I
103D CONGRESS
1ST SESSION
H. R. 700
To modernize and simplify the administration of the customs laws.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 27, 1993
Mr. GIBBONS (for himself and Mr. CRANE) introduced the following bill; which
was referred to the Committee on Ways and Means
JUNE 8, 1993
Additional sponsors: Mr. KOPETSKI, Mr. JEFFERSON, Ms. PELOSI, Mr.
LANTOS, and Mr. TORRES
A BILL
To modernize and simplify the administration of the customs
laws.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CON-
TENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Customs Modernization and Informed Compliance Act’’.
(b) REFERENCE.—Whenever in title I, II, or III of
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a part, section, sub-
section, or other provision, the reference shall be consid-
ered to be made a part, section, subsection, or other provi-
sion of the Tariff Act of 1930 (19 U.S.C. 1202 et seq.).
(c) TABLE OF CONTENTS.—
Sec. 1. Short title; reference; table of contents.
TITLE I—IMPROVEMENTS IN CUSTOMS ENFORCEMENT
Sec. 101. Penalties for violations of arrival, reporting, entry, and clearance re-
quirements.
Sec. 102. Failure to declare.
Sec. 103. Customs testing laboratories; detention of merchandise.
Sec. 104. Recordkeeping.
Sec. 105. Examination of books and witnesses.
Sec. 106. Judicial enforcement.
Sec. 107. Review of protests.
Sec. 108. Repeal of provision relating to reliquidation on account of fraud.
Sec. 109. Penalties relating to manifests.
Sec. 110. Unlawful unlading or transshipment.
Sec. 111. Penalties for fraud, gross negligence, and negligence; prior disclosure.
Sec. 112. Penalties for false drawback claims.
Sec. 113. Interpretive rulings and decisions; public information.
Sec. 114. Seizure authority.
TITLE II—NATIONAL CUSTOMS AUTOMATION PROGRAM
Sec. 201. National Customs Automation Program.
Sec. 202. Drawback and refunds.
Sec. 203. Effective date of rates of duty.
Sec. 204. Definitions.
Sec. 205. Manifests.
Sec. 206. Invoice contents.
Sec. 207. Entry of merchandise.
Sec. 208. Appraisement and other procedures.
Sec. 209. Voluntary reliquidations.
Sec. 210. Appraisement regulations.
Sec. 211. Limitation on liquidation.
Sec. 212. Payment of duties and fees.
Sec. 213. Abandonment and damage.
Sec. 214. Customs officer’s immunity.
Sec. 215. Protests.
Sec. 216. Refunds and errors.
Sec. 217. Bonds and other security.
Sec. 218. Customhouse brokers.
Sec. 219. Conforming amendments.
TITLE III—MISCELLANEOUS AMENDMENTS TO THE TARIFF ACT
OF 1930
Sec. 301. Report of arrival.
Sec. 302. Entry of vessels.
Sec. 303. Unlawful return of foreign vessel papers.
Sec. 304. Vessels not required to enter.
Sec. 305. Unlading.
Sec. 306. Declarations.
Sec. 307. General orders.
Sec. 308. Unclaimed merchandise.
Sec. 309. Destruction of merchandise.
Sec. 310. Proceeds of sale.
Sec. 311. Entry under regulations.
Sec. 312. American trademarks.
Sec. 313. Seizure.
Sec. 314. Customs Forfeiture Fund.
Sec. 315. Limitation on actions.
Sec. 316. Collection of fees on behalf of other agencies.
Sec. 317. Authority to settle claims.
Sec. 318. Use of private collection agencies.
TITLE IV—MISCELLANEOUS PROVISIONS AND CONSEQUENTIAL
AND CONFORMING AMENDMENTS TO OTHER LAWS
Sec. 401. Amendments to the Harmonized Tariff Schedule.
Sec. 402. Amendment to the Internal Revenue Code of 1986.
Sec. 403. Amendments to title 28, United States Code.
Sec. 404. Amendments to the Revised Statutes of the United States.
Sec. 405. Amendments to title 18, United States Code.
Sec. 406. Amendment to the Act to Prevent Pollution from Ships.
Sec. 407. Amendments to the Act of November 6, 1966.
Sec. 408. Repeal of obsolete provisions of law.
Sec. 409. Reports to Congress.
Sec. 410. Applicability of amendments to entry or withdrawal of goods.
TITLE I—IMPROVEMENTS IN
CUSTOMS ENFORCEMENT
SEC. 101. PENALTIES FOR VIOLATIONS OF ARRIVAL, RE-
PORTING, ENTRY, AND CLEARANCE REQUIRE-
MENTS.
Section 436 (19 U.S.C. 1436) is amended—
(1) by amending subsection (a)—
(A) by striking out ‘‘433’’ in paragraph (1)
and inserting ‘‘431, 433, or 434 of this Act or
section
4197
of
the
Revised
Statutes
of
the United States (46 U.S.C. App. 91)’’,
(B) by amending paragraph (2) to read as
follows:
‘‘(2) to present or transmit, electronically or
otherwise, any forged, altered, or false document,
paper information, data or manifest to the Customs
Service under section 431(e), 433(d), or 434 of this
Act or section 4197 of the Revised Statutes of the
United States (46 U.S.C. App. 91) without revealing
the facts; or’’, and
(C) by amending paragraph (3) to read as
follows:
‘‘(3) to fail to make entry or to obtain clearance
as required by section 434 or 644 of this Act, sec-
tion 4197 of the Revised Statutes of the United
States (46 U.S.C. App. 91), or section 1109 of the
Federal Aviation Act of 1958 (49 U.S.C. App.
1509); or’’; and
(2) by striking out ‘‘AND ENTRY’’ in the sec-
tion heading and inserting ‘‘ENTRY, AND CLEAR-
ANCE’’.
SEC. 102. FAILURE TO DECLARE.
Section 497(a) (19 U.S.C. 1497(a)) is amended—
(1) by inserting ‘‘or transmitted’’ after ‘‘made’’
in paragraph (1)(A); and
(2) by amending paragraph (2)(A) to read as
follows:
‘‘(A) if the article is a controlled sub-
stance, either $500 or an amount equal to
1,000 percent of the value of the article, which-
ever amount is greater; and’’.
SEC. 103. CUSTOMS TESTING LABORATORIES; DETENTION
OF MERCHANDISE.
(a) AMENDMENT.—Section 499 (19 U.S.C. 1499) is
amended to read as follows:
‘‘SEC. 499. EXAMINATION OF MERCHANDISE.
‘‘(a) ENTRY EXAMINATION.—
‘‘(1) IN GENERAL.—Imported merchandise that
is required by law or regulation to be inspected, ex-
amined, or appraised shall not be delivered from cus-
toms custody (except under such bond or other secu-
rity as may be prescribed by the Secretary to assure
compliance with all applicable laws, regulations, and
instructions which the Secretary or the Customs
Service is authorized to enforce) until the merchan-
dise has been inspected, appraised, or examined and
is reported by the Customs Service to have been
truly and correctly invoiced and found to comply
with the requirements of the laws of the United
States.
‘‘(2) EXAMINATION.—The Customs Service—
‘‘(A) shall designate the packages or quan-
tities of merchandise covered by any invoice or
entry which are to be opened and examined for
the purpose of appraisement or otherwise;
‘‘(B) shall order such packages or quan-
tities to be sent to such place as is designated
by the Secretary by regulation for such pur-
pose;
‘‘(C) may require such additional packages
or quantities as the Secretary considers nec-
essary for such purpose; and
‘‘(D) shall inspect a sufficient number of
shipments, and shall examine a sufficient num-
ber of entries, to ensure compliance with the
laws enforced by the Customs Service.
‘‘(3) UNSPECIFIED ARTICLES.—If any package
contains any article not specified in the invoice or
entry and, in the opinion of the Customs Service, the
article was omitted from the invoice or entry—
‘‘(A) with fraudulent intent on the part of
the seller, shipper, owner, agent, importer of
record, or entry filer, the contents of the entire
package in which such article is found shall be
subject to seizure; or
‘‘(B) without fraudulent intent, the value
of the article shall be added to the entry and
the duties, fees, and taxes thereon paid accord-
ingly.
‘‘(4) DEFICIENCY.—If a deficiency is found in
quantity, weight, or measure in the examination of
any package, the person finding the deficiency shall
make a report thereof to the Customs Service. The
Customs Service shall make allowance for the defi-
ciency in the liquidation of duties.
‘‘(5) INFORMATION REQUIRED FOR RELEASE.—
If an examination is conducted, any information re-
quired for release shall be provided, either electroni-
cally or in paper form, to the Customs Service at the
port of examination. The absence of such informa-
tion does not limit the authority of the Customs
Service to conduct an examination.
‘‘(b) TESTING LABORATORIES.—
‘‘(1) ACCREDITATION
OF
PRIVATE
TESTING
LABORATORIES.—The Customs Service shall estab-
lish and implement a procedure, under regulations
promulgated by the Secretary, for accrediting pri-
vate laboratories within the United States which
may be used to perform tests (that would otherwise
be performed by Customs Service laboratories) to es-
tablish the characteristics, quantities, or composition
of imported merchandise. Such regulations—
‘‘(A) shall establish the conditions required
for the laboratories to receive and maintain ac-
creditation for purposes of this subsection;
‘‘(B) shall establish the conditions regard-
ing the suspension and revocation of accredita-
tion, which may include the imposition of a
monetary penalty not to exceed $100,000 and
such penalty is in addition to the recovery, from
a gauger or laboratory accredited under para-
graph (1), of any loss of revenue that may have
occurred, but the Customs Service—
‘‘(i) may seek to recover lost revenue
only in cases where the gauger or labora-
tory intentionally falsified the analysis or
gauging report in collusion with the im-
porter; and
‘‘(ii) shall neither assess penalties nor
seek to recover lost revenue because of a
good faith difference of professional opin-
ion; and
‘‘(C) may provide for the imposition of a
reasonable charge for accreditation and periodic
reaccreditation.
The collection of any charge for accreditation and
reaccreditation under this section is not prohibited
by section 13031(e)(6) of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C.
58c(e)(6)).
‘‘(2) APPEAL OF ADVERSE ACCREDITATION DE-
CISIONS.—A laboratory applying for accreditation,
or that is accredited, under this section may contest
any decision or order of the Customs Service deny-
ing, suspending, or revoking accreditation, or impos-
ing a monetary penalty, by commencing an action in
accordance with chapter 169 of title 28, United
States Code, in the Court of International Trade
within 60 days after issuance of the decision or
order.
‘‘(3) 
TESTING
BY
ACCREDITED
LABORA-
TORIES.—When requested by an importer of record
of merchandise, the Customs Service shall authorize
the release to the importer of a representative sam-
ple of the merchandise for testing, at the expense of
the importer, by a laboratory accredited under para-
graph (1). The testing results from a laboratory ac-
credited under paragraph (1) that are submitted by
an importer of record with respect to merchandise in
an entry shall, in the absence of testing results ob-
tained from a Customs Service laboratory, be accept-
ed by the Customs Service if the importer of record
certifies that the sample tested was taken from the
merchandise in the entry. Nothing in this subsection
shall be construed to limit in any way or preclude
the authority of the Customs Service to test or ana-
lyze any sample or merchandise independently.
‘‘(4) AVAILABILITY
OF
TESTING
PROCEDURE,
METHODOLOGIES, AND INFORMATION.—Testing pro-
cedures and methodologies used by the Customs
Service, and information resulting from any testing
conducted by the Customs Service, shall be made
available as follows:
‘‘(A) Testing procedures and methodologies
shall be made available upon request to any
person unless the procedures or methodologies
are—
‘‘(i) proprietary to the holder of a
copyright or patent related to such proce-
dures or methodologies, or
‘‘(ii) developed by the Customs Serv-
ice for enforcement purposes.
‘‘(B) Information resulting from testing
shall be made available upon request to the im-
porter of record and any agent thereof unless
the information—
‘‘(i) is proprietary to the holder of a
copyright or patent related to the proce-
dures or methodologies; or
‘‘(ii) reveals information developed by
the Customs Service for enforcement pur-
poses.
‘‘(5) MISCELLANEOUS
PROVISIONS.—For pur-
poses of this subsection—
‘‘(A) any reference to a private laboratory
includes a reference to a private gauger; and
‘‘(B) accreditation of private laboratories
extends only to the performance of functions by
such laboratories that are within the scope of
those responsibilities for determinations of the
elements relating to admissibility, quantity,
composition, or characteristics of imported mer-
chandise that are vested in, or delegated to, the
Customs Service.
‘‘(c) DETENTIONS.—Except in the case of merchan-
dise with respect to which the determination of admissibil-
ity is vested in an agency other than the Customs Service,
the following apply:
‘‘(1) IN
GENERAL.—Within the 5-day period
(excluding weekends and holidays) following the date
on which merchandise is presented for customs ex-
amination, the Customs Service shall decide whether
to release or detain the merchandise. Merchandise
which is not released within such 5-day period shall
be considered to be detained merchandise.
‘‘(2) NOTICE
OF
DETENTION.—The Customs
Service shall issue a notice to the importer or other
party having an interest in detained merchandise no
later than 5 days, excluding weekends and holidays,
after the decision to detain the merchandise is made.
The notice shall advise the importer or other inter-
ested party of—
‘‘(A) the initiation of the detention;
‘‘(B) the specific reason for the detention;
‘‘(C) the anticipated length of the deten-
tion;
‘‘(D) the nature of the tests or inquiries to
be conducted; and
‘‘(E) the nature of any information which,
if supplied to the Customs Service, may acceler-
ate the disposition of the detention.
‘‘(3) TESTING RESULTS.—Upon request by the
importer or other party having an interest in de-
tained merchandise, the Customs Service shall pro-
vide the party with copies of the results of any test-
ing conducted by the Customs Service on the mer-
chandise and a description of the testing procedures
and methodologies (unless such procedures or meth-
odologies are proprietary to the holder of a copyright
or patent or were developed by the Customs Service
for enforcement purposes). The results and test de-
scription shall be in sufficient detail to permit the
duplication and analysis of the testing and the re-
sults.
‘‘(4) SEIZURE AND FORFEITURE.—If otherwise
provided by law, detained merchandise may be seized
and forfeited.
‘‘(5) EFFECT OF FAILURE TO MAKE DETER-
MINATION.—
‘‘(A) The failure by the Customs Service to
make a final determination with respect to the
admissibility of detained merchandise within 30
days after the merchandise has been presented
for customs examination, or such longer period
if specifically authorized by law, shall be treated
as a decision of the Customs Service to exclude
the merchandise for purposes of section
514(a)(4).
‘‘(B) For purposes of section 1581 of title
28, United States Code, a protest against the
decision to exclude the merchandise which has
not been allowed or denied in whole or in part
before the 30th day after the day on which the
protest was filed shall be treated as having been
denied on such 30th day.
‘‘(C) Notwithstanding section 2639 of title
28, United States Code, once an action respect-
ing a detention is commenced, unless the Cus-
toms Service establishes by a preponderance of
the evidence that an admissibility decision has
not been reached for good cause, the court shall
grant the appropriate relief which may include,
but is not limited to, an order to cancel the de-
tention and release the merchandise.’’.
(b) EXISTING LABORATORIES.—Accreditation under
section 499(b) of the Tariff Act of 1930 (as added by sub-
section (a)) is not required for any private laboratory (in-
cluding any gauger) that was accredited or approved by
the Customs Service as of the day before the date of the
enactment of this Act; but any such laboratory is subject
to reaccreditation under the provisions of such section and
the regulations promulgated thereunder.
SEC. 104. RECORDKEEPING.
Section 508 (19 U.S.C. 1508) is amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) REQUIREMENTS.—Any—
‘‘(1) owner, importer, consignee, importer of
record, entry filer, or other party who—
‘‘(A) imports, files a drawback claim, or
transports or stores merchandise carried or held
under bond, or
‘‘(B) knowingly causes the importation or
transportation or storage of merchandise car-
ried or held under bond into or from the cus-
toms territory of the United States;
‘‘(2) agent of any party described in paragraph
(1); or
‘‘(3) person whose activities require the filing of
a declaration or entry, or both;
shall make, keep, and render for examination and inspec-
tion such records (including, but not limited to, state-
ments, declarations, documents and electronically gen-
erated or machine readable data) which—
‘‘(A) pertain to any such activity, or to the in-
formation contained in the documents, records or
electronically generated or machine readable data re-
quired by this Act in connection with such activity;
and
‘‘(B) are normally kept in the ordinary course
of business.’’; and
(2) by amending subsection (c) to read as fol-
lows:
‘‘(c) PERIOD OF TIME.—The records required by sub-
sections (a) and (b) shall be kept for such period of time,
not to exceed 5 years from the date of entry or expor-
tation, as appropriate, as the Secretary shall prescribe; ex-
cept that records for any drawback claim shall be kept
until the 3rd anniversary of the date of payment of the
claim.’’.
SEC. 105. EXAMINATION OF BOOKS AND WITNESSES.
Section 509 (19 U.S.C. 1509) is amended as follows:
(1) Subsection (a) is amended—
(A) by striking out ‘‘and taxes’’ wherever
it appears and inserting ‘‘, fees and taxes’’;
(B) by inserting ‘‘or electronically gen-
erated or machine readable data,’’ after ‘‘other
document,’’ in paragraph (1);
(C) by striking out the semicolon at the
end of paragraph (1) and inserting ‘‘, except
that—
‘‘(A) if such record, statement, declaration,
document, or electronically stored or transmit-
ted information or data is required by law or
regulation for the entry of the merchandise
(whether or not the Customs Service required
its presentation at the time of entry) it shall be
provided to the Customs Service within a rea-
sonable time after demand for its production is
made, taking into consideration the number,
type, and age of the item demanded; and
‘‘(B) if a person of whom demand is made
under subparagraph (A) fails to comply with
the demand, the person may be subject to pen-
alty under subsection (g);’’;
(D) by amending that part of paragraph
(2) that precedes subparagraph (D) to read as
follows:
‘‘(2) summon, upon reasonable notice—
‘‘(A) the person who—
‘‘(i) imported, or knowingly caused to
be imported, merchandise into the customs
territory of the United States,
‘‘(ii) exported merchandise, or know-
ingly caused merchandise to be exported,
to Canada,
‘‘(iii) transported or stored merchan-
dise that was or is carried or held under
customs bond, or knowingly caused such
transportation or storage, or
‘‘(iv) filed a declaration, entry, or
drawback claim with the Customs Service;
‘‘(B) any officer, employee, or agent of any
person described in subparagraph (A);
‘‘(C) any person having possession, custody
or care of records (including electronically gen-
erated or machine readable data) relating to the
importation or other activity described in sub-
paragraph (A); or’’; and
(E) by striking out the comma at the end
of subparagraph (D) and inserting a semicolon.
(2) Subsections (b) and (c) are redesignated as
subsections (c) and (d), respectively.
(3) The following new subsection is inserted
after subsection (a):
‘‘(b) REGULATORY AUDIT PROCEDURES.—
‘‘(1) In conducting a regulatory audit under
this section (which does not include a quantity ver-
ification for a customs bonded warehouse or general
purpose foreign trade zone), the Customs Service
auditor shall provide the person being audited, in
advance of the audit, with a reasonable estimate of
the time to be required for the audit. If in the
course of an audit it becomes apparent that addi-
tional time will be required, the Customs Service
auditor shall immediately provide a further estimate
of such additional time.
‘‘(2) Before commencing an audit, the Customs
Service auditor shall inform the party to be audited
of his right to an entry conference at which time the
purpose will be explained and an estimated termi-
nation date set. Upon completion of on-site audit ac-
tivities, the Customs Service auditor shall schedule a
closing conference to explain the preliminary results
of the audit.
‘‘(3) Except as provided in paragraph (5), if the
estimated or actual termination date for an audit
passes without the Customs Service auditor provid-
ing a closing conference to explain the results of the
audit, the person being audited may petition in writ-
ing for such a conference to the appropriate regional
commissioner, who, upon receipt of such a request,
shall provide for such a conference to be held within
15 days after the date of receipt.
‘‘(4) Except as provided in paragraph (5), the
Customs Service auditor shall complete the formal
written audit report within 90 days following the
closing conference unless the appropriate regional
commissioner provides written notice to the person
being audited of the reason for any delay and the
anticipated completion date. After application of any
exemption contained in section 552 of title 5, United
States Code, a copy of the formal written audit re-
port shall be sent to the person audited no later
than 30 days following completion of the report.
‘‘(5) Paragraphs (3) and (4) shall not apply
after the Customs Service commences a formal in-
vestigation with respect to the issue involved.’’.
(4) Subsection (d) (as redesignated by para-
graph (2)) is amended—
(A) by striking out ‘‘or documents’’ in
paragraph (1)(A) and inserting ‘‘documents, or
electronically generated or machine readable
data’’;
(B) by inserting ‘‘, unless such custom-
house broker is the importer of record on an
entry’’ after ‘‘broker’’ in paragraph (1)(C)(i);
(C) by striking out ‘‘import’’ in each of
paragraphs (2)(B) and (4)(B);
(D) by inserting ‘‘described in section
508’’ after ‘‘transactions’’ in each of para-
graphs (2)(B) and (4)(B); and
(E) by inserting ‘‘, fees,’’ after ‘‘duties’’ in
paragraph (4)(A).
(5) The following new subsections are added at
the end thereof:
‘‘(e) LIST OF RECORDS AND INFORMATION.—The
Customs Service shall identify and publish a list of the
records or entry information that is required to be main-
tained and produced under subsection (a)(1)(A).
‘‘(f) RECORDKEEPING COMPLIANCE PROGRAM.—
‘‘(1) IN GENERAL.—After consultation with the
importing community, the Customs Service shall by
regulation establish a recordkeeping compliance pro-
gram which the parties listed in section 508(a) may
participate in after being certified by the Customs
Service under paragraph (2). Participation in the
recordkeeping compliance program by recordkeepers
is voluntary.
‘‘(2) CERTIFICATION.—A recordkeeper may be
certified as a participant in the recordkeeping com-
pliance program after meeting the general record-
keeping requirements established under the program
or after negotiating an alternative program suited to
the needs of the recordkeeper and the Customs Serv-
ice. Certification requirements shall take into ac-
count the size and nature of the importing business
and the volume of imports. In order to be certified,
the recordkeeper must be able to demonstrate that
it—
‘‘(A) understands the legal requirements
for recordkeeping, including the nature of the
records required to be maintained and produced
and the time periods involved;
‘‘(B) has in place procedures to explain the
recordkeeping requirements to those employees
who are involved in the preparation, mainte-
nance, and production of required records;
‘‘(C) has in place procedures regarding the
preparation 
and 
maintenance 
of 
required
records, and the production of such records to
the Customs Service;
‘‘(D) has designated a dependable individ-
ual or individuals to be responsible for record-
keeping compliance under the program and
whose duties include maintaining familiarity
with the recordkeeping requirements of the
Customs Service;
‘‘(E) has a record maintenance procedure
approved by the Customs Service for original
records, or, if approved by the Customs Service,
for alternative records or recordkeeping formats
other than the original records; and
‘‘(F) has procedures for notifying the Cus-
toms Service of occurrences of variances to, and
violations of, the requirements of the record-
keeping compliance program or the negotiated
alternative programs, and for taking corrective
action when notified by the Customs Service of
violations or problems regarding such program.
‘‘(g) PENALTIES.—
‘‘(1) DEFINITION.—For purposes of this sub-
section, the term ‘information’ means any record,
statement, declaration, document, or electronically
stored or transmitted information or data referred to
in subsection (a)(1)(A).
‘‘(2) EFFECTS OF FAILURE TO COMPLY WITH
DEMAND.—Except as provided in paragraph (4), if
a person fails to comply with a lawful demand for
information under subsection (a)(1)(A) the following
provisions apply:
‘‘(A) If the failure to comply is a result of
the willful failure of the person to maintain,
store, or retrieve the demanded information,
such person shall be subject to a penalty, for
each release of merchandise, not to exceed
$100,000, or an amount equal to 75 percent of
the appraised value of the merchandise, which-
ever amount is less.
‘‘(B) If the failure to comply is a result of
the negligence of the person in maintaining,
storing, or retrieving the demanded informa-
tion, such person shall be subject to a penalty,
for each release of merchandise, not to exceed
$10,000, or an amount equal to 40 percent of
the appraised value of the merchandise, which-
ever amount is less.
‘‘(C) In addition to any penalty imposed
under subparagraph (A) or (B) regarding de-
manded information, if such information related
to the eligibility of merchandise for a column 1
special rate of duty under title I, the entry of
such merchandise—
‘‘(i) if unliquidated, shall be liquidated
at the applicable column 1 general rate of
duty; or
‘‘(ii) if liquidated within the 2-year
period preceding the date of the demand,
shall be reliquidated, notwithstanding the
time limitation in section 514 or 520, at
the applicable column 1 general rate of
duty;
except that any liquidation or reliquidation
under clause (i) or (ii) shall be at the applicable
column 2 rate of duty if the Customs Service
demonstrates that the merchandise should be
dutiable at such rate.
‘‘(3) AVOIDANCE
OF
PENALTY.—No penalty
may be assessed under this subsection if the person
can show—
‘‘(A) that the loss of the demanded infor-
mation was the result of an act of God or other
natural casualty or disaster beyond the fault of
such person or an agent of the person;
‘‘(B) on the basis of other evidence satis-
factory to the Customs Service, that the de-
mand was substantially complied with; or
‘‘(C) the information demanded was pre-
sented to and retained by the Customs Service
at the time of entry or submitted in response to
an earlier demand.
‘‘(4) PENALTIES NOT EXCLUSIVE.—Any penalty
imposed under this subsection shall be in addition to
any other penalty provided by law except for—
‘‘(A) a penalty imposed under section 592
for a material omission of the demanded infor-
mation, or
‘‘(B) disciplinary action taken under sec-
tion 641.
‘‘(5) REMISSION
OR
MITIGATION.—A penalty
imposed under this section may be remitted or miti-
gated under section 618.
‘‘(6) CUSTOMS SUMMONS.—Nothing in this sub-
section shall limit or preclude the Customs Service
from issuing, or seeking the enforcement of, a cus-
toms summons.
‘‘(7) ALTERNATIVES TO PENALTIES.—
‘‘(A) IN GENERAL.—When a recordkeeper
who—
‘‘(i) has been certified as a participant
in the recordkeeping compliance program
under subsection (f); and
‘‘(ii) is generally in compliance with
the appropriate procedures and require-
ments of the program;
does not produce a demanded record or infor-
mation for a specific release or provide the in-
formation by acceptable alternative means, the
Customs Service, in the absence of willfulness
or repeated violations, shall issue a written no-
tice of the violation to the recordkeeper in lieu
of a monetary penalty. Repeated violations by
the recordkeeper may result in the issuance of
penalties and removal of certification under the
program until corrective action, satisfactory to
the Customs Service, is taken.
‘‘(B) CONTENTS OF NOTICE.—A notice of
violation issued under subparagraph (A) shall—
‘‘(i) state that the recordkeeper has
violated the recordkeeping requirements;
‘‘(ii) indicate the record or informa-
tion which was demanded; and
‘‘(iii) warn the recordkeeper that fu-
ture failures to produce demanded records
or information may result in the imposition
of monetary penalties.
‘‘(C) RESPONSE
TO
NOTICE.—Within a
reasonable time after receiving written notice
under subparagraph (A), the recordkeeper shall
notify the Customs Service of the steps it has
taken to prevent a recurrence of the violation.
‘‘(D) REGULATIONS.—The Secretary shall
promulgate regulations to implement this para-
graph. Such regulations may specify the time
periods for compliance with a demand for infor-
mation and provide guidelines which define re-
peated violations for purposes of this para-
graph. Any penalty issued for a recordkeeping
violation shall take into account the degree of
compliance compared to the total number of im-
portations, the nature of the demanded records
and the recordkeeper’s cooperation.’’.
SEC. 106. JUDICIAL ENFORCEMENT.
The second sentence of section 510(a) (19 U.S.C.
1510(a)) is amended by inserting ‘‘and such court may
assess a monetary penalty’’ after ‘‘as a contempt thereof’’.
SEC. 107. REVIEW OF PROTESTS.
Section 515 (19 U.S.C. 1515) is amended by insert-
ing at the end the following new subsections:
‘‘(c) If a protesting party believes that an application
for further review was erroneously or improperly denied
or was denied without authority for such action, it may
file with the Commissioner of Customs a written request
that the denial of the application for further review be set
aside. Such request must be filed within 90 days after the
date of the notice of the denial. The Commissioner of Cus-
toms may review such request and, based solely on the
information before the Customs Service at the time the
application for further review was denied, may set aside
the denial of the application for further review and void
the denial of protest, if appropriate. If the Commissioner
of Customs fails to act within 30 days after the date of
the request, the request shall be considered denied. All de-
nials of protests are effective from the date of original de-
nial for purposes of section 2636 of title 28, United States
Code. If an action is commenced in the Court of Inter-
national Trade that arises out of a protest or an applica-
tion for further review, all administrative action pertaining
to such protest or application shall terminate and any ad-
ministrative action taken subsequent to the commence-
ment of the action is null and void.
‘‘(d) If a protest is timely and properly filed, but is
denied contrary to proper instructions, the Customs Serv-
ice may on its own initiative, or pursuant to a written re-
quest by the protesting party filed with the appropriate
district director within 90 days after the date of the pro-
test denial, void the denial of the protest.’’.
SEC. 108. REPEAL OF PROVISION RELATING TO RELIQUI-
DATION ON ACCOUNT OF FRAUD.
Section 521 (19 U.S.C. 1521) is repealed.
SEC. 109. PENALTIES RELATING TO MANIFESTS.
Section 584 (19 U.S.C. 1584) is amended—
(1) by amending subsection (a)—
(A) by striking out ‘‘appropriate customs
officer’’ wherever it appears and inserting
‘‘Customs Service’’,
(B) by striking out ‘‘officer demanding the
same’’ in paragraph (1) and inserting ‘‘officer
(whether of the Customs Service or the Coast
Guard) demanding the same’’, and
(C) by inserting ‘‘(electronically or other-
wise)’’ after ‘‘submission’’ in the last sentence
of paragraph (1); and
(2) by amending subsection (b)—
(A) by striking out ‘‘the appropriate cus-
toms officer’’, ‘‘he’’ (except in paragraph
(1)(F)), and ‘‘such officer’’ wherever they ap-
pear and inserting ‘‘the Customs Service’’,
(B) by striking out ‘‘written’’ wherever it
appears (other than paragraph (1)(F)),
(C) by inserting ‘‘or electronically trans-
mit’’ after ‘‘issue’’ wherever it appears, and
(D) by striking out ‘‘his intention’’ in the
first sentence of paragraph (1) and inserting
‘‘intent’’.
SEC. 110. UNLAWFUL UNLADING OR TRANSSHIPMENT.
Section 586 (19 U.S.C. 1586) is amended—
(1) by inserting ‘‘, or of a hovering vessel which
has received or delivered merchandise while outside
the territorial sea,’’ after ‘‘from a foreign port or
place’’ wherever it appears; and
(2) by amending subsection (f)—
(A) by striking out ‘‘the appropriate cus-
toms officer of the’’ and ‘‘the appropriate cus-
toms officer within the’’ and inserting ‘‘the
Customs Service at the’’; and
(B) by striking out ‘‘the appropriate cus-
toms officer is’’ and inserting ‘‘the Customs
Service is’’.
SEC. 111. PENALTIES FOR FRAUD, GROSS NEGLIGENCE,
AND NEGLIGENCE; PRIOR DISCLOSURE.
Section 592 (19 U.S.C. 1592) is amended—
(1) by inserting ‘‘or electronically transmitted
data or information’’ after ‘‘document’’ in subsection
(a)(1)(A)(i);
(2) by inserting ‘‘The mere nonintentional rep-
etition by an electronic system of an initial clerical
error does not constitute a pattern of negligent con-
duct.’’ at the end of subsection (a)(2);
(3) by amending subsection (b)—
(A) by amending the first sentence of
paragraph (1)(A)—
(i) by striking out ‘‘the appropriate
customs officer’’ and inserting ‘‘the Cus-
toms Service’’,
(ii) by striking out ‘‘he’’ and inserting
‘‘it’’, and
(iii) by striking out ‘‘his’’ and insert-
ing ‘‘its’’, and
(B) by amending paragraph (2)—
(i) by striking out ‘‘the appropriate
customs officer’’ wherever it appears and
inserting ‘‘the Customs Service’’,
(ii) by striking out ‘‘such officer’’
wherever it appears and inserting ‘‘the
Customs Service’’, and
(iii) by striking out ‘‘he’’ wherever it
appears and inserting ‘‘it’’;
(4) by amending subsection (c)(4)—
(A) by striking ‘‘time of disclosure or with-
in thirty days, or such longer period as the ap-
propriate customs officer may provide, after no-
tice by the appropriate customs officer of his’’
in subparagraphs (A)(i) and (B), and inserting
‘‘time of disclosure, or within 30 days (or such
longer period as the Customs Service may pro-
vide) after notice by the Customs Service of
its’’; and
(B) by inserting after the last sentence the
following: ‘‘For purposes of this section, a for-
mal investigation of a violation is considered to
be commenced with regard to the disclosing
party and the disclosed information on the date
recorded in writing by the Customs Service as
the date on which facts and circumstances were
discovered or information was received which
caused the Customs Service to believe that a
possibility of a violation of subsection (a) ex-
isted.’’; and
(5) by amending subsection (d)—
(A) by striking out ‘‘the appropriate cus-
toms officer’’ and inserting ‘‘the Customs Serv-
ice’’,
(B) by striking out ‘‘duties’’ wherever it
appears and inserting ‘‘duties, taxes, or fees’’,
and
(C) by inserting ‘‘, TAXES OR FEES’’ after
‘‘DUTIES’’ in the sideheading.
SEC. 112. PENALTIES FOR FALSE DRAWBACK CLAIMS.
(a) AMENDMENT.—Part V of title IV is amended by
inserting after section 593 the following new section:
‘‘SEC. 593A. PENALTIES FOR FALSE DRAWBACK CLAIMS.
‘‘(a) PROHIBITION.—
‘‘(1) GENERAL RULE.—No person, by fraud, or
negligence—
‘‘(A) may seek, induce or affect, or at-
tempt to seek, induce, or affect, the payment or
credit to that person or others of any drawback
claim by means of—
‘‘(i) any document, written or oral
statement, or electronically transmitted
data or information, or act which is mate-
rial and false, or
‘‘(ii) any omission which is material;
or
‘‘(B) may aid or abet any other person to
violate subparagraph (A).
‘‘(2) EXCEPTION.—Clerical errors or mistakes
of fact are not violations of paragraph (1) unless
they are part of a pattern of negligent conduct. The
mere nonintentional repetition by an electronic sys-
tem of an initial clerical error does not constitute a
pattern of negligent conduct.
‘‘(b) PROCEDURES.—
‘‘(1) PREPENALTY NOTICE.—
‘‘(A) IN GENERAL.—If the Customs Serv-
ice has reasonable cause to believe that there
has been a violation of subsection (a) and deter-
mines that further proceedings are warranted,
the Customs Service shall issue to the person
concerned a written notice of intent to issue a
claim for a monetary penalty. Such notice
shall—
‘‘(i) identify the drawback claim;
‘‘(ii) set forth the details relating to
the seeking, inducing, or affecting, or the
attempted seeking, inducing, or affecting,
or the aiding or procuring of, the drawback
claim;
‘‘(iii) specify all laws and regulations
allegedly violated;
‘‘(iv) disclose all the material facts
which establish the alleged violation;
‘‘(v) state whether the alleged viola-
tion occurred as a result of fraud or neg-
ligence;
‘‘(vi) state the estimated actual or po-
tential loss of revenue due to the drawback
claim, and, taking into account all cir-
cumstances, the amount of the proposed
monetary penalty; and
‘‘(vii) inform such person that he shall
have a reasonable opportunity to make rep-
resentations, both oral and written, as to
why a claim for a monetary penalty should
not be issued in the amount stated.
‘‘(B) EXCEPTIONS.—The Customs Service
may not issue a prepenalty notice if the amount
of the penalty in the penalty claim issued under
paragraph (2) is $1,000 or less. In such cases,
the Customs Service may proceed directly with
a penalty claim.
‘‘(C) PRIOR
APPROVAL.—No prepenalty
notice in which the alleged violation occurred as
a result of fraud shall be issued without the
prior approval of Customs Headquarters.
‘‘(2) PENALTY CLAIM.—After considering rep-
resentations, if any, made by the person concerned
pursuant to the notice issued under paragraph (1),
the Customs Service shall determine whether any
violation of subsection (a), as alleged in the notice,
has occurred. If the Customs Service determines
that there was no violation, the Customs Service
shall promptly issue a written statement of the de-
termination to the person to whom the notice was
sent. If the Customs Service determines that there
was a violation, Customs shall issue a written pen-
alty claim to such person. The written penalty claim
shall specify all changes in the information provided
under clauses (i) through (vii) of paragraph (1)(A).
Such person shall have a reasonable opportunity
under section 618 to make representations, both oral
and written, seeking remission or mitigation of the
monetary penalty. At the conclusion of any proceed-
ing under section 618, the Customs Service shall
provide to the person concerned a written statement
which sets forth the final determination, and the
findings of fact and conclusions of law on which
such determination is based.
‘‘(c) MAXIMUM PENALTIES.—
‘‘(1) FRAUD.—A fraudulent violation of sub-
section (a) of this section is punishable by a civil
penalty in an amount not to exceed 3 times the ac-
tual or potential loss of revenue.
‘‘(2) NEGLIGENCE.—
‘‘(A) IN GENERAL.—A negligent violation
of subsection (a) is punishable by a civil penalty
in an amount not to exceed 20 percent of the
actual or potential loss of revenue for the 1st
violation.
‘‘(B) REPETITIVE
VIOLATIONS.—If the
Customs Service determines that a repeat neg-
ligent violation occurs relating to the same
issue, the penalty amount for the 2d violation
shall be in an amount not to exceed 50 percent
of the total actual or potential loss of revenue.
The penalty amount for each succeeding repet-
itive negligent violation shall be in an amount
not to exceed the actual or potential loss of rev-
enue. If the same party commits a nonrepetitive
violation, that violation shall be subject to a
penalty not to exceed 20 percent of the actual
or potential loss of revenue.
‘‘(3) PRIOR DISCLOSURE.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), if the person concerned discloses the
circumstances of a violation of subsection (a)
before, or without knowledge of the commence-
ment of, a formal investigation of such viola-
tion, the monetary penalty assessed under this
subsection may not exceed—
‘‘(i) if the violation resulted from
fraud, an amount equal to the actual or
potential revenue of which the United
States is or may be deprived as a result of
overpayment of the claim; or
‘‘(ii) if the violation resulted from
negligence, an amount equal to the interest
computed on the basis of the prevailing
rate of interest applied under section 6621
of the Internal Revenue Code of 1986 on
the amount of actual revenue of which the
United States is or may be deprived during
the period that—
‘‘(I) begins on the date of the
overpayment of the claim; and
‘‘(II) ends on the date on which
the person concerned tenders the
amount of the overpayment.
‘‘(B) CONDITION
AFFECTING
PENALTY
LIMITATIONS.—The limitations in subparagraph
(A) on the amount of the monetary penalty to
be assessed under subsection (c) apply only if
the person concerned tenders the amount of the
overpayment made on the claim at the time of
disclosure, or within 30 days (or such longer
period as the Customs Service may provide),
after notice by the Customs Service of its cal-
culation of the amount of the overpayment.
‘‘(C) BURDEN OF PROOF.—The person as-
serting lack of knowledge of the commencement
of a formal investigation has the burden of
proof in establishing such lack of knowledge.
‘‘(4) COMMENCEMENT
OF
INVESTIGATION.—
For purposes of this section, a formal investigation
of a violation is considered to be commenced with re-
gard to the disclosing party and the disclosed infor-
mation on the date recorded in writing by the Cus-
toms Service as the date on which facts and cir-
cumstances were discovered or information was re-
ceived which caused the Customs Service to believe
that a possibility of a violation of subsection (a) ex-
isted.
‘‘(5) EXCLUSIVITY.—Penalty claims under this
section shall be the exclusive civil remedy for any
drawback related violation of subsection (a).
‘‘(d) DEPRIVATION
OF LAWFUL REVENUE.—Not-
withstanding section 514, if the United States has been
deprived of lawful duties and taxes resulting from a viola-
tion of subsection (a), the Customs Service shall require
that such drawback claim be restored whether or not a
monetary penalty is assessed.
‘‘(e) DRAWBACK COMPLIANCE PROGRAM.—
‘‘(1) IN GENERAL.—After consultation with the
drawback trade community, the Customs Service
shall establish a drawback compliance program in
which claimants and other parties in interest may
participate after being certified by the Customs
Service under paragraph (2). Participation in the
drawback compliance program is voluntary.
‘‘(2) CERTIFICATION.—A party may be certified
as a participant in the drawback compliance pro-
gram after meeting the general requirements estab-
lished under the program or after negotiating an al-
ternative program suited to the needs of the party
and the Customs Service. Certification requirements
shall take into account the size and nature of the
party’s drawback program and the volume of claims.
In order to be certified, the participant must be able
to demonstrate that it—
‘‘(A) understands the legal requirements
for filing claims, including the nature of the
records required to be maintained and produced
and the time periods involved;
‘‘(B) has in place procedures to explain the
Customs Service requirements to those employ-
ees that are involved in the preparation of
claims, and the maintenance and production of
required records;
‘‘(C) has in place procedures regarding the
preparation of claims and maintenance of re-
quired records, and the production of such
records to the Customs Service;
‘‘(D) has designated a dependable individ-
ual or individuals to be responsible for compli-
ance under the program and whose duties in-
clude maintaining familiarity with the drawback
requirements of the Customs Service;
‘‘(E) has a record maintenance procedure
approved by the Customs Service for original
records, or, if approved by the Customs Service,
for alternate records or recordkeeping formats
other than the original records; and
‘‘(F) has procedures for notifying the Cus-
toms Service of variances to, and violations of,
the requirements of the drawback compliance
program or any negotiated alternative pro-
grams, and for taking corrective action when
notified by the Customs Service for violations or
problems regarding such program.
‘‘(f) ALTERNATIVES TO PENALTIES.—
‘‘(1) IN GENERAL.—When a party that—
‘‘(A) has been certified as a participant in
the drawback compliance program under sub-
section (e); and
‘‘(B) is generally in compliance with the
appropriate procedures and requirements of the
program;
commits a violation of subsection (a), the Customs
Service, shall, in the absence of fraud or repeated
violations, and in lieu of a monetary penalty, issue
a written notice of the violation to the party. Re-
peated violations by a party may result in the issu-
ance of penalties and removal of certification under
the program until corrective action, satisfactory to
the Customs Service, is taken.
‘‘(2) CONTENTS OF NOTICE.—A notice of viola-
tion issued under paragraph (1) shall—
‘‘(A) state that the party has violated sub-
section (a);
‘‘(B) explain the nature of the violation;
and
‘‘(C) warn the party that future violations
of subsection (a) may result in the imposition
of monetary penalties.
‘‘(3) RESPONSE TO NOTICE.—Within a reason-
able time after receiving written notice under para-
graph (1), the party shall notify the Customs Service
of the steps it has taken to prevent a recurrence of
the violation.
‘‘(g) REPETITIVE VIOLATIONS.—
‘‘(1) A party who has been issued a written no-
tice under subsection (f)(1) and subsequently com-
mits a repeat negligent violation involving the same
issue is subject to the following monetary penalties:
‘‘(A) 2D VIOLATION.—An amount not to
exceed 20 percent of the loss of revenue.
‘‘(B) 3RD VIOLATION.—An amount not to
exceed 50 percent of the loss of revenue.
‘‘(C) 
4TH
AND
SUBSEQUENT
VIOLA-
TIONS.—An amount not to exceed 100 percent
of the loss of revenue.
‘‘(2) If a party that has been certified as a par-
ticipant in the drawback compliance program under
subsection (e) commits an alleged violation which
was not repetitive, the party shall be issued a ‘warn-
ing letter’, and, for any subsequent violation, shall
be subject to the same maximum penalty amounts
stated in paragraph (1).
‘‘(h) REGULATION.—The Secretary shall promulgate
regulations and guidelines to implement this section. Such
regulations shall specify that for purposes of subsection
(g), a repeat negligent violation involving the same issue
shall be treated as a repetitive violation for a maximum
period of 3 years.
‘‘(i) COURT OF INTERNATIONAL TRADE PROCEED-
INGS.—Notwithstanding any other provision of law, in any
proceeding commenced by the United States in the Court
of International Trade for the recovery of any monetary
penalty claimed under this section—
‘‘(1) all issues, including the amount of the pen-
alty, shall be tried de novo;
‘‘(2) if the monetary penalty is based on fraud,
the United States shall have the burden of proof to
establish the alleged violation by clear and convinc-
ing evidence; and
‘‘(3) if the monetary penalty is based on neg-
ligence, the United States shall have the burden of
proof to establish the act or omission constituting
the violation, and the alleged violator shall have the
burden of providing evidence that the act or omis-
sion did not occur as a result of negligence.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) applies to drawback claims filed on and
after the nationwide operational implementation of an
automated drawback selectivity program by the Customs
Service. The Customs Service shall publish notice of this
date in the Customs Bulletin.
SEC. 113. INTERPRETIVE RULINGS AND DECISIONS; PUB-
LIC INFORMATION.
Section 625 (19 U.S.C. 1625) is amended to read as
follows:
‘‘SEC. 625. INTERPRETIVE RULINGS AND DECISIONS; PUB-
LIC INFORMATION.
‘‘(a) PUBLICATION.—Within 90 days after the date
of issuance of any interpretive ruling (including any ruling
letter, or internal advice memorandum) or protest review
decision under this chapter with respect to any customs
transaction, the Secretary shall have such ruling or deci-
sion published in the Customs Bulletin or shall otherwise
make such ruling or decision available for public
inspection.
‘‘(b) APPEALS.—A person may appeal an adverse in-
terpretive ruling and any interpretation of any regulation
prescribed to implement such ruling to a higher level of
authority within the Customs Service for de novo review.
Upon a reasonable showing of business necessity, any such
appeal shall be considered and decided no later than 60
days following the date on which the appeal is filed. The
Secretary shall issue regulations to implement this sub-
section.
‘‘(c) MODIFICATION AND REVOCATION.—A proposed
interpretive ruling or decision which would—
‘‘(1) modify (other than to correct a clerical
error) or revoke a prior interpretive ruling or deci-
sion which has been in effect for at least 60 days;
or
‘‘(2) have the effect of modifying the treatment
previously accorded by the Customs Service to sub-
stantially identical transactions;
shall be published in the Customs Bulletin. The Secretary
shall give interested parties an opportunity to submit, dur-
ing not less than the 30-day period after the date of such
publication, comments on the correctness of the proposed
ruling or decision. After consideration of any comments
received, the Secretary shall publish a final ruling or deci-
sion in the Customs Bulletin within 30 days after the clos-
ing of the comment period. The final ruling or decision
shall become effective 60 days after the date of its
publication.
‘‘(d) PUBLICATION OF CUSTOMS DECISIONS THAT
LIMIT COURT DECISIONS.—A decision that proposes to
limit the application of a court decision shall be published
in the Customs Bulletin together with notice of oppor-
tunity for public comment thereon prior to a final decision.
‘‘(e) PUBLIC INFORMATION.—The Secretary may
make available in writing or through electronic media, in
an efficient, comprehensive and timely manner, all infor-
mation, including directives, memoranda, electronic mes-
sages and telexes which contain instructions, require-
ments, methods or advice necessary for importers and ex-
porters to comply with the Customs laws and regulations.
All information which may be made available pursuant to
this subsection shall be subject to any exemption from dis-
closure provided by section 552 of title 5, United States
Code.’’.
SEC. 114. SEIZURE AUTHORITY.
Section 596(c) (19 U.S.C. 1595a(c)) is amended to
read as follows:
‘‘(c) Merchandise which is introduced or attempted
to be introduced into the United States contrary to law
shall be treated as follows:
‘‘(1) The merchandise shall be seized and for-
feited if it—
‘‘(A) is stolen, smuggled, or clandestinely
imported or introduced;
‘‘(B) is a controlled substance, as defined
in the Controlled Substances Act (21 U.S.C.
801 et seq.), and is not imported in accordance
with applicable law; or
‘‘(C) is a contraband article, as defined in
section 1 of the Act of August 9, 1939 (49
U.S.C. App. 781).
‘‘(2) The merchandise may be seized and for-
feited if—
‘‘(A) its importation or entry is subject to
any restriction or prohibition which is imposed
by law relating to health, safety, or conserva-
tion and the merchandise is not in compliance
with the applicable rule, regulation, or statute;
‘‘(B) its importation or entry requires a li-
cense, permit or other authorization of an agen-
cy of the United States Government and the
merchandise is not accompanied by such li-
cense, permit, or authorization;
‘‘(C) it is merchandise or packaging in
which copyright, trademark, or trade name pro-
tection violations are involved (including, but
not limited to, violations of section 42, 43, or
45 of the Act of July 5, 1946 (Public Law 95–
410; 15 U.S.C. 1124, 1125, or 1127), section
506 or 509 of title 17, United States Code, or
section 2318 or 2320 of title 18, United States
Code);
‘‘(D) it is trade dress merchandise involved
in the violation of a court order citing section
43 of such Act of July 5, 1946 (15 U.S.C.
1125);
‘‘(E) it is merchandise which is marked in-
tentionally in violation of section 304; or
‘‘(F) it is merchandise for which the im-
porter has received written notices that previous
importations of identical merchandise from the
same supplier were found to have been marked
in violation of section 304.
‘‘(3) If the importation or entry of the mer-
chandise is subject to quantitative restrictions re-
quiring a visa, permit, license, or other similar docu-
ment, or stamp from the United States Government
or from a foreign government or issuing authority
pursuant to a bilateral or multilateral agreement,
the merchandise shall be subject to detention in ac-
cordance with section 499 unless the appropriate
visa, license, permit, or similar document or stamp
is presented to the Customs Service; but if the visa,
permit, license, or similar document or stamp which
is presented in connection with the importation or
entry of the merchandise is counterfeit, the mer-
chandise may be seized and forfeited.
‘‘(4) If the merchandise is imported or intro-
duced contrary to a provision of law which governs
the classification or value of merchandise and there
are no issues as to the admissibility of the merchan-
dise into the United States, it shall not be seized ex-
cept in accordance with section 592.
‘‘(5) In any case where the seizure and forfeit-
ure of merchandise are required or authorized by
this section, the Secretary may—
‘‘(A) remit the forfeiture under section
618, or
‘‘(B) permit the exportation of the mer-
chandise, unless its release would adversely af-
fect health, safety, or conservation or be in con-
travention of a bilateral or multilateral agree-
ment or treaty.’’.
TITLE II—NATIONAL CUSTOMS
AUTOMATION PROGRAM
SEC. 201. NATIONAL CUSTOMS AUTOMATION PROGRAM.
Part I of title IV is amended—
(1) by striking out
‘‘PART I—DEFINITIONS
and inserting
‘‘PART I—DEFINITIONS AND NATIONAL CUSTOMS
AUTOMATION PROGRAM
‘‘Subpart A—Definitions’’;
and
(2) by inserting after section 402 the following:
‘‘Subpart B—National Customs Automation Program
‘‘SEC. 411. NATIONAL CUSTOMS AUTOMATION PROGRAM.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish the National Customs Automation Program (herein-
after in this subpart referred to as the ‘Program’) which
shall be an automated and electronic system for processing
commercial importations and shall include the following
existing and planned components:
‘‘(1) Existing components:
‘‘(A) The electronic entry of merchandise.
‘‘(B) The electronic entry summary of re-
quired information.
‘‘(C) The electronic transmission of invoice
information.
‘‘(D) The electronic transmission of mani-
fest information.
‘‘(E) Electronic payments of duties, fees,
and taxes.
‘‘(F) The electronic status of liquidation
and reliquidation.
‘‘(G) The electronic selection of high risk
entries for examination (cargo selectivity and
entry summary selectivity).
‘‘(2) Planned components:
‘‘(A) The electronic filing and status of
protests.
‘‘(B) The electronic filing (including re-
mote filing under section 414) of entry informa-
tion with the Customs Service at any location.
‘‘(C) The electronic filing of import activity
summary statements and reconciliation.
‘‘(D) The electronic filing of bonds.
‘‘(E) The electronic penalty process.
‘‘(F) The electronic filing of drawback
claims, records, or entries.
‘‘(G) Any other component initiated by the
Customs Service to carry out the goals of this
subpart.
‘‘(b) PARTICIPATION IN PROGRAM.—The Secretary
shall by regulation prescribe the eligibility criteria for par-
ticipation in the Program. Participation in the Program
is voluntary.
‘‘SEC. 412. PROGRAM GOALS.
‘‘The goals of the Program are to ensure that all reg-
ulations and rulings that are administered or enforced by
the Customs Service are administered and enforced in a
manner that—
‘‘(1) is uniform and consistent;
‘‘(2) is as minimally intrusive upon the normal
flow of business activity as practicable; and
‘‘(3) improves compliance.
‘‘SEC. 413. IMPLEMENTATION AND EVALUATION OF PRO-
GRAM.
‘‘(a) OVERALL PROGRAM PLAN.—
‘‘(1) IN GENERAL.—Before the 180th day after
the date of the enactment of this Act, the Secretary
shall develop and transmit to the Committees an
overall plan for the Program. The overall Program
plan shall set forth—
‘‘(A) a general description of the ultimate
configuration of the Program;
‘‘(B) a description of each of the existing
components of the Program listed in section
411(a)(1); and
‘‘(C) estimates regarding the stages on
which planned components of the Program list-
ed in section 411(a)(2) will be brought on-line.
‘‘(2) ADDITIONAL INFORMATION.—In addition
to the information required under paragraph (1), the
overall Program plan shall include a statement re-
garding—
‘‘(A) the extent to which the existing com-
ponents of the Program currently meet, and the
planned components will meet, the Program
goals set forth in section 412; and
‘‘(B) the effects that the existing compo-
nents are currently having, and the effects that
the planned components will likely have, on—
‘‘(i) importers, brokers, and other
users of the Program, and
‘‘(ii) Customs Service occupations, op-
erations, processes, and systems.
‘‘(b) IMPLEMENTATION PLAN, TESTING, AND EVAL-
UATION.—
‘‘(1) IMPLEMENTATION PLAN.—For each of the
planned components of the Program listed in section
411(a)(2), the Secretary shall—
‘‘(A) develop an implementation plan;
‘‘(B) test the component in order to assess
its viability;
‘‘(C) evaluate the component in order to
assess its contribution toward achieving the
program goals; and
‘‘(D) transmit to the Committees the im-
plementation plan, the testing results, and an
evaluation report.
In developing an implementation plan under sub-
paragraph (A) and evaluating components under
subparagraph (C), the Secretary shall publish a re-
quest for comments in the Customs Bulletin and
shall consult with the trade community, including
importers, brokers, shippers, and other affected par-
ties.
‘‘(2) IMPLEMENTATION.—
‘‘(A) The Secretary may implement on a
permanent basis any Program component re-
ferred to in paragraph (1) on or after the date
which is 30 days after paragraph (1)(D) is
complied with.
‘‘(B) For purposes of subparagraph (A),
the 30 days shall be computed by excluding—
‘‘(i) the days either House is not in
session because of an adjournment of more
than 3 days to a day certain or an ad-
journment of the Congress sine die, and
‘‘(ii) any Saturday and Sunday, not
excluded under clause (i), when either
House is not in session.
‘‘(3) EVALUATION
AND
REPORT.—The Sec-
retary shall—
‘‘(A) develop a user satisfaction survey of
parties participating in the Program;
‘‘(B) evaluate the results of the user satis-
faction survey on a biennial basis (fiscal years)
and transmit a report to the Committees on the
evaluation by no later than the 90th day after
the close of each 2d fiscal year;
‘‘(C) with respect to the existing Program
component listed in section 411(a)(1)(G) trans-
mit to the Committees—
‘‘(i) a written evaluation of such com-
ponent before the 180th day after the date
of the enactment of this section and before
the implementation of the planned Pro-
gram 
components 
listed 
in 
section
411(a)(2) (B) and (C), and
‘‘(ii) a report on such component for
each of the 3 full fiscal years occurring
after the date of the enactment of this sec-
tion, which report shall be transmitted not
later than the 90th day after the close of
each such year; and
‘‘(D) not later than the 90th day after the
close of fiscal year 1993, and annually there-
after through fiscal year 1999, transmit to the
Committees a written evaluation with respect to
the implementation and effect on users of each
of the planned Program components listed in
section 411(a)(2).
In carrying out the provisions of this paragraph, the
Secretary shall publish requests for comments in the
Customs Bulletin and shall consult with the trade
community, including importers, brokers, shippers,
and other affected parties.
‘‘(c) COMMITTEES.—For purposes of this section, the
term ‘Committees’ means the Committee on Ways and
Means of the House of Representatives and the Committee
on Finance of the Senate.
‘‘SEC. 414. REMOTE LOCATION FILING.
‘‘(a) CORE ENTRY INFORMATION.—
‘‘(1) IN
GENERAL.—A Program participant
may file an entry of merchandise with the Customs
Service from a location other than the district des-
ignated in the entry for examination (hereafter in
this section referred to as a ‘remote location’) if—
‘‘(A) the Customs Service is satisfied that
the participant has the capabilities referred to
in paragraph (2) regarding such method of fil-
ing; and
‘‘(B) the participant elects to file from the
remote location.
‘‘(2) REQUIREMENTS.—In order to qualify for
filing from a remote location, a Program participant
must have the capability to provide, on an entry-by-
entry basis, for the following:
‘‘(A) The electronic entry of merchandise.
‘‘(B) The electronic entry summary of re-
quired information.
‘‘(C) The electronic transmission of invoice
information (when required by the Customs
Service).
‘‘(D) The electronic payment of duties,
fees, and taxes.
‘‘(E) Such other electronic capabilities
within the existing or planned components of
the Program as the Secretary shall by regula-
tion require.
‘‘(3) ALTERNATIVE FILING.—Any Program par-
ticipant that is eligible under paragraph (1) to file
entry information electronically from a remote loca-
tion but chooses not to do so in the case of any
entry must file any paper documentation for the
entry at the designated location referred to in sub-
section (d).
‘‘(b) ADDITIONAL ENTRY INFORMATION.—
‘‘(1) IN GENERAL.—A Program participant that
is eligible under subsection (a) to file entry informa-
tion from a remote location may, if the Customs
Service is satisfied that the participant meets the re-
quirements under paragraph (2), also electronically
file from the remote location additional information
that is required by the Customs Service to be pre-
sented before the acceptance of entry summary in-
formation and at the time of acceptance of entry
summary information.
‘‘(2) REQUIREMENTS.—The Secretary shall
publish, and periodically update, a list of those capa-
bilities within the existing and planned components
of the Program that a Program participant must
have for purposes of this subsection.
‘‘(3) FILING OF ADDITIONAL INFORMATION.—
‘‘(A) IF
INFORMATION
ELECTRONICALLY
ACCEPTABLE.—A Program participant that is
eligible under paragraph (1) to file additional
information from a remote location shall elec-
tronically file all such information that the Cus-
toms Service can accept electronically.
‘‘(B) ALTERNATIVE FILING.—If the Cus-
toms Service cannot accept additional informa-
tion electronically, the Program participant
shall file the paper documentation with respect
to the information at the appropriate filing lo-
cation.
‘‘(C) APPROPRIATE LOCATION.—For pur-
poses of subparagraph (B), the ‘appropriate lo-
cation’ is—
‘‘(i) before January 1, 1999, a des-
ignated location; and
‘‘(ii) after December 31, 1998—
‘‘(I) if the paper documentation
is required for release, a designated
location; or
‘‘(II) if the paper documentation
is not required for release, a remote
location designated by the Customs
Service or a designated location.
‘‘(D) OTHER.—A Program participant that
is eligible under paragraph (1) to file additional
information electronically from a remote loca-
tion but chooses not to do so must file the
paper documentation with respect to the infor-
mation at a designated location.
‘‘(c) POST-ENTRY SUMMARY INFORMATION.—A Pro-
gram participant that is eligible to file electronically entry
information under subsection (a) and additional informa-
tion under subsection (b) from a remote location may file
at any remote location designated by the Customs Service
any information required by the Customs Service after
entry summary.
‘‘(d) DEFINITION OF DESIGNATED LOCATION.—For
purposes of this section, the term ‘designated location’
means a customs office located in the customs district des-
ignated by the entry filer for purposes of customs exam-
ination of the merchandise.’’.
SEC. 202. DRAWBACK AND REFUNDS.
(a) AMENDMENTS.—Section 313 (19 U.S.C. 1313) is
amended as follows:
(1) Subsection (a) is amended—
(A) by inserting ‘‘or destruction under cus-
toms supervision’’ after ‘‘Upon the expor-
tation’’;
(B) by inserting ‘‘provided that those arti-
cles have not been used prior to such expor-
tation or destruction,’’ after ‘‘manufactured or
produced in the United States with the use of
imported merchandise,’’;
(C) by inserting ‘‘or destruction’’ after ‘‘re-
funded upon the exportation’’; and
(D) by striking out ‘‘wheat imported after
ninety days after the date of the enactment of
this Act’’ and inserting ‘‘imported wheat’’.
(2) Subsection (b) is amended—
(A) by striking out ‘‘duty-free or domestic
merchandise’’ and inserting ‘‘any other mer-
chandise (whether imported or domestic)’’;
(B) by inserting ‘‘, or destruction under
customs supervision,’’ after ‘‘there shall be al-
lowed upon the exportation’’;
(C) by inserting ‘‘or destroyed’’ after ‘‘not-
withstanding the fact that none of the imported
merchandise may actually have been used in the
manufacture or production of the exported’’;
(D) by inserting ‘‘, but only if those arti-
cles have not been used prior to such expor-
tation or destruction’’ after ‘‘an amount of
drawback equal to that which would have been
allowable had the merchandise used therein
been imported’’; and
(E) by inserting ‘‘or destruction under cus-
toms supervision’’ after ‘‘but the total amount
of drawback allowed upon the exportation’’.
(3) Subsection (c) is amended to read as fol-
lows:
‘‘(c) MERCHANDISE NOT CONFORMING TO SAMPLE
OR SPECIFICATIONS.—Upon the exportation, or destruc-
tion under the supervision of the Customs Service, of mer-
chandise—
‘‘(1) not conforming to sample or specifications,
shipped without the consent of the consignee, or de-
termined to be defective as of the time of importa-
tion;
‘‘(2) upon which the duties have been paid;
‘‘(3) which has been entered or withdrawn for
consumption; and
‘‘(4) which, within 3 years after release from
the custody of the Customs Service, has been re-
turned to the custody of the Customs Service for ex-
portation or destruction under the supervision of the
Customs Service;
the full amount of the duties paid upon such merchandise,
less 1 percent, shall be refunded as drawback.’’.
(4) Subsection (j) is amended to read as fol-
lows:
‘‘(j) UNUSED MERCHANDISE DRAWBACK.—
‘‘(1) If imported merchandise, on which was
paid any duty, tax, or fee imposed under Federal
law because of its importation—
‘‘(A) is, before the close of the 3-year pe-
riod beginning on the date of importation—
‘‘(i) exported, or
‘‘(ii) destroyed under customs super-
vision; and
‘‘(B) is not used within the United States
before such exportation or destruction;
then upon such exportation or destruction 99 per-
cent of the amount of each duty, tax, or fee so paid
shall be refunded as drawback.
‘‘(2) If there is, with respect to imported mer-
chandise on which was paid any duty, tax, or fee im-
posed under Federal law because of its importation,
any other merchandise (whether imported or domes-
tic), that—
‘‘(A) is commercially interchangeable with
such imported merchandise;
‘‘(B) is, before the close of the 3-year pe-
riod beginning on the date of importation of the
imported merchandise, either exported or de-
stroyed under customs supervision; and
‘‘(C) before such exportation or destruc-
tion—
‘‘(i) is not used within the United
States, and
‘‘(ii) is in the possession of, including
ownership while in bailment, in leased fa-
cilities, in transit to, or in any other man-
ner under the operational control of, the
party claiming drawback under this para-
graph (if that party paid the duty, tax, or
fee on the imported merchandise (estab-
lished by means of either an entry sum-
mary or a certificate of delivery));
then upon the exportation or destruction of such
other merchandise the amount of each such duty,
tax, and fee paid regarding the imported merchan-
dise shall be refunded as drawback, but in no case
may the total drawback on the imported merchan-
dise, whether available under this paragraph or any
other provision of law or any combination thereof,
exceed 99 percent of that duty, tax, or fee.
‘‘(3) The performing of any operation or com-
bination of operations (including, but not limited to,
testing, cleaning, repacking, inspecting, sorting, re-
furbishing, freezing, blending, repairing, reworking,
cutting, slitting, adjusting, replacing components,
relabeling, disassembling, and unpacking), not
amounting to manufacture or production for draw-
back purposes under the preceding provisions of this
section on—
‘‘(A) the imported merchandise itself in
cases to which paragraph (1) applies, or
‘‘(B) the commercially interchangeable
merchandise in cases to which paragraph (2)
applies,
shall not be treated as a use of that merchandise for
purposes of applying paragraph (1)(B) or (2)(C).’’.
(5) Subsection (l) is amended by striking out
‘‘the fixing of a time limit within which drawback
entries or entries for refund under any of the provi-
sions of this section or section 309(b) shall be filed
and completed,’’ and inserting ‘‘the authority for the
electronic submission of drawback entries’’.
(6) The following new subsections are inserted
after subsection (p):
‘‘(q) PACKAGING MATERIAL.—Packaging material,
when used on or for articles or merchandise exported or
destroyed under subsection (a), (b), (c), or (j), shall be
eligible under such subsection for refund, as drawback, of
99 percent of any duty, tax, or fee imposed under Federal
law on the importation of such material.
‘‘(r) FILING DRAWBACK CLAIMS.—
‘‘(1) A drawback entry and all documents nec-
essary to complete a drawback claim, including those
issued by one customs officer to another, shall be
filed or applied for, as applicable, within 3 years
after the date of exportation or destruction of the
articles on which drawback is claimed, except that
any landing certificate required by regulation shall
be filed within the time limit prescribed in such reg-
ulation. Claims not completed within the 3-year pe-
riod shall be considered abandoned. No extension
will be granted unless it is established that a cus-
toms officer was responsible for the untimely filing.
‘‘(2) A drawback entry for refund filed pursu-
ant to any subsection of this section shall be deemed
filed pursuant to any other subsection of this section
should it be determined that drawback is not allow-
able under the entry as originally filed but is allow-
able under such other subsection.
‘‘(s) DESIGNATION
OF
MERCHANDISE
BY
SUC-
CESSOR.—
‘‘(1) For purposes of subsection (b), a draw-
back successor may designate imported merchandise
used by the predecessor before the date of succession
as the basis for drawback on articles manufactured
by the drawback successor after the date of succes-
sion.
‘‘(2) For purposes of subsection (j)(2), a draw-
back successor may designate imported merchandise
upon which the predecessor, before the date of suc-
cession, paid the duty, tax, or fee related to the im-
portation of the merchandise as the basis for draw-
back on merchandise possessed by the drawback suc-
cessor after the date of succession.
‘‘(3) For purposes of this subsection, the term
‘drawback successor’ means an entity to which an-
other entity (in this subsection referred to as the
‘predecessor’) has transferred by written agreement,
merger, or corporate resolution all or substantially
all of the rights, privileges, immunities, powers, du-
ties, and liabilities of the predecessor, or all or sub-
stantially all of the assets and other business inter-
ests of a division, plant, or other business unit of
such predecessor, but only if in such transfer the
value of the transferred realty and personalty ex-
ceeds the value of all transferred intangibles.
‘‘(4) No drawback shall be paid under this sub-
section until either the predecessor or the drawback
successor (who shall also certify that it has the pred-
ecessor’s records) certifies that—
‘‘(A) the transferred merchandise was not
and will not be claimed by the predecessor, and
‘‘(B) the predecessor did not and will not
issue any certificate to any other person that
would enable that person to claim drawback.
‘‘(t) DRAWBACK CERTIFICATES.—Any person who is-
sues a certificate which would enable another person to
claim drawback shall be subject to the recordkeeping pro-
visions of this chapter, with the retention period beginning
on the date that such certificate is issued.
‘‘(u) ELIGIBILITY
OF ENTERED
OR WITHDRAWN
MERCHANDISE.—Imported merchandise that has not been
regularly entered or withdrawn for consumption shall not
satisfy any requirement for use, exportation, or destruc-
tion under this section.
‘‘(v) MULTIPLE DRAWBACK CLAIMS.—Merchandise
that is exported or destroyed to satisfy any claim for draw-
back shall not be the basis of any other claim for draw-
back; except that appropriate credit and deductions for
claims covering components or ingredients of such mer-
chandise 
shall 
be 
made 
in 
computing 
drawback
payments.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) apply to—
(1) any drawback entry made after September
30, 1993; and
(2) any drawback entry made before October 1,
1993, if the liquidation of the entry is not final as
of that date.
SEC. 203. EFFECTIVE DATE OF RATES OF DUTY.
Section 315 (19 U.S.C. 1315) is amended—
(1) by striking out ‘‘appropriate customs officer
in the form and manner prescribed by regulations of
the Secretary of the Treasury,’’ in the first sentence
of subsection (a) and inserting ‘‘Customs Service by
written, electronic or such other means as the Sec-
retary by regulation shall prescribe,’’;
(2) by striking out ‘‘customs custody’’ in the
first sentence of subsection (b) and inserting ‘‘cus-
tody of the Customs Service’’; and
(3) by striking out ‘‘section 1001, paragraph
813’’ in subsection (c) and inserting ‘‘chapter 98 of
the Harmonized Tariff Schedule of the United
States’’.
SEC. 204. DEFINITIONS.
Section 401 (19 U.S.C. 1401) is amended—
(1) by amending subsection (k) to read as fol-
lows:
‘‘(k) The term ‘hovering vessel’ means—
‘‘(1) any vessel which is found or kept off the
coast of the United States within or without the cus-
toms waters, if, from the history, conduct, character,
or location of the vessel, it is reasonable to believe
that such vessel is being used or may be used to in-
troduce or promote or facilitate the introduction or
attempted introduction of merchandise into the
United States in violation of the laws of the United
States; and
‘‘(2) any vessel which has visited a vessel de-
scribed in paragraph (1).’’; and
(2) by inserting at the end thereof the following
new subsections:
‘‘(n) The term ‘electronic transmission’ means the
transfer of data or information through an authorized
electronic data interchange system consisting of, but not
limited to, computer modems and computer networks.
‘‘(o) The term ‘electronic entry’ means the electronic
transmission to the Customs Service of—
‘‘(1) entry information required for the entry of
merchandise, and
‘‘(2) entry summary information required for
the classification and appraisement of the merchan-
dise, the verification of statistical information, and
the determination of compliance with applicable law.
‘‘(p) The term ‘electronic data interchange system’
means any established mechanism approved by the Com-
missioner of Customs through which information can be
transferred electronically.
‘‘(q) The term ‘National Customs Automation Pro-
gram’ means the program established under section 411.
‘‘(r) The term ‘import activity summary statement’
refers to data or information transmitted electronically to
the Customs Service, in accordance with such regulations
as the Secretary prescribes, at the end of a specified pe-
riod of time which enables the Customs Service to assess
properly the duties, taxes and fees on merchandise im-
ported during that period, collect accurate statistics and
determine whether any other applicable requirement of law
(other than a requirement relating to release from customs
custody) is met.
‘‘(s) The term ‘reconciliation’ means an electronic
process, initiated at the request of an importer, under
which the elements of an entry, other than those elements
related to the admissibility of the merchandise, that are
undetermined at the time of entry summary are provided
to the Customs Service at a later time. A reconciliation
is treated as an entry for purposes of liquidation, reliqui-
dation, and protest.’’.
SEC. 205. MANIFESTS.
Section 431 (19 U.S.C. 1431) is amended—
(1) by amending subsections (a) and (b) to read
as follows:
‘‘(a) IN GENERAL.—Every vessel required to make
entry under section 434 or obtain clearance under section
4197 of the Revised Statutes of the United States (46
U.S.C. App. 91) shall have a manifest that complies with
the requirements prescribed under subsection (d).
‘‘(b) PRODUCTION OF MANIFEST.—Any manifest re-
quired by the Customs Service shall be signed, produced,
delivered or electronically transmitted by the master or
person in charge of the vessel, aircraft, or vehicle, or by
any other authorized agent of the owner or operator of
the vessel, aircraft, or vehicle in accordance with the re-
quirements prescribed under subsection (d). A manifest
may be supplemented by bill of lading data supplied by
the issuer of such bill. If any irregularity of omission or
commission occurs in any way in respect to any manifest
or bill of lading data, the owner or operator of the vessel,
aircraft or vehicle, or any party responsible for such irreg-
ularity, shall be liable for any fine or penalty prescribed
by law with respect to such irregularity. The Customs
Service may take appropriate action against any of the
parties.’’; and
(2) by inserting after subsection (c) the follow-
ing new subsection:
‘‘(d) REGULATIONS.—
‘‘(1) IN GENERAL.—The Secretary shall by reg-
ulation—
‘‘(A) specify the form for, and the informa-
tion and data that must be contained in, the
manifest required by subsection (a);
‘‘(B) allow, at the option of the individual
producing the manifest and subject to para-
graph (2), letters and documents shipments to
be accounted for by summary manifesting pro-
cedures;
‘‘(C) prescribe the manner of production
for, and the delivery for electronic transmittal
of, the manifest required by subsection (a); and
‘‘(D) 
prescribe 
the 
manner 
for
supplementing manifests with bill of lading data
under subsection (b).
‘‘(2) LETTERS AND DOCUMENTS SHIPMENTS.—
For purposes of paragraph (1)(B)—
‘‘(A) the Customs Service may require with
respect to letters and documents shipments—
‘‘(i) that they be segregated by coun-
try of origin, and
‘‘(ii) additional examination proce-
dures that are not necessary for individ-
ually manifested shipments;
‘‘(B) standard letter envelopes and stand-
ard document packs shall be segregated from
larger document shipments for purposes of cus-
toms inspections; and
‘‘(C) the term ‘letters and documents’
means—
‘‘(i) data described in General Head-
note 4(c) of the Harmonized Tariff Sched-
ule of the United States,
‘‘(ii) securities and similar evidences
of value described in heading 4907 of such
Schedule, but not monetary instruments
defined pursuant to chapter 53 of title 31,
United States Code, and
‘‘(iii) personal correspondence, wheth-
er on paper, cards, photographs, tapes, or
other media.’’.
SEC. 206. INVOICE CONTENTS.
Section 481 (19 U.S.C. 1481) is amended—
(1) by amending subsection (a)—
(A) by amending the matter preceding
paragraph (1) to read as follows: ‘‘IN GEN-
ERAL.—All invoices of merchandise to be im-
ported into the United States and any elec-
tronic equivalent thereof considered acceptable
by the Secretary in regulations prescribed under
this section shall set forth, in written, elec-
tronic, or such other form as the Secretary
shall prescribe, the following:’’,
(B) by amending paragraph (3) to read as
follows:
‘‘(3) A detailed description of the merchandise,
including the commercial name by which each item
is known, the grade or quality, and the marks, num-
bers, or symbols under which sold by the seller or
manufacturer in the country of exportation, together
with the marks and numbers of the packages in
which the merchandise is packed;’’, and
(C) by amending paragraph (10) to read
as follows:
‘‘(10) Any other fact that the Secretary may by
regulation require as being necessary to a proper ap-
praisement, examination and classification of the
merchandise.’’;
(2) by amending subsection (c) to read as
follows:
‘‘(c) IMPORTER PROVISION OF INFORMATION.—Any
information required to be set forth on an invoice may
alternatively be provided by any of the parties qualifying
as an ‘importer of record’ under section 484(a)(2)(B) by
such means, in such form or manner, and within such time
as the Secretary shall by regulation prescribe.’’; and
(3) by inserting before the period at the end of
subsection (d) the following: ‘‘and may allow for the
submission or electronic transmission of partial in-
voices, electronic equivalents of invoices, bills, or
other documents or parts thereof, required under
this section’’.
SEC. 207. ENTRY OF MERCHANDISE.
Section 484 (19 U.S.C. 1484) is amended to read as
follows:
‘‘SEC. 484. ENTRY OF MERCHANDISE.
‘‘(a) REQUIREMENT AND TIME.—
‘‘(1) Except as provided in sections 490, 498,
552, 553, and 336(j), one of the parties qualifying
as ‘importer of record’ under paragraph (2)(B), ei-
ther in person or by an agent authorized by the
party in writing, shall, using reasonable care—
‘‘(A) make entry therefor by filing with the
Customs Service—
‘‘(i) such documentation or, pursuant
to an electronic data interchange system,
such information as is necessary to enable
the Customs Service to determine whether
the merchandise may be released from cus-
toms custody, and
‘‘(ii) notification whether an import
activity summary statement will be filed;
and
‘‘(B) complete the entry by filing with the
Customs Service the declared value, classifica-
tion and rate of duty applicable to the merchan-
dise, and such other documentation or, pursu-
ant to an electronic data interchange system,
such other information as is necessary to enable
the Customs Service to—
‘‘(i) properly assess duties on the mer-
chandise,
‘‘(ii) collect accurate statistics with re-
spect to the merchandise, and
‘‘(iii) determine whether any other ap-
plicable requirement of law (other than a
requirement relating to release from cus-
toms custody) is met.
‘‘(2)(A) The documentation or information re-
quired under paragraph (1) with respect to any im-
ported merchandise shall be filed or transmitted in
such manner and within such time periods as the
Secretary shall by regulation prescribe. Such regula-
tions shall provide for the filing of import activity
summary statements, covering entries made during a
calendar month, within such time period as is pre-
scribed in regulations but not to exceed the 20th day
following such calendar month.
‘‘(B) When an entry of merchandise is made
under this section, the required documentation or in-
formation shall be filed or electronically transmitted
either by the owner or purchaser of the merchandise
or, when appropriately designated by the owner, pur-
chaser, or consignee of the merchandise, a person
holding a valid license under section 641. When a
consignee declares on entry that he is the owner or
purchaser of merchandise the Customs Service may,
without liability, accept the declaration. For the pur-
poses of this Act, the importer of record must be one
of the parties who is eligible to file the documenta-
tion or information required by this section.
‘‘(C) The Secretary, in prescribing regulations
to carry out this subsection, shall establish proce-
dures which insure the accuracy and timeliness of
import statistics, particularly statistics relevant to
the classification and valuation of imports. Correc-
tions of errors in such statistical data shall be trans-
mitted immediately to the Director of the Bureau of
the Census, who shall make corrections in the statis-
tics maintained by the Bureau. The Secretary shall
also provide, to the maximum extent practicable, for
the protection of the revenue, the enforcement of
laws governing the importation and exportation of
merchandise, the facilitation of the commerce of the
United States, and the equal treatment of all im-
porters of record of imported merchandise.
‘‘(b) RECONCILIATION.—A party that electronically
transmits an entry summary or import activity summary
statement may at the time of filing such summary or
statement notify the Customs Service of his intention to
file a reconciliation pursuant to such regulations as the
Secretary may prescribe. Such reconciliation must be filed
by the importer of record within such time period as is
prescribed by regulation but no later than 15 months fol-
lowing the filing of the entry summary or import activity
summary statement. Before filing a reconciliation, an im-
porter of record shall post bond or other security pursuant
to such regulations as the Secretary may prescribe.
‘‘(c) RELEASE
OF MERCHANDISE.—The Customs
Service may permit the entry and release of merchandise
from customs custody in accordance with such regulations
as the Secretary may prescribe. No officer of the Customs
Service shall be liable to any person with respect to the
delivery of merchandise released from customs custody in
accordance with such regulations.
‘‘(d) SIGNING
AND CONTENTS.—Entries shall be
signed by the importer of record, or his agent, unless filed
pursuant to an electronic data interchange system. If elec-
tronically filed, each transmission of data shall be certified
by an importer of record or his agent, one of whom shall
be resident in the United States for purposes of receiving
service of process, as being true and correct to the best
of his knowledge and belief, and such transmission shall
be binding in the same manner and to the same extent
as a signed document. The entry shall set forth such facts
in regard to the importation as the Secretary may require
and shall be accompanied by such invoices, bills of lading,
certificates, and documents, or their electronically submit-
ted equivalents, as are required by regulation.
‘‘(e) PRODUCTION OF INVOICE.—The Secretary may
provide by regulation for the production of an invoice,
parts thereof, or the electronic equivalents thereof, in such
manner and form, and under such terms and conditions,
as the Secretary considers necessary.
‘‘(f) STATISTICAL ENUMERATION.—The Secretary,
the Secretary of Commerce, and the United States Inter-
national Trade Commission shall establish from time to
time for statistical purposes an enumeration of articles in
such detail as in their judgment may be necessary, com-
prehending all merchandise imported into the United
States and exported from the United States, and shall
seek, in conjunction with statistical programs for domestic
production and programs for achieving international har-
monization of trade statistics, to establish the comparabil-
ity thereof with such enumeration of articles. All import
entries and export declarations shall include or have at-
tached thereto an accurate statement specifying, in terms
of such detailed enumeration, the kinds and quantities of
all merchandise imported and exported and the value of
the total quantity of each kind of article.
‘‘(g) STATEMENT OF COST OF PRODUCTION.—Under
such regulations as the Secretary may prescribe, the Cus-
toms Service may require a verified statement from the
manufacturer or producer showing the cost of producing
the imported merchandise, if the Customs Service consid-
ers such verification necessary for the appraisement of
such merchandise.
‘‘(h) ADMISSIBILITY
OF DATA ELECTRONICALLY
TRANSMITTED.—Any entry or other information transmit-
ted by means of an authorized electronic data interchange
system shall be admissible in any and all administrative
and judicial proceedings as evidence of such entry or infor-
mation.’’.
SEC. 208. APPRAISEMENT AND OTHER PROCEDURES.
Section 500 (19 U.S.C. 1500) is amended—
(1) by striking out ‘‘The appropriate customs
officer’’ and inserting ‘‘The Customs Service’’;
(2) by striking out ‘‘appraise’’ in subsection (a)
and inserting ‘‘fix the final appraisement of’’;
(3) by striking out ‘‘ascertain the’’ in sub-
section (b) and inserting ‘‘fix the final’’;
(4) by amending subsection (c)—
(A) by inserting ‘‘final’’ after ‘‘fix the’’,
and
(B) by inserting ‘‘, taxes, and fees’’ after
‘‘duties’’ wherever it appears; and
(5) by amending subsections (d) and (e) to read
as follows:
‘‘(d) liquidate the entry and reconciliation, if
any, of such merchandise; and
‘‘(e) give or transmit, pursuant to an electronic
data interchange system, notice of such liquidation
to the importer, his consignee, or agent in such form
and manner as the Secretary shall by regulation pre-
scribe.’’.
SEC. 209. VOLUNTARY RELIQUIDATIONS.
Section 501 (19 U.S.C. 1501) is amended—
(1) by striking out ‘‘the appropriate customs of-
ficer on his own initiative’’ and inserting ‘‘the Cus-
toms Service’’;
(2) by inserting ‘‘or transmitted’’ after ‘‘given’’
wherever it appears; and
(3) by amending the section heading to read as
follows:
‘‘SEC. 501. VOLUNTARY RELIQUIDATIONS BY THE CUS-
TOMS SERVICE.’’.
SEC. 210. APPRAISEMENT REGULATIONS.
Section 502 (19 U.S.C. 1502) is amended—
(1) by amending subsection (a)—
(A) by inserting ‘‘(including regulations es-
tablishing procedures for the issuance of bind-
ing rulings prior to the entry of the merchan-
dise concerned)’’ after ‘‘law’’,
(B) by striking out ‘‘ports of entry, and’’
inserting ‘‘ports of entry. The Secretary’’,
(C) by inserting ‘‘or classifying’’ after ‘‘ap-
praising’’ wherever it appears, and
(D) by striking out ‘‘such port’’ and insert-
ing ‘‘any port, and may direct any customs offi-
cer at any port to review entries of merchandise
filed at any other port’’; and
(2) by striking out subsection (b) and redesig-
nating subsection (c) as subsection (b).
SEC. 211. LIMITATION ON LIQUIDATION.
Section 504 (19 U.S.C. 1504) is amended—
(1) by amending subsection (a)—
(A) by striking out ‘‘Except as provided in
subsection (b),’’ and inserting ‘‘Unless an entry
is extended under subsection (b) or suspended
as required by statute or court order,’’,
(B) by striking out ‘‘or’’ at the end of
paragraph (2),
(C) by inserting ‘‘or’’ after the semicolon
at the end of paragraph (3), and
(D) by inserting the following new para-
graph after paragraph (3):
‘‘(4) if a reconciliation is filed, or should have
been filed, the date of the filing under section 484
or the date the reconciliation should have been
filed;’’; and
(2) by amending subsections (b), (c), and (d) to
read as follows:
‘‘(b) EXTENSION.—The Secretary may extend the pe-
riod in which to liquidate an entry if—
‘‘(1) the information needed for the proper ap-
praisement or classification of the merchandise, or
for insuring compliance with applicable law, is not
available to the Customs Service; or
‘‘(2) the importer of record requests such exten-
sion and shows good cause therefor.
The Secretary shall give notice of an extension under this
subsection to the importer of record and the surety of such
importer of record. Notice shall be in such form and man-
ner (which may include electronic transmittal) as the Sec-
retary shall by regulation prescribe. Any entry the liquida-
tion of which is extended under this subsection shall be
treated as having been liquidated at the rate of duty,
value, quantity, and amount of duty asserted at the time
of entry by the importer of record at the expiration of 4
years from the applicable date specified in subsection (a).
‘‘(c) NOTICE OF SUSPENSION.—If the liquidation of
any entry is suspended, the Secretary shall by regulation
require that notice of the suspension be provided, in such
manner as the Secretary considers appropriate, to the im-
porter of record and to any authorized agent and surety
of such importer of record.
‘‘(d) REMOVAL OF SUSPENSION.—When a suspension
required by statute or court order is removed, the Customs
Service shall liquidate the entry within 6 months after re-
ceiving notice of the removal from the Department of
Commerce, other agency, or a court with jurisdiction over
the entry. Any entry not liquidated by the Customs Service
within 6 months after receiving such notice shall be treat-
ed as having been liquidated at the rate of duty, value,
quantity, and amount of duty asserted at the time of entry
by the importer of record.’’.
SEC. 212. PAYMENT OF DUTIES AND FEES.
(a) AMENDMENT
TO SECTION 505.—Section 505
(U.S.C. 1505) is amended to read as follows:
‘‘SEC. 505. PAYMENT OF DUTIES AND FEES.
‘‘(a) DEPOSIT OF ESTIMATED DUTIES, FEES, AND
INTEREST.—Unless merchandise is entered for warehouse
or transportation, or under bond, the importer of record
shall deposit with the Customs Service at the time of mak-
ing entry, or at such later time as the Secretary may pre-
scribe by regulation, the amount of duties and fees esti-
mated to be payable thereon. Such regulations may pro-
vide that estimated duties and fees shall be deposited be-
fore or at the time an import activity summary statement
is filed. If an import activity summary statement is filed,
the estimated duties and fees shall be deposited together
with interest, at a rate determined by the Secretary, ac-
cruing from the first date of the month the statement is
required to be filed until the date such statement is actu-
ally filed.
‘‘(b) COLLECTION OR REFUND OF DUTIES, FEES,
AND INTEREST DUE UPON LIQUIDATION OR RELIQUIDA-
TION.—The Customs Service shall collect any increased or
additional duties and fees due, together with interest
thereon, or refund any excess moneys deposited, together
with interest thereon, as determined on a liquidation or
reliquidation. Duties, fees, and interest determined to be
due upon liquidation or reliquidation are due 30 days after
issuance of the bill for such payment. Refunds of excess
moneys deposited, together with interest thereon, shall be
paid within 30 days of liquidation or reliquidation.
‘‘(c) INTEREST.—Interest assessed due to an
underpayment of duties, fees, or interest shall accrue, at
a rate determined by the Secretary, from the date the im-
porter of record is required to deposit estimated duties,
fees, and interest to the date of liquidation or reliquidation
of the applicable entry or reconciliation. Interest on excess
moneys deposited shall accrue, at a rate determined by
the Secretary, from the date the importer of record depos-
its estimated duties, fees, and interest to the date of liq-
uidation or reliquidation of the applicable entry or rec-
onciliation.
‘‘(d) DELINQUENCY.—If duties, fees, and interest de-
termined to be due or refunded are not paid in full within
the 30-day period specified in subsection (b), any unpaid
balance shall be considered delinquent and bear interest
by 30-day periods, at a rate determined by the Secretary,
from the date of liquidation or reliquidation until the full
balance is paid. No interest shall accrue during the 30-
day period in which payment is actually made.’’.
(b) CONFORMING AMENDMENT.—Subsection (d) of
section 520 (19 U.S.C. 1520(d)) is repealed.
SEC. 213. ABANDONMENT AND DAMAGE.
Section 506 (19 U.S.C. 1506) is amended—
(1) by striking out ‘‘the appropriate customs of-
ficer’’ and ‘‘such customs officer’’ wherever they ap-
pear and inserting ‘‘the Customs Service’’;
(2) by amending paragraph (1)—
(A) by striking out ‘‘not sent to the ap-
praiser’s stores for’’ and inserting ‘‘released
without an’’,
(B) by striking out ‘‘of the examination
packages or quantities of merchandise’’,
(C) by striking out ‘‘the appraiser’s stores’’
and inserting ‘‘the Customs Service’’, and
(D) by inserting ‘‘or entry’’ after ‘‘in-
voice’’, and
(3) by amending paragraph (2)—
(A) by inserting ‘‘, electronically or other-
wise,’’ after ‘‘files’’, and
(B) by striking out ‘‘written’’.
SEC. 214. CUSTOMS OFFICER’S IMMUNITY.
Section 513 (19 U.S.C. 1513) is amended to read as
follows:
‘‘SEC. 513. CUSTOMS OFFICER’S IMMUNITY.
‘‘No customs officer shall be liable in any way to any
person for or on account of—
‘‘(1) any ruling or decision regarding the ap-
praisement or the classification of any imported
merchandise or regarding the duties, fees, and taxes
charged thereon,
‘‘(2) the collection of any dues, charges, duties,
fees, and taxes on or on account of any imported
merchandise, or
‘‘(3) any other matter or thing as to which any
person might under this Act be entitled to protest or
appeal from the decision of such officer.’’.
SEC. 215. PROTESTS.
Section 514 (19 U.S.C. 1514) is amended—
(1) by amending subsection (a)—
(A) by striking out ‘‘appropriate customs
officer’’ in the text preceding paragraph (1) and
inserting ‘‘Customs Service’’,
(B) by inserting ‘‘or reconciliation as to
the issues contained therein,’’ after ‘‘entry,’’ in
paragraph (5),
(C) by striking out ‘‘and’’ and inserting
‘‘or’’ at the end of paragraph (6),
(D) by striking out the comma at the end
of paragraph (7) and inserting a semicolon, and
(E) by striking out ‘‘appropriate customs
officer, who’’ in the text following paragraph
(7) and inserting ‘‘Customs Service, which’’;
(2) by amending subsection (b) by striking out
‘‘appropriate customs officer’’ and inserting ‘‘Cus-
toms Service’’;
(3) by amending the first sentence of subsection
(c)(1) to read as follows: ‘‘A protest of a decision
made under subsection (a) shall be filed in writing,
or transmitted electronically pursuant to an elec-
tronic data interchange system, in accordance with
regulations prescribed by the Secretary. A protest
must set forth distinctly and specifically—
‘‘(A) each decision described in subsection
(a) as to which protest is made;
‘‘(B) each category of merchandise affected
by each decision set forth under paragraph (1);
‘‘(C) the nature of each objection and the
reasons therefor; and
‘‘(D) any other matter required by the Sec-
retary by regulation.’’;
(4) by redesignating paragraph (2) of sub-
section (c) as paragraph (3) and by striking out
‘‘such customs officer’’ in such redesignated para-
graph and inserting ‘‘the Customs Service’’;
(5) by designating the last sentence of para-
graph (1) of subsection (c) as paragraph (2);
(6) by striking out ‘‘customs officer’’ in sub-
section (d) and inserting ‘‘Customs Service’’; and
(7) by amending the section heading to read as
follows:
‘‘SEC. 514. PROTEST AGAINST DECISIONS OF THE CUS-
TOMS SERVICE.’’.
SEC. 216. REFUNDS AND ERRORS.
Section 520 (19 U.S.C. 1520) is amended—
(1) by inserting ‘‘or reconciliation’’ after
‘‘entry’’ in paragraphs (1) and (4) of subsection (a);
and
(2) by amending subsection (c)—
(A) by striking out ‘‘appropriate customs
officer’’ wherever it appears and inserting
‘‘Customs Service’’,
(B) by inserting ‘‘or reconciliation’’ after
‘‘reliquidate an entry’’, and
(C) by inserting ‘‘, whether or not result-
ing from or contained in electronic trans-
mission,’’ after ‘‘inadvertence’’ the first place it
appears in paragraph (1).
SEC. 217. BONDS AND OTHER SECURITY.
Section 623 (19 U.S.C. 1623) is amended—
(1) by inserting ‘‘and the manner in which the
bond may be filed with or, pursuant to an author-
ized electronic data interchange system, transmitted
to the Customs Service’’ after ‘‘form of such bond’’
in subsection (b)(1); and
(2) by inserting at the end of subsection (d) the
following new sentence: ‘‘Any bond transmitted to
the Customs Service pursuant to an authorized elec-
tronic data interchange system shall have the same
force and effect and be binding upon the parties
thereto as if such bond were manually executed,
signed, and filed.’’.
SEC. 218. CUSTOMHOUSE BROKERS.
Section 641 (19 U.S.C. 1641) is amended—
(1) by adding at the end of subsection (a)(2)
the following new sentence: ‘‘It also includes the
preparation of documents or forms in any format
and the electronic transmission of documents, in-
voices, bills, or parts thereof, intended to be filed
with the Customs Service in furtherance of such ac-
tivities, whether or not signed or filed by the pre-
parer, or activities relating to such preparation, but
does not include the mere electronic transmission of
data received for transmission to Customs.’’;
(2) by amending subsection (c)(1) to read as
follows:
‘‘(1) IN GENERAL.—Each person granted a cus-
toms broker’s license under subsection (b) shall be
issued, in accordance with such regulations as the
Secretary shall prescribe, either or both of the fol-
lowing:
‘‘(A) A national permit for the conduct of
such customs business as the Secretary pre-
scribes by regulation.
‘‘(B) A permit for each customs district in
which that person conducts customs business
and, except as provided in paragraph (2), regu-
larly employs at least 1 individual who is li-
censed under subsection (b)(2) to exercise re-
sponsible supervision and control over the cus-
toms business conducted by that person in that
district.’’;
(3) by inserting at the end of subsection (c) the
following new paragraph:
‘‘(4) APPOINTMENT OF SUBAGENTS.—Notwith-
standing subsection (c)(1), upon the implementation
by the Secretary under section 413(b)(2) of the com-
ponent of the National Customs Automation Pro-
gram referred to in section 411(a)(2)(B), a licensed
broker may appoint another licensed broker holding
a permit in a customs district to act on its behalf
as its subagent in that district if such activity re-
lates to the filing of information that is permitted by
law or regulation to be filed electronically. A licensed
broker appointing a subagent pursuant to this para-
graph shall remain liable for any and all obligations
arising under bond and any and all duties, taxes,
and fees, as well as any other liabilities imposed by
law, and shall be precluded from delegating to a
subagent such liability.’’;
(4) by amending subsection (d)(2)(B)—
(A) by striking out ‘‘appropriate customs
officer’’ and inserting ‘‘Customs Service’’ in the
first and third sentences,
(B) by striking out ‘‘he’’ and inserting ‘‘it’’
in the third sentence,
(C) by striking out ‘‘15 days’’ and insert-
ing ‘‘30 days’’ in the third sentence,
(D) by striking out ‘‘the appropriate cus-
toms officer and the customs broker; they’’ and
inserting ‘‘the Customs Service and the customs
broker; which’’ in the sixth sentence,
(E) by striking out ‘‘his’’ and inserting
‘‘the’’ in the seventh sentence, and
(F) by striking out ‘‘for his decision’’ and
inserting ‘‘for the decision’’ in the eighth sen-
tence; and
(5) by amending subsection (f) by striking out
‘‘United States Customs Service.’’ and inserting
‘‘Customs Service. The Secretary may not prohibit
customs brokers from limiting their liability to other
persons in the conduct of customs business. For pur-
poses of this subsection or any other provision of
this Act pertaining to recordkeeping, all data re-
quired to be retained by a customs broker may be
kept on microfilm, optical disc, magnetic tapes, disks
or drums, video files or any other electrically gen-
erated medium. Pursuant to such regulations as the
Secretary shall prescribe, the conversion of data to
such storage medium may be accomplished at any
time subsequent to the relevant customs transaction
and the data may be retained in a centralized basis
according to such broker’s business system.’’.
SEC. 219. CONFORMING AMENDMENTS.
(a) PLACE OF ENTRY AND UNLADING.—Section 447
(19 U.S.C. 1447) is amended by striking out ‘‘the appro-
priate customs officer shall consider’’ and inserting ‘‘the
Customs Service considers’’.
(b) UNLADING.—Section 449 (19 U.S.C. 1449) is
amended by striking out ‘‘appropriate customs officer of
such port issues a permit for the unlading of such mer-
chandise or baggage,’’ and inserting ‘‘Customs Service is-
sues a permit for the unlading of such merchandise or
baggage at such port,’’.
TITLE 
III—MISCELLANEOUS
AMENDMENTS TO THE TAR-
IFF ACT OF 1930
SEC. 301. REPORT OF ARRIVAL.
Section 433 (19 U.S.C. 1433) is amended—
(1) by amending subsection (a)(1)—
(A) by striking out ‘‘or’’ at the end of sub-
paragraph (B),
(B) by inserting ‘‘or’’ after the semicolon
at the end of subparagraph (C), and
(C) by adding after subparagraph (C) the
following:
‘‘(D) any vessel which has visited a hover-
ing vessel or received merchandise while outside
the territorial sea;’’;
(2) by striking out ‘‘present to customs officers
such’’ in subsection (d) and inserting ‘‘present, or
transmit pursuant to an electronic data interchange
system, to the Customs Service such information,
data,’’; and
(3) by amending subsection (e) to read as fol-
lows:
‘‘(e) PROHIBITION
ON
DEPARTURES
AND
DIS-
CHARGE.—Unless otherwise authorized by law, a vessel,
aircraft or vehicle after arriving in the United States or
Virgin Islands may, but only in accordance with regula-
tions prescribed by the Secretary—
‘‘(1) depart from the port, place, or airport of
arrival; or
‘‘(2) discharge any passenger or merchandise
(including baggage).’’.
100
SEC. 302. ENTRY OF VESSELS.
Section 434 (19 U.S.C. 1434) amended to read as
follows:
‘‘SEC. 434. ENTRY; VESSELS.
‘‘(a) FORMAL ENTRY.—Within 24 hours (or such
other period of time as may be provided under subsection
(c)(2)) after the arrival at any port or place in the United
States of—
‘‘(1) any vessel from a foreign port or place;
‘‘(2) any foreign vessel from a domestic port;
‘‘(3) any vessel of the United States having on
board bonded merchandise or foreign merchandise
for which entry has not been made; or
‘‘(4) any vessel which has visited a hovering
vessel or has delivered or received merchandise while
outside the territorial sea;
the master of the vessel shall, unless otherwise provided
by law, make formal entry at the nearest customs facility
or such other place as the Secretary may prescribe by reg-
ulation.
‘‘(b) PRELIMINARY ENTRY.—The Secretary may by
regulation permit the master to make preliminary entry
of the vessel with the Customs Service in lieu of formal
entry or before formal entry is made. In permitting pre-
liminary entry, the Customs Service shall board a suffi-
101
cient number of vessels to ensure compliance with the laws
it enforces.
‘‘(c) REGULATIONS.—The Secretary may by regula-
tion—
‘‘(1) prescribe the manner and format in which
entry under subsection (a) or subsection (b), or
both, must be made, and such regulations may pro-
vide that any such entry may be made electronically
pursuant to an electronic data interchange system;
‘‘(2) provide that—
‘‘(A) formal entry must be made within a
greater or lesser time than 24 hours after arriv-
al, but in no case more than 48 hours after ar-
rival, and
‘‘(B) formal entry may be made before ar-
rival; and
‘‘(3) authorize the Customs Service to permit
entry or preliminary entry of any vessel to be made
at a place other than a designated port of entry,
under such conditions as may be prescribed.’’.
SEC. 303. UNLAWFUL RETURN OF FOREIGN VESSEL PA-
PERS.
Section 438 (19 U.S.C. 1438) is amended—
(1) by striking out ‘‘section 435’’ and inserting
‘‘section 434’’;
102
(2) by inserting ‘‘, or regulations issued there-
under,’’ after ‘‘of this Act’’; and
(3) by striking out ‘‘the appropriate customs of-
ficer of the port where such vessel has been en-
tered.’’ and inserting ‘‘the Customs Service in the
port in which such vessel has entered.’’.
SEC. 304. VESSELS NOT REQUIRED TO ENTER.
Section 441 (19 U.S.C. 1441) is amended—
(1) by amending the text preceding paragraph
(1) to read as follows: ‘‘The following vessels shall
not be required to make entry under section 434 or
to obtain clearance under section 4197 of the Re-
vised Statutes of the United States (46 U.S.C. App.
91):’’;
(2) by amending paragraph (3) to read as fol-
lows:
‘‘(3) Any vessel carrying passengers on excursion
from the United States Virgin Islands to the British Vir-
gin Islands and returning, if—
‘‘(A) the vessel does not in any way violate the
customs or navigation laws of the United States;
‘‘(B) the vessel has not visited any hovering
vessel; and
‘‘(C) the master of the vessel, if there is on
board any article required by law to be entered, re-
103
ports the article to the Customs Service immediately
upon arrival.’’;
(3) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively, and inserting
after paragraph (3) the following:
‘‘(4) Any United States documented vessel with rec-
reational endorsement or any undocumented United
States pleasure vessel not engaged in trade, if—
‘‘(A) the vessel complies with the reporting re-
quirements of section 433, and with the customs and
navigation laws of the United States;
‘‘(B) the vessel has not visited any hovering
vessel; and
‘‘(C) the master of, and any other person on
board, the vessel, if the master or such person has
on board any article required by law to be entered
or declared, reports such article to the Customs
Service immediately upon arrival;’’; and
(4) by amending the section heading to read as
follows:
‘‘SEC. 441. EXCEPTIONS TO VESSEL ENTRY AND CLEAR-
ANCE REQUIREMENTS.’’.
SEC. 305. UNLADING.
Section 448(a) (19 U.S.C. 1448(a)) is amended—
(1) by amending the first sentence—
104
(A) by striking out ‘‘enter)’’ and inserting
‘‘enter or clear)’’,
(B) by striking out ‘‘or vehicle arriving
from a foreign port or place’’ and inserting ‘‘re-
quired to make entry under section 434, or ve-
hicle required to report arrival under section
433,’’,
(C) by inserting ‘‘or transmitted pursuant
to an electronic data interchange system’’ after
‘‘issued’’, and
(D) by striking out the colon after ‘‘offi-
cer’’ and the proviso and inserting a period;
(2) by amending the second sentence—
(A) by striking out ‘‘, preliminary or other-
wise,’’, and
(B) by inserting ‘‘, electronically pursuant
to an authorized electronic data interchange
system or otherwise,’’ after ‘‘may issue a per-
mit’’;
(3) by striking out the last sentence and insert-
ing the following: ‘‘The owner or master of any ves-
sel or vehicle, or agent thereof, shall notify the Cus-
toms Service of any merchandise or baggage so un-
laden for which entry is not made within the time
prescribed by law or regulation. The Secretary shall
105
by regulation prescribe administrative penalties not
to exceed $1,000 for each bill of lading for which no-
tice is not given. Any such administrative penalty
shall be subject to mitigation and remittance under
section 618. Such unentered merchandise or bag-
gage shall be the responsibility of the master or per-
son in charge of the importing vessel or vehicle, or
agent thereof, until it is removed from the carrier’s
control in accordance with section 490.’’; and
(4) by striking out ‘‘the appropriate customs of-
ficer’’ and ‘‘such customs officer’’ wherever they ap-
pear and inserting ‘‘the Customs Service’’.
SEC. 306. DECLARATIONS.
Section 485 (19 U.S.C. 1485) is amended—
(1) by amending subsection (a)—
(A) by inserting ‘‘or transmit electroni-
cally’’ after ‘‘file’’, and
(B) by inserting ‘‘and manner’’ after
‘‘form’’;
(2) by amending subsection (d)—
(A) by striking out ‘‘A importer’’ and in-
serting ‘‘An importer’’, and
(B) by striking out ‘‘a importer’’ and in-
serting ‘‘an importer’’; and
106
(3) by inserting after subsection (f) the follow-
ing new subsection:
‘‘(g) EXPORTED
MERCHANDISE
RETURNED
AS
UNDELIVERABLE.—With respect to any importation of
merchandise to which General Headnote 4(e) of the Har-
monized Tariff Schedule of the United States applies, any
person who gained any benefit from, or met any obligation
to, the United States as a result of the prior exportation
of such merchandise shall, in accordance with regulations
prescribed by the Secretary, within a reasonable time in-
form the Customs Service of the return of the merchan-
dise.’’.
SEC. 307. GENERAL ORDERS.
Section 490 (19 U.S.C. 1490) is amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) INCOMPLETE ENTRY.—
‘‘(1) Whenever—
‘‘(A) the entry of any imported merchan-
dise is not made within the time provided by
law or by regulation prescribed by the Sec-
retary;
‘‘(B) the entry of imported merchandise is
incomplete because of failure to pay the esti-
mated duties, fees, or interest;
107
‘‘(C) in the opinion of the Customs Serv-
ice, the entry of imported merchandise cannot
be made for want of proper documents or other
cause; or
‘‘(D) the Customs Service believes that any
merchandise is not correctly and legally
invoiced;
the carrier (unless subject to subsection (c)) shall
notify the bonded warehouse of such unentered mer-
chandise.
‘‘(2) After notification under paragraph (1), the
bonded warehouse shall arrange for the transpor-
tation and storage of the merchandise at the risk
and expense of the consignee. The merchandise shall
remain in the bonded warehouse until—
‘‘(A) entry is made or completed and the
proper documents are produced;
‘‘(B) the information and data necessary
for entry are transmitted to the Customs Serv-
ice pursuant to an authorized electronic data
interchange system; or
‘‘(C) a bond is given for the production of
documents or the transmittal of data.’’;
(2) by amending subsection (b)—
108
(A) by amending the heading for sub-
section (b) to read as follows: ‘‘(b) REQUEST
FOR POSSESSION
BY CUSTOMS.—’’, and
(B) by striking out ‘‘appropriate customs
officer’’ and inserting ‘‘Customs Service’’; and
(3) by adding at the end the following new sub-
section:
‘‘(c) GOVERNMENT MERCHANDISE.—Any imported
merchandise that—
‘‘(1) is described in any of paragraphs (1)
through (4) of subsection (a); and
‘‘(2) is consigned to, or owned by, the United
States Government;
shall be stored and disposed of in accordance with such
rules and procedures as the Secretary shall by regulation
prescribe.’’.
SEC. 308. UNCLAIMED MERCHANDISE.
Section 491 (19 U.S.C. 1491) is amended—
(1) by amending subsection (a)—
(A) by striking out ‘‘customs custody for
one year’’ in the first sentence and inserting ‘‘in
a bonded warehouse pursuant to section 490 for
6 months’’,
(B) by striking out ‘‘public store or bonded
warehouse for a period of one year’’ in the sec-
109
ond sentence and inserting ‘‘pursuant to section
490 in a bonded warehouse for 6 months’’,
(C) by striking out ‘‘estimated duties and
storage’’ in the first sentence and inserting ‘‘es-
timated duties, taxes, fees, interest, storage,’’,
(D) by inserting ‘‘taxes, fees, interest,’’
after ‘‘duties,’’ wherever it appears, and
(E) by striking out ‘‘duties’’ in the last
sentence and inserting ‘‘duties, taxes, interest,
and fees’’; and
(2) by redesignating subsection (b) as sub-
section (e) and inserting after subsection (a) the fol-
lowing new subsections:
‘‘(b) NOTICE OF TITLE VESTING IN THE UNITED
STATES.—At the end of the 6-month period referred to
in subsection (a), the Customs Service may, in lieu of sale
of the merchandise, provide notice to all known interested
parties that the title to such merchandise shall be consid-
ered to vest in the United States free and clear of any
liens or encumbrances, on the 30th day after the date of
the notice unless, before such 30th day—
‘‘(1) the subject merchandise is entered or with-
drawn for consumption; and
110
‘‘(2) payment is made of all duties, taxes, fees,
transfer and storage charges, and other expenses
that may have accrued thereon.
‘‘(c) RETENTION, TRANSFER, DESTRUCTION, OR
OTHER DISPOSITION.—If title to any merchandise vests
in the United States by operation of subsection (b), such
merchandise may be retained by the Customs Service for
official use, transferred to any other Federal agency or
to any State or local agency, destroyed, or otherwise dis-
posed of in accordance with such regulations as the Sec-
retary shall prescribe. All transfer and storage charges or
expenses accruing on transferred merchandise shall be
paid by the receiving agency, otherwise the charges and
expenses on such merchandise shall be paid out of the
Customs Forfeiture Fund.
‘‘(d) PETITION.—Whenever any party, having lost a
substantial interest in merchandise by virtue of title vest-
ing in the United States under subsection (b), can estab-
lish such title or interest to the satisfaction of the Sec-
retary within 30 days after the day on which title vests
in the United States under subsection (b), or can establish
to the satisfaction of the Secretary that the party did not
receive notice under subsection (b), the Secretary may,
upon receipt of a timely and proper petition and upon
finding that the facts and circumstances warrant, pay
111
such party out of the Customs Forfeiture Fund the
amount the Secretary believes the party would have re-
ceived under section 493 had the merchandise been sold
and a proper claim filed. The decision of the Secretary
with respect to any such petition is final and conclusive
on all parties.’’; and
(3) by amending subsection (e) (as so redesig-
nated) by striking out ‘‘appropriate customs officer’’
in paragraph (3) and inserting ‘‘Customs Service’’.
SEC. 309. DESTRUCTION OF MERCHANDISE.
Section 492 (19 U.S.C. 1492) is amended—
(1) by inserting ‘‘, retained for official use, or
otherwise disposed of’’ after ‘‘destroyed’’; and
(2) by striking out ‘‘appropriate customs offi-
cer’’ and inserting ‘‘Customs Service’’.
SEC. 310. PROCEEDS OF SALE.
Section 493 (19 U.S.C. 1493) is amended—
(1) by inserting ‘‘taxes, and fees,’’ after ‘‘du-
ties,’’;
(2) by striking out ‘‘by the appropriate customs
officer in the Treasury of the United States’’ and in-
serting ‘‘in the Customs Forfeiture Fund’’; and
(3) by striking out ‘‘such customs officer’’ and
inserting ‘‘the Customs Service’’.
114
‘‘(E) the payment of transfer and storage
charges and expenses under section 491(c);
‘‘(F) the payment of claims against em-
ployees of the Customs Service settled by the
Secretary under section 630;’’; and
(3) by striking out ‘‘shall’’ in subsection (d)
and inserting ‘‘may’’.
(b) REFERENCE.—After the effective date of section
9703 of title 31, United States Code, any reference in the
Tariff Act of 1930 to the Customs Forfeiture Fund shall
be treated as being a reference to the Department of the
Treasury Forfeiture Fund established by such section
9703.
SEC. 315. LIMITATION ON ACTIONS.
Section 621 (19 U.S.C. 1621) is amended—
(1) by inserting ‘‘any duty under section
592(d), 593A(d), or’’ before ‘‘any pecuniary pen-
alty’’; and
(2) by striking out ‘‘discovered:’’ and all that
follows 
thereafter 
and 
inserting 
the 
follow-
ing: ‘‘discovered; except that—
‘‘(1) in the case of an alleged violation of sec-
tion 592 or 593A, no suit or action (including a suit
or action for restoration of lawful duties under sub-
section (d) of such sections) may be instituted unless
115
commenced within 5 years after the date of the al-
leged violation or, if such violation arises out of
fraud, within 5 years after the date of discovery of
fraud, and
‘‘(2) the time of the absence from the United
States of the person subject to the penalty or forfeit-
ure, or of any concealment or absence of the prop-
erty, shall not be reckoned within the 5-year period
of limitation.’’.
SEC. 316. COLLECTION OF FEES ON BEHALF OF OTHER
AGENCIES.
The Tariff Act of 1930 is amended by inserting after
section 528 the following new section:
‘‘SEC. 529. COLLECTION OF FEES ON BEHALF OF OTHER
AGENCIES.
‘‘The Customs Service shall be reimbursed from the
fees collected for the cost and expense, administrative and
otherwise, incurred in collecting any fees on behalf of any
government agency for any reason.’’.
SEC. 317. AUTHORITY TO SETTLE CLAIMS.
The Tariff Act of 1930 is amended by inserting after
section 629 the following new section:
‘‘SEC. 630. AUTHORITY TO SETTLE CLAIMS.
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law and subject to subsection (b), the Secretary
116
may settle, for not more than $50,000 in any one case,
a claim for personal injury, death, or damage to, or loss
of, privately owned property caused by an investigative or
law enforcement officer (as defined in section 2680(h) of
title 28, United States Code) who is employed by the
Customs Service and acting within the scope of his or her
employment.
‘‘(b) LIMITATIONS.—The Secretary may not pay a
claim under subsection (a) that—
‘‘(1) concerns commercial property;
‘‘(2) is presented to the Secretary more than 1
year after it occurs; or
‘‘(3) is presented by an officer or employee of
the United States Government and arose within the
scope of employment.
‘‘(c) FINAL SETTLEMENT.—A claim may be paid
under this section only if the claimant accepts the amount
of settlement in complete satisfaction of the claim.’’.
SEC. 318. USE OF PRIVATE COLLECTION AGENCIES.
The Tariff Act of 1930 is amended by inserting after
section 630 the following new section:
‘‘SEC. 631. USE OF PRIVATE COLLECTION AGENCIES.
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, the Secretary, under such terms and condi-
tions as the Secretary considers appropriate, shall enter
117
into contracts and incur obligations with one or more per-
sons for collection services to recover indebtedness arising
under the customs laws and owed the United States Gov-
ernment, but only after the Customs Service has ex-
hausted all administrative efforts, including all claims
against applicable surety bonds, to collect the indebted-
ness.
‘‘(b) CONTRACT REQUIREMENTS.—Any contract en-
tered into under subsection (a) shall provide that—
‘‘(1) the Secretary retains the authority to re-
solve a dispute, compromise a claim, end collection
action, and refer a matter to the Attorney General
to bring a civil action; and
‘‘(2) the person is subject to—
‘‘(A) section 552a of title 5, United States
Code, to the extent provided in subsection (m)
of such section; and
‘‘(B) laws and regulations of the United
States Government and State governments re-
lated to debt collection practices.’’.
118
TITLE 
IV—MISCELLANEOUS
PROVISIONS 
AND 
CON-
SEQUENTIAL AND CONFORM-
ING AMENDMENTS TO OTHER
LAWS
SEC. 401. AMENDMENTS TO THE HARMONIZED TARIFF
SCHEDULE.
(a) RETURN SHIPMENTS.—General Note 4 of the
Harmonized Tariff Schedule of the United States is
amended—
(1) by striking out ‘‘and’’ at the end of subdivi-
sion (c);
(2) by inserting ‘‘and’’ after ‘‘1930,’’ in subdivi-
sion (d);
(3) by inserting after subdivision (d) the
following:
‘‘(e) articles exported from the United States
which are returned within 45 days after such expor-
tation from the United States as undeliverable and
which have not left the custody of the carrier or for-
eign customs service,’’; and
(4) by adding at the end the following new sen-
tence: ‘‘No exportation referred to in subdivision (e)
may be treated as satisfying any requirement for ex-
portation in order to receive a benefit from, or meet
119
an obligation to, the United States as a result of
such exportation.’’.
(b) ENTRY NOT REQUIRED FOR LOCOMOTIVES AND
RAILWAY FREIGHT CARS.—
(1) The Notes to chapter 86 of such Schedule
are amended by inserting after note 3 the following
new note:
‘‘4. Railway locomotives (provided for in headings 8601
and 8602) and railway freight cars (provided for in head-
ing 8606) on which no duty is owed are not subject to
the entry or release requirements for imported merchan-
dise set forth in sections 448 and 484 of the Tariff Act
of 1930. The Secretary of the Treasury may by regulation
establish appropriate reporting requirements, including
the requirement that a bond be posted to ensure compli-
ance.’’.
(2) The U.S. Notes to subchapter V of chapter
99 of such Schedule are amended by inserting after
note 8 the following new note:
‘‘9. Railway freight cars provided for in subheadings
9905.86.05 and 9905.86.10 are not subject to the entry
or release requirements for imported merchandise set
forth in sections 448 and 484 of the Tariff Act of 1930.
The Secretary of the Treasury may by regulation establish
120
appropriate reporting requirements, including the require-
ment that a bond be posted to ensure compliance.’’.
(c) INSTRUMENTS OF INTERNATIONAL TRAFFIC.—
The U.S. Notes to subchapter III of chapter 98 of such
Schedule is amended by inserting after note 3 the follow-
ing new note:
‘‘4. Instruments of international traffic, such as contain-
ers, life vans, rail cars and locomotives, truck cabs and
trailers, etc. are exempt from formal entry procedures but
are required to be accounted for when imported and ex-
ported into and out of the United States, respectively,
through the manifesting procedures required for all inter-
national carriers by the United States Customs Service.
Fees associated with the importation of such instruments
of international traffic shall be reported and paid on a
periodic basis as required by regulations issued by the Sec-
retary of the Treasury and in accordance with 1956 Cus-
toms Convention on Containers (20 UST 30; TIAS
6634).’’.
SEC. 402. AMENDMENT TO THE INTERNAL REVENUE CODE
OF 1986.
Section 9505(c) of the Internal Revenue Code of
1986 is amended to read as follows:
‘‘(c) EXPENDITURES FROM THE HARBOR MAINTE-
NANCE TRUST FUND.—
121
‘‘(1) Amounts in the Harbor Maintenance
Trust Fund shall be available, as provided by appro-
priations Acts, for making expenditures—
‘‘(A) to carry out section 210(a) of the
Water Resources Development Act of 1986 (as
amended by the Water Resources Development
Act of 1990),
‘‘(B) for payments of rebates of tolls or
charges pursuant to section 13(b) of the Act of
May 13, 1954 (as in effect on April 1, 1987),
and
‘‘(C) for the payments of all administrative
expenses incurred by the Department of the
Army, the Department of the Treasury and the
Department of Commerce in administering the
tax imposed by section 4461.
‘‘(2) There are authorized to be appropriated to
the Department of the Army, out of the Harbor
Maintenance Trust Fund established by subsection
(a), for each fiscal year not to exceed $5,000,000 to
be used by the Department of the Army to provide
payment of all administrative expenses incurred by
the Department of the Army, the Department of the
Treasury, and the Department of Commerce in ad-
ministering the tax imposed by section 4461.’’.
122
SEC. 403. AMENDMENTS TO TITLE 28, UNITED STATES
CODE.
(a) AMENDMENTS RELATING TO ACCREDITATION OF
PRIVATE LABORATORIES.—Title 28 of the United States
Code is amended as follows:
(1) Section 1581(g) is amended by—
(A) striking out ‘‘and’’ at the end of para-
graph (1);
(B) by striking out the period at the end
of paragraph (2) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(3) any decision or order of the Customs Serv-
ice to deny, suspend, or revoke accreditation of a
private laboratory under section 499(b) of the Tariff
Act of 1930.’’.
(2) Section 2631(g) is amended by inserting at
the end the following new paragraph:
‘‘(3) A civil action to review any decision or order
of the Customs Service to deny, suspend, or revoke accred-
itation of a private laboratory under section 499(b) of the
Tariff Act of 1930 may be commenced in the Court of
International Trade by the person whose accreditation was
denied, suspended, or revoked.’’.
(3) Section 2636 is amended—
(A) by redesignating subsection (h) as sub-
section (i); and
123
(B) by inserting after subsection (g) the
following new subsection:
‘‘(h) A civil action contesting the denial, suspension,
or revocation by the Customs Service of a private labora-
tory’s accreditation under section 499(b) of the Tariff Act
of 1930 is barred unless commenced in accordance with
the rules of the Court of International Trade within 60
days after the date of the decision or order of the Customs
Service.’’.
(4) Section 2640 is amended—
(A) by redesignating subsection (d) as sub-
section (e); and
(B) by inserting after subsection (c) the
following new subsection:
‘‘(d) In any civil action commenced to review any
order or decision of the Customs Service under section
499(b) of the Tariff Act of 1930, the court shall review
the action on the basis of the record before the Customs
Service at the time of issuing such decision or order.’’.
(5) Section 2642 is amended by inserting before
the period the following: ‘‘or laboratories accredited
by the Customs Service under section 499(b) of the
Tariff Act of 1930’’.
(b) APPLICATION
OF
SUBSECTION
(a) AMEND-
MENTS.—For purposes of applying the amendments made
124
by subsection (a), any decision or order of the Customs
Service denying, suspending, or revoking the accreditation
of a private laboratory on or after the date of the enact-
ment of this Act and before regulations to implement sec-
tion 499(b) of the Tariff Act of 1930 are issued shall be
treated as having been denied, suspended, or revoked
under such section 499(b).
(c) JURISDICTION OF COURT.—Section 1582(1) of
title 28, United States Code, is amended by inserting
‘‘593A,’’ after ‘‘592,’’.
(d) FILING
OF
OFFICIAL
DOCUMENTS.—Section
2635(a) of title 28, United States Code, is amended to
read as follows:
‘‘(a) In any action commenced in the Court of Inter-
national Trade contesting the denial of a protest under
section 515 of the Tariff Act of 1930 or the denial of a
petition under section 516 of such Act, the Customs Serv-
ice, as prescribed by the rules of the court, shall file with
the clerk of the court, as part of the official record, any
document, paper, information or data relating to the entry
of merchandise and the administrative determination that
is the subject of the protest or petition.’’.
125
SEC. 404. AMENDMENTS TO THE REVISED STATUTES OF
THE UNITED STATES.
(a) ENROLLED
OR LICENSED VESSELS.—Section
2793 of the Revised Statutes of the United States (19
U.S.C. 288; 46 U.S.C. App. 111, 123) is amended by
striking out the first semicolon and all the text that follows
thereafter and inserting a period.
(b) REGISTERED VESSELS AT FOREIGN PORTS.—
Section 3126 of such Revised Statutes (19 U.S.C. 293)
is amended—
(1) by striking out ‘‘Any vessel, on being duly
registered in pursuance of the laws of the United
States,’’ and inserting ‘‘Any United States docu-
mented vessel with a registry and coastwise endorse-
ments’’; and
(2) by striking out all the text occurring after
the first sentence.
(c) CLEARANCE REQUIREMENTS.—Section 4197 of
such Revised Statutes (46 U.S.C. App. 91) is amended
to read as follows:
‘‘SEC. 4197. CLEARANCE; VESSELS.
‘‘(a) WHEN REQUIRED; VESSELS OF THE UNITED
STATES.—Except as otherwise provided by law, any vessel
of the United States shall obtain clearance from the Cus-
toms Service before proceeding from a port or place in
the United States—
126
‘‘(1) for a foreign port or place;
‘‘(2) for another port or place in the United
States if the vessel has on board bonded merchan-
dise or foreign merchandise for which entry has not
been made; or
‘‘(3) outside the territorial sea to visit a hover-
ing vessel or to receive merchandise while outside
the territorial sea.
‘‘(b) WHEN REQUIRED; OTHER VESSELS.—Except
as otherwise provided by law, any vessel that is not a ves-
sel of the United States shall obtain clearance from the
Customs Service before proceeding from a port or place
in the United States—
‘‘(1) for a foreign port or place;
‘‘(2) for another port or place in the United
States; or
‘‘(3) outside the territorial sea to visit a hover-
ing vessel or to receive or deliver merchandise while
outside the territorial sea.
‘‘(c) REGULATIONS.—The Secretary of the Treasury
may by regulation—
‘‘(1) prescribe the manner in which clearance
under this section is to be obtained, including the
documents, data or information which shall be sub-
127
mitted or transmitted, pursuant to an authorized
data interchange system, to obtain the clearance;
‘‘(2) permit the Customs Service to grant clear-
ance for a vessel under this section before all re-
quirements for clearance are complied with, but only
if the owner or operator of the vessel files a bond
in an amount set by the Secretary of the Treasury
conditioned upon the compliance by the owner or op-
erator with all specified requirements for clearance
within a time period (not exceeding 4 business days)
established by the Secretary of the Treasury; and
‘‘(3) authorize the Customs Service to permit
clearance of any vessel to be obtained at a place
other than a designated port of entry, under such
conditions as he may prescribe.’’.
SEC. 405. AMENDMENTS TO TITLE 18, UNITED STATES
CODE.
Section 965(a) of title 18, United States Code, is
amended—
(1) by striking out ‘‘sections 91, 92, and 94 of
Title 46’’ and inserting ‘‘section 431 of the Tariff
Act of 1930 (19 U.S.C. 1431) and section 4197 of
the Revised Statutes of the United States (46
U.S.C. App. 91),’’;
128
(2) by striking out ‘‘the collector of customs for
the district wherein such vessel is then located’’ and
inserting ‘‘the Customs Service’’; and
(3) by striking out ‘‘the collector like’’ and in-
serting in lieu thereof ‘‘the Customs Service like’’.
SEC. 406. AMENDMENT TO THE ACT TO PREVENT POLLU-
TION FROM SHIPS.
Section 9(e) of the Act to Prevent Pollution from
Ships (94 Stat. 2301, 33 U.S.C. 1908(e)) is amended by
striking out ‘‘shall refuse or revoke’’ and all of the text
following thereafter and inserting ‘‘shall refuse or revoke
the clearance required by section 4197 of the Revised
Statutes of the United States (46 U.S.C. App. 91). Clear-
ance may be granted upon the filing of a bond or other
surety satisfactory to the Secretary.’’.
SEC. 407. AMENDMENTS TO THE ACT OF NOVEMBER 6,
1966.
Sections 2(e) and 3(e) of the Act of November 6,
1966 (46 U.S.C. App. 817d(e) and 817e(e)) are each
amended—
(1) by striking out ‘‘The collector of customs
at’’ and inserting ‘‘At’’; and
(2) by inserting ‘‘, the Customs Service’’ after
‘‘subsection (a) of this section’’.
129
SEC. 408. REPEAL OF OBSOLETE PROVISIONS OF LAW.
(a) REVISED STATUTES.—The following provisions of
the Revised Statutes of the United States are repealed:
(1) So much of section 2792 as is codified at
19 U.S.C. 289 and 46 U.S.C. App. 110 and 112 (as
in effect on the date of the enactment of this Act).
(2) Section 3111 (19 U.S.C. 282).
(3) Section 3118 (19 U.S.C. 286).
(4) Section 3119 (19 U.S.C. 287).
(5) Section 3122 (19 U.S.C. 290).
(6) Section 3124 (19 U.S.C. 291).
(7) Section 3125 (19 U.S.C. 292).
(8) Section 4198 (46 U.S.C. App. 94).
(9) Section 4199 (46 U.S.C. App. 93).
(10) Section 4201 (46 U.S.C. App. 96).
(11) Section 4207.
(12) Section 4208 (46 U.S.C. App. 102).
(13) Section 4213 (46 U.S.C. App. 101).
(14) So much of section 4221 as is codified at
46 U.S.C. App. 113 (as in effect on the date of the
enactment of this Act).
(15) Section 4222 (46 U.S.C. App. 126).
(16) Section 4332 (46 U.S.C. App. 274).
(17) Section 4348 (46 U.S.C. App. 293).
(18) Section 4358 (46 U.S.C. App. 306).
(19) Section 4361 (46 U.S.C. App. 307).
130
(20) Sections 4362 through 4369 (46 U.S.C.
App. 308 through 315).
(21) Sections 4573 through 4576 (46 U.S.C.
App. 674 through 677).
(b) TARIFF ACT OF 1930.—The following sections of
the Tariff Act of 1930 are repealed:
(1) Section 432 (19 U.S.C. 1432).
(2) Section 435 (19 U.S.C. 1435).
(3) Section 437 (19 U.S.C. 1437).
(4) Section 439 (19 U.S.C. 1439).
(5) Section 440 (19 U.S.C. 1440).
(6) Sections 443, 444, and 445 (19 U.S.C.
1443, 1444, and 1445).
(7) Section 465 (19 U.S.C. 1465).
(8) Section 482 (19 U.S.C. 1482).
(9) Section 583 (19 U.S.C. 1583).
(10) Section 585 (19 U.S.C. 1585).
(c) MISCELLANEOUS PROVISIONS.—The following
provisions are repealed:
(1) The last undesignated paragraph of section
201 of the Act of August 5, 1935 (19 U.S.C.
1432a), is repealed.
(2) The Act of June 16, 1937 (19 U.S.C.
1435b).
131
(3) Section 1 of the Act of July 3, 1926 (46
U.S.C. App. 293a).
(4) The Act of May 4, 1934 (46 U.S.C. App.
91a).
(5) Section 1403(b) of the Water Resources De-
velopment Act of 1986 (Public Law 99–662; 26
U.S.C. 4461 note).
SEC. 409. REPORTS TO CONGRESS.
(a) ANTIDUMPING
AND
COUNTERVAILING
DUTY
COLLECTIONS.—The Commissioner of Customs shall be-
fore the 60th day of each fiscal year after fiscal year 1992
submit to Congress a report regarding the collection dur-
ing the preceding fiscal year of duties imposed under the
antidumping and countervailing duty laws.
(b) CES FEE REPORT.—
(1) AMENDMENT.—Section 9501(c) of the Om-
nibus Budget Reconciliation Act of 1987 (19 U.S.C.
3 note) is amended by adding at the end the follow-
ing new paragraph:
‘‘(3) The Commissioner of Customs is author-
ized to obtain from the operators of centralized
cargo examination stations information regarding
the fees paid to them for the provision of services at
these stations.’’.
132
(2) REPORT.—Within 9 months after the date
of the enactment of this subsection, the Commis-
sioner of Customs shall submit to the Committees
referred to in section 9501(c) of the Omnibus Budg-
et Reconciliation Act of 1987, a report setting
forth—
(A) an estimate of the aggregate amount
of fees paid to operators of centralized cargo
examination stations during fiscal year 1992;
and
(B) the variations, if any, among customs
districts with respect to the amounts of the fees
charged for centralized cargo examination sta-
tion services.
(c) COMPLIANCE WITH CUSTOMS LAWS.—Section
123 of the Customs and Trade Act of 1990 (19 U.S.C.
2083) is amended—
(1) by redesignating subsection (d) as sub-
section (e), and
(2) by inserting after subsection (c) the follow-
ing:
‘‘(d) COMPLIANCE PROGRAM.—The Commissioner of
Customs shall—
133
‘‘(1) devise and implement a methodology for
estimating the level of compliance with the laws ad-
ministered by the Customs Service; and
‘‘(2) include as an additional part of the report
required to be submitted under subsection (a) for
each of fiscal years 1993, 1994, and 1995, an eval-
uation of the extent to which such compliance was
obtained during the 12-month period preceding the
60th day before each such fiscal year.’’.
(d) COURIER SERVICES COMPLIANCE REPORT.—The
Commissioner of Customs shall initiate a compliance re-
view of certain courier services which may not be eligible
for benefits under the regulations of the Customs Service
prescribed in part 128 of title 19 of the Code of Federal
Regulations and shall submit a report to Congress on the
results of such review within 1 year after the date of the
enactment of this Act.
SEC. 410. APPLICABILITY OF AMENDMENTS TO ENTRY OR
WITHDRAWAL OF GOODS.
Any amendment made by this title that is applicable
to the entry, or withdrawal from warehouse for consump-
tion, of goods applies to any such entry or withdrawal that
is made on or after the 15th day after the date of the
enactment of this Act.
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