IB 

Union Calendar No. 80 

114TH CONGRESS 

1ST SESSION H. R. 1907 

[Report No. 114–114, Part I] 

To reauthorize trade facilitation and trade enforcement functions and 

activities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 21, 2015 

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

on Ways and Means, and in addition to the Committees on Homeland 

Security, Foreign Affairs, Financial Services, and the Judiciary, 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 

MAY 14, 2015 

Additional sponsors: Mr. BRADY of Texas and Mr. BOUSTANY

MAY 14, 2015 

Reported from the Committee on Ways and Means with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

MAY 14, 2015 

The Committees on Homeland Security, Foreign Affairs, Financial Services, 

and the Judiciary discharged; committed to the Committee of the Whole 

House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on April 21, 2015] 


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A BILL 

To reauthorize trade facilitation and trade enforcement 

functions and activities, and for other purposes. 


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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Trade Facilitation and Trade Enforcement 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 

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. Establishment of new importer program. 

Sec. 116. Customs broker identification of importers. 

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

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. 


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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—PREVENTION OF EVASION OF ANTIDUMPING AND 

COUNTERVAILING DUTY ORDERS 

Sec. 401. Short title. 

Sec. 402. Definitions. 

Sec. 403. Application to Canada and Mexico. 

Subtitle A—Actions Relating to Enforcement of Trade Remedy Laws 

Sec. 411. Trade remedy law enforcement division. 

Sec. 412. Collection of information on evasion of trade remedy laws. 

Sec. 413. Access to information. 

Sec. 414. Cooperation with foreign countries on preventing evasion of trade remedy laws. 

Sec. 415. Trade negotiating objectives. 

Subtitle B—Investigation of Evasion of Trade Remedy Laws 

Sec. 421. Procedures for investigation of evasion of antidumping and countervailing duty orders. 

Sec. 422. Government Accountability Office report. 

Subtitle C—Other Matters 

Sec. 431. Allocation and training of personnel. 

Sec. 432. Annual report on prevention of evasion of antidumping and countervailing duty orders. 

Sec. 433. Addressing circumvention by new shippers. 

TITLE V—ADDITIONAL ENFORCEMENT PROVISIONS 

Sec. 501. Trade enforcement priorities. 

Sec. 502. Exercise of WTO authorization to suspend concessions or other obligations under trade agreements. 

Sec. 503. Trade monitoring. 

TITLE VI—MISCELLANEOUS PROVISIONS 

Sec. 601. De minimis value. 

Sec. 602. Consultation on trade and customs revenue functions. 

Sec. 603. Penalties for customs brokers. 

Sec. 604. Amendments to chapter 98 of the Harmonized Tariff Schedule of the 

United States. 

Sec. 605. Exemption from duty of residue of bulk cargo contained in instruments 

of international traffic previously exported from the United 

States. 

Sec. 606. Drawback and refunds. 


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Sec. 607. Office of the United States Trade Representative. 

Sec. 608. United States-Israel Trade and Commercial Enhancement. 

Sec. 609. Elimination of consumptive demand exception to prohibition on importation of goods made with convict labor, forced labor, or indentured labor; report. 

Sec. 610. Customs user fees. 

Sec. 611. Report on certain U.S. Customs and Border Protection agreements. 

Sec. 612. Certain interest to be included in distributions under Continued Dumping and Subsidy Offset Act of 2000 . 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) AUTOMATED COMMERCIAL ENVIRONMENT.— 

4 The term ‘‘Automated Commercial Environment’’ 

5 means the Automated Commercial Environment com6 puter system authorized under section 13031(f)(4) of 

7 the Consolidated Omnibus Budget Reconciliation Act 

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

9 (2) COMMISSIONER.—The term ‘‘Commissioner’’ 

10 means the Commissioner responsible for U.S. Customs 

11 and Border Protection. 

12 (3) CUSTOMS AND TRADE LAWS OF THE UNITED

13 STATES.—The term ‘‘customs and trade laws of the 

14 United States’’ includes the following: 

15 (A) The Tariff Act of 1930 (19 U.S.C. 1202 

16 et seq.). 

17 (B) Section 249 of the Revised Statutes (19 

18 U.S.C. 3). 

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

20 (42 Stat. 1453, chapter 251; 19 U.S.C. 6). 


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

2 1381, chapter 348; 19 U.S.C. 2071 et seq.). 

3 (E) Section 13031 of the Consolidated Om4 nibus Budget Reconciliation Act of 1985 (19 

5 U.S.C. 58c). 

6 (F) Section 251 of the Revised Statutes (19 

7 U.S.C. 66). 

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

9 (46 Stat. 817, chapter 617; 19 U.S.C. 68). 

10 (H) The Foreign Trade Zones Act (19 

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

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

13 (36 Stat. 965, chapter 191; 19 U.S.C. 198). 

14 (J) The Trade Act of 1974 (19 U.S.C. 2102 

15 et seq.). 

16 (K) The Trade Agreements Act of 1979 (19 

17 U.S.C. 2501 et seq.). 

18 (L) The North American Free Trade Agree19 ment Implementation Act (19 U.S.C. 3301 et 

20 seq.). 

21 (M) The Uruguay Round Agreements Act 

22 (19 U.S.C. 3501 et seq.). 

23 (N) The Caribbean Basin Economic Recov24 ery Act (19 U.S.C. 2701 et seq.). 


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1 (O) The Andean Trade Preference Act (19 

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

3 (P) The African Growth and Opportunity 

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

5 (Q) The Customs Enforcement Act of 1986 

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

7 (R) The Customs and Trade Act of 1990 

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

9 (S) The Customs Procedural Reform and 

10 Simplification Act of 1978 (Public Law 95–410; 

11 92 Stat. 888). 

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

13 107–210; 116 Stat. 933). 

14 (U) The Convention on Cultural Property 

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

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

17 374, chapter 266; 19 U.S.C. 2077 et seq.). 

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

19 1263, chapter 566). 

20 (X) Any other provision of law imple21 menting a trade agreement. 

22 (Y) Any other provision of law vesting cus23 toms revenue functions in the Secretary of the 

24 Treasury. 


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1 (Z) Any other provision of law relating to 

2 trade facilitation or trade enforcement that is 

3 administered by U.S. Customs and Border Pro4 tection on behalf of any Federal agency that is 

5 required to participate in the International 

6 Trade Data System. 

7 (AA) Any other provision of customs or 

8 trade law administered by U.S. Customs and 

9 Border Protection or U.S. Immigration and Cus10 toms Enforcement. 

11 (4) PRIVATE SECTOR ENTITY.—The term ‘‘pri12 vate sector entity’’ means— 

13 (A) an importer; 

14 (B) an exporter; 

15 (C) a forwarder; 

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

17 (E) a contract logistics provider; 

18 (F) a customs broker; or 

19 (G) any other person (other than an em20 ployee of a government) affected by the imple21 mentation of the customs and trade laws of the 

22 United States. 

23 (5) TRADE ENFORCEMENT.—The term ‘‘trade en24 forcement’’ means the enforcement of the customs and 

25 trade laws of the United States. 


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1 (6) TRADE FACILITATION.—The term ‘‘trade fa2 cilitation’’ refers to policies and activities of U.S. 

3 Customs and Border Protection with respect to facili4 tating the movement of merchandise into and out of 

5 the United States in a manner that complies with the 

6 customs and trade laws of the United States. 

7 TITLE I—TRADE FACILITATION 

8 AND TRADE ENFORCEMENT 

9 SEC. 101. IMPROVING PARTNERSHIP PROGRAMS. 

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

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

12 Customs and Border Protection, the Commissioner shall en13 sure that partnership programs of U.S. Customs and Bor14 der Protection established before the date of the enactment 

15 of this Act, such as the Customs–Trade Partnership Against 

16 Terrorism established under subtitle B of title II of the Se17 curity and Accountability for Every Port Act of 2006 (6 

18 U.S.C. 961 et seq.), and partnership programs of U.S. Cus19 toms and Border Protection established after such date of 

20 enactment, provide trade benefits to private sector entities 

21 that meet the requirements for participation in those pro22 grams established by the Commissioner under this section. 

23 (b) ELEMENTS.—In developing and operating partner24 ship programs under subsection (a), the Commissioner 

25 shall— 


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1 (1) consult with private sector entities, the pub2 lic, and other Federal agencies when appropriate, to 

3 ensure that participants in those programs receive 

4 commercially significant and measurable trade bene5 fits, including providing pre-clearance of merchandise 

6 for qualified persons that demonstrate the highest lev7 els of compliance with the customs and trade laws of 

8 the United States, regulations of U.S. Customs and 

9 Border Protection, and other requirements the Com10 missioner determines to be necessary; 

11 (2) ensure an integrated and transparent system 

12 of trade benefits and compliance requirements for all 

13 partnership programs of U.S. Customs and Border 

14 Protection; 

15 (3) consider consolidating partnership programs 

16 in situations in which doing so would support the ob17 jectives of such programs, increase participation in 

18 such programs, enhance the trade benefits provided to 

19 participants in such programs, and enhance the allo20 cation of the resources of U.S. Customs and Border 

21 Protection; 

22 (4) coordinate with the Director of U.S. Immi23 gration and Customs Enforcement, and other Federal 

24 agencies with authority to detain and release mer25 chandise entering the United States— 


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1 (A) to ensure coordination in the release of 

2 such merchandise through the Automated Com3 mercial Environment, or its predecessor, and the 

4 International Trade Data System; 

5 (B) to ensure that the partnership programs 

6 of those agencies are compatible with the part7 nership programs of U.S. Customs and Border 

8 Protection; 

9 (C) to develop criteria for authorizing the 

10 release, on an expedited basis, of merchandise for 

11 which documentation is required from one or 

12 more of those agencies to clear or license the mer13 chandise for entry into the United States; and 

14 (D) to create pathways, within and among 

15 the appropriate Federal agencies, for qualified 

16 persons that demonstrate the highest levels of 

17 compliance to receive immediate clearance absent 

18 information that a transaction may pose a na19 tional security or compliance threat; and 

20 (5) ensure that trade benefits are provided to 

21 participants in partnership programs. 

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

23 is 180 days after the date of the enactment of this Act, and 

24 December 31 of each year thereafter, the Commissioner shall 

25 submit to the Committee on Finance of the Senate and the 


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1 Committee on Ways and Means of the House of Representa2 tives a report that— 

3 (1) identifies each partnership program referred 

4 to in subsection (a); 

5 (2) for each such program, identifies— 

6 (A) the requirements for participants in the 

7 program; 

8 (B) the commercially significant and meas9 urable trade benefits provided to participants in 

10 the program; 

11 (C) the number of participants in the pro12 gram; and 

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

14 for participation at multiple tiers, the number of 

15 participants at each such tier; 

16 (3) identifies the number of participants enrolled 

17 in more than one such partnership program; 

18 (4) assesses the effectiveness of each such partner19 ship program in advancing the security, trade en20 forcement, and trade facilitation missions of U.S. 

21 Customs and Border Protection, based on historical 

22 developments, the level of participation in the pro23 gram, and the evolution of benefits provided to par24 ticipants in the program; 


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

2 Border Protection to work with other Federal agencies 

3 with authority to detain and release merchandise en4 tering the United States to ensure that partnership 

5 programs of those agencies are compatible with part6 nership programs of U.S. Customs and Border Pro7 tection; 

8 (6) summarizes criteria developed with those 

9 agencies for authorizing the release, on an expedited 

10 basis, of merchandise for which documentation is re11 quired from one or more of those agencies to clear or 

12 license the merchandise for entry into the United 

13 States; 

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

15 Border Protection to work with private sector entities 

16 and the public to develop and improve partnership 

17 programs referred to in subsection (a); 

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

19 and Border Protection to make private sector entities 

20 aware of the trade benefits available to participants 

21 in such programs; and 

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

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

24 such programs for the 2 years following the submis25 sion of the report. 


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1 SEC. 102. REPORT ON EFFECTIVENESS OF TRADE ENFORCE2 MENT ACTIVITIES. 

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

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

5 of the United States shall submit to the Committee on Fi6 nance of the Senate and the Committee on Ways and Means 

7 of the House of Representatives a report on the effectiveness 

8 of trade enforcement activities of U.S. Customs and Border 

9 Protection. 

10 (b) CONTENTS.—The report required by subsection (a) 

11 shall include— 

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

13 of audits and verifications, targeting, organization, 

14 and training of personnel of U.S. Customs and Bor15 der Protection; and 

16 (2) a description of trade enforcement activities 

17 to address undervaluation, transshipment, legitimacy 

18 of entities making entry, protection of revenues, fraud 

19 prevention and detection, and penalties, including in20 tentional misclassification, inadequate bonding, and 

21 other misrepresentations. 

22 SEC. 103. PRIORITIES AND PERFORMANCE STANDARDS FOR 

23 CUSTOMS MODERNIZATION, TRADE FACILITA24 TION, AND TRADE ENFORCEMENT FUNC25 TIONS AND PROGRAMS. 

26 (a) PRIORITIES AND PERFORMANCE STANDARDS.— 


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1 (1) IN GENERAL.—The Commissioner, in con2 sultation with the Committee on Finance of the Sen3 ate and the Committee on Ways and Means of the 

4 House of Representatives, shall establish priorities 

5 and performance standards to measure the develop6 ment and levels of achievement of the customs mod7 ernization, trade facilitation, and trade enforcement 

8 functions and programs described in subsection (b). 

9 (2) MINIMUM PRIORITIES AND STANDARDS.— 

10 Such priorities and performance standards shall, at 

11 a minimum, include priorities and standards relating 

12 to efficiency, outcome, output, and other types of ap13 plicable measures. 

14 (b) FUNCTIONS AND PROGRAMS DESCRIBED.—The 

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

16 the following: 

17 (1) The Automated Commercial Environment. 

18 (2) Each of the priority trade issues described in 

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

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

21 2072(d)), as added by section 111(a) of this Act. 

22 (3) The Centers of Excellence and Expertise de23 scribed in section 110 of this Act. 


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1 (4) Drawback for exported merchandise under 

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

3 1313), as amended by section 406 of this Act. 

4 (5) Transactions relating to imported merchan5 dise in bond. 

6 (6) Collection of countervailing duties assessed 

7 under subtitle A of title VII of the Tariff Act of 1930 

8 (19 U.S.C. 1671 et seq.) and antidumping duties as9 sessed under subtitle B of title VII of the Tariff Act 

10 of 1930 (19 U.S.C. 1673 et seq.). 

11 (7) The expedited clearance of cargo. 

12 (8) The issuance of regulations and rulings. 

13 (9) The issuance of Regulatory Audit Reports. 

14 (c) CONSULTATIONS AND NOTIFICATION.— 

15 (1) CONSULTATIONS.—The consultations re16 quired by subsection (a)(1) shall occur, at a min17 imum, on an annual basis. 

18 (2) NOTIFICATION.—The Commissioner shall no19 tify the Committee on Finance of the Senate and the 

20 Committee on Ways and Means of the House of Rep21 resentatives of any changes to the priorities referred 

22 to in subsection (a) not later than 30 days before such 

23 changes are to take effect. 


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1 SEC. 104. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS 

2 TO CLASSIFY AND APPRAISE IMPORTED ARTI3 CLES, TO IMPROVE TRADE ENFORCEMENT EF4 FORTS, AND TO OTHERWISE FACILITATE LE5 GITIMATE INTERNATIONAL TRADE. 

6 (a) IN GENERAL.— 

7 (1) ESTABLISHMENT.—The Commissioner and 

8 the Director shall establish and carry out on a fiscal 

9 year basis educational seminars to— 

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

11 and Border Protection personnel to classify and 

12 appraise articles imported into the United States 

13 in accordance with the customs and trade laws 

14 of the United States; 

15 (B) improve the trade enforcement efforts of 

16 U.S. Customs and Border Protection personnel 

17 and U.S. Immigration and Customs Enforce18 ment personnel; and 

19 (C) otherwise improve the ability and effec20 tiveness of U.S. Customs and Border Protection 

21 personnel and U.S. Immigration and Customs 

22 Enforcement personnel to facilitate legitimate 

23 international trade. 

24 (b) CONTENT.— 

25 (1) CLASSIFYING AND APPRAISING IMPORTED AR26 TICLES.—In carrying out subsection (a)(1)(A), the 


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1 Commissioner, the Director, and interested parties in 

2 the private sector selected under subsection (c) shall 

3 provide instruction and related instructional mate4 rials at each educational seminar under this section 

5 to U.S. Customs and Border Protection personnel 

6 and, as appropriate, to U.S. Immigration and Cus7 toms Enforcement personnel on the following: 

8 (A) Conducting a physical inspection of an 

9 article imported into the United States, includ10 ing testing of samples of the article, to determine 

11 if the article is mislabeled in the manifest or 

12 other accompanying documentation. 

13 (B) Reviewing the manifest and other ac14 companying documentation of an article im15 ported into the United States to determine if the 

16 country of origin of the article listed in the 

17 manifest or other accompanying documentation 

18 is accurate. 

19 (C) Customs valuation. 

20 (D) Industry supply chains and other re21 lated matters as determined to be appropriate by 

22 the Commissioner. 

23 (2) TRADE ENFORCEMENT EFFORTS.—In car24 rying out subsection (a)(1)(B), the Commissioner, the 

25 Director, and interested parties in the private sector 


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1 selected under subsection (c) shall provide instruction 

2 and related instructional materials at each edu3 cational seminar under this section to U.S. Customs 

4 and Border Protection personnel and, as appropriate, 

5 to U.S. Immigration and Customs Enforcement per6 sonnel to identify opportunities to enhance enforce7 ment of the following: 

8 (A) Collection of countervailing duties as9 sessed under subtitle A of title VII of the Tariff 

10 Act of 1930 (19 U.S.C. 1671 et seq.) and anti11 dumping duties assessed under subtitle B of title 

12 VII of the Tariff Act of 1930 (19 U.S.C. 1673 et 

13 seq.). 

14 (B) Addressing evasion of duties on imports 

15 of textiles. 

16 (C) Protection of intellectual property 

17 rights. 

18 (D) Enforcement of child labor laws. 

19 (3) APPROVAL OF COMMISSIONER AND DIREC20 TOR.—The instruction and related instructional ma21 terials at each educational seminar under this section 

22 shall be subject to the approval of the Commissioner 

23 and the Director. 

24 (c) SELECTION PROCESS.— 


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1 (1) IN GENERAL.—The Commissioner shall estab2 lish a process to solicit, evaluate, and select interested 

3 parties in the private sector for purposes of assisting 

4 in providing instruction and related instructional 

5 materials described in subsection (b) at each edu6 cational seminar under this section. 

7 (2) CRITERIA.—The Commissioner shall evaluate 

8 and select interested parties in the private sector 

9 under the process established under paragraph (1) 

10 based on— 

11 (A) availability and usefulness; 

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

13 mislabeling or misidentification of origin of im14 ported articles; and 

15 (C) other appropriate criteria established by 

16 the Commissioner. 

17 (3) PUBLIC AVAILABILITY.—The Commissioner 

18 and the Director shall publish in the Federal Register 

19 a detailed description of the process established under 

20 paragraph (1) and the criteria established under 

21 paragraph (2). 

22 (d) SPECIAL RULE FOR ANTIDUMPING AND COUNTER23 VAILING DUTY ORDERS.— 

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

25 due consideration to carrying out an educational 


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1 seminar under this section in whole or in part to im2 prove the ability of U.S. Customs and Border Protec3 tion personnel to enforce a countervailing or anti4 dumping duty order issued under section 706 or 736 

5 of the Tariff Act of 1930 (19 U.S.C. 1671e or 1673e) 

6 upon the request of a petitioner in an action under7 lying such countervailing or antidumping duty order. 

8 (2) INTERESTED PARTY.—A petitioner described 

9 in paragraph (1) shall be treated as an interested 

10 party in the private sector for purposes of the require11 ments of this section. 

12 (e) PERFORMANCE STANDARDS.—The Commissioner 

13 and the Director shall establish performance standards to 

14 measure the development and level of achievement of edu15 cational seminars under this section. 

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

17 Commissioner and the Director shall submit to the Com18 mittee of Finance of the Senate and the Committee of Ways 

19 and Means of the House of Representatives an annual re20 port on the effectiveness of educational seminars under this 

21 section. 

22 (g) DEFINITIONS.—In this section: 

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

24 Director of U.S. Immigration and Customs Enforce25 ment. 


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1 (2) UNITED STATES.—The term ‘‘United States’’ 

2 means the customs territory of the United States, as 

3 defined in General Note 2 to the Harmonized Tariff 

4 Schedule of the United States. 

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

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

7 Protection personnel’’ means import specialists, audi8 tors, and other appropriate employees of the U.S. 

9 Customs and Border Protection. 

10 (4) U.S. IMMIGRATION AND CUSTOMS ENFORCE11 MENT PERSONNEL.—The term ‘‘U.S. Immigrations 

12 and Customs Enforcement personnel’’ means Home13 land Security Investigations Directorate personnel 

14 and other appropriate employees of U.S. Immigra15 tions and Customs Enforcement. 

16 SEC. 105. JOINT STRATEGIC PLAN. 

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

18 date of the enactment of this Act, and every 2 years there19 after, the Commissioner and the Director of U.S. Immigra20 tion and Customs Enforcement shall jointly develop and 

21 submit to the Committee on Finance of the Senate and the 

22 Committee on Ways and Means of the House of Representa23 tives, a joint strategic plan. 

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

25 under this section shall be comprised of a comprehensive 


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1 multi-year plan for trade enforcement and trade facilita2 tion, and shall include— 

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

4 year period preceding the submission of the plan to 

5 improve trade enforcement and trade facilitation, in6 cluding a description and analysis of specific per7 formance measures to evaluate the progress of U.S. 

8 Customs and Border Protection and U.S. Immigra9 tion and Customs Enforcement in meeting each such 

10 responsibility; 

11 (2) a statement of objectives and plans for fur12 ther improving trade enforcement and trade facilita13 tion; 

14 (3) a specific identification of the priority trade 

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

16 2(d) of the Act of March 3, 1927 (44 Stat. 1381, 

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

18 111(a) of this Act, that can be addressed in order to 

19 enhance trade enforcement and trade facilitation, and 

20 a description of strategies and plans for addressing 

21 each such issue; 

22 (4) a description of efforts made to improve con23 sultation and coordination among and within Fed24 eral agencies, and in particular between U.S. Cus25 toms and Border Protection and U.S. Immigration 


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1 and Customs Enforcement, regarding trade enforce2 ment and trade facilitation; 

3 (5) a description of the training that has oc4 curred to date within U.S. Customs and Border Pro5 tection and U.S. Immigration and Customs Enforce6 ment to improve trade enforcement and trade facilita7 tion, including training under section 104 of this Act; 

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

9 World Customs Organization and other international 

10 organizations, in consultation with other Federal 

11 agencies as appropriate, with respect to enhancing 

12 trade enforcement and trade facilitation; 

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

14 Protection organizational benchmarks for optimizing 

15 staffing and wait times at ports of entry; 

16 (8) a specific identification of any domestic or 

17 international best practices that may further improve 

18 trade enforcement and trade facilitation; 

19 (9) any legislative recommendations to further 

20 improve trade enforcement and trade facilitation; and 

21 (10) a description of efforts made to improve 

22 consultation and coordination with the private sector 

23 to enhance trade enforcement and trade facilitation. 

24 (c) CONSULTATIONS.— 


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1 (1) IN GENERAL.—In developing the joint stra2 tegic plan required under this section, the Commis3 sioner and the Director shall consult with— 

4 (A) appropriate officials from the relevant 

5 Federal agencies, including— 

6 (i) the Department of the Treasury; 

7 (ii) the Department of Agriculture; 

8 (iii) the Department of Commerce; 

9 (iv) the Department of Justice; 

10 (v) the Department of the Interior; 

11 (vi) the Department of Health and 

12 Human Services; 

13 (vii) the Food and Drug Administra14 tion; 

15 (viii) the Consumer Product Safety 

16 Commission; and 

17 (ix) the Office of the United States 

18 Trade Representative; and 

19 (B) the Commercial Customs Operations 

20 Advisory Committee established by section 109 of 

21 this Act. 

22 (2) OTHER CONSULTATIONS.—In developing the 

23 joint strategic plan required under this section, the 

24 Commissioner and the Director shall seek to consult 

25 with— 


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1 (A) appropriate officials from relevant for2 eign law enforcement agencies and international 

3 organizations, including the World Customs Or4 ganization; and 

5 (B) interested parties in the private sector. 

6 SEC. 106. AUTOMATED COMMERCIAL ENVIRONMENT. 

7 (a) FUNDING.—Section 13031(f)(4)(B) of the Consoli8 dated Omnibus Budget Reconciliation Act of 1985 (19 

9 U.S.C. 58c(f)(4)(B)) is amended— 

10 (1) by striking ‘‘2003 through 2005’’ and insert11 ing ‘‘2016 through 2018’’; 

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

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

14 $153,736,000’’; and 

15 (3) by striking ‘‘for the development’’ and insert16 ing ‘‘to complete the development and implementa17 tion’’. 

18 (b) REPORT.—Section 311(b)(3) of the Customs Border 

19 Security Act of 2002 (19 U.S.C. 2075 note) is amended to 

20 read as follows: 

21 ‘‘(3) REPORT.— 

22 ‘‘(A) IN GENERAL.—Not later than Decem23 ber 31, 2016, the Commissioner responsible for 

24 U.S. Customs and Border Protection shall sub25 mit to the Committee on Appropriations and the 


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1 Committee on Finance of the Senate and the 

2 Committee on Appropriations and the Com3 mittee on Ways and Means of the House of Rep4 resentatives a report detailing— 

5 ‘‘(i) U.S. Customs and Border Protec6 tion’s incorporation of all core trade proc7 essing capabilities, including cargo release, 

8 entry summary, cargo manifest, cargo fi9 nancial data, and export data elements into 

10 the Automated Commercial Environment 

11 computer system authorized under section 

12 13031(f)(4) of the Consolidated Omnibus 

13 Budget and Reconciliation Act of 1985 (19 

14 U.S.C. 58c(f)(4)) not later than September 

15 30, 2016, to conform with the admissibility 

16 criteria of agencies participating in the 

17 International Trade Data System identified 

18 pursuant to section 411(d)(4)(A)(iii) of the 

19 Tariff Act of 1930; 

20 ‘‘(ii) U.S. Customs and Border Protec21 tion’s remaining priorities for processing 

22 entry summary data elements, cargo mani23 fest data elements, cargo financial data ele24 ments, and export elements in the Auto25 mated Commercial Environment computer 


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1 system, and the objectives and plans for im2 plementing these remaining priorities; 

3 ‘‘(iii) the components of the National 

4 Customs Automation Program specified in 

5 subsection (a)(2) of section 411 of the Tariff 

6 Act of 1930 that have not been imple7 mented; and 

8 ‘‘(iv) any additional components of the 

9 National Customs Automation Program 

10 initiated by the Commissioner to complete 

11 the development, establishment, and imple12 mentation of the Automated Commercial 

13 Environment computer system. 

14 ‘‘(B) UPDATE OF REPORTS.—Not later than 

15 September 30, 2017, the Commissioner shall sub16 mit to the Committee on Appropriations and the 

17 Committee on Finance of the Senate and the 

18 Committee on Appropriations and the Com19 mittee on Ways and Means of the House of Rep20 resentatives an updated report addressing each of 

21 the matters referred to in subparagraph (A), 

22 and— 

23 ‘‘(i) evaluating the effectiveness of the 

24 implementation of the Automated Commer25 cial Environment computer system; and 


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1 ‘‘(ii) detailing the percentage of trade 

2 processed in the Automated Commercial 

3 Environment every month since September 

4 30, 2016.’’. 

5 (c) GOVERNMENT ACCOUNTABILITY OFFICE RE6 PORT.—Not later than December 31, 2017, the Comptroller 

7 General of the United States shall submit to the Committee 

8 on Appropriations and the Committee on Finance of the 

9 Senate and the Committee on Appropriations and the Com10 mittee on Ways and Means of the House of Representatives 

11 a report— 

12 (1) assessing the progress of other Federal agen13 cies in accessing and utilizing the Automated Com14 mercial Environment; and 

15 (2) assessing the potential cost savings to the 

16 United States Government and importers and export17 ers and the potential benefits to enforcement of the 

18 customs and trade laws of the United States if the ele19 ments identified in clauses (i) through (iv) of section 

20 311(b)(3)(A) of the Customs Border Security Act of 

21 2002, as amended by subsection (b) of this section, are 

22 implemented. 

23 SEC. 107. INTERNATIONAL TRADE DATA SYSTEM. 

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

25 1411(d)) is amended— 


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1 (1) by redesignating paragraphs (4) through (7) 

2 as paragraphs (5) through (8), respectively; 

3 (2) by inserting after paragraph (3) the fol4 lowing: 

5 ‘‘(4) INFORMATION TECHNOLOGY INFRASTRUC6 TURE.— 

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

8 work with the head of each agency participating 

9 in the ITDS and the Interagency Steering Com10 mittee to ensure that each agency— 

11 ‘‘(i) develops and maintains the nec12 essary information technology infrastruc13 ture to support the operation of the ITDS 

14 and to submit all data to the ITDS elec15 tronically; 

16 ‘‘(ii) enters into a memorandum of un17 derstanding, or takes such other action as is 

18 necessary, to provide for the information 

19 sharing between the agency and U.S. Cus20 toms and Border Protection necessary for 

21 the operation and maintenance of the 

22 ITDS; 

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

24 identifies and transmits to the Commis25 sioner responsible for U.S. Customs and 


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1 Border Protection the admissibility criteria 

2 and data elements required by the agency to 

3 authorize the release of cargo by U.S. Cus4 toms and Border Protection for incorpora5 tion into the operational functionality of 

6 the Automated Commercial Environment 

7 computer system authorized under section 

8 13031(f)(4) of the Consolidated Omnibus 

9 Budget and Reconciliation Act of 1985 (19 

10 U.S.C. 58c(f)(4)); and 

11 ‘‘(iv) not later than December 31, 

12 2016, utilizes the ITDS as the primary 

13 means of receiving from users the standard 

14 set of data and other relevant documenta15 tion, exclusive of applications for permits, 

16 licenses, or certifications required for the re17 lease of imported cargo and clearance of 

18 cargo for export. 

19 ‘‘(B) RULE OF CONSTRUCTION.—Nothing in 

20 this paragraph shall be construed to require any 

21 action to be taken that would compromise an on22 going law enforcement investigation or national 

23 security.’’; and 

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1 onciliation Act of 1987 (19 U.S.C. 2071 note)’’ and 

2 inserting ‘‘section 109 of the Trade Facilitation and 

3 Trade Enforcement Act of 2015’’. 

4 SEC. 108. CONSULTATIONS WITH RESPECT TO MUTUAL REC5 OGNITION ARRANGEMENTS. 

6 (a) CONSULTATIONS.—The Secretary of Homeland Se7 curity, with respect to any proposed mutual recognition ar8 rangement or similar agreement between the United States 

9 and a foreign government providing for mutual recognition 

10 of supply chain security programs and customs revenue 

11 functions, shall consult— 

12 (1) not later than 30 days before initiating nego13 tiations to enter into any such arrangement or simi14 lar agreement, with the Committee on Finance of the 

15 Senate and the Committee on Ways and Means of the 

16 House of Representatives; and 

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

18 any such arrangement or similar agreement, with the 

19 Committee on Finance of the Senate and the Com20 mittee on Ways and Means of the House of Represent21 atives. 

22 (b) NEGOTIATING OBJECTIVE.—It shall be a negoti23 ating objective of the United States in any negotiation for 

24 a mutual recognition arrangement with a foreign country 

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1 nership Against Terrorism established under subtitle B of 

2 title II of the Security and Accountability for Every Port 

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

4 compatibility of the partnership programs of that country 

5 with the partnership programs of U.S. Customs and Border 

6 Protection to enhance trade facilitation and trade enforce7 ment. 

8 SEC. 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY 

9 COMMITTEE. 

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

11 60 days after the date of the enactment of this Act, the Sec12 retary of the Treasury and the Secretary of Homeland Secu13 rity shall jointly establish a Commercial Customs Oper14 ations Advisory Committee (in this section referred to as 

15 the ‘‘Advisory Committee’’). 

16 (b) MEMBERSHIP.— 

17 (1) IN GENERAL.—The Advisory Committee shall 

18 be comprised of— 

19 (A) 20 individuals appointed under para20 graph (2); 

21 (B) the Assistant Secretary for Tax Policy 

22 of the Department of the Treasury and the Com23 missioner, who shall jointly co-chair meetings of 

24 the Advisory Committee; and 


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1 (C) the Assistant Secretary for Policy and 

2 the Director of U.S. Immigration and Customs 

3 Enforcement of the Department of Homeland Se4 curity, who shall serve as deputy co-chairs of 

5 meetings of the Advisory Committee. 

6 (2) APPOINTMENT.— 

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

8 Treasury and the Secretary of Homeland Secu9 rity shall jointly appoint 20 individuals from 

10 the private sector to the Advisory Committee. 

11 (B) REQUIREMENTS.—In making appoint12 ments under subparagraph (A), the Secretary of 

13 the Treasury and the Secretary of Homeland Se14 curity shall appoint members— 

15 (i) to ensure that the membership of 

16 the Advisory Committee is representative of 

17 the individuals and firms affected by the 

18 commercial operations of U.S. Customs and 

19 Border Protection; and 

20 (ii) without regard to political affili21 ation. 

22 (C) TERMS.—Each individual appointed to 

23 the Advisory Committee under this paragraph 

24 shall be appointed for a term of not more than 

25 3 years, and may be reappointed to subsequent 


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1 terms, but may not serve more than 2 terms se2 quentially. 

3 (3) TRANSFER OF MEMBERSHIP.—The Secretary 

4 of the Treasury and the Secretary of Homeland Secu5 rity may transfer members serving on the Advisory 

6 Committee on Commercial Operations of the United 

7 States Customs Service established under section 

8 9503(c) of the Omnibus Budget Reconciliation Act of 

9 1987 (19 U.S.C. 2071 note) on the day before the date 

10 of the enactment of this Act to the Advisory Com11 mittee established under subsection (a). 

12 (c) DUTIES.—The Advisory Committee established 

13 under subsection (a) shall— 

14 (1) advise the Secretary of the Treasury and the 

15 Secretary of Homeland Security on all matters in16 volving the commercial operations of U.S. Customs 

17 and Border Protection, including advising with re18 spect to significant changes that are proposed with re19 spect to regulations, policies, or practices of U.S. Cus20 toms and Border Protection; 

21 (2) provide recommendations to the Secretary of 

22 the Treasury and the Secretary of Homeland Security 

23 on improvements to the commercial operations of 

24 U.S. Customs and Border Protection; 


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1 (3) collaborate in developing the agenda for Ad2 visory Committee meetings; and 

3 (4) perform such other functions relating to the 

4 commercial operations of U.S. Customs and Border 

5 Protection as prescribed by law or as the Secretary of 

6 the Treasury and the Secretary of Homeland Security 

7 jointly direct. 

8 (d) MEETINGS.— 

9 (1) IN GENERAL.—The Advisory Committee shall 

10 meet at the call of the Secretary of the Treasury and 

11 the Secretary of Homeland Security, or at the call of 

not less than 2 12 ⁄3 of the membership of the Advisory 

13 Committee. The Advisory Committee shall meet at 

14 least 4 times each calendar year. 

15 (2) OPEN MEETINGS.—Notwithstanding section 

16 10(a) of the Federal Advisory Committee Act (5 

17 U.S.C. App.), the Advisory Committee meetings shall 

18 be open to the public unless the Secretary of the 

19 Treasury or the Secretary of Homeland Security de20 termines that the meeting will include matters the 

21 disclosure of which would compromise the develop22 ment of policies, priorities, or negotiating objectives 

23 or positions that could impact the commercial oper24 ations of U.S. Customs and Border Protection or the 


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1 operations or investigations of U.S. Immigration and 

2 Customs Enforcement. 

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

4 2016, and annually thereafter, the Advisory Committee 

5 shall submit to the Committee on Finance of the Senate and 

6 the Committee on Ways and Means of the House of Rep7 resentatives a report that— 

8 (1) describes the activities of the Advisory Com9 mittee during the preceding fiscal year; and 

10 (2) sets forth any recommendations of the Advi11 sory Committee regarding the commercial operations 

12 of U.S. Customs and Border Protection. 

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

14 Advisory Committee Act (5 U.S.C. App.; relating to the ter15 mination of advisory committees) shall not apply to the Ad16 visory Committee. 

17 (g) CONFORMING AMENDMENT.— 

18 (1) IN GENERAL.—Effective on the date on which 

19 the Advisory Committee is established under sub20 section (a), section 9503(c) of the Omnibus Budget 

21 Reconciliation Act of 1987 (19 U.S.C. 2071 note) is 

22 repealed. 

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

24 Advisory Committee on Commercial Operations of the 

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1 tion 9503(c) of the Omnibus Budget Reconciliation 

2 Act of 1987 (19 U.S.C. 2071 note) made on or after 

3 the date on which the Advisory Committee is estab4 lished under subsection (a), shall be deemed a ref5 erence to the Commercial Customs Operations Advi6 sory Committee established under subsection (a). 

7 SEC. 110. CENTERS OF EXCELLENCE AND EXPERTISE. 

8 (a) IN GENERAL.—The Commissioner shall, in con9 sultation with the Committee on Finance of the Senate, the 

10 Committee on Ways and Means of the House of Representa11 tives, and the Commercial Customs Operations Advisory 

12 Committee established by section 109 of this Act, develop 

13 and implement Centers of Excellence and Expertise 

14 throughout U.S. Customs and Border Protection that— 

15 (1) enhance the economic competitiveness of the 

16 United States by consistently enforcing the laws and 

17 regulations of the United States at all ports of entry 

18 of the United States and by facilitating the flow of le19 gitimate trade through increasing industry-based 

20 knowledge; 

21 (2) improve enforcement efforts, including en22 forcement of priority trade issues described in sub23 paragraph (B)(ii) of section 2(d)(3) of the Act of 

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

25 2072(d)), as added by section 111(a) of this Act, in 


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1 specific industry sectors through the application of 

2 targeting information from the Commercial Targeting 

3 Division established under subparagraph (A) of such 

4 section 2(d)(3) and from other means of verification; 

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

6 Border Protection in particular industry operations, 

7 supply chains, and compliance requirements; 

8 (4) promote the uniform implementation at each 

9 port of entry of the United States of policies and reg10 ulations relating to imports; 

11 (5) centralize the trade enforcement and trade fa12 cilitation efforts of U.S. Customs and Border Protec13 tion; 

14 (6) formalize an account-based approach to 

15 apply, as the Commissioner determines appropriate, 

16 to the importation of merchandise into the United 

17 States; 

18 (7) foster partnerships though the expansion of 

19 trade programs and other trusted partner programs; 

20 (8) develop applicable performance measure21 ments to meet internal efficiency and effectiveness 

22 goals; and 

23 (9) whenever feasible, facilitate a more efficient 

24 flow of information between Federal agencies. 


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

2 Commissioner shall submit to the Committee on Finance 

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

4 the House of Representatives a report describing— 

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

6 Center of Excellence and Expertise developed and im7 plemented under subsection (a); 

8 (2) the effectiveness of each such Center of Excel9 lence and Expertise in improving enforcement efforts, 

10 including enforcement of priority trade issues, and fa11 cilitating legitimate trade; 

12 (3) the quantitative and qualitative benefits of 

13 each such Center of Excellence and Expertise to the 

14 trade community, including through fostering part15 nerships through the expansion of trade programs 

16 such as the Importer Self Assessment program and 

17 other trusted partner programs; 

18 (4) all applicable performance measurements 

19 with respect to each such Center of Excellence and 

20 Expertise, including performance measures with re21 spect to meeting internal efficiency and effectiveness 

22 goals; 

23 (5) the performance of each such Center of Excel24 lence and Expertise in increasing the accuracy and 

25 completeness of data with respect to international 


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1 trade and facilitating a more efficient flow of infor2 mation between Federal agencies; and 

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

4 functions or any other aspect of the Centers of Excel5 lence and Expertise developed and implemented under 

6 subsection (a). 

7 SEC. 111. COMMERCIAL TARGETING DIVISION AND NA8 TIONAL TARGETING AND ANALYSIS GROUPS. 

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

10 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)) 

11 is amended by adding at the end the following: 

12 ‘‘(3) COMMERCIAL TARGETING DIVISION AND NA13 TIONAL TARGETING AND ANALYSIS GROUPS.— 

14 ‘‘(A) ESTABLISHMENT OF COMMERCIAL

15 TARGETING DIVISION.— 

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

17 Homeland Security shall establish and 

18 maintain within the Office of International 

19 Trade a Commercial Targeting Division. 

20 ‘‘(ii) COMPOSITION.—The Commercial 

21 Targeting Division shall be composed of— 

22 ‘‘(I) headquarters personnel led by 

23 an Executive Director, who shall report 

24 to the Assistant Commissioner for 

25 Trade; and 


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1 ‘‘(II) individual National Tar2 geting and Analysis Groups, each led 

3 by a Director who shall report to the 

4 Executive Director of the Commercial 

5 Targeting Division. 

6 ‘‘(iii) DUTIES.—The Commercial Tar7 geting Division shall be dedicated— 

8 ‘‘(I) to the development and con9 duct of commercial risk assessment tar10 geting with respect to cargo destined 

11 for the United States in accordance 

12 with subparagraph (C); and 

13 ‘‘(II) to issuing Trade Alerts de14 scribed in subparagraph (D). 

15 ‘‘(B) NATIONAL TARGETING AND ANALYSIS

16 GROUPS.— 

17 ‘‘(i) IN GENERAL.—A National Tar18 geting and Analysis Group referred to in 

19 subparagraph (A)(ii)(II) shall, at a min20 imum, be established for each priority trade 

21 issue described in clause (ii). 

22 ‘‘(ii) PRIORITY TRADE ISSUES.— 

23 ‘‘(I) IN GENERAL.—The priority 

24 trade issues described in this clause are 

25 the following: 


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1 ‘‘(aa) Agriculture programs. 

2 ‘‘(bb) Antidumping and 

3 countervailing duties. 

4 ‘‘(cc) Import safety. 

5 ‘‘(dd) Intellectual property 

6 rights. 

7 ‘‘(ee) Revenue. 

8 ‘‘(ff) Textiles and wearing 

9 apparel. 

10 ‘‘(gg) Trade agreements and 

11 preference programs. 

12 ‘‘(II) MODIFICATION.—The Com13 missioner is authorized to establish 

14 new priority trade issues and elimi15 nate, consolidate, or otherwise modify 

16 the priority trade issues described in 

17 this paragraph if the Commissioner— 

18 ‘‘(aa) determines it necessary 

19 and appropriate to do so; 

20 ‘‘(bb) submits to the Com21 mittee on Finance of the Senate 

22 and the Committee on Ways and 

23 Means of the House of Representa24 tives a summary of proposals to 

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1 wise modify existing priority 

2 trade issues not later than 60 

3 days before such changes are to 

4 take effect; and 

5 ‘‘(cc) submits to the Com6 mittee on Finance of the Senate 

7 and the Committee on Ways and 

8 Means of the House of Representa9 tives a summary of proposals to 

10 establish new priority trade issues 

11 not later than 30 days after such 

12 changes are to take effect. 

13 ‘‘(iii) DUTIES.—The duties of each Na14 tional Targeting and Analysis Group shall 

15 include— 

16 ‘‘(I) directing the trade enforce17 ment and compliance assessment ac18 tivities of U.S. Customs and Border 

19 Protection that relate to the Group’s 

20 priority trade issue; 

21 ‘‘(II) facilitating, promoting, and 

22 coordinating cooperation and the ex23 change of information between U.S. 

24 Customs and Border Protection, U.S. 

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1 ment, and other relevant Federal de2 partments and agencies regarding the 

3 Group’s priority trade issue; and 

4 ‘‘(III) serving as the primary li5 aison between U.S. Customs and Bor6 der Protection and the public regard7 ing United States Government activi8 ties regarding the Group’s priority 

9 trade issue, including— 

10 ‘‘(aa) providing for receipt 

11 and transmission to the appro12 priate U.S. Customs and Border 

13 Protection office of allegations 

14 from interested parties in the pri15 vate sector of violations of customs 

16 and trade laws of the United 

17 States of merchandise relating to 

18 the priority trade issue; 

19 ‘‘(bb) obtaining information 

20 from the appropriate U.S. Cus21 toms and Border Protection office 

22 on the status of any activities re23 sulting from the submission of 

24 any such allegation, including 

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1 legation, and providing any such 

2 information to each interested 

3 party in the private sector that 

4 submitted the allegation every 90 

5 days after the allegation was re6 ceived by U.S. Customs and Bor7 der Protection unless providing 

8 such information would com9 promise an ongoing law enforce10 ment investigation; and 

11 ‘‘(cc) notifying on a timely 

12 basis each interested party in the 

13 private sector that submitted such 

14 allegation of any civil or criminal 

15 actions taken by U.S. Customs 

16 and Border Protection or other 

17 Federal department or agency re18 sulting from the allegation. 

19 ‘‘(C) COMMERCIAL RISK ASSESSMENT TAR20 GETING.—In carrying out its duties with respect 

21 to commercial risk assessment targeting, the 

22 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 administer 

13 the methodologies and standards established 

14 under clause (i) — 

15 ‘‘(I) publicly available informa16 tion; 

17 ‘‘(II) information available from 

18 the Automated Commercial System, the 

19 Automated Commercial Environment 

20 computer system, the Automated Tar21 geting System, the Automated Export 

22 System, the International Trade Data 

23 System, the TECS (formerly known as 

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1 ment system of U.S. Immigration and 

2 Customs Enforcement, and any suc3 cessor systems; and 

4 ‘‘(III) information made available 

5 to the Commercial Targeting Division, 

6 including information provided by pri7 vate sector entities. 

8 ‘‘(D) TRADE ALERTS.— 

9 ‘‘(i) ISSUANCE.—Based upon the ap10 plication of the targeted risk assessment 

11 methodologies and standards established 

12 under subparagraph (C), the Executive Di13 rector of the Commercial Targeting Division 

14 and the Directors of the National Targeting 

15 and Analysis Groups may issue Trade 

16 Alerts to directors of United States ports of 

17 entry directing further inspection, or phys18 ical examination or testing, of specific mer19 chandise to ensure compliance with all ap20 plicable customs and trade laws and regula21 tions administered by U.S. Customs and 

22 Border Protection. 

23 ‘‘(ii) DETERMINATIONS NOT TO IMPLE24 MENT TRADE ALERTS.—The director of a 

25 United States port of entry may determine 


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1 not to conduct further inspections, or phys2 ical examination or testing, pursuant to a 

3 Trade Alert issued under clause (i) if— 

4 ‘‘(I) the director finds that such a 

5 determination is justified by security 

6 interests; and 

7 ‘‘(II) notifies the Assistant Com8 missioner of the Office of Field Oper9 ations and the Assistant Commissioner 

10 of International Trade of U.S. Customs 

11 and Border Protection of the deter12 mination and the reasons for the deter13 mination not later than 48 hours after 

14 making the determination. 

15 ‘‘(iii) SUMMARY OF DETERMINATIONS

16 NOT TO IMPLEMENT.—The Assistant Com17 missioner of the Office of Field Operations 

18 of U.S. Customs and Border Protection 

19 shall— 

20 ‘‘(I) compile an annual public 

21 summary of all determinations by di22 rectors of United States ports of entry 

23 under clause (ii) and the reasons for 

24 those determinations; 


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1 ‘‘(II) conduct an evaluation of the 

2 utilization of Trade Alerts issued 

3 under clause (i); and 

4 ‘‘(III) submit the summary to the 

5 Committee on Finance of the Senate 

6 and the Committee on Ways and 

7 Means of the House of Representatives 

8 not later than December 31 of each 

9 year. 

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

11 subparagraph, the term ‘inspection’ means 

12 the comprehensive evaluation process used 

13 by U.S. Customs and Border Protection, 

14 other than physical examination or testing, 

15 to permit the entry of merchandise into the 

16 United States, or the clearance of merchan17 dise for transportation in bond through the 

18 United States, for purposes of— 

19 ‘‘(I) assessing duties; 

20 ‘‘(II) identifying restricted or pro21 hibited items; and 

22 ‘‘(III) ensuring compliance with 

23 all applicable customs and trade laws 

24 and regulations administered by U.S. 

25 Customs and Border Protection.’’. 


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1 (b) USE OF TRADE DATA FOR COMMERCIAL ENFORCE2 MENT PURPOSES.—Section 343(a)(3)(F) of the Trade Act 

3 of 2002 (19 U.S.C. 2071 note) is amended to read as follows: 

4 ‘‘(F) The information collected pursuant to 

5 the regulations shall be used exclusively for en6 suring cargo safety and security, preventing 

7 smuggling, and commercial risk assessment tar8 geting, and shall not be used for any commercial 

9 enforcement purposes, including for determining 

10 merchandise entry. Notwithstanding the pre11 ceding sentence, nothing in this section shall be 

12 treated as amending, repealing, or otherwise 

13 modifying title IV of the Tariff Act of 1930 or 

14 regulations prescribed thereunder.’’. 

15 SEC. 112. REPORT ON OVERSIGHT OF REVENUE PROTEC16 TION AND ENFORCEMENT MEASURES. 

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

18 not later than March 31 of each second year thereafter, the 

19 Inspector General of the Department of the Treasury shall 

20 submit to the Committee on Finance of the Senate and the 

21 Committee on Ways and Means of the House of Representa22 tives a report assessing, with respect to the period covered 

23 by the report, as specified in subsection (b), the following: 


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1 (1) The effectiveness of the measures taken by 

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

3 protection of revenue, including— 

4 (A) the collection of countervailing duties 

5 assessed under subtitle A of title VII of the Tariff 

6 Act of 1930 (19 U.S.C. 1671 et seq.) and anti7 dumping duties assessed under subtitle B of title 

8 VII of the Tariff Act of 1930 (19 U.S.C. 1673 et 

9 seq.); 

10 (B) the assessment, collection, and mitiga11 tion of commercial fines and penalties; 

12 (C) the use of bonds, including continuous 

13 and single transaction bonds, to secure that rev14 enue; and 

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

16 Customs and Border Protection with respect to 

17 the monitoring and tracking of merchandise 

18 transported in bond and collecting duties, as ap19 propriate. 

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

21 Customs and Border Protection to measure account22 ability and performance with respect to protection of 

23 revenue. 


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1 (3) The number and outcome of investigations 

2 instituted by U.S. Customs and Border Protection 

3 with respect to the underpayment of duties. 

4 (4) The effectiveness of training with respect to 

5 the collection of duties provided for personnel of U.S. 

6 Customs and Border Protection. 

7 (b) PERIOD COVERED BY REPORT.—Each report re8 quired by subsection (a) shall cover the period of 2 fiscal 

9 years ending on September 30 of the calendar year pre10 ceding the submission of the report. 

11 SEC. 113. REPORT ON SECURITY AND REVENUE MEASURES 

12 WITH RESPECT TO MERCHANDISE TRANS13 PORTED IN BOND. 

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

15 2016, 2017, and 2018, the Secretary of Homeland Security 

16 and the Secretary of the Treasury shall jointly submit to 

17 the Committee on Finance of the Senate and the Committee 

18 on Ways and Means of the House of Representatives a re19 port on efforts undertaken by U.S. Customs and Border 

20 Protection to ensure the secure transportation of merchan21 dise in bond through the United States and the collection 

22 of revenue owed upon the entry of such merchandise into 

23 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 merchandise 

5 for transportation in bond through the United States; 

6 (2) the ports at which merchandise arrives in the 

7 United States for transportation in bond and at 

8 which records of the arrival of such merchandise are 

9 generated; 

10 (3) the average time taken to reconcile such 

11 records with the records at the final destination of the 

12 merchandise in the United States to demonstrate that 

13 the merchandise reaches its final destination or is re14 exported; 

15 (4) the average time taken to transport merchan16 dise in bond from the port at which the merchandise 

17 arrives in the United States to its final destination 

18 in the United States; 

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

20 owed with respect to shipments of merchandise trans21 ported in bond and the total amount of such duties, 

22 taxes, and fees paid; 

23 (6) the total number of notifications by carriers 

24 of merchandise being transported in bond that the 

25 destination of the merchandise has changed; and 


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1 (7) the number of entries that remain 

2 unreconciled. 

3 SEC. 114. IMPORTER OF RECORD PROGRAM. 

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

5 180 days after the date of the enactment of this Act, the 

6 Secretary of Homeland Security shall establish an importer 

7 of record program to assign and maintain importer of 

8 record numbers. 

9 (b) REQUIREMENTS.—The Secretary shall ensure that, 

10 as part of the importer of record program, U.S. Customs 

11 and Border Protection— 

12 (1) develops criteria that importers must meet in 

13 order to obtain an importer of record number, includ14 ing— 

15 (A) criteria to ensure sufficient information 

16 is collected to allow U.S. Customs and Border 

17 Protection to verify the existence of the importer 

18 requesting the importer of record number; 

19 (B) criteria to ensure sufficient information 

20 is collected to allow U.S. Customs and Border 

21 Protection to identify linkages or other affili22 ations between importers that are requesting or 

23 have been assigned importer of record numbers; 

24 and 


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1 (C) criteria to ensure sufficient information 

2 is collected to allow U.S. Customs and Border 

3 Protection to identify changes in address and 

4 corporate structure of importers; 

5 (2) provides a process by which importers are as6 signed importer of record numbers; 

7 (3) maintains a centralized database of importer 

8 of record numbers, including a history of importer of 

9 record numbers associated with each importer, and 

10 the information described in subparagraphs (A), (B), 

11 and (C) of paragraph (1); 

12 (4) evaluates and maintains the accuracy of the 

13 database if such information changes; and 

14 (5) takes measures to ensure that duplicate im15 porter of record numbers are not issued. 

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

17 of the enactment of this Act, the Secretary shall submit to 

18 the Committee on Finance of the Senate and the Committee 

19 on Ways and Means of the House of Representatives a re20 port on the importer of record program established under 

21 subsection (a). 

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

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

24 filing identification number described in section 24.5 of 

25 title 19, Code of Federal Regulations (or any corresponding 


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1 similar regulation) that fully supports the requirements of 

2 subsection (b) with respect to the collection and mainte3 nance of information. 

4 SEC. 115. ESTABLISHMENT OF NEW IMPORTER PROGRAM. 

5 (a) IN GENERAL.—Not later than the date that is 180 

6 days after the date of the enactment of this Act, the Commis7 sioner shall establish a new importer program that directs 

8 U.S. Customs and Border Protection to adjust bond 

9 amounts for new importers based on the level of risk as10 sessed by U.S. Customs and Border Protection for protec11 tion of revenue of the Federal Government. 

12 (b) REQUIREMENTS.—The Commissioner shall ensure 

13 that, as part of the new importer program established under 

14 subsection (a), U.S. Customs and Border Protection— 

15 (1) develops risk-based criteria for determining 

16 which importers are considered to be new importers 

17 for the purposes of this subsection; 

18 (2) develops risk assessment guidelines for new 

19 importers to determine if and to what extent— 

20 (A) to adjust bond amounts of imported 

21 products of new importers; and 

22 (B) to increase screening of imported prod23 ucts of new importers; 

24 (3) develops procedures to ensure increased over25 sight of imported products of new importers relating 


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1 to the enforcement of the priority trade issues de2 scribed in paragraph (3)(B)(ii) of section 2(d) of the 

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

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

5 Act; 

6 (4) develops procedures to ensure increased over7 sight of imported products of new importers by Cen8 ters of Excellence and Expertise established under sec9 tion 110 of this Act; and 

10 (5) establishes a centralized database of new im11 porters to ensure accuracy of information that is re12 quired to be provided by new importers to U.S. Cus13 toms and Border Protection. 

14 SEC. 116. CUSTOMS BROKER IDENTIFICATION OF IMPORT15 ERS. 

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

17 1930 (19 U.S.C. 1641) is amended by adding at the end 

18 the following: 

19 ‘‘(i) IDENTIFICATION OF IMPORTERS.— 

20 ‘‘(1) IN GENERAL.—The Secretary shall prescribe 

21 regulations setting forth the minimum standards for 

22 customs brokers and importers, including nonresident 

23 importers, regarding the identity of the importer that 

24 shall apply in connection with the importation of 

25 merchandise into the United States. 


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1 ‘‘(2) MINIMUM REQUIREMENTS.—The regulations 

2 shall, at a minimum, require customs brokers to im3 plement, and importers (after being given adequate 

4 notice) to comply with, reasonable procedures for— 

5 ‘‘(A) collecting the identity of importers, in6 cluding nonresident importers, seeking to import 

7 merchandise into the United States to the extent 

8 reasonable and practicable; and 

9 ‘‘(B) maintaining records of the informa10 tion used to substantiate a person’s identity, in11 cluding name, address, and other identifying in12 formation. 

13 ‘‘(3) PENALTIES.—Any customs broker who fails 

14 to collect information required under the regulations 

15 prescribed under this subsection shall be liable to the 

16 United States, at the discretion of the Secretary, for 

17 a monetary penalty not to exceed $10,000 for each 

18 violation of those regulations and subject to revocation 

19 or suspension of a license or permit of the customs 

20 broker pursuant to the procedures set forth in sub21 section (d). 

22 ‘‘(4) DEFINITIONS.—In this subsection— 

23 ‘‘(A) the term ‘importer’ means one of the 

24 parties qualifying as an importer of record 

25 under section 484(a)(2)(B); and 


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1 ‘‘(B) the term ‘nonresident importer’ means 

2 an importer who is— 

3 ‘‘(i) an individual who is not a citizen 

4 of the United States or an alien lawfully 

5 admitted for permanent residence in the 

6 United States; or 

7 ‘‘(ii) a partnership, corporation, or 

8 other commercial entity that is not orga9 nized under the laws of a jurisdiction with10 in the customs territory of the United States 

11 (as such term is defined in General Note 2 

12 of the Harmonized Tariff Schedule of the 

13 United States) or in the Virgin Islands of 

14 the United States.’’. 

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

16 180 days after the date of enactment of this Act, the Com17 missioner shall submit to Congress a report containing rec18 ommendations for— 

19 (1) determining the most timely and effective 

20 way to require foreign nationals to provide customs 

21 brokers with appropriate and accurate information, 

22 comparable to that which is required of United States 

23 nationals, concerning the identity, address, and other 

24 related information relating to such foreign nationals 

25 necessary to enable customs brokers to comply with 


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1 the requirements of section 641(i) of the Tariff Act of 

2 1930 (as added by subsection (a)); and 

3 (2) establishing a system for customs brokers to 

4 review information maintained by relevant Federal 

5 agencies for purposes of verifying the identities of im6 porters, including nonresident importers, seeking to 

7 import merchandise into the United States. 

8 SEC. 117. REQUIREMENTS APPLICABLE TO NON-RESIDENT 

9 IMPORTERS. 

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

11 Act of 1930 (19 U.S.C. 1481 et seq.) is amended by insert12 ing after section 484b the following new section: 

13 ‘‘SEC. 484c. REQUIREMENTS APPLICABLE TO NON-RESI14 DENT IMPORTERS. 

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

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

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

18 of U.S. Customs and Border Protection shall require the 

19 non-resident importer to designate a resident agent in the 

20 United States subject to the requirements described in sub21 section (b). 

22 ‘‘(b) REQUIREMENTS.—The requirements described in 

23 this subsection are the following: 

24 ‘‘(1) The resident agent shall be authorized to ac25 cept service of process against the non-resident imVerDate Sep 11 2014 00:53 May 15, 2015 Jkt 049200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6203 E:\BILLS\H1907.RH H1907

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1 porter in connection with the importation of mer2 chandise. 

3 ‘‘(2) The Commissioner of U.S. Customs and 

4 Border Protection shall require the non-resident im5 porter to establish a power of attorney with the resi6 dent agent in connection with the importation of mer7 chandise. 

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

9 section shall not apply with respect to a non-resident im10 porter who is a validated Tier 2 or Tier 3 participant in 

11 the Customs-Trade Partnership Against Terrorism program 

12 established under subtitle B of title II of the SAFE Port 

13 Act (6 U.S.C. 961 et seq.). 

14 ‘‘(d) PENALTIES.— 

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

16 person to import into the United States any merchan17 dise in violation of this section. 

18 ‘‘(2) CIVIL PENALTIES.—Any person who violates 

19 paragraph (1) shall be liable for a civil penalty of 

20 $50,000 for each such violation. 

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

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

23 this section that violates any other customs and trade 

24 laws of the United States shall be subject to any ap25 plicable civil and criminal penalty, including seizure 


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1 and forfeiture, that may be imposed under such cus2 toms or trade law or title 18, United States Code, 

3 with respect to the importation of merchandise. 

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

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

6 meaning given such term in section 2 of the Customs 

7 Trade Facilitation and Enforcement Act of 2015.’’. 

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

9 of 1930, as added by subsection (a), takes effect on the date 

10 of the enactment of this Act and applies with respect to 

11 the importation of merchandise of an importer of record 

12 under section 484 of the Tariff Act of 1930 who is not resi13 dent of the United States on or after the date that is 180 

14 days after such date of enactment. 

15 TITLE II—IMPORT HEALTH AND 

16 SAFETY 

17 SEC. 201. INTERAGENCY IMPORT SAFETY WORKING GROUP. 

18 (a) ESTABLISHMENT.—There is established an inter19 agency Import Safety Working Group. 

20 (b) MEMBERSHIP.—The interagency Import Safety 

21 Working Group shall consist of the following officials or 

22 their designees: 

23 (1) The Secretary of Homeland Security, who 

24 shall serve as the Chair. 


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1 (2) The Secretary of Health and Human Serv2 ices, who shall serve as the Vice Chair. 

3 (3) The Secretary of the Treasury. 

4 (4) The Secretary of Commerce. 

5 (5) The Secretary of Agriculture. 

6 (6) The United States Trade Representative. 

7 (7) The Director of the Office of Management 

8 and Budget. 

9 (8) The Commissioner of Food and Drugs. 

10 (9) The Commissioner responsible for U.S. Cus11 toms and Border Protection. 

12 (10) The Chairman of the Consumer Product 

13 Safety Commission. 

14 (11) The Director of U.S. Immigration and Cus15 toms Enforcement. 

16 (12) The head of any other Federal agency des17 ignated by the President to participate in the inter18 agency Import Safety Working Group, as appro19 priate. 

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

21 Safety Working Group shall include— 

22 (1) consulting on the development of the joint 

23 import safety rapid response plan required by section 

24 202 of this Act; 


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1 (2) periodically evaluating the adequacy of the 

2 plans, practices, and resources of the Federal Govern3 ment dedicated to ensuring the safety of merchandise 

4 imported in the United States and the expeditious 

5 entry of such merchandise, including— 

6 (A) minimizing the duplication of efforts 

7 among agencies the heads of which are members 

8 of the interagency Import Safety Working Group 

9 and ensuring the compatibility of the policies 

10 and regulations of those agencies; and 

11 (B) recommending additional administra12 tive actions, as appropriate, designed to ensure 

13 the safety of merchandise imported into the 

14 United States and the expeditious entry of such 

15 merchandise and considering the impact of those 

16 actions on private sector entities; 

17 (3) reviewing the engagement and cooperation of 

18 foreign governments and foreign manufacturers in fa19 cilitating the inspection and certification, as appro20 priate, of such merchandise to be imported into the 

21 United States and the facilities producing such mer22 chandise to ensure the safety of the merchandise and 

23 the expeditious entry of the merchandise into the 

24 United States; 


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1 (4) identifying best practices, in consultation 

2 with private sector entities as appropriate, to assist 

3 United States importers in taking all appropriate 

4 steps to ensure the safety of merchandise imported 

5 into the United States, including with respect to— 

6 (A) the inspection of manufacturing facili7 ties in foreign countries; 

8 (B) the inspection of merchandise destined 

9 for the United States before exportation from a 

10 foreign country or before distribution in the 

11 United States; and 

12 (C) the protection of the international sup13 ply chain (as defined in section 2 of the Security 

14 and Accountability For Every Port Act of 2006 

15 (6 U.S.C. 901)); 

16 (5) identifying best practices to assist Federal, 

17 State, and local governments and agencies, and port 

18 authorities, to improve communication and coordina19 tion among such agencies and authorities with respect 

20 to ensuring the safety of merchandise imported into 

21 the United States and the expeditious entry of such 

22 merchandise; and 

23 (6) otherwise identifying appropriate steps to in24 crease the accountability of United States importers 

25 and the engagement of foreign government agencies 


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1 with respect to ensuring the safety of merchandise im2 ported into the United States and the expeditious 

3 entry of such merchandise. 

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

5 (a) IN GENERAL.—Not later than December 31, 2016, 

6 the Secretary of Homeland Security, in consultation with 

7 the interagency Import Safety Working Group, shall de8 velop a plan (to be known as the ‘‘joint import safety rapid 

9 response plan’’) that sets forth protocols and defines prac10 tices for U.S. Customs and Border Protection to use— 

11 (1) in taking action in response to, and coordi12 nating Federal responses to, an incident in which 

13 cargo destined for or merchandise entering the United 

14 States has been identified as posing a threat to the 

15 health or safety of consumers in the United States; 

16 and 

17 (2) in recovering from or mitigating the effects 

18 of actions and responses to an incident described in 

19 paragraph (1). 

20 (b) CONTENTS.—The joint import safety rapid re21 sponse plan shall address— 

22 (1) the statutory and regulatory authorities and 

23 responsibilities of U.S. Customs and Border Protec24 tion and other Federal agencies in responding to an 

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


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1 (2) the protocols and practices to be used by U.S. 

2 Customs and Border Protection when taking action in 

3 response to, and coordinating Federal responses to, 

4 such an incident; 

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

6 and Border Protection and other Federal agencies in 

7 recovering from or mitigating the effects of actions 

8 taken in response to such an incident after the inci9 dent to ensure the resumption of the entry of mer10 chandise into the United States; and 

11 (4) exercises that U.S. Customs and Border Pro12 tection may conduct in conjunction with Federal, 

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

14 to simulate responses to such an incident. 

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

16 Security shall review and update the joint import safety 

17 rapid response plan, as appropriate, after conducting exer18 cises under subsection (d). 

19 (d) IMPORT HEALTH AND SAFETY EXERCISES.— 

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

21 Security and the Commissioner shall periodically en22 gage in the exercises referred to in subsection (b)(4), 

23 in conjunction with Federal, State, and local agencies 

24 and private sector entities, as appropriate, to test and 

25 evaluate the protocols and practices identified in the 


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1 joint import safety rapid response plan at United 

2 States ports of entry. 

3 (2) REQUIREMENTS FOR EXERCISES.—In con4 ducting exercises under paragraph (1), the Secretary 

5 and the Commissioner shall— 

6 (A) make allowance for the resources, needs, 

7 and constraints of United States ports of entry 

8 of different sizes in representative geographic lo9 cations across the United States; 

10 (B) base evaluations on current risk assess11 ments of merchandise entering the United States 

12 at representative United States ports of entry lo13 cated across the United States; 

14 (C) ensure that such exercises are conducted 

15 in a manner consistent with the National Inci16 dent Management System, the National Response 

17 Plan, the National Infrastructure Protection 

18 Plan, the National Preparedness Guidelines, the 

19 Maritime Transportation System Security Plan, 

20 and other such national initiatives of the De21 partment of Homeland Security, as appropriate; 

22 and 

23 (D) develop metrics with respect to the re24 sumption of the entry of merchandise into the 


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1 United States after an incident described in sub2 section (a)(1). 

3 (3) REQUIREMENTS FOR TESTING AND EVALUA4 TION.—The Secretary and the Commissioner shall en5 sure that the testing and evaluation carried out in 

6 conducting exercises under paragraph (1)— 

7 (A) are performed using clear and objective 

8 performance measures; and 

9 (B) result in the identification of specific 

10 recommendations or best practices for responding 

11 to an incident described in subsection (a)(1). 

12 (4) DISSEMINATION OF RECOMMENDATIONS AND

13 BEST PRACTICES.—The Secretary and the Commis14 sioner shall— 

15 (A) share the recommendations or best prac16 tices identified under paragraph (3)(B) among 

17 the members of the interagency Import Safety 

18 Working Group and with, as appropriate— 

19 (i) State, local, and tribal govern20 ments; 

21 (ii) foreign governments; and 

22 (iii) private sector entities; and 

23 (B) use such recommendations and best 

24 practices to update the joint import safety rapid 

25 response plan. 


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1 SEC. 203. TRAINING. 

2 The Commissioner shall ensure that personnel of U.S. 

3 Customs and Border Protection assigned to United States 

4 ports of entry are trained to effectively administer the pro5 visions of this title and to otherwise assist in ensuring the 

6 safety of merchandise imported into the United States and 

7 the expeditious entry of such merchandise. 

8 TITLE III—IMPORT-RELATED 

9 PROTECTION OF INTELLEC10 TUAL PROPERTY RIGHTS 

11 SEC. 301. DEFINITION OF INTELLECTUAL PROPERTY 

12 RIGHTS. 

13 In this title, the term ‘‘intellectual property rights’’ re14 fers to copyrights, trademarks, and other forms of intellec15 tual property rights that are enforced by U.S. Customs and 

16 Border Protection or U.S. Immigration and Customs En17 forcement. 

18 SEC. 302. EXCHANGE OF INFORMATION RELATED TO TRADE 

19 ENFORCEMENT. 

20 (a) IN GENERAL.—The Tariff Act of 1930 is amended 

21 by inserting after section 628 (19 U.S.C. 1628) the fol22 lowing new section: 

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

24 TRADE ENFORCEMENT. 

25 ‘‘(a) IN GENERAL.—Subject to subsections (c) and (d), 

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1 der Protection suspects that merchandise is being imported 

2 into the United States in violation of section 526 of this 

3 Act or section 602, 1201(a)(2), or 1201(b)(1) of title 17, 

4 United States Code, and determines that the examination 

5 or testing of the merchandise by a person described in sub6 section (b) would assist the Commissioner in determining 

7 if the merchandise is being imported in violation of that 

8 section, the Commissioner, to permit the person to conduct 

9 the examination and testing— 

10 ‘‘(1) shall provide to the person information that 

11 appears on the merchandise and its packaging and 

12 labels, including unredacted images of the merchan13 dise and its packaging and labels; and 

14 ‘‘(2) may, subject to any applicable bonding re15 quirements, provide to the person unredacted samples 

16 of the merchandise. 

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

18 subsection is— 

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

20 being imported in violation of section 526, the owner 

21 of the trademark suspected of being copied or simu22 lated by the merchandise; 

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

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


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1 United States Code, the owner of the copyright sus2 pected of being infringed by the merchandise; 

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

4 being primarily designed or produced for the purpose 

5 of circumventing a technological measure that effec6 tively controls access to a work protected under that 

7 title, and being imported in violation of section 

8 1201(a)(2) of that title, the owner of a copyright in 

9 the work; and 

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

11 being primarily designed or produced for the purpose 

12 of circumventing protection afforded by a techno13 logical measure that effectively protects a right of an 

14 owner of a copyright in a work or a portion of a 

15 work, and being imported in violation of section 

16 1201(b)(1) of that title, the owner of the copyright. 

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

18 respect to merchandise suspected of infringing a trademark 

19 or copyright that is recorded with U.S. Customs and Border 

20 Protection. 

21 ‘‘(d) EXCEPTION.—The Commissioner may not pro22 vide under subsection (a) information, photographs, or sam23 ples to a person described in subsection (b) if providing such 

24 information, photographs, or samples would compromise an 


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1 ongoing law enforcement investigation or national secu2 rity.’’. 

3 (b) TERMINATION OF PREVIOUS AUTHORITY.—Not4 withstanding paragraph (2) of section 818(g) of the Na5 tional Defense Authorization Act for Fiscal Year 2012 (Pub6 lic Law 112–81; 125 Stat. 1496; 10 U.S.C. 2302 note), 

7 paragraph (1) of that section shall have no force or effect 

8 on or after the date of the enactment of this Act. 

9 SEC. 303. SEIZURE OF CIRCUMVENTION DEVICES. 

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

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

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

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

14 and inserting ‘‘; or’’; and 

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

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

17 determines it is a technology, product, service, 

18 device, component, or part thereof the importa19 tion of which is prohibited under subsection 

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

21 United States Code.’’. 

22 (b) NOTIFICATION OF PERSONS INJURED.— 

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

24 is 30 business days after seizing merchandise pursu25 ant to subparagraph (G) of section 596(c)(2) of the 


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

2 Commissioner shall provide to any person identified 

3 under paragraph (2) information regarding the mer4 chandise seized that is equivalent to information pro5 vided to copyright owners under regulations of U.S. 

6 Customs and Border Protection for merchandise 

7 seized for violation of the copyright laws. 

8 (2) PERSONS TO BE PROVIDED INFORMATION.— 

9 Any person injured by the violation of (a)(2) or 

10 (b)(1) of section 1201 of title 17, United States Code, 

11 that resulted in the seizure of the merchandise shall 

12 be provided information under paragraph (1), if that 

13 person is included on a list maintained by the Com14 missioner that is revised annually through publica15 tion in the Federal Register. 

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

17 after the date of the enactment of this Act, the Sec18 retary of the Treasury shall prescribe regulations es19 tablishing procedures that implement this subsection. 

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

21 PROTECTION OF WORKS FOR WHICH COPY22 RIGHT REGISTRATION IS PENDING. 

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

24 of the enactment of this Act, the Secretary of Homeland Se25 curity shall authorize a process pursuant to which the ComVerDate Sep 11 2014 00:53 May 15, 2015 Jkt 049200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6203 E:\BILLS\H1907.RH H1907

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1 missioner shall enforce a copyright for which the owner has 

2 submitted an application for registration under title 17, 

3 United States Code, with the United States Copyright Of4 fice, to the same extent and in the same manner as if the 

5 copyright were registered with the Copyright Office, includ6 ing by sharing information, images, and samples of mer7 chandise suspected of infringing the copyright under section 

8 628A of the Tariff Act of 1930, as added by section 302. 

9 SEC. 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS CO10 ORDINATION CENTER. 

11 (a) ESTABLISHMENT.—The Secretary of Homeland 

12 Security shall— 

13 (1) establish within U.S. Immigration and Cus14 toms Enforcement a National Intellectual Property 

15 Rights Coordination Center; and 

16 (2) appoint an Assistant Director to head the 

17 National Intellectual Property Rights Coordination 

18 Center. 

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

20 Intellectual Property Rights Coordination Center shall— 

21 (1) coordinate the investigation of sources of 

22 merchandise that infringe intellectual property rights 

23 to identify organizations and individuals that 

24 produce, smuggle, or distribute such merchandise; 


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1 (2) conduct and coordinate training with other 

2 domestic and international law enforcement agencies 

3 on investigative best practices— 

4 (A) to develop and expand the capability of 

5 such agencies to enforce intellectual property 

6 rights; and 

7 (B) to develop metrics to assess whether the 

8 training improved enforcement of intellectual 

9 property rights; 

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

11 Protection, activities conducted by the United States 

12 to prevent the importation or exportation of merchan13 dise that infringes intellectual property rights; 

14 (4) support the international interdiction of 

15 merchandise destined for the United States that in16 fringes intellectual property rights; 

17 (5) collect and integrate information regarding 

18 infringement of intellectual property rights from do19 mestic and international law enforcement agencies 

20 and other non-Federal sources; 

21 (6) develop a means to receive and organize in22 formation regarding infringement of intellectual 

23 property rights from such agencies and other sources; 


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1 (7) disseminate information regarding infringe2 ment of intellectual property rights to other Federal 

3 agencies, as appropriate; 

4 (8) develop and implement risk-based alert sys5 tems, in coordination with U.S. Customs and Border 

6 Protection, to improve the targeting of persons that 

7 repeatedly infringe intellectual property rights; 

8 (9) coordinate with the offices of United States 

9 attorneys in order to develop expertise in, and assist 

10 with the investigation and prosecution of, crimes re11 lating to the infringement of intellectual property 

12 rights; and 

13 (10) carry out such other duties as the Secretary 

14 of Homeland Security may assign. 

15 (c) COORDINATION WITH OTHER AGENCIES.—In car16 rying out the duties described in subsection (b), the Assist17 ant Director of the National Intellectual Property Rights 

18 Coordination Center shall coordinate with— 

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

20 (2) the Food and Drug Administration; 

21 (3) the Department of Justice; 

22 (4) the Department of Commerce, including the 

23 United States Patent and Trademark Office; 

24 (5) the United States Postal Inspection Service; 


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1 (6) the Office of the United States Trade Rep2 resentative; 

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

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

5 Immigration and Customs Enforcement considers ap6 propriate; and 

7 (8) any other entities that the Director considers 

8 appropriate. 

9 (d) PRIVATE SECTOR OUTREACH.— 

10 (1) IN GENERAL.—The Assistant Director of the 

11 National Intellectual Property Rights Coordination 

12 Center shall work with U.S. Customs and Border Pro13 tection and other Federal agencies to conduct outreach 

14 to private sector entities in order to determine trends 

15 in and methods of infringing intellectual property 

16 rights. 

17 (2) INFORMATION SHARING.—The Assistant Di18 rector shall share information and best practices with 

19 respect to the enforcement of intellectual property 

20 rights with private sector entities, as appropriate, in 

21 order to coordinate public and private sector efforts to 

22 combat the infringement of intellectual property 

23 rights. 


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1 SEC. 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT 

2 OF INTELLECTUAL PROPERTY RIGHTS. 

3 The Commissioner and the Director of U.S. Immigra4 tion and Customs Enforcement shall include in the joint 

5 strategic plan required by section 105 of this Act— 

6 (1) a description of the efforts of the Department 

7 of Homeland Security to enforce intellectual property 

8 rights; 

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

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

11 seized the most merchandise, both by volume and by 

12 value, that infringes intellectual property rights dur13 ing the most recent 2-year period for which data are 

14 available; and 

15 (3) a recommendation for the optimal allocation 

16 of personnel, resources, and technology to ensure that 

17 U.S. Customs and Border Protection and U.S. Immi18 gration and Customs Enforcement are adequately en19 forcing intellectual property rights. 

20 SEC. 307. PERSONNEL DEDICATED TO THE ENFORCEMENT 

21 OF INTELLECTUAL PROPERTY RIGHTS. 

22 (a) PERSONNEL OF U.S. CUSTOMS AND BORDER PRO23 TECTION.—The Commissioner and the Director of U.S. Im24 migration and Customs Enforcement shall ensure that suffi25 cient personnel are assigned throughout U.S. Customs and 

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1 forcement, respectively, who have responsibility for pre2 venting the importation into the United States of merchan3 dise that infringes intellectual property rights. 

4 (b) STAFFING OF NATIONAL INTELLECTUAL PROPERTY

5 RIGHTS COORDINATION CENTER.—The Commissioner 

6 shall— 

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

8 of U.S. Customs and Border Protection to the Na9 tional Intellectual Property Rights Coordination Cen10 ter established under section 305 of this Act; and 

11 (2) ensure that sufficient personnel are assigned 

12 to United States ports of entry to carry out the direc13 tives of the Center. 

14 SEC. 308. TRAINING WITH RESPECT TO THE ENFORCEMENT 

15 OF INTELLECTUAL PROPERTY RIGHTS. 

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

17 officers of U.S. Customs and Border Protection are trained 

18 to effectively detect and identify merchandise destined for 

19 the United States that infringes intellectual property rights, 

20 including through the use of technologies identified under 

21 subsection (c). 

22 (b) CONSULTATION WITH PRIVATE SECTOR.—The 

23 Commissioner shall consult with private sector entities to 

24 better identify opportunities for collaboration between U.S. 

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1 spect to training for officers of U.S. Customs and Border 

2 Protection in enforcing intellectual property rights. 

3 (c) IDENTIFICATION OF NEW TECHNOLOGIES.—In con4 sultation with private sector entities, the Commissioner 

5 shall identify— 

6 (1) technologies with the cost-effective capability 

7 to detect and identify merchandise at United States 

8 ports of entry that infringes intellectual property 

9 rights; and 

10 (2) cost-effective programs for training officers of 

11 U.S. Customs and Border Protection to use such tech12 nologies. 

13 (d) DONATIONS OF TECHNOLOGY.—Not later than the 

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

15 this Act, the Commissioner shall prescribe regulations to en16 able U.S. Customs and Border Protection to receive dona17 tions of hardware, software, equipment, and similar tech18 nologies, and to accept training and other support services, 

19 from private sector entities, for the purpose of enforcing in20 tellectual property rights. 

21 SEC. 309. INTERNATIONAL COOPERATION AND INFORMA22 TION SHARING. 

23 (a) COOPERATION.—The Secretary of Homeland Secu24 rity shall coordinate with the competent law enforcement 

25 and customs authorities of foreign countries, including by 


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1 sharing information relevant to enforcement actions, to en2 hance the efforts of the United States and such authorities 

3 to enforce intellectual property rights. 

4 (b) TECHNICAL ASSISTANCE.—The Secretary of Home5 land Security shall provide technical assistance to com6 petent law enforcement and customs authorities of foreign 

7 countries to enhance the ability of such authorities to en8 force intellectual property rights. 

9 (c) INTERAGENCY COLLABORATION.—The Commis10 sioner and the Director of U.S. Immigration and Customs 

11 Enforcement shall lead interagency efforts to collaborate 

12 with law enforcement and customs authorities of foreign 

13 countries to enforce intellectual property rights. 

14 SEC. 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS 

15 ENFORCEMENT. 

16 Not later than June 30, 2016, and annually thereafter, 

17 the Commissioner and the Director of U.S. Immigration 

18 and Customs Enforcement shall jointly submit to the Com19 mittee on Finance of the Senate and the Committee on 

20 Ways and Means of the House of Representatives a report 

21 that contains the following: 

22 (1) With respect to the enforcement of intellectual 

23 property rights, the following: 

24 (A) The number of referrals from U.S. Cus25 toms and Border Protection to U.S. Immigration 


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1 and Customs Enforcement relating to infringe2 ment of intellectual property rights during the 

3 preceding year. 

4 (B) The number of investigations relating to 

5 the infringement of intellectual property rights 

6 referred by U.S. Immigration and Customs En7 forcement to a United States attorney for pros8 ecution and the United States attorneys to which 

9 those investigations were referred. 

10 (C) The number of such investigations ac11 cepted by each such United States attorney and 

12 the status or outcome of each such investigation. 

13 (D) The number of such investigations that 

14 resulted in the imposition of civil or criminal 

15 penalties. 

16 (E) A description of the efforts of U.S. Cus17 tom and Border Protection and U.S. Immigra18 tion and Customs Enforcement to improve the 

19 success rates of investigations and prosecutions 

20 relating to the infringement of intellectual prop21 erty rights. 

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

23 the Office of International Trade of U.S. Customs and 

24 Border Protection to respond to a request from port 

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1 dise detained by U.S. Customs and Border Protection 

2 infringed intellectual property rights, distinguished 

3 by types of intellectual property rights infringed. 

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

5 Customs and Border Protection and U.S. Immigra6 tion and Customs Enforcement with respect to— 

7 (A) the interdiction and investigation of, 

8 and the sharing of information between those 

9 agencies and other Federal agencies to prevent 

10 the infringement of intellectual property rights; 

11 (B) collaboration with private sector enti12 ties— 

13 (i) to identify trends in the infringe14 ment of, and technologies that infringe, in15 tellectual property rights; 

16 (ii) to identify opportunities for en17 hanced training of officers of U.S. Customs 

18 and Border Protection and U.S. Immigra19 tion and Customs Enforcement; and 

20 (iii) to develop best practices to enforce 

21 intellectual property rights; and 

22 (C) coordination with foreign governments 

23 and international organizations with respect to 

24 the enforcement of intellectual property rights. 


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

2 and Border Protection and U.S. Immigration and 

3 Customs Enforcement to address the challenges with 

4 respect to the enforcement of intellectual property 

5 rights presented by Internet commerce and the transit 

6 of small packages and an identification of the volume, 

7 value, and type of merchandise seized for infringing 

8 intellectual property rights as a result of such efforts. 

9 (5) A summary of training relating to the en10 forcement of intellectual property rights conducted 

11 under section 308 of this Act and expenditures for 

12 such training. 

13 SEC. 311. INFORMATION FOR TRAVELERS REGARDING VIO14 LATIONS OF INTELLECTUAL PROPERTY 

15 RIGHTS. 

16 (a) IN GENERAL.—The Secretary of Homeland Secu17 rity shall develop and carry out an educational campaign 

18 to inform travelers entering or leaving the United States 

19 about the legal, economic, and public health and safety im20 plications of acquiring merchandise that infringes intellec21 tual property rights outside the United States and import22 ing such merchandise into the United States in violation 

23 of United States law. 

24 (b) DECLARATION FORMS.—The Commissioner shall 

25 ensure that all versions of Declaration Form 6059B of U.S. 


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1 Customs and Border Protection, or a successor form, includ2 ing any electronic equivalent of Declaration Form 6059B 

3 or a successor form, printed or displayed on or after the 

4 date that is 30 days after the date of the enactment of this 

5 Act include a written warning to inform travelers arriving 

6 in the United States that importation of merchandise into 

7 the United States that infringes intellectual property rights 

8 may subject travelers to civil or criminal penalties and may 

9 pose serious risks to safety or health. 

10 TITLE IV—PREVENTION OF EVA11 SION OF ANTIDUMPING AND 

12 COUNTERVAILING DUTY OR13 DERS 

14 SEC. 401. SHORT TITLE. 

15 This title may be cited as the ‘‘Preventing Recurring 

16 Trade Evasion and Circumvention Act’’ or ‘‘PROTECT 

17 Act’’. 

18 SEC. 402. DEFINITIONS. 

19 In this title: 

20 (1) APPROPRIATE CONGRESSIONAL COMMIT21 TEES.—The term ‘‘appropriate congressional commit22 tees’’ means— 

23 (A) the Committee on Finance and the 

24 Committee on Appropriations of the Senate; and 


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1 (B) the Committee on Ways and Means and 

2 the Committee on Appropriations of the House of 

3 Representatives. 

4 (2) COVERED MERCHANDISE.—The term ‘‘cov5 ered merchandise’’ means merchandise that is subject 

6 to— 

7 (A) a countervailing duty order issued 

8 under section 706 of the Tariff Act of 1930; or 

9 (B) an antidumping duty order issued 

10 under section 736 of the Tariff Act of 1930. 

11 (3) ELIGIBLE SMALL BUSINESS.— 

12 (A) IN GENERAL.—The term ‘‘eligible small 

13 business’’ means any business concern which, in 

14 the Commissioner’s judgment, due to its small 

15 size, has neither adequate internal resources nor 

16 financial ability to obtain qualified outside as17 sistance in preparing and submitting for consid18 eration allegations of evasion. 

19 (B) NON-REVIEWABILITY.—Any agency de20 cision regarding whether a business concern is 

21 an eligible small business for purposes of section 

22 411(b)(4)(E) is not reviewable by any other 

23 agency or by any court. 

24 (4) ENTER; ENTRY.—The terms ‘‘enter’’ and 

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1 house for consumption, in the customs territory of the 

2 United States. 

3 (5) EVADE; EVASION.—The terms ‘‘evade’’ and 

4 ‘‘evasion’’ refer to entering covered merchandise into 

5 the customs territory of the United States by means 

6 of any document or electronically transmitted data or 

7 information, written or oral statement, or act that is 

8 material and false, or any omission that is material, 

9 and that results in any cash deposit or other security 

10 or any amount of applicable antidumping or counter11 vailing duties being reduced or not being applied with 

12 respect to the merchandise. 

13 (6) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of the Treasury. 

15 (7) TRADE REMEDY LAWS.—The term ‘‘trade 

16 remedy laws’’ means title VII of the Tariff Act of 

17 1930. 

18 SEC. 403. APPLICATION TO CANADA AND MEXICO. 

19 Pursuant to article 1902 of the North American Free 

20 Trade Agreement and section 408 of the North American 

21 Free Trade Agreement Implementation Act (19 U.S.C. 

22 3438), this title and the amendments made by this title 

23 shall apply with respect to goods from Canada and Mexico. 


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1 Subtitle A—Actions Relating to 

2 Enforcement of Trade Remedy Laws 

3 SEC. 411. TRADE REMEDY LAW ENFORCEMENT DIVISION. 

4 (a) ESTABLISHMENT.— 

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

6 Security shall establish and maintain within the Of7 fice of International Trade of U.S. Customs and Bor8 der Protection, established under section 2(d) of the 

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

10 U.S.C. 2072(d)), a Trade Remedy Law Enforcement 

11 Division. 

12 (2) COMPOSITION.—The Trade Law Remedy En13 forcement Division shall be composed of— 

14 (A) headquarters personnel led by a Direc15 tor, who shall report to the Assistant Commis16 sioner of the Office of International Trade; and 

17 (B) a National Targeting and Analysis 

18 Group dedicated to preventing and countering 

19 evasion. 

20 (3) DUTIES.—The Trade Remedy Law Enforce21 ment Division shall be dedicated— 

22 (A) to the development and administration 

23 of policies to prevent and counter evasion; 

24 (B) to direct enforcement and compliance 

25 assessment activities concerning evasion; 


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1 (C) to the development and conduct of com2 mercial risk assessment targeting with respect to 

3 cargo destined for the United States in accord4 ance with subsection (c); 

5 (D) to issuing Trade Alerts described in 

6 subsection (d); and 

7 (E) to the development of policies for the 

8 application of single entry and continuous bonds 

9 for entries of covered merchandise to sufficiently 

10 protect the collection of antidumping and coun11 tervailing duties commensurate with the level of 

12 risk of noncollection. 

13 (b) DUTIES OF DIRECTOR.—The duties of the Director 

14 of the Trade Remedy Law Enforcement Division shall in15 clude— 

16 (1) directing the trade enforcement and compli17 ance assessment activities of U.S. Customs and Bor18 der Protection that concern evasion; 

19 (2) facilitating, promoting, and coordinating co20 operation and the exchange of information between 

21 U.S. Customs and Border Protection, U.S. Immigra22 tion and Customs Enforcement, and other relevant 

23 agencies regarding evasion; 

24 (3) notifying on a timely basis the administering 

25 authority (as defined in section 771(1) of the Tariff 


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1 Act of 1930 (19 U.S.C. 1677(1))) and the Commission 

2 (as defined in section 771(2) of the Tariff Act of 1930 

3 (19 U.S.C. 1677(2))) of any finding, determination, 

4 civil action, or criminal action taken by U.S. Cus5 toms and Border Protection or other Federal agency 

6 regarding evasion; 

7 (4) serving as the primary liaison between U.S. 

8 Customs and Border Protection and the public re9 garding United States Government activities con10 cerning evasion, including— 

11 (A) receive and transmit to the appropriate 

12 U.S. Customs and Border Protection office alle13 gations from parties of evasion; 

14 (B) upon request by the party or parties 

15 that submitted an allegation of evasion, provide 

16 information to such party or parties on the sta17 tus of U.S. Customs and Border Protection’s con18 sideration of the allegation and decision to pur19 sue or not pursue any administrative inquiries 

20 or other actions, such as changes in policies, pro21 cedures, or resource allocation as a result of the 

22 allegation; 

23 (C) as needed, request from the party or 

24 parties that submitted an allegation of evasion 

25 any additional information that may be relevant 


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1 for U.S. Customs and Border Protection deter2 mining whether to initiate an administrative in3 quiry or take any other action regarding the al4 legation; 

5 (D) notify on a timely basis the party or 

6 parties that submitted such an allegation of the 

7 results of any administrative, civil or criminal 

8 actions taken by U.S. Customs and Border Pro9 tection or other Federal agency regarding eva10 sion as a direct or indirect result of the allega11 tion; 

12 (E) upon request, provide technical assist13 ance and advice to eligible small businesses to 

14 enable such businesses to prepare and submit al15 legations of evasion, except that the Director may 

16 deny assistance if the Director concludes that the 

17 allegation, if submitted, would not lead to the 

18 initiation of an administrative inquiry or any 

19 other action to address the allegation; 

20 (F) in cooperation with the public, the 

21 Commercial Customs Operations Advisory Com22 mittee, the Trade Support Network, and any 

23 other relevant parties and organizations, develop 

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1 tion that may be provided in allegations of eva2 sion; and 

3 (G) regularly consult with the public, the 

4 Commercial Customs Operations Advisory Com5 mittee, the Trade Support Network, and any 

6 other relevant parties and organizations regard7 ing the development and implementation of regu8 lations, interpretations, and policies related to 

9 countering evasion. 

10 (c) PREVENTING AND COUNTERING EVASION OF THE

11 TRADE REMEDY LAWS.—In carrying out its duties with 

12 respect to preventing and countering evasion, the National 

13 Targeting and Analysis Group dedicated to preventing and 

14 countering evasion shall— 

15 (1) establish targeted risk assessment methodolo16 gies and standards— 

17 (A) for evaluating the risk that cargo des18 tined for the United States may constitute evad19 ing covered merchandise; and 

20 (B) for issuing, as appropriate, Trade 

21 Alerts described in subsection (d); and 

22 (2) to the extent practicable and otherwise au23 thorized by law, use information available from the 

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1 mated Targeting System, the Automated Export Sys2 tem, the International Trade Data System, and the 

3 TECS, and any similar and successor systems, to ad4 minister the methodologies and standards established 

5 under paragraph (1). 

6 (d) TRADE ALERTS.—Based upon the application of 

7 the targeted risk assessment methodologies and standards 

8 established under subsection (c), the Director of the Trade 

9 Remedy Law Enforcement Division shall issue Trade Alerts 

10 or other such means of notification to directors of United 

11 States ports of entry directing further inspection, physical 

12 examination, or testing of merchandise to ensure compli13 ance with the trade remedy laws and to require additional 

14 bonds, cash deposits, or other security to ensure collection 

15 of any duties, taxes and fees owed. 

16 SEC. 412. COLLECTION OF INFORMATION ON EVASION OF 

17 TRADE REMEDY LAWS. 

18 (a) AUTHORITY TO COLLECT INFORMATION.—To de19 termine whether covered merchandise is being entered into 

20 the customs territory of the United States through evasion, 

21 the Secretary, acting through the Commissioner— 

22 (1) shall exercise all existing authorities to collect 

23 information needed to make the determination; and 

24 (2) may collect such additional information as is 

25 necessary to make the determination through such 


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1 methods as the Commissioner considers appropriate, 

2 including by issuing questionnaires with respect to 

3 the entry or entries at issue to— 

4 (A) a person who filed an allegation with 

5 respect to the covered merchandise; 

6 (B) a person who is alleged to have entered 

7 the covered merchandise into the customs terri8 tory of the United States through evasion; or 

9 (C) any other person who is determined to 

10 have information relevant to the allegation of 

11 entry of covered merchandise into the customs 

12 territory of the United States through evasion. 

13 (b) ADVERSE INFERENCE.— 

14 (1) IN GENERAL.—If the Secretary finds that a 

15 person who filed an allegation, a person alleged to 

16 have entered covered merchandise into the customs 

17 territory of the United States through evasion, or a 

18 foreign producer or exporter of covered merchandise 

19 that is alleged to have entered into the customs terri20 tory of the United States through evasion, has failed 

21 to cooperate by not acting to the best of the person’s 

22 ability to comply with a request for information, the 

23 Secretary may, in making a determination whether 

24 an entry or entries of covered merchandise may con25 stitute merchandise that is entered into the customs 


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1 territory of the United States through evasion, use an 

2 inference that is adverse to the interests of that person 

3 in selecting from among the facts otherwise available 

4 to determine whether evasion has occurred. 

5 (2) ADVERSE INFERENCE DESCRIBED.—An ad6 verse inference used under paragraph (1) may include 

7 reliance on information derived from— 

8 (A) the allegation of evasion of the trade 

9 remedy laws, if any, submitted to U.S. Customs 

10 and Border Protection; 

11 (B) a determination by the Commissioner 

12 in another investigation, proceeding, or other ac13 tion regarding evasion of the unfair trade laws; 

14 or 

15 (C) any other available information. 

16 SEC. 413. ACCESS TO INFORMATION. 

17 (a) IN GENERAL.—Section 777(b)(1)(A)(ii) of the Tar18 iff Act of 1930 (19 U.S.C. 1677f(b)(1)(A)(ii)) is amended 

19 by inserting ‘‘negligence, gross negligence, or’’ after ‘‘regard20 ing’’. 

21 (b) ADDITIONAL INFORMATION.—Notwithstanding any 

22 other provision of law, the Secretary is authorized to pro23 vide to the Secretary of Commerce or the United States 

24 International Trade Commission any information that is 

25 necessary to enable the Secretary of Commerce or the United 


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1 States International Trade Commission to assist the Sec2 retary to identify, through risk assessment targeting or oth3 erwise, covered merchandise that is entered into the customs 

4 territory of the United States through evasion. 

5 SEC. 414. COOPERATION WITH FOREIGN COUNTRIES ON 

6 PREVENTING EVASION OF TRADE REMEDY 

7 LAWS. 

8 (a) BILATERAL AGREEMENTS.— 

9 (1) IN GENERAL.—The Secretary shall seek to ne10 gotiate and enter into bilateral agreements with the 

11 customs authorities or other appropriate authorities 

12 of foreign countries for purposes of cooperation on 

13 preventing evasion of the trade remedy laws of the 

14 United States and the trade remedy laws of the other 

15 country. 

16 (2) PROVISIONS AND AUTHORITIES.—The Sec17 retary shall seek to include in each such bilateral 

18 agreement the following provisions and authorities: 

19 (A) On the request of the importing coun20 try, the exporting country shall provide, con21 sistent with its laws, regulations, and proce22 dures, production, trade, and transit documents 

23 and other information necessary to determine 

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1 porting country are subject to the importing 

2 country’s trade remedy laws. 

3 (B) On the written request of the importing 

4 country, the exporting country shall conduct a 

5 verification for purposes of enabling the import6 ing country to make a determination described 

7 in subparagraph (A). 

8 (C) The exporting country may allow the 

9 importing country to participate in a 

10 verification described in subparagraph (B), in11 cluding through a site visit. 

12 (D) If the exporting country does not allow 

13 participation of the importing country in a 

14 verification described in subparagraph (B), the 

15 importing country may take this fact into con16 sideration in its trade enforcement and compli17 ance assessment activities regarding the compli18 ance of the exporting country’s exports with the 

19 importing country’s trade remedy laws. 

20 (b) CONSIDERATION.—The Commissioner is authorized 

21 to take into consideration whether a country is a signatory 

22 to a bilateral agreement described in subsection (a) and the 

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1 pliance assessment activities of U.S. Customs and Border 

2 Protection that concern evasion by such country’s exports. 

3 (c) REPORT.—Not later than December 31 of each year 

4 beginning after the date of the enactment of this Act, the 

5 Secretary shall submit to the appropriate congressional 

6 committees a report summarizing— 

7 (1) the status of any ongoing negotiations of bi8 lateral agreements described in subsection (a), includ9 ing the identities of the countries involved in such ne10 gotiations; 

11 (2) the terms of any completed bilateral agree12 ments described in subsection (a); and 

13 (3) bilateral cooperation and other activities con14 ducted pursuant to or enabled by any completed bilat15 eral agreements described in subsection (a). 

16 SEC. 415. TRADE NEGOTIATING OBJECTIVES. 

17 The principal negotiating objectives of the United 

18 States shall include obtaining the objectives of the bilateral 

19 agreements described under section 414(a) for any trade 

20 agreements under negotiation as of the date of the enact21 ment of this Act or future trade agreement negotiations. 


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1 Subtitle B—Investigation of 

2 Evasion of Trade Remedy Laws 

3 SEC. 421. PROCEDURES FOR INVESTIGATION OF EVASION 

4 OF ANTIDUMPING AND COUNTERVAILING 

5 DUTY ORDERS. 

6 (a) IN GENERAL.—Title VII of the Tariff Act of 1930 

7 (19 U.S.C. 1671 et seq.) is amended by inserting after sec8 tion 781 the following: 

9 ‘‘SEC. 781A. PROCEDURES FOR PREVENTION OF EVASION 

10 OF ANTIDUMPING AND COUNTERVAILING 

11 DUTY ORDERS. 

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

13 ‘‘(1) ADMINISTERING AUTHORITY.—The term 

14 ‘administering authority’ has the meaning given that 

15 term in section 771. 

16 ‘‘(2) COMMISSIONER.—The term ‘Commissioner’ 

17 means the Commissioner responsible for U.S. Customs 

18 and Border Protection. 

19 ‘‘(3) COVERED MERCHANDISE.—The term ‘cov20 ered merchandise’ means merchandise that is subject 

21 to— 

22 ‘‘(A) a countervailing duty order issued 

23 under section 706; or 

24 ‘‘(B) an antidumping duty order issued 

25 under section 736. 


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1 ‘‘(4) EVASION.— 

2 ‘‘(A) IN GENERAL.—Except as provided in 

3 subparagraph (B), the term ‘evasion’ refers to 

4 entering covered merchandise into the customs 

5 territory of the United States by means of any 

6 document or electronically transmitted data or 

7 information, written or oral statement, or act 

8 that is material and false, or any omission that 

9 is material, and that results in any cash deposit 

10 or other security or any amount of applicable 

11 antidumping or countervailing duties being re12 duced or not being applied with respect to the 

13 merchandise. 

14 ‘‘(B) EXCEPTION FOR CLERICAL ERROR.— 

15 ‘‘(i) IN GENERAL.—Except as provided 

16 in clause (ii), the term ‘evasion’ does not 

17 include entering covered merchandise into 

18 the customs territory of the United States 

19 by means of— 

20 ‘‘(I) a document or electronically 

21 transmitted data or information, writ22 ten or oral statement, or act that is 

23 false as a result of a clerical error; or 

24 ‘‘(II) an omission that results 

25 from a clerical error. 


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1 ‘‘(ii) PATTERNS OF NEGLIGENT CON2 DUCT.—If the Commissioner determines 

3 that a person has entered covered merchan4 dise into the customs territory of the United 

5 States by means of a clerical error referred 

6 to in subclause (I) or (II) of clause (i) and 

7 that the clerical error is part of a pattern 

8 of negligent conduct on the part of that per9 son, the Commissioner may determine, not10 withstanding clause (i), that the person has 

11 entered such covered merchandise into the 

12 customs territory of the United States 

13 through evasion. 

14 ‘‘(iii) ELECTRONIC REPETITION OF ER15 RORS.—For purposes of clause (ii), the mere 

16 nonintentional repetition by an electronic 

17 system of an initial clerical error does not 

18 constitute a pattern of negligent conduct. 

19 ‘‘(iv) RULE OF CONSTRUCTION.—A de20 termination by the Commissioner that a 

21 person has entered covered merchandise into 

22 the customs territory of the United States 

23 by means of a clerical error referred to in 

24 subclause (I) or (II) of clause (i) rather 

25 than through evasion shall not be construed 


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1 to excuse that person from the payment of 

2 any duties applicable to the merchandise. 

3 ‘‘(b) PREVENTION BY ADMINISTERING AUTHORITY.— 

4 ‘‘(1) PROCEDURES FOR INITIATING INVESTIGA5 TIONS.— 

6 ‘‘(A) INITIATION BY ADMINISTERING AU7 THORITY.—An investigation under this sub8 section shall be initiated with respect to mer9 chandise imported into the United States when10 ever the administering authority determines, 

11 from information available to the administering 

12 authority, that an investigation is warranted 

13 with respect to whether the merchandise is cov14 ered merchandise. 

15 ‘‘(B) INITIATION BY PETITION OR REFER16 RAL.— 

17 ‘‘(i) IN GENERAL.—The administering 

18 authority shall determine whether to ini19 tiate an investigation under this subpara20 graph not later than 30 days after the date 

21 on which the administering authority re22 ceives a petition described in clause (ii) or 

23 a referral described in clause (iii). 


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1 ‘‘(ii) PETITION DESCRIBED.—A peti2 tion described in this clause is a petition 

3 that— 

4 ‘‘(I) is filed with the admin5 istering authority by an interested 

6 party specified in subparagraph (A), 

7 (C), (D), (E), (F), or (G) of section 

8 771(9); 

9 ‘‘(II) alleges that merchandise im10 ported into the United States is cov11 ered merchandise; and 

12 ‘‘(III) is accompanied by infor13 mation reasonably available to the pe14 titioner supporting those allegations. 

15 ‘‘(iii) REFERRAL DESCRIBED.—A re16 ferral described in this clause is a referral 

17 made by the Commissioner pursuant to sub18 section (c)(1). 

19 ‘‘(2) TIME LIMITS FOR DETERMINATIONS.— 

20 ‘‘(A) PRELIMINARY DETERMINATION.— 

21 ‘‘(i) IN GENERAL.—Not later than 90 

22 days after the administering authority ini23 tiates an investigation under paragraph (1) 

24 with respect to merchandise, the admin25 istering authority shall issue a preliminary 


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1 determination, based on information avail2 able to the administering authority at the 

3 time of the determination, with respect to 

4 whether there is a reasonable basis to believe 

5 or suspect that the merchandise is covered 

6 merchandise. 

7 ‘‘(ii) EXPEDITED PROCEDURES.—If the 

8 administering authority determines that ex9 pedited action is warranted with respect to 

10 an investigation initiated under paragraph 

11 (1), the administering authority may pub12 lish the notice of initiation of the investiga13 tion and the notice of the preliminary deter14 mination in the Federal Register at the 

15 same time. 

16 ‘‘(B) FINAL DETERMINATION BY THE AD17 MINISTERING AUTHORITY.—The administering 

18 authority shall issue a final determination with 

19 respect to whether merchandise is covered mer20 chandise not later than 300 days after the date 

21 on which the administering authority initiates 

22 an investigation under paragraph (1) with re23 spect to the merchandise. 

24 ‘‘(3) ACCESS TO INFORMATION.— 


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1 ‘‘(A) ENTRY DOCUMENTS, RECORDS, AND

2 OTHER INFORMATION.—Upon receiving a request 

3 from the administering authority, and not later 

4 than 10 days after receiving the administering 

5 authority’s request, the Commissioner shall 

6 transmit to the administering authority copies of 

7 the documentation and information required by 

8 section 484(a)(1) with respect to the entry of the 

9 merchandise, as well as any other documentation 

10 or information requested by the administering 

11 authority. 

12 ‘‘(B) ACCESS OF INTERESTED PARTIES.— 

13 Not later than 10 business days after the date on 

14 which the administering authority initiates an 

15 investigation under paragraph (1) with respect 

16 to merchandise, the administering authority 

17 shall provide to the authorized representative of 

18 each interested party that filed a petition under 

19 paragraph (1) or otherwise participates in a 

20 proceeding, pursuant to a protective order, the 

21 copies of the entry documentation and any other 

22 information received by the administering au23 thority under subparagraph (A). 

24 ‘‘(C) BUSINESS PROPRIETARY INFORMATION

25 FROM PRIOR SEGMENTS.—Where an authorized 


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1 representative to an interested party partici2 pating in an investigation under paragraph (1) 

3 has access to business proprietary information 

4 released pursuant to administrative protective 

5 order in a proceeding under 19 U.S.C. §§ 1671 

6 et seq., 1673 et seq., or 1675 et seq. that is rel7 evant to the investigation conducted under para8 graph (1), that authorized representative may 

9 submit such information to the administering 

10 authority for its consideration in the context of 

11 the investigation conducted under paragraph (1). 

12 ‘‘(4) AUTHORITY TO COLLECT AND VERIFY ADDI13 TIONAL INFORMATION.—In making a determination 

14 under paragraph (2) with respect to covered merchan15 dise, the administering authority may collect such ad16 ditional information as is necessary to make the de17 termination through such methods as the admin18 istering authority considers appropriate, including 

19 by— 

20 ‘‘(A) issuing a questionnaire with respect to 

21 such covered merchandise to— 

22 ‘‘(i) a person that filed an allegation 

23 under paragraph (1)(B)(ii) that resulted in 

24 the initiation of an investigation under 


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1 paragraph (1)(A) with respect to such cov2 ered merchandise; 

3 ‘‘(ii) a person alleged to have entered 

4 such covered merchandise into the customs 

5 territory of the United States through eva6 sion; 

7 ‘‘(iii) a person that is a foreign pro8 ducer or exporter of such covered merchan9 dise; or 

10 ‘‘(iv) the government of a country from 

11 which such covered merchandise was ex12 ported; 

13 ‘‘(B) conducting verifications, including on14 site verifications, of any relevant information; 

15 and 

16 ‘‘(C) requesting— 

17 ‘‘(i) that the Commissioner provide 

18 any information and data available to U.S. 

19 Customs and Border Protection, and 

20 ‘‘(ii) that the Commissioner gather ad21 ditional necessary information from the im22 porter of covered merchandise and other rel23 evant parties. 

24 ‘‘(5) ADVERSE INFERENCE.—If the admin25 istering authority finds that a person described in 


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1 clause (i), (ii), or (iii) of paragraph (4)(A) has failed 

2 to cooperate by not acting to the best of the person’s 

3 ability to comply with a request for information, the 

4 administering authority may, in making a deter5 mination under paragraph (2), use an inference that 

6 is adverse to the interests of that person in selecting 

7 from among the facts otherwise available to make the 

8 determination. 

9 ‘‘(6) EFFECT OF AFFIRMATIVE PRELIMINARY DE10 TERMINATION.—If the administering authority makes 

11 a preliminary determination under paragraph (2)(A) 

12 that merchandise is covered merchandise, the admin13 istering authority shall instruct U.S. Customs and 

14 Border Protection— 

15 ‘‘(A) to suspend liquidation of each entry of 

16 the merchandise that— 

17 ‘‘(i) enters on or after the date of the 

18 preliminary determination; or 

19 ‘‘(ii) enters before that date, if the liq20 uidation of the entry is not final on that 

21 date; and 

22 ‘‘(B) to require the posting of a cash deposit 

23 for each entry of the merchandise in an amount 

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1 tive review conducted under section 751, that ap2 plies to the merchandise. 

3 ‘‘(7) EFFECT OF AFFIRMATIVE FINAL DETER4 MINATION.— 

5 ‘‘(A) IN GENERAL.—If the administering 

6 authority makes a final determination under 

7 paragraph (2)(B) that merchandise is covered 

8 merchandise, the administering authority shall 

9 instruct U.S. Customs and Border Protection— 

10 ‘‘(i) to assess duties on the merchandise 

11 in an amount determined pursuant to the 

12 order or finding described in subsection 

13 (a)(2)(A)(i), or administrative review con14 ducted under section 751, that applies to the 

15 merchandise; 

16 ‘‘(ii) notwithstanding section 501, to 

17 reliquidate, in accordance with such order, 

18 finding, or administrative review, each 

19 entry of the merchandise that was liq20 uidated and is determined to include cov21 ered merchandise; and 

22 ‘‘(iii) to review and reassess the 

23 amount of bond or other security the im24 porter is required to post for such merchan25 dise entered on or after the date of the final 


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1 determination to ensure the protection of 

2 revenue and compliance with the law. 

3 ‘‘(B) ADDITIONAL AUTHORITY.—If the ad4 ministering authority makes a final determina5 tion under paragraph (2)(B) that merchandise is 

6 covered merchandise, the administering author7 ity may instruct U.S. Customs and Border Pro8 tection to require the importer of the merchan9 dise to post a cash deposit or bond on such mer10 chandise entered on or after the date of the final 

11 determination in an amount the administering 

12 authority determines in the final determination 

13 to be owed with respect to the merchandise. 

14 ‘‘(8) EFFECT OF NEGATIVE FINAL DETERMINA15 TION.—If the administering authority makes a final 

16 determination under paragraph (2)(B) that merchan17 dise is not covered merchandise, the administering 

18 authority shall terminate the suspension of liquida19 tion and refund any cash deposit imposed pursuant 

20 to paragraph (6) with respect to the merchandise. 

21 ‘‘(9) NOTIFICATION.—Not later than 5 business 

22 days after making a determination under paragraph 

23 (2) with respect to covered merchandise, the admin24 istering authority may provide to importers, in such 

25 manner as the administering authority determines 


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1 appropriate, information discovered in the investiga2 tion that the administering authority determines will 

3 help educate importers with respect to importing mer4 chandise into the customs territory of the United 

5 States in accordance with all applicable laws and 

6 regulations. 

7 ‘‘(10) SPECIAL RULE FOR CASES IN WHICH THE

8 PRODUCER OR EXPORTER IS UNKNOWN.—If the ad9 ministering authority is unable to determine the ac10 tual producer or exporter of the merchandise with re11 spect to which the administering authority initiated 

12 an investigation under paragraph (1), the admin13 istering authority shall, in requiring the posting of a 

14 cash deposit under paragraph (6) or assessing duties 

15 pursuant to paragraph (7)(A), impose the cash de16 posit or duties (as the case may be) in the highest 

17 amount applicable to any producer or exporter of the 

18 merchandise pursuant to any order or finding de19 scribed in subsection (a)(2)(A)(i), or any administra20 tive review conducted under section 751. 

21 ‘‘(11) PUBLICATION OF DETERMINATIONS.—The 

22 administering authority shall publish each notice of 

23 initiation of investigation made under paragraph 

24 (1)(A), each preliminary determination made under 


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1 paragraph (2)(A) and each final determination made 

2 under paragraph (2)(B) in the Federal Register. 

3 ‘‘(12) REFERRALS TO OTHER AGENCIES.— 

4 ‘‘(A) AFTER PRELIMINARY DETERMINA5 TION.—Notwithstanding section 777 and subject 

6 to subparagraph (C), when the administering 

7 authority makes an affirmative preliminary de8 termination under paragraph (2)(A), the admin9 istering authority shall— 

10 ‘‘(i) transmit the administrative record 

11 to the Commissioner for such additional ac12 tion as the Commissioner determines appro13 priate, including proceedings under section 

14 592; and 

15 ‘‘(ii) at the request of the head of an16 other agency, transmit the administrative 

17 record to the head of that agency. 

18 ‘‘(B) AFTER FINAL DETERMINATION.—Not19 withstanding section 777 and subject to subpara20 graph (C), when the administering authority 

21 makes an affirmative final determination under 

22 paragraph (2)(B), the administering authority 

23 shall— 

24 ‘‘(i) transmit the complete administra25 tive record to the Commissioner; and 


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1 ‘‘(ii) at the request of the head of an2 other agency, transmit the complete admin3 istrative record to the head of that agency. 

4 ‘‘(c) PREVENTION BY U.S. CUSTOMS AND BORDER

5 PROTECTION.—In the event the Commissioner receives in6 formation that a person is entered covered merchandise into 

7 the customs territory of the United States through evasion, 

8 but is not able to determine whether the merchandise is in 

9 fact covered merchandise, the Commissioner shall— 

10 ‘‘(A) refer the matter to the administering 

11 authority for additional proceedings under sub12 section (b); and 

13 ‘‘(B) transmit to the administering author14 ity— 

15 ‘‘(i) copies of the entry documents and 

16 information required by section 484(a)(1) 

17 relating to the merchandise; and 

18 ‘‘(ii) any additional records or infor19 mation that the Commissioner considers ap20 propriate. 

21 ‘‘(d) COOPERATION BETWEEN U.S. CUSTOMS AND

22 BORDER PROTECTION AND THE DEPARTMENT OF COM23 MERCE.— 

24 ‘‘(1) NOTIFICATION OF INVESTIGATIONS.—Upon 

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1 tion under subsection (b), the administering authority 

2 shall notify the Commissioner. 

3 ‘‘(2) PROCEDURES FOR COOPERATION.—Not 

4 later than 180 days after the date of the enactment 

5 of this Act , the Commissioner and the administering 

6 authority shall establish procedures to ensure max7 imum cooperation and communication between U.S. 

8 Customs and Border Protection and the admin9 istering authority in order to quickly, efficiently, and 

10 accurately investigate allegations of evasion of anti11 dumping and countervailing duty orders. 

12 ‘‘(e) ANNUAL REPORT ON PREVENTING EVASION OF

13 ANTIDUMPING AND COUNTERVAILING DUTY ORDERS.— 

14 ‘‘(1) IN GENERAL.—Not later than February 28 

15 of each year beginning in 2016, the Under Secretary 

16 for International Trade of the Department of Com17 merce shall submit to the Committee on Finance and 

18 the Committee on Appropriations of the Senate and 

19 the Committee on Ways and Means and the Com20 mittee on Appropriations of the House of Representa21 tives a report on the efforts being taken under sub22 section (b) to prevent evasion of antidumping and 

23 countervailing duty orders. 


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1 ‘‘(2) CONTENTS.—Each report required by para2 graph (1) shall include, for the year preceding the 

3 submission of the report— 

4 ‘‘(A)(i) the number of investigations initi5 ated pursuant to subsection (b); and 

6 ‘‘(ii) a description of such investigations, 

7 including— 

8 ‘‘(I) the results of such investigations; 

9 and 

10 ‘‘(II) the amount of antidumping and 

11 countervailing duties collected as a result of 

12 such investigations; and 

13 ‘‘(B) the number of referrals made by the 

14 Commissioner pursuant to subsection (c).’’. 

15 (b) TECHNICAL AMENDMENT.—The table of contents 

16 for title VII of the Tariff Act of 1930 is amended by insert17 ing after the item relating to section 781 the following: 

‘‘Sec. 781A. Procedures for prevention of evasion of antidumping and countervailing duty orders.’’. 

18 (c) JUDICIAL REVIEW.—Section 516A(a)(2) of the 

19 Tariff Act of 1930 (19 U.S.C. 1516a(a)(2)) is amended— 

20 (1) in subparagraph (A)(i)(I), by striking ‘‘or 

21 (viii)’’ and inserting ‘‘(viii), or (ix)’’; and 

22 (2) in subparagraph (B), by inserting at the end 

23 the following: 


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1 ‘‘(ix) A determination by the admin2 istering authority under section 781A.’’. 

3 (d) REGULATIONS.—Not later than 180 days after the 

4 date of the enactment of this Act— 

5 (1) the Secretary of Commerce shall prescribe 

6 such regulations as may be necessary to carry out 

7 subsection (b) of section 781A of the Tariff Act of 

8 1930 (as added by subsection (a) of this section); and 

9 (2) the Commissioner responsible for U.S. Cus10 toms and Border Protection shall prescribe such regu11 lations as may be necessary to carry out subsection 

12 (c) of such section 781A. 

13 (e) EFFECTIVE DATE.—The amendments made by this 

14 section shall— 

15 (1) take effect on the date that is 180 days after 

16 the date of the enactment of this Act; and 

17 (2) apply with respect to merchandise entered on 

18 or after such date of enactment. 

19 SEC. 422. GOVERNMENT ACCOUNTABILITY OFFICE REPORT. 

20 Not later than 2 years after the date of the enactment 

21 of this Act, the Comptroller General of the United States 

22 shall submit to the Committee on Finance and the Com23 mittee on Appropriations of the Senate and the Committee 

24 on Ways and Means and the Committee on Appropriations 


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1 of the House of Representatives a report assessing the effec2 tiveness of— 

3 (1) the provisions of, and amendments made by, 

4 this Act; and 

5 (2) the actions taken and procedures developed 

6 by the Secretary of Commerce and the Commissioner 

7 pursuant to such provisions and amendments to pre8 vent evasion of antidumping and countervailing duty 

9 orders under title VII of the Tariff Act of 1930 (19 

10 U.S.C. 1671 et seq.). 

11 Subtitle C—Other Matters 

12 SEC. 431. ALLOCATION AND TRAINING OF PERSONNEL. 

13 The Commissioner shall, to the maximum extent pos14 sible, ensure that U.S. Customs and Border Protection— 

15 (1) employs sufficient personnel who have exper16 tise in, and responsibility for, preventing and inves17 tigating the entry of covered merchandise into the 

18 customs territory of the United States through eva19 sion; 

20 (2) on the basis of risk assessment metrics, as21 signs sufficient personnel with primary responsibility 

22 for preventing the entry of covered merchandise into 

23 the customs territory of the United States through 

24 evasion to the ports of entry in the United States at 

25 which the Commissioner determines potential evasion 


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1 presents the most substantial threats to the revenue of 

2 the United States; and 

3 (3) provides adequate training to relevant per4 sonnel to increase expertise and effectiveness in the 

5 prevention and identification of entries of covered 

6 merchandise into the customs territory of the United 

7 States through evasion. 

8 SEC. 432. ANNUAL REPORT ON PREVENTION OF EVASION 

9 OF ANTIDUMPING AND COUNTERVAILING 

10 DUTY ORDERS. 

11 (a) IN GENERAL.—Not later than February 28 of each 

12 year, beginning in 2014, the Commissioner, in consultation 

13 with the Secretary of Commerce and the Director for U.S. 

14 Immigration and Customs Enforcement, shall submit to the 

15 appropriate congressional committees a report on the efforts 

16 being taken to prevent and investigate evasion. 

17 (b) CONTENTS.—Each report required under sub18 section (a) shall include— 

19 (1) for the calendar year preceding the submis20 sion of the report— 

21 (A) a summary of the efforts of U.S. Cus22 toms and Border Protection to prevent and iden23 tify evasion; 

24 (B) the number of allegations of evasion re25 ceived and the number of allegations of evasion 


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1 resulting in any administrative, civil, or crimi2 nal actions by U.S. Customs and Border Protec3 tion or any other agency; 

4 (C) a summary of the completed adminis5 trative inquiries of evasion, including the num6 ber and nature of the inquiries initiated, con7 ducted, or completed, as well as their resolution; 

8 (D) with respect to inquiries that lead to 

9 lead to issuance of a penalty notice, the penalty 

10 amounts; 

11 (E) the amounts of antidumping and coun12 tervailing duties collected as a result of any ac13 tions by U.S. Customs and Border Protection or 

14 any other agency; 

15 (F) a description of the allocation of per16 sonnel and other resources of U.S. Customs and 

17 Border Protection and U.S. Immigration and 

18 Customs Enforcement to prevent, identify and 

19 investigate evasion, including any assessments 

20 conducted regarding the allocation of such per21 sonnel and resources; and 

22 (G) a description of training conducted to 

23 increase expertise and effectiveness in the preven24 tion, identification and investigation of evasion; 

25 and 


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1 (2) a description of U.S. Customs and Border 

2 Protection processes and procedures to prevent and 

3 identify evasion, including— 

4 (A) the specific guidelines, policies, and 

5 practices used by U.S. Customs and Border Pro6 tection to ensure that allegations of evasion are 

7 promptly evaluated and acted upon in a timely 

8 manner; 

9 (B) an evaluation of the efficacy of such ex10 isting guidelines, policies, and practices; 

11 (C) identification of any changes since the 

12 last report that have materially improved or re13 duced the effectiveness of U.S. Customs and Bor14 der Protection to prevent and identify evasion; 

15 (D) a description of the development and 

16 implementation of policies for the application of 

17 single entry and continuous bonds for entries of 

18 covered merchandise to sufficiently protect the 

19 collection of antidumping and countervailing du20 ties commensurate with the level of risk on non21 collection; 

22 (E) the processes and procedures for in23 creased cooperation and information sharing 

24 with the Department of Commerce, U.S. Immi25 gration and Customs Enforcement, and any 


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1 other relevant Federal agencies to prevent and 

2 identify evasion; and 

3 (F) identification of any recommended pol4 icy changes of other Federal agencies or legisla5 tive changes to improve the effectiveness of U.S. 

6 Customs and Border Protection to prevent and 

7 identify evasion. 

8 SEC. 433. ADDRESSING CIRCUMVENTION BY NEW SHIPPERS. 

9 Section 751(a)(2)(B) of the Tariff Act of 1930 (19 

10 U.S.C. 1675(a)(2)(B)) is amended— 

11 (1) by striking clause (iii); 

12 (2) by redesignating clause (iv) as clause (iii); 

13 and 

14 (3) inserting after clause (iii), as redesignated by 

15 paragraph (2) of this section, the following: 

16 ‘‘(iv) DETERMINATIONS BASED ON

17 BONAFIDE SALES.—Any weighted average 

18 dumping margin or individual counter19 vailing duty rate determined for an ex20 porter or producer in a review conducted 

21 under clause (i) shall be based solely on the 

22 bona fide United States sales of an exporter 

23 or producer, as the case may be, made dur24 ing the period covered by the review. In de25 termining whether the United States sales of 


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1 an exporter or producer made during the 

2 period covered by the review were bona fide, 

3 the administering authority shall consider, 

4 depending on the circumstances sur5 rounding such sales— 

6 ‘‘(I) the prices of such sales; 

7 ‘‘(II) whether such sales were 

8 made in commercial quantities; 

9 ‘‘(III) the timing of such sales; 

10 ‘‘(IV) the expenses arising from 

11 such sales; 

12 ‘‘(V) whether the subject merchan13 dise involved in such sales were resold 

14 in the United States at a profit; 

15 ‘‘(VI) whether such sales were 

16 made on an arms-length basis; and 

17 ‘‘(VII) any other factor the ad18 ministering authority determines to be 

19 relevant as to whether such sales are, 

20 or are not, likely to be typical of those 

21 the exporter or producer will make 

22 after completion of the review.’’. 


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1 TITLE V—ADDITIONAL 

2 ENFORCEMENT PROVISIONS 

3 SEC. 501. TRADE ENFORCEMENT PRIORITIES. 

4 (a) IN GENERAL.—Section 310 of the Trade Act of 

5 1974 (19 U.S.C. 2420) is amended to read as follows: 

6 ‘‘SEC. 310. TRADE ENFORCEMENT PRIORITIES. 

7 ‘‘(a) TRADE ENFORCEMENT PRIORITIES, CONSULTA8 TIONS, AND REPORT.— 

9 ‘‘(1) TRADE ENFORCEMENT PRIORITIES CON10 SULTATIONS.—Not later than May 31 of each cal11 endar year that begins after the date of the enactment 

12 of the Trade Facilitation and Trade Enforcement Act 

13 of 2015, the United States Trade Representative (in 

14 this section referred to as the ‘Trade Representative’) 

15 shall consult with the Committee on Finance of the 

16 Senate and the Committee on Ways and Means of the 

17 House of Representatives with respect to the 

18 prioritization of acts, policies, or practices of foreign 

19 governments that raise concerns with respect to obli20 gations under the WTO Agreements or any other 

21 trade agreement to which the United States is a 

22 party, or otherwise create or maintain barriers to 

23 United States goods, services, or investment. 

24 ‘‘(2) IDENTIFICATION OF TRADE ENFORCEMENT

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1 tices of foreign governments as trade enforcement pri2 orities under this subsection, the United States Trade 

3 Representative shall focus on those acts, policies, and 

4 practices the elimination of which is likely to have the 

5 most significant potential to increase United States 

6 economic growth, and take into account all relevant 

7 factors, including— 

8 ‘‘(A) the economic significance of any po9 tential inconsistency between an obligation as10 sumed by a foreign government pursuant to a 

11 trade agreement to which both the foreign gov12 ernment and the United States are parties and 

13 the acts, policies, or practices of that government; 

14 ‘‘(B) the impact of the acts, policies, or 

15 practices of a foreign government on maintain16 ing and creating United States jobs and produc17 tive capacity; 

18 ‘‘(C) the major barriers and trade distorting 

19 practices described in the most recent National 

20 Trade Estimate required under section 181(b); 

21 ‘‘(D) the major barriers and trade dis22 torting practices described in other relevant re23 ports addressing international trade and invest24 ment barriers prepared by a Federal agency or 

25 congressional commission during the 12 months 


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1 preceding the date of the most recent report 

2 under paragraph (3); 

3 ‘‘(E) a foreign government’s compliance 

4 with its obligations under any trade agreements 

5 to which both the foreign government and the 

6 United States are parties; 

7 ‘‘(F) the implications of a foreign govern8 ment’s procurement plans and policies; and 

9 ‘‘(G) the international competitive position 

10 and export potential of United States products 

11 and services. 

12 ‘‘(3) REPORT ON TRADE ENFORCEMENT PRIOR13 ITIES AND ACTIONS TAKEN TO ADDRESS.— 

14 ‘‘(A) IN GENERAL.—Not later than July 31 

15 of each calendar year that begins after the date 

16 of the enactment of the Trade Facilitation and 

17 Trade Enforcement Act of 2015, the Trade Rep18 resentative shall report to the Committee on Fi19 nance of the Senate and the Committee on Ways 

20 and Means of the House of Representatives on 

21 acts, policies, or practices of foreign governments 

22 identified as trade enforcement priorities based 

23 on the consultations under paragraph (1) and 

24 the criteria set forth in paragraph (2). 


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1 ‘‘(B) REPORT IN SUBSEQUENT YEARS.—The 

2 Trade Representative shall include, when report3 ing under subparagraph (A) in any calendar 

4 year after the calendar year that begins after the 

5 date of the enactment of the Trade Facilitation 

6 and Trade Enforcement Act of 2015, a descrip7 tion of actions taken to address any acts, poli8 cies, or practices of foreign governments identi9 fied as trade enforcement priorities under this 

10 subsection in the calendar year preceding that 

11 report and, as relevant, any year before that cal12 endar year. 

13 ‘‘(b) SEMI-ANNUAL ENFORCEMENT CONSULTATIONS.— 

14 ‘‘(1) IN GENERAL.—At the same time as the re15 porting under subsection (a)(3), and not later than 

16 January 31 of each following year, the Trade Rep17 resentative shall consult with the Committee on Fi18 nance of the Senate and the Committee on Ways and 

19 Means of the House of Representatives with respect to 

20 the identification, prioritization, investigation, and 

21 resolution of acts, policies, or practices of foreign gov22 ernments of concern with respect to obligations under 

23 the WTO Agreements or any other trade agreement to 

24 which the United States is a party, or that otherwise 

25 create or maintain trade barriers. 


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1 ‘‘(2) ACTS, POLICIES, OR PRACTICES OF CON2 CERN.—The semi-annual enforcement consultations 

3 required by paragraph (1) shall address acts, policies, 

4 or practices of foreign governments that raise con5 cerns with respect to obligations under the WTO 

6 Agreements or any other trade agreement to which the 

7 United States is a party, or otherwise create or main8 tain trade barriers, including— 

9 ‘‘(A) engagement with relevant trading 

10 partners; 

11 ‘‘(B) strategies for addressing such concerns; 

12 ‘‘(C) availability and deployment of re13 sources to be used in the investigation or resolu14 tion of such concerns; 

15 ‘‘(D) the merits of any potential dispute 

16 resolution proceeding under the WTO Agree17 ments or any other trade agreement to which the 

18 United States is a party relating to such con19 cerns; and 

20 ‘‘(E) any other aspects of such concerns. 

21 ‘‘(3) ACTIVE INVESTIGATIONS.—The semi-annual 

22 enforcement consultations required by paragraph (1) 

23 shall address acts, policies, or practices that the Trade 

24 Representative is actively investigating with respect 

25 to obligations under the WTO Agreements or any 


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1 other trade agreement to which the United States is 

2 a party, including— 

3 ‘‘(A) strategies for addressing concerns 

4 raised by such acts, policies, or practices; 

5 ‘‘(B) any relevant timeline with respect to 

6 investigation of such acts, policies, or practices; 

7 ‘‘(C) the merits of any potential dispute res8 olution proceeding under the WTO Agreements 

9 or any other trade agreement to which the 

10 United States is a party with respect to such 

11 acts, policies, or practices; 

12 ‘‘(D) barriers to the advancement of the in13 vestigation of such acts, policies, or practices; 

14 and 

15 ‘‘(E) any other matters relating to the in16 vestigation of such acts, policies, or practices. 

17 ‘‘(4) ONGOING ENFORCEMENT ACTIONS.—The 

18 semi-annual enforcement consultations required by 

19 paragraph (1) shall address all ongoing enforcement 

20 actions taken by or against the United States with re21 spect to obligations under the WTO Agreements or 

22 any other trade agreement to which the United States 

23 is a party, including— 

24 ‘‘(A) any relevant timeline with respect to 

25 such actions; 


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1 ‘‘(B) the merits of such actions; 

2 ‘‘(C) any prospective implementation ac3 tions; 

4 ‘‘(D) potential implications for any law or 

5 regulation of the United States; 

6 ‘‘(E) potential implications for United 

7 States stakeholders, domestic competitors, and 

8 exporters; and 

9 ‘‘(F) other issues relating to such actions. 

10 ‘‘(5) ENFORCEMENT RESOURCES.—The semi-an11 nual enforcement consultations required by paragraph 

12 (1) shall address the availability and deployment of 

13 enforcement resources, resource constraints on moni14 toring and enforcement activities, and strategies to 

15 address those constraints, including the use of avail16 able resources of other Federal agencies to enhance 

17 monitoring and enforcement capabilities. 

18 ‘‘(c) INVESTIGATION AND RESOLUTION.—In the case of 

19 any acts, policies, or practices of a foreign government iden20 tified as a trade enforcement priority under subsection (a), 

21 the Trade Representative shall, not later than the date of 

22 the first semi-annual enforcement consultations held under 

23 subsection (b) after the identification of the priority, take 

24 appropriate action to address that priority, including— 


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1 ‘‘(1) engagement with the foreign government to 

2 resolve concerns raised by such acts, policies, or prac3 tices; 

4 ‘‘(2) initiation of an investigation under section 

5 302(b)(1) with respect to such acts, policies, or prac6 tices; 

7 ‘‘(3) initiation of negotiations for a bilateral 

8 agreement that provides for resolution of concerns 

9 raised by such acts, policies, or practices; or 

10 ‘‘(4) initiation of dispute settlement proceedings 

11 under the WTO Agreements or any other trade agree12 ment to which the United States is a party with re13 spect to such acts, policies, or practices. 

14 ‘‘(d) ENFORCEMENT NOTIFICATIONS AND CONSULTA15 TION.— 

16 ‘‘(1) INITIATION OF ENFORCEMENT ACTION.—The 

17 Trade Representative shall notify and consult with 

18 the Committee on Finance of the Senate and the Com19 mittee on Ways and Means of the House of Represent20 atives in advance of initiation of any formal trade 

21 dispute by or against the United States taken in re22 gard to an obligation under the WTO Agreements or 

23 any other trade agreement to which the United States 

24 is a party. With respect to a formal trade dispute 

25 against the United States, if advance notification and 


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1 consultation are not possible, the Trade Representa2 tive shall notify and consult at the earliest practicable 

3 opportunity after initiation of the dispute. 

4 ‘‘(2) CIRCULATION OF REPORTS.—The Trade 

5 Representative shall notify and consult with the Com6 mittee on Finance of the Senate and the Committee 

7 on Ways and Means of the House of Representatives 

8 in advance of the announced or anticipated circula9 tion of any report of a dispute settlement panel or the 

10 Appellate Body of the World Trade Organization or 

11 of a dispute settlement panel under any other trade 

12 agreement to which the United States is a party with 

13 respect to a formal trade dispute by or against the 

14 United States. 

15 ‘‘(e) DEFINITIONS.—In this section: 

16 ‘‘(1) WTO.—The term ‘WTO’ means the World 

17 Trade Organization. 

18 ‘‘(2) WTO AGREEMENT.—The term ‘WTO Agree19 ment’ has the meaning given that term in section 2(9) 

20 of the Uruguay Round Agreements Act (19 U.S.C. 

21 3501(9)). 

22 ‘‘(3) WTO AGREEMENTS.—The term ‘WTO 

23 Agreements’ means the WTO Agreement and agree24 ments annexed to that Agreement.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of contents for 

2 the Trade Act of 1974 is amended by striking the item relat3 ing to section 310 and inserting the following:’’. 

‘‘Sec. 310. Trade enforcement priorities.’’. 

4 SEC. 502. EXERCISE OF WTO AUTHORIZATION TO SUSPEND 

5 CONCESSIONS OR OTHER OBLIGATIONS 

6 UNDER TRADE AGREEMENTS. 

7 (a) IN GENERAL.—Section 306 of the Trade Act of 

8 1974 (19 U.S.C. 2416) is amended— 

9 (1) by redesignating subsection (c) as subsection 

10 (d); and 

11 (2) by inserting after subsection (b) the fol12 lowing: 

13 ‘‘(c) EXERCISE OF WTO AUTHORIZATION TO SUSPEND

14 CONCESSIONS OR OTHER OBLIGATIONS.—If— 

15 ‘‘(1) action has terminated pursuant to section 

16 307(c), 

17 ‘‘(2) the petitioner or any representative of the 

18 domestic industry that would benefit from reinstate19 ment of action has submitted to the Trade Represent20 ative a written request for reinstatement of action, 

21 and 

22 ‘‘(3) the Trade Representatives has completed the 

23 requirements of subsection (d) and section 307(c)(3), 

24 the Trade Representative may at any time determine to 

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1 tion to suspend concessions or other obligations under Arti2 cle 22 of the Understanding on Rules and Procedures Gov3 erning the Settlement of Disputes (referred to in section 

4 101(d)(16) of the Uruguay Round Agreements Act (19 

5 U.S.C. 3511(d)(16))).’’. 

6 (b) CONFORMING AMENDMENTS.—Chapter 1 of title 

7 III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.) is 

8 amended— 

9 (1) in section 301(c)(1) (19 U.S.C. 2411(c)(1)), 

10 in the matter preceding subparagraph (A), by insert11 ing ‘‘or section 306(c)’’ after ‘‘subsection (a) or (b)’’; 

12 (2) in section 306(b) (19 U.S.C. 2416(b)), in the 

13 subsection heading, by striking ‘‘FURTHER ACTION’’ 

14 and inserting ‘‘ACTION ON THE BASIS OF MONI15 TORING’’; 

16 (3) in section 306(d) (19 U.S.C. 2416(d)), as re17 designated by subsection (a)(1), by inserting ‘‘or (c)’’ 

18 after ‘‘subsection (b)’’; and 

19 (4) in section 307(c)(3) (19 U.S.C. 2417(c)(3)), 

20 by inserting ‘‘or if a request is submitted to the Trade 

21 Representative under section 306(c)(2) to reinstate ac22 tion,’’ after ‘‘under section 301,’’. 


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1 SEC. 503. TRADE MONITORING. 

2 (a) IN GENERAL.—Chapter 1 of title II of the Trade 

3 Act of 1974 (19 U.S.C. 2251 et seq.) is amended by adding 

4 at the end the following: 

5 ‘‘SEC. 205. TRADE MONITORING. 

6 ‘‘(a) MONITORING TOOL FOR IMPORTS.— 

7 ‘‘(1) IN GENERAL.—Not later than 180 days 

8 after the date of the enactment of this section, the 

9 United States International Trade Commission shall 

10 make available on a website of the Commission an 

11 import monitoring tool to allow the public access to 

12 data on the volume and value of goods imported to 

13 the United States for the purpose of assessing whether 

14 such data has changed with respect to such goods over 

15 a period of time. 

16 ‘‘(2) DATA DESCRIBED.—For purposes of the 

17 monitoring tool under paragraph (1), the Commission 

18 shall use data compiled by the Department of Com19 merce and such other government data as the Com20 mission considers appropriate. 

21 ‘‘(3) PERIODS OF TIME.—The Commission shall 

22 ensure that data accessed through the monitoring tool 

23 under paragraph (1) includes data for the most recent 

24 quarter for which such data are available and pre25 vious quarters as the Commission considers prac26 ticable. 


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1 ‘‘(b) MONITORING REPORTS.— 

2 ‘‘(1) IN GENERAL.—Not later than 270 days 

3 after the date of the enactment of this section, and not 

4 less frequently than quarterly thereafter, the Secretary 

5 of Commerce shall publish on a website of the Depart6 ment of Commerce, and notify the Committee on Fi7 nance of the Senate and the Committee on Ways and 

8 Means of the House of Representatives of the avail9 ability of, a monitoring report on changes in the vol10 ume and value of trade with respect to imports and 

11 exports of goods categorized based on the 6-digit sub12 heading number of the goods under the Harmonized 

13 Tariff Schedule of the United States during the most 

14 recent quarter for which such data are available and 

15 previous quarters as the Secretary considers prac16 ticable. 

17 ‘‘(2) REQUESTS FOR COMMENT.—Not later than 

18 one year after the date of the enactment of this sec19 tion, the Secretary of Commerce shall solicit through 

20 the Federal Register public comment on the moni21 toring reports described in paragraph (1). 

22 ‘‘(c) SUNSET.—The requirements under this section 

23 terminate on the date that is seven years after the date of 

24 the enactment of this section.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of contents for 

2 the Trade Act of 1974 (19 U.S.C. 2101 et seq.) is amended 

3 by inserting after the item relating to section 204 the fol4 lowing: 

‘‘Sec. 205. Trade monitoring.’’. 

5 TITLE VI—MISCELLANEOUS 

6 PROVISIONS 

7 SEC. 601. DE MINIMIS VALUE. 

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

9 Tariff Act of 1930 (19 U.S.C. 1321(a)(2)(C)) is amended 

10 by striking ‘‘$200’’ and inserting ‘‘$800’’. 

11 (b) EFFECTIVE DATE.—The amendment made by sub12 section (a) shall apply with respect to articles entered, or 

13 withdrawn from warehouse for consumption, on or after the 

14 15th day after the date of the enactment of this Act. 

15 SEC. 602. CONSULTATION ON TRADE AND CUSTOMS REV16 ENUE FUNCTIONS. 

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

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

19 (1) in paragraph (1), by striking ‘‘on Depart20 ment policies and actions that have’’ and inserting 

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

22 than 30 days before finalizing, any Department poli23 cies, initiatives, or actions that will have’’; and 

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

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1 ing ‘‘not later than 60 days before proposing, and not 

2 later than 60 days before finalizing,’’. 

3 SEC. 603. PENALTIES FOR CUSTOMS BROKERS. 

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

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

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

7 inserting a semicolon; 

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

9 and inserting ‘‘; or’’; and 

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

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

12 conspiring to commit an act of terrorism de13 scribed in section 2332b of title 18, United 

14 States Code.’’. 

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

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

17 (1) by striking ‘‘the Customs Service’’ each place 

18 it appears and inserting ‘‘U.S. Customs and Border 

19 Protection’’; 

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

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

22 Border Protection’’; and 

23 (3) in subsection (g)(2)(B), by striking ‘‘Sec24 retary’s notice’’ and inserting ‘‘notice under subpara25 graph (A)’’. 


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1 SEC. 604. AMENDMENTS TO CHAPTER 98 OF THE HAR2 MONIZED TARIFF SCHEDULE OF THE UNITED 

3 STATES. 

4 (a) ARTICLES EXPORTED AND RETURNED, ADVANCED

5 OR IMPROVED ABROAD.— 

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

7 of chapter 98 of the Harmonized Tariff Schedule of 

8 the United States is amended by adding at the end 

9 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 fungible 

19 articles, the person shall use the same inventory manage20 ment method for any other articles with respect to which 

21 the person claims fungibility under this paragraph. 

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

23 ‘‘(A) the term ‘fungible articles’ means merchan24 dise or articles that, for commercial purposes, are 

25 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 by 

5 this subsection applies to articles classifiable under 

6 subheading 9802.00.40 or 9802.00.50 of the Har7 monized Tariff Schedule of the United States that are 

8 entered, or withdrawn from warehouse for consump9 tion, on or after the date that is 60 days after the 

10 date of the enactment of this Act. 

11 (b) MODIFICATION OF PROVISIONS RELATING TO RE12 TURNED PROPERTY.— 

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

14 heading 9801.00.10 of the Harmonized Tariff Sched15 ule of the United States is amended by inserting after 

16 ‘‘exported’’ the following: ‘‘, or any other products 

17 when returned within 3 years after having been ex18 ported’’. 

19 (2) EFFECTIVE DATE.—The amendment made by 

20 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 of 

5 the Harmonized Tariff Schedule of the United States 

6 is amended by inserting in numerical sequence the 

7 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 by 

9 paragraph (1) applies to goods entered, or withdrawn 

10 from warehouse for consumption, on or after the date 

11 that is 60 days after the date of the enactment of this 

12 Act. 

13 SEC. 605. 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 amended— 

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

20 the end; 


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

2 the end; 

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

4 amended) the following new subparagraph: 

5 ‘‘(vii) residue of bulk cargo contained in in6 struments of international traffic previously ex7 ported from the United States,’’; and 

8 (4) by adding at the end of the flush text fol9 lowing subparagraph (vii) (as so added) the fol10 lowing: ‘‘For purposes of subparagraph (vii) of this 

11 paragraph: The term ‘residue’ means material of bulk 

12 cargo that remains in an instrument of international 

13 traffic after the bulk cargo is removed, with a quan14 tity, by weight or volume, not exceeding 7 percent of 

15 the bulk cargo, and with no or de minimis value. The 

16 term ‘bulk cargo’ means cargo that is unpackaged and 

17 is in either solid, liquid, or gaseous form. The term 

18 ‘instruments of international traffic’ means con19 tainers or holders, capable of and suitable for repeated 

20 use, such as lift vans, cargo vans, shipping tanks, 

21 skids, pallets, caul boards, and cores for textile fab22 rics, arriving (whether loaded or empty) in use or to 

23 be used in the shipment of merchandise in inter24 national traffic, and any additional articles or classes 

25 of articles that the Commissioner responsible for U.S. 


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1 Customs and Border Protection designates as instru2 ments of international traffic.’’. 

3 (b) EFFECTIVE DATE.—The amendments made by sub4 section (a) take effect on the date of the enactment of this 

5 Act and apply with respect to residue of bulk cargo con6 tained in instruments of international traffic that are im7 ported into the customs territory of the United States on 

8 or after such date of enactment and that previously have 

9 been exported from the United States. 

10 SEC. 606. DRAWBACK AND REFUNDS. 

11 (a) ARTICLES MADE FROM IMPORTED MERCHAN12 DISE.—Section 313(a) of the Tariff Act of 1930 (19 U.S.C. 

13 1313(a)) is amended by striking ‘‘the full amount of the 

14 duties paid upon the merchandise so used shall be refunded 

15 as drawback, less 1 per centum of such duties, except that 

16 such’’ and inserting ‘‘an amount calculated pursuant to 

17 regulations prescribed by the Secretary of the Treasury 

18 under subsection (l) shall be refunded as drawback, except 

19 that’’. 

20 (b) SUBSTITUTION FOR DRAWBACK PURPOSES.—Sec21 tion 313(b) of the Tariff Act of 1930 (19 U.S.C. 1313(b)) 

22 is amended— 

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

24 following: 

25 ‘‘(1) IN GENERAL.—If imported’’; 


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

2 (whether imported or domestic) of the same kind and 

3 quality are’’ and inserting ‘‘or merchandise classifi4 able under the same 8-digit HTS subheading number 

5 as such imported merchandise is’’; 

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

7 years’’; 

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

9 merchandise by the manufacturer or producer of such 

10 articles’’ and inserting ‘‘the date of importation of 

11 such imported merchandise’’; 

12 (5) by inserting ‘‘or articles classifiable under 

13 the same 8-digit HTS subheading number as such ar14 ticles,’’ after ‘‘any such articles,’’; 

15 (6) 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 (7) by adding at the end the following: 

23 ‘‘(2) REQUIREMENTS RELATING TO TRANSFER OF

24 MERCHANDISE.— 


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1 ‘‘(A) MANUFACTURERS AND PRODUCERS.— 

2 Drawback shall be allowed under paragraph (1) 

3 with respect to an article manufactured or pro4 duced using imported merchandise or other mer5 chandise classifiable under the same 8-digit HTS 

6 subheading number as such imported merchan7 dise only if the manufacturer or producer of the 

8 article received such imported merchandise or 

9 such other merchandise, directly or indirectly, 

10 from the importer. 

11 ‘‘(B) EXPORTERS AND DESTROYERS.— 

12 Drawback shall be allowed under paragraph (1) 

13 with respect to a manufactured or produced arti14 cle that is exported or destroyed only if the ex15 porter or destroyer received that article or an ar16 ticle 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 the 

23 normal course of business and no additional cer24 tificates of transfer or manufacture shall be re25 quired. 


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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 classifi7 able 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 8- 

12 digit HTS subheading number and the quantity 

13 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 chem12 ical element and the source material are 

13 classifiable under the same 8-digit HTS 

14 subheading number, and apportioned quan15 titatively, as appropriate. 

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

18 chemical element’ means an element listed in the 

19 Periodic Table of Elements that is imported into 

20 the United States or a chemical compound con21 sisting of those elements, either separately in ele22 mental form or contained in source material.’’. 

23 (c) MERCHANDISE NOT CONFORMING TO SAMPLE OR

24 SPECIFICATIONS.—Section 313(c) of the Tariff Act of 1930 

25 (19 U.S.C. 1313(c)) is amended— 


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1 (1) in paragraph (1)— 

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

3 ‘‘under a certificate of delivery’’ each place it ap4 pears; 

5 (B) in subparagraph (D)— 

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

7 and 

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

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

10 Protection’’; and 

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

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

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

14 amount calculated pursuant to regulations pre15 scribed by the Secretary of the Treasury under 

16 subsection (l)’’; 

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

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

19 Protection’’; and 

20 (3) by amending paragraph (3) to read as fol21 lows: 

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

23 merchandise under paragraph (1) may be evidenced 

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1 ness and no additional certificates of transfer shall be 

2 required.’’. 

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

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

5 as follows: 

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

7 drawback under this section based on the exportation of an 

8 article shall provide proof of the exportation of the article. 

9 Such proof of exportation— 

10 ‘‘(1) shall establish fully the date and fact of ex11 portation and the identity of the exporter; and 

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

13 records kept in the normal course of business or 

14 through an electronic export system of the United 

15 States Government, as determined by the Commis16 sioner responsible for U.S. Customs and Border Pro17 tection.’’. 

18 (e) UNUSED MERCHANDISE DRAWBACK.—Section 

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

20 amended— 

21 (1) in paragraph (1)— 

22 (A) in subparagraph (A), in the matter pre23 ceding clause (i)— 

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

25 ‘‘5-year’’; and 


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1 (ii) by inserting ‘‘and before the draw2 back claim is filed’’ after ‘‘the date of im3 portation’’; and 

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

5 ‘‘99 percent of the amount of each duty, tax, or 

6 fee so paid’’ and inserting ‘‘an amount cal7 culated pursuant to regulations prescribed by the 

8 Secretary of the Treasury under subsection (l)’’; 

9 (2) in paragraph (2)— 

10 (A) in the matter preceding subparagraph 

11 (A), by striking ‘‘paragraph (4)’’ and inserting 

12 ‘‘paragraphs (4), (5), and (6)’’; 

13 (B) in subparagraph (A), by striking ‘‘com14 mercially interchangeable with’’ and inserting 

15 ‘‘classifiable under the same 8-digit HTS sub16 heading number as’’; 

17 (C) in subparagraph (B)— 

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

19 ‘‘5-year’’; and 

20 (ii) by inserting ‘‘and before the draw21 back claim is filed’’ after ‘‘the imported 

22 merchandise’’; and 

23 (D) in subparagraph (C)(ii), by striking 

24 subclause (II) and inserting the following: 


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1 ‘‘(II) received the imported mer2 chandise, other merchandise classifiable 

3 under the same 8-digit HTS sub4 heading number as such imported mer5 chandise, or any combination of such 

6 imported merchandise and such other 

7 merchandise, directly or indirectly 

8 from the person who imported and 

9 paid any duties, taxes, and fees im10 posed under Federal law upon impor11 tation or entry and due on the im12 ported merchandise (and any such 

13 transferred merchandise, regardless of 

14 its origin, will be treated as the im15 ported merchandise and any retained 

16 merchandise will be treated as domestic 

17 merchandise);’’; 

18 (E) in the flush text at the end— 

19 (i) by striking ‘‘the amount of each 

20 such duty, tax, and fee’’ and all that follows 

21 through ‘‘99 percent of that duty, tax, or 

22 fee’’ and inserting ‘‘an amount calculated 

23 pursuant to regulations prescribed by the 

24 Secretary of the Treasury under subsection 

25 (l) shall be refunded as drawback’’; and 


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1 (ii) by striking the last sentence and 

2 inserting the following: ‘‘Notwithstanding 

3 subparagraph (A), drawback shall be al4 lowed under this paragraph with respect to 

5 wine if the imported wine and the exported 

6 wine are of the same color and the price 

7 variation between the imported wine and 

8 the exported wine does not exceed 50 per9 cent. Transfers of merchandise may be evi10 denced by business records kept in the nor11 mal course of business and no additional 

12 certificates of transfer shall be required.’’; 

13 and 

14 (3) in paragraph (3)(B), by striking ‘‘the com15 mercially interchangeable merchandise’’ and inserting 

16 ‘‘merchandise classifiable under the same 8-digit HTS 

17 subheading number as such imported merchandise’’; 

18 and 

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

20 ‘‘(5)(A) For purposes of paragraph (2) and ex21 cept as provided in subparagraph (B), merchandise 

22 may not be substituted for imported merchandise for 

23 drawback purposes based on the 8-digit HTS sub24 heading number if the article description for the 8- 

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1 ported merchandise is classified begins with the term 

2 ‘other’. 

3 ‘‘(B) In cases described in subparagraph (A), 

4 merchandise may be substituted for imported mer5 chandise for drawback purposes if— 

6 ‘‘(i) the other merchandise and such im7 ported merchandise are classifiable under the 

8 same 10-digit HTS statistical reporting number; 

9 and 

10 ‘‘(ii) the article description for that 10-digit 

11 HTS statistical reporting number does not begin 

12 with the term ‘other’. 

13 ‘‘(6)(A) For purposes of paragraph (2), a draw14 back claimant may use the first 8 digits of the 10- 

15 digit Schedule B number for merchandise or an arti16 cle to determine if the merchandise or article is classi17 fiable under the same 8-digit HTS subheading num18 ber as the imported merchandise, without regard to 

19 whether the Schedule B number corresponds to more 

20 than one 8-digit HTS subheading number. 

21 ‘‘(B) In this paragraph, the term ‘Schedule B’ 

22 means the Department of Commerce Schedule B, Sta23 tistical Classification of Domestic and Foreign Com24 modities Exported from the United States.’’. 


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1 (f) LIABILITY FOR DRAWBACK CLAIMS.—Section 

2 313(k) of the Tariff Act of 1930 (19 U.S.C. 1313(k)) is 

3 amended to read as follows: 

4 ‘‘(k) LIABILITY FOR DRAWBACK CLAIMS.— 

5 ‘‘(1) IN GENERAL.—Any person making a claim 

6 for drawback under this section shall be liable for the 

7 full amount of the drawback claimed. 

8 ‘‘(2) LIABILITY OF IMPORTERS.—An importer 

9 shall be liable for any drawback claim made by an10 other person with respect to merchandise imported by 

11 the importer in an amount equal to the lesser of— 

12 ‘‘(A) the amount of duties, taxes, and fees 

13 that the person claimed with respect to the im14 ported merchandise; or 

15 ‘‘(B) the amount of duties, taxes, and fees 

16 that the importer authorized the other person to 

17 claim with respect to the imported merchandise. 

18 ‘‘(3) JOINT AND SEVERAL LIABILITY.—Persons 

19 described in paragraphs (1) and (2) shall be jointly 

20 and severally liable for the amount described in para21 graph (2).’’. 

22 (g) REGULATIONS.—Section 313(l) of the Tariff Act of 

23 1930 (19 U.S.C. 1313(l)) is amended to read as follows: 

24 ‘‘(l) REGULATIONS.— 


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1 ‘‘(1) IN GENERAL.—Allowance of the privileges 

2 provided for in this section shall be subject to compli3 ance with such rules and regulations as the Secretary 

4 of the Treasury shall prescribe. 

5 ‘‘(2) CALCULATION OF DRAWBACK.— 

6 ‘‘(A) IN GENERAL.—Not later than the date 

7 that is 2 years after the date of the enactment of 

8 the Trade Facilitation and Trade Enforcement 

9 Act of 2015 (or, if later, the effective date pro10 vided for in section 406(q)(2)(B) of that Act), the 

11 Secretary shall prescribe regulations for deter12 mining the calculation of amounts refunded as 

13 drawback under this section. 

14 ‘‘(B) REQUIREMENTS.—The regulations re15 quired by subparagraph (A) for determining the 

16 calculation of amounts refunded as drawback 

17 under this section shall provide for a refund of 

18 equal to 99 percent of the duties, taxes, and fees 

19 paid with respect to the imported merchandise, 

20 except that where there is substitution of the 

21 merchandise or article, then— 

22 ‘‘(i) in the case of an article that is ex23 ported, the amount of the refund shall be 

24 equal to 99 percent of the lesser of— 


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1 ‘‘(I) the amount of duties, taxes, 

2 and fees paid with respect to the im3 ported merchandise; or 

4 ‘‘(II) the amount of duties, taxes, 

5 and fees that would apply to the ex6 ported article if the exported article 

7 were imported; and 

8 ‘‘(ii) in the case of an article that is 

9 destroyed, the amount of the refund shall be 

10 an amount that is— 

11 ‘‘(I) equal to 99 percent of the 

12 lesser of— 

13 ‘‘(aa) the amount of duties, 

14 taxes, and fees paid with respect 

15 to the imported merchandise; and 

16 ‘‘(bb) the amount of duties, 

17 taxes, and fees that would apply 

18 to the destroyed article if the de19 stroyed article were imported; and 

20 ‘‘(II) reduced by the value of ma21 terials recovered during destruction as 

22 provided in subsection (x). 

23 ‘‘(3) STATUS REPORTS ON REGULATIONS.—Not 

24 later than the date that is one year after the date of 

25 the enactment of the Trade Facilitation and Trade 


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1 Enforcement Act of 2015, and annually thereafter 

2 until the regulations required by paragraph (2) are 

3 final, the Secretary shall submit to Congress a report 

4 on the status of those regulations.’’. 

5 (h) SUBSTITUTION OF FINISHED PETROLEUM DERIVA6 TIVES.—Section 313(p) of the Tariff Act of 1930 (19 U.S.C. 

7 1313(p)) is amended— 

8 (1) by striking ‘‘Harmonized Tariff Schedule of 

9 the United States’’ each place it appears and insert10 ing ‘‘HTS’’; and 

11 (2) in paragraph (3)(A)— 

12 (A) in clause (ii)(III), by striking ‘‘, as so 

13 certified in a certificate of delivery or certificate 

14 of manufacture and delivery’’; and 

15 (B) in the flush text at the end— 

16 (i) by striking ‘‘, so designated on the 

17 certificate of delivery or certificate of manu18 facture and delivery’’; and 

19 (ii) by striking the last sentence and 

20 inserting the following: ‘‘The party transfer21 ring the merchandise shall maintain records 

22 kept in the normal course of business to 

23 demonstrate the transfer.’’. 

24 (i) PACKAGING MATERIAL.—Section 313(q) of the Tar25 iff Act of 1930 (19 U.S.C. 1313(q)) is amended— 


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1 (1) in paragraph (1), by striking ‘‘of 99 percent 

2 of any duty, tax, or fee imposed under Federal law 

3 on such imported material’’ and inserting ‘‘in an 

4 amount calculated pursuant to regulations prescribed 

5 by the Secretary of the Treasury under subsection 

6 (l)’’; 

7 (2) in paragraph (2), by striking ‘‘of 99 percent 

8 of any duty, tax, or fee imposed under Federal law 

9 on the imported or substituted merchandise used to 

10 manufacture or produce such material’’ and inserting 

11 ‘‘in an amount calculated pursuant to regulations 

12 prescribed by the Secretary of the Treasury under 

13 subsection (l)’’; and 

14 (3) in paragraph (3), by striking ‘‘they contain’’ 

15 and inserting ‘‘it contains’’. 

16 (j) FILING OF DRAWBACK CLAIMS.—Section 313(r) of 

17 the Tariff Act of 1930 (19 U.S.C. 1313(r)) is amended— 

18 (1) in paragraph (1)— 

19 (A) by striking the first sentence and insert20 ing the following: ‘‘A drawback entry shall be 

21 filed or applied for, as applicable, not later than 

22 5 years after the date on which merchandise on 

23 which drawback is claimed was imported.’’; 

24 (B) in the second sentence, by striking ‘‘3- 

25 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 appears 

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

13 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 in 

18 subsection (t) of this section and’’ and inserting 

19 ‘‘the period of time for retaining records set forth 

20 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 Act 

25 of 2015 (or, if later, the effective date provided for in 


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1 section 406(q)(2)(B) of that Act) shall be filed elec2 tronically.’’. 

3 (k) DESIGNATION OF MERCHANDISE BY SUCCESSOR.— 

4 Section 313(s) of the Tariff Act of 1930 (19 U.S.C. 1313(s)) 

5 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 mer10 chandise classifiable under the same 8-digit HTS 

11 subheading number as such imported merchan12 dise, or any combination of such imported mer13 chandise and such other merchandise, that the 

14 predecessor received, before the date of succession, 

15 from the person who imported and paid any du16 ties, taxes, and fees due on the imported mer17 chandise;’’; and 

18 (2) in paragraph (4), by striking ‘‘certifies that’’ 

19 and all that follows and inserting ‘‘certifies that the 

20 transferred merchandise was not and will not be 

21 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 striking 

24 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 person 

11 to another person without any intermediate transfer. 

12 ‘‘(2) HTS.—The term ‘HTS’ means the Har13 monized Tariff Schedule of the United States. 

14 ‘‘(3) INDIRECTLY.—The term ‘indirectly’ means 

15 a transfer of merchandise or an article from one per16 son to another person with one or more intermediate 

17 transfers.’’. 

18 (o) RECORDKEEPING.—Section 508(c)(3) of the Tariff 

19 Act of 1930 (19 U.S.C. 1508(c)(3)) is amended— 

20 (1) by striking ‘‘3rd’’ and inserting ‘‘5th’’; and 

21 (2) by striking ‘‘payment’’ and inserting ‘‘liq22 uidation’’. 

23 (p) GOVERNMENT ACCOUNTABILITY OFFICE RE24 PORT.— 


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1 (1) IN GENERAL.—Not later than one year after 

2 the issuance of the regulations required by subsection 

3 (l)(2) of section 313 of the Tariff Act of 1930, as 

4 added by subsection (g), the Comptroller General of 

5 the United States shall submit to the Committee on 

6 Finance of the Senate and the Committee on Ways 

7 and Means of the House of Representatives a report 

8 on the modernization of drawback and refunds under 

9 section 313 of the Tariff Act of 1930, as amended by 

10 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 provided 

18 for in subsection (q) that are not permissible 

19 after that effective date and an identification of 

20 industries most affected. 

21 (C) A description of drawback claims that 

22 were not permissible before the effective date pro23 vided for in subsection (q) that are permissible 

24 after that effective date and an identification of 

25 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 enactment 

5 of this Act; and 

6 (B) apply to drawback claims filed on or 

7 after the date that is 2 years after such date of 

8 enactment. 

9 (2) REPORTING OF OPERABILITY OF AUTOMATED

10 COMMERCIAL ENVIRONMENT COMPUTER SYSTEM.—Not 

11 later than one year after the date of the enactment of 

12 this Act, and not later than 2 years after such date 

13 of enactment, the Secretary of the Treasury shall sub14 mit to Congress a report on— 

15 (A) the date on which the Automated Com16 mercial Environment will be ready to process 

17 drawback claims; and 

18 (B) the date on which the Automated Ex19 port System will be ready to accept proof of ex20 portation under subsection (i) of section 313 of 

21 the Tariff Act of 1930, as amended by subsection 

22 (d). 

23 (3) TRANSITION RULE.—During the one-year pe24 riod beginning on the date that is 2 years after the 

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1 fective date provided for in paragraph (2)(B)), a per2 son may elect to file a claim for drawback under— 

3 (A) section 313 of the Tariff Act of 1930, as 

4 amended by this section; or 

5 (B) section 313 of the Tariff Act of 1930, as 

6 in effect on the day before the date of the enact7 ment of this Act. 

8 SEC. 607. OFFICE OF THE UNITED STATES TRADE REP9 RESENTATIVE. 

10 (a) ANNUAL REPORT ON TRADE AGREEMENTS PRO11 GRAM AND NATIONAL TRADE POLICY AGENDA.—Section 

12 163(a) of the Trade Act of 1974 (19 U.S.C. 2213(a)) is 

13 amended— 

14 (1) in paragraph (1)— 

15 (A) in subparagraph (A), by striking ‘‘and’’ 

16 at the end; 

17 (B) in subparagraph (B), by striking the 

18 period at the end and inserting ‘‘; and’’; and 

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

20 ‘‘(C) the operation of all United States 

21 Trade Representative-led interagency programs 

22 during the preceding year and for the year in 

23 which the report is submitted.’’; and 

24 (2) by adding at the end the following: 


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1 ‘‘(4) The report shall include, with respect to the 

2 matters referred to in paragraph (1)(C), information 

3 regarding— 

4 ‘‘(A) the objectives and priorities of all 

5 United States Trade Representative-led inter6 agency programs for the year, and the reasons 

7 therefor; 

8 ‘‘(B) the actions proposed, or anticipated, to 

9 be undertaken during the year to achieve such 

10 objectives and priorities, including actions au11 thorized under the trade laws and negotiations 

12 with foreign countries; 

13 ‘‘(C) the role of each Federal agency partici14 pating in the interagency program in achieving 

15 such objectives and priorities and activities of 

16 each agency with respect to their participation 

17 in the program; 

18 ‘‘(D) the United States Trade Representa19 tive’s coordination of each participating Federal 

20 agency to more effectively achieve such objectives 

21 and priorities; 

22 ‘‘(E) any proposed legislation necessary or 

23 appropriate to achieve any of such objectives or 

24 priorities; and 


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1 ‘‘(F) the progress that was made during the 

2 preceding year in achieving such objectives and 

3 priorities and coordination activities included in 

4 the statement provided for such year under this 

5 paragraph.’’. 

6 (b) RESOURCE MANAGEMENT AND STAFFING PLANS.— 

7 (1) ANNUAL PLAN.— 

8 (A) IN GENERAL.—The United States Trade 

9 Representative shall on an annual basis develop 

10 a plan— 

11 (i) to match available resources of the 

12 Office of the United States Trade Represent13 ative to projected workload and provide a 

14 detailed analysis of how the funds allocated 

15 from the prior fiscal year to date have been 

16 spent; 

17 (ii) to identify existing staff of the Of18 fice and new staff that will be necessary to 

19 support the trade negotiation and enforce20 ment functions and powers of the Office (in21 cluding those of the Trade Policy Staff 

22 Committee) as described in section 141 of 

23 the Trade Act of 1974 (19 U.S.C. 2171) and 

24 section 301 of the Trade Act of 1974 (19 

25 U.S.C. 2411); 


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1 (iii) to identify existing staff of the Of2 fice and staff of other Federal agencies who 

3 will be required to be detailed to support 

4 United States Trade Representative-led 

5 interagency programs, including any asso6 ciated expenses; and 

7 (iv) to provide a detailed analysis of 

8 the budgetary requirements of United States 

9 Trade Representative-led interagency pro10 grams for the next fiscal year and provide 

11 a detailed analysis of how the funds allo12 cated from the prior fiscal year to date have 

13 been spent. 

14 (B) REPORT.—The United States Trade 

15 Representative shall submit to the Committee on 

16 Ways and Means and the Committee on Appro17 priations of the House of Representatives and the 

18 Committee on Finance and the Committee on 

19 Appropriations of the Senate a report that con20 tains the plan required under subparagraph (A). 

21 The report required under this subparagraph 

22 shall be submitted in conjunction with the an23 nual budget of the United States Government re24 quired to be submitted to Congress under section 

25 1105 of title 31, United States Code. 


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1 (2) QUADRENNIAL PLAN.— 

2 (A) IN GENERAL.—Pursuant to the goals 

3 and objectives of the strategic plan of the Office 

4 of the United States Trade Representative as re5 quired under section 306 of title 5, United States 

6 Code, the United States Trade Representative 

7 shall every 4 years develop a plan— 

8 (i) to analyze internal quality controls 

9 and record management of the Office; 

10 (ii) to identify existing staff of the Of11 fice and new staff that will be necessary to 

12 support the trade negotiation and enforce13 ment functions and powers of the Office (in14 cluding those of the Trade Policy Staff 

15 Committee) as described in section 141 of 

16 the Trade Act of 1974 (19 U.S.C. 2171) and 

17 section 301 of the Trade Act of 1974 (19 

18 U.S.C. 2411); 

19 (iii) to identify existing staff of the Of20 fice and staff in other Federal agencies who 

21 will be required to be detailed to support 

22 United States Trade Representative-led 

23 interagency programs, including any asso24 ciated expenses; 


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1 (iv) to provide an outline of budget 

2 justifications, including salaries and ex3 penses as well as non-personnel administra4 tive expenses, for the fiscal years required 

5 under the strategic plan; and 

6 (v) to provide an outline of budget jus7 tifications, including salaries and expenses 

8 as well as non-personnel administrative ex9 penses, for United States Trade Representa10 tive-led interagency programs for the fiscal 

11 years required under the strategic plan. 

12 (B) REPORT.— 

13 (i) IN GENERAL.—The United States 

14 Trade Representative shall submit to the 

15 Committee on Ways and Means and the 

16 Committee on Appropriations of the House 

17 of Representatives and the Committee on 

18 Finance and the Committee on Appropria19 tions of the Senate a report that contains 

20 the plan required under subparagraph (A). 

21 Except as provided in clause (ii), the report 

22 required under this clause shall be sub23 mitted in conjunction with the strategic 

24 plan of the Office as required under section 

25 306 of title 5, United States Code. 


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1 (ii) EXCEPTION.—The United States 

2 Trade Representative shall submit to the 

3 congressional committees specified in clause 

4 (i) an initial report that contains the plan 

5 required under subparagraph (A) not later 

6 than February 1, 2016. 

7 SEC. 608. UNITED STATES-ISRAEL TRADE AND COMMERCIAL 

8 ENHANCEMENT. 

9 (a) FINDINGS.—Congress finds the following: 

10 (1) Israel is America’s dependable, democratic 

11 ally in the Middle East—an area of paramount stra12 tegic importance to the United States. 

13 (2) The United States-Israel Free Trade Agree14 ment formed the modern foundation of the bilateral 

15 commercial relationship between the two countries 

16 and was the first such agreement signed by the 

17 United States with a foreign country. 

18 (3) The United States-Israel Free Trade Agree19 ment has been instrumental in expanding commerce 

20 and the strategic relationship between the United 

21 States and Israel. 

22 (4) More than $45 billion in goods and services 

23 is traded annually between the two countries in addi24 tion to roughly $10 billion in United States foreign 

25 direct investment in Israel. 


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1 (5) The United States continues to look for and 

2 find new opportunities to enhance cooperation with 

3 Israel, including through the enactment of the United 

4 States-Israel Enhanced Security Cooperation Act of 

5 2012 (Public Law 112–150) and the United States6 Israel Strategic Partnership Act of 2014 (Public Law 

7 113–296). 

8 (6) It has been the policy of the United States 

9 Government to combat all elements of the Arab 

10 League Boycott of Israel by— 

11 (A) public statements of Administration of12 ficials; 

13 (B) enactment of relevant sections of the 

14 Export Administration Act of 1979 (as contin15 ued in effect pursuant to the International 

16 Emergency Economic Powers Act), including 

17 sections to ensure foreign persons comply with 

18 applicable reporting requirements relating to the 

19 boycott; 

20 (C) enactment of the 1976 Tax Reform Act 

21 (Public Law 94–455) that denies certain tax 

22 benefits to entities abiding by the boycott; 

23 (D) ensuring through free trade agreements 

24 with Bahrain and Oman that such countries no 

25 longer participate in the boycott; and 


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1 (E) ensuring as a condition of membership 

2 in the World Trade Organization that Saudi 

3 Arabia no longer enforces the secondary or ter4 tiary elements of the boycott. 

5 (b) STATEMENTS OF POLICY.—Congress— 

6 (1) supports the strengthening of United States7 Israel economic cooperation and recognizes the tre8 mendous strategic, economic, and technological value 

9 of cooperation with Israel; 

10 (2) recognizes the benefit of cooperation with 

11 Israel to United States companies, including by im12 proving American competitiveness in global markets; 

13 (3) recognizes the importance of trade and com14 mercial relations to the pursuit and sustainability of 

15 peace, and supports efforts to bring together the 

16 United States, Israel, the Palestinian territories, and 

17 others in enhanced commerce; 

18 (4) opposes politically motivated actions that pe19 nalize or otherwise limit commercial relations specifi20 cally with Israel such as boycotts, divestment or sanc21 tions; 

22 (5) notes that the boycott, divestment, and sanc23 tioning of Israel by governments, governmental bodies, 

24 quasi-governmental bodies, international organiza25 tions, and other such entities is contrary to the GenVerDate Sep 11 2014 00:53 May 15, 2015 Jkt 049200 PO 00000 Frm 00173 Fmt 6652 Sfmt 6203 E:\BILLS\H1907.RH H1907

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1 eral Agreement on Tariffs and Trade (GATT) prin2 ciple of non-discrimination; 

3 (6) encourages the inclusion of politically moti4 vated actions that penalize or otherwise limit com5 mercial relations specifically with Israel such as boy6 cotts, divestment from, or sanctions against Israel as 

7 a topic of discussion at the U.S.-Israel Joint Eco8 nomic Development Group (JEDG) and other areas 

9 to support the strengthening of the United States10 Israel commercial relationship and combat any com11 mercial discrimination against Israel; 

12 (7) supports efforts to prevent investigations or 

13 prosecutions by governments or international organi14 zations of United States persons on the sole basis of 

15 such persons doing business with Israel, with Israeli 

16 entities, or in Israeli-controlled territories; and 

17 (8) supports American States examining a com18 pany’s promotion or compliance with unsanctioned 

19 boycotts, divestment from, or sanctions against Israel 

20 as part of its consideration in awarding grants and 

21 contracts and supports the divestment of State assets 

22 from companies that support or promote actions to 

23 boycott, divest from, or sanction Israel. 

24 (c) PRINCIPAL TRADE NEGOTIATING OBJECTIVES OF

25 THE UNITED STATES.— 


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1 (1) COMMERCIAL PARTNERSHIPS.—Among the 

2 principal trade negotiating objectives of the United 

3 States for proposed trade agreements with foreign 

4 countries regarding commercial partnerships are the 

5 following: 

6 (A) To discourage actions by potential trad7 ing partners that directly or indirectly prejudice 

8 or otherwise discourage commercial activity sole9 ly between the United States and Israel. 

10 (B) To discourage politically motivated ac11 tions to boycott, divest from, or sanction Israel 

12 and to seek the elimination of politically moti13 vated non-tariff barriers on Israeli goods, serv14 ices, or other commerce imposed on the State of 

15 Israel. 

16 (C) To seek the elimination of state-spon17 sored unsanctioned foreign boycotts against 

18 Israel or compliance with the Arab League Boy19 cott of Israel by prospective trading partners. 

20 (2) EFFECTIVE DATE.—This subsection takes ef21 fect on the date of the enactment of this Act and ap22 plies with respect to negotiations commenced before, 

23 on, or after the date of the enactment of this Act. 


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1 (d) REPORT ON POLITICALLY MOTIVATED ACTS OF

2 BOYCOTT, DIVESTMENT FROM, AND SANCTIONS AGAINST

3 ISRAEL.— 

4 (1) IN GENERAL.—Not later than 180 days after 

5 the date of the enactment of this Act, and annually 

6 thereafter, the President shall submit to Congress a re7 port on politically motivated acts of boycott, divest8 ment from, and sanctions against Israel. 

9 (2) MATTERS TO BE INCLUDED.—The report re10 quired by paragraph (1) shall include the following: 

11 (A) A description of the establishment of 

12 barriers to trade, including non-tariff barriers, 

13 investment, or commerce by foreign countries or 

14 international organizations against United 

15 States persons operating or doing business in 

16 Israel, with Israeli entities, or in Israeli-con17 trolled territories. 

18 (B) A description of specific steps being 

19 taken by the United States to encourage foreign 

20 countries and international organizations to 

21 cease creating such barriers and to dismantle 

22 measures already in place and an assessment of 

23 the effectiveness of such steps. 

24 (C) A description of specific steps being 

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1 tions or prosecutions by governments or inter2 national organizations of United States persons 

3 on the sole basis of such persons doing business 

4 with Israel, with Israeli entities, or in Israeli5 controlled territories. 

6 (D) Decisions by foreign persons, including 

7 corporate entities and state-affiliated financial 

8 institutions, that limit or prohibit economic rela9 tions with Israel or persons doing business in 

10 Israel or in Israeli controlled territories. 

11 (e) ISRAEL TRADE AND COMMERCE BOYCOTT REPORT12 ING.—Section 13 of the Securities Exchange Act of 1934 

13 (15 U.S.C. 78m) is amended by adding at the end the fol14 lowing: 

15 ‘‘(s) ISRAEL TRADE AND COMMERCE BOYCOTT RE16 PORTING.— 

17 ‘‘(1) IN GENERAL.—Each foreign issuer required 

18 to file an annual or quarterly report under subsection 

19 (a) shall disclose in that report— 

20 ‘‘(A) whether the issuer has discriminated 

21 against doing business with Israel in the last 

22 calendar year and in such cases an issuer shall 

23 provide a description of the discrimination. 

24 ‘‘(B) whether the issuer has been advised by 

25 a foreign government or a non-member state of 


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1 the United Nations to discriminate against 

2 doing business with Israel, entities owned or con3 trolled by the government of Israel, or entities 

4 operating in Israel or Israeli-controlled territory; 

5 and 

6 ‘‘(C) any instances where the issuer has 

7 learned that a person, foreign government, or a 

8 non-member state of the United Nations is boy9 cotting the issuer, divesting themselves of an 

10 ownership interest in the issuer, or placing sanc11 tions on the issuer because of the issuer’s rela12 tionship with Israel, entities owned or controlled 

13 by the government of Israel, or entities operating 

14 in Israel or Israeli-controlled territory. 

15 ‘‘(2) DEFINITIONS.—For purposes of this sub16 section: 

17 ‘‘(A) FOREIGN ISSUER.—The term ‘foreign 

18 issuer’ means an issuer that is not incorporated 

19 in the United States. 

20 ‘‘(B) NON-MEMBER STATES OF THE UNITED

21 NATIONS.—The term ‘non-member states of the 

22 United Nations’ has the meaning given such 

23 term by the United Nations.’’. 

24 (f) FOREIGN JUDGMENTS AGAINST UNITED STATES

25 PERSONS.—No court in the United States may recognize 


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1 or enforce any judgment which is entered by a foreign court 

2 against a United States person carrying out business oper3 ations in Israel or in any territory controlled by Israel and 

4 on which is based a determination by the foreign court that 

5 the location in Israel, or in any territory controlled by 

6 Israel, of the facilities at which the business operations are 

7 carried out is sufficient to constitute a violation of law. 

8 (g) DEFINITIONS.—In this section: 

9 (1) BOYCOTT, DIVESTMENT FROM, AND SANC10 TIONS AGAINST ISRAEL.—The term ‘‘boycott, divest11 ment from, and sanctions against Israel’’ means ac12 tions by states, non-member states of the United Na13 tions, international organizations, or affiliated agen14 cies of international organizations that are politically 

15 motivated and are intended to penalize or otherwise 

16 limit commercial relations specifically with Israel or 

17 persons doing business in Israel or in Israeli-con18 trolled territories. 

19 (2) FOREIGN PERSON.—The term ‘‘foreign per20 son’’ means— 

21 (A) any natural person who is not lawfully 

22 admitted for permanent residence (as defined in 

23 section 101(a)(20) of the Immigration and Na24 tionality Act (8 U.S.C. 1101(a)(20)) or who is 

25 not a protected individual (as defined in section 


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1 274B(a)(3) of such Act (8 U.S.C. 1324b(a)(3)); 

2 and 

3 (B) any foreign corporation, business asso4 ciation, partnership, trust, society or any other 

5 entity or group that is not incorporated or orga6 nized to do business in the United States, as well 

7 as any international organization, foreign gov8 ernment and any agency or subdivision of for9 eign government, including a diplomatic mis10 sion. 

11 (3) PERSON.— 

12 (A) IN GENERAL.—The term ‘‘person’’ 

13 means— 

14 (i) a natural person; 

15 (ii) a corporation, business association, 

16 partnership, society, trust, financial institu17 tion, insurer, underwriter, guarantor, and 

18 any other business organization, any other 

19 nongovernmental entity, organization, or 

20 group, and any governmental entity oper21 ating as a business enterprise; and 

22 (iii) any successor to any entity de23 scribed in clause (ii). 

24 (B) APPLICATION TO GOVERNMENTAL ENTI25 TIES.—The term ‘‘person’’ does not include a 


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1 government or governmental entity that is not 

2 operating as a business enterprise. 

3 (4) UNITED STATES PERSON.—The term ‘‘United 

4 States person’’ means— 

5 (A) a natural person who is a national of 

6 the United States (as defined in section 

7 101(a)(22) of the Immigration and Nationality 

8 Act (8 U.S.C. 1101(a)(22))); and 

9 (B) a corporation or other legal entity 

10 which is organized under the laws of the United 

11 States, any State or territory thereof, or the Dis12 trict of Columbia, if natural persons described in 

13 subparagraph (A) own, directly or indirectly, 

14 more than 50 percent of the outstanding capital 

15 stock or other beneficial interest in such legal en16 tity. 

17 SEC. 609. ELIMINATION OF CONSUMPTIVE DEMAND EXCEP18 TION TO PROHIBITION ON IMPORTATION OF 

19 GOODS MADE WITH CONVICT LABOR, FORCED 

20 LABOR, OR INDENTURED LABOR; REPORT. 

21 (a) ELIMINATION OF CONSUMPTIVE DEMAND EXCEP22 TION.— 

23 (1) IN GENERAL.—Section 307 of the Tariff Act 

24 of 1930 (19 U.S.C. 1307) is amended by striking 


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1 ‘‘The provisions of this section’’ and all that follows 

2 through ‘‘of the United States.’’. 

3 (2) EFFECTIVE DATE.—The amendment made by 

4 paragraph (1) shall take effect on the date that is 15 

5 days after the date of the enactment of this Act. 

6 (b) REPORT REQUIRED.—Not later than 180 days 

7 after the date of the enactment of this Act, and annually 

8 thereafter, the Commissioner shall submit to the Committee 

9 on Finance of the Senate and the Committee on Ways and 

10 Means of the House of Representatives a report on compli11 ance with section 307 of the Tariff Act of 1930 (19 U.S.C. 

12 1307) that includes the following: 

13 (1) The number of instances in which merchan14 dise was denied entry pursuant to that section during 

15 the 1-year period preceding the submission of the re16 port. 

17 (2) A description of the merchandise denied 

18 entry pursuant to that section. 

19 (3) Such other information as the Commissioner 

20 considers appropriate with respect to monitoring and 

21 enforcing compliance with that section. 

22 SEC. 610. CUSTOMS USER FEES. 

23 (a) IN GENERAL.—Section 13031(j)(3) of the Consoli24 dated Omnibus Budget Reconciliation Act of 1985 (19 


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1 U.S.C. 58c(j)(3)) is amended by adding at the end the fol2 lowing: 

3 ‘‘(C) Fees may be charged under paragraphs (9) and 

4 (10) of subsection (a) during the period beginning on July 

5 8, 2025, and ending on July 28, 2025.’’. 

6 (b) RATE FOR MERCHANDISE PROCESSING FEES.— 

7 Section 503 of the United States–Korea Free Trade Agree8 ment Implementation Act (Public Law 112–41; 125 Stat. 

9 460) is amended— 

10 (1) by striking ‘‘For the period’’ and inserting 

11 ‘‘(a) IN GENERAL.—For the period’’; and 

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

13 ‘‘(b) ADDITIONAL PERIOD.—For the period beginning 

14 on July 1, 2025, and ending on July 14, 2025, section 

15 13031(a)(9) of the Consolidated Omnibus Budget Reconcili16 ation Act of 1985 (19 U.S.C. 58c(a)(9)) shall be applied 

17 and administered— 

18 ‘‘(1) in subparagraph (A), by substituting 

19 ‘0.3464’ for ‘0.21’; and 

20 ‘‘(2) in subparagraph (B)(i), by substituting 

21 ‘0.3464’ for ‘0.21’.’’. 

22 SEC. 611. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER 

23 PROTECTION AGREEMENTS. 

24 (a) IN GENERAL.—Not later than one year after enter25 ing into an agreement under a program specified in subVerDate Sep 11 2014 00:53 May 15, 2015 Jkt 049200 PO 00000 Frm 00183 Fmt 6652 Sfmt 6203 E:\BILLS\H1907.RH H1907

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1 section (b), and annually thereafter until the termination 

2 of the program, the Commissioner shall submit to the Com3 mittee on Finance of the Senate and the Committee on 

4 Ways and Means of the House of Representatives a report 

5 that includes the following: 

6 (1) A description of the development of the pro7 gram. 

8 (2) A description of the type of entity with which 

9 U.S. Customs and Border Protection entered into the 

10 agreement and the amount that entity reimbursed 

11 U.S. Customs and Border Protection under the agree12 ment. 

13 (3) An identification of the type of port of entry 

14 to which the agreement relates and an assessment of 

15 how the agreement provides economic benefits at the 

16 port of entry. 

17 (4) A description of the services provided by U.S. 

18 Customs and Border Protection under the agreement 

19 during the year preceding the submission of the re20 port. 

21 (5) The amount of fees collected under the agree22 ment during that year. 

23 (6) A detailed accounting of how the fees col24 lected under the agreement have been spent during 

25 that year. 


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1 (7) A summary of any complaints or criticism 

2 received by U.S. Customs and Border Protection dur3 ing that year regarding the agreement. 

4 (8) An assessment of the compliance of the entity 

5 described in paragraph (2) with the terms of the 

6 agreement. 

7 (9) Recommendations with respect to how activi8 ties conducted pursuant to the agreement could func9 tion more effectively or better produce economic bene10 fits. 

11 (10) A summary of the benefits to and challenges 

12 faced by U.S. Customs and Border Protection and the 

13 entity described in paragraph (2) under the agree14 ment. 

15 (b) PROGRAM SPECIFIED.—A program specified in 

16 this subsection is— 

17 (1) the program for entering into reimbursable 

18 fee agreements for the provision of U.S. Customs and 

19 Border Protection services established by section 560 

20 of the Department of Homeland Security Appropria21 tions Act, 2013 (division D of Public Law 113–6; 127 

22 Stat. 378); or 

23 (2) the pilot program authorizing U.S. Customs 

24 and Border Protection to enter into partnerships with 

25 private sector and government entities at ports of 


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1 entry established by section 559 of the Department of 

2 Homeland Security Appropriations Act, 2014 (divi3 sion F of Public Law 113–76; 6 U.S.C. 211 note). 

4 SEC. 612. CERTAIN INTEREST TO BE INCLUDED IN DIS5 TRIBUTIONS UNDER CONTINUED DUMPING 

6 AND SUBSIDY OFFSET ACT OF 2000. 

7 (a) IN GENERAL.—Notwithstanding any other provi8 sion of law, the Commissioner shall include in all distribu9 tions of collected antidumping and countervailing duties 

10 described in subsection (b) all interest earned on such du11 ties, including— 

12 (1) interest accrued under section 778 of the Tar13 iff Act of 1930 (19 U.S.C. 1677g), 

14 (2) interest accrued under section 505(d) of the 

15 Tariff Act of 1930 (19 U.S.C. 1505(d)), and 

16 (3) common-law equitable interest, and all inter17 est under section 963 of the Revised Statutes of the 

18 United States (19 U.S.C. 580), awarded by a court 

19 against a surety’s late payment of antidumping or 

20 countervailing duties and interest described in para21 graph (1) or (2), under its bond, 

22 which is, or was, realized through application of any pay23 ment received on or after October 1, 2014, by U.S. Customs 

24 and Border Protection under, or in connection with, any 


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1 customs bond pursuant to a court order or judgment, or 

2 any settlement for any such bond. 

3 (b) DISTRIBUTIONS DESCRIBED.—The distributions 

4 described in subsection (a) are all distributions made on 

5 or after the date of the enactment of this Act pursuant to 

6 section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c) (as 

7 such section was in effect on February 7, 2006) of collected 

8 antidumping and countervailing duties assessed on or after 

9 October 1, 2000, on entries made through September 30, 

10 2007. 


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Union Calendar No. 80 

114TH CONGRESS 

1ST SESSION H. R. 1907 

[Report No. 114–114, Part I] 

A BILL 

To reauthorize trade facilitation and trade enforceposes. ment functions and activities, and for other purMAY 14, 2015 

Reported from the Committee on Ways and Means with 

M

an amendment 

AY 14, 2015 

The Committees on Homeland Security, Foreign Affairs, 

State of the Union and ordered to be printed mitted to the Committee of the Whole House on the Financial Services, and the Judiciary discharged; comVerDate Sep 11 2014 00:53 May 15, 2015 Jkt 049200 PO 00000 Frm 00188 Fmt 6651 Sfmt 6651 E:\BILLS\H1907.RH H1907

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