I 

114TH CONGRESS 

1ST SESSION H. R. 1907 

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 

A BILL 

To reauthorize trade facilitation and trade enforcement 

functions and activities, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Trade Facilitation and Trade Enforcement 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. 


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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. 

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. 


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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. 

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. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) AUTOMATED COMMERCIAL ENVIRON4 MENT.—The term ‘‘Automated Commercial EnvironVerDate Sep 11 2014 00:33 Apr 22, 2015 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1907.IH H1907

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1 ment’’ means the Automated Commercial Environ2 ment computer system authorized under section 

3 13031(f)(4) of the Consolidated Omnibus Budget 

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

5 (2) COMMISSIONER.—The term ‘‘Commis6 sioner’’ means the Commissioner responsible for 

7 U.S. Customs and Border Protection. 

8 (3) CUSTOMS AND TRADE LAWS OF THE

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

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

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

12 1202 et seq.). 

13 (B) Section 249 of the Revised Statutes 

14 (19 U.S.C. 3). 

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

16 (42 Stat. 1453, chapter 251; 19 U.S.C. 6). 

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

18 1381, chapter 348; 19 U.S.C. 2071 et seq.). 

19 (E) Section 13031 of the Consolidated 

20 Omnibus Budget Reconciliation Act of 1985 

21 (19 U.S.C. 58c). 

22 (F) Section 251 of the Revised Statutes 

23 (19 U.S.C. 66). 

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

25 (46 Stat. 817, chapter 617; 19 U.S.C. 68). 


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1 (H) The Foreign Trade Zones Act (19 

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

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

4 (36 Stat. 965, chapter 191; 19 U.S.C. 198). 

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

6 2102 et seq.). 

7 (K) The Trade Agreements Act of 1979 

8 (19 U.S.C. 2501 et seq.). 

9 (L) The North American Free Trade 

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

11 3301 et seq.). 

12 (M) The Uruguay Round Agreements Act 

13 (19 U.S.C. 3501 et seq.). 

14 (N) The Caribbean Basin Economic Recov15 ery Act (19 U.S.C. 2701 et seq.). 

16 (O) The Andean Trade Preference Act (19 

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

18 (P) The African Growth and Opportunity 

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

20 (Q) The Customs Enforcement Act of 

21 1986 (Public Law 99–570; 100 Stat. 3207–79). 

22 (R) The Customs and Trade Act of 1990 

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


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1 (S) The Customs Procedural Reform and 

2 Simplification Act of 1978 (Public Law 95– 

3 410; 92 Stat. 888). 

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

5 107–210; 116 Stat. 933). 

6 (U) The Convention on Cultural Property 

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

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

9 374, chapter 266; 19 U.S.C. 2077 et seq.) 

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

11 1263, chapter 566). 

12 (X) Any other provision of law imple13 menting a trade agreement. 

14 (Y) Any other provision of law vesting cus15 toms revenue functions in the Secretary of the 

16 Treasury. 

17 (Z) Any other provision of law relating to 

18 trade facilitation or trade enforcement that is 

19 administered by U.S. Customs and Border Pro20 tection on behalf of any Federal agency that is 

21 required to participate in the International 

22 Trade Data System. 

23 (AA) Any other provision of customs or 

24 trade law administered by U.S. Customs and 


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1 Border Protection or U.S. Immigration and 

2 Customs Enforcement. 

3 (4) PRIVATE SECTOR ENTITY.—The term ‘‘pri4 vate sector entity’’ means— 

5 (A) an importer; 

6 (B) an exporter; 

7 (C) a forwarder; 

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

9 (E) a contract logistics provider; 

10 (F) a customs broker; or 

11 (G) any other person (other than an em12 ployee of a government) affected by the imple13 mentation of the customs and trade laws of the 

14 United States. 

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

16 enforcement’’ means the enforcement of the customs 

17 and trade laws of the United States. 

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

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

20 Customs and Border Protection with respect to fa21 cilitating the movement of merchandise into and out 

22 of the United States in a manner that complies with 

23 the customs and trade laws of the United States. 


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1 TITLE I—TRADE FACILITATION 

2 AND TRADE ENFORCEMENT 

3 SEC. 101. IMPROVING PARTNERSHIP PROGRAMS. 

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

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

6 Customs and Border Protection, the Commissioner shall 

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

8 Border Protection established before the date of the enact9 ment of this Act, such as the Customs–Trade Partnership 

10 Against Terrorism established under subtitle B of title II 

11 of the Security and Accountability for Every Port Act of 

12 2006 (6 U.S.C. 961 et seq.), and partnership programs 

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

14 such date of enactment, provide trade benefits to private 

15 sector entities that meet the requirements for participation 

16 in those programs established by the Commissioner under 

17 this section. 

18 (b) ELEMENTS.—In developing and operating part19 nership programs under subsection (a), the Commissioner 

20 shall— 

21 (1) consult with private sector entities, the pub22 lic, and other Federal agencies when appropriate, to 

23 ensure that participants in those programs receive 

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1 dise for qualified persons that demonstrate the high2 est levels of compliance with the customs and trade 

3 laws of the United States, regulations of U.S. Cus4 toms and Border Protection, and other requirements 

5 the Commissioner determines to be necessary; 

6 (2) ensure an integrated and transparent sys7 tem of trade benefits and compliance requirements 

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

9 Border Protection; 

10 (3) consider consolidating partnership programs 

11 in situations in which doing so would support the 

12 objectives of such programs, increase participation in 

13 such programs, enhance the trade benefits provided 

14 to participants in such programs, and enhance the 

15 allocation of the resources of U.S. Customs and Bor16 der Protection; 

17 (4) coordinate with the Director of U.S. Immi18 gration and Customs Enforcement, and other Fed19 eral agencies with authority to detain and release 

20 merchandise entering the United States— 

21 (A) to ensure coordination in the release of 

22 such merchandise through the Automated Com23 mercial Environment, or its predecessor, and 

24 the International Trade Data System; 


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1 (B) to ensure that the partnership pro2 grams of those agencies are compatible with the 

3 partnership programs of U.S. Customs and 

4 Border Protection; 

5 (C) to develop criteria for authorizing the 

6 release, on an expedited basis, of merchandise 

7 for which documentation is required from one 

8 or more of those agencies to clear or license the 

9 merchandise for entry into the United States; 

10 and 

11 (D) to create pathways, within and among 

12 the appropriate Federal agencies, for qualified 

13 persons that demonstrate the highest levels of 

14 compliance to receive immediate clearance ab15 sent information that a transaction may pose a 

16 national security or compliance threat; and 

17 (5) ensure that trade benefits are provided to 

18 participants in partnership programs. 

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

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

21 Act, and December 31 of each year thereafter, the Com22 missioner shall submit to the Committee on Finance of 

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

24 House of Representatives a report that— 


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1 (1) identifies each partnership program referred 

2 to in subsection (a); 

3 (2) for each such program, identifies— 

4 (A) the requirements for participants in 

5 the program; 

6 (B) the commercially significant and meas7 urable trade benefits provided to participants in 

8 the program; 

9 (C) the number of participants in the pro10 gram; and 

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

12 for participation at multiple tiers, the number 

13 of participants at each such tier; 

14 (3) identifies the number of participants en15 rolled in more than one such partnership program; 

16 (4) assesses the effectiveness of each such part17 nership program in advancing the security, trade en18 forcement, and trade facilitation missions of U.S. 

19 Customs and Border Protection, based on historical 

20 developments, the level of participation in the pro21 gram, and the evolution of benefits provided to par22 ticipants in the program; 

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

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1 dise entering the United States to ensure that part2 nership programs of those agencies are compatible 

3 with partnership programs of U.S. Customs and 

4 Border Protection; 

5 (6) summarizes criteria developed with those 

6 agencies for authorizing the release, on an expedited 

7 basis, of merchandise for which documentation is re8 quired from one or more of those agencies to clear 

9 or license the merchandise for entry into the United 

10 States; 

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

12 Border Protection to work with private sector enti13 ties and the public to develop and improve partner14 ship programs referred to in subsection (a); 

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

16 and Border Protection to make private sector enti17 ties aware of the trade benefits available to partici18 pants in such programs; and 

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

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

21 such programs for the 2 years following the submis22 sion of the report. 


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1 SEC. 102. REPORT ON EFFECTIVENESS OF TRADE EN2 FORCEMENT 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 

6 Finance of the Senate and the Committee on Ways and 

7 Means of the House of Representatives a report on the 

8 effectiveness of trade enforcement activities of U.S. Cus9 toms and Border Protection. 

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

11 (a) 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, 

19 fraud prevention and detection, and penalties, in20 cluding intentional misclassification, inadequate 

21 bonding, and other misrepresentations. 

22 SEC. 103. PRIORITIES AND PERFORMANCE STANDARDS 

23 FOR CUSTOMS MODERNIZATION, TRADE FA24 CILITATION, AND TRADE ENFORCEMENT 

25 FUNCTIONS 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 

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

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

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

22 Act. 

23 (3) The Centers of Excellence and Expertise de24 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 

8 1930 (19 U.S.C. 1671 et seq.) and antidumping du9 ties assessed under subtitle B of title VII of the Tar10 iff Act 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 

19 notify the Committee on Finance of the Senate and 

20 the Committee on Ways and Means of the House of 

21 Representatives of any changes to the priorities re22 ferred to in subsection (a) not later than 30 days be23 fore such changes are to take effect. 


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1 SEC. 104. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS 

2 TO CLASSIFY AND APPRAISE IMPORTED AR3 TICLES, TO IMPROVE TRADE ENFORCEMENT 

4 EFFORTS, AND TO OTHERWISE FACILITATE 

5 LEGITIMATE 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 

13 States in accordance with the customs and 

14 trade laws of the United States; 

15 (B) improve the trade enforcement efforts 

16 of U.S. Customs and Border Protection per17 sonnel and U.S. Immigration and Customs En18 forcement 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

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


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1 the Commissioner, the Director, and interested par2 ties in the private sector selected under subsection 

3 (c) shall provide instruction and related instructional 

4 materials at each educational seminar under this 

5 section to U.S. Customs and Border Protection per6 sonnel and, as appropriate, to U.S. Immigration and 

7 Customs 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 deter11 mine if the article is mislabeled in the manifest 

12 or 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 

16 the 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 

22 by the Commissioner. 

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

25 the Director, and interested parties in the private 


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1 sector selected under subsection (c) shall provide in2 struction and related instructional materials at each 

3 educational seminar under this section to U.S. Cus4 toms and Border Protection personnel and, as ap5 propriate, to U.S. Immigration and Customs En6 forcement personnel to identify opportunities to en7 hance enforcement 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 

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

13 1673 et seq.). 

14 (B) Addressing evasion of duties on im15 ports 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 sec22 tion shall be subject to the approval of the Commis23 sioner and the Director. 

24 (c) SELECTION PROCESS.— 


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1 (1) IN GENERAL.—The Commissioner shall es2 tablish a process to solicit, evaluate, and select inter3 ested parties in the private sector for purposes of as4 sisting in providing instruction and related instruc5 tional materials described in subsection (b) at each 

6 educational seminar under this section. 

7 (2) CRITERIA.—The Commissioner shall evalu8 ate 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 

16 by the Commissioner. 

17 (3) PUBLIC AVAILABILITY.—The Commissioner 

18 and the Director shall publish in the Federal Reg19 ister a detailed description of the process established 

20 under paragraph (1) and the criteria established 

21 under paragraph (2). 

22 (d) SPECIAL RULE FOR ANTIDUMPING AND COUN23 TERVAILING 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 Pro3 tection 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 

6 1673e) upon the request of a petitioner in an action 

7 underlying such countervailing or antidumping duty 

8 order. 

9 (2) INTERESTED PARTY.—A petitioner de10 scribed in paragraph (1) shall be treated as an inter11 ested party in the private sector for purposes of the 

12 requirements of this section. 

13 (e) PERFORMANCE STANDARDS.—The Commissioner 

14 and the Director shall establish performance standards to 

15 measure the development and level of achievement of edu16 cational seminars under this section. 

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

18 Commissioner and the Director shall submit to the Com19 mittee of Finance of the Senate and the Committee of 

20 Ways and Means of the House of Representatives an an21 nual report on the effectiveness of educational seminars 

22 under this section. 

23 (g) DEFINITIONS.—In this section: 


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

2 the Director of U.S. Immigration and Customs En3 forcement. 

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

5 States’’ means the customs territory of the United 

6 States, as defined in General Note 2 to the Har7 monized Tariff Schedule of the United States. 

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

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

10 Protection personnel’’ means import specialists, 

11 auditors, and other appropriate employees of the 

12 U.S. Customs and Border Protection. 

13 (4) U.S. IMMIGRATION AND CUSTOMS ENFORCE14 MENT PERSONNEL.—The term ‘‘U.S. Immigrations 

15 and Customs Enforcement personnel’’ means Home16 land Security Investigations Directorate personnel 

17 and other appropriate employees of U.S. Immigra18 tions and Customs Enforcement. 

19 SEC. 105. JOINT STRATEGIC PLAN. 

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

21 date of the enactment of this Act, and every 2 years there22 after, the Commissioner and the Director of U.S. Immi23 gration and Customs Enforcement shall jointly develop 

24 and submit to the Committee on Finance of the Senate 


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

2 Representatives, a joint strategic plan. 

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

4 under this section shall be comprised of a comprehensive 

5 multi-year plan for trade enforcement and trade facilita6 tion, and shall include— 

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

8 year period preceding the submission of the plan to 

9 improve trade enforcement and trade facilitation, in10 cluding a description and analysis of specific per11 formance measures to evaluate the progress of U.S. 

12 Customs and Border Protection and U.S. Immigra13 tion and Customs Enforcement in meeting each such 

14 responsibility; 

15 (2) a statement of objectives and plans for fur16 ther improving trade enforcement and trade facilita17 tion; 

18 (3) a specific identification of the priority trade 

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

20 2(d) of the Act of March 3, 1927 (44 Stat. 1381, 

21 chapter 348; 19 U.S.C. 2072(d)), as added by sec22 tion 111(a) of this Act, that can be addressed in 

23 order to enhance trade enforcement and trade facili24 tation, and a description of strategies and plans for 

25 addressing each such issue; 


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1 (4) a description of efforts made to improve 

2 consultation and coordination among and within 

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

4 Customs and Border Protection and U.S. Immigra5 tion and Customs Enforcement, regarding trade en6 forcement and trade facilitation; 

7 (5) a description of the training that has oc8 curred to date within U.S. Customs and Border Pro9 tection and U.S. Immigration and Customs Enforce10 ment to improve trade enforcement and trade facili11 tation, including training under section 104 of this 

12 Act; 

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

14 World Customs Organization and other international 

15 organizations, in consultation with other Federal 

16 agencies as appropriate, with respect to enhancing 

17 trade enforcement and trade facilitation; 

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

19 Protection organizational benchmarks for optimizing 

20 staffing and wait times at ports of entry; 

21 (8) a specific identification of any domestic or 

22 international best practices that may further im23 prove trade enforcement and trade facilitation; 


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1 (9) any legislative recommendations to further 

2 improve trade enforcement and trade facilitation; 

3 and 

4 (10) a description of efforts made to improve 

5 consultation and coordination with the private sector 

6 to enhance trade enforcement and trade facilitation. 

7 (c) CONSULTATIONS.— 

8 (1) IN GENERAL.—In developing the joint stra9 tegic plan required under this section, the Commis10 sioner and the Director shall consult with— 

11 (A) appropriate officials from the relevant 

12 Federal agencies, including— 

13 (i) the Department of the Treasury; 

14 (ii) the Department of Agriculture; 

15 (iii) the Department of Commerce; 

16 (iv) the Department of Justice; 

17 (v) the Department of the Interior; 

18 (vi) the Department of Health and 

19 Human Services; 

20 (vii) the Food and Drug Administra21 tion; 

22 (viii) the Consumer Product Safety 

23 Commission; and 

24 (ix) the Office of the United States 

25 Trade Representative; and 


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1 (B) the Commercial Customs Operations 

2 Advisory Committee established by section 109 

3 of this Act. 

4 (2) OTHER CONSULTATIONS.—In developing 

5 the joint strategic plan required under this section, 

6 the Commissioner and the Director shall seek to 

7 consult with— 

8 (A) appropriate officials from relevant for9 eign law enforcement agencies and international 

10 organizations, including the World Customs Or11 ganization; and 

12 (B) interested parties in the private sector. 

13 SEC. 106. AUTOMATED COMMERCIAL ENVIRONMENT. 

14 (a) FUNDING.—Section 13031(f)(4)(B) of the Con15 solidated Omnibus Budget Reconciliation Act of 1985 (19 

16 U.S.C. 58c(f)(4)(B)) is amended— 

17 (1) by striking ‘‘2003 through 2005’’ and in18 serting ‘‘2016 through 2018’’; 

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

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

21 $153,736,000’’; and 

22 (3) by striking ‘‘for the development’’ and in23 serting ‘‘to complete the development and implemen24 tation’’. 


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1 (b) REPORT.—Section 311(b)(3) of the Customs Bor2 der Security Act of 2002 (19 U.S.C. 2075 note) is amend3 ed to read as follows: 

4 ‘‘(3) REPORT.— 

5 ‘‘(A) IN GENERAL.—Not later than De6 cember 31, 2016, the Commissioner responsible 

7 for U.S. Customs and Border Protection shall 

8 submit to the Committee on Appropriations and 

9 the Committee on Finance of the Senate and 

10 the Committee on Appropriations and the Com11 mittee on Ways and Means of the House of 

12 Representatives a report detailing— 

13 ‘‘(i) U.S. Customs and Border Protec14 tion’s incorporation of all core trade proc15 essing capabilities, including cargo release, 

16 entry summary, cargo manifest, cargo fi17 nancial data, and export data elements 

18 into the Automated Commercial Environ19 ment computer system authorized under 

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

21 Omnibus Budget and Reconciliation Act of 

22 1985 (19 U.S.C. 58c(f)(4)) not later than 

23 September 30, 2016, to conform with the 

24 admissibility criteria of agencies partici25 pating in the International Trade Data 


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1 System identified pursuant to section 

2 411(d)(4)(A)(iii) of the Tariff Act of 1930; 

3 ‘‘(ii) U.S. Customs and Border Pro4 tection’s remaining priorities for processing 

5 entry summary data elements, cargo mani6 fest data elements, cargo financial data 

7 elements, and export elements in the Auto8 mated Commercial Environment computer 

9 system, and the objectives and plans for 

10 implementing these remaining priorities; 

11 ‘‘(iii) the components of the National 

12 Customs Automation Program specified in 

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

14 Tariff Act of 1930 that have not been im15 plemented; and 

16 ‘‘(iv) any additional components of the 

17 National Customs Automation Program 

18 initiated by the Commissioner to complete 

19 the development, establishment, and imple20 mentation of the Automated Commercial 

21 Environment computer system. 

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

23 than September 30, 2017, the Commissioner 

24 shall submit to the Committee on Appropria25 tions and the Committee on Finance of the 


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1 Senate and the Committee on Appropriations 

2 and the Committee on Ways and Means of the 

3 House of Representatives an updated report ad4 dressing each of the matters referred to in sub5 paragraph (A), and— 

6 ‘‘(i) evaluating the effectiveness of the 

7 implementation of the Automated Commer8 cial Environment computer system; and 

9 ‘‘(ii) detailing the percentage of trade 

10 processed in the Automated Commercial 

11 Environment every month since September 

12 30, 2016.’’. 

13 (c) GOVERNMENT ACCOUNTABILITY OFFICE RE14 PORT.—Not later than December 31, 2017, the Comp15 troller General of the United States shall submit to the 

16 Committee on Appropriations and the Committee on Fi17 nance of the Senate and the Committee on Appropriations 

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

19 Representatives a report— 

20 (1) assessing the progress of other Federal 

21 agencies in accessing and utilizing the Automated 

22 Commercial Environment; and 

23 (2) assessing the potential cost savings to the 

24 United States Government and importers and ex25 porters and the potential benefits to enforcement of 


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1 the customs and trade laws of the United States if 

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

3 section 311(b)(3)(A) of the Customs Border Secu4 rity Act of 2002, as amended by subsection (b) of 

5 this section, are implemented. 

6 SEC. 107. INTERNATIONAL TRADE DATA SYSTEM. 

7 (a) INFORMATION TECHNOLOGY INFRASTRUC8 TURE.—Section 411(d) of the Tariff Act of 1930 (19 

9 U.S.C. 1411(d)) is amended— 

10 (1) by redesignating paragraphs (4) through 

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

12 (2) by inserting after paragraph (3) the fol13 lowing: 

14 ‘‘(4) INFORMATION TECHNOLOGY INFRASTRUC15 TURE.— 

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

17 work with the head of each agency participating 

18 in the ITDS and the Interagency Steering 

19 Committee to ensure that each agency— 

20 ‘‘(i) develops and maintains the nec21 essary information technology infrastruc22 ture to support the operation of the ITDS 

23 and to submit all data to the ITDS elec24 tronically; 


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1 ‘‘(ii) enters into a memorandum of 

2 understanding, or takes such other action 

3 as is necessary, to provide for the informa4 tion sharing between the agency and U.S. 

5 Customs and Border Protection necessary 

6 for the operation and maintenance of the 

7 ITDS; 

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

9 identifies and transmits to the Commis10 sioner responsible for U.S. Customs and 

11 Border Protection the admissibility criteria 

12 and data elements required by the agency 

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

14 Customs and Border Protection for incor15 poration into the operational functionality 

16 of the Automated Commercial Environ17 ment computer system authorized under 

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

19 Omnibus Budget and Reconciliation Act of 

20 1985 (19 U.S.C. 58c(f)(4)); and 

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

22 2016, utilizes the ITDS as the primary 

23 means of receiving from users the standard 

24 set of data and other relevant documenta25 tion, exclusive of applications for permits, 


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1 licenses, or certifications required for the 

2 release of imported cargo and clearance of 

3 cargo for export. 

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

5 in this paragraph shall be construed to require 

6 any action to be taken that would compromise 

7 an ongoing law enforcement investigation or na8 tional security.’’; and 

9 (3) in paragraph (8), as redesignated, by strik10 ing ‘‘section 9503(c) of the Omnibus Budget Rec11 onciliation Act of 1987 (19 U.S.C. 2071 note)’’ and 

12 inserting ‘‘section 109 of the Trade Facilitation and 

13 Trade Enforcement Act of 2015’’. 

14 SEC. 108. CONSULTATIONS WITH RESPECT TO MUTUAL 

15 RECOGNITION ARRANGEMENTS. 

16 (a) CONSULTATIONS.—The Secretary of Homeland 

17 Security, with respect to any proposed mutual recognition 

18 arrangement or similar agreement between the United 

19 States and a foreign government providing for mutual rec20 ognition of supply chain security programs and customs 

21 revenue functions, shall consult— 

22 (1) not later than 30 days before initiating ne23 gotiations to enter into any such arrangement or 

24 similar agreement, with the Committee on Finance 


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1 of the Senate and the Committee on Ways and 

2 Means of the House of Representatives; and 

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

4 any such arrangement or similar agreement, with 

5 the Committee on Finance of the Senate and the 

6 Committee on Ways and Means of the House of 

7 Representatives. 

8 (b) NEGOTIATING OBJECTIVE.—It shall be a negoti9 ating objective of the United States in any negotiation for 

10 a mutual recognition arrangement with a foreign country 

11 on partnership programs, such as the Customs-Trade 

12 Partnership Against Terrorism established under subtitle 

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

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

15 the compatibility of the partnership programs of that 

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

17 and Border Protection to enhance trade facilitation and 

18 trade enforcement. 

19 SEC. 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY 

20 COMMITTEE. 

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

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

23 the Secretary of the Treasury and the Secretary of Home24 land Security shall jointly establish a Commercial Customs 


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1 Operations Advisory Committee (in this section referred 

2 to as the ‘‘Advisory Committee’’). 

3 (b) MEMBERSHIP.— 

4 (1) IN GENERAL.—The Advisory Committee 

5 shall be comprised of— 

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

8 (B) the Assistant Secretary for Tax Policy 

9 of the Department of the Treasury and the 

10 Commissioner, who shall jointly co-chair meet11 ings of the Advisory Committee; and 

12 (C) the Assistant Secretary for Policy and 

13 the Director of U.S. Immigration and Customs 

14 Enforcement of the Department of Homeland 

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

16 meetings of the Advisory Committee. 

17 (2) APPOINTMENT.— 

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

19 Treasury and the Secretary of Homeland Secu20 rity shall jointly appoint 20 individuals from 

21 the private sector to the Advisory Committee. 

22 (B) REQUIREMENTS.—In making appoint23 ments under subparagraph (A), the Secretary 

24 of the Treasury and the Secretary of Homeland 

25 Security shall appoint members— 


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1 (i) to ensure that the membership of 

2 the Advisory Committee is representative 

3 of the individuals and firms affected by the 

4 commercial operations of U.S. Customs 

5 and Border Protection; and 

6 (ii) without regard to political affili7 ation. 

8 (C) TERMS.—Each individual appointed to 

9 the Advisory Committee under this paragraph 

10 shall be appointed for a term of not more than 

11 3 years, and may be reappointed to subsequent 

12 terms, but may not serve more than 2 terms se13 quentially. 

14 (3) TRANSFER OF MEMBERSHIP.—The Sec15 retary of the Treasury and the Secretary of Home16 land Security may transfer members serving on the 

17 Advisory Committee on Commercial Operations of 

18 the United States Customs Service established under 

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

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

22 Advisory Committee established under subsection 

23 (a). 

24 (c) DUTIES.—The Advisory Committee established 

25 under subsection (a) shall— 


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1 (1) advise the Secretary of the Treasury and 

2 the Secretary of Homeland Security on all matters 

3 involving the commercial operations of U.S. Customs 

4 and Border Protection, including advising with re5 spect to significant changes that are proposed with 

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

7 Customs and Border Protection; 

8 (2) provide recommendations to the Secretary 

9 of the Treasury and the Secretary of Homeland Se10 curity on improvements to the commercial operations 

11 of U.S. Customs and Border Protection; 

12 (3) collaborate in developing the agenda for Ad13 visory Committee meetings; and 

14 (4) perform such other functions relating to the 

15 commercial operations of U.S. Customs and Border 

16 Protection as prescribed by law or as the Secretary 

17 of the Treasury and the Secretary of Homeland Se18 curity jointly direct. 

19 (d) MEETINGS.— 

20 (1) IN GENERAL.—The Advisory Committee 

21 shall meet at the call of the Secretary of the Treas22 ury and the Secretary of Homeland Security, or at 

the call of not less than 2 23 ⁄3 of the membership of the 

24 Advisory Committee. The Advisory Committee shall 

25 meet at least 4 times each calendar year. 


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1 (2) OPEN MEETINGS.—Notwithstanding section 

2 10(a) of the Federal Advisory Committee Act (5 

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

4 shall be open to the public unless the Secretary of 

5 the Treasury or the Secretary of Homeland Security 

6 determines that the meeting will include matters the 

7 disclosure of which would compromise the develop8 ment of policies, priorities, or negotiating objectives 

9 or positions that could impact the commercial oper10 ations of U.S. Customs and Border Protection or 

11 the operations or investigations of U.S. Immigration 

12 and Customs Enforcement. 

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

14 2016, and annually thereafter, the Advisory Committee 

15 shall submit to the Committee on Finance of the Senate 

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

17 Representatives a report that— 

18 (1) describes the activities of the Advisory Com19 mittee during the preceding fiscal year; and 

20 (2) sets forth any recommendations of the Advi21 sory Committee regarding the commercial operations 

22 of U.S. Customs and Border Protection. 

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

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


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1 termination of advisory committees) shall not apply to the 

2 Advisory Committee. 

3 (g) CONFORMING AMENDMENT.— 

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

5 which the Advisory Committee is established under 

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

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

8 note) is repealed. 

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

10 Advisory Committee on Commercial Operations of 

11 the United States Customs Service established under 

12 section 9503(c) of the Omnibus Budget Reconcili13 ation Act of 1987 (19 U.S.C. 2071 note) made on 

14 or after the date on which the Advisory Committee 

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

16 a reference to the Commercial Customs Operations 

17 Advisory Committee established under subsection 

18 (a). 

19 SEC. 110. CENTERS OF EXCELLENCE AND EXPERTISE. 

20 (a) IN GENERAL.—The Commissioner shall, in con21 sultation with the Committee on Finance of the Senate, 

22 the Committee on Ways and Means of the House of Rep23 resentatives, and the Commercial Customs Operations Ad24 visory Committee established by section 109 of this Act, 

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1 tise throughout U.S. Customs and Border Protection 

2 that— 

3 (1) enhance the economic competitiveness of the 

4 United States by consistently enforcing the laws and 

5 regulations of the United States at all ports of entry 

6 of the United States and by facilitating the flow of 

7 legitimate trade through increasing industry-based 

8 knowledge; 

9 (2) improve enforcement efforts, including en10 forcement of priority trade issues described in sub11 paragraph (B)(ii) of section 2(d)(3) of the Act of 

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

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

14 Act, in specific industry sectors through the applica15 tion of targeting information from the Commercial 

16 Targeting Division established under subparagraph 

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

18 verification; 

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

20 and Border Protection in particular industry oper21 ations, supply chains, and compliance requirements; 

22 (4) promote the uniform implementation at 

23 each port of entry of the United States of policies 

24 and regulations relating to imports; 


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1 (5) centralize the trade enforcement and trade 

2 facilitation efforts of U.S. Customs and Border Pro3 tection; 

4 (6) formalize an account-based approach to 

5 apply, as the Commissioner determines appropriate, 

6 to the importation of merchandise into the United 

7 States; 

8 (7) foster partnerships though the expansion of 

9 trade programs and other trusted partner programs; 

10 (8) develop applicable performance measure11 ments to meet internal efficiency and effectiveness 

12 goals; and 

13 (9) whenever feasible, facilitate a more efficient 

14 flow of information between Federal agencies. 

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

16 the Commissioner shall submit to the Committee on Fi17 nance of the Senate and the Committee on Ways and 

18 Means of the House of Representatives a report describ19 ing— 

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

21 Center of Excellence and Expertise developed and 

22 implemented under subsection (a); 

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1 forts, including enforcement of priority trade issues, 

2 and facilitating legitimate trade; 

3 (3) the quantitative and qualitative benefits of 

4 each such Center of Excellence and Expertise to the 

5 trade community, including through fostering part6 nerships through the expansion of trade programs 

7 such as the Importer Self Assessment program and 

8 other trusted partner programs; 

9 (4) all applicable performance measurements 

10 with respect to each such Center of Excellence and 

11 Expertise, including performance measures with re12 spect to meeting internal efficiency and effectiveness 

13 goals; 

14 (5) the performance of each such Center of Ex15 cellence and Expertise in increasing the accuracy 

16 and completeness of data with respect to inter17 national trade and facilitating a more efficient flow 

18 of information between Federal agencies; and 

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

20 functions or any other aspect of the Centers of Ex21 cellence and Expertise developed and implemented 

22 under subsection (a). 


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1 SEC. 111. COMMERCIAL TARGETING DIVISION AND NA2 TIONAL TARGETING AND ANALYSIS GROUPS. 

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

4 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)) 

5 is amended by adding at the end the following: 

6 ‘‘(3) COMMERCIAL TARGETING DIVISION AND

7 NATIONAL TARGETING AND ANALYSIS GROUPS.— 

8 ‘‘(A) ESTABLISHMENT OF COMMERCIAL

9 TARGETING DIVISION.— 

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

11 Homeland Security shall establish and 

12 maintain within the Office of International 

13 Trade a Commercial Targeting Division. 

14 ‘‘(ii) COMPOSITION.—The Commercial 

15 Targeting Division shall be composed of— 

16 ‘‘(I) headquarters personnel led 

17 by an Executive Director, who shall 

18 report to the Assistant Commissioner 

19 for Trade; and 

20 ‘‘(II) individual National Tar21 geting and Analysis Groups, each led 

22 by a Director who shall report to the 

23 Executive Director of the Commercial 

24 Targeting Division. 

25 ‘‘(iii) DUTIES.—The Commercial Tar26 geting Division shall be dedicated— 


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1 ‘‘(I) to the development and con2 duct of commercial risk assessment 

3 targeting with respect to cargo des4 tined for the United States in accord5 ance with subparagraph (C); and 

6 ‘‘(II) to issuing Trade Alerts de7 scribed in subparagraph (D). 

8 ‘‘(B) NATIONAL TARGETING AND ANALYSIS

9 GROUPS.— 

10 ‘‘(i) IN GENERAL.—A National Tar11 geting and Analysis Group referred to in 

12 subparagraph (A)(ii)(II) shall, at a min13 imum, be established for each priority 

14 trade issue described in clause (ii). 

15 ‘‘(ii) PRIORITY TRADE ISSUES.— 

16 ‘‘(I) IN GENERAL.—The priority 

17 trade issues described in this clause 

18 are the following: 

19 ‘‘(aa) Agriculture programs. 

20 ‘‘(bb) Antidumping and 

21 countervailing duties. 

22 ‘‘(cc) Import safety. 

23 ‘‘(dd) Intellectual property 

24 rights. 

25 ‘‘(ee) Revenue. 


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1 ‘‘(ff) Textiles and wearing 

2 apparel. 

3 ‘‘(gg) Trade agreements and 

4 preference programs. 

5 ‘‘(II) MODIFICATION.—The Com6 missioner is authorized to establish 

7 new priority trade issues and elimi8 nate, consolidate, or otherwise modify 

9 the priority trade issues described in 

10 this paragraph if the Commissioner— 

11 ‘‘(aa) determines it nec12 essary and appropriate to do so; 

13 ‘‘(bb) submits to the Com14 mittee on Finance of the Senate 

15 and the Committee on Ways and 

16 Means of the House of Rep17 resentatives a summary of pro18 posals to consolidate, eliminate, 

19 or otherwise modify existing pri20 ority trade issues not later than 

21 60 days before such changes are 

22 to take effect; and 

23 ‘‘(cc) submits to the Com24 mittee on Finance of the Senate 

25 and the Committee on Ways and 


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1 Means of the House of Rep2 resentatives a summary of pro3 posals to establish new priority 

4 trade issues not later than 30 

5 days after such changes are to 

6 take effect. 

7 ‘‘(iii) DUTIES.—The duties of each 

8 National Targeting and Analysis Group 

9 shall include— 

10 ‘‘(I) directing the trade enforce11 ment and compliance assessment ac12 tivities of U.S. Customs and Border 

13 Protection that relate to the Group’s 

14 priority trade issue; 

15 ‘‘(II) facilitating, promoting, and 

16 coordinating cooperation and the ex17 change of information between U.S. 

18 Customs and Border Protection, U.S. 

19 Immigration and Customs Enforce20 ment, and other relevant Federal de21 partments and agencies regarding the 

22 Group’s priority trade issue; and 

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1 ing United States Government activi2 ties regarding the Group’s priority 

3 trade issue, including— 

4 ‘‘(aa) providing for receipt 

5 and transmission to the appro6 priate U.S. Customs and Border 

7 Protection office of allegations 

8 from interested parties in the pri9 vate sector of violations of cus10 toms and trade laws of the 

11 United States of merchandise re12 lating to the priority trade issue; 

13 ‘‘(bb) obtaining information 

14 from the appropriate U.S. Cus15 toms and Border Protection of16 fice on the status of any activi17 ties resulting from the submis18 sion of any such allegation, in19 cluding any decision not to pur20 sue the allegation, and providing 

21 any such information to each in22 terested party in the private sec23 tor that submitted the allegation 

24 every 90 days after the allegation 

25 was received by U.S. Customs 


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1 and Border Protection unless 

2 providing such information would 

3 compromise an ongoing law en4 forcement investigation; and 

5 ‘‘(cc) notifying on a timely 

6 basis each interested party in the 

7 private sector that submitted 

8 such allegation of any civil or 

9 criminal actions taken by U.S. 

10 Customs and Border Protection 

11 or other Federal department or 

12 agency resulting from the allega13 tion. 

14 ‘‘(C) COMMERCIAL RISK ASSESSMENT TAR15 GETING.—In carrying out its duties with re16 spect to commercial risk assessment targeting, 

17 the Commercial Targeting Division shall— 

18 ‘‘(i) establish targeted risk assessment 

19 methodologies and standards— 

20 ‘‘(I) for evaluating the risk that 

21 cargo destined for the United States 

22 may violate the customs and trade 

23 laws of the United States, particularly 

24 those laws applicable to merchandise 


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1 subject to the priority trade issues de2 scribed in subparagraph (B)(ii); and 

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

4 Trade Alerts described in subpara5 graph (D); and 

6 ‘‘(ii) to the extent practicable and oth7 erwise authorized by law, use, to admin8 ister the methodologies and standards es9 tablished under clause (i)— 

10 ‘‘(I) publicly available informa11 tion; 

12 ‘‘(II) information available from 

13 the Automated Commercial System, 

14 the Automated Commercial Environ15 ment computer system, the Auto16 mated Targeting System, the Auto17 mated Export System, the Inter18 national Trade Data System, the 

19 TECS (formerly known as the ‘Treas20 ury Enforcement Communications 

21 System’), the case management sys22 tem of U.S. Immigration and Customs 

23 Enforcement, and any successor sys24 tems; and 


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1 ‘‘(III) information made available 

2 to the Commercial Targeting Division, 

3 including information provided by pri4 vate sector entities. 

5 ‘‘(D) TRADE ALERTS.— 

6 ‘‘(i) ISSUANCE.—Based upon the ap7 plication of the targeted risk assessment 

8 methodologies and standards established 

9 under subparagraph (C), the Executive Di10 rector of the Commercial Targeting Divi11 sion and the Directors of the National 

12 Targeting and Analysis Groups may issue 

13 Trade Alerts to directors of United States 

14 ports of entry directing further inspection, 

15 or physical examination or testing, of spe16 cific merchandise to ensure compliance 

17 with all applicable customs and trade laws 

18 and regulations administered by U.S. Cus19 toms and Border Protection. 

20 ‘‘(ii) DETERMINATIONS NOT TO IM21 PLEMENT TRADE ALERTS.—The director 

22 of a United States port of entry may deter23 mine not to conduct further inspections, or 

24 physical examination or testing, pursuant 


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1 to a Trade Alert issued under clause (i) 

2 if— 

3 ‘‘(I) the director finds that such 

4 a determination is justified by security 

5 interests; and 

6 ‘‘(II) notifies the Assistant Com7 missioner of the Office of Field Oper8 ations and the Assistant Commis9 sioner of International Trade of U.S. 

10 Customs and Border Protection of the 

11 determination and the reasons for the 

12 determination not later than 48 hours 

13 after making the determination. 

14 ‘‘(iii) SUMMARY OF DETERMINATIONS

15 NOT TO IMPLEMENT.—The Assistant Com16 missioner of the Office of Field Operations 

17 of U.S. Customs and Border Protection 

18 shall— 

19 ‘‘(I) compile an annual public 

20 summary of all determinations by di21 rectors of United States ports of entry 

22 under clause (ii) and the reasons for 

23 those determinations; 


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1 ‘‘(II) conduct an evaluation of 

2 the 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 Representa8 tives not later than December 31 of 

9 each 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 mer17 chandise for transportation in bond 

18 through the United States, for purposes 

19 of— 

20 ‘‘(I) assessing duties; 

21 ‘‘(II) identifying restricted or 

22 prohibited items; and 

23 ‘‘(III) ensuring compliance with 

24 all applicable customs and trade laws 


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1 and regulations administered by U.S. 

2 Customs and Border Protection.’’. 

3 (b) USE OF TRADE DATA FOR COMMERCIAL EN4 FORCEMENT PURPOSES.—Section 343(a)(3)(F) of the 

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

6 read as follows: 

7 ‘‘(F) The information collected pursuant to 

8 the regulations shall be used exclusively for en9 suring cargo safety and security, preventing 

10 smuggling, and commercial risk assessment tar11 geting, and shall not be used for any commer12 cial enforcement purposes, including for deter13 mining merchandise entry. Notwithstanding the 

14 preceding sentence, nothing in this section shall 

15 be treated as amending, repealing, or otherwise 

16 modifying title IV of the Tariff Act of 1930 or 

17 regulations prescribed thereunder.’’. 

18 SEC. 112. REPORT ON OVERSIGHT OF REVENUE PROTEC19 TION AND ENFORCEMENT MEASURES. 

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

21 and not later than March 31 of each second year there22 after, the Inspector General of the Department of the 

23 Treasury shall submit to the Committee on Finance of the 

24 Senate and the Committee on Ways and Means of the 

25 House of Representatives a report assessing, with respect 


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1 to the period covered by the report, as specified in sub2 section (b), the following: 

3 (1) The effectiveness of the measures taken by 

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

5 protection of revenue, including— 

6 (A) the collection of countervailing duties 

7 assessed under subtitle A of title VII of the 

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

9 and antidumping duties assessed under subtitle 

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

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

12 (B) the assessment, collection, and mitiga13 tion of commercial fines and penalties; 

14 (C) the use of bonds, including continuous 

15 and single transaction bonds, to secure that 

16 revenue; and 

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

18 Customs and Border Protection with respect to 

19 the monitoring and tracking of merchandise 

20 transported in bond and collecting duties, as 

21 appropriate. 

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

23 Customs and Border Protection to measure account24 ability and performance with respect to protection of 

25 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 

6 U.S. 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 Secu16 rity and the Secretary of the Treasury shall jointly submit 

17 to the Committee on Finance of the Senate and the Com18 mittee on Ways and Means of the House of Representa19 tives a report on efforts undertaken by U.S. Customs and 

20 Border Protection to ensure the secure transportation of 

21 merchandise in bond through the United States and the 

22 collection of revenue owed upon the entry of such mer23 chandise into the United States for consumption. 


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

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

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

6 States; 

7 (2) the ports at which merchandise arrives in 

8 the United States for transportation in bond and at 

9 which records of the arrival of such merchandise are 

10 generated; 

11 (3) the average time taken to reconcile such 

12 records with the records at the final destination of 

13 the merchandise in the United States to demonstrate 

14 that the merchandise reaches its final destination or 

15 is re-exported; 

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

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

21 owed with respect to shipments of merchandise 

22 transported in bond and the total amount of such 

23 duties, taxes, and fees paid; 


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1 (6) the total number of notifications by carriers 

2 of merchandise being transported in bond that the 

3 destination of the merchandise has changed; and 

4 (7) the number of entries that remain 

5 unreconciled. 

6 SEC. 114. IMPORTER OF RECORD PROGRAM. 

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

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

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

11 of record numbers. 

12 (b) REQUIREMENTS.—The Secretary shall ensure 

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

15 (1) develops criteria that importers must meet 

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

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

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1 filiations between importers that are requesting 

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

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

7 and corporate structure of importers; 

8 (2) provides a process by which importers are 

9 assigned importer of record numbers; 

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

15 (4) evaluates and maintains the accuracy of the 

16 database if such information changes; and 

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

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

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

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


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

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

3 a filing identification number described in section 24.5 of 

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

7 and maintenance of information. 

8 SEC. 115. ESTABLISHMENT OF NEW IMPORTER PROGRAM. 

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

10 180 days after the date of the enactment of this Act, the 

11 Commissioner shall establish a new importer program that 

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

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

14 assessed by U.S. Customs and Border Protection for pro15 tection of revenue of the Federal Government. 

16 (b) REQUIREMENTS.—The Commissioner shall en17 sure that, as part of the new importer program established 

18 under subsection (a), U.S. Customs and Border Protec19 tion— 

20 (1) develops risk-based criteria for determining 

21 which importers are considered to be new importers 

22 for the purposes of this subsection; 

23 (2) develops risk assessment guidelines for new 

24 importers to determine if and to what extent— 


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1 (A) to adjust bond amounts of imported 

2 products of new importers; and 

3 (B) to increase screening of imported prod4 ucts of new importers; 

5 (3) develops procedures to ensure increased 

6 oversight of imported products of new importers re7 lating to the enforcement of the priority trade issues 

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

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

10 348; 19 U.S.C. 2072(d)), as added by section 111(a) 

11 of this Act; 

12 (4) develops procedures to ensure increased 

13 oversight of imported products of new importers by 

14 Centers of Excellence and Expertise established 

15 under section 110 of this Act; and 

16 (5) establishes a centralized database of new 

17 importers to ensure accuracy of information that is 

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

19 Customs and Border Protection. 

20 SEC. 116. CUSTOMS BROKER IDENTIFICATION OF IMPORT21 ERS. 

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

23 1930 (19 U.S.C. 1641) is amended by adding at the end 

24 the following: 

25 ‘‘(i) IDENTIFICATION OF IMPORTERS.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall pre2 scribe regulations setting forth the minimum stand3 ards for customs brokers and importers, including 

4 nonresident importers, regarding the identity of the 

5 importer that shall apply in connection with the im6 portation of merchandise into the United States. 

7 ‘‘(2) MINIMUM REQUIREMENTS.—The regula8 tions shall, at a minimum, require customs brokers 

9 to implement, and importers (after being given ade10 quate notice) to comply with, reasonable procedures 

11 for— 

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

13 including nonresident importers, seeking to im14 port merchandise into the United States to the 

15 extent reasonable and practicable; and 

16 ‘‘(B) maintaining records of the informa17 tion used to substantiate a person’s identity, in18 cluding name, address, and other identifying in19 formation. 

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

21 fails to collect information required under the regu22 lations prescribed under this subsection shall be lia23 ble to the United States, at the discretion of the 

24 Secretary, for a monetary penalty not to exceed 

25 $10,000 for each violation of those regulations and 


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1 subject to revocation or suspension of a license or 

2 permit of the customs broker pursuant to the proce3 dures set forth in subsection (d). 

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

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

6 parties qualifying as an importer of record 

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

8 ‘‘(B) the term ‘nonresident importer’ 

9 means an importer who is— 

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

11 of the United States or an alien lawfully 

12 admitted for permanent residence in the 

13 United States; or 

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

15 other commercial entity that is not orga16 nized under the laws of a jurisdiction with17 in the customs territory of the United 

18 States (as such term is defined in General 

19 Note 2 of the Harmonized Tariff Schedule 

20 of the United States) or in the Virgin Is21 lands of the United States.’’. 

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

23 180 days after the date of enactment of this Act, the Com24 missioner shall submit to Congress a report containing 

25 recommendations for— 


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1 (1) determining the most timely and effective 

2 way to require foreign nationals to provide customs 

3 brokers with appropriate and accurate information, 

4 comparable to that which is required of United 

5 States nationals, concerning the identity, address, 

6 and other related information relating to such for7 eign nationals necessary to enable customs brokers 

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

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

10 and 

11 (2) establishing a system for customs brokers to 

12 review information maintained by relevant Federal 

13 agencies for purposes of verifying the identities of 

14 importers, including nonresident importers, seeking 

15 to import merchandise into the United States. 

16 SEC. 117. REQUIREMENTS APPLICABLE TO NON-RESIDENT 

17 IMPORTERS. 

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

19 Act of 1930 (19 U.S.C. 1481 et seq.) is amended by in20 serting after section 484b the following new section: 

21 ‘‘SEC. 484c. REQUIREMENTS APPLICABLE TO NON-RESI22 DENT IMPORTERS. 

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

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

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


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

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

3 United States subject to the requirements described in 

4 subsection (b). 

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

6 in this subsection are the following: 

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

8 accept service of process against the non-resident 

9 importer in connection with the importation of mer10 chandise. 

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

12 Border Protection shall require the non-resident im13 porter to establish a power of attorney with the resi14 dent agent in connection with the importation of 

15 merchandise. 

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

17 section shall not apply with respect to a non-resident im18 porter who is a validated Tier 2 or Tier 3 participant in 

19 the Customs-Trade Partnership Against Terrorism pro20 gram established under subtitle B of title II of the SAFE 

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

22 ‘‘(d) PENALTIES.— 

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

24 person to import into the United States any mer25 chandise in violation of this section. 


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1 ‘‘(2) CIVIL PENALTIES.—Any person who vio2 lates paragraph (1) shall be liable for a civil penalty 

3 of $50,000 for each such violation. 

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

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

6 this section that violates any other customs and 

7 trade laws of the United States shall be subject to 

8 any applicable civil and criminal penalty, including 

9 seizure and forfeiture, that may be imposed under 

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

11 Code, with respect to the importation of merchan12 dise. 

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

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

15 the meaning given such term in section 2 of the 

16 Customs Trade Facilitation and Enforcement Act of 

17 2015.’’. 

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

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

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

21 respect to the importation of merchandise of an importer 

22 of record under section 484 of the Tariff Act of 1930 who 

23 is not resident of the United States on or after the date 

24 that is 180 days after such date of enactment. 


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1 TITLE II—IMPORT HEALTH AND 

2 SAFETY 

3 SEC. 201. INTERAGENCY IMPORT SAFETY WORKING GROUP. 

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

6 (b) MEMBERSHIP.—The interagency Import Safety 

7 Working Group shall consist of the following officials or 

8 their designees: 

9 (1) The Secretary of Homeland Security, who 

10 shall serve as the Chair. 

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

13 (3) The Secretary of the Treasury. 

14 (4) The Secretary of Commerce. 

15 (5) The Secretary of Agriculture. 

16 (6) The United States Trade Representative. 

17 (7) The Director of the Office of Management 

18 and Budget. 

19 (8) The Commissioner of Food and Drugs. 

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

22 (10) The Chairman of the Consumer Product 

23 Safety Commission. 

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

25 Customs Enforcement. 


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

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

6 Safety Working Group shall include— 

7 (1) consulting on the development of the joint 

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

10 (2) periodically evaluating the adequacy of the 

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

15 (A) minimizing the duplication of efforts 

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

18 Group and ensuring the compatibility of the 

19 policies and regulations of those agencies; and 

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

22 the safety of merchandise imported into the 

23 United States and the expeditious entry of such 

24 merchandise and considering the impact of 

25 those actions on private sector entities; 


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1 (3) reviewing the engagement and cooperation 

2 of foreign governments and foreign manufacturers in 

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

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

7 and the expeditious entry of the merchandise into 

8 the United States; 

9 (4) identifying best practices, in consultation 

10 with private sector entities as appropriate, to assist 

11 United States importers in taking all appropriate 

12 steps to ensure the safety of merchandise imported 

13 into the United States, including with respect to— 

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

16 (B) the inspection of merchandise destined 

17 for the United States before exportation from a 

18 foreign country or before distribution in the 

19 United States; and 

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

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

24 (5) identifying best practices to assist Federal, 

25 State, and local governments and agencies, and port 


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

4 into the United States and the expeditious entry of 

5 such merchandise; and 

6 (6) otherwise identifying appropriate steps to 

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

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

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

14 2016, the Secretary of Homeland Security, in consultation 

15 with the interagency Import Safety Working Group, shall 

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

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

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

19 use— 

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

22 cargo destined for or merchandise entering the 

23 United States has been identified as posing a threat 

24 to the health or safety of consumers in the United 

25 States; and 


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1 (2) in recovering from or mitigating the effects 

2 of actions and responses to an incident described in 

3 paragraph (1). 

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

6 (1) the statutory and regulatory authorities and 

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

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

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

11 U.S. Customs and Border Protection when taking 

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

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

15 and Border Protection and other Federal agencies in 

16 recovering from or mitigating the effects of actions 

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

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

21 Protection may conduct in conjunction with Federal, 

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

23 to simulate responses to such an incident. 

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

25 Security shall review and update the joint import safety 


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

3 (d) IMPORT HEALTH AND SAFETY EXERCISES.— 

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

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

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

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

11 United States ports of entry. 

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

14 and the Commissioner shall— 

15 (A) make allowance for the resources, 

16 needs, and constraints of United States ports of 

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

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

21 States at representative United States ports of 

22 entry located across the United States; 

23 (C) ensure that such exercises are con24 ducted in a manner consistent with the Na25 tional Incident Management System, the NaVerDate Sep 11 2014 00:33 Apr 22, 2015 Jkt 049200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\H1907.IH H1907

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

4 System Security Plan, and other such national 

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

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

9 United States after an incident described in 

10 subsection (a)(1). 

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

13 ensure that the testing and evaluation carried out in 

14 conducting exercises under paragraph (1)— 

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

17 (B) result in the identification of specific 

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

20 (a)(1). 

21 (4) DISSEMINATION OF RECOMMENDATIONS

22 AND BEST PRACTICES.—The Secretary and the 

23 Commissioner shall— 

24 (A) share the recommendations or best 

25 practices identified under paragraph (3)(B) 


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1 among the members of the interagency Import 

2 Safety Working Group and with, as appro3 priate— 

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

6 (ii) foreign governments; and 

7 (iii) private sector entities; and 

8 (B) use such recommendations and best 

9 practices to update the joint import safety rapid 

10 response plan. 

11 SEC. 203. TRAINING. 

12 The Commissioner shall ensure that personnel of 

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

14 States ports of entry are trained to effectively administer 

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

17 States and the expeditious entry of such merchandise. 

18 TITLE III—IMPORT-RELATED 

19 PROTECTION OF INTELLEC20 TUAL PROPERTY RIGHTS 

21 SEC. 301. DEFINITION OF INTELLECTUAL PROPERTY 

22 RIGHTS. 

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

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


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

2 Enforcement. 

3 SEC. 302. EXCHANGE OF INFORMATION RELATED TO 

4 TRADE ENFORCEMENT. 

5 (a) IN GENERAL.—The Tariff Act of 1930 is amend6 ed by inserting after section 628 (19 U.S.C. 1628) the 

7 following new section: 

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

9 TRADE ENFORCEMENT. 

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

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

12 Border Protection suspects that merchandise is being im13 ported into the United States in violation of section 526 

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

15 title 17, United States Code, and determines that the ex16 amination or testing of the merchandise by a person de17 scribed in subsection (b) would assist the Commissioner 

18 in determining if the merchandise is being imported in vio19 lation of that section, the Commissioner, to permit the 

20 person to conduct the examination and testing— 

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

22 that appears on the merchandise and its packaging 

23 and labels, including unredacted images of the mer24 chandise and its packaging and labels; and 


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

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

5 this subsection is— 

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

7 being imported in violation of section 526, the owner 

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

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

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

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

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

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

17 effectively controls access to a work protected under 

18 that title, and being imported in violation of section 

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

20 the work; and 

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

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

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


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1 a work, and being imported in violation of section 

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

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

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

6 Border Protection. 

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

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

11 compromise an ongoing law enforcement investigation or 

12 national security.’’. 

13 (b) TERMINATION OF PREVIOUS AUTHORITY.—Not14 withstanding paragraph (2) of section 818(g) of the Na15 tional Defense Authorization Act for Fiscal Year 2012 

16 (Public Law 112–81; 125 Stat. 1496; 10 U.S.C. 2302 

17 note), paragraph (1) of that section shall have no force 

18 or effect on or after the date of the enactment of this Act. 

19 SEC. 303. SEIZURE OF CIRCUMVENTION DEVICES. 

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

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

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

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

24 and inserting ‘‘; or’’; and 

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


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

2 determines it is a technology, product, service, 

3 device, component, or part thereof the importa4 tion of which is prohibited under subsection 

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

6 United States Code.’’. 

7 (b) NOTIFICATION OF PERSONS INJURED.— 

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

9 is 30 business days after seizing merchandise pursu10 ant to subparagraph (G) of section 596(c)(2) of the 

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

12 Commissioner shall provide to any person identified 

13 under paragraph (2) information regarding the mer14 chandise seized that is equivalent to information 

15 provided to copyright owners under regulations of 

16 U.S. Customs and Border Protection for merchan17 dise seized for violation of the copyright laws. 

18 (2) PERSONS TO BE PROVIDED INFORMA19 TION.—Any person injured by the violation of (a)(2) 

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

21 Code, that resulted in the seizure of the merchandise 

22 shall be provided information under paragraph (1), 

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

24 Commissioner that is revised annually through publi25 cation in the Federal Register. 


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

2 after the date of the enactment of this Act, the Sec3 retary of the Treasury shall prescribe regulations es4 tablishing procedures that implement this sub5 section. 

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

7 PROTECTION OF WORKS FOR WHICH COPY8 RIGHT REGISTRATION IS PENDING. 

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

10 date of the enactment of this Act, the Secretary of Home11 land Security shall authorize a process pursuant to which 

12 the Commissioner shall enforce a copyright for which the 

13 owner has submitted an application for registration under 

14 title 17, United States Code, with the United States Copy15 right Office, to the same extent and in the same manner 

16 as if the copyright were registered with the Copyright Of17 fice, including by sharing information, images, and sam18 ples of merchandise suspected of infringing the copyright 

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

20 by section 302. 

21 SEC. 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS 

22 COORDINATION CENTER. 

23 (a) ESTABLISHMENT.—The Secretary of Homeland 

24 Security shall— 


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1 (1) establish within U.S. Immigration and Cus2 toms Enforcement a National Intellectual Property 

3 Rights Coordination Center; and 

4 (2) appoint an Assistant Director to head the 

5 National Intellectual Property Rights Coordination 

6 Center. 

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

8 Intellectual Property Rights Coordination Center shall— 

9 (1) coordinate the investigation of sources of 

10 merchandise that infringe intellectual property rights 

11 to identify organizations and individuals that 

12 produce, smuggle, or distribute such merchandise; 

13 (2) conduct and coordinate training with other 

14 domestic and international law enforcement agencies 

15 on investigative best practices— 

16 (A) to develop and expand the capability of 

17 such agencies to enforce intellectual property 

18 rights; and 

19 (B) to develop metrics to assess whether 

20 the training improved enforcement of intellec21 tual property rights; 

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

23 Protection, activities conducted by the United States 

24 to prevent the importation or exportation of mer25 chandise that infringes intellectual property rights; 


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1 (4) support the international interdiction of 

2 merchandise destined for the United States that in3 fringes intellectual property rights; 

4 (5) collect and integrate information regarding 

5 infringement of intellectual property rights from do6 mestic and international law enforcement agencies 

7 and other non-Federal sources; 

8 (6) develop a means to receive and organize in9 formation regarding infringement of intellectual 

10 property rights from such agencies and other 

11 sources; 

12 (7) disseminate information regarding infringe13 ment of intellectual property rights to other Federal 

14 agencies, as appropriate; 

15 (8) develop and implement risk-based alert sys16 tems, in coordination with U.S. Customs and Border 

17 Protection, to improve the targeting of persons that 

18 repeatedly infringe intellectual property rights; 

19 (9) coordinate with the offices of United States 

20 attorneys in order to develop expertise in, and assist 

21 with the investigation and prosecution of, crimes re22 lating to the infringement of intellectual property 

23 rights; and 

24 (10) carry out such other duties as the Sec25 retary of Homeland Security may assign. 


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1 (c) COORDINATION WITH OTHER AGENCIES.—In 

2 carrying out the duties described in subsection (b), the As3 sistant Director of the National Intellectual Property 

4 Rights Coordination Center shall coordinate with— 

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

6 (2) the Food and Drug Administration; 

7 (3) the Department of Justice; 

8 (4) the Department of Commerce, including the 

9 United States Patent and Trademark Office; 

10 (5) the United States Postal Inspection Service; 

11 (6) the Office of the United States Trade Rep12 resentative; 

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

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

15 Immigration and Customs Enforcement considers 

16 appropriate; and 

17 (8) any other entities that the Director con18 siders appropriate. 

19 (d) PRIVATE SECTOR OUTREACH.— 

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

21 the National Intellectual Property Rights Coordina22 tion Center shall work with U.S. Customs and Bor23 der Protection and other Federal agencies to con24 duct outreach to private sector entities in order to 


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1 determine trends in and methods of infringing intel2 lectual property rights. 

3 (2) INFORMATION SHARING.—The Assistant Di4 rector shall share information and best practices 

5 with respect to the enforcement of intellectual prop6 erty rights with private sector entities, as appro7 priate, in order to coordinate public and private sec8 tor efforts to combat the infringement of intellectual 

9 property rights. 

10 SEC. 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT 

11 OF INTELLECTUAL PROPERTY RIGHTS. 

12 The Commissioner and the Director of U.S. Immigra13 tion and Customs Enforcement shall include in the joint 

14 strategic plan required by section 105 of this Act— 

15 (1) a description of the efforts of the Depart16 ment of Homeland Security to enforce intellectual 

17 property rights; 

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

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

20 seized the most merchandise, both by volume and by 

21 value, that infringes intellectual property rights dur22 ing the most recent 2-year period for which data are 

23 available; and 

24 (3) a recommendation for the optimal allocation 

25 of personnel, resources, and technology to ensure 


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

2 Immigration and Customs Enforcement are ade3 quately enforcing intellectual property rights. 

4 SEC. 307. PERSONNEL DEDICATED TO THE ENFORCEMENT 

5 OF INTELLECTUAL PROPERTY RIGHTS. 

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

7 PROTECTION.—The Commissioner and the Director of 

8 U.S. Immigration and Customs Enforcement shall ensure 

9 that sufficient personnel are assigned throughout U.S. 

10 Customs and Border Protection and U.S. Immigration 

11 and Customs Enforcement, respectively, who have respon12 sibility for preventing the importation into the United 

13 States of merchandise that infringes intellectual property 

14 rights. 

15 (b) STAFFING OF NATIONAL INTELLECTUAL PROP16 ERTY RIGHTS COORDINATION CENTER.—The Commis17 sioner shall— 

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

19 of U.S. Customs and Border Protection to the Na20 tional Intellectual Property Rights Coordination 

21 Center established under section 305 of this Act; 

22 and 

23 (2) ensure that sufficient personnel are as24 signed to United States ports of entry to carry out 

25 the directives of the Center. 


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1 SEC. 308. TRAINING WITH RESPECT TO THE ENFORCEMENT 

2 OF INTELLECTUAL PROPERTY RIGHTS. 

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

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

5 trained to effectively detect and identify merchandise des6 tined for the United States that infringes intellectual 

7 property rights, including through the use of technologies 

8 identified under subsection (c). 

9 (b) CONSULTATION WITH PRIVATE SECTOR.—The 

10 Commissioner shall consult with private sector entities to 

11 better identify opportunities for collaboration between 

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

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

14 Border Protection in enforcing intellectual property rights. 

15 (c) IDENTIFICATION OF NEW TECHNOLOGIES.—In 

16 consultation with private sector entities, the Commissioner 

17 shall identify— 

18 (1) technologies with the cost-effective capa19 bility to detect and identify merchandise at United 

20 States ports of entry that infringes intellectual prop21 erty rights; and 

22 (2) cost-effective programs for training officers 

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

24 technologies. 

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

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


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1 of this Act, the Commissioner shall prescribe regulations 

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

3 donations of hardware, software, equipment, and similar 

4 technologies, and to accept training and other support 

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

6 enforcing intellectual property rights. 

7 SEC. 309. INTERNATIONAL COOPERATION AND INFORMA8 TION SHARING. 

9 (a) COOPERATION.—The Secretary of Homeland Se10 curity shall coordinate with the competent law enforce11 ment and customs authorities of foreign countries, includ12 ing by sharing information relevant to enforcement ac13 tions, to enhance the efforts of the United States and such 

14 authorities to enforce intellectual property rights. 

15 (b) TECHNICAL ASSISTANCE.—The Secretary of 

16 Homeland Security shall provide technical assistance to 

17 competent law enforcement and customs authorities of for18 eign countries to enhance the ability of such authorities 

19 to enforce intellectual property rights. 

20 (c) INTERAGENCY COLLABORATION.—The Commis21 sioner and the Director of U.S. Immigration and Customs 

22 Enforcement shall lead interagency efforts to collaborate 

23 with law enforcement and customs authorities of foreign 

24 countries to enforce intellectual property rights. 


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1 SEC. 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS 

2 ENFORCEMENT. 

3 Not later than June 30, 2016, and annually there4 after, the Commissioner and the Director of U.S. Immi5 gration and Customs Enforcement shall jointly submit to 

6 the Committee on Finance of the Senate and the Com7 mittee on Ways and Means of the House of Representa8 tives a report that contains the following: 

9 (1) With respect to the enforcement of intellec10 tual property rights, the following: 

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

12 Customs and Border Protection to U.S. Immi13 gration and Customs Enforcement relating to 

14 infringement of intellectual property rights dur15 ing the preceding year. 

16 (B) The number of investigations relating 

17 to the infringement of intellectual property 

18 rights referred by U.S. Immigration and Cus19 toms Enforcement to a United States attorney 

20 for prosecution and the United States attorneys 

21 to which those investigations were referred. 

22 (C) The number of such investigations ac23 cepted by each such United States attorney and 

24 the status or outcome of each such investiga25 tion. 


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1 (D) The number of such investigations 

2 that resulted in the imposition of civil or crimi3 nal penalties. 

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

5 Custom and Border Protection and U.S. Immi6 gration and Customs Enforcement to improve 

7 the success rates of investigations and prosecu8 tions relating to the infringement of intellectual 

9 property rights. 

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

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

12 and Border Protection to respond to a request from 

13 port personnel for advice with respect to whether 

14 merchandise detained by U.S. Customs and Border 

15 Protection infringed intellectual property rights, dis16 tinguished by types of intellectual property rights in17 fringed. 

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

19 Customs and Border Protection and U.S. Immigra20 tion and Customs Enforcement with respect to— 

21 (A) the interdiction and investigation of, 

22 and the sharing of information between those 

23 agencies and other Federal agencies to prevent 

24 the infringement of intellectual property rights; 


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1 (B) collaboration with private sector enti2 ties— 

3 (i) to identify trends in the infringe4 ment of, and technologies that infringe, in5 tellectual property rights; 

6 (ii) to identify opportunities for en7 hanced training of officers of U.S. Cus8 toms and Border Protection and U.S. Im9 migration and Customs Enforcement; and 

10 (iii) to develop best practices to en11 force intellectual property rights; and 

12 (C) coordination with foreign governments 

13 and international organizations with respect to 

14 the enforcement of intellectual property rights. 

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

16 and Border Protection and U.S. Immigration and 

17 Customs Enforcement to address the challenges with 

18 respect to the enforcement of intellectual property 

19 rights presented by Internet commerce and the tran20 sit of small packages and an identification of the 

21 volume, value, and type of merchandise seized for in22 fringing intellectual property rights as a result of 

23 such efforts. 

24 (5) A summary of training relating to the en25 forcement of intellectual property rights conducted 


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1 under section 308 of this Act and expenditures for 

2 such training. 

3 SEC. 311. INFORMATION FOR TRAVELERS REGARDING VIO4 LATIONS OF INTELLECTUAL PROPERTY 

5 RIGHTS. 

6 (a) IN GENERAL.—The Secretary of Homeland Secu7 rity shall develop and carry out an educational campaign 

8 to inform travelers entering or leaving the United States 

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

10 implications of acquiring merchandise that infringes intel11 lectual property rights outside the United States and im12 porting such merchandise into the United States in viola13 tion of United States law. 

14 (b) DECLARATION FORMS.—The Commissioner shall 

15 ensure that all versions of Declaration Form 6059B of 

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

17 including any electronic equivalent of Declaration Form 

18 6059B or a successor form, printed or displayed on or 

19 after the date that is 30 days after the date of the enact20 ment of this Act include a written warning to inform trav21 elers arriving in the United States that importation of 

22 merchandise into the United States that infringes intellec23 tual property rights may subject travelers to civil or crimi24 nal penalties and may pose serious risks to safety or 

25 health. 


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1 TITLE IV—PREVENTION OF EVA2 SION OF ANTIDUMPING AND 

3 COUNTERVAILING DUTY OR4 DERS 

5 SEC. 401. SHORT TITLE. 

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

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

8 Act’’. 

9 SEC. 402. DEFINITIONS. 

10 In this title: 

11 (1) APPROPRIATE CONGRESSIONAL COMMIT12 TEES.—The term ‘‘appropriate congressional com13 mittees’’ means— 

14 (A) the Committee on Finance and the 

15 Committee on Appropriations of the Senate; 

16 and 

17 (B) the Committee on Ways and Means 

18 and the Committee on Appropriations of the 

19 House of Representatives. 

20 (2) COVERED MERCHANDISE.—The term ‘‘cov21 ered merchandise’’ means merchandise that is sub22 ject to— 

23 (A) a countervailing duty order issued 

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


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1 (B) an antidumping duty order issued 

2 under section 736 of the Tariff Act of 1930. 

3 (3) ELIGIBLE SMALL BUSINESS.— 

4 (A) IN GENERAL.—The term ‘‘eligible 

5 small business’’ means any business concern 

6 which, in the Commissioner’s judgment, due to 

7 its small size, has neither adequate internal re8 sources nor financial ability to obtain qualified 

9 outside assistance in preparing and submitting 

10 for consideration allegations of evasion. 

11 (B) NON-REVIEWABILITY.—Any agency 

12 decision regarding whether a business concern 

13 is an eligible small business for purposes of sec14 tion 411(b)(4)(E) is not reviewable by any 

15 other agency or by any court. 

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

17 ‘‘entry’’ refer to the entry, or withdrawal from ware18 house for consumption, in the customs territory of 

19 the United States. 

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

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

22 the customs territory of the United States by means 

23 of any document or electronically transmitted data 

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

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1 rial, and that results in any cash deposit or other se2 curity or any amount of applicable antidumping or 

3 countervailing duties being reduced or not being ap4 plied with respect to the merchandise. 

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

6 the Secretary of the Treasury. 

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

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

9 1930. 

10 SEC. 403. APPLICATION TO CANADA AND MEXICO. 

11 Pursuant to article 1902 of the North American Free 

12 Trade Agreement and section 408 of the North American 

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

14 3438), this title and the amendments made by this title 

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

16 Subtitle A—Actions Relating to En17 forcement of Trade Remedy 

18 Laws 

19 SEC. 411. TRADE REMEDY LAW ENFORCEMENT DIVISION. 

20 (a) ESTABLISHMENT.— 

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

22 Security shall establish and maintain within the Of23 fice of International Trade of U.S. Customs and 

24 Border Protection, established under section 2(d) of 

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


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1 348; 19 U.S.C. 2072(d)), a Trade Remedy Law En2 forcement Division. 

3 (2) COMPOSITION.—The Trade Law Remedy 

4 Enforcement Division shall be composed of— 

5 (A) headquarters personnel led by a Direc6 tor, who shall report to the Assistant Commis7 sioner of the Office of International Trade; and 

8 (B) a National Targeting and Analysis 

9 Group dedicated to preventing and countering 

10 evasion. 

11 (3) DUTIES.—The Trade Remedy Law Enforce12 ment Division shall be dedicated— 

13 (A) to the development and administration 

14 of policies to prevent and counter evasion; 

15 (B) to direct enforcement and compliance 

16 assessment activities concerning evasion; 

17 (C) to the development and conduct of 

18 commercial risk assessment targeting with re19 spect to cargo destined for the United States in 

20 accordance with subsection (c); 

21 (D) to issuing Trade Alerts described in 

22 subsection (d); and 

23 (E) to the development of policies for the 

24 application of single entry and continuous 

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1 ficiently protect the collection of antidumping 

2 and countervailing duties commensurate with 

3 the level of risk of noncollection. 

4 (b) DUTIES OF DIRECTOR.—The duties of the Direc5 tor of the Trade Remedy Law Enforcement Division shall 

6 include— 

7 (1) directing the trade enforcement and compli8 ance assessment activities of U.S. Customs and Bor9 der Protection that concern evasion; 

10 (2) facilitating, promoting, and coordinating co11 operation and the exchange of information between 

12 U.S. Customs and Border Protection, U.S. Immigra13 tion and Customs Enforcement, and other relevant 

14 agencies regarding evasion; 

15 (3) notifying on a timely basis the admin16 istering authority (as defined in section 771(1) of 

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

18 Commission (as defined in section 771(2) of the 

19 Tariff Act of 1930 (19 U.S.C. 1677(2))) of any 

20 finding, determination, civil action, or criminal ac21 tion taken by U.S. Customs and Border Protection 

22 or other Federal agency regarding evasion; 

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

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1 garding United States Government activities con2 cerning evasion, including— 

3 (A) receive and transmit to the appropriate 

4 U.S. Customs and Border Protection office alle5 gations from parties of evasion; 

6 (B) upon request by the party or parties 

7 that submitted an allegation of evasion, provide 

8 information to such party or parties on the sta9 tus of U.S. Customs and Border Protection’s 

10 consideration of the allegation and decision to 

11 pursue or not pursue any administrative inquir12 ies or other actions, such as changes in policies, 

13 procedures, or resource allocation as a result of 

14 the allegation; 

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

16 parties that submitted an allegation of evasion 

17 any additional information that may be relevant 

18 for U.S. Customs and Border Protection deter19 mining whether to initiate an administrative in20 quiry or take any other action regarding the al21 legation; 

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

23 parties that submitted such an allegation of the 

24 results of any administrative, civil or criminal 

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1 tection or other Federal agency regarding eva2 sion as a direct or indirect result of the allega3 tion; 

4 (E) upon request, provide technical assist5 ance and advice to eligible small businesses to 

6 enable such businesses to prepare and submit 

7 allegations of evasion, except that the Director 

8 may deny assistance if the Director concludes 

9 that the allegation, if submitted, would not lead 

10 to the initiation of an administrative inquiry or 

11 any other action to address the allegation; 

12 (F) in cooperation with the public, the 

13 Commercial Customs Operations Advisory Com14 mittee, the Trade Support Network, and any 

15 other relevant parties and organizations, de16 velop guidelines on the types and nature of in17 formation that may be provided in allegations 

18 of evasion; and 

19 (G) regularly consult with the public, the 

20 Commercial Customs Operations Advisory Com21 mittee, the Trade Support Network, and any 

22 other relevant parties and organizations regard23 ing the development and implementation of reg24 ulations, interpretations, and policies related to 

25 countering evasion. 


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1 (c) PREVENTING AND COUNTERING EVASION OF THE

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

3 respect to preventing and countering evasion, the National 

4 Targeting and Analysis Group dedicated to preventing and 

5 countering evasion shall— 

6 (1) establish targeted risk assessment meth7 odologies and standards— 

8 (A) for evaluating the risk that cargo des9 tined for the United States may constitute 

10 evading covered merchandise; and 

11 (B) for issuing, as appropriate, Trade 

12 Alerts described in subsection (d); and 

13 (2) to the extent practicable and otherwise au14 thorized by law, use information available from the 

15 Automated Commercial System, the Automated 

16 Commercial Environment computer system, the 

17 Automated Targeting System, the Automated Ex18 port System, the International Trade Data System, 

19 and the TECS, and any similar and successor sys20 tems, to administer the methodologies and standards 

21 established under paragraph (1). 

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

23 the targeted risk assessment methodologies and standards 

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

25 Remedy Law Enforcement Division shall issue Trade 


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1 Alerts or other such means of notification to directors of 

2 United States ports of entry directing further inspection, 

3 physical examination, or testing of merchandise to ensure 

4 compliance with the trade remedy laws and to require ad5 ditional bonds, cash deposits, or other security to ensure 

6 collection of any duties, taxes and fees owed. 

7 SEC. 412. COLLECTION OF INFORMATION ON EVASION OF 

8 TRADE REMEDY LAWS. 

9 (a) AUTHORITY TO COLLECT INFORMATION.—To de10 termine whether covered merchandise is being entered into 

11 the customs territory of the United States through eva12 sion, the Secretary, acting through the Commissioner— 

13 (1) shall exercise all existing authorities to col14 lect information needed to make the determination; 

15 and 

16 (2) may collect such additional information as 

17 is necessary to make the determination through such 

18 methods as the Commissioner considers appropriate, 

19 including by issuing questionnaires with respect to 

20 the entry or entries at issue to— 

21 (A) a person who filed an allegation with 

22 respect to the covered merchandise; 

23 (B) a person who is alleged to have en24 tered the covered merchandise into the customs 


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1 territory of the United States through evasion; 

2 or 

3 (C) any other person who is determined to 

4 have information relevant to the allegation of 

5 entry of covered merchandise into the customs 

6 territory of the United States through evasion. 

7 (b) ADVERSE INFERENCE.— 

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

9 person who filed an allegation, a person alleged to 

10 have entered covered merchandise into the customs 

11 territory of the United States through evasion, or a 

12 foreign producer or exporter of covered merchandise 

13 that is alleged to have entered into the customs ter14 ritory of the United States through evasion, has 

15 failed to cooperate by not acting to the best of the 

16 person’s ability to comply with a request for infor17 mation, the Secretary may, in making a determina18 tion whether an entry or entries of covered merchan19 dise may constitute merchandise that is entered into 

20 the customs territory of the United States through 

21 evasion, use an inference that is adverse to the inter22 ests of that person in selecting from among the facts 

23 otherwise available to determine whether evasion has 

24 occurred. 


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1 (2) ADVERSE INFERENCE DESCRIBED.—An ad2 verse inference used under paragraph (1) may in3 clude reliance on information derived from— 

4 (A) the allegation of evasion of the trade 

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

6 and Border Protection; 

7 (B) a determination by the Commissioner 

8 in another investigation, proceeding, or other 

9 action regarding evasion of the unfair trade 

10 laws; or 

11 (C) any other available information. 

12 SEC. 413. ACCESS TO INFORMATION. 

13 (a) IN GENERAL.—Section 777(b)(1)(A)(ii) of the 

14 Trade Act of 1930 (19 U.S.C. 1677f(b)(1)(A)(ii)) is 

15 amended by inserting ‘‘negligence, gross negligence, or’’ 

16 after ‘‘regarding’’. 

17 (b) ADDITIONAL INFORMATION.—Notwithstanding 

18 any other provision of law, the Secretary is authorized to 

19 provide to the Secretary of Commerce or the United States 

20 International Trade Commission any information that is 

21 necessary to enable the Secretary of Commerce or the 

22 United States International Trade Commission to assist 

23 the Secretary to identify, through risk assessment tar24 geting or otherwise, covered merchandise that is entered 


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1 into the customs territory of the United States through 

2 evasion. 

3 SEC. 414. COOPERATION WITH FOREIGN COUNTRIES ON 

4 PREVENTING EVASION OF TRADE REMEDY 

5 LAWS. 

6 (a) BILATERAL AGREEMENTS.— 

7 (1) IN GENERAL.—The Secretary shall seek to 

8 negotiate and enter into bilateral agreements with 

9 the customs authorities or other appropriate authori10 ties of foreign countries for purposes of cooperation 

11 on preventing evasion of the trade remedy laws of 

12 the United States and the trade remedy laws of the 

13 other country. 

14 (2) PROVISIONS AND AUTHORITIES.—The Sec15 retary shall seek to include in each such bilateral 

16 agreement the following provisions and authorities: 

17 (A) On the request of the importing coun18 try, the exporting country shall provide, con19 sistent with its laws, regulations, and proce20 dures, production, trade, and transit documents 

21 and other information necessary to determine 

22 whether an entry or entries exported from the 

23 exporting country are subject to the importing 

24 country’s trade remedy laws. 


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1 (B) On the written request of the import2 ing country, the exporting country shall conduct 

3 a verification for purposes of enabling the im4 porting country to make a determination de5 scribed in subparagraph (A). 

6 (C) The exporting country may allow the 

7 importing country to participate in a 

8 verification described in subparagraph (B), in9 cluding through a site visit. 

10 (D) If the exporting country does not allow 

11 participation of the importing country in a 

12 verification described in subparagraph (B), the 

13 importing country may take this fact into con14 sideration in its trade enforcement and compli15 ance assessment activities regarding the compli16 ance of the exporting country’s exports with the 

17 importing country’s trade remedy laws. 

18 (b) CONSIDERATION.—The Commissioner is author19 ized to take into consideration whether a country is a sig20 natory to a bilateral agreement described in subsection (a) 

21 and the extent to which the country is cooperating under 

22 the bilateral agreement for purposes of trade enforcement 

23 and compliance assessment activities of U.S. Customs and 

24 Border Protection that concern evasion by such country’s 

25 exports. 


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

2 year beginning after the date of the enactment of this Act, 

3 the Secretary shall submit to the appropriate congres4 sional committees a report summarizing— 

5 (1) the status of any ongoing negotiations of bi6 lateral agreements described in subsection (a), in7 cluding the identities of the countries involved in 

8 such negotiations; 

9 (2) the terms of any completed bilateral agree10 ments described in subsection (a); and 

11 (3) bilateral cooperation and other activities 

12 conducted pursuant to or enabled by any completed 

13 bilateral agreements described in subsection (a). 

14 SEC. 415. TRADE NEGOTIATING OBJECTIVES. 

15 The principal negotiating objectives of the United 

16 States shall include obtaining the objectives of the bilat17 eral agreements described under section 414(a) for any 

18 trade agreements under negotiation as of the date of the 

19 enactment of this Act or future trade agreement negotia20 tions. 


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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 

7 1930 (19 U.S.C. 1671 et seq.) is amended by inserting 

8 after section 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 ‘Commis17 sioner’ means the Commissioner responsible for U.S. 

18 Customs 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 pro16 vided in clause (ii), the term ‘evasion’ does 

17 not include entering covered merchandise 

18 into the customs territory of the United 

19 States 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 mer4 chandise into the customs territory of the 

5 United States by means of a clerical error 

6 referred to in subclause (I) or (II) of 

7 clause (i) and that the clerical error is part 

8 of a pattern of negligent conduct on the 

9 part of that person, the Commissioner may 

10 determine, notwithstanding clause (i), that 

11 the person has entered such covered mer12 chandise into the customs territory of the 

13 United States through evasion. 

14 ‘‘(iii) ELECTRONIC REPETITION OF

15 ERRORS.—For purposes of clause (ii), the 

16 mere nonintentional repetition by an elec17 tronic system of an initial clerical error 

18 does not constitute a pattern of negligent 

19 conduct. 

20 ‘‘(iv) RULE OF CONSTRUCTION.—A 

21 determination by the Commissioner that a 

22 person has entered covered merchandise 

23 into the customs territory of the United 

24 States by means of a clerical error referred 

25 to in subclause (I) or (II) of clause (i) 


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1 rather than through evasion shall not be 

2 construed to excuse that person from the 

3 payment of any duties applicable to the 

4 merchandise. 

5 ‘‘(b) PREVENTION BY ADMINISTERING AUTHOR6 ITY.— 

7 ‘‘(1) PROCEDURES FOR INITIATING INVESTIGA8 TIONS.— 

9 ‘‘(A) INITIATION BY ADMINISTERING AU10 THORITY.—An investigation under this sub11 section shall be initiated with respect to mer12 chandise imported into the United States when13 ever the administering authority determines, 

14 from information available to the administering 

15 authority, that an investigation is warranted 

16 with respect to whether the merchandise is cov17 ered merchandise. 

18 ‘‘(B) INITIATION BY PETITION OR REFER19 RAL.— 

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

21 authority shall determine whether to ini22 tiate an investigation under this subpara23 graph not later than 30 days after the date 

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1 ceives a petition described in clause (ii) or 

2 a referral described in clause (iii). 

3 ‘‘(ii) PETITION DESCRIBED.—A peti4 tion described in this clause is a petition 

5 that— 

6 ‘‘(I) is filed with the admin7 istering authority by an interested 

8 party specified in subparagraph (A), 

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

10 771(9); 

11 ‘‘(II) alleges that merchandise 

12 imported into the United States is 

13 covered merchandise; and 

14 ‘‘(III) is accompanied by infor15 mation reasonably available to the pe16 titioner supporting those allegations. 

17 ‘‘(iii) REFERRAL DESCRIBED.—A re18 ferral described in this clause is a referral 

19 made by the Commissioner pursuant to 

20 subsection (c)(1). 

21 ‘‘(2) TIME LIMITS FOR DETERMINATIONS.— 

22 ‘‘(A) PRELIMINARY DETERMINATION.— 

23 ‘‘(i) IN GENERAL.—Not later than 90 

24 days after the administering authority ini25 tiates an investigation under paragraph (1) 


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1 with respect to merchandise, the admin2 istering authority shall issue a preliminary 

3 determination, based on information avail4 able to the administering authority at the 

5 time of the determination, with respect to 

6 whether there is a reasonable basis to be7 lieve or suspect that the merchandise is 

8 covered merchandise. 

9 ‘‘(ii) EXPEDITED PROCEDURES.—If 

10 the administering authority determines 

11 that expedited action is warranted with re12 spect to an investigation initiated under 

13 paragraph (1), the administering authority 

14 may publish the notice of initiation of the 

15 investigation and the notice of the prelimi16 nary determination in the Federal Register 

17 at the same time. 

18 ‘‘(B) FINAL DETERMINATION BY THE AD19 MINISTERING AUTHORITY.—The administering 

20 authority shall issue a final determination with 

21 respect to whether merchandise is covered mer22 chandise not later than 300 days after the date 

23 on which the administering authority initiates 

24 an investigation under paragraph (1) with re25 spect to the merchandise. 


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1 ‘‘(3) ACCESS TO INFORMATION.— 

2 ‘‘(A) ENTRY DOCUMENTS, RECORDS, AND

3 OTHER INFORMATION.—Upon receiving a re4 quest from the administering authority, and not 

5 later than 10 days after receiving the admin6 istering authority’s request, the Commissioner 

7 shall transmit to the administering authority 

8 copies of the documentation and information re9 quired by section 484(a)(1) with respect to the 

10 entry of the merchandise, as well as any other 

11 documentation or information requested by the 

12 administering authority. 

13 ‘‘(B) ACCESS OF INTERESTED PARTIES.— 

14 Not later than 10 business days after the date 

15 on which the administering authority initiates 

16 an investigation under paragraph (1) with re17 spect to merchandise, the administering author18 ity shall provide to the authorized representa19 tive of each interested party that filed a petition 

20 under paragraph (1) or otherwise participates 

21 in a proceeding, pursuant to a protective order, 

22 the copies of the entry documentation and any 

23 other information received by the administering 

24 authority under subparagraph (A). 


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1 ‘‘(C) BUSINESS PROPRIETARY INFORMA2 TION FROM PRIOR SEGMENTS.—Where an au3 thorized representative to an interested party 

4 participating in an investigation under para5 graph (1) has access to business proprietary in6 formation released pursuant to administrative 

7 protective order in a proceeding under 19 

8 U.S.C. 1671 et seq., 1673 et seq., or 1675 et 

9 seq. that is relevant to the investigation con10 ducted under paragraph (1), that authorized 

11 representative may submit such information to 

12 the administering authority for its consideration 

13 in the context of the investigation conducted 

14 under paragraph (1). 

15 ‘‘(4) AUTHORITY TO COLLECT AND VERIFY AD16 DITIONAL INFORMATION.—In making a determina17 tion under paragraph (2) with respect to covered 

18 merchandise, the administering authority may collect 

19 such additional information as is necessary to make 

20 the determination through such methods as the ad21 ministering authority considers appropriate, includ22 ing by— 

23 ‘‘(A) issuing a questionnaire with respect 

24 to such covered merchandise to— 


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1 ‘‘(i) a person that filed an allegation 

2 under paragraph (1)(B)(ii) that resulted in 

3 the initiation of an investigation under 

4 paragraph (1)(A) with respect to such cov5 ered merchandise; 

6 ‘‘(ii) a person alleged to have entered 

7 such covered merchandise into the customs 

8 territory of the United States through eva9 sion; 

10 ‘‘(iii) a person that is a foreign pro11 ducer or exporter of such covered merchan12 dise; or 

13 ‘‘(iv) the government of a country 

14 from which such covered merchandise was 

15 exported; and 

16 ‘‘(B) conducting verifications, including on17 site verifications, of any relevant information; 

18 and 

19 ‘‘(C) requesting— 

20 ‘‘(i) that the Commissioner provide 

21 any information and data available to U.S. 

22 Customs and Border Protection, and 

23 ‘‘(ii) that the Commissioner gather 

24 additional necessary information from the 


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1 importer of covered merchandise and other 

2 relevant parties. 

3 ‘‘(5) ADVERSE INFERENCE.—If the admin4 istering authority finds that a person described in 

5 clause (i), (ii), or (iii) of paragraph (4)(A) has failed 

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

7 ability to comply with a request for information, the 

8 administering authority may, in making a deter9 mination under paragraph (2), use an inference that 

10 is adverse to the interests of that person in selecting 

11 from among the facts otherwise available to make 

12 the determination. 

13 ‘‘(6) EFFECT OF AFFIRMATIVE PRELIMINARY

14 DETERMINATION.—If the administering authority 

15 makes a preliminary determination under paragraph 

16 (2)(A) that merchandise is covered merchandise, the 

17 administering authority shall instruct U.S. Customs 

18 and Border Protection— 

19 ‘‘(A) to suspend liquidation of each entry 

20 of the merchandise that— 

21 ‘‘(i) enters on or after the date of the 

22 preliminary determination; or 

23 ‘‘(ii) enters before that date, if the liq24 uidation of the entry is not final on that 

25 date; and 


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1 ‘‘(B) to require the posting of a cash de2 posit for each entry of the merchandise in an 

3 amount determined pursuant to the order or 

4 finding described in subsection (a)(2)(A)(i), or 

5 administrative review conducted under section 

6 751, that applies to the merchandise. 

7 ‘‘(7) EFFECT OF AFFIRMATIVE FINAL DETER8 MINATION.— 

9 ‘‘(A) IN GENERAL.—If the administering 

10 authority makes a final determination under 

11 paragraph (2)(B) that merchandise is covered 

12 merchandise, the administering authority shall 

13 instruct U.S. Customs and Border Protection— 

14 ‘‘(i) to assess duties on the merchan15 dise in an amount determined pursuant to 

16 the order or finding described in subsection 

17 (a)(2)(A)(i), or administrative review con18 ducted under section 751, that applies to 

19 the merchandise; 

20 ‘‘(ii) notwithstanding section 501, to 

21 reliquidate, in accordance with such order, 

22 finding, or administrative review, each 

23 entry of the merchandise that was liq24 uidated and is determined to include cov25 ered merchandise; and 


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1 ‘‘(iii) to review and reassess the 

2 amount of bond or other security the im3 porter is required to post for such mer4 chandise entered on or after the date of 

5 the final determination to ensure the pro6 tection of revenue and compliance with the 

7 law. 

8 ‘‘(B) ADDITIONAL AUTHORITY.—If the ad9 ministering authority makes a final determina10 tion under paragraph (2)(B) that merchandise 

11 is covered merchandise, the administering au12 thority may instruct U.S. Customs and Border 

13 Protection to require the importer of the mer14 chandise to post a cash deposit or bond on such 

15 merchandise entered on or after the date of the 

16 final determination in an amount the admin17 istering authority determines in the final deter18 mination to be owed with respect to the mer19 chandise. 

20 ‘‘(8) EFFECT OF NEGATIVE FINAL DETERMINA21 TION.—If the administering authority makes a final 

22 determination under paragraph (2)(B) that mer23 chandise is not covered merchandise, the admin24 istering authority shall terminate the suspension of 

25 liquidation and refund any cash deposit imposed 


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1 pursuant to paragraph (6) with respect to the mer2 chandise. 

3 ‘‘(9) NOTIFICATION.—Not later than 5 business 

4 days after making a determination under paragraph 

5 (2) with respect to covered merchandise, the admin6 istering authority may provide to importers, in such 

7 manner as the administering authority determines 

8 appropriate, information discovered in the investiga9 tion that the administering authority determines will 

10 help educate importers with respect to importing 

11 merchandise into the customs territory of the United 

12 States in accordance with all applicable laws and 

13 regulations. 

14 ‘‘(10) SPECIAL RULE FOR CASES IN WHICH THE

15 PRODUCER OR EXPORTER IS UNKNOWN.—If the ad16 ministering authority is unable to determine the ac17 tual producer or exporter of the merchandise with 

18 respect to which the administering authority initi19 ated an investigation under paragraph (1), the ad20 ministering authority shall, in requiring the posting 

21 of a cash deposit under paragraph (6) or assessing 

22 duties pursuant to paragraph (7)(A), impose the 

23 cash deposit or duties (as the case may be) in the 

24 highest amount applicable to any producer or ex25 porter of the merchandise pursuant to any order or 


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1 finding described in subsection (a)(2)(A)(i), or any 

2 administrative review conducted under section 751. 

3 ‘‘(11) PUBLICATION OF DETERMINATIONS.— 

4 The administering authority shall publish each no5 tice of initiation of investigation made under para6 graph (1)(A), each preliminary determination made 

7 under paragraph (2)(A) and each final determina8 tion made under paragraph (2)(B) in the Federal 

9 Register. 

10 ‘‘(12) REFERRALS TO OTHER AGENCIES.— 

11 ‘‘(A) AFTER PRELIMINARY DETERMINA12 TION.—Notwithstanding section 777 and sub13 ject to subparagraph (C), when the admin14 istering authority makes an affirmative prelimi15 nary determination under paragraph (2)(A), the 

16 administering authority shall— 

17 ‘‘(i) transmit the administrative 

18 record to the Commissioner for such addi19 tional action as the Commissioner deter20 mines appropriate, including proceedings 

21 under section 592; and 

22 ‘‘(ii) at the request of the head of an23 other agency, transmit the administrative 

24 record to the head of that agency. 


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1 ‘‘(B) AFTER FINAL DETERMINATION.— 

2 Notwithstanding section 777 and subject to 

3 subparagraph (C), when the administering au4 thority makes an affirmative final determina5 tion under paragraph (2)(B), the administering 

6 authority shall— 

7 ‘‘(i) transmit the complete administra8 tive record to the Commissioner; and 

9 ‘‘(ii) at the request of the head of an10 other agency, transmit the complete ad11 ministrative record to the head of that 

12 agency. 

13 ‘‘(c) PREVENTION BY U.S. CUSTOMS AND BORDER

14 PROTECTION.— 

15 ‘‘(1) REFERRALS.—In the event the Commis16 sioner receives information that a person is entered 

17 covered merchandise into the customs territory of 

18 the United States through evasion, but is not able 

19 to determine whether the merchandise is in fact cov20 ered merchandise, the Commissioner shall— 

21 ‘‘(A) refer the matter to the administering 

22 authority for additional proceedings under sub23 section (b); and 

24 ‘‘(B) transmit to the administering author25 ity— 


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1 ‘‘(i) copies of the entry documents and 

2 information required by section 484(a)(1) 

3 relating to the merchandise; and 

4 ‘‘(ii) any additional records or infor5 mation that the Commissioner considers 

6 appropriate. 

7 ‘‘(d) COOPERATION BETWEEN U.S. CUSTOMS AND

8 BORDER PROTECTION AND THE DEPARTMENT OF COM9 MERCE.— 

10 ‘‘(1) NOTIFICATION OF INVESTIGATIONS.— 

11 Upon receiving a petition and upon initiating an in12 vestigation under subsection (b), the administering 

13 authority shall notify the Commissioner. 

14 ‘‘(2) PROCEDURES FOR COOPERATION.—Not 

15 later than 180 days after the date of the enactment 

16 of this Act, the Commissioner and the administering 

17 authority shall establish procedures to ensure max18 imum cooperation and communication between U.S. 

19 Customs and Border Protection and the admin20 istering authority in order to quickly, efficiently, and 

21 accurately investigate allegations of evasion of anti22 dumping and countervailing duty orders. 

23 ‘‘(e) ANNUAL REPORT ON PREVENTING EVASION OF

24 ANTIDUMPING AND COUNTERVAILING DUTY ORDERS.— 


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1 ‘‘(1) IN GENERAL.—Not later than February 

2 28 of each year beginning in 2016, the Under Sec3 retary for International Trade of the Department of 

4 Commerce shall submit to the Committee on Fi5 nance and the Committee on Appropriations of the 

6 Senate and the Committee on Ways and Means and 

7 the Committee on Appropriations of the House of 

8 Representatives a report on the efforts being taken 

9 under subsection (b) to prevent evasion of anti10 dumping and countervailing duty orders. 

11 ‘‘(2) CONTENTS.—Each report required by 

12 paragraph (1) shall include, for the year preceding 

13 the submission of the report— 

14 ‘‘(A)(i) the number of investigations initi15 ated pursuant to subsection (b); and 

16 ‘‘(ii) a description of such investigations, 

17 including— 

18 ‘‘(I) the results of such investigations; 

19 and 

20 ‘‘(II) the amount of antidumping and 

21 countervailing duties collected as a result 

22 of such investigations; and 

23 ‘‘(B) the number of referrals made by the 

24 Commissioner pursuant to subsection (c).’’. 


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1 (b) TECHNICAL AMENDMENT.—The table of contents 

2 for title VII of the Tariff Act of 1930 is amended by in3 serting after the item relating to section 781 the following: 

‘‘Sec. 781A. Procedures for prevention of evasion of antidumping and countervailing duty orders.’’. 

4 (c) JUDICIAL REVIEW.—Section 516A(a)(2) of the 

5 Tariff Act of 1930 (19 U.S.C. 1516a(a)(2)) is amended— 

6 (1) in subparagraph (A)(i)(I), by striking ‘‘or 

7 (viii)’’ and inserting ‘‘(viii), or (ix)’’; and 

8 (2) in subparagraph (B), by inserting at the 

9 end the following: 

10 ‘‘(ix) A determination by the admin11 istering authority under section 781A.’’. 

12 (d) REGULATIONS.—Not later than 180 days after 

13 the date of the enactment of this Act— 

14 (1) the Secretary of Commerce shall prescribe 

15 such regulations as may be necessary to carry out 

16 subsection (b) of section 781A of the Tariff Act of 

17 1930 (as added by subsection (a) of this section); 

18 and 

19 (2) the Commissioner responsible for U.S. Cus20 toms and Border Protection shall prescribe such reg21 ulations as may be necessary to carry out subsection 

22 (c) of such section 781A. 

23 (e) EFFECTIVE DATE.—The amendments made by 

24 this section shall— 


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1 (1) take effect on the date that is 180 days 

2 after the date of the enactment of this Act; and 

3 (2) apply with respect to merchandise entered 

4 on or after such date of enactment. 

5 SEC. 422. GOVERNMENT ACCOUNTABILITY OFFICE RE6 PORT. 

7 Not later than 2 years after the date of the enact8 ment of this Act, the Comptroller General of the United 

9 States shall submit to the Committee on Finance and the 

10 Committee on Appropriations of the Senate and the Com11 mittee on Ways and Means and the Committee on Appro12 priations of the House of Representatives a report assess13 ing the effectiveness of— 

14 (1) the provisions of, and amendments made 

15 by, this Act; and 

16 (2) the actions taken and procedures developed 

17 by the Secretary of Commerce and the Commis18 sioner pursuant to such provisions and amendments 

19 to prevent evasion of antidumping and counter20 vailing duty orders under title VII of the Tariff Act 

21 of 1930 (19 U.S.C. 1671 et seq.). 

22 Subtitle C—Other Matters 

23 SEC. 431. ALLOCATION AND TRAINING OF PERSONNEL. 

24 The Commissioner shall, to the maximum extent pos25 sible, ensure that U.S. Customs and Border Protection— 


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1 (1) employs sufficient personnel who have ex2 pertise in, and responsibility for, preventing and in3 vestigating the entry of covered merchandise into the 

4 customs territory of the United States through eva5 sion; 

6 (2) on the basis of risk assessment metrics, as7 signs sufficient personnel with primary responsibility 

8 for preventing the entry of covered merchandise into 

9 the customs territory of the United States through 

10 evasion to the ports of entry in the United States at 

11 which the Commissioner determines potential eva12 sion presents the most substantial threats to the rev13 enue of the United States; and 

14 (3) provides adequate training to relevant per15 sonnel to increase expertise and effectiveness in the 

16 prevention and identification of entries of covered 

17 merchandise into the customs territory of the United 

18 States through evasion. 

19 SEC. 432. ANNUAL REPORT ON PREVENTION OF EVASION 

20 OF ANTIDUMPING AND COUNTERVAILING 

21 DUTY ORDERS. 

22 (a) IN GENERAL.—Not later than February 28 of 

23 each year, beginning in 2014, the Commissioner, in con24 sultation with the Secretary of Commerce and the Director 

25 for U.S. Immigration and Customs Enforcement, shall 


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1 submit to the appropriate congressional committees a re2 port on the efforts being taken to prevent and investigate 

3 evasion. 

4 (b) CONTENTS.—Each report required under sub5 section (a) shall include— 

6 (1) for the calendar year preceding the submis7 sion of the report— 

8 (A) a summary of the efforts of U.S. Cus9 toms and Border Protection to prevent and 

10 identify evasion; 

11 (B) the number of allegations of evasion 

12 received and the number of allegations of eva13 sion resulting in any administrative, civil, or 

14 criminal actions by U.S. Customs and Border 

15 Protection or any other agency; 

16 (C) a summary of the completed adminis17 trative inquiries of evasion, including the num18 ber and nature of the inquiries initiated, con19 ducted, or completed, as well as their resolu20 tion; 

21 (D) with respect to inquiries that lead to 

22 lead to issuance of a penalty notice, the penalty 

23 amounts; 

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1 tions by U.S. Customs and Border Protection 

2 or any other agency; 

3 (F) a description of the allocation of per4 sonnel and other resources of U.S. Customs and 

5 Border Protection and U.S. Immigration and 

6 Customs Enforcement to prevent, identify and 

7 investigate evasion, including any assessments 

8 conducted regarding the allocation of such per9 sonnel and resources; and 

10 (G) a description of training conducted to 

11 increase expertise and effectiveness in the pre12 vention, identification and investigation of eva13 sion; and 

14 (2) a description of U.S. Customs and Border 

15 Protection processes and procedures to prevent and 

16 identify evasion, including— 

17 (A) the specific guidelines, policies, and 

18 practices used by U.S. Customs and Border 

19 Protection to ensure that allegations of evasion 

20 are promptly evaluated and acted upon in a 

21 timely manner; 

22 (B) an evaluation of the efficacy of such 

23 existing guidelines, policies, and practices; 

24 (C) identification of any changes since the 

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1 duced the effectiveness of U.S. Customs and 

2 Border Protection to prevent and identify eva3 sion; 

4 (D) a description of the development and 

5 implementation of policies for the application of 

6 single entry and continuous bonds for entries of 

7 covered merchandise to sufficiently protect the 

8 collection of antidumping and countervailing 

9 duties commensurate with the level of risk on 

10 noncollection; 

11 (E) the processes and procedures for in12 creased cooperation and information sharing 

13 with the Department of Commerce, U.S. Immi14 gration and Customs Enforcement, and any 

15 other relevant Federal agencies to prevent and 

16 identify evasion; and 

17 (F) identification of any recommended pol18 icy changes of other Federal agencies or legisla19 tive changes to improve the effectiveness of 

20 U.S. Customs and Border Protection to prevent 

21 and identify evasion. 

22 SEC. 433. ADDRESSING CIRCUMVENTION BY NEW SHIP23 PERS. 

24 Section 751(a)(2)(B) of the Tariff Act of 1930 (19 

25 U.S.C. 1675(a)(2)(B)) is amended— 


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1 (1) by striking clause (iii); 

2 (2) by redesignating clause (iv) as clause (iii); 

3 and 

4 (3) inserting after clause (iii), as redesignated 

5 by paragraph (2) of this section, the following: 

6 ‘‘(iv) Any weighted average dumping 

7 margin or individual countervailing duty 

8 rate determined for an exporter or pro9 ducer in a review conducted under clause 

10 (i) shall be based solely on the bona fide 

11 United States sales of an exporter or pro12 ducer, as the case may be, made during 

13 the period covered by the review. In deter14 mining whether the United States sales of 

15 an exporter or producer made during the 

16 period covered by the review were bona 

17 fide, the administering authority shall con18 sider, depending on the circumstances sur19 rounding such sales— 

20 ‘‘(I) the prices of such sales; 

21 ‘‘(II) whether such sales were 

22 made in commercial quantities; 

23 ‘‘(III) the timing of such sales; 

24 ‘‘(IV) the expenses arising from 

25 such sales; 


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1 ‘‘(V) whether the subject mer2 chandise involved in such sales were 

3 resold in the United States at a prof4 it; 

5 ‘‘(VI) whether such sales were 

6 made on an arms-length basis; and 

7 ‘‘(VII) any other factor the ad8 ministering authority determines to be 

9 relevant as to whether such sales are, 

10 or are not, likely to be typical of those 

11 the exporter or producer will make 

12 after completion of the review.’’. 

13 TITLE V—ADDITIONAL 

14 ENFORCEMENT PROVISIONS 

15 SEC. 501. TRADE ENFORCEMENT PRIORITIES. 

16 (a) IN GENERAL.—Section 310 of the Trade Act of 

17 1974 (19 U.S.C. 2420) is amended to read as follows: 

18 ‘‘SEC. 310. TRADE ENFORCEMENT PRIORITIES. 

19 ‘‘(a) TRADE ENFORCEMENT PRIORITIES, CONSULTA20 TIONS, AND REPORT.— 

21 ‘‘(1) TRADE ENFORCEMENT PRIORITIES CON22 SULTATIONS.—Not later than May 31 of each cal23 endar year that begins after the date of the enact24 ment of the Trade Facilitation and Trade Enforce25 ment Act of 2015, the United States Trade RepVerDate Sep 11 2014 00:33 Apr 22, 2015 Jkt 049200 PO 00000 Frm 00126 Fmt 6652 Sfmt 6201 E:\BILLS\H1907.IH H1907

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1 resentative (in this section referred to as the ‘Trade 

2 Representative’) shall consult with the Committee on 

3 Finance of the Senate and the Committee on Ways 

4 and Means of the House of Representatives with re5 spect to the prioritization of acts, policies, or prac6 tices of foreign governments that raise concerns with 

7 respect to obligations under the WTO Agreements or 

8 any other trade agreement to which the United 

9 States is a party, or otherwise create or maintain 

10 barriers to United States goods, services, or invest11 ment. 

12 ‘‘(2) IDENTIFICATION OF TRADE ENFORCE13 MENT PRIORITIES.—In identifying acts, policies, or 

14 practices of foreign governments as trade enforce15 ment priorities under this subsection, the United 

16 States Trade Representative shall focus on those 

17 acts, policies, and practices the elimination of which 

18 is likely to have the most significant potential to in19 crease United States economic growth, and take into 

20 account all relevant factors, including— 

21 ‘‘(A) the economic significance of any po22 tential inconsistency between an obligation as23 sumed by a foreign government pursuant to a 

24 trade agreement to which both the foreign gov25 ernment and the United States are parties and 


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1 the acts, policies, or practices of that govern2 ment; 

3 ‘‘(B) the impact of the acts, policies, or 

4 practices of a foreign government on maintain5 ing and creating United States jobs and pro6 ductive capacity; 

7 ‘‘(C) the major barriers and trade dis8 torting practices described in the most recent 

9 National Trade Estimate required under section 

10 181(b); 

11 ‘‘(D) the major barriers and trade dis12 torting practices described in other relevant re13 ports addressing international trade and invest14 ment barriers prepared by a Federal agency or 

15 congressional commission during the 12 months 

16 preceding the date of the most recent report 

17 under paragraph (3); 

18 ‘‘(E) a foreign government’s compliance 

19 with its obligations under any trade agreements 

20 to which both the foreign government and the 

21 United States are parties; 

22 ‘‘(F) the implications of a foreign govern23 ment’s procurement plans and policies; and 


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1 ‘‘(G) the international competitive position 

2 and export potential of United States products 

3 and services. 

4 ‘‘(3) REPORT ON TRADE ENFORCEMENT PRIOR5 ITIES AND ACTIONS TAKEN TO ADDRESS.— 

6 ‘‘(A) IN GENERAL.—Not later than July 

7 31 of each calendar year that begins after the 

8 date of the enactment of the Trade Facilitation 

9 and Trade Enforcement Act of 2015, the Trade 

10 Representative shall report to the Committee on 

11 Finance of the Senate and the Committee on 

12 Ways and Means of the House of Representa13 tives on acts, policies, or practices of foreign 

14 governments identified as trade enforcement 

15 priorities based on the consultations under 

16 paragraph (1) and the criteria set forth in 

17 paragraph (2). 

18 ‘‘(B) REPORT IN SUBSEQUENT YEARS.— 

19 The Trade Representative shall include, when 

20 reporting under subparagraph (A) in any cal21 endar year after the calendar year that begins 

22 after the date of the enactment of the Trade 

23 Facilitation and Trade Enforcement Act of 

24 2015, a description of actions taken to address 

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1 ernments identified as trade enforcement prior2 ities under this subsection in the calendar year 

3 preceding that report and, as relevant, any year 

4 before that calendar year. 

5 ‘‘(b) SEMI-ANNUAL ENFORCEMENT CONSULTA6 TIONS.— 

7 ‘‘(1) IN GENERAL.—At the same time as the re8 porting under subsection (a)(3), and not later than 

9 January 31 of each following year, the Trade Rep10 resentative shall consult with the Committee on Fi11 nance of the Senate and the Committee on Ways 

12 and Means of the House of Representatives with re13 spect to the identification, prioritization, investiga14 tion, and resolution of acts, policies, or practices of 

15 foreign governments of concern with respect to obli16 gations under the WTO Agreements or any other 

17 trade agreement to which the United States is a 

18 party, or that otherwise create or maintain trade 

19 barriers. 

20 ‘‘(2) ACTS, POLICIES, OR PRACTICES OF CON21 CERN.—The semi-annual enforcement consultations 

22 required by paragraph (1) shall address acts, poli23 cies, or practices of foreign governments that raise 

24 concerns with respect to obligations under the WTO 

25 Agreements or any other trade agreement to which 


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1 the United States is a party, or otherwise create or 

2 maintain trade barriers, including— 

3 ‘‘(A) engagement with relevant trading 

4 partners; 

5 ‘‘(B) strategies for addressing such con6 cerns; 

7 ‘‘(C) availability and deployment of re8 sources to be used in the investigation or reso9 lution of such concerns; 

10 ‘‘(D) the merits of any potential dispute 

11 resolution proceeding under the WTO Agree12 ments or any other trade agreement to which 

13 the United States is a party relating to such 

14 concerns; and 

15 ‘‘(E) any other aspects of such concerns. 

16 ‘‘(3) ACTIVE INVESTIGATIONS.—The semi-an17 nual enforcement consultations required by para18 graph (1) shall address acts, policies, or practices 

19 that the Trade Representative is actively inves20 tigating with respect to obligations under the WTO 

21 Agreements or any other trade agreement to which 

22 the United States is a party, including— 

23 ‘‘(A) strategies for addressing concerns 

24 raised by such acts, policies, or practices; 


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1 ‘‘(B) any relevant timeline with respect to 

2 investigation of such acts, policies, or practices; 

3 ‘‘(C) the merits of any potential dispute 

4 resolution proceeding under the WTO Agree5 ments or any other trade agreement to which 

6 the United States is a party with respect to 

7 such acts, policies, or practices; 

8 ‘‘(D) barriers to the advancement of the 

9 investigation of such acts, policies, or practices; 

10 and 

11 ‘‘(E) any other matters relating to the in12 vestigation of such acts, policies, or practices. 

13 ‘‘(4) ONGOING ENFORCEMENT ACTIONS.—The 

14 semi-annual enforcement consultations required by 

15 paragraph (1) shall address all ongoing enforcement 

16 actions taken by or against the United States with 

17 respect to obligations under the WTO Agreements or 

18 any other trade agreement to which the United 

19 States is a party, including— 

20 ‘‘(A) any relevant timeline with respect to 

21 such actions; 

22 ‘‘(B) the merits of such actions; 

23 ‘‘(C) any prospective implementation ac24 tions; 


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1 ‘‘(D) potential implications for any law or 

2 regulation of the United States; 

3 ‘‘(E) potential implications for United 

4 States stakeholders, domestic competitors, and 

5 exporters; and 

6 ‘‘(F) other issues relating to such actions. 

7 ‘‘(5) ENFORCEMENT RESOURCES.—The semi8 annual enforcement consultations required by para9 graph (1) shall address the availability and deploy10 ment of enforcement resources, resource constraints 

11 on monitoring and enforcement activities, and strat12 egies to address those constraints, including the use 

13 of available resources of other Federal agencies to 

14 enhance monitoring and enforcement capabilities. 

15 ‘‘(c) INVESTIGATION AND RESOLUTION.—In the case 

16 of any acts, policies, or practices of a foreign government 

17 identified as a trade enforcement priority under subsection 

18 (a), the Trade Representative shall, not later than the date 

19 of the first semi-annual enforcement consultations held 

20 under subsection (b) after the identification of the pri21 ority, take appropriate action to address that priority, in22 cluding— 

23 ‘‘(1) engagement with the foreign government 

24 to resolve concerns raised by such acts, policies, or 

25 practices; 


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1 ‘‘(2) initiation of an investigation under section 

2 302(b)(1) with respect to such acts, policies, or 

3 practices; 

4 ‘‘(3) initiation of negotiations for a bilateral 

5 agreement that provides for resolution of concerns 

6 raised by such acts, policies, or practices; or 

7 ‘‘(4) initiation of dispute settlement proceedings 

8 under the WTO Agreements or any other trade 

9 agreement to which the United States is a party 

10 with respect to such acts, policies, or practices. 

11 ‘‘(d) ENFORCEMENT NOTIFICATIONS AND CON12 SULTATION.— 

13 ‘‘(1) INITIATION OF ENFORCEMENT ACTION.— 

14 The Trade Representative shall notify and consult 

15 with the Committee on Finance of the Senate and 

16 the Committee on Ways and Means of the House of 

17 Representatives in advance of initiation of any for18 mal trade dispute by or against the United States 

19 taken in regard to an obligation under the WTO 

20 Agreements or any other trade agreement to which 

21 the United States is a party. With respect to a for22 mal trade dispute against the United States, if ad23 vance notification and consultation are not possible, 

24 the Trade Representative shall notify and consult at 


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1 the earliest practicable opportunity after initiation of 

2 the dispute. 

3 ‘‘(2) CIRCULATION OF REPORTS.—The Trade 

4 Representative shall notify and consult with the 

5 Committee on Finance of the Senate and the Com6 mittee on Ways and Means of the House of Rep7 resentatives in advance of the announced or antici8 pated circulation of any report of a dispute settle9 ment panel or the Appellate Body of the World 

10 Trade Organization or of a dispute settlement panel 

11 under any other trade agreement to which the 

12 United States is a party with respect to a formal 

13 trade dispute by or against the United States. 

14 ‘‘(e) DEFINITIONS.—In this section: 

15 ‘‘(1) WTO.—The term ‘WTO’ means the World 

16 Trade Organization. 

17 ‘‘(2) WTO AGREEMENT.—The term ‘WTO 

18 Agreement’ has the meaning given that term in sec19 tion 2(9) of the Uruguay Round Agreements Act (19 

20 U.S.C. 3501(9)). 

21 ‘‘(3) WTO AGREEMENTS.—The term ‘WTO 

22 Agreements’ means the WTO Agreement and agree23 ments annexed to that Agreement.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of contents 

2 for the Trade Act of 1974 is amended by striking the item 

3 relating 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 sub10 section (d); and 

11 (2) by inserting after subsection (b) the fol12 lowing: 

13 ‘‘(c) EXERCISE OF WTO AUTHORIZATION TO SUS14 PEND 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 Rep20 resentative a written request for reinstatement of ac21 tion, and 

22 ‘‘(3) the Trade Representatives has completed 

23 the requirements of subsection (d) and section 

24 307(c)(3), 


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1 the Trade Representative may at any time determine to 

2 take action under section 301(c) to exercise an authoriza3 tion to suspend concessions or other obligations under Ar4 ticle 22 of the Understanding on Rules and Procedures 

5 Governing the Settlement of Disputes (referred to in sec6 tion 101(d)(16) of the Uruguay Round Agreements Act 

7 (19 U.S.C. 3511(d)(16))).’’. 

8 (b) CONFORMING AMENDMENTS.—Chapter 1 of title 

9 III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.) 

10 is amended— 

11 (1) in section 301(c)(1) (19 U.S.C. 2411(c)(1)), 

12 in the matter preceding subparagraph (A), by insert13 ing ‘‘or section 306(c)’’ after ‘‘subsection (a) or 

14 (b)’’; 

15 (2) in section 306(b) (19 U.S.C. 2416(b)), in 

16 the subsection heading, by striking ‘‘Further Ac17 tion’’ and inserting ‘‘Action on the Basis of Moni18 toring’’; 

19 (3) in section 306(d) (19 U.S.C. 2416(d)), as 

20 redesignated by subsection (a)(1), by inserting ‘‘or 

21 (c)’’ after ‘‘subsection (b)’’; and 

22 (4) in section 307(c)(3) (19 U.S.C. 2417(c)(3)), 

23 by inserting ‘‘or if a request is submitted to the 

24 Trade Representative under 306(c)(2) to reinstate 

25 action,’’ 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 add4 ing 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 

14 whether such data has changed with respect to such 

15 goods over a period of time. 

16 ‘‘(2) DATA DESCRIBED.—For purposes of the 

17 monitoring tool under paragraph (1), the Commis18 sion shall use data compiled by the Department of 

19 Commerce and such other government data as the 

20 Commission considers appropriate. 

21 ‘‘(3) PERIODS OF TIME.—The Commission shall 

22 ensure that data accessed through the monitoring 

23 tool under paragraph (1) includes data for the most 

24 recent quarter for which such data are available and 

25 previous 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 

4 not less frequently than quarterly thereafter, the 

5 Secretary of Commerce shall publish on a website of 

6 the Department of Commerce, and notify the Com7 mittee on Finance of the Senate and the Committee 

8 on Ways and Means of the House of Representatives 

9 of the availability of, a monitoring report on changes 

10 in the volume and value of trade with respect to im11 ports and exports of goods categorized based on the 

12 6-digit subheading number of the goods under the 

13 Harmonized Tariff Schedule of the United States 

14 during the most recent quarter for which such data 

15 are available and previous quarters as the Secretary 

16 considers practicable. 

17 ‘‘(2) Requests for Comment. Not later than one 

18 year after the date of the enactment of this section, 

19 the Secretary of Commerce shall solicit through the 

20 Federal Register public comment on the monitoring 

21 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 

24 of the enactment of this section.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of contents 

2 for the Trade Act of 1974 (19 U.S.C. 2101 et seq.) is 

3 amended by inserting after the item relating to section 

4 204 the following: 

‘‘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 

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

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

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

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

13 or withdrawn from warehouse for consumption, on or after 

14 the 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 

22 later than 30 days before finalizing, any Department 

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

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

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1 ing ‘‘not later than 60 days before proposing, and 

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

3 SEC. 603. PENALTIES FOR CUSTOMS BROKERS. 

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

5 Act 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 

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

19 Border 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 sub25 paragraph (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, AD5 VANCED OR IMPROVED ABROAD.— 

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

7 II of chapter 98 of the Harmonized Tariff Schedule 

8 of the United States is amended by adding at the 

9 end the following: 

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

11 9802.00.50, fungible articles exported from the United 

12 States for the purposes described in such subheadings— 

13 ‘‘(A) may be commingled; and 

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

15 articles may be accounted for using an inventory 

16 management method. 

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

20 management method for any other articles with respect 

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

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

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

26 are identical or interchangeable in all situations; and 


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

2 means any method for managing inventory that is 

3 based on generally accepted accounting principles.’’. 

4 (2) EFFECTIVE DATE.—The amendment made 

5 by this subsection applies to articles classifiable 

6 under subheading 9802.00.40 or 9802.00.50 of the 

7 Harmonized Tariff Schedule of the United States 

8 that are entered, or withdrawn from warehouse for 

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

10 after the date of the enactment of this Act. 

11 (b) MODIFICATION OF PROVISIONS RELATING TO

12 RETURNED PROPERTY.— 

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

14 heading 9801.00.10 of the Harmonized Tariff 

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

17 products when returned within 3 years after having 

18 been exported’’. 

19 (2) EFFECTIVE DATE.—The amendment made 

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

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


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1 (c) DUTY-FREE TREATMENT FOR CERTAIN UNITED

2 STATES GOVERNMENT PROPERTY RETURNED TO THE

3 UNITED STATES.— 

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

5 of the Harmonized Tariff Schedule of the United 

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

‘‘ 9801.00.11 United States Government 

property, returned to the 

United States without having 

been advanced in value or improved in condition by any 

means while abroad, entered 

by the United States Government or a contractor to the 

United States Government, 

and certified by the importer 

as United States Government 

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

8 (2) EFFECTIVE DATE.—The amendment made 

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

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

13 SEC. 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 amend19 ed— 


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

2 the end; 

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

4 the end; 

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

6 amended) the following new subparagraph: 

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

8 instruments of international traffic previously 

9 exported from the United States,’’; and 

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

13 paragraph: The term ‘residue’ means material of 

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

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

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

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

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

20 form. The term ‘instruments of international traffic’ 

21 means containers or holders, capable of and suitable 

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

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

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


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1 international traffic, and any additional articles or 

2 classes of articles that the Commissioner responsible 

3 for U.S. Customs and Border Protection designates 

4 as instruments of international traffic.’’. 

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

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

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

8 contained in instruments of international traffic that are 

9 imported into the customs territory of the United States 

10 on or after such date of enactment and that previously 

11 have been exported from the United States. 

12 SEC. 606. DRAWBACK AND REFUNDS. 

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

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

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

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

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

19 pursuant to regulations prescribed by the Secretary of the 

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

22 (b) SUBSTITUTION FOR DRAWBACK PURPOSES.— 

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

24 1313(b)) is amended— 


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

2 following: 

3 ‘‘(1) IN GENERAL.—If imported’’; 

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

5 (whether imported or domestic) of the same kind 

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

8 number as such imported merchandise is’’; 

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

10 years’’; 

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

12 merchandise by the manufacturer or producer of 

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

14 of such imported merchandise’’; 

15 (5) by inserting ‘‘or articles classifiable under 

16 the same 8-digit HTS subheading number as such 

17 articles,’’ after ‘‘any such articles,’’; 

18 (6) by striking ‘‘an amount of drawback equal 

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

20 inserting ‘‘an amount calculated pursuant to regula21 tions prescribed by the Secretary of the Treasury 

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

23 not been used prior to such exportation or destruc24 tion.’’; and 

25 (7) by adding at the end the following: 


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1 ‘‘(2) REQUIREMENTS RELATING TO TRANSFER

2 OF MERCHANDISE.— 

3 ‘‘(A) MANUFACTURERS AND PRO4 DUCERS.—Drawback shall be allowed under 

5 paragraph (1) with respect to an article manu6 factured or produced using imported merchan7 dise or other merchandise classifiable under the 

8 same 8-digit HTS subheading number as such 

9 imported merchandise only if the manufacturer 

10 or producer of the article received such im11 ported merchandise or such other merchandise, 

12 directly or indirectly, from the importer. 

13 ‘‘(B) EXPORTERS AND DESTROYERS.— 

14 Drawback shall be allowed under paragraph (1) 

15 with respect to a manufactured or produced ar16 ticle that is exported or destroyed only if the 

17 exporter or destroyer received that article or an 

18 article classifiable under the same 8-digit HTS 

19 subheading number as that article, directly or 

20 indirectly, from the manufacturer or producer. 

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

22 of merchandise under subparagraph (A) and 

23 transfers of articles under subparagraph (B) 

24 may be evidenced by business records kept in 

25 the normal course of business and no additional 


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1 certificates of transfer or manufacture shall be 

2 required. 

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

4 FORMULA.— 

5 ‘‘(A) IN GENERAL.—Drawback shall be al6 lowed under paragraph (1) with respect to an 

7 article manufactured or produced using im8 ported merchandise or other merchandise classi9 fiable under the same 8-digit HTS subheading 

10 number as such imported merchandise only if 

11 the person making the drawback claim submits 

12 with the claim a bill of materials or formula 

13 identifying the merchandise and article by the 

14 8-digit HTS subheading number and the quan15 tity of the merchandise. 

16 ‘‘(B) BILL OF MATERIALS AND FORMULA

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

18 materials’ and ‘formula’ mean records kept in 

19 the normal course of business that identify each 

20 component incorporated into a manufactured or 

21 produced article or that identify the quantity of 

22 each element, material, chemical, mixture, or 

23 other substance incorporated into a manufac24 tured article. 


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1 ‘‘(4) SPECIAL RULE FOR SOUGHT CHEMICAL

2 ELEMENTS.— 

3 ‘‘(A) IN GENERAL.—For purposes of para4 graph (1), a sought chemical element may be— 

5 ‘‘(i) considered imported merchandise, 

6 or merchandise classifiable under the same 

7 8-digit HTS subheading number as such 

8 imported merchandise, used in the manu9 facture or production of an article as de10 scribed in paragraph (1); and 

11 ‘‘(ii) substituted for source material 

12 containing that sought chemical element, 

13 without regard to whether the sought 

14 chemical element and the source material 

15 are classifiable under the same 8-digit 

16 HTS subheading number, and apportioned 

17 quantitatively, as appropriate. 

18 ‘‘(B) SOUGHT CHEMICAL ELEMENT DE19 FINED.—In this paragraph, the term ‘sought 

20 chemical element’ means an element listed in 

21 the Periodic Table of Elements that is imported 

22 into the United States or a chemical compound 

23 consisting of those elements, either separately 

24 in elemental form or contained in source mate25 rial.’’. 


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1 (c) MERCHANDISE NOT CONFORMING TO SAMPLE OR

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

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

4 (1) in paragraph (1)— 

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

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

7 appears; 

8 (B) in subparagraph (D)— 

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

10 and 

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

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

13 Protection’’; and 

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

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

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

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

19 subsection (l)’’; 

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

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

22 Protection’’; and 

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


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

2 merchandise under paragraph (1) may be evidenced 

3 by business records kept in the normal course of 

4 business and no additional certificates of transfer 

5 shall be required.’’. 

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

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

8 as follows: 

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

10 drawback under this section based on the exportation of 

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

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

14 exportation and the identity of the exporter; and 

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

16 records kept in the normal course of business or 

17 through an electronic export system of the United 

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

20 Protection.’’. 

21 (e) UNUSED MERCHANDISE DRAWBACK.—Section 

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

23 amended— 

24 (1) in paragraph (1)— 


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

2 preceding clause (i)— 

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

4 ‘‘5-year’’; and 

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

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

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

10 fee so paid’’ and inserting ‘‘an amount cal11 culated pursuant to regulations prescribed by 

12 the Secretary of the Treasury under subsection 

13 (l)’’; 

14 (2) in paragraph (2)— 

15 (A) in the matter preceding subparagraph 

16 (A), by striking ‘‘paragraph (4)’’ and inserting 

17 ‘‘paragraphs (4), (5), and (6)’’; 

18 (B) in subparagraph (A), by striking 

19 ‘‘commercially interchangeable with’’ and in20 serting ‘‘classifiable under the same 8-digit 

21 HTS subheading number as’’; 

22 (C) in subparagraph (B)— 

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

24 ‘‘5-year’’; and 


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1 (ii) by inserting ‘‘and before the draw2 back claim is filed’’ after ‘‘the imported 

3 merchandise’’; and 

4 (D) in subparagraph (C)(ii), by striking 

5 subclause (II) and inserting the following: 

6 ‘‘(II) received the imported mer7 chandise, other merchandise classifi8 able under the same 8-digit HTS sub9 heading number as such imported 

10 merchandise, or any combination of 

11 such imported merchandise and such 

12 other merchandise, directly or indi13 rectly from the person who imported 

14 and paid any duties, taxes, and fees 

15 imposed under Federal law upon im16 portation or entry and due on the im17 ported merchandise (and any such 

18 transferred merchandise, regardless of 

19 its origin, will be treated as the im20 ported merchandise and any retained 

21 merchandise will be treated as domes22 tic merchandise);’’; 

23 (E) in the flush text at the end— 

24 (i) by striking ‘‘the amount of each 

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1 lows through ‘‘99 percent of that duty, tax, 

2 or fee’’ and inserting ‘‘an amount cal3 culated pursuant to regulations prescribed 

4 by the Secretary of the Treasury under 

5 subsection (l) shall be refunded as draw6 back’’; and 

7 (ii) by striking the last sentence and 

8 inserting the following: ‘‘Notwithstanding 

9 subparagraph (A), drawback shall be al10 lowed under this paragraph with respect to 

11 wine if the imported wine and the exported 

12 wine are of the same color and the price 

13 variation between the imported wine and 

14 the exported wine does not exceed 50 per15 cent. Transfers of merchandise may be evi16 denced by business records kept in the nor17 mal course of business and no additional 

18 certificates of transfer shall be required.’’; 

19 and 

20 (3) in paragraph (3)(B), by striking ‘‘the com21 mercially interchangeable merchandise’’ and insert22 ing ‘‘merchandise classifiable under the same 8-digit 

23 HTS subheading number as such imported merchan24 dise’’; and 

25 (4) by adding at the end the following: 


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1 ‘‘(5)(A) For purposes of paragraph (2) and ex2 cept as provided in subparagraph (B), merchandise 

3 may not be substituted for imported merchandise for 

4 drawback purposes based on the 8-digit HTS sub5 heading number if the article description for the 8- 

6 digit HTS subheading number under which the im7 ported merchandise is classified begins with the term 

8 ‘other’. 

9 ‘‘(B) In cases described in subparagraph (A), 

10 merchandise may be substituted for imported mer11 chandise for drawback purposes if— 

12 ‘‘(i) the other merchandise and such im13 ported merchandise are classifiable under the 

14 same 10-digit HTS statistical reporting num15 ber; and 

16 ‘‘(ii) the article description for that 10- 

17 digit HTS statistical reporting number does not 

18 begin with the term ‘other’. 

19 ‘‘(6)(A) For purposes of paragraph (2), a draw20 back claimant may use the first 8 digits of the 10- 

21 digit Schedule B number for merchandise or an arti22 cle to determine if the merchandise or article is clas23 sifiable under the same 8-digit HTS subheading 

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1 gard to whether the Schedule B number corresponds 

2 to more than one 8-digit HTS subheading number. 

3 ‘‘(B) In this paragraph, the term ‘Schedule B’ 

4 means the Department of Commerce Schedule B, 

5 Statistical Classification of Domestic and Foreign 

6 Commodities Exported from the United States.’’. 

7 (f) LIABILITY FOR DRAWBACK CLAIMS.—Section 

8 313(k) of the Tariff Act of 1930 (19 U.S.C. 1313(k)) is 

9 amended to read as follows: 

10 ‘‘(k) LIABILITY FOR DRAWBACK CLAIMS.— 

11 ‘‘(1) IN GENERAL.—Any person making a claim 

12 for drawback under this section shall be liable for 

13 the full amount of the drawback claimed. 

14 ‘‘(2) LIABILITY OF IMPORTERS.—An importer 

15 shall be liable for any drawback claim made by an16 other person with respect to merchandise imported 

17 by the importer in an amount equal to the lesser 

18 of— 

19 ‘‘(A) the amount of duties, taxes, and fees 

20 that the person claimed with respect to the im21 ported merchandise; or 

22 ‘‘(B) the amount of duties, taxes, and fees 

23 that the importer authorized the other person 

24 to claim with respect to the imported merchan25 dise. 


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1 ‘‘(3) JOINT AND SEVERAL LIABILITY.—Persons 

2 described in paragraphs (1) and (2) shall be jointly 

3 and severally liable for the amount described in 

4 paragraph (2).’’. 

5 (g) REGULATIONS.—Section 313(l) of the Tariff Act 

6 of 1930 (19 U.S.C. 1313(l)) is amended to read as follows: 

7 ‘‘(l) REGULATIONS.— 

8 ‘‘(1) IN GENERAL.—Allowance of the privileges 

9 provided for in this section shall be subject to com10 pliance with such rules and regulations as the Sec11 retary of the Treasury shall prescribe. 

12 ‘‘(2) CALCULATION OF DRAWBACK.— 

13 ‘‘(A) IN GENERAL.—Not later than the 

14 date that is 2 years after the date of the enact15 ment of the Trade Facilitation and Trade En16 forcement Act of 2015 (or, if later, the effective 

17 date provided for in section 406(q)(2)(B) of 

18 that Act), the Secretary shall prescribe regula19 tions for determining the calculation of 

20 amounts refunded as drawback under this sec21 tion. 

22 ‘‘(B) REQUIREMENTS.—The regulations 

23 required by subparagraph (A) for determining 

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1 fund of up to 99 percent of the duties, taxes, 

2 and fees paid with respect to the imported mer3 chandise, except that where there is substi4 tution of the merchandise or article, then— 

5 ‘‘(i) in the case of an article that is 

6 exported, the amount of the refund shall 

7 be equal to 99 percent of the lesser of— 

8 ‘‘(I) the amount of duties, taxes, 

9 and fees paid with respect to the im10 ported merchandise; or 

11 ‘‘(II) the amount of duties, taxes, 

12 and fees that would apply to the ex13 ported article if the exported article 

14 were imported; and 

15 ‘‘(ii) in the case of an article that is 

16 destroyed, the amount of the refund shall 

17 be an amount that is— 

18 ‘‘(I) equal to 99 percent of the 

19 lesser of— 

20 ‘‘(aa) the amount of duties, 

21 taxes, and fees paid with respect 

22 to the imported merchandise; and 

23 ‘‘(bb) the amount of duties, 

24 taxes, and fees that would apply 

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1 stroyed article were imported; 

2 and 

3 ‘‘(II) reduced by the value of ma4 terials recovered during destruction as 

5 provided in subsection (x). 

6 ‘‘(3) STATUS REPORTS ON REGULATIONS.—Not 

7 later than the date that is one year after the date 

8 of the enactment of the Trade Facilitation and 

9 Trade Enforcement Act of 2015, and annually there10 after until the regulations required by paragraph (2) 

11 are final, the Secretary shall submit to Congress a 

12 report on the status of those regulations.’’. 

13 (h) SUBSTITUTION OF FINISHED PETROLEUM DE14 RIVATIVES.—Section 313(p) of the Tariff Act of 1930 (19 

15 U.S.C. 1313(p)) is amended— 

16 (1) by striking ‘‘Harmonized Tariff Schedule of 

17 the United States’’ each place it appears and insert18 ing ‘‘HTS’’; and 

19 (2) in paragraph (3)(A)— 

20 (A) in clause (ii)(III), by striking ‘‘, as so 

21 certified in a certificate of delivery or certificate 

22 of manufacture and delivery’’; and 

23 (B) in the flush text at the end— 


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1 (i) by striking ‘‘, as so designated on 

2 the certificate of delivery or certificate of 

3 manufacture and delivery’’; and 

4 (ii) by striking the last sentence and 

5 inserting the following: ‘‘The party trans6 ferring the merchandise shall maintain 

7 records kept in the normal course of busi8 ness to demonstrate the transfer.’’. 

9 (i) PACKAGING MATERIAL.—Section 313(q) of the 

10 Tariff Act of 1930 (19 U.S.C. 1313(q)) is amended— 

11 (1) in paragraph (1), by striking ‘‘of 99 percent 

12 of any duty, tax, or fee imposed under Federal law 

13 on such imported material’’ and inserting ‘‘in an 

14 amount calculated pursuant to regulations pre15 scribed by the Secretary of the Treasury under sub16 section (l)’’; 

17 (2) in paragraph (2), by striking ‘‘of 99 percent 

18 of any duty, tax, or fee imposed under Federal law 

19 on the imported or substituted merchandise used to 

20 manufacture or produce such material’’ and insert21 ing ‘‘in an amount calculated pursuant to regula22 tions prescribed by the Secretary of the Treasury 

23 under subsection (l)’’; and 

24 (3) in paragraph (3), by striking ‘‘they contain’’ 

25 and inserting ‘‘it contains’’. 


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1 (j) FILING OF DRAWBACK CLAIMS.—Section 313(r) 

2 of the Tariff Act of 1930 (19 U.S.C. 1313(r)) is amend3 ed— 

4 (1) in paragraph (1)— 

5 (A) by striking the first sentence and in6 serting the following: ‘‘A drawback entry shall 

7 be filed or applied for, as applicable, not later 

8 than 5 years after the date on which merchan9 dise on which drawback is claimed was im10 ported.’’; 

11 (B) in the second sentence, by striking ‘‘3- 

12 year’’ and inserting ‘‘5-year’’; and 

13 (C) in the third sentence, by striking ‘‘the 

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

15 and Border Protection’’; 

16 (2) in paragraph (3)— 

17 (A) in subparagraph (A)— 

18 (i) in the matter preceding clause (i), 

19 by striking ‘‘The Customs Service’’ and in20 serting ‘‘U.S. Customs and Border Protec21 tion’’; 

22 (ii) in clauses (i) and (ii), by striking 

23 ‘‘the Customs Service’’ each place it ap24 pears and inserting ‘‘U.S. Customs and 

25 Border Protection’’; and 


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1 (iii) in clause (ii)(I), by striking ‘‘3- 

2 year’’ and inserting ‘‘5-year’’; and 

3 (B) in subparagraph (B), by striking ‘‘the 

4 periods of time for retaining records set forth 

5 in subsection (t) of this section and’’ and in6 serting ‘‘the period of time for retaining records 

7 set forth in’’; and 

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

9 ‘‘(4) All drawback claims filed on and after the 

10 date that is 2 years after the date of the enactment 

11 of the Trade Facilitation and Trade Enforcement 

12 Act of 2015 (or, if later, the effective date provided 

13 for in section 406(q)(2)(B) of that Act) shall be filed 

14 electronically.’’. 

15 (k) DESIGNATION OF MERCHANDISE BY SUC16 CESSOR.—Section 313(s) of the Tariff Act of 1930 (19 

17 U.S.C. 1313(s)) is amended— 

18 (1) in paragraph (2), by striking subparagraph 

19 (B) and inserting the following: 

20 ‘‘(B) subject to paragraphs (5) and (6) of 

21 subsection (j), imported merchandise, other 

22 merchandise classifiable under the same 8-digit 

23 HTS subheading number as such imported 

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1 dise, that the predecessor received, before the 

2 date of succession, from the person who im3 ported and paid any duties, taxes, and fees due 

4 on the imported merchandise;’’; and 

5 (2) in paragraph (4), by striking ‘‘certifies 

6 that’’ and all that follows and inserting ‘‘certifies 

7 that the transferred merchandise was not and will 

8 not be claimed by the predecessor.’’. 

9 (l) DRAWBACK CERTIFICATES.—Section 313 of the 

10 Tariff Act of 1930 (19 U.S.C. 1313) is amended by strik11 ing subsection (t). 

12 (m) DRAWBACK FOR RECOVERED MATERIALS.—Sec13 tion 313(x) of the Tariff Act of 1930 (19 U.S.C. 1313(x)) 

14 is amended by striking ‘‘and (c)’’ and inserting ‘‘(c), and 

15 (j)’’. 

16 (n) DEFINITIONS.—Section 313 of the Tariff Act of 

17 1930 (19 U.S.C. 1313) is amended by adding at the end 

18 the following: 

19 ‘‘(z) DEFINITIONS.—In this section: 

20 ‘‘(1) DIRECTLY.—The term ‘directly’ means a 

21 transfer of merchandise or an article from one per22 son to another person without any intermediate 

23 transfer. 

24 ‘‘(2) HTS.—The term ‘HTS’ means the Har25 monized Tariff Schedule of the United States. 


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1 ‘‘(3) INDIRECTLY.—The term ‘indirectly’ means 

2 a transfer of merchandise or an article from one per3 son to another person with one or more intermediate 

4 transfers.’’. 

5 (o) RECORDKEEPING.—Section 508(c)(3) of the Tar6 iff Act of 1930 (19 U.S.C. 1508(c)(3)) is amended— 

7 (1) by striking ‘‘3rd’’ and inserting ‘‘5th’’; and 

8 (2) by striking ‘‘payment’’ and inserting ‘‘liq9 uidation’’. 

10 (p) GOVERNMENT ACCOUNTABILITY OFFICE RE11 PORT.— 

12 (1) IN GENERAL.—Not later than one year 

13 after the issuance of the regulations required by sub14 section (l)(2) of section 313 of the Tariff Act of 

15 1930, as added by subsection (g), the Comptroller 

16 General of the United States shall submit to the 

17 Committee on Finance of the Senate and the Com18 mittee on Ways and Means of the House of Rep19 resentatives a report on the modernization of draw20 back and refunds under section 313 of the Tariff 

21 Act of 1930, as amended by this section. 

22 (2) CONTENTS.—The report required by para23 graph (1) include the following: 


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1 (A) An assessment of the modernization of 

2 drawback and refunds under section 313 of the 

3 Tariff Act of 1930, as amended by this section. 

4 (B) A description of drawback claims that 

5 were permissible before the effective date pro6 vided for in subsection (q) that are not permis7 sible after that effective date and an identifica8 tion of industries most affected. 

9 (C) A description of drawback claims that 

10 were not permissible before the effective date 

11 provided for in subsection (q) that are permis12 sible after that effective date and an identifica13 tion of industries most affected. 

14 (q) EFFECTIVE DATE.— 

15 (1) IN GENERAL.—The amendments made by 

16 this section shall— 

17 (A) take effect on the date of the enact18 ment of this Act; and 

19 (B) apply to drawback claims filed on or 

20 after the date that is 2 years after such date 

21 of enactment. 

22 (2) REPORTING OF OPERABILITY OF AUTO23 MATED COMMERCIAL ENVIRONMENT COMPUTER SYS24 TEM.—Not later than one year after the date of the 

25 enactment of this Act, and not later than 2 years 


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1 after such date of enactment, the Secretary of the 

2 Treasury shall submit to Congress a report on— 

3 (A) the date on which the Automated Com4 mercial Environment will be ready to process 

5 drawback claims; and 

6 (B) the date on which the Automated Ex7 port System will be ready to accept proof of ex8 portation under subsection (i) of section 313 of 

9 the Tariff Act of 1930, as amended by sub10 section (d). 

11 (3) TRANSITION RULE.—During the one-year 

12 period beginning on the date that is 2 years after 

13 the date of the enactment of this Act (or, if later, 

14 the effective date provided for in paragraph (2)(B)), 

15 a person may elect to file a claim for drawback 

16 under— 

17 (A) section 313 of the Tariff Act of 1930, 

18 as amended by this section; or 

19 (B) section 313 of the Tariff Act of 1930, 

20 as in effect on the day before the date of the 

21 enactment of this Act. 

22 SEC. 607. OFFICE OF THE UNITED STATES TRADE REP23 RESENTATIVE. 

24 (a) ANNUAL REPORT ON TRADE AGREEMENTS PRO25 GRAM AND NATIONAL TRADE POLICY AGENDA.—Section 


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1 163(a) of the Trade Act of 1974 (19 U.S.C. 2213(a)) is 

2 amended— 

3 (1) in paragraph (1)— 

4 (A) in subparagraph (A), by striking 

5 ‘‘and’’ at the end; 

6 (B) in subparagraph (B), by striking the 

7 period at the end and inserting a semicolon; 

8 and 

9 (C) by adding at the end the following: 

10 ‘‘(C) the operation of all United States 

11 Trade Representative-led interagency programs 

12 during the preceding year and for the year in 

13 which the report is submitted.’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(4) The report shall include, with respect to 

16 the matters referred to in paragraph (1)(C), infor17 mation regarding— 

18 ‘‘(A) the objectives and priorities of all 

19 United States Trade Representative-led inter20 agency programs for the year, and the reasons 

21 therefor; 

22 ‘‘(B) the actions proposed, or anticipated, 

23 to be undertaken during the year to achieve 

24 such objectives and priorities, including actions 


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1 authorized under the trade laws and negotia2 tions with foreign countries; 

3 ‘‘(C) the role of each Federal agency par4 ticipating in the interagency program in achiev5 ing such objectives and priorities and activities 

6 of each agency with respect to their participa7 tion in the program; 

8 ‘‘(D) the United States Trade Representa9 tive’s coordination of each participating Federal 

10 agency to more effectively achieve such objec11 tives and priorities; 

12 ‘‘(E) any proposed legislation necessary or 

13 appropriate to achieve any of such objectives or 

14 priorities; and 

15 ‘‘(F) the progress that was made during 

16 the preceding year in achieving such objectives 

17 and priorities and coordination activities in18 cluded in the statement provided for such year 

19 under this paragraph.’’. 

20 (b) RESOURCE MANAGEMENT AND STAFFING

21 PLANS.— 

22 (1) ANNUAL PLAN.— 

23 (A) IN GENERAL.—The United States 

24 Trade Representative shall on an annual basis 

25 develop a plan— 


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1 (i) to match available resources of the 

2 Office of the United States Trade Rep3 resentative to projected workload and pro4 vide a detailed analysis of how the funds 

5 allocated from the prior fiscal year to date 

6 have been spent; 

7 (ii) to identify existing staff of the Of8 fice and new staff that will be necessary to 

9 support the trade negotiation and enforce10 ment functions and powers of the Office 

11 (including those of the Trade Policy Staff 

12 Committee) as described in section 141 of 

13 the Trade Act of 1974 (19 U.S.C. 2171) 

14 and section 301 of the Trade Act of 1974 

15 (19 U.S.C. 2411); 

16 (iii) to identify existing staff of the 

17 Office and staff of other Federal agencies 

18 who will be required to be detailed to sup19 port United States Trade Representative20 led interagency programs, including any 

21 associated expenses; and 

22 (iv) to provide a detailed analysis of 

23 the budgetary requirements of United 

24 States Trade Representative-led inter25 agency programs for the next fiscal year 


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1 and provide a detailed analysis of how the 

2 funds allocated from the prior fiscal year 

3 to date have been spent. 

4 (B) REPORT.—The United States Trade 

5 Representative shall submit to the Committee 

6 on Ways and Means and the Committee on Ap7 propriations of the House of Representatives 

8 and the Committee on Finance and the Com9 mittee on Appropriations of the Senate a report 

10 that contains the plan required under subpara11 graph (A). The report required under this sub12 paragraph shall be submitted in conjunction 

13 with the annual budget of the United States 

14 Government required to be submitted to Con15 gress under section 1105 of title 31, United 

16 States Code. 

17 (2) QUADRENNIAL PLAN.— 

18 (A) IN GENERAL.—Pursuant to the goals 

19 and objectives of the strategic plan of the Office 

20 of the United States Trade Representative as 

21 required under section 306 of title 5, United 

22 States Code, the United States Trade Rep23 resentative shall every 4 years develop a plan— 

24 (i) to analyze internal quality controls 

25 and record management of the Office; 


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1 (ii) to identify existing staff of the Of2 fice and new staff that will be necessary to 

3 support the trade negotiation and enforce4 ment functions and powers of the Office 

5 (including those of the Trade Policy Staff 

6 Committee) as described in section 141 of 

7 the Trade Act of 1974 (19 U.S.C. 2171) 

8 and section 301 of the Trade Act of 1974 

9 (19 U.S.C. 2411); 

10 (iii) to identify existing staff of the 

11 Office and staff in other Federal agencies 

12 who will be required to be detailed to sup13 port United States Trade Representative14 led interagency programs, including any 

15 associated expenses; 

16 (iv) to provide an outline of budget 

17 justifications, including salaries and ex18 penses as well as non-personnel adminis19 trative expenses, for the fiscal years re20 quired under the strategic plan; and 

21 (v) to provide an outline of budget 

22 justifications, including salaries and ex23 penses as well as non-personnel adminis24 trative expenses, for United States Trade 

25 Representative-led interagency programs 


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1 for the fiscal years required under the 

2 strategic plan. 

3 (B) REPORT.— 

4 (i) IN GENERAL.—The United States 

5 Trade Representative shall submit to the 

6 Committee on Ways and Means and the 

7 Committee on Appropriations of the House 

8 of Representatives and the Committee on 

9 Finance and the Committee on Appropria10 tions of the Senate a report that contains 

11 the plan required under subparagraph (A). 

12 Except as provided in clause (ii), the re13 port required under this clause shall be 

14 submitted in conjunction with the strategic 

15 plan of the Office as required under sec16 tion 306 of title 5, United States Code. 

17 (ii) EXCEPTION.—The United States 

18 Trade Representative shall submit to the 

19 congressional committees specified in 

20 clause (i) an initial report that contains 

21 the plan required under subparagraph (A) 

22 not later than February 1, 2016. 

23 SEC. 608. UNITED STATES-ISRAEL TRADE AND COMMER24 CIAL ENHANCEMENT. 

25 (a) FINDINGS.—Congress finds the following: 


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1 (1) Israel is America’s dependable, democratic 

2 ally in the Middle East—an area of paramount stra3 tegic importance to the United States. 

4 (2) The United States-Israel Free Trade Agree5 ment formed the modern foundation of the bilateral 

6 commercial relationship between the two countries 

7 and was the first such agreement signed by the 

8 United States with a foreign country. 

9 (3) The United States-Israel Free Trade Agree10 ment has been instrumental in expanding commerce 

11 and the strategic relationship between the United 

12 States and Israel. 

13 (4) More than $45 billion in goods and services 

14 is traded annually between the two countries in ad15 dition to roughly $10 billion in United States foreign 

16 direct investment in Israel. 

17 (5) The United States continues to look for and 

18 find new opportunities to enhance cooperation with 

19 Israel, including through the enactment of the 

20 United States-Israel Enhanced Security Cooperation 

21 Act of 2012 (Public Law 112–150) and the United 

22 States-Israel Strategic Partnership Act of 2014 

23 (Public Law 113–296). 


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1 (6) It has been the policy of the United States 

2 Government to combat all elements of the Arab 

3 League Boycott of Israel by— 

4 (A) public statements of Administration of5 ficials; 

6 (B) enactment of relevant sections of the 

7 Export Administration Act of 1979 (as contin8 ued in effect pursuant to the International 

9 Emergency Economic Powers Act), including 

10 sections to ensure foreign persons comply with 

11 applicable reporting requirements relating to 

12 the boycott; 

13 (C) enactment of the 1976 Tax Reform 

14 Act (Public Law 94–455) that denies certain 

15 tax benefits to entities abiding by the boycott; 

16 (D) ensuring through free trade agree17 ments with Bahrain and Oman that such coun18 tries no longer participate in the boycott; and 

19 (E) ensuring as a condition of membership 

20 in the World Trade Organization that Saudi 

21 Arabia no longer enforces the secondary or ter22 tiary elements of the boycott. 

23 (b) STATEMENTS OF POLICY.—Congress— 

24 (1) supports the strengthening of United 

25 States-Israel economic cooperation and recognizes 


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1 the tremendous strategic, economic, and techno2 logical value of cooperation with Israel; 

3 (2) recognizes the benefit of cooperation with 

4 Israel to United States companies, including by im5 proving American competitiveness in global markets; 

6 (3) recognizes the importance of trade and com7 mercial relations to the pursuit and sustainability of 

8 peace, and supports efforts to bring together the 

9 United States, Israel, the Palestinian territories, and 

10 others in enhanced commerce; 

11 (4) opposes politically motivated actions that 

12 penalize or otherwise limit commercial relations spe13 cifically with Israel such as boycotts, divestment or 

14 sanctions; 

15 (5) notes that the boycott, divestment, and 

16 sanctioning of Israel by governments, governmental 

17 bodies, quasi-governmental bodies, international or18 ganizations, and other such entities is contrary to 

19 the General Agreement on Tariffs and Trade 

20 (GATT) principle of non-discrimination; 

21 (6) encourages the inclusion of politically moti22 vated actions that penalize or otherwise limit com23 mercial relations specifically with Israel such as boy24 cotts, divestment from, or sanctions against Israel as 

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1 nomic Development Group (JEDG) and other areas 

2 to support the strengthening of the United States3 Israel commercial relationship and combat any com4 mercial discrimination against Israel; 

5 (7) supports efforts to prevent investigations or 

6 prosecutions by governments or international organi7 zations of United States persons on the sole basis of 

8 such persons doing business with Israel, with Israeli 

9 entities, or in Israeli-controlled territories; and 

10 (8) supports American States examining a com11 pany’s promotion or compliance with unsanctioned 

12 boycotts, divestment from, or sanctions against 

13 Israel as part of its consideration in awarding grants 

14 and contracts and supports the divestment of State 

15 assets from companies that support or promote ac16 tions to boycott, divest from, or sanction Israel. 

17 (c) PRINCIPAL TRADE NEGOTIATING OBJECTIVES OF

18 THE UNITED STATES.— 

19 (1) COMMERCIAL PARTNERSHIPS.—Among the 

20 principal trade negotiating objectives of the United 

21 States for proposed trade agreements with foreign 

22 countries regarding commercial partnerships are the 

23 following: 

24 (A) To discourage actions by potential 

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1 udice or otherwise discourage commercial activ2 ity solely between the United States and Israel. 

3 (B) To discourage politically motivated ac4 tions to boycott, divest from, or sanction Israel 

5 and to seek the elimination of politically moti6 vated non-tariff barriers on Israeli goods, serv7 ices, or other commerce imposed on the State of 

8 Israel. 

9 (C) To seek the elimination of state-spon10 sored unsanctioned foreign boycotts against 

11 Israel or compliance with the Arab League Boy12 cott of Israel by prospective trading partners. 

13 (2) EFFECTIVE DATE.—This subsection takes 

14 effect on the date of the enactment of this Act and 

15 applies with respect to negotiations commenced be16 fore, on, or after the date of the enactment of this 

17 Act. 

18 (d) REPORT ON POLITICALLY MOTIVATED ACTS OF

19 BOYCOTT, DIVESTMENT FROM, AND SANCTIONS AGAINST

20 ISRAEL.— 

21 (1) IN GENERAL.—Not later than 180 days 

22 after the date of the enactment of this Act, and an23 nually thereafter, the President shall submit to Con24 gress a report on politically motivated acts of boy25 cott, divestment from, and sanctions against Israel. 


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1 (2) MATTERS TO BE INCLUDED.—The report 

2 required by paragraph (1) shall include the fol3 lowing: 

4 (A) A description of the establishment of 

5 barriers to trade, including non-tariff barriers, 

6 investment, or commerce by foreign countries or 

7 international organizations against United 

8 States persons operating or doing business in 

9 Israel, with Israeli entities, or in Israeli-con10 trolled territories. 

11 (B) A description of specific steps being 

12 taken by the United States to encourage foreign 

13 countries and international organizations to 

14 cease creating such barriers and to dismantle 

15 measures already in place and an assessment of 

16 the effectiveness of such steps. 

17 (C) A description of specific steps being 

18 taken by the United States to prevent investiga19 tions or prosecutions by governments or inter20 national organizations of United States persons 

21 on the sole basis of such persons doing business 

22 with Israel, with Israeli entities, or in Israeli23 controlled territories. 

24 (D) Decisions by foreign persons, including 

25 corporate entities and state-affiliated financial 


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1 institutions, that limit or prohibit economic re2 lations with Israel or persons doing business in 

3 Israel or in Israeli controlled territories. 

4 (e) ISRAEL TRADE AND COMMERCE BOYCOTT RE5 PORTING.—Section 13 of the Securities Exchange Act of 

6 1934 (15 U.S.C. 78m) is amended by adding at the end 

7 the following: 

8 ‘‘(s) ISRAEL TRADE AND COMMERCE BOYCOTT RE9 PORTING.— 

10 ‘‘(1) IN GENERAL.—Each foreign issuer re11 quired to file an annual or quarterly report under 

12 subsection (a) shall disclose in that report— 

13 ‘‘(A) whether the issuer has discriminated 

14 against doing business with Israel in the last 

15 calendar year and in such cases an issuer shall 

16 provide a description of the discrimination. 

17 ‘‘(B) whether the issuer has been advised 

18 by a foreign government or a non-member state 

19 of the United Nations to discriminate against 

20 doing business with Israel, entities owned or 

21 controlled by the government of Israel, or enti22 ties operating in Israel or Israeli-controlled ter23 ritory; and 

24 ‘‘(C) any instances where the issuer has 

25 learned that a person, foreign government, or a 


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1 non-member state of the United Nations is boy2 cotting the issuer, divesting themselves of an 

3 ownership interest in the issuer, or placing 

4 sanctions on the issuer because of the issuer’s 

5 relationship with Israel, entities owned or con6 trolled by the government of Israel, or entities 

7 operating in Israel or Israeli-controlled terri8 tory. 

9 ‘‘(2) DEFINITIONS.—For purposes of this sub10 section: 

11 ‘‘(A) FOREIGN ISSUER.—The term ‘foreign 

12 issuer’ means an issuer that is not incorporated 

13 in the United States. 

14 ‘‘(B) NON-MEMBER STATES OF THE

15 UNITED NATIONS.—The term ‘non-member 

16 states of the United Nations’ has the meaning 

17 given such term by the United Nations.’’. 

18 (f) FOREIGN JUDGMENTS AGAINST UNITED STATES

19 PERSONS.—No court in the United States may recognize 

20 or enforce any judgment which is entered by a foreign 

21 court against a United States person carrying out business 

22 operations in Israel or in any territory controlled by Israel 

23 and on which is based a determination by the foreign court 

24 that the location in Israel, or in any territory controlled 


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1 by Israel, of the facilities at which the business operations 

2 are carried out is sufficient to constitute a violation of law. 

3 (g) DEFINITIONS.—In this section: 

4 (1) BOYCOTT, DIVESTMENT FROM, AND SANC5 TIONS AGAINST ISRAEL.—The term ‘‘boycott, divest6 ment from, and sanctions against Israel’’ means ac7 tions by states, non-member states of the United 

8 Nations, international organizations, or affiliated 

9 agencies of international organizations that are po10 litically motivated and are intended to penalize or 

11 otherwise limit commercial relations specifically with 

12 Israel or persons doing business in Israel or in 

13 Israeli-controlled territories. 

14 (2) FOREIGN PERSON.—The term ‘‘foreign per15 son’’ means— 

16 (A) any natural person who is not lawfully 

17 admitted for permanent residence (as defined in 

18 section 101(a)(20) of the Immigration and Na19 tionality Act (8 U.S.C. 1101(a)(20)) or who is 

20 not a protected individual (as defined in section 

21 274B(a)(3) of such Act (8 U.S.C. 1324b(a)(3)); 

22 and 

23 (B) any foreign corporation, business asso24 ciation, partnership, trust, society or any other 

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1 nized to do business in the United States, as 

2 well as any international organization, foreign 

3 government and any agency or subdivision of 

4 foreign government, including a diplomatic mis5 sion. 

6 (3) PERSON.— 

7 (A) IN GENERAL.—The term ‘‘person’’ 

8 means— 

9 (i) a natural person; 

10 (ii) a corporation, business associa11 tion, partnership, society, trust, financial 

12 institution, insurer, underwriter, guar13 antor, and any other business organization, 

14 any other nongovernmental entity, organi15 zation, or group, and any governmental en16 tity operating as a business enterprise; and 

17 (iii) any successor to any entity de18 scribed in clause (ii). 

19 (B) APPLICATION TO GOVERNMENTAL EN20 TITIES.—The term ‘‘person’’ does not include a 

21 government or governmental entity that is not 

22 operating as a business enterprise. 

23 (4) UNITED STATES PERSON.—The term 

24 ‘‘United States person’’ means— 


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1 (A) a natural person who is a national of 

2 the United States (as defined in section 

3 101(a)(22) of the Immigration and Nationality 

4 Act (8 U.S.C. 1101(a)(22)); and 

5 (B) a corporation or other legal entity 

6 which is organized under the laws of the United 

7 States, any State or territory thereof, or the 

8 District of Columbia, if natural persons de9 scribed in subparagraph (A) own, directly or in10 directly, more than 50 percent of the out11 standing capital stock or other beneficial inter12 est in such legal entity. 

13 SEC. 609. ELIMINATION OF CONSUMPTIVE DEMAND EXCEP14 TION TO PROHIBITION ON IMPORTATION OF 

15 GOODS MADE WITH CONVICT LABOR, 

16 FORCED LABOR, OR INDENTURED LABOR; RE17 PORT. 

18 (a) ELIMINATION OF CONSUMPTIVE DEMAND EX19 CEPTION.— 

20 (1) IN GENERAL.—Section 307 of the Tariff 

21 Act of 1930 (19 U.S.C. 1307) is amended by strik22 ing ‘‘The provisions of this section’’ and all that fol23 lows through ‘‘of the United States.’’. 

24 (2) EFFECTIVE DATE.—The amendment made 

25 by paragraph (1) shall take effect on the date that 


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1 is 15 days after the date of the enactment of this 

2 Act. 

3 (b) REPORT REQUIRED.—Not later than 180 days 

4 after the date of the enactment of this Act, and annually 

5 thereafter, the Commissioner shall submit to the Com6 mittee on Finance of the Senate and the Committee on 

7 Ways and Means of the House of Representatives a report 

8 on compliance with section 307 of the Tariff Act of 1930 

9 (19 U.S.C. 1307) that includes the following: 

10 (1) The number of instances in which merchan11 dise was denied entry pursuant to that section dur12 ing the 1-year period preceding the submission of 

13 the report. 

14 (2) A description of the merchandise denied 

15 entry pursuant to that section. 

16 (3) Such other information as the Commis17 sioner considers appropriate with respect to moni18 toring and enforcing compliance with that section. 

19 SEC. 610. CUSTOMS USER FEES. 

20 (a) IN GENERAL.—Section 13031(j)(3) of the Con21 solidated Omnibus Budget Reconciliation Act of 1985 (19 

22 U.S.C. 58c(j)(3)) is amended by adding at the end the 

23 following: 


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1 ‘‘(C) Fees may be charged under paragraphs (9) and 

2 (10) of subsection (a) during the period beginning on July 

3 8, 2025, and ending on July 28, 2025.’’. 

4 (b) RATE FOR MERCHANDISE PROCESSING FEES.— 

5 Section 503 of the United States–Korea Free Trade 

6 Agreement Implementation Act (Public Law 112–41; 125 

7 Stat. 460) is amended— 

8 (1) by striking ‘‘For the period’’ and inserting 

9 ‘‘(a) IN GENERAL.—For the period’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(b) ADDITIONAL PERIOD.—For the period begin12 ning on July 1, 2025, and ending on July 14, 2025, sec13 tion 13031(a)(9) of the Consolidated Omnibus Budget 

14 Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) shall be 

15 applied and administered— 

16 ‘‘(1) in subparagraph (A), by substituting 

17 ‘0.3464’ for ‘0.21’; and 

18 ‘‘(2) in subparagraph (B)(i), by substituting 

19 ‘0.3464’ for ‘0.21’.’’. 

20 SEC. 611. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER 

21 PROTECTION AGREEMENTS. 

22 (a) IN GENERAL.—Not later than one year after en23 tering into an agreement under a program specified in 

24 subsection (b), and annually thereafter until the termi25 nation of the program, the Commissioner shall submit to 


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1 the Committee on Finance of the Senate and the Com2 mittee on Ways and Means of the House of Representa3 tives a report that includes the following: 

4 (1) A description of the development of the pro5 gram. 

6 (2) A description of the type of entity with 

7 which U.S. Customs and Border Protection entered 

8 into the agreement and the amount that entity reim9 bursed U.S. Customs and Border Protection under 

10 the agreement. 

11 (3) An identification of the type of port of entry 

12 to which the agreement relates and an assessment of 

13 how the agreement provides economic benefits at the 

14 port of entry. 

15 (4) A description of the services provided by 

16 U.S. Customs and Border Protection under the 

17 agreement during the year preceding the submission 

18 of the report. 

19 (5) The amount of fees collected under the 

20 agreement during that year. 

21 (6) A detailed accounting of how the fees col22 lected under the agreement have been spent during 

23 that year. 


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1 (7) A summary of any complaints or criticism 

2 received by U.S. Customs and Border Protection 

3 during that year regarding the agreement. 

4 (8) An assessment of the compliance of the en5 tity described in paragraph (2) with the terms of the 

6 agreement. 

7 (9) Recommendations with respect to how ac8 tivities conducted pursuant to the agreement could 

9 function more effectively or better produce economic 

10 benefits. 

11 (10) A summary of the benefits to and chal12 lenges faced by U.S. Customs and Border Protection 

13 and the entity described in paragraph (2) under the 

14 agreement. 

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 

19 and Border Protection services established by section 

20 560 of the Department of Homeland Security Ap21 propriations Act, 2013 (division D of Public Law 

22 113–6; 127 Stat. 378); or 

23 (2) the pilot program authorizing U.S. Customs 

24 and Border Protection to enter into partnerships 

25 with private sector and government entities at ports 


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1 of entry established by section 559 of the Depart2 ment of Homeland Security Appropriations Act, 

3 2014 (division F of Public Law 113–76; 6 U.S.C. 

4 211 note). 

Æ 


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