Customs Service’’ and inserting ‘‘U.S. Customs 

3 and Border Protection’’; 

4 (2) in paragraph (3)— 

5 (A) in subparagraph (A)— 

6 (i) in the matter preceding clause (i), 

7 by striking ‘‘The Customs Service’’ and in8 serting ‘‘U.S. Customs and Border Protec9 tion’’; 

10 (ii) in clauses (i) and (ii), by striking 

11 ‘‘the Customs Service’’ each place it ap12 pears and inserting ‘‘U.S. Customs and 

13 Border Protection’’; and 

14 (iii) in clause (ii)(I), by striking ‘‘3- 

15 year’’ and inserting ‘‘5-year’’; and 

16 (B) in subparagraph (B), by striking ‘‘the 

17 periods of time for retaining records set forth 

18 in subsection (t) of this section and’’ and in19 serting ‘‘the period of time for retaining records 

20 set forth in’’; and 

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

22 ‘‘(4) All drawback claims filed on and after the 

23 date that is 2 years after the date of the enactment 

24 of the Trade Facilitation and Trade Enforcement 

25 Act of 2015 (or, if later, the effective date provided 


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1 for in section 406(q)(2)(B) of that Act) shall be filed 

2 electronically.’’. 

3 (k) DESIGNATION OF MERCHANDISE BY SUC4 CESSOR.—Section 313(s) of the Tariff Act of 1930 (19 

5 U.S.C. 1313(s)) is amended— 

6 (1) in paragraph (2), by striking subparagraph 

7 (B) and inserting the following: 

8 ‘‘(B) subject to paragraphs (5) and (6) of 

9 subsection (j), imported merchandise, other 

10 merchandise classifiable under the same 8-digit 

11 HTS subheading number as such imported 

12 merchandise, or any combination of such im13 ported merchandise and such other merchan14 dise, that the predecessor received, before the 

15 date of succession, from the person who im16 ported and paid any duties, taxes, and fees due 

17 on the imported merchandise;’’; and 

18 (2) in paragraph (4), by striking ‘‘certifies 

19 that’’ and all that follows and inserting ‘‘certifies 

20 that the transferred merchandise was not and will 

21 not be claimed by the predecessor.’’. 

22 (l) DRAWBACK CERTIFICATES.—Section 313 of the 

23 Tariff Act of 1930 (19 U.S.C. 1313) is amended by strik24 ing subsection (t). 


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1 (m) DRAWBACK FOR RECOVERED MATERIALS.—Sec2 tion 313(x) of the Tariff Act of 1930 (19 U.S.C. 1313(x)) 

3 is amended by striking ‘‘and (c)’’ and inserting ‘‘(c), and 

4 (j)’’. 

5 (n) DEFINITIONS.—Section 313 of the Tariff Act of 

6 1930 (19 U.S.C. 1313) is amended by adding at the end 

7 the following: 

8 ‘‘(z) DEFINITIONS.—In this section: 

9 ‘‘(1) DIRECTLY.—The term ‘directly’ means a 

10 transfer of merchandise or an article from one per11 son to another person without any intermediate 

12 transfer. 

13 ‘‘(2) HTS.—The term ‘HTS’ means the Har14 monized Tariff Schedule of the United States. 

15 ‘‘(3) INDIRECTLY.—The term ‘indirectly’ means 

16 a transfer of merchandise or an article from one per17 son to another person with one or more intermediate 

18 transfers.’’. 

19 (o) RECORDKEEPING.—Section 508(c)(3) of the Tar20 iff Act of 1930 (19 U.S.C. 1508(c)(3)) is amended— 

21 (1) by striking ‘‘3rd’’ and inserting ‘‘5th’’; and 

22 (2) by striking ‘‘payment’’ and inserting ‘‘liq23 uidation’’. 

24 (p) GOVERNMENT ACCOUNTABILITY OFFICE RE25 PORT.— 


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1 (1) IN GENERAL.—Not later than one year 

2 after the issuance of the regulations required by sub3 section (l)(2) of section 313 of the Tariff Act of 

4 1930, as added by subsection (g), the Comptroller 

5 General of the United States shall submit to the 

6 Committee on Finance of the Senate and the Com7 mittee on Ways and Means of the House of Rep8 resentatives a report on the modernization of draw9 back and refunds under section 313 of the Tariff 

10 Act of 1930, as amended by this section. 

11 (2) CONTENTS.—The report required by para12 graph (1) include the following: 

13 (A) An assessment of the modernization of 

14 drawback and refunds under section 313 of the 

15 Tariff Act of 1930, as amended by this section. 

16 (B) A description of drawback claims that 

17 were permissible before the effective date pro18 vided for in subsection (q) that are not permis19 sible after that effective date and an identifica20 tion of industries most affected. 

21 (C) A description of drawback claims that 

22 were not permissible before the effective date 

23 provided for in subsection (q) that are permis24 sible after that effective date and an identifica25 tion of industries most affected. 


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1 (q) EFFECTIVE DATE.— 

2 (1) IN GENERAL.—The amendments made by 

3 this section shall— 

4 (A) take effect on the date of the enact5 ment of this Act; and 

6 (B) except as provided in paragraphs 

7 (2)(B) and (3), apply to drawback claims filed 

8 on or after the date that is 2 years after such 

9 date of enactment. 

10 (2) REPORTING OF OPERABILITY OF AUTO11 MATED COMMERCIAL ENVIRONMENT COMPUTER SYS12 TEM.— 

13 (A) IN GENERAL.—Not later than one year 

14 after the date of the enactment of this Act, and 

15 not later than 2 years after such date of enact16 ment, the Secretary of the Treasury shall sub17 mit to Congress a report on— 

18 (i) the date on which the Automated 

19 Commercial Environment will be ready to 

20 process drawback claims; and 

21 (ii) the date on which the Automated 

22 Export System will be ready to accept 

23 proof of exportation under subsection (i) of 

24 section 313 of the Tariff Act of 1930, as 

25 amended by subsection (d). 


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1 (B) DELAY OF EFFECTIVE DATE.—If the 

2 Secretary indicates in the report required by 

3 subparagraph (A) that the Automated Commer4 cial Environment will not be ready to process 

5 drawback claims by the date that is 2 years 

6 after the date of the enactment of this Act, the 

7 amendments made by this section shall apply to 

8 drawback claims filed on and after the date on 

9 which the Secretary certifies that the Auto10 mated Commercial Environment is ready to 

11 process drawback claims. 

12 (3) TRANSITION RULE.—During the one-year 

13 period beginning on the date that is 2 years after 

14 the date of the enactment of this Act (or, if later, 

15 the effective date provided for in paragraph (2)(B)), 

16 a person may elect to file a claim for drawback 

17 under— 

18 (A) section 313 of the Tariff Act of 1930, 

19 as amended by this section; or 

20 (B) section 313 of the Tariff Act of 1930, 

21 as in effect on the day before the date of the 

22 enactment of this Act. 


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1 SEC. 407. ELIMINATION OF CONSUMPTIVE DEMAND EXCEP2 TION TO PROHIBITION ON IMPORTATION OF 

3 GOODS MADE WITH CONVICT LABOR, 

4 FORCED LABOR, OR INDENTURED LABOR; RE5 PORT. 

6 (a) ELIMINATION OF CONSUMPTIVE DEMAND EX7 CEPTION.— 

8 (1) IN GENERAL.—Section 307 of the Tariff 

9 Act of 1930 (19 U.S.C. 1307) is amended by strik10 ing ‘‘The provisions of this section’’ and all that fol11 lows through ‘‘of the United States.’’. 

12 (2) EFFECTIVE DATE.—The amendment made 

13 by paragraph (1) shall take effect on the date that 

14 is 15 days after the date of the enactment of this 

15 Act. 

16 (b) REPORT REQUIRED.—Not later than 180 days 

17 after the date of the enactment of this Act, and annually 

18 thereafter, the Commissioner of U.S. Customs and Border 

19 Protection shall submit to the Committee on Finance of 

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

21 House of Representatives a report on compliance with sec22 tion 307 of the Tariff Act of 1930 (19 U.S.C. 1307) that 

23 includes the following: 

24 (1) The number of instances in which merchan25 dise was denied entry pursuant to that section durVerDate Sep 11 2014 04:43 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00117 Fmt 6652 Sfmt 6201 E:\BILLS\H1916.IH H1916

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1 ing the 1-year period preceding the submission of 

2 the report. 

3 (2) A description of the merchandise denied 

4 entry pursuant to that section. 

5 (3) Such other information as the Commis6 sioner considers appropriate with respect to moni7 toring and enforcing compliance with that section. 

8 TITLE V—PREVENTION OF EVA9 SION OF ANTIDUMPING AND 

10 COUNTERVAILING DUTY OR11 DERS 

12 Subtitle A—Actions Relating to En13 forcement of Trade Remedy 

14 Laws 

15 SEC. 501. PREVENTION AND INVESTIGATION OF EVASION. 

16 (a) IN GENERAL.—The Tariff Act of 1930 is amend17 ed by inserting after section 516A (19 U.S.C. 1516a) the 

18 following: 

19 ‘‘SEC. 516B. PROCEDURES FOR INVESTIGATING CLAIMS OF 

20 EVASION OF ANTIDUMPING AND COUNTER21 VAILING DUTY ORDERS. 

22 ‘‘(a) DEFINITIONS.—In this section: 

23 ‘‘(1) ADMINISTERING AUTHORITY.—The term 

24 ‘administering authority’ has the meaning given that 

25 term in section 771(1). 


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1 ‘‘(2) APPROPRIATE CONGRESSIONAL COMMIT2 TEES.—The term ‘appropriate congressional com3 mittees’ means— 

4 ‘‘(A) the Committee on Finance and the 

5 Committee on Appropriations of the Senate; 

6 and 

7 ‘‘(B) the Committee on Ways and Means 

8 and the Committee on Appropriations of the 

9 House of Representatives. 

10 ‘‘(3) COMMISSIONER.—The term ‘Commis11 sioner’ means the Commissioner responsible for U.S. 

12 Customs and Border Protection. 

13 ‘‘(4) COVERED MERCHANDISE.—The term ‘cov14 ered merchandise’ means merchandise that is subject 

15 to— 

16 ‘‘(A) a countervailing duty order issued 

17 under section 706 of the Tariff Act of 1930; 

18 ‘‘(B) an antidumping duty order issued 

19 under section 736 of the Tariff Act of 1930; or 

20 ‘‘(C) a finding issued under the Anti21 dumping Act, 1921. 

22 ‘‘(5) ELIGIBLE SMALL BUSINESS.— 

23 ‘‘(A) IN GENERAL.—The term ‘eligible 

24 small business’ means any business concern 

25 which, in the Commissioner’s judgment, due to 


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1 its small size, has neither adequate internal re2 sources nor financial ability to obtain qualified 

3 outside assistance in preparing and submitting 

4 for consideration allegations of evasion. 

5 ‘‘(B) NON-REVIEWABILITY.—Any agency 

6 decision regarding whether a business concern 

7 is an eligible small business for purposes of sec8 tion 311(b)(3) is not reviewable by any other 

9 agency or by any court. 

10 ‘‘(6) ENTER; ENTRY.—The terms ‘enter’ and 

11 ‘entry’ refer to the entry, or withdrawal from ware12 house for consumption, in the customs territory of 

13 the United States. 

14 ‘‘(7) EVADE; EVASION.—The terms ‘evade’ and 

15 ‘evasion’ refer to entering covered merchandise into 

16 the customs territory of the United States by means 

17 of any document or electronically transmitted data 

18 or information, written or oral statement, or act that 

19 is material and false, or any omission that is mate20 rial, and that results in any cash deposit or other se21 curity or any amount of applicable antidumping or 

22 countervailing duties being reduced or not being ap23 plied with respect to the merchandise. 

24 ‘‘(8) INTERESTED PARTY.—The term ‘inter25 ested party’ has the meaning given the term in secVerDate Sep 11 2014 04:43 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00120 Fmt 6652 Sfmt 6201 E:\BILLS\H1916.IH H1916

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1 tion 771(9) (other than subparagraph (A) or (B) of 

2 such section). 

3 ‘‘(9) SECRETARY.—The term ‘Secretary’ means 

4 the Secretary of the Treasury. 

5 ‘‘(10) TRADE REMEDY LAWS.—The term ‘trade 

6 remedy laws’ means title VII of the Tariff Act of 

7 1930. 

8 ‘‘(b) TRADE REMEDY LAW ENFORCEMENT DIVI9 SION.— 

10 ‘‘(1) ESTABLISHMENT.— 

11 ‘‘(A) IN GENERAL.—The Secretary of 

12 Homeland Security shall establish and maintain 

13 within the Office of International Trade of U.S. 

14 Customs and Border Protection, established 

15 under section 2(d) of the Act of March 3, 1927 

16 (44 Stat. 1381, chapter 348; 19 U.S.C. 

17 2072(d)), a Trade Remedy Law Enforcement 

18 Division. 

19 ‘‘(B) COMPOSITION.—The Trade Law 

20 Remedy Enforcement Division shall be com21 posed of— 

22 ‘‘(i) headquarters personnel led by a 

23 Director, who shall report to the Assistant 

24 Commissioner of the Office of Inter25 national Trade; and 


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1 ‘‘(ii) a National Targeting and Anal2 ysis Group dedicated to preventing and 

3 countering evasion. 

4 ‘‘(C) DUTIES.—The Trade Remedy Law 

5 Enforcement Division shall be dedicated— 

6 ‘‘(i) to the development and adminis7 tration of policies to prevent and counter 

8 evasion; 

9 ‘‘(ii) to direct enforcement and com10 pliance assessment activities concerning 

11 evasion; 

12 ‘‘(iii) to the development and conduct 

13 of commercial risk assessment targeting 

14 with respect to cargo destined for the 

15 United States in accordance with para16 graph (3); 

17 ‘‘(iv) to issuing Trade Alerts described 

18 in paragraph (4); and 

19 ‘‘(v) to the development of policies for 

20 the application of single entry and contin21 uous bonds for entries of covered merchan22 dise to sufficiently protect the collection of 

23 antidumping and countervailing duties 

24 commensurate with the level of risk of non25 collection. 


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1 ‘‘(2) DUTIES OF DIRECTOR.—The duties of the 

2 Director of the Trade Remedy Law Enforcement Di3 vision shall include— 

4 ‘‘(A) directing the trade enforcement and 

5 compliance assessment activities of U.S. Cus6 toms and Border Protection that concern eva7 sion; 

8 ‘‘(B) facilitating, promoting, and coordi9 nating cooperation and the exchange of infor10 mation between U.S. Customs and Border Pro11 tection, U.S. Immigration and Customs En12 forcement, and other relevant agencies regard13 ing evasion; 

14 ‘‘(C) notifying on a timely basis the admin15 istering authority (as defined in section 771(1)) 

16 and the Commission (as defined in section 

17 771(2)) of any finding, determination, civil ac18 tion, or criminal action taken by U.S. Customs 

19 and Border Protection or other Federal agency 

20 regarding evasion; 

21 ‘‘(D) serving as the primary liaison be22 tween U.S. Customs and Border Protection and 

23 the public regarding United States Government 

24 activities concerning evasion, including— 


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1 ‘‘(i) establish and administer the pro2 cedures described in subsection (c); 

3 ‘‘(ii) upon request, provide technical 

4 assistance and advice to eligible small busi5 nesses to enable such businesses to prepare 

6 and submit allegations of evasion; and 

7 ‘‘(iii) regularly consult with the public, 

8 the Commercial Customs Operations Advi9 sory Committee, the Trade Support Net10 work, and any other relevant parties and 

11 organizations regarding the development 

12 and implementation of regulations, inter13 pretations, and policies related to coun14 tering evasion. 

15 ‘‘(3) PREVENTING AND COUNTERING EVASION

16 OF THE TRADE REMEDY LAWS.—In carrying out its 

17 duties with respect to preventing and countering 

18 evasion, the National Targeting and Analysis Group 

19 dedicated to preventing and countering evasion 

20 shall— 

21 ‘‘(A) establish targeted risk assessment 

22 methodologies and standards— 

23 ‘‘(i) for evaluating the risk that cargo 

24 destined for the United States may con25 stitute evading covered merchandise; and 


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1 ‘‘(ii) for issuing, as appropriate, 

2 Trade Alerts described in paragraph (4); 

3 and 

4 ‘‘(B) to the extent practicable and other5 wise authorized by law, use information avail6 able from the Automated Commercial System, 

7 the Automated Commercial Environment com8 puter system, the Automated Targeting System, 

9 the Automated Export System, the Inter10 national Trade Data System, and the Treasury 

11 Enforcement Communications System, and any 

12 successor systems, to administer the methodolo13 gies and standards established under subpara14 graph (A). 

15 ‘‘(4) TRADE ALERTS.—Based upon the applica16 tion of the targeted risk assessment methodologies 

17 and standards established under paragraph (3), the 

18 Director of the Trade Remedy Law Enforcement Di19 vision shall issue Trade Alerts or other such means 

20 of notification to directors of United States ports of 

21 entry directing further inspection, or physical exam22 ination or testing, of specific merchandise to ensure 

23 compliance with the trade remedy laws. 

24 ‘‘(c) PROCEDURES FOR INVESTIGATING ALLEGA25 TIONS OF EVASION.— 


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1 ‘‘(1) INITIATION BY PETITION OR REFERRAL.— 

2 ‘‘(A) IN GENERAL.—Not later than 10 

3 days after the date on which the Commissioner 

4 receives a petition described in subparagraph 

5 (B) or a referral described in subparagraph (C), 

6 the Commissioner shall initiate an investigation 

7 pursuant to this paragraph. 

8 ‘‘(B) PETITION DESCRIBED.—A petition 

9 described in this subparagraph is a petition 

10 that— 

11 ‘‘(i) is filed with the Commissioner by 

12 any party who is an interested party with 

13 respect to covered merchandise; 

14 ‘‘(ii) alleges that a person has entered 

15 covered merchandise into the customs ter16 ritory of the United States through eva17 sion; and 

18 ‘‘(iii) is accompanied by information 

19 reasonably available to the petitioner sup20 porting the allegation. 

21 ‘‘(C) REFERRAL DESCRIBED.—A referral 

22 described in this subparagraph is information 

23 submitted to the Commissioner by any other 

24 Federal agency, including the Department of 

25 Commerce or the United States International 


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1 Trade Commission, indicating that a person has 

2 entered covered merchandise into the customs 

3 territory of the United States through evasion. 

4 ‘‘(2) DETERMINATIONS.— 

5 ‘‘(A) PRELIMINARY DETERMINATION.— 

6 ‘‘(i) IN GENERAL.—Not later than 90 

7 days after the date on which the Commis8 sioner initiates an investigation under 

9 paragraph (1), the Commissioner shall 

10 issue a preliminary determination, based 

11 on information available to the Commis12 sioner at the time of the determination, 

13 with respect to whether there is a reason14 able basis to believe or suspect that the 

15 covered merchandise was entered into the 

16 customs territory of the United States 

17 through evasion. 

18 ‘‘(ii) EXTENSION.—The Commissioner 

19 may extend by not more than 45 days the 

20 time period specified in clause (i) if the 

21 Commissioner determines that sufficient 

22 information to make a preliminary deter23 mination under that clause is not available 

24 within that time period or the inquiry is 

25 unusually complex. 


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1 ‘‘(B) FINAL DETERMINATION.— 

2 ‘‘(i) IN GENERAL.—Not later than 

3 120 days after making a preliminary deter4 mination under subparagraph (A), the 

5 Commissioner shall make a final deter6 mination, based on substantial evidence, 

7 with respect to whether covered merchan8 dise was entered into the customs territory 

9 of the United States through evasion. 

10 ‘‘(ii) EXTENSION.—The Commissioner 

11 may extend by not more than 60 days the 

12 time period specified in clause (i) if the 

13 Commissioner determines that sufficient 

14 information to make a final determination 

15 under that clause is not available within 

16 that time period or the inquiry is unusually 

17 complex. 

18 ‘‘(iii) OPPORTUNITY FOR COMMENT; 

19 HEARING.—After making a preliminary de20 termination under subparagraph (A) and 

21 before issuing a final determination under 

22 this subparagraph with respect to whether 

23 covered merchandise was entered into the 

24 customs territory of the United States 

25 through evasion, the Commissioner shall— 


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1 ‘‘(I) provide any person alleged 

2 to have entered the merchandise into 

3 the customs territory of the United 

4 States through evasion, and any per5 son that is an interested party with 

6 respect to the merchandise, with an 

7 opportunity to be heard; 

8 ‘‘(II) upon request, hold a hear9 ing with respect to whether the cov10 ered merchandise was entered into the 

11 customs territory of the United States 

12 through evasion; and 

13 ‘‘(III) provide an opportunity for 

14 public comment. 

15 ‘‘(C) AUTHORITY TO COLLECT AND VERIFY

16 ADDITIONAL INFORMATION.—In making a pre17 liminary determination under subparagraph (A) 

18 or a final determination under subparagraph 

19 (B), the Commissioner— 

20 ‘‘(i) shall exercise all existing authori21 ties to collect information needed to make 

22 the determination; and 

23 ‘‘(ii) may collect such additional infor24 mation as is necessary to make the deter25 mination through such methods as the 


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1 Commissioner considers appropriate, in2 cluding by— 

3 ‘‘(I) issuing a questionnaire with 

4 respect to covered merchandise to— 

5 ‘‘(aa) a person that filed a 

6 petition under paragraph (1)(B); 

7 ‘‘(bb) a person alleged to 

8 have entered covered merchan9 dise into the customs territory of 

10 the United States through eva11 sion; or 

12 ‘‘(cc) any other person that 

13 is an interested party with re14 spect to the covered merchandise; 

15 or 

16 ‘‘(II) conducting verifications, in17 cluding on-site verifications, of any 

18 relevant information. 

19 ‘‘(D) ADVERSE INFERENCE.— 

20 ‘‘(i) IN GENERAL.—If the Commis21 sioner finds that a person that filed a peti22 tion under paragraph (1)(B), a person al23 leged to have entered covered merchandise 

24 into the customs territory of the United 

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1 ducer or exporter, has failed to cooperate 

2 by not acting to the best of the person’s 

3 ability to comply with a request for infor4 mation, the Commissioner may, in making 

5 a preliminary determination under sub6 paragraph (A) or a final determination 

7 under subparagraph (B), use an inference 

8 that is adverse to the interests of that per9 son in selecting from among the facts oth10 erwise available to determine whether eva11 sion has occurred. 

12 ‘‘(ii) ADVERSE INFERENCE DE13 SCRIBED.—An adverse inference used 

14 under clause (i) may include reliance on in15 formation derived from— 

16 ‘‘(I) the petition, if any, sub17 mitted under paragraph (1)(B) with 

18 respect to the covered merchandise; 

19 ‘‘(II) a determination by the 

20 Commissioner in another investigation 

21 under this section; 

22 ‘‘(III) an investigation or review 

23 by the administering authority under 

24 title VII; or 


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1 ‘‘(IV) any other information 

2 placed on the record. 

3 ‘‘(E) NOTIFICATION AND PUBLICATION.— 

4 Not later than 7 days after making a prelimi5 nary determination under subparagraph (A) or 

6 a final determination under subparagraph (B), 

7 the Commissioner shall— 

8 ‘‘(i) provide notification of the deter9 mination to— 

10 ‘‘(I) the administering authority; 

11 and 

12 ‘‘(II) the person that submitted 

13 the petition under paragraph (1)(B) 

14 or the Federal agency that submitted 

15 the referral under paragraph (1)(C); 

16 and 

17 ‘‘(ii) provide the determination for 

18 publication in the Federal Register. 

19 ‘‘(3) BUSINESS PROPRIETARY INFORMATION.— 

20 ‘‘(A) ESTABLISHMENT OF PROCEDURES.— 

21 For each investigation initiated under para22 graph (1), the Commissioner shall establish 

23 procedures for the submission of business pro24 prietary information under an administrative 

25 protective order that— 


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1 ‘‘(i) protects against public disclosure 

2 of such information; and 

3 ‘‘(ii) for purposes of submitting com4 ments to the Commissioner, provides lim5 ited access to such information for— 

6 ‘‘(I) the person that submitted 

7 the petition under paragraph (1)(B) 

8 or the Federal agency that submitted 

9 the referral under paragraph (1)(C); 

10 and 

11 ‘‘(II) the person alleged to have 

12 entered covered merchandise into the 

13 customs territory of the United States 

14 through evasion. 

15 ‘‘(B) ADMINISTRATION IN ACCORDANCE

16 WITH OTHER PROCEDURES.—The procedures 

17 established under subparagraph (A) shall be ad18 ministered, to the maximum extent practicable, 

19 in accordance with administrative protective 

20 order procedures under section 777 by the ad21 ministering authority. 

22 ‘‘(C) DISCLOSURE OF BUSINESS PROPRI23 ETARY INFORMATION.—The Commissioner 

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1 ness proprietary information presented to, or 

2 obtained by, the Commissioner during an inves3 tigation available to the persons specified in 

4 subparagraph (A)(ii) under an administrative 

5 protective order, regardless of when such infor6 mation is submitted during an investigation. 

7 ‘‘(4) REFERRALS TO OTHER FEDERAL AGEN8 CIES.— 

9 ‘‘(A) AFTER PRELIMINARY DETERMINA10 TION.—Notwithstanding section 777 and sub11 ject to subparagraph (C), when the Commis12 sioner makes an affirmative preliminary deter13 mination under paragraph (2)(A), the Commis14 sioner shall, at the request of the head of an15 other Federal agency, transmit the administra16 tive record to the head of that agency. 

17 ‘‘(B) AFTER FINAL DETERMINATION.— 

18 Notwithstanding section 777 and subject to 

19 subparagraph (C), when the Commissioner 

20 makes an affirmative final determination under 

21 paragraph (2)(B), the Commissioner shall, at 

22 the request of the head of another Federal 

23 agency, transmit the complete administrative 

24 record to the head of that agency. 


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1 ‘‘(C) PROTECTIVE ORDERS.—Before trans2 mitting an administrative record to the head of 

3 another Federal agency under subparagraph 

4 (A) or (B), the Commissioner shall verify that 

5 the other agency has in effect with respect to 

6 the administrative record a protective order 

7 that provides the same or a similar level of pro8 tection for the information in the administrative 

9 record as the protective order in effect with re10 spect to such information under this subsection. 

11 ‘‘(d) EFFECT OF DETERMINATIONS.— 

12 ‘‘(1) EFFECT OF AFFIRMATIVE PRELIMINARY

13 DETERMINATION.—If the Commissioner makes a 

14 preliminary determination in accordance with sub15 section (c)(2)(A) that there is a reasonable basis to 

16 believe or suspect that covered merchandise was en17 tered into the customs territory of the United States 

18 through evasion, the Commissioner shall— 

19 ‘‘(A) suspend the liquidation of each unliq20 uidated entry of the covered merchandise that 

21 is subject to the preliminary determination and 

22 that entered on or after the date of the initi23 ation of the investigation under paragraph (1) 

24 and, pursuant to the Commissioner’s authority 

25 under section 504(b), extend liquidation of each 


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1 unliquidated entry of the covered merchandise 

2 that is subject to the preliminary determination 

3 and that entered prior to the date of the initi4 ation of the investigation under paragraph (1); 

5 ‘‘(B) review and reassess the amount of 

6 bond or other security the importer is required 

7 to post for each entry of merchandise described 

8 in subparagraph (A); 

9 ‘‘(C) require the posting of a cash deposit 

10 with respect to each entry of merchandise de11 scribed in subparagraph (A); and 

12 ‘‘(D) take such other measures as the 

13 Commissioner determines appropriate to ensure 

14 the collection of any duties that may be owed 

15 with respect to merchandise described in sub16 paragraph (A) as a result of a final determina17 tion under subsection (c)(2)(B). 

18 ‘‘(2) EFFECT OF NEGATIVE PRELIMINARY DE19 TERMINATION.—If the Commissioner makes a pre20 liminary determination in accordance with sub21 section (c)(2)(A) that there is not a reasonable basis 

22 to believe or suspect that covered merchandise was 

23 entered into the customs territory of the United 

24 States through evasion, the Commissioner shall con25 tinue the investigation and notify the administering 


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1 authority pending a final determination under sub2 section (c)(2)(B). 

3 ‘‘(3) EFFECT OF AFFIRMATIVE FINAL DETER4 MINATION.—If the Commissioner makes a final de5 termination in accordance with subsection (c)(2)(B) 

6 that covered merchandise was entered into the cus7 toms territory of the United States through evasion, 

8 the Commissioner shall— 

9 ‘‘(A) suspend or continue to suspend, as 

10 the case may be, the liquidation of each entry 

11 of the covered merchandise that is subject to 

12 the determination and that enters on or after 

13 the date of the determination and, pursuant to 

14 the Commissioner’s authority under section 

15 504(b), extend or continue to extend, as the 

16 case may be, the liquidation of each entry of 

17 the covered merchandise that is subject to the 

18 determination and that entered prior to the 

19 date of the determination; 

20 ‘‘(B) notify the administering authority of 

21 the determination and request that the admin22 istering authority— 

23 ‘‘(i) identify the applicable anti24 dumping or countervailing duty assessment 

25 rate for the entries for which liquidation is 


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1 suspended under paragraph (1)(A) or sub2 paragraph (A) of this paragraph; or 

3 ‘‘(ii) if no such assessment rates are 

4 available at the time, identify the applica5 ble cash deposit rate to be applied to the 

6 entries described in subparagraph (A), 

7 with the applicable antidumping or coun8 tervailing duty assessment rates to be pro9 vided as soon as such rates become avail10 able; 

11 ‘‘(C) require the posting of cash deposits 

12 and assess duties on each entry of merchandise 

13 described in subparagraph (A) in accordance 

14 with the instructions received from the admin15 istering authority under paragraph (5); 

16 ‘‘(D) review and reassess the amount of 

17 bond or other security the importer is required 

18 to post for merchandise described in subpara19 graph (A) to ensure the protection of revenue 

20 and compliance with the law; and 

21 ‘‘(E) take such additional enforcement 

22 measures as the Commissioner determines ap23 propriate, such as— 

24 ‘‘(i) initiating proceedings under sec25 tion 592 or 596; 


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1 ‘‘(ii) implementing, in consultation 

2 with the relevant Federal agencies, rule 

3 sets or modifications to rules sets for iden4 tifying, particularly through the Auto5 mated Targeting System and the Auto6 mated Commercial Environment, import7 ers, other parties, and merchandise that 

8 may be associated with evasion; 

9 ‘‘(iii) requiring, with respect to mer10 chandise for which the importer has re11 peatedly provided incomplete or erroneous 

12 entry summary information in connection 

13 with determinations of evasion, the im14 porter to submit entry summary docu15 mentation and to deposit estimated duties 

16 at the time of entry; 

17 ‘‘(iv) referring the record in whole or 

18 in part to U.S. Immigration and Customs 

19 Enforcement for civil or criminal investiga20 tion; and 

21 ‘‘(v) transmitting the administrative 

22 record to the administering authority for 

23 further appropriate proceedings. 

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1 mination in accordance with subsection (c)(2)(B) 

2 that covered merchandise was not entered into the 

3 customs territory of the United States through eva4 sion, the Commissioner shall terminate the suspen5 sion of liquidation pursuant to paragraph (1)(A) and 

6 refund any cash deposits collected pursuant to para7 graph (1)(C) that are in excess of the cash deposit 

8 rate that would otherwise have been applicable the 

9 merchandise. 

10 ‘‘(5) COOPERATION OF ADMINISTERING AU11 THORITY.— 

12 ‘‘(A) IN GENERAL.—Upon receiving a noti13 fication from the Commissioner under para14 graph (3)(B), the administering authority shall 

15 promptly provide to the Commissioner the ap16 plicable cash deposit rates and antidumping or 

17 countervailing duty assessment rates and any 

18 necessary liquidation instructions. 

19 ‘‘(B) SPECIAL RULE FOR CASES IN WHICH

20 THE PRODUCER OR EXPORTER IS UNKNOWN.— 

21 If the Commissioner and administering author22 ity are unable to determine the producer or ex23 porter of the merchandise with respect to which 

24 a notification is made under paragraph (3)(B), 

25 the administering authority shall identify, as 


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1 the applicable cash deposit rate or antidumping 

2 or countervailing duty assessment rate, the cash 

3 deposit or duty (as the case may be) in the 

4 highest amount applicable to any producer or 

5 exporter, including the ‘all-others’ rate of the 

6 merchandise subject to an antidumping order or 

7 countervailing duty order under section 736 or 

8 706, respectively, or a finding issued under the 

9 Antidumping Act, 1921, or any administrative 

10 review conducted under section 751. 

11 ‘‘(e) SPECIAL RULES.— 

12 ‘‘(1) EFFECT ON OTHER AUTHORITIES.—Nei13 ther the initiation of an investigation under sub14 section (c)(1) nor a preliminary determination or a 

15 final determination under subsection (c)(2) shall af16 fect the authority of the Commissioner— 

17 ‘‘(A) to pursue such other enforcement 

18 measures with respect to the evasion of anti19 dumping or countervailing duties as the Com20 missioner determines necessary, including en21 forcement measures described in clauses (i) 

22 through (iv) of subsection (d)(3)(E); or 

23 ‘‘(B) to assess any penalties or collect any 

24 applicable duties, taxes, and fees, including pur25 suant to section 592. 


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1 ‘‘(2) EFFECT OF DETERMINATIONS ON FRAUD

2 ACTIONS.—Neither a preliminary determination nor 

3 a final determination under subsection (c)(2) shall 

4 be determinative in a proceeding under section 592. 

5 ‘‘(3) NEGLIGENCE OR INTENT.—The Commis6 sioner shall investigate and make a preliminary de7 termination or a final determination under this sec8 tion with respect to whether a person has entered 

9 covered merchandise into the customs territory of 

10 the United States through evasion without regard to 

11 whether the person— 

12 ‘‘(A) intended to violate an antidumping 

13 duty order or countervailing duty order under 

14 section 736 or 706, respectively, or a finding 

15 issued under the Antidumping Act, 1921; or 

16 ‘‘(B) exercised reasonable care with respect 

17 to avoiding a violation of such an order or find18 ing.’’. 

19 (b) TECHNICAL AMENDMENT.—Clause (ii) of section 

20 777(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 

21 1677f(b)(1)(A)) is amended to read as follows: 

22 ‘‘(ii) to an officer or employee of U.S. 

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1 tion regarding fraud under this title or 

2 claims of evasion under section 516B.’’. 

3 (c) JUDICIAL REVIEW.—Section 516A(a)(2) of the 

4 Tariff Act of 1930 (19 U.S.C. 1516a(a)(2)) is amended— 

5 (1) in subparagraph (A)— 

6 (A) in clause (i)(III), by striking ‘‘or’’ at 

7 the end; 

8 (B) in clause (ii), by adding ‘‘or’’ at the 

9 end; and 

10 (C) by inserting after clause (ii) the fol11 lowing: 

12 ‘‘(iii) the date of publication in the 

13 Federal Register of a determination de14 scribed in clause (ix) of subparagraph 

15 (B),’’; and 

16 (2) in subparagraph (B), by adding at the end 

17 the following new clause: 

18 ‘‘(ix) A determination by the Commis19 sioner responsible for U.S. Customs and 

20 Border Protection under section 516B that 

21 merchandise has been entered into the cus22 toms territory of the United States 

23 through evasion.’’. 

24 (d) FINALITY OF DETERMINATIONS.—Section 514(b) 

25 of the Tariff Act of 1930 (19 U.S.C. 1514(b)) is amended 


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1 by striking ‘‘section 303’’ and all that follows through 

2 ‘‘which are reviewable’’ and inserting ‘‘section 516B or 

3 title VII that are reviewable’’. 

4 SEC. 502. APPLICATION TO CANADA AND MEXICO. 

5 Pursuant to article 1902 of the North American Free 

6 Trade Agreement and section 408 of the North American 

7 Free Trade Agreement Implementation Act (19 U.S.C. 

8 3438), the amendments made by this title shall apply with 

9 respect to goods from Canada and Mexico. 

10 Subtitle B—Other Matters 

11 SEC. 511. DEFINITIONS. 

12 In this subtitle, the terms ‘‘appropriate congressional 

13 committees’’, ‘‘Commissioner’’, ‘‘covered merchandise’’, 

14 ‘‘enter’’ and ‘‘entry’’, and ‘‘evade’’ and ‘‘evasion’’ have the 

15 meanings given those terms in section 516B(a) of the Tar16 iff Act of 1930 (as added by section 501(a) of this Act). 

17 SEC. 512. ALLOCATION AND TRAINING OF PERSONNEL. 

18 (a) REASSIGNMENT AND ALLOCATION.—The Com19 missioner shall, to the maximum extent possible, ensure 

20 that U.S. Customs and Border Protection— 

21 (1) employs sufficient personnel who have ex22 pertise in, and responsibility for, preventing and in23 vestigating the entry of covered merchandise into the 

24 customs territory of the United States through eva25 sion; 


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1 (2) on the basis of risk assessment metrics, as2 signs sufficient personnel with primary responsibility 

3 for preventing the entry of covered merchandise into 

4 the customs territory of the United States through 

5 evasion to the ports of entry in the United States at 

6 which the Commissioner determines potential eva7 sion presents the most substantial threats to the rev8 enue of the United States; and 

9 (3) provides adequate training to relevant per10 sonnel to increase expertise and effectiveness in the 

11 prevention and investigation of entries of covered 

12 merchandise into the customs territory of the United 

13 States through evasion. 

14 (b) COMMERCIAL ENFORCEMENT OFFICERS.—Not 

15 later than 30 days after the enactment of this Act, the 

16 Secretary of Homeland Security, the Commissioner, and 

17 the Assistant Secretary for U.S. Immigration and Cus18 toms Enforcement shall assess and properly allocate the 

19 resources of U.S. Customs and Border Protection and 

20 U.S. Immigration and Customs Enforcement— 

21 (1) to effectively implement the provisions of, 

22 and amendments made by, this Act; and 

23 (2) to improve efforts to investigate and combat 

24 evasion. 


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1 SEC. 513. REGULATIONS. 

2 (a) IN GENERAL.—Not later than 240 days after the 

3 date of the enactment of this Act, the Commissioner shall 

4 issue regulations to carry out this title and the amend5 ments made by this title. 

6 (b) COOPERATION BETWEEN U.S. CUSTOMS AND

7 BORDER PROTECTION, U.S. IMMIGRATION AND CUSTOMS

8 ENFORCEMENT, AND DEPARTMENT OF COMMERCE.—Not 

9 later than 240 days after the date of the enactment of 

10 this Act, the Commissioner, the Assistant Secretary for 

11 U.S. Immigration and Customs Enforcement, and the Sec12 retary of Commerce shall establish procedures to ensure 

13 maximum cooperation and communication between U.S. 

14 Customs and Border Protection, U.S. Immigration and 

15 Customs Enforcement, and the Department of Commerce 

16 in order to quickly, efficiently, and accurately investigate 

17 allegations of evasion under section 516B of the Tariff 

18 Act of 1930 (as added by section 501(a) of this Act). 

19 SEC. 514. ANNUAL REPORT ON PREVENTION OF EVASION 

20 OF ANTIDUMPING AND COUNTERVAILING 

21 DUTY ORDERS. 

22 (a) IN GENERAL.—Not later than February 28 of 

23 each year, beginning in 2016, the Commissioner, in con24 sultation with the Secretary of Commerce and the Assist25 ant Secretary for U.S. Immigration and Customs Enforce26 ment, shall submit to the appropriate congressional comVerDate Sep 11 2014 04:43 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00146 Fmt 6652 Sfmt 6201 E:\BILLS\H1916.IH H1916

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1 mittees a report on the efforts being taken to prevent and 

2 investigate evasion. 

3 (b) CONTENTS.—Each report required under sub4 section (a) shall include— 

5 (1) for the calendar year preceding the submis6 sion of the report— 

7 (A) a summary of the efforts of U.S. Cus8 toms and Border Protection to prevent and in9 vestigate evasion; 

10 (B) the number of allegations of evasion 

11 received and the number of allegations of eva12 sion resulting in investigations by U.S. Customs 

13 and Border Protection or any other agency; 

14 (C) a summary of the completed investiga15 tions of evasion, including the number and na16 ture of the investigations initiated, conducted, 

17 or completed, as well as their resolution; 

18 (D) with respect to investigations that lead 

19 to lead to issuance of a penalty notice, the pen20 alty amounts; 

21 (E) the amounts of antidumping and coun22 tervailing duties collected as a result of any in23 vestigations or other actions by U.S. Customs 

24 and Border Protection or any other agency; 


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1 (F) a description of the allocation of per2 sonnel and other resources of U.S. Customs and 

3 Border Protection and U.S. Immigration and 

4 Customs Enforcement to prevent and investiga5 tion evasion, including any assessments con6 ducted regarding the allocation of such per7 sonnel and resources; and 

8 (G) a description of training conducted to 

9 increase expertise and effectiveness in the pre10 vention and investigation of evasion; and 

11 (2) a description of U.S. Customs and Border 

12 Protection processes and procedures to prevent and 

13 investigate evasion, including— 

14 (A) the specific guidelines, policies, and 

15 practices used by U.S. Customs and Border 

16 Protection to ensure that allegations of evasion 

17 are promptly evaluated and acted upon in a 

18 timely manner; 

19 (B) an evaluation of the efficacy of such 

20 existing guidelines, policies, and practices; 

21 (C) identification of any changes since the 

22 last report that have materially improved or re23 duced the effectiveness of U.S. Customs and 

24 Border Protection to prevent and investigate 

25 evasion; 


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1 (D) a description of the development and 

2 implementation of policies for the application of 

3 single entry and continuous bonds for entries of 

4 covered merchandise to sufficiently protect the 

5 collection of antidumping and countervailing 

6 duties commensurate with the level of risk on 

7 noncollection; 

8 (E) the processes and procedures for in9 creased cooperation and information sharing 

10 with the Department of Commerce, U.S. Immi11 gration and Customs Enforcement, and any 

12 other relevant Federal agencies to prevent and 

13 investigate evasion; and 

14 (F) identification of any recommended pol15 icy changes of other Federal agencies or legisla16 tive changes to improve the effectiveness of 

17 U.S. Customs and Border Protection to prevent 

18 and investigate evasion. 

19 SEC. 515. GOVERNMENT ACCOUNTABILITY OFFICE REPORT 

20 ON RELIQUIDATION AUTHORITY. 

21 Not later than 60 days after the date of the enact22 ment of this Act, the Comptroller General of the United 

23 States shall submit to the appropriate congressional com24 mittees, and make available to the public, a report esti25 mating the amount of duties that could not be collected 


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1 on covered merchandise that entered the customs territory 

2 of the United States through evasion during fiscal years 

3 2014 and 2015 because the Commissioner did not have 

4 the authority to reliquidate the entries of such merchan5 dise. 

6 SEC. 516. ADDRESSING CIRCUMVENTION BY NEW SHIP7 PERS. 

8 Section 751(a)(2)(B) of the Tariff Act of 1930 (19 

9 U.S.C. 1675(a)(2)(B)) is amended— 

10 (1) by striking clause (iii); 

11 (2) by redesignating clause (iv) as clause (iii); 

12 and 

13 (3) inserting after clause (iii), as redesignated 

14 by paragraph (2) of this section, the following: 

15 ‘‘(iv) Any weighted average dumping 

16 margin or individual countervailing duty 

17 rate determined for an exporter or pro18 ducer in a review conducted under clause 

19 (i) shall be based solely on the bona fide 

20 United States sales of an exporter or pro21 ducer, as the case may be, made during 

22 the period covered by the review. In deter23 mining whether the United States sales of 

24 an exporter or producer made during the 

25 period covered by the review were bona 


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1 fide, the administering authority shall con2 sider, depending on the circumstances sur3 rounding such sales— 

4 ‘‘(I) the prices of such sales; 

5 ‘‘(II) whether such sales were 

6 made in commercial quantities; 

7 ‘‘(III) the timing of such sales; 

8 ‘‘(IV) the expenses arising from 

9 such sales; 

10 ‘‘(V) whether the subject mer11 chandise involved in such sales were 

12 resold in the United States at a prof13 it; 

14 ‘‘(VI) whether such sales were 

15 made on an arms-length basis; and 

16 ‘‘(VII) any other factor the ad17 ministering authority determines to be 

18 relevant as to whether such sales are, 

19 or are not, likely to be typical of those 

20 the exporter or producer will make 

21 after completion of the review.’’. 

Æ 


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