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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5788 Referred in Senate (RFS)]

<DOC>
115th CONGRESS
  2d Session
                                H. R. 5788

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 18, 2018

     Received; read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 AN ACT

 
To provide for the processing by U.S. Customs and Border Protection of 
 certain international mail shipments and to require the provision of 
advance electronic information on international mail shipments of mail, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Synthetics 
Trafficking and Overdose Prevention Act of 2018'' or ``STOP Act of 
2018''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Customs fees.
Sec. 3. Mandatory advance electronic information for postal shipments.
Sec. 4. International postal agreements.
Sec. 5. Cost recoupment.
Sec. 6. Development of technology to detect illicit narcotics.
Sec. 7. Civil penalties for postal shipments.
Sec. 8. Report on violations of arrival, reporting, entry, and 
                            clearance requirements and falsity or lack 
                            of manifest.
Sec. 9. Effective date; regulations.

SEC. 2. CUSTOMS FEES.

    (a) In General.--Section 13031(b)(9) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)) is amended by 
adding at the end the following:
            ``(D)(i) With respect to the processing of items that are 
        sent to the United States through the international postal 
        network by `Inbound Express Mail service' or `Inbound EMS' (as 
        that service is described in the mail classification schedule 
        referred to in section 3631 of title 39, United States Code), 
        the following payments are required:
                    ``(I) $1 per Inbound EMS item.
                    ``(II) If an Inbound EMS item is formally entered, 
                the fee provided for under subsection (a)(9), if 
                applicable.
            ``(ii) Notwithstanding section 451 of the Tariff Act of 
        1930 (19 U.S.C. 1451), the payments required by clause (i), as 
        allocated pursuant to clause (iii)(I), shall be the only 
        payments required for reimbursement of U.S. Customs and Border 
        Protection for customs services provided in connection with the 
        processing of an Inbound EMS item.
            ``(iii)(I) The payments required by clause (i)(I) shall be 
        allocated as follows:
                    ``(aa) 50 percent of the amount of the payments 
                shall be paid on a quarterly basis by the United States 
                Postal Service to the Commissioner of U.S. Customs and 
                Border Protection in accordance with regulations 
                prescribed by the Secretary of the Treasury to 
                reimburse U.S. Customs and Border Protection for 
                customs services provided in connection with the 
                processing of Inbound EMS items.
                    ``(bb) 50 percent of the amount of the payments 
                shall be retained by the Postal Service to reimburse 
                the Postal Service for services provided in connection 
                with the customs processing of Inbound EMS items.
            ``(II) Payments received by U.S. Customs and Border 
        Protection under subclause (I)(aa) shall, in accordance with 
        section 524 of the Tariff Act of 1930 (19 U.S.C. 1524), be 
        deposited in the Customs User Fee Account and used to directly 
        reimburse each appropriation for the amount paid out of that 
        appropriation for the costs incurred in providing services to 
        international mail facilities. Amounts deposited in accordance 
        with the preceding sentence shall be available until expended 
        for the provision of such services.
            ``(III) Payments retained by the Postal Service under 
        subclause (I)(bb) shall be used to directly reimburse the 
        Postal Service for the costs incurred in providing services in 
        connection with the customs processing of Inbound EMS items.
            ``(iv) Beginning in fiscal year 2021, the Secretary, in 
        consultation with the Postmaster General, may adjust, not more 
        frequently than once each fiscal year, the amount described in 
        clause (i)(I) to an amount commensurate with the costs of 
        services provided in connection with the customs processing of 
        Inbound EMS items, consistent with the obligations of the 
        United States under international agreements.''.
    (b) Conforming Amendments.--Section 13031(a) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)) is 
amended--
            (1) in paragraph (6), by inserting ``(other than an item 
        subject to a fee under subsection (b)(9)(D))'' after ``customs 
        officer''; and
            (2) in paragraph (10)--
                    (A) in subparagraph (C), in the matter preceding 
                clause (i), by inserting ``(other than Inbound EMS 
                items described in subsection (b)(9)(D))'' after 
                ``release''; and
                    (B) in the flush at the end, by inserting ``or of 
                Inbound EMS items described in subsection (b)(9)(D),'' 
                after ``(C),''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2020.

SEC. 3. MANDATORY ADVANCE ELECTRONIC INFORMATION FOR POSTAL SHIPMENTS.

    (a) Mandatory Advance Electronic Information.--
            (1) In general.--Section 343(a)(3)(K) of the Trade Act of 
        2002 (Public Law 107-210; 19 U.S.C. 2071 note) is amended to 
        read as follows:
                    ``(K)(i) The Secretary shall prescribe regulations 
                requiring the United States Postal Service to transmit 
                the information described in paragraphs (1) and (2) to 
                the Commissioner of U.S. Customs and Border Protection 
                for international mail shipments by the Postal Service 
                (including shipments to the Postal Service from foreign 
                postal operators that are transported by private 
                carrier) consistent with the requirements of this 
                subparagraph.
                    ``(ii) In prescribing regulations under clause (i), 
                the Secretary shall impose requirements for the 
                transmission to the Commissioner of information 
                described in paragraphs (1) and (2) for mail shipments 
                described in clause (i) that are comparable to the 
                requirements for the transmission of such information 
                imposed on similar non-mail shipments of cargo, taking 
                into account the parameters set forth in subparagraphs 
                (A) through (J).
                    ``(iii) The regulations prescribed under clause (i) 
                shall require the transmission of the information 
                described in paragraphs (1) and (2) with respect to a 
                shipment as soon as practicable in relation to the 
                transportation of the shipment, consistent with 
                subparagraph (H).
                    ``(iv) Regulations prescribed under clause (i) 
                shall allow for the requirements for the transmission 
                to the Commissioner of information described in 
                paragraphs (1) and (2) for mail shipments described in 
                clause (i) to be implemented in phases, as appropriate, 
                by--
                            ``(I) setting incremental targets for 
                        increasing the percentage of such shipments for 
                        which information is required to be transmitted 
                        to the Commissioner; and
                            ``(II) taking into consideration--
                                    ``(aa) the risk posed by such 
                                shipments;
                                    ``(bb) the volume of mail shipped 
                                to the United States by or through a 
                                particular country; and
                                    ``(cc) the capacities of foreign 
                                postal operators to provide that 
                                information to the Postal Service.
                    ``(v)(I) Notwithstanding clause (iv), the Postal 
                Service shall, not later than December 31, 2018, 
                arrange for the transmission to the Commissioner of the 
                information described in paragraphs (1) and (2) for not 
                less than 70 percent of the aggregate number of mail 
                shipments, including 100 percent of mail shipments from 
                the People's Republic of China, described in clause 
                (i).
                    ``(II) If the requirements of subclause (I) are not 
                met, the Comptroller General of the United States shall 
                submit to the appropriate congressional committees, not 
                later than June 30, 2019, a report--
                            ``(aa) assessing the reasons for the 
                        failure to meet those requirements; and
                            ``(bb) identifying recommendations to 
                        improve the collection by the Postal Service of 
                        the information described in paragraphs (1) and 
                        (2).
                    ``(vi)(I) Notwithstanding clause (iv), the Postal 
                Service shall, not later than December 31, 2020, 
                arrange for the transmission to the Commissioner of the 
                information described in paragraphs (1) and (2) for 100 
                percent of the aggregate number of mail shipments 
                described in clause (i).
                    ``(II) The Commissioner, in consultation with the 
                Postmaster General, may determine to exclude a country 
                from the requirement described in subclause (I) to 
                transmit information for mail shipments described in 
                clause (i) from the country if the Commissioner 
                determines that the country--
                            ``(aa) does not have the capacity to 
                        collect and transmit such information;
                            ``(bb) represents a low risk for mail 
                        shipments that violate relevant United States 
                        laws and regulations; and
                            ``(cc) accounts for low volumes of mail 
                        shipments that can be effectively screened for 
                        compliance with relevant United States laws and 
                        regulations through an alternate means.
                    ``(III) The Commissioner shall, at a minimum on an 
                annual basis, re-evaluate any determination made under 
                subclause (II) to exclude a country from the 
                requirement described in subclause (I). If, at any 
                time, the Commissioner determines that a country no 
                longer meets the requirements under subclause (II), the 
                Commissioner may not further exclude the country from 
                the requirement described in subclause (I).
                    ``(IV) The Commissioner shall, on an annual basis, 
                submit to the appropriate congressional committees--
                            ``(aa) a list of countries with respect to 
                        which the Commissioner has made a determination 
                        under subclause (II) to exclude the countries 
                        from the requirement described in subclause 
                        (I); and
                            ``(bb) information used to support such 
                        determination with respect to such countries.
                    ``(vii)(I) The Postmaster General shall, in 
                consultation with the Commissioner, refuse any 
                shipments received after December 31, 2020, for which 
                the information described in paragraphs (1) and (2) is 
                not transmitted as required under this subparagraph, 
                except as provided in subclause (II).
                    ``(II) If remedial action is warranted in lieu of 
                refusal of shipments pursuant to subclause (I), the 
                Postmaster General and the Commissioner shall take 
                remedial action with respect to the shipments, 
                including destruction, seizure, controlled delivery or 
                other law enforcement initiatives, or correction of the 
                failure to provide the information described in 
                paragraphs (1) and (2) with respect to the shipments.
                    ``(viii) Nothing in this subparagraph shall be 
                construed to limit the authority of the Secretary to 
                obtain information relating to international mail 
                shipments from private carriers or other appropriate 
                parties.
                    ``(ix) In this subparagraph, the term `appropriate 
                congressional committees' means--
                            ``(I) the Committee on Finance and the 
                        Committee on Homeland Security and Governmental 
                        Affairs of the Senate; and
                            ``(II) the Committee on Ways and Means, the 
                        Committee on Oversight and Government Reform, 
                        and the Committee on Homeland Security of the 
                        House of Representatives.''.
            (2) Joint strategic plan on mandatory advance 
        information.--Not later than 60 days after the date of the 
        enactment of this Act, the Secretary of Homeland Security and 
        the Postmaster General shall develop and submit to the 
        appropriate congressional committees a joint strategic plan 
        detailing specific performance measures for achieving--
                    (A) the transmission of information as required by 
                section 343(a)(3)(K) of the Trade Act of 2002, as 
                amended by paragraph (1); and
                    (B) the presentation by the Postal Service to U.S. 
                Customs and Border Protection of all mail targeted by 
                U.S. Customs and Border Protection for inspection.
    (b) Capacity Building.--
            (1) In general.--Section 343(a) of the Trade Act of 2002 
        (Public Law 107-210; 19 U.S.C. 2071 note) is amended by adding 
        at the end the following:
            ``(5) Capacity building.--
                    ``(A) In general.--The Secretary, with the 
                concurrence of the Secretary of State, and in 
                coordination with the Postmaster General and the heads 
                of other Federal agencies, as appropriate, may provide 
                technical assistance, equipment, technology, and 
                training to enhance the capacity of foreign postal 
                operators--
                            ``(i) to gather and provide the information 
                        required by paragraph (3)(K); and
                            ``(ii) to otherwise gather and provide 
                        postal shipment information related to--
                                    ``(I) terrorism;
                                    ``(II) items the importation or 
                                introduction of which into the United 
                                States is prohibited or restricted, 
                                including controlled substances; and
                                    ``(III) such other concerns as the 
                                Secretary determines appropriate.
                    ``(B) Provision of equipment and technology.--With 
                respect to the provision of equipment and technology 
                under subparagraph (A), the Secretary may lease, loan, 
                provide, or otherwise assist in the deployment of such 
                equipment and technology under such terms and 
                conditions as the Secretary may prescribe, including 
                nonreimbursable loans or the transfer of ownership of 
                equipment and technology.''.
            (2) Joint strategic plan on capacity building.--Not later 
        than one year after the date of the enactment of this Act, the 
        Secretary of Homeland Security and the Postmaster General 
        shall, in consultation with the Secretary of State, jointly 
        develop and submit to the appropriate congressional committees 
        a joint strategic plan--
                    (A) detailing the extent to which U.S. Customs and 
                Border Protection and the United States Postal Service 
                are engaged in capacity building efforts under section 
                343(a)(5) of the Trade Act of 2002, as added by 
                paragraph (1);
                    (B) describing plans for future capacity building 
                efforts; and
                    (C) assessing how capacity building has increased 
                the ability of U.S. Customs and Border Protection and 
                the Postal Service to advance the goals of this Act and 
                the amendments made by this Act.
    (c) Report and Consultations by Secretary of Homeland Security and 
Postmaster General.--
            (1) Report.--Not later than 180 days after the date of the 
        enactment of this Act, and annually thereafter until 3 years 
        after the Postmaster General has met the requirement under 
        clause (vi) of subparagraph (K) of section 343(a)(3) of the 
        Trade Act of 2002, as amended by subsection (a)(1), the 
        Secretary of Homeland Security and the Postmaster General 
        shall, in consultation with the Secretary of State, jointly 
        submit to the appropriate congressional committees a report on 
        compliance with that subparagraph that includes the following:
                    (A) An assessment of the status of the regulations 
                required to be promulgated under that subparagraph.
                    (B) An update regarding new and existing agreements 
                reached with foreign postal operators for the 
                transmission of the information required by that 
                subparagraph.
                    (C) A summary of deliberations between the United 
                States Postal Service and foreign postal operators with 
                respect to issues relating to the transmission of that 
                information.
                    (D) A summary of the progress made in achieving the 
                transmission of that information for the percentage of 
                shipments required by that subparagraph.
                    (E) An assessment of the quality of that 
                information being received by foreign postal operators, 
                as determined by the Secretary of Homeland Security, 
                and actions taken to improve the quality of that 
                information.
                    (F) A summary of policies established by the 
                Universal Postal Union that may affect the ability of 
                the Postmaster General to obtain the transmission of 
                that information.
                    (G) A summary of the use of technology to detect 
                illicit synthetic opioids and other illegal substances 
                in international mail parcels and planned acquisitions 
                and advancements in such technology.
                    (H) Such other information as the Secretary of 
                Homeland Security and the Postmaster General consider 
                appropriate with respect to obtaining the transmission 
                of information required by that subparagraph.
            (2) Consultations.--Not later than 180 days after the date 
        of the enactment of this Act, and every 180 days thereafter 
        until the Postmaster General has met the requirement under 
        clause (vi) of section 343(a)(3)(K) of the Trade Act of 2002, 
        as amended by subsection (a)(1), to arrange for the 
        transmission of information with respect to 100 percent of the 
        aggregate number of mail shipments described in clause (i) of 
        that section, the Secretary of Homeland Security and the 
        Postmaster General shall provide briefings to the appropriate 
        congressional committees on the progress made in achieving the 
        transmission of that information for that percentage of 
        shipments.
    (d) Government Accountability Office Report.--Not later than June 
30, 2019, the Comptroller General of the United States shall submit to 
the appropriate congressional committees a report--
            (1) assessing the progress of the United States Postal 
        Service in achieving the transmission of the information 
        required by subparagraph (K) of section 343(a)(3) of the Trade 
        Act of 2002, as amended by subsection (a)(1), for the 
        percentage of shipments required by that subparagraph;
            (2) assessing the quality of the information received from 
        foreign postal operators for targeting purposes;
            (3) assessing the specific percentage of targeted mail 
        presented by the Postal Service to U.S. Customs and Border 
        Protection for inspection;
            (4) describing the costs of collecting the information 
        required by such subparagraph (K) from foreign postal operators 
        and the costs of implementing the use of that information;
            (5) assessing the benefits of receiving that information 
        with respect to international mail shipments;
            (6) assessing the feasibility of assessing a customs fee 
        under section 13031(b)(9) of the Consolidated Omnibus Budget 
        Reconciliation Act of 1985, as amended by section 2, on 
        international mail shipments other than Inbound Express Mail 
        service in a manner consistent with the obligations of the 
        United States under international agreements; and
            (7) identifying recommendations, including recommendations 
        for legislation, to improve the compliance of the Postal 
        Service with such subparagraph (K), including an assessment of 
        whether the detection of illicit synthetic opioids in the 
        international mail would be improved by--
                    (A) requiring the Postal Service to serve as the 
                consignee for international mail shipments containing 
                goods; or
                    (B) designating a customs broker to act as an 
                importer of record for international mail shipments 
                containing goods.
    (e) Technical Correction.--Section 343 of the Trade Act of 2002 
(Public Law 107-210; 19 U.S.C. 2071 note) is amended in the section 
heading by striking ``advanced'' and inserting ``advance''.
    (f) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Finance and the Committee on Homeland 
        Security and Governmental Affairs of the Senate; and
            (2) the Committee on Ways and Means, the Committee on 
        Oversight and Government Reform, and the Committee on Homeland 
        Security of the House of Representatives.

SEC. 4. INTERNATIONAL POSTAL AGREEMENTS.

    (a) Existing Agreements.--
            (1) In general.--In the event that any provision of this 
        Act, or any amendment made by this Act, is determined to be in 
        violation of obligations of the United States under any postal 
        treaty, convention, or other international agreement related to 
        international postal services, or any amendment to such an 
        agreement, the Secretary of State should negotiate to amend the 
        relevant provisions of the agreement so that the United States 
        is no longer in violation of the agreement.
            (2) Rule of construction.--Nothing in this subsection shall 
        be construed to permit delay in the implementation of this Act 
        or any amendment made by this Act.
    (b) Future Agreements.--
            (1) Consultations.--Before entering into, on or after the 
        date of the enactment of this Act, any postal treaty, 
        convention, or other international agreement related to 
        international postal services, or any amendment to such an 
        agreement, that is related to the ability of the United States 
        to secure the provision of advance electronic information by 
        foreign postal operators, the Secretary of State should consult 
        with the appropriate congressional committees (as defined in 
        section 3(f)).
            (2) Expedited negotiation of new agreement.--To the extent 
        that any new postal treaty, convention, or other international 
        agreement related to international postal services would 
        improve the ability of the United States to secure the 
        provision of advance electronic information by foreign postal 
        operators as required by regulations prescribed under section 
        343(a)(3)(K) of the Trade Act of 2002, as amended by section 
        3(a)(1), the Secretary of State should expeditiously conclude 
        such an agreement.

SEC. 5. COST RECOUPMENT.

    (a) In General.--The United States Postal Service shall, to the 
extent practicable and otherwise recoverable by law, ensure that all 
costs associated with complying with this Act and amendments made by 
this Act are charged directly to foreign shippers or foreign postal 
operators.
    (b) Costs Not Considered Revenue.--The recovery of costs under 
subsection (a) shall not be deemed revenue for purposes of subchapter I 
and II of chapter 36 of title 39, United States Code, or regulations 
prescribed under that chapter.

SEC. 6. DEVELOPMENT OF TECHNOLOGY TO DETECT ILLICIT NARCOTICS.

    (a) In General.--The Postmaster General and the Commissioner of 
U.S. Customs and Border Protection, in coordination with the heads of 
other agencies as appropriate, shall collaborate to identify and 
develop technology for the detection of illicit fentanyl, other 
synthetic opioids, and other narcotics and psychoactive substances 
entering the United States by mail.
    (b) Outreach to Private Sector.--The Postmaster General and the 
Commissioner shall conduct outreach to private sector entities to 
gather information regarding the current state of technology to 
identify areas for innovation relating to the detection of illicit 
fentanyl, other synthetic opioids, and other narcotics and psychoactive 
substances entering the United States.

SEC. 7. CIVIL PENALTIES FOR POSTAL SHIPMENTS.

    Section 436 of the Tariff Act of 1930 (19 U.S.C. 1436) is amended 
by adding at the end the following new subsection:
    ``(e) Civil Penalties for Postal Shipments.--
            ``(1) Civil penalty.--A civil penalty shall be imposed 
        against the United States Postal Service if the Postal Service 
        accepts a shipment in violation of section 343(a)(3)(K)(vii)(I) 
        of the Trade Act of 2002.
            ``(2) Modification of civil penalty.--
                    ``(A) In general.--U.S. Customs and Border 
                Protection shall reduce or dismiss a civil penalty 
                imposed pursuant to paragraph (1) if U.S. Customs and 
                Border Protection determines that the United States 
                Postal Service--
                            ``(i) has a low error rate in compliance 
                        with section 343(a)(3)(K) of the Trade Act of 
                        2002;
                            ``(ii) is cooperating with U.S. Customs and 
                        Border Protection with respect to the violation 
                        of section 343(a)(3)(K)(vii)(I) of the Trade 
                        Act of 2002; or
                            ``(iii) has taken remedial action to 
                        prevent future violations of section 
                        343(a)(3)(K)(vii)(I) of the Trade Act of 2002.
                    ``(B) Written notification.--U.S. Customs and 
                Border Protection shall issue a written notification to 
                the Postal Service with respect to each exercise of the 
                authority of subparagraph (A) to reduce or dismiss a 
                civil penalty imposed pursuant to paragraph (1).
            ``(3) Ongoing lack of compliance.--If U.S. Customs and 
        Border Protection determines that the United States Postal 
        Service--
                    ``(A) has repeatedly committed violations of 
                section 343(a)(3)(K)(vii)(I) of the Trade Act of 2002,
                    ``(B) has failed to cooperate with U.S. Customs and 
                Border Protection with respect to violations of section 
                343(a)(3)(K)(vii)(I) of the Trade Act of 2002, and
                    ``(C) has an increasing error rate in compliance 
                with section 343(a)(3)(K) of the Trade Act of 2002,
        civil penalties may be imposed against the United States Postal 
        Service until corrective action, satisfactory to U.S. Customs 
        and Border Protection, is taken.''.

SEC. 8. REPORT ON VIOLATIONS OF ARRIVAL, REPORTING, ENTRY, AND 
              CLEARANCE REQUIREMENTS AND FALSITY OR LACK OF MANIFEST.

    (a) In General.--The Commissioner of U.S. Customs and Border 
Protection shall submit to the appropriate congressional committees an 
annual report that contains the information described in subsection (b) 
with respect to each violation of section 436 of the Tariff Act of 1930 
(19 U.S.C. 1436), as amended by section 7, and section 584 of such Act 
(19 U.S.C. 1584) that occurred during the previous year.
    (b) Information Described.--The information described in this 
subsection is the following:
            (1) The name and address of the violator.
            (2) The specific violation that was committed.
            (3) The location or port of entry through which the items 
        were transported.
            (4) An inventory of the items seized, including a 
        description of the items and the quantity seized.
            (5) The location from which the items originated.
            (6) The entity responsible for the apprehension or seizure, 
        organized by location or port of entry.
            (7) The amount of penalties assessed by U.S. Customs and 
        Border Protection, organized by name of the violator and 
        location or port of entry.
            (8) The amount of penalties that U.S. Customs and Border 
        Protection could have levied, organized by name of the violator 
        and location or port of entry.
            (9) The rationale for negotiating lower penalties, 
        organized by name of the violator and location or port of 
        entry.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Finance and the Committee on Homeland 
        Security and Governmental Affairs of the Senate; and
            (2) the Committee on Ways and Means, the Committee on 
        Oversight and Government Reform, and the Committee on Homeland 
        Security of the House of Representatives.

SEC. 9. EFFECTIVE DATE; REGULATIONS.

    (a) Effective Date.--This Act and the amendments made by this Act 
(other than the amendments made by section 2) shall take effect on the 
date of the enactment of this Act.
    (b) Regulations.--Not later than one year after the date of the 
enactment of this Act, such regulations as are necessary to carry out 
this Act and the amendments made by this Act shall be prescribed.

            Passed the House of Representatives June 14, 2018.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
```