H. R. 4868—65
(or the President’s designee), with respect to the prohibitions
under subsection (b)(1)(B).
‘‘(5) DOG FUR.—The term ‘dog fur’ means the pelt or skin
of any animal of the species Canis familiaris.
‘‘(6) DOG OR CAT FUR PRODUCT.—The term ‘dog or cat fur
product’ means any item of merchandise which consists, or
is composed in whole or in part, of any dog fur, cat fur, or
both.
‘‘(7) PERSON.—The term ‘person’ includes any individual,
partnership, corporation, association, organization, business
trust, government entity, or other entity subject to the jurisdic-
tion of the United States.
‘‘(8) UNITED STATES.—The term ‘United States’ means the
customs territory of the United States, as defined in general
note 2 of the Harmonized Tariff Schedule of the United States.
‘‘(b) PROHIBITIONS.—
‘‘(1) IN GENERAL.—It shall be unlawful for any person to—
‘‘(A) import into, or export from, the United States
any dog or cat fur product; or
‘‘(B) introduce into interstate commerce, manufacture
for introduction into interstate commerce, sell, trade, or
advertise in interstate commerce, offer to sell, or transport
or distribute in interstate commerce in the United States,
any dog or cat fur product.
‘‘(2) EXCEPTION.—This subsection shall not apply to the
importation, exportation, or transportation, for noncommercial
purposes, of a personal pet that is deceased, including a pet
preserved through taxidermy.
‘‘(c) PENALTIES AND ENFORCEMENT.—
‘‘(1) CIVIL PENALTIES.—
‘‘(A) IN GENERAL.—Any person who violates any provi-
sion of this section or any regulation issued under this
section may, in addition to any other civil or criminal
penalty that may be imposed under title 18, United States
Code, or any other provision of law, be assessed a civil
penalty by the designated authority of not more than—
‘‘(i) $10,000 for each separate knowing and inten-
tional violation;
‘‘(ii) $5,000 for each separate grossly negligent vio-
lation; or
‘‘(iii) $3,000 for each separate negligent violation.
‘‘(B) DEBARMENT.—The designated authority may pro-
hibit a person from importing, exporting, transporting, dis-
tributing, manufacturing, or selling any fur product in
the United States, if the designated authority finds that
the person has engaged in a pattern or practice of actions
that has resulted in a final administrative determination
with respect to the assessment of civil penalties for knowing
and intentional or grossly negligent violations of any provi-
sion of this section or any regulation issued under this
section.
‘‘(C) FACTORS IN ASSESSING PENALTIES.—In determining
the amount of civil penalties under this paragraph, the
designated authority shall take into account the degree
of culpability, any history of prior violations under this
section, ability to pay, the seriousness of the violation,
and such other matters as fairness may require.
H. R. 4868—66
‘‘(D) NOTICE.—No penalty may be assessed under this
paragraph against a person unless the person is given
notice and opportunity for a hearing with respect to such
violation in accordance with section 554 of title 5, United
States Code.
‘‘(2) FORFEITURE.—Any dog or cat fur product manufac-
tured, taken, possessed, sold, purchased, offered for sale or
purchase, transported, delivered, received, carried, shipped,
imported, or exported contrary to the provisions of this section
or any regulation issued under this section shall be subject
to forfeiture to the United States.
‘‘(3) ENFORCEMENT.—The Secretary of the Treasury shall
enforce the provisions of this section with respect to the prohibi-
tions under subsection (b)(1)(A), and the President shall enforce
the provisions of this section with respect to the prohibitions
under subsection (b)(1)(B).
‘‘(4) REGULATIONS.—Not later than 270 days after the date
of the enactment of this section, the designated authorities
shall, after notice and opportunity for comment, issue regula-
tions to carry out the provisions of this section. The regulations
of the Secretary of the Treasury shall provide for a process
by which testing laboratories, whether domestic or foreign,
can qualify for certification by the United States Customs
Service by demonstrating the reliability of the procedures used
for determining the type of fur contained in articles intended
for sale or consumption in interstate commerce. Use of a labora-
tory certified by the United States Customs Service to deter-
mine the nature of fur contained in an item to which subsection
(b) applies is not required to avoid liability under this section
but may, in a case in which a person can establish that the
goods imported were tested by such a laboratory and that
the item was not found to be a dog or cat fur product, prove
dispositive in determining whether that person exercised
reasonable care for purposes of paragraph (6).
‘‘(5) REWARD.—The designated authority shall pay a reward
of not less than $500 to any person who furnishes information
that establishes or leads to a civil penalty assessment, debar-
ment, or forfeiture of property for any violation of this section
or any regulation issued under this section.
‘‘(6) AFFIRMATIVE DEFENSE.—Any person accused of a viola-
tion under this section has a defense to any proceeding brought
under this section on account of such violation if that person
establishes by a preponderance of the evidence that the person
exercised reasonable care—
‘‘(A) in determining the nature of the products alleged
to have resulted in such violation; and
‘‘(B) in ensuring that the products were accompanied
by documentation, packaging, and labeling that were
accurate as to the nature of the products.
‘‘(7) COORDINATION
WITH
OTHER
LAWS.—Nothing in this
section shall be construed as superseding or limiting in any
manner the functions and responsibilities of the Secretary of
the Treasury under the customs laws of the United States.
‘‘(d) PUBLICATION OF NAMES OF CERTAIN VIOLATORS.—The des-
ignated authorities shall, at least once each year, publish in the
Federal Register a list of the names of any producer, manufacturer,
supplier, seller, importer, or exporter, whether or not located within
H. R. 4868—67
the customs territory of the United States or subject to the jurisdic-
tion of the United States, against whom a final administrative
determination with respect to the assessment of a civil penalty
for a knowing and intentional or a grossly negligent violation has
been made under this section.
‘‘(e) REPORTS.—In order to enable Congress to engage in active,
continuing oversight of this section, the designated authorities shall
provide the following:
‘‘(1) PLAN FOR ENFORCEMENT.—Within 3 months after the
date of the enactment of this section, the designated authorities
shall submit to Congress a plan for the enforcement of the
provisions of this section, including training and procedures
to ensure that United States Government personnel are
equipped with state-of-the-art technologies to identify potential
dog or cat fur products and to determine the true content
of such products.
‘‘(2) REPORT ON ENFORCEMENT EFFORTS.—Not later than
1 year after the date of the enactment of this section, and
on an annual basis thereafter, the designated authorities shall
submit a report to Congress on the efforts of the United States
Government to enforce the provisions of this section and the
adequacy of the resources to do so. The report shall include
an analysis of the training of United States Government per-
sonnel to identify dog and cat fur products effectively and
to take appropriate action to enforce this section. The report
shall include the findings of the designated authorities as to
whether any government has engaged in a pattern or practice
of support for trade in products the importation of which are
prohibited under this section.’’.
(b) CONFORMING AMENDMENT.—Section 2(d) of the Fur Products
Labeling Act (15 U.S.C. 69(d)) is amended by inserting ‘‘(other
than any dog or cat fur product to which section 308 of the Tariff
Act of 1930 applies)’’ after ‘‘shall not include such articles’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
CHAPTER 4—MISCELLANEOUS PROVISIONS
SEC. 1451. ALTERNATIVE MID-POINT INTEREST ACCOUNTING METHOD-
OLOGY FOR UNDERPAYMENT OF DUTIES AND FEES.
Section 505(c) of the Tariff Act of 1930 (19 U.S.C. 1505(c))
is amended by striking ‘‘For the period beginning on’’ and all
that follows through ‘‘the Secretary may prescribe’’ and inserting
‘‘The Secretary may prescribe’’.
SEC. 1452. EXCEPTION FROM MAKING REPORT OF ARRIVAL AND
FORMAL ENTRY FOR CERTAIN VESSELS.
(a) REPORT OF ARRIVAL AND FORMAL ENTRY OF VESSELS.—
(1) Section 433(a)(1)(C) of the Tariff Act of 1930 (19 U.S.C.
1433(a)(1)(C)) is amended by striking ‘‘bonded merchandise, or’’.
(2) Section 434(a)(3) of the Tariff Act of 1930 (19 U.S.C.
1434(a)(3)) is amended by striking ‘‘bonded merchandise or’’.
(3) Section 4197 of the Revised Statutes of the United States
(46 U.S.C. App. 91) is amended in subsection (a)(2) by striking
‘‘bonded merchandise or’’.
H. R. 4868—68
(b) ADDITIONAL AMENDMENT.—Section 441 of the Tariff Act
of 1930 (19 U.S.C. 1441) is amended by adding at the end the
following new paragraph:
‘‘(6) Any vessel required to anchor at the Belle Isle Anchor-
age in the waters of the Detroit River in the State of Michigan,
for the purposes of awaiting the availability of cargo or berthing
space or for the purpose of taking on a pilot or awaiting pilot
services, or at the direction of the Coast Guard, prior to pro-
ceeding to the Port of Toledo, Ohio, where the vessel makes
entry under section 434 or obtains clearance under section
4197 of the Revised Statutes of the United States.’’.
SEC. 1453. DESIGNATION OF SAN ANTONIO INTERNATIONAL AIRPORT
FOR CUSTOMS PROCESSING OF CERTAIN PRIVATE AIR-
CRAFT ARRIVING IN THE UNITED STATES.
(a) DESIGNATION.—For the 2-year period beginning on the date
of the enactment of this Act, the Commissioner of the Customs
Service shall designate the San Antonio International Airport in
San Antonio, Texas, as an airport at which private aircraft described
in subsection (b) may land for processing by the Customs Service
in accordance with section 122.24(b) of title 19, Code of Federal
Regulations.
(b) PRIVATE AIRCRAFT.—Private aircraft described in this sub-
section are private aircraft that—
(1) arrive in the United States from a foreign area and
have a final destination in the United States of San Antonio
International Airport in San Antonio, Texas; and
(2) would otherwise be required to land for processing
by the Customs Service at an airport listed in section 122.24(b)
of title 19, Code of Federal Regulations, in accordance with
such section.
(c) DEFINITION.—In this section, the term ‘‘private aircraft’’
has the meaning given such term in section 122.23(a)(1) of title
19, Code of Federal Regulations.
(d) REPORT.—The Commissioner of the Customs Service shall
prepare and submit to Congress a report on the implementation
of this section for 2001 and 2002.
SEC. 1454. INTERNATIONAL TRAVEL MERCHANDISE.
Section 555 of the Tariff Act of 1930 (19 U.S.C. 1555) is
amended by adding at the end the following:
‘‘(c) INTERNATIONAL TRAVEL MERCHANDISE.—
‘‘(1) DEFINITIONS.—For purposes of this section—
‘‘(A) the term ‘international travel merchandise’ means
duty-free or domestic merchandise which is placed on board
aircraft on international flights for sale to passengers, but
which is not merchandise incidental to the operation of
a duty-free sales enterprise;
‘‘(B) the term ‘staging area’ is an area controlled by
the proprietor of a bonded warehouse outside of the phys-
ical parameters of the bonded warehouse in which manipu-
lation of international travel merchandise in carts occurs;
‘‘(C) the term ‘duty-free merchandise’ means merchan-
dise on which the liability for payment of duty or tax
imposed by reason of importation has been deferred
pending exportation from the customs territory;
H. R. 4868—69
‘‘(D) the term ‘manipulation’ means the repackaging,
cleaning, sorting, or removal from or placement on carts
of international travel merchandise; and
‘‘(E) the term ‘cart’ means a portable container holding
international travel merchandise on an aircraft for expor-
tation.
‘‘(2) BONDED WAREHOUSE FOR INTERNATIONAL TRAVEL MER-
CHANDISE.—The Secretary shall by regulation establish a sepa-
rate class of bonded warehouse for the storage and manipula-
tion of international travel merchandise pending its placement
on board aircraft departing for foreign destinations.
‘‘(3) RULES FOR TREATMENT OF INTERNATIONAL TRAVEL MER-
CHANDISE
AND
BONDED
WAREHOUSES
AND
STAGING
AREAS.—
(A) The proprietor of a bonded warehouse established for the
storage and manipulation of international travel merchandise
shall give a bond in such sum and with such sureties as
may be approved by the Secretary of the Treasury to secure
the Government against any loss or expense connected with
or arising from the deposit, storage, or manipulation of mer-
chandise in such warehouse. The warehouse proprietor’s bond
shall also secure the manipulation of international travel mer-
chandise in a staging area.
‘‘(B) A transfer of liability from the international carrier
to the warehouse proprietor occurs when the carrier assigns
custody of international travel merchandise to the warehouse
proprietor for purposes of entry into warehouse or for manipula-
tion in the staging area.
‘‘(C) A transfer of liability from the warehouse proprietor
to the international carrier occurs when the bonded warehouse
proprietor assigns custody of international travel merchandise
to the carrier.
‘‘(D) The Secretary is authorized to promulgate regulations
to require the proprietor and the international carrier to keep
records of the disposition of any cart brought into the United
States and all merchandise on such cart.’’.
SEC. 1455. CHANGE IN RATE OF DUTY OF GOODS RETURNED TO THE
UNITED STATES BY TRAVELERS.
Subchapter XVI of chapter 98 is amended as follows:
(1) Subheading 9816.00.20 is amended—
(A) effective January 1, 2000, by striking ‘‘10 percent’’
each place it appears and inserting ‘‘5 percent’’;
(B) effective January 1, 2001, by striking ‘‘5 percent’’
each place it appears and inserting ‘‘4 percent’’; and
(C) effective January 1, 2002, by striking ‘‘4 percent’’
each place it appears and inserting ‘‘3 percent’’.
(2) Subheading 9816.00.40 is amended—
(A) effective January 1, 2000, by striking ‘‘5 percent’’
each place it appears and inserting ‘‘3 percent’’;
(B) effective January 1, 2001, by striking ‘‘3 percent’’
each place it appears and inserting ‘‘2 percent’’; and
(C) effective January 1, 2002, by striking ‘‘2 percent’’
each place it appears and inserting ‘‘1.5 percent’’.
H. R. 4868—70
SEC. 1456. TREATMENT OF PERSONAL EFFECTS OF PARTICIPANTS IN
INTERNATIONAL ATHLETIC EVENTS.
(a) IN GENERAL.—Subchapter XVII of chapter 98 is amended
by inserting in numerical sequence the following new heading:
‘‘
9817.60.00
Any of the following articles not
intended for sale or distribution
to the public: personal effects of
aliens who are participants in,
officials of, or accredited mem-
bers of delegations to, an inter-
national athletic event held in
the United States, such as the
Olympics and Paralympics, the
Goodwill Games, the Special
Olympics 
World 
Games, 
the
World Cup Soccer Games, or
any similar international ath-
letic event as the Secretary of
the Treasury may determine,
and of persons who are imme-
diate family members of or serv-
ants to any of the foregoing per-
sons; equipment and materials
imported in connection with any
such foregoing event by or on
behalf of the foregoing persons
or the organizing committee of
such an event, articles to be
used in exhibitions depicting the
culture of a country partici-
pating in such an event; and, if
consistent with the foregoing,
such other articles as the Sec-
retary of the Treasury may
allow .............................................
......................
Free
Free
’’.
(b) TAXES, FEES, INSPECTION.—The U.S. Notes to chapter XVII
of chapter 98 are amended by adding at the end the following
new note:
‘‘6. Any article exempt from duty under heading 9817.60.00 shall
be free of taxes and fees that may otherwise be applicable, but
shall not be free or otherwise exempt or excluded from routine
or other inspections as may be required by the Customs Service.’’.
(b) EFFECTIVE DATE.—The amendments made by this section
apply to goods entered, or withdrawn from warehouse, for consump-
tion, on or after the date of the enactment of this Act.
(c) 
TERMINATION
OF
TEMPORARY
PROVISIONS.—Heading
9902.98.08 shall, notwithstanding any provision of such heading,
cease to be effective on the date of the enactment of this Act.
SEC. 1457. COLLECTION OF FEES FOR CUSTOMS SERVICES FOR
ARRIVAL OF CERTAIN FERRIES.
Section 13031(b)(1)(A)(iii) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(b)(1)(A)(iii)) is amended
to read as follows:
‘‘(iii) the arrival of a ferry, except for a ferry whose
operations begin on or after August 1, 1999, and that
operates south of 27 degrees latitude and east of 89
degrees longitude; or’’.
SEC. 1458. ESTABLISHMENT OF DRAWBACK BASED ON COMMERCIAL
INTERCHANGEABILITY 
FOR 
CERTAIN 
RUBBER 
VUL-
CANIZATION ACCELERATORS.
(a) IN GENERAL.—The United States Customs Service shall
treat the chemical N-cyclohexyl-2-benzothiazolesulfenamide and the
H. R. 4868—71
chemical N-tert-Butyl-2-benzothiazolesulfenamide as ‘‘commercially
interchangeable’’ within the meaning of section 313(j)(2) of the
Tariff Act of 1930 (19 U.S.C. 1313(j)(2)) for purposes of permitting
drawback under section 313 of the Tariff Act of 1930 (19 U.S.C.
1313.).
(b) APPLICABILITY.—Subsection (a) shall apply with respect to
any entry, or withdrawal from warehouse for consumption, of the
chemical N-cyclohexyl-2-benzothiazolesulfenamide before, on, or
after the date of the enactment of this Act, that is eligible for
drawback within the time period provided in section 313(j)(2)(B)
of the Tariff Act of 1930 (19 U.S.C. 1313(j)(2)(B)).
SEC. 1459. CARGO INSPECTION.
The Commissioner of Customs is authorized to establish a
fee-for-service agreement for a period of not less than 2 years,
renewable thereafter on an annual basis, at Fort Lauderdale-Holly-
wood International Airport. The agreement shall provide personnel
and infrastructure necessary to conduct cargo clearance, inspection,
or other customs services as needed to accommodate carriers using
this airport. When such servcies have been provided on a fee-
for-service basis for at least 2 years and the commercial consump-
tion entry level reaches 29,000 entries per year, the Commissioner
of Customs shall continue to provide cargo clearance, inspection
or other customs services, and no charges, other than those fees
authorized by section 13031(a) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(a)), may be collected
for those services.
SEC. 1460. TREATMENT OF CERTAIN MULTIPLE ENTRIES OF MERCHAN-
DISE AS SINGLE ENTRY.
(a) IN GENERAL.—Section 484 of the Tariff Act of 1930 (19
U.S.C. 1484) is amended by adding at the end the following:
‘‘(j) TREATMENT
OF MULTIPLE ENTRIES
OF MERCHANDISE
AS
SINGLE TRANSACTION.—In the case of merchandise that is purchased
and invoiced as a single entity but—
‘‘(1) is shipped in an unassembled or disassembled condition
in separate shipments due to the size or nature of the merchan-
dise, or
‘‘(2) is shipped in separate shipments due to the inability
of the carrier to include all of the merchandise in a single
shipment (at the instruction of the carrier),
the Customs Service may, upon application by an importer in
advance, treat such separate shipments for entry purposes as a
single transaction.’’.
(b) REGULATIONS.—Not later than 6 months after the date
of the enactment of this Act, the Secretary of the Treasury shall
issue regulations to carry out section 484(j) of the Tariff Act of
1930, as added by subsection (a).
SEC. 1461. REPORT ON CUSTOMS PROCEDURES.
(a) REVIEW AND REPORT.—The Secretary of the Treasury shall—
(1) review, in consultation with United States importers
and other interested parties, including independent third par-
ties selected by the Secretary for the purpose of conducting
such review, customs procedures and related laws and regula-
tions applicable to goods and commercial conveyances entering
the United States; and
H. R. 4868—72
(2) report to the Congress, not later than 180 days after
the date of the enactment of this Act, on changes that should
be made to reduce reporting and record retention requirements
for commercial parties, specifically addressing changes needed
to—
(A) separate fully and remove the linkage between
data reporting required to determine the admissibility and
release of goods and data reporting for other purposes
such as collection of revenue and statistics;
(B) reduce to a minimum data required for determining
the admissibility of goods and release of goods, consistent
with the protection of public health, safety, or welfare,
or achievement of other policy goals of the United States;
(C) eliminate or find more efficient means of collecting
data for other purposes that are unnecessary, overly
burdensome, or redundant; and
(D) enable the implementation, as soon as possible,
of the import activity summary statement authorized by
section 411 of the Tariff Act of 1930 (19 U.S.C. 1411)
as a means of—
(i) fully separating and removing the linkage
between the functions of collecting revenue and statis-
tics and the function of determining the admissibility
of goods that must be performed for each shipment
of goods entering the United States; and
(ii) allowing for periodic, consolidated filing of data
not required for determinations of admissibility.
(b) SPECIFIC MATTERS.—In preparing the report required by
subsection (a), the Secretary of the Treasury shall specifically report
on the following:
(1) Import procedures, including specific data items col-
lected, that are required prior and subsequent to the release
of goods or conveyances, identifying the rationale and legal
basis for each procedure and data requirement, uses of data
collected, and procedures or data requirements that could be
eliminated, or deferred and consolidated into periodic reports
such as the import activity summary statement.
(2) The identity of data and factors necessary to determine
whether physical inspections should be conducted.
(3) The cost of data collection.
(4) Potential alternative sources and methodologies for col-
lecting data, taking into account the costs and other con-
sequences to importers, exporters, carriers, and the Government
of choosing alternative sources.
(5) Recommended changes to the law, regulations of any
agency, or other measures that would improve the efficiency
of procedures and systems of the United States Government
for regulating international trade, without compromising the
effectiveness of procedures and systems required by law.
SEC. 1462. DRAWBACKS FOR RECYCLED MATERIALS.
(a) IN GENERAL.—Section 313 of the Tariff Act of 1930 (19
U.S.C. 1313) is amended by adding at the end the following new
subsection:
‘‘(x) DRAWBACKS
FOR RECOVERED MATERIALS.—For purposes
of subsections (a), (b), and (c), the term ‘destruction’ includes a
H. R. 4868—73
process by which materials are recovered from imported merchan-
dise or from an article manufactured from imported merchandise.
In determining the amount of duties to be refunded as drawback
to a claimant under this subsection, the value of recovered materials
(including the value of any tax benefit or royalty payment) that
accrues to the drawback claimant shall be deducted from the value
of the imported merchandise that is destroyed, or from the value
of the merchandise used, or designated as used, in the manufacture
of the article.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to drawback claims filed on or after the date of the
enactment of this Act.
SEC. 1463. PRESERVATION OF CERTAIN REPORTING REQUIREMENTS.
Section 3003(a)(1) of the Federal Reports Elimination and
Sunset Act of 1995 (31 U.S.C. 1113 note) does not apply to any
report required to be submitted under any of the following provi-
sions of law:
(1) Section 163 of the Trade Act of 1974 (19 U.S.C. 2213).
(2) Section 181 of the Trade Act of 1974 (19 U.S.C. 2241).
SEC. 1464. IMPORTATION OF GUM ARABIC.
(a) FINDINGS.—The Congress finds the following:
(1) The Republic of the Sudan produces 60 percent of
the world’s supply of gum arabic in raw form and has a virtual
monopoly on the world’s supply of the highest grade of gum
arabic.
(2) The President imposed comprehensive sanctions against
Sudan on November 3, 1997, under Executive Order No. 13067.
(3) The Secretary of the Treasury, upon recommendation
of the Secretary of State, has issued limited licenses each
year since the imposition of sanctions against Sudan under
Executive Order No. 13067 to permit United States gum arabic
processors to import gum arabic in raw form from Sudan due
to a lack of alternative sources in other countries.
(4) The United States gum arabic processing industry con-
sists of three small companies whose existence is threatened
by the comprehensive sanctions in effect against Sudan.
(5) The United States gum arabic processing industry is
working with the United States Agency for International
Development to develop alternative sources of gum arabic in
raw form in countries that are not subject to sanctions, but
alternative sources of the highest grade of gum arabic in raw
form are not currently available.
(b) LICENSE APPLICATIONS
TO IMPORT GUM ARABIC FROM
SUDAN.—Notwithstanding any other provision of law, the Secretary
of the Treasury and the Secretary of State, in consultation with
the Secretary of Commerce and the heads of other appropriate
agencies—
(1) shall consider promptly any license application by a
United States gum arabic processor to import gum arabic in
raw form from the Republic of the Sudan; and
(2) in reviewing such license applications by United States
gum arabic processors, shall consider whether adequate
commercial quantities of the highest grade of gum arabic in
raw form are available from countries not subject to United
States sanctions in order to allow such United States processors
of gum arabic to remain in business.