(1) IN GENERAL.—In developing the joint stra-
tegic plan required under this section, the Commis-
sioner and the Director of U.S. Immigration and 
Customs Enforcement shall consult with— 
(A) appropriate officials from the relevant 
Federal agencies, including— 
(i) the Department of the Treasury; 
(ii) the Department of Agriculture; 
(iii) the Department of Commerce; 
(iv) the Department of Justice; 
(v) the Department of the Interior; 
(vi) the Department of Health and 
Human Services; 
(vii) the Food and Drug Administra-
tion; 
(viii) the Consumer Product Safety 
Commission; and 
(ix) the Office of the United States 
Trade Representative; and 
(B) the Commercial Customs Operations 
Advisory Committee established by section 109. 
(2) OTHER CONSULTATIONS.—In developing the 
joint strategic plan required under this section, the 
Commissioner and the Director shall seek to consult 
with—
(A) appropriate officials from relevant for-
eign law enforcement agencies and international 
organizations, including the World Customs Or-
ganization; and 
(B) interested parties in the private sector. 
SEC. 106. AUTOMATED COMMERCIAL ENVIRONMENT. 
(a) FUNDING.—Section 13031(f)(4)(B) of the Consoli-
dated Omnibus Budget Reconciliation Act of 1985 (19 
U.S.C. 58c(f)(4)(B)) is amended— 
(1) by striking ‘‘2003 through 2005’’ and insert-
ing ‘‘2016 through 2018’’; 
(2) by striking ‘‘such amounts as are available 
in that Account’’ and inserting ‘‘not less than 
$153,736,000’’; and 
(3) by striking ‘‘for the development’’ and insert-
ing ‘‘to complete the development and implementa-
tion’’. 
(b) REPORT.—Section 311(b)(3) of the Customs Border 
Security Act of 2002 (19 U.S.C. 2075 note) is amended to 
read as follows: 
‘‘(3) REPORT.— 
‘‘(A) IN GENERAL.—Not later than Decem-
ber 31, 2016, the Commissioner of U.S. Customs 
and Border Protection shall submit to the Com-
mittee on Appropriations and the Committee on
Finance of the Senate and the Committee on Ap-
propriations and the Committee on Ways and 
Means of the House of Representatives a report 
detailing— 
‘‘(i) U.S. Customs and Border Protec-
tion’s incorporation of all core trade proc-
essing capabilities, including cargo release, 
entry summary, cargo manifest, cargo fi-
nancial data, and export data elements into 
the Automated Commercial Environment 
computer system authorized under section 
13031(f)(4) of the Consolidated Omnibus 
Budget and Reconciliation Act of 1985 (19 
U.S.C. 58c(f)(4)) not later than September 
30, 2016, to conform with the admissibility 
criteria of agencies participating in the 
International Trade Data System identified 
pursuant to section 411(d)(4)(A)(iii) of the 
Tariff Act of 1930; 
‘‘(ii) U.S. Customs and Border Protec-
tion’s remaining priorities for processing 
entry summary data elements, cargo mani-
fest data elements, cargo financial data ele-
ments, and export elements in the Auto-
mated Commercial Environment computer
system, and the objectives and plans for im-
plementing these remaining priorities; 
‘‘(iii) the components of the National 
Customs Automation Program specified in 
subsection (a)(2) of section 411 of the Tariff 
Act of 1930 that have not been imple-
mented; and 
‘‘(iv) any additional components of the 
National Customs Automation Program 
initiated by the Commissioner to complete 
the development, establishment, and imple-
mentation of the Automated Commercial 
Environment computer system. 
‘‘(B) UPDATE OF REPORTS.—Not later than 
September 30, 2017, the Commissioner shall sub-
mit to the Committee on Appropriations and the 
Committee on Finance of the Senate and the 
Committee on Appropriations and the Com-
mittee on Ways and Means of the House of Rep-
resentatives an updated report addressing each of 
the matters referred to in subparagraph (A), 
and— 
‘‘(i) evaluating the effectiveness of the 
implementation of the Automated Commer-
cial Environment computer system; and
‘‘(ii) detailing the percentage of trade 
processed in the Automated Commercial 
Environment every month since September 
30, 2016.’’. 
(c) GOVERNMENT
ACCOUNTABILITY
OFFICE
RE-
PORT.—Not later than December 31, 2017, the Comptroller 
General of the United States shall submit to the Committee 
on Appropriations and the Committee on Finance of the 
Senate and the Committee on Appropriations and the Com-
mittee on Ways and Means of the House of Representatives 
a report— 
(1) assessing the progress of other Federal agen-
cies in accessing and utilizing the Automated Com-
mercial Environment; and 
(2) assessing the potential cost savings to the 
United States Government and importers and export-
ers and the potential benefits to enforcement of the 
customs and trade laws of the United States if the ele-
ments identified in clauses (i) through (iv) of section 
311(b)(3)(A) of the Customs Border Security Act of 
2002, as amended by subsection (b) of this section, are 
implemented. 
SEC. 107. INTERNATIONAL TRADE DATA SYSTEM. 
Section 411(d) of the Tariff Act of 1930 (19 U.S.C. 
1411(d)) is amended—
(1) by redesignating paragraphs (4) through (7) 
as paragraphs (5) through (8), respectively; 
(2) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) INFORMATION
TECHNOLOGY
INFRASTRUC-
TURE.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
work with the head of each agency participating 
in the ITDS and the Interagency Steering Com-
mittee to ensure that each agency— 
‘‘(i) develops and maintains the nec-
essary information technology infrastruc-
ture to support the operation of the ITDS 
and to submit all data to the ITDS elec-
tronically; 
‘‘(ii) enters into a memorandum of un-
derstanding, or takes such other action as is 
necessary, to provide for the information 
sharing between the agency and U.S. Cus-
toms and Border Protection necessary for 
the operation and maintenance of the 
ITDS; 
‘‘(iii) not later than June 30, 2016, 
identifies and transmits to the Commis-
sioner of U.S. Customs and Border Protec-
tion the admissibility criteria and data ele-
ments required by the agency to authorize 
the release of cargo by U.S. Customs and 
Border Protection for incorporation into the 
operational functionality of the Automated 
Commercial Environment computer system 
authorized under section 13031(f)(4) of the 
Consolidated Omnibus Budget and Rec-
onciliation 
Act 
of 
1985 
(19 
U.S.C. 
58c(f)(4)); and 
‘‘(iv) not later than December 31, 
2016, utilizes the ITDS as the primary 
means of receiving from users the standard 
set of data and other relevant documenta-
tion, exclusive of applications for permits, 
licenses, or certifications required for the re-
lease of imported cargo and clearance of 
cargo for export. 
‘‘(B) RULE OF CONSTRUCTION.—Nothing in 
this paragraph shall be construed to require any 
action to be taken that would compromise an on-
going law enforcement investigation or national 
security.’’; and 
(3) in paragraph (8), as redesignated, by strik-
ing ‘‘section 9503(c) of the Omnibus Budget Rec-
onciliation Act of 1987 (19 U.S.C. 2071 note)’’ and 
inserting ‘‘section 109 of the Trade Facilitation and 
Trade Enforcement Act of 2015’’. 
SEC. 108. CONSULTATIONS WITH RESPECT TO MUTUAL REC-
OGNITION ARRANGEMENTS. 
(a) CONSULTATIONS.—The Secretary of Homeland Se-
curity, with respect to any proposed mutual recognition ar-
rangement or similar agreement between the United States 
and a foreign government providing for mutual recognition 
of supply chain security programs and customs revenue 
functions, shall consult— 
(1) not later than 30 days before initiating nego-
tiations to enter into any such arrangement or simi-
lar agreement, with the appropriate congressional 
committees; and 
(2) not later than 30 days before entering into 
any such arrangement or similar agreement, with the 
appropriate congressional committees. 
(b) NEGOTIATING OBJECTIVE.—It shall be a negoti-
ating objective of the United States in any negotiation for 
a mutual recognition arrangement with a foreign country 
on partnership programs, such as the Customs-Trade Part-
nership Against Terrorism established under subtitle B of 
title II of the Security and Accountability for Every Port 
Act of 2006 (6 U.S.C. 961 et seq.), to seek to ensure the
compatibility of the partnership programs of that country 
with the partnership programs of U.S. Customs and Border 
Protection to enhance security, trade facilitation, and trade 
enforcement. 
SEC. 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY 
COMMITTEE. 
(a) ESTABLISHMENT.—Not later than the date that is 
60 days after the date of the enactment of this Act, the Sec-
retary of the Treasury and the Secretary of Homeland Secu-
rity shall jointly establish a Commercial Customs Oper-
ations Advisory Committee (in this section referred to as 
the ‘‘Advisory Committee’’). 
(b) MEMBERSHIP.— 
(1) IN GENERAL.—The Advisory Committee shall 
be comprised of— 
(A) 20 individuals appointed under para-
graph (2); 
(B) the Assistant Secretary for Tax Policy 
of the Department of the Treasury and the Com-
missioner, who shall jointly co-chair meetings of 
the Advisory Committee; and 
(C) the Assistant Secretary for Policy and 
the Director of U.S. Immigration and Customs 
Enforcement of the Department of Homeland Se-
curity, who shall serve as deputy co-chairs of 
meetings of the Advisory Committee. 
(2) APPOINTMENT.— 
(A) IN
GENERAL.—The Secretary of the 
Treasury and the Secretary of Homeland Secu-
rity shall jointly appoint 20 individuals from 
the private sector to the Advisory Committee. 
(B) REQUIREMENTS.—In making appoint-
ments under subparagraph (A), the Secretary of 
the Treasury and the Secretary of Homeland Se-
curity shall appoint members— 
(i) to ensure that the membership of 
the Advisory Committee is representative of 
the individuals and firms affected by the 
commercial operations of U.S. Customs and 
Border Protection; and 
(ii) without regard to political affili-
ation. 
(C) TERMS.—Each individual appointed to 
the Advisory Committee under this paragraph 
shall be appointed for a term of not more than 
3 years, and may be reappointed to subsequent 
terms, but may not serve more than 2 terms se-
quentially.
(3) TRANSFER OF MEMBERSHIP.—The Secretary 
of the Treasury and the Secretary of Homeland Secu-
rity may transfer members serving on the Advisory 
Committee on Commercial Operations of the United 
States Customs Service established under section 
9503(c) of the Omnibus Budget Reconciliation Act of 
1987 (19 U.S.C. 2071 note) on the day before the date 
of the enactment of this Act to the Advisory Com-
mittee established under subsection (a). 
(c) DUTIES.—The Advisory Committee established 
under subsection (a) shall— 
(1) advise the Secretary of the Treasury and the 
Secretary of Homeland Security on all matters in-
volving the commercial operations of U.S. Customs 
and Border Protection, including advising with re-
spect to significant changes that are proposed with re-
spect to regulations, policies, or practices of U.S. Cus-
toms and Border Protection; 
(2) provide recommendations to the Secretary of 
the Treasury and the Secretary of Homeland Security 
on improvements to the commercial operations of 
U.S. Customs and Border Protection; 
(3) collaborate in developing the agenda for Ad-
visory Committee meetings; and
(4) perform such other functions relating to the 
commercial operations of U.S. Customs and Border 
Protection as prescribed by law or as the Secretary of 
the Treasury and the Secretary of Homeland Security 
jointly direct. 
(d) MEETINGS.— 
(1) IN GENERAL.—The Advisory Committee shall 
meet at the call of the Secretary of the Treasury and 
the Secretary of Homeland Security, or at the call of 
not less than 2⁄3 of the membership of the Advisory 
Committee. The Advisory Committee shall meet at 
least 4 times each calendar year. 
(2) OPEN MEETINGS.—Notwithstanding section 
10(a) of the Federal Advisory Committee Act (5 
U.S.C. App.), the Advisory Committee meetings shall 
be open to the public unless the Secretary of the 
Treasury or the Secretary of Homeland Security de-
termines that the meeting will include matters the 
disclosure of which would compromise the develop-
ment of policies, priorities, or negotiating objectives 
or positions that could impact the commercial oper-
ations of U.S. Customs and Border Protection or the 
operations or investigations of U.S. Immigration and 
Customs Enforcement.
(e) ANNUAL REPORT.—Not later than December 31, 
2016, and annually thereafter, the Advisory Committee 
shall submit to the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of Rep-
resentatives a report that— 
(1) describes the activities of the Advisory Com-
mittee during the preceding fiscal year; and 
(2) sets forth any recommendations of the Advi-
sory Committee regarding the commercial operations 
of U.S. Customs and Border Protection. 
(f) TERMINATION.—Section 14(a)(2) of the Federal 
Advisory Committee Act (5 U.S.C. App.; relating to the ter-
mination of advisory committees) shall not apply to the Ad-
visory Committee. 
(g) CONFORMING AMENDMENT.— 
(1) IN GENERAL.—Effective on the date on which 
the Advisory Committee is established under sub-
section (a), section 9503(c) of the Omnibus Budget 
Reconciliation Act of 1987 (19 U.S.C. 2071 note) is 
repealed. 
(2) REFERENCE.—Any reference in law to the 
Advisory Committee on Commercial Operations of the 
United States Customs Service established under sec-
tion 9503(c) of the Omnibus Budget Reconciliation 
Act of 1987 (19 U.S.C. 2071 note) made on or after
the date on which the Advisory Committee is estab-
lished under subsection (a), shall be deemed a ref-
erence to the Commercial Customs Operations Advi-
sory Committee established under subsection (a). 
SEC. 110. CENTERS OF EXCELLENCE AND EXPERTISE. 
(a) IN GENERAL.—The Commissioner shall, in con-
sultation with the appropriate congressional committees 
and the Commercial Customs Operations Advisory Com-
mittee established by section 109, develop and implement 
Centers of Excellence and Expertise throughout U.S. Cus-
toms and Border Protection that— 
(1) enhance the economic competitiveness of the 
United States by consistently enforcing the laws and 
regulations of the United States at all ports of entry 
of the United States and by facilitating the flow of le-
gitimate trade through increasing industry-based 
knowledge; 
(2) improve enforcement efforts, including en-
forcement of priority trade issues described in section 
118, in specific industry sectors through the applica-
tion of targeting information from the National Tar-
geting Center under section 111 and from other 
means of verification;
(3) build upon the expertise of U.S. Customs and 
Border Protection in particular industry operations, 
supply chains, and compliance requirements; 
(4) promote the uniform implementation at each 
port of entry of the United States of policies and reg-
ulations relating to imports; 
(5) centralize the trade enforcement and trade fa-
cilitation efforts of U.S. Customs and Border Protec-
tion; 
(6) formalize an account-based approach to 
apply, as the Commissioner determines appropriate, 
to the importation of merchandise into the United 
States; 
(7) foster partnerships though the expansion of 
trade programs and other trusted partner programs; 
(8) develop applicable performance measure-
ments to meet internal efficiency and effectiveness 
goals; and 
(9) whenever feasible, facilitate a more efficient 
flow of information between Federal agencies. 
(b) REPORT.—Not later than December 31, 2016, the 
Commissioner shall submit to the appropriate congressional 
committees a report describing—
(1) the scope, functions, and structure of each 
Center of Excellence and Expertise developed and im-
plemented under subsection (a); 
(2) the effectiveness of each such Center of Excel-
lence and Expertise in improving enforcement efforts, 
including enforcement of priority trade issues de-
scribed in section 118, and facilitating legitimate 
trade; 
(3) the quantitative and qualitative benefits of 
each such Center of Excellence and Expertise to the 
trade community, including through fostering part-
nerships through the expansion of trade programs 
such as the Importer Self Assessment program and 
other trusted partner programs; 
(4) all applicable performance measurements 
with respect to each such Center of Excellence and 
Expertise, including performance measures with re-
spect to meeting internal efficiency and effectiveness 
goals; 
(5) the performance of each such Center of Excel-
lence and Expertise in increasing the accuracy and 
completeness of data with respect to international 
trade and facilitating a more efficient flow of infor-
mation between Federal agencies; and
(6) any planned changes in the number, scope, 
functions or any other aspect of the Centers of Excel-
lence and Expertise developed and implemented under 
subsection (a). 
SEC. 111. COMMERCIAL RISK ASSESSMENT TARGETING AND 
TRADE ALERTS. 
(a) COMMERCIAL RISK ASSESSMENT TARGETING.—In 
carrying out its duties under section 411(g)(4) of the Home-
land Security Act of 2002, as added by section 802(a) of 
this Act, the National Targeting Center shall— 
(1) establish targeted risk assessment methodolo-
gies and standards— 
(A) for evaluating the risk that cargo des-
tined for the United States may violate the cus-
toms and trade laws of the United States, par-
ticularly those laws applicable to merchandise 
subject to the priority trade issues described in 
section 118; and 
(B) for issuing, as appropriate, Trade 
Alerts described in subsection (b); 
(2) to the extent practicable and otherwise au-
thorized by law, use, to administer the methodologies 
and standards established under paragraph (1)— 
(A) publicly available information;
(B) information available from the Auto-
mated Commercial System, the Automated Com-
mercial Environment computer system, the Auto-
mated Targeting System, the Automated Export 
System, the International Trade Data System, 
the TECS (formerly known as the ‘‘Treasury 
Enforcement Communications System’’), the case 
management system of U.S. Immigration and 
Customs Enforcement, and any successor sys-
tems; and 
(C) information made available to the Na-
tional Targeting Center, including information 
provided by private sector entities; and 
(3) provide for the receipt and transmission to 
the appropriate U.S. Customs and Border Protection 
offices of allegations from interested parties in the 
private sector of violations of customs and trade laws 
of the United States of merchandise relating to the 
priority trade issues described in section 118. 
(b) TRADE ALERTS.— 
(1) ISSUANCE.—In carrying out its duties under 
section 411(g)(4) of the Homeland Security Act of 
2002, as added by section 802(a) of this Act, and 
based upon the application of the targeted risk assess-
ment methodologies and standards established under
subsection (a), the Executive Director of the National 
Targeting Center may issue Trade Alerts to directors 
of United States ports of entry directing further in-
spection, or physical examination or testing, of spe-
cific merchandise to ensure compliance with all ap-
plicable customs and trade laws and regulations ad-
ministered by U.S. Customs and Border Protection. 
(2) DETERMINATIONS NOT TO IMPLEMENT TRADE 
ALERTS.—The director of a United States port of 
entry may determine not to conduct further inspec-
tions, or physical examination or testing, pursuant to 
a Trade Alert issued under paragraph (1) if— 
(A) the director finds that such a deter-
mination is justified by port security interests; 
and 
(B) not later than 48 hours after making 
the determination, notifies the Assistant Com-
missioner of the Office of Field Operations of 
U.S. Customs and Border Protection of the deter-
mination and the reasons for the determination. 
(3) SUMMARY OF DETERMINATIONS NOT TO IM-
PLEMENT.—The Assistant Commissioner of the Office 
of Field Operations of U.S. Customs and Border Pro-
tection shall—
(A) compile an annual public summary of 
all determinations by directors of United States 
ports of entry under paragraph (2) and the rea-
sons for those determinations; 
(B) conduct an evaluation of the utilization 
of Trade Alerts issued under paragraph (1); and 
(C) not later than December 31 of each 
year, submit the summary to the appropriate 
congressional committees. 
(4) INSPECTION
DEFINED.—In this subsection, 
the term ‘‘inspection’’ means the comprehensive eval-
uation process used by U.S. Customs and Border Pro-
tection, other than physical examination or testing, to 
permit the entry of merchandise into the United 
States, or the clearance of merchandise for transpor-
tation in bond through the United States, for pur-
poses of— 
(A) assessing duties; 
(B) identifying restricted or prohibited 
items; and 
(C) ensuring compliance with all applicable 
customs and trade laws and regulations admin-
istered by U.S. Customs and Border Protection.
(c) USE OF TRADE DATA FOR COMMERCIAL ENFORCE-
MENT PURPOSES.—Section 343(a)(3)(F) of the Trade Act 
of 2002 (19 U.S.C. 2071 note) is amended to read as follows: 
‘‘(F) The information collected pursuant to 
the regulations shall be used exclusively for en-
suring cargo safety and security, preventing 
smuggling, and commercial risk assessment tar-
geting, and shall not be used for any commercial 
enforcement purposes, including for determining 
merchandise entry. Notwithstanding the pre-
ceding sentence, nothing in this section shall be 
treated as amending, repealing, or otherwise 
modifying title IV of the Tariff Act of 1930 or 
regulations promulgated thereunder.’’. 
SEC. 112. REPORT ON OVERSIGHT OF REVENUE PROTEC-
TION AND ENFORCEMENT MEASURES. 
(a) IN GENERAL.—Not later the March 31, 2016, and 
not later than March 31 of each second year thereafter, the 
Inspector General of the Department of the Treasury shall 
submit to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representa-
tives a report assessing, with respect to the period covered 
by the report, as specified in subsection (b), the following:
(1) The effectiveness of the measures taken by 
U.S. Customs and Border Protection with respect to 
protection of revenue, including— 
(A) the collection of countervailing duties 
assessed under subtitle A of title VII of the Tariff 
Act of 1930 (19 U.S.C. 1671 et seq.) and anti-
dumping duties assessed under subtitle B of title 
VII of the Tariff Act of 1930 (19 U.S.C. 1673 et 
seq.); 
(B) the assessment, collection, and mitiga-
tion of commercial fines and penalties; 
(C) the use of bonds, including continuous 
and single transaction bonds, to secure that rev-
enue; and 
(D) the adequacy of the policies of U.S. 
Customs and Border Protection with respect to 
the monitoring and tracking of merchandise 
transported in bond and collecting duties, as ap-
propriate. 
(2) The effectiveness of actions taken by U.S. 
Customs and Border Protection to measure account-
ability and performance with respect to protection of 
revenue.
(3) The number and outcome of investigations 
instituted by U.S. Customs and Border Protection 
with respect to the underpayment of duties. 
(4) The effectiveness of training with respect to 
the collection of duties provided for personnel of U.S. 
Customs and Border Protection. 
(b) PERIOD COVERED BY REPORT.—Each report re-
quired by subsection (a) shall cover the period of 2 fiscal 
years ending on September 30 of the calendar year pre-
ceding the submission of the report. 
SEC. 113. REPORT ON SECURITY AND REVENUE MEASURES 
WITH RESPECT TO MERCHANDISE TRANS-
PORTED IN BOND. 
(a) IN GENERAL.—Not later than December 31 of 
2016, 2017, and 2018, the Secretary of Homeland Security 
and the Secretary of the Treasury shall jointly submit to 
the Committee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives a re-
port on efforts undertaken by U.S. Customs and Border 
Protection to ensure the secure transportation of merchan-
dise in bond through the United States and the collection 
of revenue owed upon the entry of such merchandise into 
the United States for consumption.
(b) ELEMENTS.—Each report required by subsection 
(a) shall include, for the fiscal year preceding the submis-
sion of the report, information on— 
(1) the overall number of entries of merchandise 
for transportation in bond through the United States; 
(2) the ports at which merchandise arrives in the 
United States for transportation in bond and at 
which records of the arrival of such merchandise are 
generated; 
(3) the average time taken to reconcile such 
records with the records at the final destination of the 
merchandise in the United States to demonstrate that 
the merchandise reaches its final destination or is re- 
exported; 
(4) the average time taken to transport merchan-
dise in bond from the port at which the merchandise 
arrives in the United States to its final destination 
in the United States; 
(5) the total amount of duties, taxes, and fees 
owed with respect to shipments of merchandise trans-
ported in bond and the total amount of such duties, 
taxes, and fees paid; 
(6) the total number of notifications by carriers 
of merchandise being transported in bond that the 
destination of the merchandise has changed; and
(7) 
the 
number 
of 
entries 
that 
remain 
unreconciled. 
SEC. 114. IMPORTER OF RECORD PROGRAM. 
(a) ESTABLISHMENT.—Not later than the date that is 
180 days after the date of the enactment of this Act, the 
Secretary of Homeland Security shall establish an importer 
of record program to assign and maintain importer of 
record numbers. 
(b) REQUIREMENTS.—The Secretary shall ensure that, 
as part of the importer of record program, U.S. Customs 
and Border Protection— 
(1) develops criteria that importers must meet in 
order to obtain an importer of record number, includ-
ing— 
(A) criteria to ensure sufficient information 
is collected to allow U.S. Customs and Border 
Protection to verify the existence of the importer 
requesting the importer of record number; 
(B) criteria to ensure sufficient information 
is collected to allow U.S. Customs and Border 
Protection to identify linkages or other affili-
ations between importers that are requesting or 
have been assigned importer of record numbers; 
and
(C) criteria to ensure sufficient information 
is collected to allow U.S. Customs and Border 
Protection to identify changes in address and 
corporate structure of importers; 
(2) provides a process by which importers are as-
signed importer of record numbers; 
(3) maintains a centralized database of importer 
of record numbers, including a history of importer of 
record numbers associated with each importer, and 
the information described in subparagraphs (A), (B), 
and (C) of paragraph (1); 
(4) evaluates and maintains the accuracy of the 
database if such information changes; and 
(5) takes measures to ensure that duplicate im-
porter of record numbers are not issued. 
(c) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary shall submit to 
the Committee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives a re-
port on the importer of record program established under 
subsection (a). 
(d) NUMBER DEFINED.—In this subsection, the term 
‘‘number’’, with respect to an importer of record, means a 
filing identification number described in section 24.5 of 
title 19, Code of Federal Regulations (or any corresponding
similar regulation) that fully supports the requirements of 
subsection (b) with respect to the collection and mainte-
nance of information. 
SEC. 115. ESTABLISHMENT OF NEW IMPORTER PROGRAM. 
(a) IN GENERAL.—Not later than the date that is 180 
days after the date of the enactment of this Act, the Commis-
sioner shall establish a new importer program that directs 
U.S. Customs and Border Protection to adjust bond 
amounts for new importers based on the level of risk as-
sessed by U.S. Customs and Border Protection for protec-
tion of revenue of the Federal Government. 
(b) REQUIREMENTS.—The Commissioner shall ensure 
that, as part of the new importer program established under 
subsection (a), U.S. Customs and Border Protection— 
(1) develops risk-based criteria for determining 
which importers are considered to be new importers 
for the purposes of this subsection; 
(2) develops risk assessment guidelines for new 
importers to determine if and to what extent— 
(A) to adjust bond amounts of imported 
products of new importers; and 
(B) to increase screening of imported prod-
ucts of new importers; 
(3) develops procedures to ensure increased over-
sight of imported products of new importers relating
to the enforcement of the priority trade issues de-
scribed in section 118; 
(4) develops procedures to ensure increased over-
sight of imported products of new importers by Cen-
ters of Excellence and Expertise established under sec-
tion 110; and 
(5) establishes a centralized database of new im-
porters to ensure accuracy of information that is re-
quired to be provided by new importers to U.S. Cus-
toms and Border Protection. 
SEC. 116. CUSTOMS BROKER IDENTIFICATION OF IMPORT-
ERS. 
(a) IN GENERAL.—Section 641 of the Tariff Act of 
1930 (19 U.S.C. 1641) is amended by adding at the end 
the following: 
‘‘(i) IDENTIFICATION OF IMPORTERS.— 
‘‘(1) IN GENERAL.—The Secretary shall prescribe 
regulations setting forth the minimum standards for 
customs brokers and importers, including nonresident 
importers, regarding the identity of the importer that 
shall apply in connection with the importation of 
merchandise into the United States. 
‘‘(2) MINIMUM REQUIREMENTS.—The regulations 
shall, at a minimum, require customs brokers to im-
plement, and importers (after being given adequate 
notice) to comply with, reasonable procedures for— 
‘‘(A) collecting the identity of importers, in-
cluding nonresident importers, seeking to import 
merchandise into the United States to the extent 
reasonable and practicable; and 
‘‘(B) maintaining records of the informa-
tion used to substantiate a person’s identity, in-
cluding name, address, and other identifying in-
formation. 
‘‘(3) PENALTIES.—Any customs broker who fails 
to collect information required under the regulations 
prescribed under this subsection shall be liable to the 
United States, at the discretion of the Secretary, for 
a monetary penalty not to exceed $10,000 for each 
violation of those regulations and subject to revocation 
or suspension of a license or permit of the customs 
broker pursuant to the procedures set forth in sub-
section (d). 
‘‘(4) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘importer’ means one of the 
parties qualifying as an importer of record 
under section 484(a)(2)(B); and 
‘‘(B) the term ‘nonresident importer’ means 
an importer who is—
‘‘(i) an individual who is not a citizen 
of the United States or an alien lawfully 
admitted for permanent residence in the 
United States; or 
‘‘(ii) a partnership, corporation, or 
other commercial entity that is not orga-
nized under the laws of a jurisdiction with-
in the customs territory of the United States 
(as such term is defined in General Note 2 
of the Harmonized Tariff Schedule of the 
United States) or in the Virgin Islands of 
the United States.’’. 
(b) STUDY AND REPORT REQUIRED.—Not later than 
180 days after the date of enactment of this Act, the Com-
missioner shall submit to Congress a report containing rec-
ommendations for— 
(1) determining the most timely and effective 
way to require foreign nationals to provide customs 
brokers with appropriate and accurate information, 
comparable to that which is required of United States 
nationals, concerning the identity, address, and other 
related information relating to such foreign nationals 
necessary to enable customs brokers to comply with 
the requirements of section 641(i) of the Tariff Act of 
1930 (as added by subsection (a) of this section); and
(2) establishing a system for customs brokers to 
review information maintained by relevant Federal 
agencies for purposes of verifying the identities of im-
porters, including nonresident importers, seeking to 
import merchandise into the United States. 
SEC. 117. REQUIREMENTS APPLICABLE TO NON-RESIDENT 
IMPORTERS. 
(a) IN GENERAL.—Part III of title IV of the Tariff 
Act of 1930 (19 U.S.C. 1481 et seq.) is amended by insert-
ing after section 484b the following new section: 
‘‘SEC. 484c. REQUIREMENTS APPLICABLE TO NON-RESI-
DENT IMPORTERS. 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(c), if an importer of record under section 484 is not a resi-
dent of the United States, the Commissioner of U.S. Cus-
toms and Border Protection shall require the non-resident 
importer to designate a resident agent in the United States 
subject to the requirements described in subsection (b). 
‘‘(b) REQUIREMENTS.—The requirements described in 
this subsection are the following: 
‘‘(1) The resident agent shall be authorized to ac-
cept service of process against the non-resident im-
porter in connection with the importation of mer-
chandise.
‘‘(2) The Commissioner of U.S. Customs and 
Border Protection shall require the non-resident im-
porter to establish a power of attorney with the resi-
dent agent in connection with the importation of mer-
chandise. 
‘‘(c) NON-APPLICABILITY.—The requirements of this 
section shall not apply with respect to a non-resident im-
porter who is a validated Tier 2 or Tier 3 participant in 
the Customs-Trade Partnership Against Terrorism program 
established under subtitle B of title II of the SAFE Port 
Act (6 U.S.C. 961 et seq.). 
‘‘(d) PENALTIES.— 
‘‘(1) IN GENERAL.—It shall be unlawful for any 
person to import into the United States any merchan-
dise in violation of this section. 
‘‘(2) CIVIL PENALTIES.—Any person who violates 
paragraph (1) shall be liable for a civil penalty of 
$50,000 for each such violation. 
‘‘(3) OTHER
PENALTIES.—In addition to the 
penalties specified in paragraph (2), any violation of 
this section that violates any other customs and trade 
laws of the United States shall be subject to any ap-
plicable civil and criminal penalty, including seizure 
and forfeiture, that may be imposed under such cus-
toms or trade law or title 18, United States Code, 
with respect to the importation of merchandise. 
‘‘(4) DEFINITION.—In this subsection, the term 
‘customs and trade laws of the United States’ has the 
meaning given such term in section 2 of the Trade 
Facilitation and Trade Enforcement Act of 2015.’’. 
(b) EFFECTIVE DATE.—Section 484c of the Tariff Act 
of 1930, as added by subsection (a), takes effect on the date 
of the enactment of this Act and applies with respect to 
the importation, on or after the date that is 180 days after 
such date of enactment, of merchandise of an importer of 
record under section 484 of the Tariff Act of 1930 who is 
not a resident of the United States. 
SEC. 118. PRIORITY TRADE ISSUES. 
(a) IN GENERAL.—The Commissioner shall establish 
the following as priority trade issues: 
(1) Agriculture programs. 
(2) Antidumping and countervailing duties. 
(3) Import safety. 
(4) Intellectual property rights. 
(5) Revenue. 
(6) Textiles and wearing apparel. 
(7) Trade agreements and preference programs. 
(b) MODIFICATION.—The Commissioner is authorized 
to establish new priority trade issues and eliminate, con-
solidate, or otherwise modify the priority trade issues de-
scribed in subsection (a) if the Commissioner— 
(1) determines it necessary and appropriate to 
do so; and 
(2) submits to the appropriate congressional 
committees a summary of the proposed changes to the 
priority trade issues not later than 60 days before 
such changes are to take effect. 
SEC. 119. APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED. 
In this title, the term ‘‘appropriate congressional com-
mittees’’ means— 
(1) the Committee on Finance and the Com-
mittee on Homeland Security and Government Af-
fairs of the Senate; and 
(2) the Committee on Ways and Means and the 
Committee on Homeland Security of the House of 
Representatives. 
TITLE II—IMPORT HEALTH AND 
SAFETY 
SEC. 201. INTERAGENCY IMPORT SAFETY WORKING GROUP. 
(a) ESTABLISHMENT.—There is established an inter-
agency Import Safety Working Group.
(b) MEMBERSHIP.—The interagency Import Safety 
Working Group shall consist of the following officials or 
their designees: 
(1) The Secretary of Homeland Security, who 
shall serve as the Chair. 
(2) The Secretary of Health and Human Serv-
ices, who shall serve as the Vice Chair. 
(3) The Secretary of the Treasury. 
(4) The Secretary of Commerce. 
(5) The Secretary of Agriculture. 
(6) The United States Trade Representative. 
(7) The Director of the Office of Management 
and Budget. 
(8) The Commissioner of Food and Drugs. 
(9) The Commissioner of U.S. Customs and Bor-
der Protection. 
(10) The Chairman of the Consumer Product 
Safety Commission. 
(11) The Director of U.S. Immigration and Cus-
toms Enforcement. 
(12) The head of any other Federal agency des-
ignated by the President to participate in the inter-
agency Import Safety Working Group, as appro-
priate.
(c) DUTIES.—The duties of the interagency Import 
Safety Working Group shall include— 
(1) consulting on the development of the joint 
import safety rapid response plan required by section 
202; 
(2) periodically evaluating the adequacy of the 
plans, practices, and resources of the Federal Govern-
ment dedicated to ensuring the safety of merchandise 
imported in the United States and the expeditious 
entry of such merchandise, including— 
(A) minimizing the duplication of efforts 
among agencies the heads of which are members 
of the interagency Import Safety Working Group 
and ensuring the compatibility of the policies 
and regulations of those agencies; and 
(B) recommending additional administra-
tive actions, as appropriate, designed to ensure 
the safety of merchandise imported into the 
United States and the expeditious entry of such 
merchandise and considering the impact of those 
actions on private sector entities; 
(3) reviewing the engagement and cooperation of 
foreign governments and foreign manufacturers in fa-
cilitating the inspection and certification, as appro-
priate, of such merchandise to be imported into the
United States and the facilities producing such mer-
chandise to ensure the safety of the merchandise and 
the expeditious entry of the merchandise into the 
United States; 
(4) identifying best practices, in consultation 
with private sector entities as appropriate, to assist 
United States importers in taking all appropriate 
steps to ensure the safety of merchandise imported 
into the United States, including with respect to— 
(A) the inspection of manufacturing facili-
ties in foreign countries; 
(B) the inspection of merchandise destined 
for the United States before exportation from a 
foreign country or before distribution in the 
United States; and 
(C) the protection of the international sup-
ply chain (as defined in section 2 of the Security 
and Accountability For Every Port Act of 2006 
(6 U.S.C. 901)); 
(5) identifying best practices to assist Federal, 
State, and local governments and agencies, and port 
authorities, to improve communication and coordina-
tion among such agencies and authorities with respect 
to ensuring the safety of merchandise imported into
the United States and the expeditious entry of such 
merchandise; and 
(6) otherwise identifying appropriate steps to in-
crease the accountability of United States importers 
and the engagement of foreign government agencies 
with respect to ensuring the safety of merchandise im-
ported into the United States and the expeditious 
entry of such merchandise. 
SEC. 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN. 
(a) IN GENERAL.—Not later than December 31, 2016, 
the Secretary of Homeland Security, in consultation with 
the interagency Import Safety Working Group established 
under section 201, shall develop a plan (to be known as 
the ‘‘joint import safety rapid response plan’’) that sets 
forth protocols and defines practices for U.S. Customs and 
Border Protection to use— 
(1) in taking action in response to, and coordi-
nating Federal responses to, an incident in which 
cargo destined for or merchandise entering the United 
States has been identified as posing a threat to the 
health or safety of consumers in the United States; 
and 
(2) in recovering from or mitigating the effects 
of actions and responses to an incident described in 
paragraph (1).
(b) CONTENTS.—The joint import safety rapid re-
sponse plan shall address— 
(1) the statutory and regulatory authorities and 
responsibilities of U.S. Customs and Border Protec-
tion and other Federal agencies in responding to an 
incident described in subsection (a)(1); 
(2) the protocols and practices to be used by U.S. 
Customs and Border Protection when taking action in 
response to, and coordinating Federal responses to, 
such an incident; 
(3) the measures to be taken by U.S. Customs 
and Border Protection and other Federal agencies in 
recovering from or mitigating the effects of actions 
taken in response to such an incident after the inci-
dent to ensure the resumption of the entry of mer-
chandise into the United States; and 
(4) exercises that U.S. Customs and Border Pro-
tection may conduct in conjunction with Federal, 
State, and local agencies, and private sector entities, 
to simulate responses to such an incident. 
(c) UPDATES OF PLAN.—The Secretary of Homeland 
Security shall review and update the joint import safety 
rapid response plan, as appropriate, after conducting exer-
cises under subsection (d). 
(d) IMPORT HEALTH AND SAFETY EXERCISES.—
(1) IN GENERAL.—The Secretary of Homeland 
Security and the Commissioner shall periodically en-
gage in the exercises referred to in subsection (b)(4), 
in conjunction with Federal, State, and local agencies 
and private sector entities, as appropriate, to test and 
evaluate the protocols and practices identified in the 
joint import safety rapid response plan at United 
States ports of entry. 
(2) REQUIREMENTS
FOR
EXERCISES.—In con-
ducting exercises under paragraph (1), the Secretary 
and the Commissioner shall— 
(A) make allowance for the resources, needs, 
and constraints of United States ports of entry 
of different sizes in representative geographic lo-
cations across the United States; 
(B) base evaluations on current risk assess-
ments of merchandise entering the United States 
at representative United States ports of entry lo-
cated across the United States; 
(C) ensure that such exercises are conducted 
in a manner consistent with the National Inci-
dent Management System, the National Response 
Plan, the National Infrastructure Protection 
Plan, the National Preparedness Guidelines, the 
Maritime Transportation System Security Plan,
and other such national initiatives of the De-
partment of Homeland Security, as appropriate; 
and 
(D) develop metrics with respect to the re-
sumption of the entry of merchandise into the 
United States after an incident described in sub-
section (a)(1). 
(3) REQUIREMENTS FOR TESTING AND EVALUA-
TION.—The Secretary and the Commissioner shall en-
sure that the testing and evaluation carried out in 
conducting exercises under paragraph (1)— 
(A) are performed using clear and objective 
performance measures; and 
(B) result in the identification of specific 
recommendations or best practices for responding 
to an incident described in subsection (a)(1). 
(4) DISSEMINATION OF RECOMMENDATIONS AND 
BEST PRACTICES.—The Secretary and the Commis-
sioner shall— 
(A) share the recommendations or best prac-
tices identified under paragraph (3)(B) among 
the members of the interagency Import Safety 
Working Group established under section 201 
and with, as appropriate—
(i) State, local, and tribal govern-
ments; 
(ii) foreign governments; and 
(iii) private sector entities; and 
(B) use such recommendations and best 
practices to update the joint import safety rapid 
response plan. 
SEC. 203. TRAINING. 
The Commissioner shall ensure that personnel of U.S. 
Customs and Border Protection assigned to United States 
ports of entry are trained to effectively administer the pro-
visions of this title and to otherwise assist in ensuring the 
safety of merchandise imported into the United States and 
the expeditious entry of such merchandise. 
TITLE 
III—IMPORT-RELATED 
PROTECTION OF INTELLEC-
TUAL PROPERTY RIGHTS 
SEC. 
301. 
DEFINITION 
OF 
INTELLECTUAL 
PROPERTY 
RIGHTS. 
In this title, the term ‘‘intellectual property rights’’ re-
fers to copyrights, trademarks, and other forms of intellec-
tual property rights that are enforced by U.S. Customs and 
Border Protection or U.S. Immigration and Customs En-
forcement.
SEC. 302. EXCHANGE OF INFORMATION RELATED TO TRADE 
ENFORCEMENT. 
(a) IN GENERAL.—The Tariff Act of 1930 is amended 
by inserting after section 628 (19 U.S.C. 1628) the fol-
lowing new section: 
‘‘SEC. 628A. EXCHANGE OF INFORMATION RELATED TO 
TRADE ENFORCEMENT. 
‘‘(a) IN GENERAL.—Subject to subsections (c) and (d), 
if the Commissioner of U.S. Customs and Border Protection 
suspects that merchandise is being imported into the United 
States in violation of section 526 of this Act or section 602, 
1201(a)(2), or 1201(b)(1) of title 17, United States Code, 
and determines that the examination or testing of the mer-
chandise by a person described in subsection (b) would as-
sist the Commissioner in determining if the merchandise 
is being imported in violation of that section, the Commis-
sioner, to permit the person to conduct the examination and 
testing— 
‘‘(1) shall provide to the person information that 
appears on the merchandise and its packaging and 
labels, including unredacted images of the merchan-
dise and its packaging and labels; and 
‘‘(2) may, subject to any applicable bonding re-
quirements, provide to the person unredacted samples 
of the merchandise.
‘‘(b) PERSON DESCRIBED.—A person described in this 
subsection is— 
‘‘(1) in the case of merchandise suspected of 
being imported in violation of section 526, the owner 
of the trademark suspected of being copied or simu-
lated by the merchandise; 
‘‘(2) in the case of merchandise suspected of 
being imported in violation of section 602 of title 17, 
United States Code, the owner of the copyright sus-
pected of being infringed by the merchandise; 
‘‘(3) in the case of merchandise suspected of 
being primarily designed or produced for the purpose 
of circumventing a technological measure that effec-
tively controls access to a work protected under that 
title, and being imported in violation of section 
1201(a)(2) of that title, the owner of a copyright in 
the work; and 
‘‘(4) in the case of merchandise suspected of 
being primarily designed or produced for the purpose 
of circumventing protection afforded by a techno-
logical measure that effectively protects a right of an 
owner of a copyright in a work or a portion of a 
work, and being imported in violation of section 
1201(b)(1) of that title, the owner of the copyright.
‘‘(c) LIMITATION.—Subsection (a) applies only with 
respect to merchandise suspected of infringing a trademark 
or copyright that is recorded with U.S. Customs and Border 
Protection. 
‘‘(d) EXCEPTION.—The Commissioner may not pro-
vide under subsection (a) information, photographs, or sam-
ples to a person described in subsection (b) if providing such 
information, photographs, or samples would compromise an 
ongoing law enforcement investigation or national secu-
rity.’’. 
(b) TERMINATION
OF PREVIOUS AUTHORITY.—Not-
withstanding paragraph (2) of section 818(g) of the Na-
tional Defense Authorization Act for Fiscal Year 2012 (Pub-
lic Law 112–81; 125 Stat. 1496; 10 U.S.C. 2302 note), 
paragraph (1) of that section shall have no force or effect 
on or after the date of the enactment of this Act. 
SEC. 303. SEIZURE OF CIRCUMVENTION DEVICES. 
(a) IN GENERAL.—Section 596(c)(2) of the Tariff Act 
of 1930 (19 U.S.C. 1595a(c)(2)) is amended— 
(1) in subparagraph (E), by striking ‘‘or’’; 
(2) in subparagraph (F), by striking the period 
and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(G) U.S. Customs and Border Protection 
determines it is a technology, product, service,
device, component, or part thereof the importa-
tion of which is prohibited under subsection 
(a)(2) or (b)(1) of section 1201 of title 17, 
United States Code.’’. 
(b) NOTIFICATION OF PERSONS INJURED.— 
(1) IN GENERAL.—Not later than the date that 
is 30 business days after seizing merchandise pursu-
ant to subparagraph (G) of section 596(c)(2) of the 
Tariff Act of 1930, as added by subsection (a), the 
Commissioner shall provide to any person identified 
under paragraph (2) information regarding the mer-
chandise seized that is equivalent to information pro-
vided to copyright owners under regulations of U.S. 
Customs and Border Protection for merchandise 
seized for violation of the copyright laws. 
(2) PERSONS TO BE PROVIDED INFORMATION.— 
Any person injured by the violation of (a)(2) or 
(b)(1) of section 1201 of title 17, United States Code, 
that resulted in the seizure of the merchandise shall 
be provided information under paragraph (1), if that 
person is included on a list maintained by the Com-
missioner that is revised annually through publica-
tion in the Federal Register. 
(3) REGULATIONS.—Not later than one year 
after the date of the enactment of this Act, the Sec-
retary of the Treasury shall prescribe regulations es-
tablishing procedures that implement this subsection. 
SEC. 304. ENFORCEMENT BY U.S. CUSTOMS AND BORDER 
PROTECTION OF WORKS FOR WHICH COPY-
RIGHT REGISTRATION IS PENDING. 
Not later than the date that is 180 days after the date 
of the enactment of this Act, the Secretary of Homeland Se-
curity shall authorize a process pursuant to which the Com-
missioner shall enforce a copyright for which the owner has 
submitted an application for registration under title 17, 
United States Code, with the United States Copyright Of-
fice, to the same extent and in the same manner as if the 
copyright were registered with the Copyright Office, includ-
ing by sharing information, images, and samples of mer-
chandise suspected of infringing the copyright under section 
628A of the Tariff Act of 1930, as added by section 302. 
SEC. 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS CO-
ORDINATION CENTER. 
(a) ESTABLISHMENT.—The Secretary of Homeland 
Security shall— 
(1) establish within U.S. Immigration and Cus-
toms Enforcement a National Intellectual Property 
Rights Coordination Center; and
(2) appoint an Assistant Director to head the 
National Intellectual Property Rights Coordination 
Center. 
(b) DUTIES.—The Assistant Director of the National 
Intellectual Property Rights Coordination Center shall— 
(1) coordinate the investigation of sources of 
merchandise that infringe intellectual property rights 
to identify organizations and individuals that 
produce, smuggle, or distribute such merchandise; 
(2) conduct and coordinate training with other 
domestic and international law enforcement agencies 
on investigative best practices— 
(A) to develop and expand the capability of 
such agencies to enforce intellectual property 
rights; and 
(B) to develop metrics to assess whether the 
training improved enforcement of intellectual 
property rights; 
(3) coordinate, with U.S. Customs and Border 
Protection, activities conducted by the United States 
to prevent the importation or exportation of merchan-
dise that infringes intellectual property rights; 
(4) support the international interdiction of 
merchandise destined for the United States that in-
fringes intellectual property rights;
(5) collect and integrate information regarding 
infringement of intellectual property rights from do-
mestic and international law enforcement agencies 
and other non-Federal sources; 
(6) develop a means to receive and organize in-
formation regarding infringement of intellectual 
property rights from such agencies and other sources; 
(7) disseminate information regarding infringe-
ment of intellectual property rights to other Federal 
agencies, as appropriate; 
(8) develop and implement risk-based alert sys-
tems, in coordination with U.S. Customs and Border 
Protection, to improve the targeting of persons that 
repeatedly infringe intellectual property rights; 
(9) coordinate with the offices of United States 
attorneys in order to develop expertise in, and assist 
with the investigation and prosecution of, crimes re-
lating to the infringement of intellectual property 
rights; and 
(10) carry out such other duties as the Secretary 
of Homeland Security may assign. 
(c) COORDINATION WITH OTHER AGENCIES.—In car-
rying out the duties described in subsection (b), the Assist-
ant Director of the National Intellectual Property Rights 
Coordination Center shall coordinate with—
rights with private sector entities, as appropriate, in 
order to coordinate public and private sector efforts to 
combat the infringement of intellectual property 
rights. 
SEC. 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT 
OF INTELLECTUAL PROPERTY RIGHTS. 
The Commissioner and the Director of U.S. Immigra-
tion and Customs Enforcement shall include in the joint 
strategic plan required by section 105— 
(1) a description of the efforts of the Department 
of Homeland Security to enforce intellectual property 
rights; 
(2) a list of the 10 United States ports of entry 
at which U.S. Customs and Border Protection has 
seized the most merchandise, both by volume and by 
value, that infringes intellectual property rights dur-
ing the most recent 2-year period for which data are 
available; and 
(3) a recommendation for the optimal allocation 
of personnel, resources, and technology to ensure that 
U.S. Customs and Border Protection and U.S. Immi-
gration and Customs Enforcement are adequately en-
forcing intellectual property rights.
SEC. 307. PERSONNEL DEDICATED TO THE ENFORCEMENT 
OF INTELLECTUAL PROPERTY RIGHTS. 
(a) PERSONNEL OF U.S. CUSTOMS AND BORDER PRO-
TECTION.—The Commissioner and the Director of U.S. Im-
migration and Customs Enforcement shall ensure that suffi-
cient personnel are assigned throughout U.S. Customs and 
Border Protection and U.S. Immigration and Customs En-
forcement, respectively, who have responsibility for pre-
venting the importation into the United States of merchan-
dise that infringes intellectual property rights. 
(b) STAFFING OF NATIONAL INTELLECTUAL PROPERTY 
RIGHTS
COORDINATION
CENTER.—The 
Commissioner 
shall— 
(1) assign not fewer than 3 full-time employees 
of U.S. Customs and Border Protection to the Na-
tional Intellectual Property Rights Coordination Cen-
ter established under section 305; and 
(2) ensure that sufficient personnel are assigned 
to United States ports of entry to carry out the direc-
tives of the Center. 
SEC. 308. TRAINING WITH RESPECT TO THE ENFORCEMENT 
OF INTELLECTUAL PROPERTY RIGHTS. 
(a) TRAINING.—The Commissioner shall ensure that 
officers of U.S. Customs and Border Protection are trained 
to effectively detect and identify merchandise destined for 
the United States that infringes intellectual property rights,
including through the use of technologies identified under 
subsection (c). 
(b) CONSULTATION WITH PRIVATE SECTOR.—The 
Commissioner shall consult with private sector entities to 
better identify opportunities for collaboration between U.S. 
Customs and Border Protection and such entities with re-
spect to training for officers of U.S. Customs and Border 
Protection in enforcing intellectual property rights. 
(c) IDENTIFICATION OF NEW TECHNOLOGIES.—In con-
sultation with private sector entities, the Commissioner 
shall identify— 
(1) technologies with the cost-effective capability 
to detect and identify merchandise at United States 
ports of entry that infringes intellectual property 
rights; and 
(2) cost-effective programs for training officers of 
U.S. Customs and Border Protection to use such tech-
nologies. 
(d) DONATIONS OF TECHNOLOGY.—Not later than the 
date that is 180 days after the date of the enactment of 
this Act, the Commissioner shall prescribe regulations to en-
able U.S. Customs and Border Protection to receive dona-
tions of hardware, software, equipment, and similar tech-
nologies, and to accept training and other support services,
from private sector entities, for the purpose of enforcing in-
tellectual property rights. 
SEC. 309. INTERNATIONAL COOPERATION AND INFORMA-
TION SHARING. 
(a) COOPERATION.—The Secretary of Homeland Secu-
rity shall coordinate with the competent law enforcement 
and customs authorities of foreign countries, including by 
sharing information relevant to enforcement actions, to en-
hance the efforts of the United States and such authorities 
to enforce intellectual property rights. 
(b) TECHNICAL ASSISTANCE.—The Secretary of Home-
land Security shall provide technical assistance to com-
petent law enforcement and customs authorities of foreign 
countries to enhance the ability of such authorities to en-
force intellectual property rights. 
(c) INTERAGENCY
COLLABORATION.—The Commis-
sioner and the Director of U.S. Immigration and Customs 
Enforcement shall lead interagency efforts to collaborate 
with law enforcement and customs authorities of foreign 
countries to enforce intellectual property rights. 
SEC. 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS 
ENFORCEMENT. 
Not later than June 30, 2016, and annually thereafter, 
the Commissioner and the Director of U.S. Immigration 
and Customs Enforcement shall jointly submit to the Com-
mittee on Finance of the Senate, the Committee on Ways 
and Means of the House of Representatives, the Committee 
on Homeland Security and Governmental Affairs of the 
Senate, and the Committee on Homeland Security of the 
House of Representatives a report that contains the fol-
lowing: 
(1) With respect to the enforcement of intellectual 
property rights, the following: 
(A) The number of referrals, during the pre-
ceding year, from U.S. Customs and Border Pro-
tection to U.S. Immigration and Customs En-
forcement relating to infringement of intellectual 
property rights . 
(B) The number of investigations relating to 
the infringement of intellectual property rights 
referred by U.S. Immigration and Customs En-
forcement to a United States attorney for pros-
ecution and the United States attorneys to which 
those investigations were referred. 
(C) The number of such investigations ac-
cepted by each such United States attorney and 
the status or outcome of each such investigation. 
(D) The number of such investigations that 
resulted in the imposition of civil or criminal 
penalties.
(E) A description of the efforts of U.S. Cus-
tom and Border Protection and U.S. Immigra-
tion and Customs Enforcement to improve the 
success rates of investigations and prosecutions 
relating to the infringement of intellectual prop-
erty rights. 
(2) An estimate of the average time required by 
the Office of International Trade of U.S. Customs and 
Border Protection to respond to a request from port 
personnel for advice with respect to whether merchan-
dise detained by U.S. Customs and Border Protection 
infringed intellectual property rights, distinguished 
by types of intellectual property rights infringed. 
(3) A summary of the outreach efforts of U.S. 
Customs and Border Protection and U.S. Immigra-
tion and Customs Enforcement with respect to— 
(A) the interdiction and investigation of, 
and the sharing of information between those 
agencies and other Federal agencies to prevent, 
the infringement of intellectual property rights; 
(B) collaboration with private sector enti-
ties— 
(i) to identify trends in the infringe-
ment of, and technologies that infringe, in-
tellectual property rights;
(ii) to identify opportunities for en-
hanced training of officers of U.S. Customs 
and Border Protection and U.S. Immigra-
tion and Customs Enforcement; and 
(iii) to develop best practices to enforce 
intellectual property rights; and 
(C) coordination with foreign governments 
and international organizations with respect to 
the enforcement of intellectual property rights. 
(4) A summary of the efforts of U.S. Customs 
and Border Protection and U.S. Immigration and 
Customs Enforcement to address the challenges with 
respect to the enforcement of intellectual property 
rights presented by Internet commerce and the transit 
of small packages and an identification of the volume, 
value, and type of merchandise seized for infringing 
intellectual property rights as a result of such efforts. 
(5) A summary of training relating to the en-
forcement of intellectual property rights conducted 
under section 308 and expenditures for such training. 
SEC. 311. INFORMATION FOR TRAVELERS REGARDING VIO-
LATIONS 
OF 
INTELLECTUAL 
PROPERTY 
RIGHTS. 
(a) IN GENERAL.—The Secretary of Homeland Secu-
rity shall develop and carry out an educational campaign
to inform travelers entering or leaving the United States 
about the legal, economic, and public health and safety im-
plications of acquiring merchandise that infringes intellec-
tual property rights outside the United States and import-
ing such merchandise into the United States in violation 
of United States law. 
(b) DECLARATION FORMS.—The Commissioner shall 
ensure that all versions of Declaration Form 6059B of U.S. 
Customs and Border Protection, or a successor form, includ-
ing any electronic equivalent of Declaration Form 6059B 
or a successor form, printed or displayed on or after the 
date that is 30 days after the date of the enactment of this 
Act include a written warning to inform travelers arriving 
in the United States that importation of merchandise into 
the United States that infringes intellectual property rights 
may subject travelers to civil or criminal penalties and may 
pose serious risks to safety or health. 
TITLE IV—PREVENTION OF EVA-
SION OF ANTIDUMPING AND 
COUNTERVAILING DUTY OR-
DERS 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Preventing Recurring 
Trade Evasion and Circumvention Act’’ or ‘‘PROTECT 
Act’’.
SEC. 402. DEFINITIONS. 
In this title: 
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means— 
(A) the Committee on Finance and the 
Committee on Appropriations of the Senate; and 
(B) the Committee on Ways and Means and 
the Committee on Appropriations of the House of 
Representatives. 
(2) COVERED
MERCHANDISE.—The term ‘‘cov-
ered merchandise’’ means merchandise that is subject 
to— 
(A) a countervailing duty order issued 
under section 706 of the Tariff Act of 1930; or 
(B) an antidumping duty order issued 
under section 736 of the Tariff Act of 1930. 
(3) ELIGIBLE SMALL BUSINESS.— 
(A) IN GENERAL.—The term ‘‘eligible small 
business’’ means any business concern which, in 
the Commissioner’s judgment, due to its small 
size, has neither adequate internal resources nor 
financial ability to obtain qualified outside as-
sistance in preparing and submitting for consid-
eration allegations of evasion.
(B) NONREVIEWABILITY.—Any agency deci-
sion regarding whether a business concern is an 
eligible small business for purposes of section 
411(b)(4)(E) is not reviewable by any other 
agency or by any court. 
(4) ENTER; ENTRY.—The terms ‘‘enter’’ and 
‘‘entry’’ refer to the entry, or withdrawal from ware-
house for consumption, in the customs territory of the 
United States. 
(5) EVADE; EVASION.—The terms ‘‘evade’’ and 
‘‘evasion’’ refer to entering covered merchandise into 
the customs territory of the United States by means 
of any document or electronically transmitted data or 
information, written or oral statement, or act that is 
material and false, or any omission that is material, 
and that results in any cash deposit or other security 
or any amount of applicable antidumping or counter-
vailing duties being reduced or not being applied with 
respect to the merchandise. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(7) TRADE
REMEDY
LAWS.—The term ‘‘trade 
remedy laws’’ means title VII of the Tariff Act of 
1930.
SEC. 403. APPLICATION TO CANADA AND MEXICO. 
Pursuant to article 1902 of the North American Free 
Trade Agreement and section 408 of the North American 
Free Trade Agreement Implementation Act (19 U.S.C. 
3438), this title and the amendments made by this title 
shall apply with respect to goods from Canada and Mexico. 
Subtitle A—Actions Relating to 
Enforcement of Trade Remedy Laws 
SEC. 411. TRADE REMEDY LAW ENFORCEMENT DIVISION. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—The Secretary of Homeland 
Security shall establish and maintain within the Of-
fice of International Trade of U.S. Customs and Bor-
der Protection, established under section 2(d) of the 
Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 
U.S.C. 2072(d)), a Trade Remedy Law Enforcement 
Division. 
(2) COMPOSITION.—The Trade Law Remedy En-
forcement Division shall be composed of— 
(A) headquarters personnel led by a Direc-
tor, who shall report to the Assistant Commis-
sioner of the Office of International Trade; and 
(B) a National Targeting and Analysis 
Group dedicated to preventing and countering 
evasion.
(3) DUTIES.—The Trade Remedy Law Enforce-
ment Division shall be dedicated— 
(A) to the development and administration 
of policies to prevent and counter evasion; 
(B) to direct enforcement and compliance 
assessment activities concerning evasion; 
(C) to the development and conduct of com-
mercial risk assessment targeting with respect to 
cargo destined for the United States in accord-
ance with subsection (c); 
(D) to issuing Trade Alerts described in 
subsection (d); and 
(E) to the development of policies for the 
application of single entry and continuous bonds 
for entries of covered merchandise to sufficiently 
protect the collection of antidumping and coun-
tervailing duties commensurate with the level of 
risk of noncollection. 
(b) DUTIES OF DIRECTOR.—The duties of the Director 
of the Trade Remedy Law Enforcement Division shall in-
clude— 
(1) directing the trade enforcement and compli-
ance assessment activities of U.S. Customs and Bor-
der Protection that concern evasion;
(2) facilitating, promoting, and coordinating co-
operation and the exchange of information between 
U.S. Customs and Border Protection, U.S. Immigra-
tion and Customs Enforcement, and other relevant 
agencies regarding evasion; 
(3) notifying on a timely basis the administering 
authority (as defined in section 771(1) of the Tariff 
Act of 1930 (19 U.S.C. 1677(1))) and the Commission 
(as defined in section 771(2) of the Tariff Act of 1930 
(19 U.S.C. 1677(2))) of any finding, determination, 
civil action, or criminal action taken by U.S. Cus-
toms and Border Protection or other Federal agency 
regarding evasion; 
(4) serving as the primary liaison between U.S. 
Customs and Border Protection and the public re-
garding United States Government activities con-
cerning evasion, including— 
(A) receive and transmit to the appropriate 
U.S. Customs and Border Protection office alle-
gations from parties of evasion; 
(B) upon request by the party or parties 
that submitted an allegation of evasion, provide 
information to such party or parties on the sta-
tus of U.S. Customs and Border Protection’s con-
sideration of the allegation and decision to pur-
sue or not pursue any administrative inquiries 
or other actions, such as changes in policies, pro-
cedures, or resource allocation as a result of the 
allegation; 
(C) as needed, request from the party or 
parties that submitted an allegation of evasion 
any additional information that may be relevant 
for U.S. Customs and Border Protection deter-
mining whether to initiate an administrative in-
quiry or take any other action regarding the al-
legation; 
(D) notify on a timely basis the party or 
parties that submitted such an allegation of the 
results of any administrative, civil or criminal 
actions taken by U.S. Customs and Border Pro-
tection or other Federal agency regarding eva-
sion as a direct or indirect result of the allega-
tion; 
(E) upon request, provide technical assist-
ance and advice to eligible small businesses to 
enable such businesses to prepare and submit al-
legations of evasion, except that the Director may 
deny assistance if the Director concludes that the 
allegation, if submitted, would not lead to the
(A) for evaluating the risk that cargo des-
tined for the United States may constitute evad-
ing covered merchandise; and 
(B) for issuing, as appropriate, Trade 
Alerts described in subsection (d); and 
(2) to the extent practicable and otherwise au-
thorized by law, use information available from the 
Automated Commercial System, the Automated Com-
mercial Environment computer system, the Auto-
mated Targeting System, the Automated Export Sys-
tem, the International Trade Data System, and the 
TECS, and any similar and successor systems, to ad-
minister the methodologies and standards established 
under paragraph (1). 
(d) TRADE ALERTS.—Based upon the application of 
the targeted risk assessment methodologies and standards 
established under subsection (c), the Director of the Trade 
Remedy Law Enforcement Division shall issue Trade Alerts 
or other such means of notification to directors of United 
States ports of entry directing further inspection, physical 
examination, or testing of merchandise to ensure compli-
ance with the trade remedy laws and to require additional 
bonds, cash deposits, or other security to ensure collection 
of any duties, taxes and fees owed.
SEC. 412. COLLECTION OF INFORMATION ON EVASION OF 
TRADE REMEDY LAWS. 
(a) AUTHORITY TO COLLECT INFORMATION.—To de-
termine whether covered merchandise is being entered into 
the customs territory of the United States through evasion, 
the Secretary, acting through the Commissioner— 
(1) shall exercise all existing authorities to collect 
information needed to make the determination; and 
(2) may collect such additional information as is 
necessary to make the determination through such 
methods as the Commissioner considers appropriate, 
including by issuing questionnaires with respect to 
the entry or entries at issue to— 
(A) a person who filed an allegation with 
respect to the covered merchandise; 
(B) a person who is alleged to have entered 
the covered merchandise into the customs terri-
tory of the United States through evasion; or 
(C) any other person who is determined to 
have information relevant to the allegation of 
entry of covered merchandise into the customs 
territory of the United States through evasion. 
(b) ADVERSE INFERENCE.— 
(1) IN GENERAL.—If the Secretary finds that a 
person who filed an allegation, a person alleged to 
have entered covered merchandise into the customs
territory of the United States through evasion, or a 
foreign producer or exporter of covered merchandise 
that is alleged to have entered into the customs terri-
tory of the United States through evasion, has failed 
to cooperate by not acting to the best of the person’s 
ability to comply with a request for information, the 
Secretary may, in making a determination whether 
an entry or entries of covered merchandise may con-
stitute merchandise that is entered into the customs 
territory of the United States through evasion, use an 
inference that is adverse to the interests of that person 
in selecting from among the facts otherwise available 
to determine whether evasion has occurred. 
(2) ADVERSE INFERENCE DESCRIBED.—An ad-
verse inference used under paragraph (1) may include 
reliance on information derived from— 
(A) the allegation of evasion of the trade 
remedy laws, if any, submitted to U.S. Customs 
and Border Protection; 
(B) a determination by the Commissioner 
in another investigation, proceeding, or other ac-
tion regarding evasion of the unfair trade laws; 
or 
(C) any other available information.
SEC. 413. ACCESS TO INFORMATION. 
(a) IN GENERAL.—Section 777(b)(1)(A)(ii) of the Tar-
iff Act of 1930 (19 U.S.C. 1677f(b)(1)(A)(ii)) is amended 
by inserting ‘‘negligence, gross negligence, or’’ after ‘‘regard-
ing’’. 
(b) ADDITIONAL INFORMATION.—Notwithstanding any 
other provision of law, the Secretary is authorized to pro-
vide to the Secretary of Commerce or the United States 
International Trade Commission any information that is 
necessary to enable the Secretary of Commerce or the United 
States International Trade Commission to assist the Sec-
retary to identify, through risk assessment targeting or oth-
erwise, covered merchandise that is entered into the customs 
territory of the United States through evasion. 
SEC. 414. COOPERATION WITH FOREIGN COUNTRIES ON 
PREVENTING EVASION OF TRADE REMEDY 
LAWS. 
(a) BILATERAL AGREEMENTS.— 
(1) IN GENERAL.—The Secretary shall seek to ne-
gotiate and enter into bilateral agreements with the 
customs authorities or other appropriate authorities 
of foreign countries for purposes of cooperation on 
preventing evasion of the trade remedy laws of the 
United States and the trade remedy laws of the other 
country.
(2) PROVISIONS
AND
AUTHORITIES.—The Sec-
retary shall seek to include in each such bilateral 
agreement the following provisions and authorities: 
(A) On the request of the importing coun-
try, the exporting country shall provide, con-
sistent with its laws, regulations, and proce-
dures, production, trade, and transit documents 
and other information necessary to determine 
whether an entry or entries exported from the ex-
porting country are subject to the importing 
country’s trade remedy laws. 
(B) On the written request of the importing 
country, the exporting country shall conduct a 
verification for purposes of enabling the import-
ing country to make a determination described 
in subparagraph (A). 
(C) The exporting country may allow the 
importing 
country 
to 
participate 
in 
a 
verification described in subparagraph (B), in-
cluding through a site visit. 
(D) If the exporting country does not allow 
participation of the importing country in a 
verification described in subparagraph (B), the 
importing country may take this fact into con-
sideration in its trade enforcement and compli-
ance assessment activities regarding the compli-
ance of the exporting country’s exports with the 
importing country’s trade remedy laws. 
(b) CONSIDERATION.—The Commissioner is authorized 
to take into consideration whether a country is a signatory 
to a bilateral agreement described in subsection (a) and the 
extent to which the country is cooperating under the bilat-
eral agreement for purposes of trade enforcement and com-
pliance assessment activities of U.S. Customs and Border 
Protection that concern evasion by such country’s exports. 
(c) REPORT.—Not later than December 31 of each year 
beginning after the date of the enactment of this Act, the 
Secretary shall submit to the appropriate congressional 
committees a report summarizing— 
(1) the status of any ongoing negotiations of bi-
lateral agreements described in subsection (a), includ-
ing the identities of the countries involved in such ne-
gotiations; 
(2) the terms of any completed bilateral agree-
ments described in subsection (a); and 
(3) bilateral cooperation and other activities con-
ducted pursuant to or enabled by any completed bilat-
eral agreements described in subsection (a).
SEC. 415. TRADE NEGOTIATING OBJECTIVES. 
The principal negotiating objectives of the United 
States shall include obtaining the objectives of the bilateral 
agreements described under section 414(a) for any trade 
agreements under negotiation as of the date of the enact-
ment of this Act or future trade agreement negotiations. 
Subtitle B—Investigation of 
Evasion of Trade Remedy Laws 
SEC. 421. PROCEDURES FOR INVESTIGATION OF EVASION 
OF 
ANTIDUMPING 
AND 
COUNTERVAILING 
DUTY ORDERS. 
(a) IN GENERAL.—Title VII of the Tariff Act of 1930 
(19 U.S.C. 1671 et seq.) is amended by inserting after sec-
tion 781 the following: 
‘‘SEC. 781A. PROCEDURES FOR PREVENTION OF EVASION 
OF 
ANTIDUMPING 
AND 
COUNTERVAILING 
DUTY ORDERS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ADMINISTERING
AUTHORITY.—The term 
‘administering authority’ has the meaning given that 
term in section 771. 
‘‘(2) COMMISSIONER.—The term ‘Commissioner’ 
means the Commissioner of U.S. Customs and Border 
Protection.
‘‘(3) COVERED MERCHANDISE.—The term ‘cov-
ered merchandise’ means merchandise that is subject 
to— 
‘‘(A) a countervailing duty order issued 
under section 706; or 
‘‘(B) an antidumping duty order issued 
under section 736. 
‘‘(4) EVASION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘evasion’ refers to 
entering covered merchandise into the customs 
territory of the United States by means of any 
document or electronically transmitted data or 
information, written or oral statement, or act 
that is material and false, or any omission that 
is material, and that results in any cash deposit 
or other security or any amount of applicable 
antidumping or countervailing duties being re-
duced or not being applied with respect to the 
merchandise. 
‘‘(B) EXCEPTION FOR CLERICAL ERROR.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), the term ‘evasion’ does not 
include entering covered merchandise into
the customs territory of the United States 
by means of— 
‘‘(I) a document or electronically 
transmitted data or information, writ-
ten or oral statement, or act that is 
false as a result of a clerical error; or 
‘‘(II) an omission that results 
from a clerical error. 
‘‘(ii) PATTERNS
OF
NEGLIGENT
CON-
DUCT.—If the administering authority de-
termines that a person has entered covered 
merchandise into the customs territory of 
the United States by means of a clerical 
error referred to in subclause (I) or (II) of 
clause (i) and that the clerical error is part 
of a pattern of negligent conduct on the 
part of that person, the administering au-
thority may determine, notwithstanding 
clause (i), that the person has entered such 
covered merchandise into the customs terri-
tory of the United States by means of eva-
sion. 
‘‘(iii) ELECTRONIC REPETITION OF ER-
RORS.—For purposes of clause (ii), the mere 
unintentional repetition by an electronic
system of an initial clerical error does not 
constitute a pattern of negligent conduct. 
‘‘(iv) RULE OF CONSTRUCTION.—A de-
termination by the administering authority 
that a person has entered covered merchan-
dise into the customs territory of the United 
States by means of a clerical error referred 
to in subclause (I) or (II) of clause (i) rath-
er than by means of evasion shall not be 
construed to excuse that person from the 
payment of any duties applicable to the 
merchandise. 
‘‘(b) INVESTIGATION
BY ADMINISTERING AUTHOR-
ITY.— 
‘‘(1) PROCEDURES FOR INITIATING INVESTIGA-
TIONS.— 
‘‘(A) INITIATION
BY
ADMINISTERING
AU-
THORITY.—An investigation under this sub-
section shall be initiated with respect to mer-
chandise imported into the United States when-
ever the administering authority determines, 
from information available to the administering 
authority, that an investigation is warranted 
with respect to whether the merchandise is cov-
ered merchandise that has entered into the cus-
toms territory of the United States by means of 
evasion. 
‘‘(B) INITIATION BY PETITION OR REFER-
RAL.— 
‘‘(i) IN GENERAL.—The administering 
authority shall determine whether to ini-
tiate an investigation under this subpara-
graph not later than 30 days after the date 
on which the administering authority re-
ceives a petition described in clause (ii) or 
a referral described in clause (iii). 
‘‘(ii) PETITION
DESCRIBED.—A peti-
tion described in this clause is a petition 
that— 
‘‘(I) is filed with the admin-
istering authority by an interested 
party specified in subparagraph (A), 
(C), (D), (E), (F), or (G) of section 
771(9); 
‘‘(II) alleges that merchandise im-
ported into the United States is cov-
ered merchandise that has entered into 
the customs territory of the United 
States by means of evasion; and
100 
‘‘(III) is accompanied by infor-
mation reasonably available to the pe-
titioner supporting those allegations. 
‘‘(iii) REFERRAL
DESCRIBED.—A re-
ferral described in this clause is a referral 
made by the Commissioner pursuant to sub-
section (c)(1). 
‘‘(2) TIME LIMITS FOR DETERMINATIONS.— 
‘‘(A) PRELIMINARY DETERMINATION.— 
‘‘(i) IN GENERAL.—Not later than 90 
days after the administering authority ini-
tiates an investigation under paragraph (1) 
with respect to merchandise, the admin-
istering authority shall issue a preliminary 
determination, based on information avail-
able to the administering authority at the 
time of the determination, with respect to 
whether there is a reasonable basis to believe 
or suspect that the merchandise is covered 
merchandise that has entered into the cus-
toms territory of the United States by 
means of evasion. 
‘‘(ii) EXPEDITED PROCEDURES.—If the 
administering authority determines that ex-
pedited action is warranted with respect to
102 
with respect to the entry of the merchandise, as 
well as any other documentation or information 
requested by the administering authority. 
‘‘(B) ACCESS OF INTERESTED PARTIES.— 
Not later than 10 business days after the date on 
which the administering authority initiates an 
investigation under paragraph (1) with respect 
to merchandise, the administering authority 
shall provide to the authorized representative of 
each interested party that filed a petition under 
paragraph (1) or otherwise participates in a 
proceeding, pursuant to a protective order, the 
copies of the entry documentation and any other 
information received by the administering au-
thority under subparagraph (A). 
‘‘(C) BUSINESS PROPRIETARY INFORMATION 
FROM PRIOR SEGMENTS.—If an authorized rep-
resentative of an interested party participating 
in an investigation under paragraph (1) has ac-
cess to business proprietary information released 
pursuant to an administrative protective order 
in a proceeding under subtitle A, B, or C of title 
VII of the Tariff Act of 1930 that is relevant to 
the investigation conducted under paragraph (1), 
that authorized representative may submit such
103 
information to the administering authority for 
its consideration in the context of the investiga-
tion conducted under paragraph (1). 
‘‘(4) AUTHORITY TO COLLECT AND VERIFY ADDI-
TIONAL INFORMATION.—In making a determination 
under paragraph (2) with respect to covered merchan-
dise, the administering authority may collect such ad-
ditional information as is necessary to make the de-
termination through such methods as the admin-
istering authority considers appropriate, including 
by— 
‘‘(A) issuing a questionnaire with respect to 
such covered merchandise to— 
‘‘(i) a person that filed an allegation 
under paragraph (1)(B)(ii) that resulted in 
the initiation of an investigation under 
paragraph (1)(A) with respect to such cov-
ered merchandise; 
‘‘(ii) a person alleged to have entered 
such covered merchandise into the customs 
territory of the United States by means of 
evasion; 
‘‘(iii) a person that is a foreign pro-
ducer or exporter of such covered merchan-
dise; or
104 
‘‘(iv) the government of a country from 
which such covered merchandise was ex-
ported; 
‘‘(B) conducting verifications, including on- 
site verifications, of any relevant information; 
and 
‘‘(C) requesting— 
‘‘(i) that the Commissioner provide 
any information and data available to U.S. 
Customs and Border Protection, and 
‘‘(ii) that the Commissioner gather ad-
ditional necessary information from the im-
porter of covered merchandise and other rel-
evant parties. 
‘‘(5) ADVERSE
INFERENCE.—If the admin-
istering authority finds that a person described in 
clause (i), (ii), or (iii) of paragraph (4)(A) has failed 
to cooperate by not acting to the best of the person’s 
ability to comply with a request for information, the 
administering authority may, in making a deter-
mination under paragraph (2), use an inference that 
is adverse to the interests of that person in selecting 
from among the facts otherwise available to make the 
determination.
105 
‘‘(6) EFFECT OF AFFIRMATIVE PRELIMINARY DE-
TERMINATION.—If the administering authority makes 
a preliminary determination under paragraph (2)(A) 
that merchandise is covered merchandise that has en-
tered into the customs territory of the United States 
by means of evasion, the administering authority 
shall instruct U.S. Customs and Border Protection— 
‘‘(A) to suspend liquidation of each entry of 
the merchandise that— 
‘‘(i) enters on or after the date of the 
preliminary determination; or 
‘‘(ii) enters before that date, if the liq-
uidation of the entry is not final on that 
date; and 
‘‘(B) to require the posting of a cash deposit 
for each entry of the merchandise in an amount 
determined pursuant to the order, or administra-
tive review conducted under section 751, that ap-
plies to the merchandise. 
‘‘(7) EFFECT
OF
AFFIRMATIVE
FINAL
DETER-
MINATION.— 
‘‘(A) IN
GENERAL.—If the administering 
authority makes a final determination under 
paragraph (2)(B) that merchandise is covered 
merchandise that has entered into the customs
106 
territory of the United States by means of eva-
sion, the administering authority shall instruct 
U.S. Customs and Border Protection— 
‘‘(i) to assess duties on the merchandise 
in an amount determined pursuant to the 
order, or administrative review conducted 
under section 751, that applies to the mer-
chandise; 
‘‘(ii) notwithstanding section 501, to 
reliquidate, in accordance with such order 
or administrative review, each entry of the 
merchandise that was liquidated and is de-
termined to include covered merchandise; 
and 
‘‘(iii) to review and reassess the 
amount of bond or other security the im-
porter is required to post for such merchan-
dise entered on or after the date of the final 
determination to ensure the protection of 
revenue and compliance with the law. 
‘‘(B) ADDITIONAL AUTHORITY.—If the ad-
ministering authority makes a final determina-
tion under paragraph (2)(B) that merchandise is 
covered merchandise that has entered into the 
customs territory of the United States by means
107 
of evasion, the administering authority may in-
struct U.S. Customs and Border Protection to re-
quire the importer of the merchandise to post a 
cash deposit or bond on such merchandise en-
tered on or after the date of the final determina-
tion in an amount the administering authority 
determines in the final determination to be owed 
with respect to the merchandise. 
‘‘(8) EFFECT OF NEGATIVE FINAL DETERMINA-
TION.—If the administering authority makes a final 
determination under paragraph (2)(B) that merchan-
dise is not covered merchandise that has entered into 
the customs territory of the United States by means 
of evasion, the administering authority shall termi-
nate the suspension of liquidation and refund any 
cash deposit imposed pursuant to paragraph (6) with 
respect to the merchandise. 
‘‘(9) NOTIFICATION.—Not later than 5 business 
days after making a determination under paragraph 
(2) with respect to covered merchandise, the admin-
istering authority may provide to importers, in such 
manner as the administering authority determines 
appropriate, information discovered in the investiga-
tion that the administering authority determines will 
help educate importers with respect to importing mer-
108 
chandise into the customs territory of the United 
States in accordance with all applicable laws and 
regulations. 
‘‘(10) SPECIAL RULE FOR CASES IN WHICH THE 
PRODUCER OR EXPORTER IS UNKNOWN.—If the ad-
ministering authority is unable to determine the ac-
tual producer or exporter of the merchandise with re-
spect to which the administering authority initiated 
an investigation under paragraph (1), the admin-
istering authority shall, in requiring the posting of a 
cash deposit under paragraph (6) or assessing duties 
pursuant to paragraph (7)(A), impose the cash de-
posit or duties (as the case may be) in the highest 
amount applicable to any producer or exporter of the 
merchandise pursuant to any order, or any adminis-
trative review conducted under section 751. 
‘‘(11) PUBLICATION OF DETERMINATIONS.—The 
administering authority shall publish in the Federal 
Register each notice of initiation of an investigation 
made under paragraph (1)(A), each preliminary de-
termination made under paragraph (2)(A), and each 
final determination made under paragraph (2)(B). 
‘‘(12) REFERRALS TO OTHER AGENCIES.— 
‘‘(A) AFTER
PRELIMINARY
DETERMINA-
TION.—Notwithstanding section 777 and subject
109 
to subparagraph (C), when the administering 
authority makes an affirmative preliminary de-
termination under paragraph (2)(A), the admin-
istering authority shall— 
‘‘(i) transmit the administrative record 
to the Commissioner for such additional ac-
tion as the Commissioner determines appro-
priate, including proceedings under section 
592; and 
‘‘(ii) at the request of the head of an-
other agency, transmit the administrative 
record to the head of that agency. 
‘‘(B) AFTER FINAL DETERMINATION.—Not-
withstanding section 777 and subject to subpara-
graph (C), when the administering authority 
makes an affirmative final determination under 
paragraph (2)(B), the administering authority 
shall— 
‘‘(i) transmit the complete administra-
tive record to the Commissioner; and 
‘‘(ii) at the request of the head of an-
other agency, transmit the complete admin-
istrative record to the head of that agency. 
‘‘(c) REFERRAL BY U.S. CUSTOMS AND BORDER PRO-
TECTION.—In the event the Commissioner receives informa-
110 
tion that a person has entered covered merchandise into the 
customs territory of the United States through evasion, but 
is not able to determine whether the merchandise is in fact 
covered merchandise, the Commissioner shall— 
‘‘(1) refer the matter to the administering au-
thority for additional proceedings under subsection 
(b); and 
‘‘(2) transmit to the administering authority— 
‘‘(A) copies of the entry documents and in-
formation required by section 484(a)(1) relating 
to the merchandise; and 
‘‘(B) any additional records or information 
that the Commissioner considers appropriate. 
‘‘(d) COOPERATION BETWEEN U.S. CUSTOMS
AND 
BORDER PROTECTION AND THE DEPARTMENT OF COM-
MERCE.— 
‘‘(1) NOTIFICATION OF INVESTIGATIONS.—Upon 
receiving a petition and upon initiating an investiga-
tion under subsection (b), the administering authority 
shall notify the Commissioner. 
‘‘(2) 
PROCEDURES
FOR
COOPERATION.—Not 
later than 180 days after the date of the enactment 
of the Trade Facilitation and Trade Enforcement Act 
of 2015, the Commissioner and the administering au-
thority shall establish procedures to ensure maximum
111 
cooperation and communication between U.S. Cus-
toms and Border Protection and the administering 
authority in order to quickly, efficiently, and accu-
rately investigate allegations of evasion of anti-
dumping and countervailing duty orders. 
‘‘(e) ANNUAL REPORT ON PREVENTING EVASION OF 
ANTIDUMPING AND COUNTERVAILING DUTY ORDERS.— 
‘‘(1) IN GENERAL.—Not later than February 28 
of each year beginning in 2016, the Under Secretary 
for International Trade of the Department of Com-
merce shall submit to the Committee on Finance and 
the Committee on Appropriations of the Senate and 
the Committee on Ways and Means and the Com-
mittee on Appropriations of the House of Representa-
tives a report on the efforts being taken under sub-
section (b) to prevent evasion of antidumping and 
countervailing duty orders. 
‘‘(2) CONTENTS.—Each report required by para-
graph (1) shall include, for the calendar year pre-
ceding the submission of the report— 
‘‘(A)(i) the number of investigations initi-
ated pursuant to subsection (b); and 
‘‘(ii) a description of such investigations, 
including—
112 
‘‘(I) the results of such investigations; 
and 
‘‘(II) the amount of antidumping and 
countervailing duties collected as a result of 
such investigations; and 
‘‘(B) the number of referrals made by the 
Commissioner pursuant to subsection (c).’’. 
(b) TECHNICAL AMENDMENT.—The table of contents 
for title VII of the Tariff Act of 1930 is amended by insert-
ing after the item relating to section 781 the following: 
‘‘Sec. 781A. Procedures for prevention of evasion of antidumping and counter-
vailing duty orders.’’. 
(c) JUDICIAL REVIEW.—Section 516A(a)(2) of the 
Tariff Act of 1930 (19 U.S.C. 1516a(a)(2)) is amended— 
(1) in subparagraph (A)(i)(I), by striking ‘‘or 
(viii)’’ and inserting ‘‘(viii), or (ix)’’; and 
(2) in subparagraph (B), by inserting at the end 
the following: 
‘‘(ix) A determination by the admin-
istering authority under section 781A.’’. 
(d) REGULATIONS.—Not later than 180 days after the 
date of the enactment of this Act— 
(1) the Secretary of Commerce shall prescribe 
such regulations as may be necessary to carry out 
subsection (b) of section 781A of the Tariff Act of 
1930 (as added by subsection (a) of this section); and
113 
(2) the Commissioner shall prescribe such regula-
tions as may be necessary to carry out subsection (c) 
of such section 781A. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall— 
(1) take effect on the date that is 180 days after 
the date of the enactment of this Act; and 
(2) apply with respect to merchandise entered on 
or after such date of enactment. 
SEC. 422. GOVERNMENT ACCOUNTABILITY OFFICE REPORT. 
Not later than 2 years after the date of the enactment 
of this Act, the Comptroller General of the United States 
shall submit to the Committee on Finance and the Com-
mittee on Appropriations of the Senate and the Committee 
on Ways and Means and the Committee on Appropriations 
of the House of Representatives a report assessing the effec-
tiveness of— 
(1) the provisions of, and amendments made by, 
this subtitle; and 
(2) the actions taken and procedures developed 
by the Secretary of Commerce and the Commissioner 
pursuant to such provisions and amendments to pre-
vent evasion of antidumping and countervailing duty 
orders under title VII of the Tariff Act of 1930 (19 
U.S.C. 1671 et seq.).
114 
Subtitle C—Other Matters 
SEC. 431. ALLOCATION AND TRAINING OF PERSONNEL. 
The Commissioner shall, to the maximum extent pos-
sible, ensure that U.S. Customs and Border Protection— 
(1) employs sufficient personnel who have exper-
tise in, and responsibility for, preventing and inves-
tigating the entry of covered merchandise into the 
customs territory of the United States through eva-
sion; 
(2) on the basis of risk assessment metrics, as-
signs sufficient personnel with primary responsibility 
for preventing the entry of covered merchandise into 
the customs territory of the United States through 
evasion to the ports of entry in the United States at 
which the Commissioner determines potential evasion 
presents the most substantial threats to the revenue of 
the United States; and 
(3) provides adequate training to relevant per-
sonnel to increase expertise and effectiveness in the 
prevention and identification of entries of covered 
merchandise into the customs territory of the United 
States through evasion.
115 
SEC. 432. ANNUAL REPORT ON PREVENTION OF EVASION 
OF 
ANTIDUMPING 
AND 
COUNTERVAILING 
DUTY ORDERS. 
(a) IN GENERAL.—Not later than February 28 of each 
year, beginning in 2016, the Commissioner, in consultation 
with the Secretary of Commerce and the Director of U.S. 
Immigration and Customs Enforcement, shall submit to the 
appropriate congressional committees a report on the efforts 
being taken to prevent and investigate evasion. 
(b) CONTENTS.—Each report required under sub-
section (a) shall include— 
(1) for the calendar year preceding the submis-
sion of the report— 
(A) a summary of the efforts of U.S. Cus-
toms and Border Protection to prevent and iden-
tify evasion; 
(B) the number of allegations of evasion re-
ceived and the number of allegations of evasion 
resulting in any administrative, civil, or crimi-
nal actions by U.S. Customs and Border Protec-
tion or any other agency; 
(C) a summary of the completed adminis-
trative inquiries of evasion, including the num-
ber and nature of the inquiries initiated, con-
ducted, or completed, as well as their resolution;
116 
(D) with respect to inquiries that lead to 
issuance of a penalty notice, the penalty 
amounts; 
(E) the amounts of antidumping and coun-
tervailing duties collected as a result of any ac-
tions by U.S. Customs and Border Protection or 
any other agency; 
(F) a description of the allocation of per-
sonnel and other resources of U.S. Customs and 
Border Protection and U.S. Immigration and 
Customs Enforcement to prevent, identify, and 
investigate evasion, including any assessments 
conducted regarding the allocation of such per-
sonnel and resources; and 
(G) a description of training conducted to 
increase expertise and effectiveness in the preven-
tion, identification, and investigation of evasion; 
and 
(2) a description of U.S. Customs and Border 
Protection processes and procedures to prevent and 
identify evasion, including— 
(A) the specific guidelines, policies, and 
practices used by U.S. Customs and Border Pro-
tection to ensure that allegations of evasion are
117 
promptly evaluated and acted upon in a timely 
manner; 
(B) an evaluation of the efficacy of such ex-
isting guidelines, policies, and practices; 
(C) identification of any changes since the 
last report that have materially improved or re-
duced the effectiveness of U.S. Customs and Bor-
der Protection to prevent and identify evasion; 
(D) a description of the development and 
implementation of policies for the application of 
single entry and continuous bonds for entries of 
covered merchandise to sufficiently protect the 
collection of antidumping and countervailing du-
ties commensurate with the level of risk on non-
collection; 
(E) the processes and procedures for in-
creased cooperation and information sharing 
with the Department of Commerce, U.S. Immi-
gration and Customs Enforcement, and any 
other relevant Federal agencies to prevent and 
identify evasion; and 
(F) identification of any recommended pol-
icy changes of other Federal agencies or legisla-
tive changes to improve the effectiveness of U.S.
118 
Customs and Border Protection to prevent and 
identify evasion. 
SEC. 433. ADDRESSING CIRCUMVENTION BY NEW SHIPPERS. 
Section 751(a)(2)(B) of the Tariff Act of 1930 (19 
U.S.C. 1675(a)(2)(B)) is amended— 
(1) by striking clause (iii); 
(2) by redesignating clause (iv) as clause (iii); 
and 
(3) inserting after clause (iii), as redesignated by 
paragraph (2) of this section, the following: 
‘‘(iv) 
DETERMINATIONS
BASED
ON 
BONAFIDE
SALES.—Any weighted average 
dumping margin or individual counter-
vailing duty rate determined for an ex-
porter or producer in a review conducted 
under clause (i) shall be based solely on the 
bona fide United States sales of an exporter 
or producer, as the case may be, made dur-
ing the period covered by the review. In de-
termining whether the United States sales of 
an exporter or producer made during the 
period covered by the review were bona fide, 
the administering authority shall consider, 
depending 
on 
the 
circumstances 
sur-
rounding such sales—
119 
‘‘(I) the prices of such sales; 
‘‘(II) whether such sales were 
made in commercial quantities; 
‘‘(III) the timing of such sales; 
‘‘(IV) the expenses arising from 
such sales; 
‘‘(V) whether the subject merchan-
dise involved in such sales was resold 
in the United States at a profit; 
‘‘(VI) whether such sales were 
made on an arms-length basis; and 
‘‘(VII) any other factor the ad-
ministering authority determines to be 
relevant as to whether such sales are, 
or are not, likely to be typical of those 
the exporter or producer will make 
after completion of the review.’’. 
TITLE 
V—IMPROVEMENTS 
TO 
ANTIDUMPING 
AND 
COUN-
TERVAILING DUTY LAWS 
SEC. 501. SHORT TITLE. 
This title may be cited as the ‘‘American Trade En-
forcement Effectiveness Act’’.
120 
SEC. 502. CONSEQUENCES OF FAILURE TO COOPERATE 
WITH A REQUEST FOR INFORMATION IN A 
PROCEEDING. 
Section 776 of the Tariff Act of 1930 (19 U.S.C. 1677e) 
is amended— 
(1) in subsection (b)— 
(A) 
by 
redesignating 
paragraphs 
(1) 
through (4) as subparagraphs (A) through (D), 
respectively, and by moving such subparagraphs, 
as so redesignated, 2 ems to the right; 
(B) by striking ‘‘ADVERSE INFERENCES.— 
If’’ and inserting the following: ‘‘ADVERSE IN-
FERENCES.— 
‘‘(1) IN GENERAL.—If’’; 
(C) by striking ‘‘under this title, may use’’ 
and inserting the following: ‘‘under this title— 
‘‘(A) may use’’; and 
(D) by striking ‘‘facts otherwise available. 
Such adverse inference may include’’ and insert-
ing the following: ‘‘facts otherwise available; and 
‘‘(B) is not required to determine, or make 
any adjustments to, a countervailable subsidy 
rate or weighted average dumping margin based 
on any assumptions about information the inter-
ested party would have provided if the interested
121 
party had complied with the request for informa-
tion. 
‘‘(2) POTENTIAL SOURCES OF INFORMATION FOR 
ADVERSE INFERENCES.—An adverse inference under 
paragraph (1)(A) may include’’; 
(2) in subsection (c)— 
(A) by striking ‘‘CORROBORATION OF SEC-
ONDARY INFORMATION.—When the’’ and insert-
ing the following: ‘‘CORROBORATION
OF SEC-
ONDARY INFORMATION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), when the’’; and 
(B) by adding at the end the following: 
‘‘(2) EXCEPTION.—The administrative authority 
and the Commission shall not be required to corrobo-
rate any dumping margin or countervailing duty ap-
plied in a separate segment of the same proceeding.’’; 
and 
(3) by adding at the end the following: 
‘‘(d) SUBSIDY RATES AND DUMPING MARGINS IN AD-
VERSE INFERENCE DETERMINATIONS.— 
‘‘(1) IN GENERAL.—If the administering author-
ity uses an inference that is adverse to the interests 
of a party under subsection (b)(1)(A) in selecting
122 
among the facts otherwise available, the admin-
istering authority may— 
‘‘(A) in the case of a countervailing duty 
proceeding— 
‘‘(i) use a countervailable subsidy rate 
applied for the same or similar program in 
a countervailing duty proceeding involving 
the same country, or 
‘‘(ii) if there is no same or similar 
program, use a countervailable subsidy rate 
for a subsidy program from a proceeding 
that the administering authority considers 
reasonable to use, and 
‘‘(B) in the case of an antidumping duty 
proceeding, use any dumping margin from any 
segment of the proceeding under the applicable 
antidumping order. 
‘‘(2) DISCRETION TO APPLY HIGHEST RATE.—In 
carrying out paragraph (1), the administering au-
thority may apply any of the countervailable subsidy 
rates or dumping margins specified under that para-
graph, including the highest such rate or margin, 
based on the evaluation by the administering author-
ity of the situation that resulted in the administering
123 
authority using an adverse inference in selecting 
among the facts otherwise available. 
‘‘(3) NO OBLIGATION TO MAKE CERTAIN ESTI-
MATES OR ADDRESS CERTAIN CLAIMS.—If the admin-
istering authority uses an adverse inference under 
subsection (b)(1)(A) in selecting among the facts oth-
erwise available, the administering authority is not 
required, for purposes of subsection (c) or for any 
other purpose— 
‘‘(A) to estimate what the countervailable 
subsidy rate or dumping margin would have 
been if the interested party found to have failed 
to cooperate under subsection (b)(1) had cooper-
ated, or 
‘‘(B) to demonstrate that the countervailable 
subsidy rate or dumping margin used by the ad-
ministering authority reflects an alleged com-
mercial reality of the interested party.’’. 
SEC. 503. DEFINITION OF MATERIAL INJURY. 
(a) EFFECT OF PROFITABILITY OF DOMESTIC INDUS-
TRIES.—Section 771(7) of the Tariff Act of 1930 (19 U.S.C. 
1677(7)) is amended by adding at the end the following: 
‘‘(J) 
EFFECT
OF
PROFITABILITY.—The 
Commission may not determine that there is no 
material injury or threat of material injury to
124 
an industry in the United States merely because 
that industry is profitable or because the per-
formance of that industry has recently im-
proved.’’. 
(b) EVALUATION OF IMPACT ON DOMESTIC INDUSTRY 
IN DETERMINATION OF MATERIAL INJURY.—Subclause (I) 
of section 771(7)(C)(iii) of the Tariff Act of 1930 (19 U.S.C. 
1677(7)(C)(iii)) is amended to read as follows: 
‘‘(I) actual and potential decline 
in output, sales, market share, gross 
profits, operating profits, net profits, 
ability to service debt, productivity, re-
turn on investments, return on assets, 
and utilization of capacity,’’. 
(c) CAPTIVE PRODUCTION.—Section 771(7)(C)(iv) of 
the Tariff Act of 1930 (19 U.S.C. 1677(7)(C)(iv)) is amend-
ed— 
(1) in subclause (I), by striking the comma and 
inserting ‘‘, and’’; 
(2) in subclause (II), by striking ‘‘, and’’ and in-
serting a comma; and 
(3) by striking subclause (III).
125 
SEC. 504. PARTICULAR MARKET SITUATION. 
(a) DEFINITION OF ORDINARY COURSE OF TRADE.— 
Section 771(15) of the Tariff Act of 1930 (19 U.S.C. 
1677(15)) is amended by adding at the end the following: 
‘‘(C) Situations in which the administering 
authority determines that the particular market 
situation prevents a proper comparison with the 
export price or constructed export price.’’. 
(b) 
DEFINITION
OF
NORMAL
VALUE.—Section 
773(a)(1)(B)(ii)(III) of the Tariff Act of 1930 (19 U.S.C. 
1677b(a)(1)(B)(ii)(III)) is amended by striking ‘‘in such 
other country.’’. 
(c) DEFINITION OF CONSTRUCTED VALUE.—Section 
773(e) of the Tariff Act of 1930 (19 U.S.C. 1677b(e)) is 
amended— 
(1) in paragraph (1), by striking ‘‘business’’ and 
inserting ‘‘trade’’; and 
(2) by striking the flush text at the end and in-
serting the following: 
‘‘For purposes of paragraph (1), if a particular market sit-
uation exists such that the cost of materials and fabrication 
or other processing of any kind does not accurately reflect 
the cost of production in the ordinary course of trade, the 
administering authority may use another calculation meth-
odology under this subtitle or any other calculation method-
ology. For purposes of paragraph (1), the cost of materials
126 
shall be determined without regard to any internal tax in 
the exporting country imposed on such materials or their 
disposition that is remitted or refunded upon exportation 
of the subject merchandise produced from such materials.’’. 
SEC. 505. DISTORTION OF PRICES OR COSTS. 
(a) INVESTIGATION OF BELOW-COST SALES.—Section 
773(b)(2) of the Tariff Act of 1930 (19 U.S.C. 1677b(b)(2)) 
is amended by striking subparagraph (A) and inserting the 
following: 
‘‘(A) REASONABLE
GROUNDS
TO
BELIEVE 
OR SUSPECT.— 
‘‘(i) REVIEW.—In a review conducted 
under section 751 involving a specific ex-
porter, there are reasonable grounds to be-
lieve or suspect that sales of the foreign like 
product have been made at prices that are 
less than the cost of production of the prod-
uct if the administering authority dis-
regarded some or all of the exporter’s sales 
pursuant to paragraph (1) in the investiga-
tion or, if a review has been completed, in 
the most recently completed review. 
‘‘(ii) REQUESTS FOR INFORMATION.— 
In an investigation initiated under section 
732 or a review conducted under section
127 
751, the administering authority shall re-
quest information necessary to calculate the 
constructed value and cost of production 
under subsections (e) and (f) to determine 
whether there are reasonable grounds to be-
lieve or suspect that sales of the foreign like 
product have been made at prices that rep-
resent less than the cost of production of the 
product.’’. 
(b) PRICES AND COSTS IN NONMARKET ECONOMIES.— 
Section 773(c) of the Tariff Act of 1930 (19 U.S.C. 
1677b(c)) is amended by adding at the end the following: 
‘‘(5) DISCRETION TO DISREGARD CERTAIN PRICE 
OR COST VALUES.—In valuing the factors of produc-
tion under paragraph (1) for the subject merchandise, 
the administering authority may disregard price or 
cost values without further investigation if the admin-
istering authority has determined that broadly avail-
able export subsidies existed or particular instances of 
subsidization occurred with respect to those price or 
cost values or if those price or cost values were subject 
to an antidumping order.’’.
128 
SEC. 506. REDUCTION IN BURDEN ON DEPARTMENT OF 
COMMERCE BY REDUCING THE NUMBER OF 
VOLUNTARY RESPONDENTS. 
Section 782(a) of the Tariff Act of 1930 (19 U.S.C. 
1677m(a)) is amended— 
(1) in paragraph (1), by redesignating subpara-
graphs (A) and (B) as clauses (i) and (ii), respec-
tively, and by moving such clauses, as so redesig-
nated, 2 ems to the right; 
(2) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively, and by mov-
ing such subparagraphs, as so redesignated, 2 ems to 
the right; 
(3) by striking ‘‘INVESTIGATIONS
AND
RE-
VIEWS.—In’’ and inserting the following: ‘‘INVESTIGA-
TIONS AND REVIEWS.— 
‘‘(1) IN GENERAL.—In’’; 
(4) in paragraph (1), as designated by para-
graph (3), by amending subparagraph (B), as redes-
ignated by paragraph (2), to read as follows: 
‘‘(B) the number of exporters or producers 
subject to the investigation or review is not so 
large that any additional individual examina-
tion of such exporters or producers would be un-
duly burdensome to the administering authority
129 
and inhibit the timely completion of the inves-
tigation or review.’’; and 
(5) by adding at the end the following: 
‘‘(2) DETERMINATION
OF
UNDULY
BURDEN-
SOME.—In determining if an individual examination 
under paragraph (1)(B) would be unduly burden-
some, the administering authority may consider the 
following: 
‘‘(A) The complexity of the issues or infor-
mation presented in the proceeding, including 
questionnaires and any responses thereto. 
‘‘(B) Any prior experience of the admin-
istering authority in the same or similar pro-
ceeding. 
‘‘(C) The total number of investigations 
under subtitle A or B and reviews under section 
751 being conducted by the administering au-
thority as of the date of the determination. 
‘‘(D) Such other factors relating to the time-
ly completion of each such investigation and re-
view as the administering authority considers 
appropriate.’’. 
SEC. 507. APPLICATION TO CANADA AND MEXICO. 
Pursuant to article 1902 of the North American Free 
Trade Agreement and section 408 of the North American
130 
Free Trade Agreement Implementation Act (19 U.S.C. 
3438), the amendments made by this title shall apply with 
respect to goods from Canada and Mexico. 
TITLE VI—ADDITIONAL 
ENFORCEMENT PROVISIONS 
SEC. 601. TRADE ENFORCEMENT PRIORITIES. 
(a) IN GENERAL.—Section 310 of the Trade Act of 
1974 (19 U.S.C. 2420) is amended to read as follows: 
‘‘SEC. 310. TRADE ENFORCEMENT PRIORITIES. 
‘‘(a) TRADE ENFORCEMENT PRIORITIES, CONSULTA-
TIONS, AND REPORT.— 
‘‘(1) TRADE
ENFORCEMENT
PRIORITIES
CON-
SULTATIONS.—Not later than May 31 of each cal-
endar year that begins after the date of the enactment 
of the Trade Facilitation and Trade Enforcement Act 
of 2015, the United States Trade Representative (in 
this section referred to as the ‘Trade Representative’) 
shall consult with the Committee on Finance of the 
Senate and the Committee on Ways and Means of the 
House of Representatives with respect to the 
prioritization of acts, policies, or practices of foreign 
governments that raise concerns with respect to obli-
gations under the WTO Agreements or any other 
trade agreement to which the United States is a
131 
party, or otherwise create or maintain barriers to 
United States goods, services, or investment. 
‘‘(2) IDENTIFICATION OF TRADE ENFORCEMENT 
PRIORITIES.—In identifying acts, policies, or prac-
tices of foreign governments as trade enforcement pri-
orities under this subsection, the United States Trade 
Representative shall focus on those acts, policies, and 
practices the elimination of which is likely to have the 
most significant potential to increase United States 
economic growth, and take into account all relevant 
factors, including— 
‘‘(A) the economic significance of any po-
tential inconsistency between an obligation as-
sumed by a foreign government pursuant to a 
trade agreement to which both the foreign gov-
ernment and the United States are parties and 
the acts, policies, or practices of that government; 
‘‘(B) the impact of the acts, policies, or 
practices of a foreign government on maintain-
ing and creating United States jobs and produc-
tive capacity; 
‘‘(C) the major barriers and trade distorting 
practices described in the most recent National 
Trade Estimate required under section 181(b);
132 
‘‘(D) the major barriers and trade dis-
torting practices described in other relevant re-
ports addressing international trade and invest-
ment barriers prepared by a Federal agency or 
congressional commission during the 12 months 
preceding the date of the most recent report 
under paragraph (3); 
‘‘(E) a foreign government’s compliance 
with its obligations under any trade agreements 
to which both the foreign government and the 
United States are parties; 
‘‘(F) the implications of a foreign govern-
ment’s procurement plans and policies; and 
‘‘(G) the international competitive position 
and export potential of United States products 
and services. 
‘‘(3) REPORT ON TRADE ENFORCEMENT PRIOR-
ITIES AND ACTIONS TAKEN TO ADDRESS.— 
‘‘(A) IN GENERAL.—Not later than July 31 
of each calendar year that begins after the date 
of the enactment of the Trade Facilitation and 
Trade Enforcement Act of 2015, the Trade Rep-
resentative shall submit to the Committee on Fi-
nance of the Senate and the Committee on Ways 
and Means of the House of Representatives a re-
133 
port on acts, policies, or practices of foreign gov-
ernments identified as trade enforcement prior-
ities based on the consultations under paragraph 
(1) and the criteria set forth in paragraph (2). 
‘‘(B) REPORT IN SUBSEQUENT YEARS.—The 
Trade Representative shall include, when report-
ing under subparagraph (A) in any calendar 
year after the calendar year that begins after the 
date of the enactment of the Trade Facilitation 
and Trade Enforcement Act of 2015, a descrip-
tion of actions taken to address any acts, poli-
cies, or practices of foreign governments identi-
fied as trade enforcement priorities under this 
subsection in the calendar year preceding that 
report and, as relevant, any year before that cal-
endar year. 
‘‘(b) SEMI-ANNUAL ENFORCEMENT CONSULTATIONS.— 
‘‘(1) IN GENERAL.—At the same time as the re-
porting under subsection (a)(3), and not later than 
January 31 of each following year, the Trade Rep-
resentative shall consult with the Committee on Fi-
nance of the Senate and the Committee on Ways and 
Means of the House of Representatives with respect to 
the identification, prioritization, investigation, and 
resolution of acts, policies, or practices of foreign gov-
135 
‘‘(3) ACTIVE INVESTIGATIONS.—The semi-annual 
enforcement consultations required by paragraph (1) 
shall address acts, policies, or practices that the Trade 
Representative is actively investigating with respect 
to obligations under the WTO Agreements or any 
other trade agreement to which the United States is 
a party, including— 
‘‘(A) strategies for addressing concerns 
raised by such acts, policies, or practices; 
‘‘(B) any relevant timeline with respect to 
investigation of such acts, policies, or practices; 
‘‘(C) the merits of any potential dispute res-
olution proceeding under the WTO Agreements 
or any other trade agreement to which the 
United States is a party with respect to such 
acts, policies, or practices; 
‘‘(D) barriers to the advancement of the in-
vestigation of such acts, policies, or practices; 
and 
‘‘(E) any other matters relating to the in-
vestigation of such acts, policies, or practices. 
‘‘(4) ONGOING
ENFORCEMENT
ACTIONS.—The 
semi-annual enforcement consultations required by 
paragraph (1) shall address all ongoing enforcement 
actions taken by or against the United States with re-
136 
spect to obligations under the WTO Agreements or 
any other trade agreement to which the United States 
is a party, including— 
‘‘(A) any relevant timeline with respect to 
such actions; 
‘‘(B) the merits of such actions; 
‘‘(C) any prospective implementation ac-
tions; 
‘‘(D) potential implications for any law or 
regulation of the United States; 
‘‘(E) potential implications for United 
States stakeholders, domestic competitors, and 
exporters; and 
‘‘(F) other issues relating to such actions. 
‘‘(5) ENFORCEMENT RESOURCES.—The semi-an-
nual enforcement consultations required by paragraph 
(1) shall address the availability and deployment of 
enforcement resources, resource constraints on moni-
toring and enforcement activities, and strategies to 
address those constraints, including the use of avail-
able resources of other Federal agencies to enhance 
monitoring and enforcement capabilities. 
‘‘(c) INVESTIGATION AND RESOLUTION.—In the case of 
any acts, policies, or practices of a foreign government iden-
tified as a trade enforcement priority under subsection (a),
137 
the Trade Representative shall, not later than the date of 
the first semi-annual enforcement consultations held under 
subsection (b) after the identification of the priority, take 
appropriate action to address that priority, including— 
‘‘(1) engagement with the foreign government to 
resolve concerns raised by such acts, policies, or prac-
tices; 
‘‘(2) initiation of an investigation under section 
302(b)(1) with respect to such acts, policies, or prac-
tices; 
‘‘(3) initiation of negotiations for a bilateral 
agreement that provides for resolution of concerns 
raised by such acts, policies, or practices; or 
‘‘(4) initiation of dispute settlement proceedings 
under the WTO Agreements or any other trade agree-
ment to which the United States is a party with re-
spect to such acts, policies, or practices. 
‘‘(d) ENFORCEMENT NOTIFICATIONS AND CONSULTA-
TION.— 
‘‘(1) INITIATION OF ENFORCEMENT ACTION.—The 
Trade Representative shall notify and consult with 
the Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Represent-
atives in advance of initiation of any formal trade 
dispute by or against the United States taken in re-
138 
gard to an obligation under the WTO Agreements or 
any other trade agreement to which the United States 
is a party. With respect to a formal trade dispute 
against the United States, if advance notification and 
consultation are not possible, the Trade Representa-
tive shall notify and consult at the earliest practicable 
opportunity after initiation of the dispute. 
‘‘(2) CIRCULATION
OF
REPORTS.—The Trade 
Representative shall notify and consult with the Com-
mittee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives 
in advance of the announced or anticipated circula-
tion of any report of a dispute settlement panel or the 
Appellate Body of the World Trade Organization or 
of a dispute settlement panel under any other trade 
agreement to which the United States is a party with 
respect to a formal trade dispute by or against the 
United States. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) WTO.—The term ‘WTO’ means the World 
Trade Organization. 
‘‘(2) WTO AGREEMENT.—The term ‘WTO Agree-
ment’ has the meaning given that term in section 2(9) 
of the Uruguay Round Agreements Act (19 U.S.C. 
3501(9)).
139 
‘‘(3) WTO 
AGREEMENTS.—The term ‘WTO 
Agreements’ means the WTO Agreement and agree-
ments annexed to that Agreement.’’. 
(b) CLERICAL AMENDMENT.—The table of contents for 
the Trade Act of 1974 is amended by striking the item relat-
ing to section 310 and inserting the following:’’. 
‘‘Sec. 310. Trade enforcement priorities.’’. 
SEC. 602. EXERCISE OF WTO AUTHORIZATION TO SUSPEND 
CONCESSIONS 
OR 
OTHER 
OBLIGATIONS 
UNDER TRADE AGREEMENTS. 
(a) IN GENERAL.—Section 306 of the Trade Act of 
1974 (19 U.S.C. 2416) is amended— 
(1) by redesignating subsection (c) as subsection 
(d); and 
(2) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) EXERCISE OF WTO AUTHORIZATION TO SUSPEND 
CONCESSIONS OR OTHER OBLIGATIONS.—If— 
‘‘(1) action has terminated pursuant to section 
307(c), 
‘‘(2) the petitioner or any representative of the 
domestic industry that would benefit from reinstate-
ment of action has submitted to the Trade Represent-
ative a written request for reinstatement of action, 
and
140 
‘‘(3) the Trade Representatives has completed the 
requirements of subsection (d) and section 307(c)(3), 
the Trade Representative may at any time determine to 
take action under section 301(c) to exercise an authoriza-
tion to suspend concessions or other obligations under Arti-
cle 22 of the Understanding on Rules and Procedures Gov-
erning the Settlement of Disputes (referred to in section 
101(d)(16) of the Uruguay Round Agreements Act (19 
U.S.C. 3511(d)(16))).’’. 
(b) CONFORMING AMENDMENTS.—Chapter 1 of title 
III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.) is 
amended— 
(1) in section 301(c)(1) (19 U.S.C. 2411(c)(1)), 
in the matter preceding subparagraph (A), by insert-
ing ‘‘or section 306(c)’’ after ‘‘subsection (a) or (b)’’; 
(2) in section 306(b) (19 U.S.C. 2416(b)), in the 
subsection heading, by striking ‘‘FURTHER ACTION’’ 
and inserting ‘‘ACTION
ON
THE BASIS
OF MONI-
TORING’’; 
(3) in section 306(d) (19 U.S.C. 2416(d)), as re-
designated by subsection (a)(1), by inserting ‘‘or (c)’’ 
after ‘‘subsection (b)’’; and 
(4) in section 307(c)(3) (19 U.S.C. 2417(c)(3)), 
by inserting ‘‘or if a request is submitted to the Trade
141 
Representative under section 306(c)(2) to reinstate ac-
tion,’’ after ‘‘under section 301,’’. 
SEC. 603. TRADE MONITORING. 
(a) IN GENERAL.—Chapter 1 of title II of the Trade 
Act of 1974 (19 U.S.C. 2251 et seq.) is amended by adding 
at the end the following: 
‘‘SEC. 205. TRADE MONITORING. 
‘‘(a) MONITORING TOOL FOR IMPORTS.— 
‘‘(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of the Trade Facilita-
tion and Trade Enforcement Act of 2015, the United 
States International Trade Commission shall make 
available on a website of the Commission an import 
monitoring tool to allow the public access to data on 
the volume and value of goods imported to the United 
States for the purpose of assessing whether such data 
has changed with respect to such goods over a period 
of time. 
‘‘(2) DATA
DESCRIBED.—For purposes of the 
monitoring tool under paragraph (1), the Commission 
shall use data compiled by the Department of Com-
merce and such other government data as the Com-
mission considers appropriate. 
‘‘(3) PERIODS OF TIME.—The Commission shall 
ensure that data accessed through the monitoring tool
142 
under paragraph (1) includes data for the most recent 
quarter for which such data are available and pre-
vious quarters as the Commission considers prac-
ticable. 
‘‘(b) MONITORING REPORTS.— 
‘‘(1) IN
GENERAL.—Not later than 270 days 
after the date of the enactment of this section, and not 
less frequently than quarterly thereafter, the Secretary 
of Commerce shall publish on a website of the Depart-
ment of Commerce, and notify the Committee on Fi-
nance of the Senate and the Committee on Ways and 
Means of the House of Representatives of the avail-
ability of, a monitoring report on changes in the vol-
ume and value of trade with respect to imports and 
exports of goods categorized based on the 6-digit sub-
heading number of the goods under the Harmonized 
Tariff Schedule of the United States during the most 
recent quarter for which such data are available and 
previous quarters as the Secretary considers prac-
ticable. 
‘‘(2) REQUESTS FOR COMMENT.—Not later than 
one year after the date of the enactment of this sec-
tion, the Secretary of Commerce shall solicit through 
the Federal Register public comment on the moni-
toring reports described in paragraph (1).
143 
‘‘(c) SUNSET.—The requirements under this section 
terminate on the date that is seven years after the date of 
the enactment of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of contents for 
the Trade Act of 1974 (19 U.S.C. 2101 et seq.) is amended 
by inserting after the item relating to section 204 the fol-
lowing: 
‘‘Sec. 205. Trade monitoring.’’. 
TITLE VII—CURRENCY 
MANIPULATION 
SEC. 701. ENHANCEMENT OF ENGAGEMENT ON CURRENCY 
EXCHANGE RATE AND ECONOMIC POLICIES 
WITH CERTAIN MAJOR TRADING PARTNERS 
OF THE UNITED STATES. 
(a) MAJOR TRADING PARTNER REPORT.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, and not less fre-
quently than once every 180 days thereafter, the Sec-
retary shall submit to the appropriate committees of 
Congress a report on the macroeconomic and currency 
exchange rate policies of each country that is a major 
trading partner of the United States. 
(2) ELEMENTS.— 
(A) IN GENERAL.—Each report submitted 
under paragraph (1) shall contain—
144 
(i) for each country that is a major 
trading partner of the United States— 
(I) that country’s bilateral trade 
balance with the United States; 
(II) that country’s current ac-
count balance as a percentage of its 
gross domestic product; 
(III) the change in that country’s 
current account balance as a percent-
age of its gross domestic product dur-
ing the 3-year period preceding the 
submission of the report; 
(IV) that country’s foreign ex-
change reserves as a percentage of its 
short-term debt; and 
(V) that country’s foreign ex-
change reserves as a percentage of its 
gross domestic product; and 
(ii) an enhanced analysis of macro-
economic and exchange rate policies for 
each country that is a major trading part-
ner of the United States that has— 
(I) a significant bilateral trade 
surplus with the United States;
145 
(II) a material current account 
surplus; and 
(III) engaged in persistent one- 
sided intervention in the foreign ex-
change market. 
(B) ENHANCED ANALYSIS.—Each enhanced 
analysis under subparagraph (A)(ii) shall in-
clude, for each country with respect to which an 
analysis is made under that subparagraph— 
(i) a description of developments in the 
currency markets of that country, including, 
to the greatest extent feasible, developments 
with respect to currency interventions; 
(ii) a description of trends in the real 
effective exchange rate of the currency of 
that country and in the degree of under-
valuation of that currency; 
(iii) an analysis of changes in the cap-
ital controls and trade restrictions of that 
country; 
(iv) patterns in the reserve accumula-
tion of that country; and 
(v) an analysis of the macroeconomic 
policy mix of that country and its pattern 
of savings-investment imbalances.
146 
(3) GUIDANCE.—The Secretary shall publicly 
issue guidance not later than 90 days after the date 
of enactment of the Act that describes the factors used 
to assess under paragraph (2)(A)(ii) whether a coun-
try has a significant bilateral trade surplus with the 
United States, has a material current account sur-
plus, and has engaged in persistent one-sided inter-
vention in the foreign exchange market. 
(b) ENGAGEMENT ON EXCHANGE RATE AND ECONOMIC 
POLICIES.— 
(1) IN
GENERAL.—The President, through the 
Secretary, shall commence enhanced bilateral engage-
ment with each country for which an enhanced anal-
ysis of macroeconomic and currency exchange rate 
policies is included in the report submitted under sub-
section (a), in order to, as appropriate— 
(A) urge implementation of policies to ad-
dress the causes of the undervaluation of its cur-
rency, its bilateral trade surplus with the United 
States, and its material current account surplus, 
including undervaluation and surpluses relating 
to exchange rate management; 
(B) express the concern of the United States 
with respect to the adverse trade and economic
147 
effects of that undervaluation and those sur-
pluses; and/or 
(C) advise that country of the ability of the 
President to take action under subsection (c). 
(2) WAIVER.— 
(A) IN
GENERAL.—The Secretary may 
waive the requirement under subsection (b)(1) to 
commence enhanced bilateral engagement with a 
country if the Secretary determines that com-
mencing enhanced bilateral engagement with the 
country— 
(i) would have an adverse impact on 
the United States economy greater than the 
benefits of such action; or 
(ii) would cause serious harm to the 
national security of the United States. 
(B) CERTIFICATION.—The Secretary shall 
promptly certify to Congress a determination 
under subparagraph (A). 
(c) REMEDIAL ACTION.— 
(1) IN GENERAL.—If, on or after the date that 
is one year after the commencement of enhanced bilat-
eral engagement by the President, through the Sec-
retary, with respect to a country under subsection 
(b)(1), the Secretary determines that the country has
148 
failed to adopt appropriate policies to correct the 
undervaluation and surpluses described in subsection 
(b)(1)(A) with respect to that country, the President 
shall take one or more of the following actions: 
(A) Prohibit the Overseas Private Invest-
ment Corporation from approving any new fi-
nancing (including any insurance, reinsurance, 
or guarantee) with respect to a project located in 
that country on and after such date. 
(B) Except as provided in paragraph (2), 
and pursuant to paragraph (3), prohibit the 
Federal Government from procuring, or entering 
into any contract for the procurement of, goods 
or services from that country on and after such 
date. 
(C) Instruct the United States Executive 
Director of the International Monetary Fund to 
call for additional rigorous surveillance of the 
macroeconomic and exchange rate policies of that 
country and, as appropriate, formal consulta-
tions on findings of currency manipulation. 
(D) Instruct the United States Trade Rep-
resentative to take into account, in consultation 
with the Secretary, in assessing whether to enter 
into a bilateral or regional trade agreement with
149 
that country or to initiate or participate in ne-
gotiations with respect to a bilateral or regional 
trade agreement with that country, the extent to 
which that country has failed to adopt appro-
priate policies to correct the undervaluation and 
surpluses described in subsection (b)(1)(A). 
(2) WAIVER.— 
(A) IN
GENERAL.—The President may 
waive the requirement under paragraph (1) to 
take remedial action if the President determines 
that taking remedial action under paragraph (1) 
would— 
(i) have an adverse impact on the 
United States economy greater than the 
benefits of taking remedial action; or 
(ii) would cause serious harm to the 
national security of the United States. 
(B) CERTIFICATION.—The President shall 
promptly certify to Congress a determination 
under subparagraph (A). 
(3) EXCEPTION.—The President may not apply 
a prohibition under paragraph (1)(B) in a manner 
that is inconsistent with United States obligations 
under international agreements. 
(4) CONSULTATIONS.—
150 
(A) OFFICE OF MANAGEMENT AND BUDG-
ET.—Before applying a prohibition under para-
graph (1)(B), the President shall consult with 
the Director of the Office of Management and 
Budget to determine whether such prohibition 
would subject the taxpayers of the United States 
to unreasonable cost. 
(B) CONGRESS.—The President shall con-
sult with the appropriate committees of Congress 
with respect to any action the President takes 
under paragraph (1)(B), including whether the 
President has consulted as required under sub-
paragraph (A). 
(d) DEFINITIONS.—In this section: 
(1) APPROPRIATE COMMITTEES OF CONGRESS.— 
The term ‘‘appropriate committees of Congress’’ 
means— 
(A) the Committee on Banking, Housing, 
and Urban Affairs and the Committee on Fi-
nance of the Senate; and 
(B) the Committee on Financial Services 
and the Committee on Ways and Means of the 
House of Representatives. 
(2) COUNTRY.—The term ‘‘country’’ means a for-
eign country, dependent territory, or possession of a
151 
foreign country, and may include an association of 2 
or more foreign countries, dependent territories, or 
possessions of countries into a customs union outside 
the United States. 
(3) REAL
EFFECTIVE
EXCHANGE
RATE.—The 
term ‘‘real effective exchange rate’’ means a weighted 
average of bilateral exchange rates, expressed in price- 
adjusted terms. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
SEC. 702. ADVISORY COMMITTEE ON INTERNATIONAL EX-
CHANGE RATE POLICY. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—There is established an Advi-
sory Committee on International Exchange Rate Pol-
icy (in this section referred to as the ‘‘Committee’’). 
(2) DUTIES.—The Committee shall be responsible 
for advising the Secretary of the Treasury with re-
spect to the impact of international exchange rates 
and financial policies on the economy of the United 
States. 
(b) MEMBERSHIP.— 
(1) IN GENERAL.—The Committee shall be com-
posed of 9 members as follows, none of whom shall be 
employees of the Federal Government:
152 
(A) Three members shall be appointed by 
the President pro tempore of the Senate, upon 
the recommendation of the chairmen and rank-
ing members of the Committee on Banking, 
Housing, and Urban Affairs and the Committee 
on Finance of the Senate. 
(B) Three members shall be appointed by 
the Speaker of the House of Representatives upon 
the recommendation of the chairmen and rank-
ing members of the Committee on Financial 
Services and the Committee on Ways and Means 
of the House of Representatives. 
(C) Three members shall be appointed by 
the President. 
(2) QUALIFICATIONS.—Members shall be selected 
under paragraph (1) on the basis of their objectivity 
and demonstrated expertise in finance, economics, or 
currency exchange. 
(3) TERMS.— 
(A) IN
GENERAL.—Members shall be ap-
pointed for a term of 2 years or until the Com-
mittee terminates. 
(B) REAPPOINTMENT.—A member may be 
reappointed to the Committee for additional 
terms.
153 
(4) VACANCIES.—Any vacancy in the Committee 
shall not affect its powers, but shall be filled in the 
same manner as the original appointment. 
(c) DURATION OF COMMITTEE.— 
(1) IN GENERAL.—The Committee shall termi-
nate on the date that is 2 years after the date of the 
enactment of this Act unless renewed by the President 
for a subsequent 2-year period. 
(2) CONTINUED RENEWAL.—The President may 
continue to renew the Committee for successive 2-year 
periods by taking appropriate action to renew the 
Committee prior to the date on which the Committee 
would otherwise terminate. 
(d) MEETINGS.—The Committee shall hold not less 
than 2 meetings each calendar year. 
(e) CHAIRPERSON.— 
(1) IN
GENERAL.—The Committee shall elect 
from among its members a chairperson for a term of 
2 years or until the Committee terminates. 
(2) 
REELECTION; 
SUBSEQUENT
TERMS.—A 
chairperson of the Committee may be reelected chair-
person but is ineligible to serve consecutive terms as 
chairperson. 
(f) STAFF.—The Secretary of the Treasury shall make 
available to the Committee such staff, information, per-
154 
sonnel, administrative services, and assistance as the Com-
mittee may reasonably require to carry out the activities 
of the Committee. 
(g) APPLICATION OF THE FEDERAL ADVISORY COM-
MITTEE ACT.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the provisions of the Federal Advisory 
Committee Act (5 U.S.C. App.) shall apply to the 
Committee. 
(2) EXCEPTION.—Meetings of the Committee 
shall be exempt from the requirements of subsections 
(a) and (b) of section 10 and section 11 of the Federal 
Advisory Committee Act (relating to open meetings, 
public notice, public participation, and public avail-
ability of documents), whenever and to the extent it 
is determined by the President or the Secretary of the 
Treasury that such meetings will be concerned with 
matters the disclosure of which— 
(A) would seriously compromise the develop-
ment by the Government of the United States of 
monetary or financial policy; or 
(B) is likely to— 
(i) lead to significant financial specu-
lation in currencies, securities, or commod-
ities; or
155 
(ii) significantly endanger the stability 
of any financial institution. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary of the Treas-
ury for each fiscal year in which the Committee is in effect 
$1,000,000 to carry out this section. 
TITLE VIII—ESTABLISHMENT OF 
U.S. CUSTOMS AND BORDER 
PROTECTION 
SEC. 801. SHORT TITLE. 
This title may be cited as the ‘‘U.S. Customs and Bor-
der Protection Authorization Act’’. 
SEC. 802. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER 
PROTECTION. 
(a) IN GENERAL.—Section 411 of the Homeland Secu-
rity Act of 2002 (6 U.S.C. 211) is amended to read as fol-
lows: 
‘‘SEC. 411. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER 
PROTECTION; COMMISSIONER, DEPUTY COM-
MISSIONER, AND OPERATIONAL OFFICES. 
‘‘(a) IN GENERAL.—There is established in the Depart-
ment an agency to be known as U.S. Customs and Border 
Protection. 
‘‘(b) COMMISSIONER OF U.S. CUSTOMS AND BORDER 
PROTECTION.—There shall be at the head of U.S. Customs
156 
and Border Protection a Commissioner of U.S. Customs 
and Border Protection (in this section referred to as the 
‘Commissioner’), who shall be appointed by the President, 
by and with the advice and consent of the Senate. 
‘‘(c) DUTIES.—The Commissioner shall— 
‘‘(1) ensure the interdiction of persons and goods 
illegally entering or exiting the United States; 
‘‘(2) facilitate and expedite the flow of legitimate 
travelers and trade; 
‘‘(3) detect, respond to, and interdict terrorists, 
drug smugglers and traffickers, human smugglers and 
traffickers, and other persons who may undermine the 
security of the United States, in cases in which such 
persons are entering, or have recently entered, the 
United States; 
‘‘(4) safeguard the borders of the United States 
to protect against the entry of dangerous goods; 
‘‘(5) oversee the functions of the Office of Trade 
established under section 802(h) of the Trade Facilita-
tion and Trade Enforcement Act of 2015; 
‘‘(6) enforce and administer all customs laws of 
the United States, including the Tariff Act of 1930; 
‘‘(7) enforce and administer all immigration 
laws, as such term is defined in paragraph (17) of 
section 101(a) of the Immigration and Nationality
157 
Act (8 U.S.C. 1101(a)), as necessary for the inspec-
tion, processing, and admission of persons who seek to 
enter or depart the United States, and as necessary 
to ensure the detection, interdiction, removal, depar-
ture from the United States, short-term detention, and 
transfer of persons unlawfully entering, or who have 
recently unlawfully entered, the United States, in co-
ordination with U.S. Immigration and Customs En-
forcement and United States Citizenship and Immi-
gration Services; 
‘‘(8) develop and implement screening and tar-
geting capabilities, including the screening, reviewing, 
identifying, and prioritizing of passengers and cargo 
across all international modes of transportation, both 
inbound and outbound; 
‘‘(9) in coordination with the Secretary, deploy 
technology to collect the data necessary for the Sec-
retary to administer the biometric entry and exit 
data system pursuant to section 7208 of the Intel-
ligence Reform and Terrorism Prevention Act of 2004 
(8 U.S.C. 1365b); 
‘‘(10) enforce and administer the laws relating to 
agricultural import and entry inspection referred to 
in section 421;
158 
‘‘(11) in coordination with the Under Secretary 
for Management of the Department, ensure U.S. Cus-
toms and Border Protection complies with Federal 
law, the Federal Acquisition Regulation, and the De-
partment’s acquisition management directives for 
major acquisition programs of U.S. Customs and 
Border Protection; 
‘‘(12) enforce and administer— 
‘‘(A) the Container Security Initiative pro-
gram under section 205 of the Security and Ac-
countability for Every Port Act of 2006 (6 
U.S.C. 945; Public Law 109–347); and 
‘‘(B) 
the 
Customs-Trade 
Partnership 
Against Terrorism program under sections 211 
through 223 of such Act (6 U.S.C. 961-973); 
‘‘(13) conduct polygraph examinations in ac-
cordance with section 3(1) of the Anti-Border Corrup-
tion Act of 2010 (Public Law 111–376); 
‘‘(14) establish the standard operating procedures 
described in subsection (k); 
‘‘(15) carry out the training required under sub-
section (l); and 
‘‘(16) carry out other duties and powers pre-
scribed by law or delegated by the Secretary.
159 
‘‘(d) DEPUTY COMMISSIONER.—There shall be in U.S. 
Customs and Border Protection a Deputy Commissioner 
who shall assist the Commissioner in the management of 
U.S. Customs and Border Protection. 
‘‘(e) U.S. BORDER PATROL.— 
‘‘(1) IN GENERAL.—There is established in U.S. 
Customs and Border Protection the U.S. Border Pa-
trol. 
‘‘(2) CHIEF.—There shall be at the head of the 
U.S. Border Patrol a Chief, who shall report to the 
Commissioner. 
‘‘(3) DUTIES.—The U.S. Border Patrol shall— 
‘‘(A) serve as the law enforcement office of 
U.S. Customs and Border Protection with pri-
mary responsibility for interdicting persons at-
tempting to illegally enter or exit the United 
States or goods being illegally imported into or 
exported from the United States at a place other 
than a designated port of entry; 
‘‘(B) deter and prevent illegal entry of ter-
rorists, terrorist weapons, persons, and contra-
band; and 
‘‘(C) carry out other duties and powers pre-
scribed by the Commissioner. 
‘‘(f) OFFICE OF AIR AND MARINE OPERATIONS.—
161 
‘‘(E) carry out other duties and powers pre-
scribed by the Commissioner. 
‘‘(4) AIR AND MARINE OPERATIONS CENTER.— 
‘‘(A) IN GENERAL.—There is established in 
the Office of Air and Marine Operations an Air 
and Marine Operations Center. 
‘‘(B) EXECUTIVE DIRECTOR.—There shall be 
at the head of the Air and Marine Operations 
Center an Executive Director, who shall report to 
the Assistant Commissioner of the Office of Air 
and Marine Operations. 
‘‘(C) DUTIES.—The Air and Marine Oper-
ations Center shall— 
‘‘(i) manage the air and maritime do-
main awareness of the Department; 
‘‘(ii) monitor and coordinate the air-
space for Unmanned Aerial Systems oper-
ations of the Office of Air and Marine Op-
erations in U.S. Customs and Border Pro-
tection; 
‘‘(iii) detect, identify, and coordinate a 
response to threats to national security in 
the air domain;
162 
‘‘(iv) provide aviation and marine 
support to other Federal, State, tribal, and 
local agencies; and 
‘‘(v) carry out other duties and powers 
prescribed by the Assistant Commissioner. 
‘‘(g) OFFICE OF FIELD OPERATIONS.— 
‘‘(1) IN GENERAL.—There is established in U.S. 
Customs and Border Protection an Office of Field Op-
erations. 
‘‘(2) ASSISTANT COMMISSIONER.—There shall be 
at the head of the Office of Field Operations an As-
sistant Commissioner, who shall report to the Com-
missioner. 
‘‘(3) DUTIES.—The Office of Field Operations 
shall coordinate the enforcement activities of U.S. 
Customs and Border Protection at United States air, 
land, and sea ports of entry to— 
‘‘(A) deter and prevent terrorists and ter-
rorist weapons from entering the United States 
at such ports of entry; 
‘‘(B) conduct inspections at such ports of 
entry to safeguard the United States from ter-
rorism and illegal entry of persons;
163 
‘‘(C) prevent illicit drugs, agricultural 
pests, and contraband from entering the United 
States; 
‘‘(D) in coordination with the Commis-
sioner, facilitate and expedite the flow of legiti-
mate travelers and trade; 
‘‘(E) administer the National Targeting 
Center established under paragraph (4); and 
‘‘(F) carry out other duties and powers pre-
scribed by the Commissioner. 
‘‘(4) NATIONAL TARGETING CENTER.— 
‘‘(A) IN GENERAL.—There is established in 
the Office of Field Operations a National Tar-
geting Center. 
‘‘(B) EXECUTIVE DIRECTOR.—There shall be 
at the head of the National Targeting Center an 
Executive Director, who shall report to the As-
sistant Commissioner of the Office of Field Oper-
ations. 
‘‘(C) DUTIES.—The National Targeting 
Center shall— 
‘‘(i) serve as the primary forum for 
targeting operations within U.S. Customs 
and Border Protection to collect and ana-
164 
lyze traveler and cargo information in ad-
vance of arrival in the United States; 
‘‘(ii) identify, review, and target trav-
elers and cargo for examination; 
‘‘(iii) coordinate the examination of 
entry and exit of travelers and cargo; 
‘‘(iv) develop and conduct commercial 
risk assessment targeting with respect to 
cargo destined for the United States; 
‘‘(v) issue Trade Alerts pursuant to 
section 111 of the Trade Facilitation and 
Trade Enforcement Act of 2015; and 
‘‘(vi) carry out other duties and powers 
prescribed by the Assistant Commissioner. 
‘‘(5) ANNUAL REPORT ON STAFFING.—Not later 
than 30 days after the date of the enactment of the 
Trade Facilitation and Trade Enforcement Act of 
2015 and annually thereafter, the Assistant Commis-
sioner shall submit to the appropriate congressional 
committees a report on the staffing model for the Of-
fice of Field Operations, including information on 
how many supervisors, front-line U.S. Customs and 
Border Protection officers, and support personnel are 
assigned to each Field Office and port of entry. 
‘‘(h) OFFICE OF INTELLIGENCE.—
165 
‘‘(1) IN GENERAL.—There is established in U.S. 
Customs and Border Protection an Office of Intel-
ligence. 
‘‘(2) ASSISTANT COMMISSIONER.—There shall be 
at the head of the Office of Intelligence an Assistant 
Commissioner, who shall report to the Commissioner. 
‘‘(3) DUTIES.—The Office of Intelligence shall— 
‘‘(A) develop, provide, coordinate, and im-
plement intelligence capabilities into a cohesive 
intelligence enterprise to support the execution of 
the duties and responsibilities of U.S. Customs 
and Border Protection; 
‘‘(B) collect and analyze advance traveler 
and cargo information; 
‘‘(C) establish, in coordination with the 
Chief Intelligence Officer of the Department, as 
appropriate, intelligence-sharing relationships 
with Federal, State, local, and tribal agencies 
and intelligence agencies; 
‘‘(D) conduct risk-based covert testing of 
U.S. Customs and Border Protection operations, 
including for nuclear and radiological risks; and 
‘‘(E) carry out other duties and powers pre-
scribed by the Commissioner. 
‘‘(i) OFFICE OF INTERNATIONAL AFFAIRS.—
166 
‘‘(1) IN GENERAL.—There is established in U.S. 
Customs and Border Protection an Office of Inter-
national Affairs. 
‘‘(2) ASSISTANT COMMISSIONER.—There shall be 
at the head of the Office of International Affairs an 
Assistant Commissioner, who shall report to the Com-
missioner. 
‘‘(3) DUTIES.—The Office of International Af-
fairs, in collaboration with the Office of Policy of the 
Department, shall— 
‘‘(A) coordinate and support U.S. Customs 
and Border Protection’s foreign initiatives, poli-
cies, programs, and activities; 
‘‘(B) coordinate and support U.S. Customs 
and Border Protection’s personnel stationed 
abroad; 
‘‘(C) maintain partnerships and informa-
tion sharing agreements and arrangements with 
foreign governments, international organizations, 
and United States agencies in support of U.S. 
Customs and Border Protection duties and re-
sponsibilities; 
‘‘(D) provide necessary capacity building, 
training, and assistance to foreign border control
167 
agencies to strengthen global supply chain and 
travel security, as appropriate; 
‘‘(E) coordinate mission support services to 
sustain U.S. Customs and Border Protection’s 
global activities; 
‘‘(F) coordinate U.S. Customs and Border 
Protection’s engagement in international nego-
tiations; and 
‘‘(G) carry out other duties and powers pre-
scribed by the Commissioner. 
‘‘(j) OFFICE OF INTERNAL AFFAIRS.— 
‘‘(1) IN GENERAL.—There is established in U.S. 
Customs and Border Protection an Office of Internal 
Affairs. 
‘‘(2) ASSISTANT COMMISSIONER.—There shall be 
at the head of the Office of Internal Affairs an Assist-
ant Commissioner, who shall report to the Commis-
sioner. 
‘‘(3) DUTIES.—The Office of Internal Affairs 
shall— 
‘‘(A) investigate criminal and administra-
tive matters and misconduct by officers, agents, 
and other employees of U.S. Customs and Border 
Protection;
168 
‘‘(B) perform investigations of applicants 
for employment with U.S. Customs and Border 
Protection and periodic reinvestigations (in ac-
cordance with section 3001 of the Intelligence 
Reform and Terrorism Prevention Act of 2004 
(50 U.S.C. 3341; Public Law 108–458)) of offi-
cers, agents, and other employees of United 
States Custom and Border Protection, including 
investigations to determine suitability for em-
ployment and eligibility for access to classified 
information; 
‘‘(C) manage integrity of U.S. Customs and 
Border Protection’s counter-intelligence oper-
ations, including conduct of counter-intelligence 
investigations; 
‘‘(D) conduct research and analysis regard-
ing misconduct of officers, agents, and other em-
ployees of U.S. Customs and Border Protection; 
and 
‘‘(E) carry out other duties and powers pre-
scribed by the Commissioner. 
‘‘(k) STANDARD OPERATING PROCEDURES.— 
‘‘(1) IN GENERAL.—The Commissioner shall es-
tablish—
169 
‘‘(A) standard operating procedures for 
searching, reviewing, retaining, and sharing in-
formation contained in communication, elec-
tronic, or digital devices encountered by U.S. 
Customs and Border Protection personnel at 
United States ports of entry; 
‘‘(B) standard use of force procedures that 
officers and agents of U.S. Customs and Border 
Protection may employ in the execution of their 
duties, including the use of deadly force; 
‘‘(C) a uniform, standardized, and pub-
lically-available procedure for processing and in-
vestigating complaints against officers, agents, 
and employees of U.S. Customs and Border Pro-
tection for violations of professional conduct, in-
cluding the timely disposition of complaints and 
a written notification to the complainant of the 
status or outcome, as appropriate, of the related 
investigation, in accordance with section 552a of 
title 5, United States Code (commonly referred to 
as the ‘Privacy Act’ or the ‘Privacy Act of 
1974’); 
‘‘(D) an internal, uniform reporting mecha-
nism regarding incidents involving the use of 
deadly force by an officer or agent of U.S. Cus-
170 
toms and Border Protection, including an eval-
uation of the degree to which the procedures re-
quired under subparagraph (B) were followed; 
and 
‘‘(E) standard operating procedures, acting 
through the Assistant Commissioner for Air and 
Marine Operations and in coordination with the 
Office for Civil Rights and Civil Liberties and 
the Office of Privacy of the Department, to pro-
vide command, control, communication, surveil-
lance, and reconnaissance assistance through the 
use of unmanned aerial systems, including the 
establishment of— 
‘‘(i) a process for other Federal, State, 
and local law enforcement agencies to sub-
mit mission requests; 
‘‘(ii) a formal procedure to determine 
whether to approve or deny such a mission 
request; 
‘‘(iii) a formal procedure to determine 
how such mission requests are prioritized 
and coordinated; and 
‘‘(iv) a process regarding the protection 
and privacy of data and images collected by 
U.S. 
Customs 
and 
Border 
Protection
171 
through the use of unmanned aerial sys-
tems. 
‘‘(2) REQUIREMENTS REGARDING CERTAIN NOTI-
FICATIONS.—The standard operating procedures es-
tablished pursuant to subparagraph (A) of paragraph 
(1) shall require— 
‘‘(A) in the case of a search of information 
conducted on an electronic device by U.S. Cus-
toms and Border Protection personnel, the Com-
missioner to notify the individual subject to such 
search of the purpose and authority for such 
search, and how such individual may obtain in-
formation on reporting concerns about such 
search; and 
‘‘(B) in the case of information collected by 
U.S. Customs and Border Protection through a 
search of an electronic device, if such informa-
tion is transmitted to another Federal agency for 
subject 
matter 
assistance, 
translation, 
or 
decryption, the Commissioner to notify the indi-
vidual subject to such search of such trans-
mission. 
‘‘(3) EXCEPTIONS.— 
‘‘(A) IN GENERAL.—The Commissioner may 
withhold the notifications required under para-
172 
graphs (1)(C) and (2) if the Commissioner deter-
mines that such notifications would impair na-
tional security, law enforcement, or other oper-
ational interests. 
‘‘(B) TERRORIST WATCH LISTS.— 
‘‘(i) SEARCHES.—If the individual 
subject to search of an electronic device pur-
suant to subparagraph (A) of paragraph (1) 
is included on a Government-operated or 
Government-maintained terrorist watch list, 
the notifications required under paragraph 
(2) shall not apply. 
‘‘(ii) COMPLAINTS.—If the complain-
ant using the process established under sub-
paragraph (C) of paragraph (1) is included 
on a Government-operated or Government- 
maintained terrorist watch list, the notifi-
cation required under such subparagraph 
shall not apply. 
‘‘(4) UPDATE AND REVIEW.—The Commissioner 
shall review and update every three years the stand-
ard operating procedures required under this sub-
section. 
‘‘(5) AUDITS.—The Inspector General of the De-
partment of Homeland Security shall develop and an-
173 
nually administer an auditing mechanism to review 
whether searches of electronic devices at or between 
United States ports of entry are being conducted in 
conformity with the standard operating procedures 
required under subparagraph (A) of paragraph (1). 
Such audits shall be submitted to the appropriate 
congressional committees and shall include the fol-
lowing: 
‘‘(A) A description of the activities of offi-
cers and agents of U.S. Customs and Border 
Protection with respect to such searches. 
‘‘(B) The number of such searches. 
‘‘(C) The number of instances in which in-
formation contained in such devices that were 
subjected to such searches was retained, copied, 
shared, or entered in an electronic database. 
‘‘(D) The number of such devices detained 
as the result of such searches. 
‘‘(E) The number of instances in which in-
formation collected from such device was sub-
jected to such searches was transmitted to an-
other Federal agency, including whether such 
transmission resulted in a prosecution or convic-
tion.
174 
‘‘(6) REQUIREMENTS REGARDING OTHER NOTIFI-
CATIONS.—The standard operating procedures estab-
lished pursuant to subparagraph (B) of paragraph 
(1) shall require— 
‘‘(A) in the case of an incident of the use 
of deadly force by U.S. Customs and Border Pro-
tection personnel, the Commissioner to notify the 
appropriate congressional committees; and 
‘‘(B) the Commissioner to provide to such 
committees a copy of the evaluation pursuant to 
subparagraph (D) of such paragraph not later 
than 30 days after completion of such evalua-
tion. 
‘‘(7) REPORT ON UNMANNED AERIAL SYSTEMS.— 
The Commissioner shall submit to the appropriate 
congressional committees an annual report that re-
views whether the use of unmanned aerial systems are 
being conducted in conformity with the standard op-
erating procedures required under subparagraph (E) 
of paragraph (1). Such reports— 
‘‘(A) shall be submitted with the President’s 
annual budget; 
‘‘(B) may be submitted in classified form if 
the Commissioner determines that such is appro-
priate, and
175 
‘‘(C) shall include— 
‘‘(i) a detailed description of how, 
where, and for how long data and images 
collected through the use of unmanned aer-
ial systems by U.S. Customs and Border 
Protection is collected and stored; and 
‘‘(ii) a list of Federal, State, and local 
law enforcement agencies that submitted 
mission requests in the previous year and 
the disposition of such requests. 
‘‘(l) TRAINING.—The Commissioner shall require all 
officers and agents of U.S. Customs and Border Protection 
to participate in a specified amount of continuing edu-
cation (to be determined by the Commissioner) to maintain 
an understanding of Federal legal rulings, court decisions, 
and departmental policies, procedures, and guidelines. 
‘‘(m) SHORT TERM DETENTION STANDARDS.— 
‘‘(1) ACCESS TO FOOD AND WATER.—The Com-
missioner shall make every effort to ensure that ade-
quate access to food and water is provided to an indi-
vidual apprehended and detained at or between a 
United States port of entry as soon as practicable fol-
lowing the time of such apprehension or during subse-
quent short term detention.
176 
‘‘(2) ACCESS
TO
INFORMATION
ON
DETAINEE 
RIGHTS AT BORDER PATROL PROCESSING CENTERS.— 
‘‘(A) IN GENERAL.—The Commissioner shall 
ensure that an individual apprehended by a 
U.S. Border Patrol agent or an Office of Field 
Operations officer is provided with information 
concerning such individual’s rights, including 
the right to contact a representative of such indi-
vidual’s government for purposes of United 
States treaty obligations. 
‘‘(B) FORM.—The information referred to 
in subparagraph (A) may be provided either ver-
bally or in writing, and shall be posted in the 
detention holding cell in which such individual 
is being held. The information shall be provided 
in a language understandable to such individual. 
‘‘(3) SHORT
TERM
DETENTION
DEFINED.—In 
this subsection, the term ‘short term detention’ means 
detention in a U.S. Customs and Border Protection 
processing center for 72 hours or less, before repatri-
ation to a country of nationality or last habitual resi-
dence. 
‘‘(4) 
DAYTIME
REPATRIATION.—When 
prac-
ticable, repatriations shall be limited to daylight
177 
hours and avoid locations that are determined to have 
high indices of crime and violence. 
‘‘(5) REPORT ON PROCUREMENT PROCESS AND 
STANDARDS.—Not later than 180 days after the date 
of the enactment of this section, the Comptroller Gen-
eral of the United States shall submit to the appro-
priate congressional committees a report on the pro-
curement process and standards of entities with which 
U.S. Customs and Border Protection has contracts for 
the transportation and detention of individuals ap-
prehended by agents or officers of U.S. Customs and 
Border Protection. Such report should also consider 
the operational efficiency of contracting the transpor-
tation and detention of such individuals. 
‘‘(6) REPORT ON INSPECTIONS OF SHORT-TERM 
CUSTODY FACILITIES.—The Commissioner shall— 
‘‘(A) annually inspect all facilities utilized 
for short term detention; and 
‘‘(B) make publically available information 
collected pursuant to such inspections, including 
information regarding the requirements under 
paragraphs (1) and (2) and, where appropriate, 
issue recommendations to improve the conditions 
of such facilities. 
‘‘(n) WAIT TIMES TRANSPARENCY.—
178 
‘‘(1) IN GENERAL.—The Commissioner shall— 
‘‘(A) publish live wait times at the 20 
United States airports that support the highest 
volume of international travel (as determined by 
available Federal flight data); 
‘‘(B) make information about such wait 
times available to the public in real time through 
the U.S. Customs and Border Protection Web 
site; 
‘‘(C) submit to the appropriate congres-
sional committees quarterly reports that include 
compilations of all such wait times and a rank-
ing of such United States airports by wait times; 
and 
‘‘(D) provide adequate staffing at the U.S. 
Customs and Border Protection information cen-
ter to ensure timely access for travelers attempt-
ing to submit comments or speak with a rep-
resentative about their entry experiences. 
‘‘(2) CALCULATION.—The wait times referred to 
in paragraph (1)(A) shall be determined by calcu-
lating the time elapsed between an individual’s entry 
into the U.S. Customs and Border Protection inspec-
tion area and such individual’s clearance by a U.S. 
Customs and Border Protection officer.
179 
‘‘(o) OTHER AUTHORITIES.— 
‘‘(1) IN GENERAL.—The Secretary may establish 
such other offices or Assistant Commissioners (or 
other similar officers or officials) as the Secretary de-
termines necessary to carry out the missions, duties, 
functions, and authorities of U.S. Customs and Bor-
der Protection. 
‘‘(2) NOTIFICATION.—If the Secretary exercises 
the authority provided pursuant to paragraph (1), the 
Secretary shall notify the appropriate congressional 
committees not later than 30 days before exercising 
such authority. 
‘‘(p) OTHER FEDERAL AGENCIES.—Nothing in this 
section may be construed as affecting in any manner the 
authority, existing on the date of the enactment of the Trade 
Facilitation and Trade Enforcement Act of 2015, of any 
other Federal agency, including the Transportation Secu-
rity Administration, with respect to the duties of U.S. Cus-
toms and Border Protection described in subsection (c).’’. 
(b) SPECIAL RULES.— 
(1) TREATMENT.—Section 411 of the Homeland 
Security Act of 2002, as amended by subsection (a) 
of this section, shall be treated as if included in such 
Act as of the date of the enactment of such Act, and, 
in addition to the functions, missions, duties, and au-
181 
tion, determination, policy, or decision shall con-
tinue to have full force and effect on and after 
such date. 
(c) CONTINUATION IN OFFICE.— 
(1) COMMISSIONER.—The individual serving as 
the Commissioner of Customs on the day before the 
date of the enactment of this Act may serve as the 
Commissioner of U.S. Customs and Border Protection 
on and after such date of enactment until a Commis-
sioner of U.S. Customs and Border Protection is ap-
pointed under section 411 of the Homeland Security 
Act of 2002, as amended by subsection (a) of this sec-
tion. 
(2) OTHER POSITIONS.—The individuals serving 
as Assistant Commissioners and other officers and of-
ficials under section 411 of the Homeland Security 
Act of 2002 on the day before the date of the enact-
ment of this Act may serve as the appropriate Assist-
ant Commissioners and other officers and officials 
under such section 411 as amended by subsection (a) 
of this section unless the Commissioner of U.S. Cus-
toms and Border Protection determines that another 
individual should hold such position or positions. 
(d) REFERENCE.—
182 
(1) TITLE 5.—Section 5314 of title 5, United 
States Code, is amended by striking ‘‘Commissioner of 
Customs, Department of Homeland Security’’ and in-
serting ‘‘Commissioner of U.S. Customs and Border 
Protection, Department of Homeland Security’’. 
(2) OTHER REFERENCES.—On and after the date 
of the enactment of this Act, any reference in law or 
regulations to the ‘‘Commissioner of Customs’’ or the 
‘‘Commissioner of the Customs Service’’ shall be 
deemed to be a reference to the Commissioner of U.S. 
Customs and Border Protection. 
(e) CLERICAL AMENDMENT.—The table of contents in 
section 1(b) of the Homeland Security Act of 2002 (6 U.S.C. 
101 et seq.) is amended by striking the item relating to sec-
tion 411 and inserting the following new item: 
‘‘Sec. 411. Establishment of U.S. Customs and Border Protection; Commissioner, 
Deputy Commissioner, and operational offices.’’. 
(f) REPEALS.—Sections 416 and 418 of the Homeland 
Security Act of 2002 (6 U.S.C. 216 and 218), and the items 
relating to such sections in the table of contents in section 
1(b) of such Act, are repealed. 
(g) CLERICAL AND CONFORMING AMENDMENTS.— 
(1) IN GENERAL.—The Homeland Security Act 
of 2002 (6 U.S.C. 101 et seq.) is amended— 
(A) in title I—
183 
(i) in section 102(f)(10) (6 U.S.C. 
112(f)(10)), by striking ‘‘the Directorate of 
Border and Transportation Security’’ and 
inserting ‘‘the Commissioner of U.S. Cus-
toms and Border Protection’’; and 
(ii) in section 103(a)(1) (6 U.S.C. 
113(a)(1))— 
(I) in subparagraph (C), by strik-
ing ‘‘An Under Secretary for Border 
and Transportation Security.’’ and in-
serting ‘‘A Commissioner of U.S. Cus-
toms and Border Protection.’’; and 
(II) in subparagraph (G), by 
striking ‘‘A Director of the Office of 
Counternarcotics Enforcement.’’ and 
inserting ‘‘A Director of U.S. Immi-
gration and Customs Enforcement.’’; 
and 
(B) in title IV— 
(i) by striking the title heading and 
inserting 
‘‘BORDER, 
MARITIME, 
AND TRANSPORTATION SECU-
RITY’’; 
(ii) in subtitle A—
184 
(I) by striking the subtitle head-
ing and inserting ‘‘Border, Mari-
time, and Transportation Se-
curity 
Responsibilities 
and 
Functions’’; and 
(II) in section 402 (6 U.S.C. 
202)— 
(aa) in the section heading, 
by 
striking 
‘‘RESPONSIBIL-
ITIES’’ and inserting ‘‘BORDER, 
MARITIME, 
AND
TRANSPOR-
TATION
RESPONSIBILITIES’’; 
and 
(bb) by striking ‘‘, acting 
through the Under Secretary for 
Border and Transportation Secu-
rity,’’; 
(iii) in subtitle B— 
(I) by striking the subtitle head-
ing and inserting ‘‘U.S. Customs 
and Border Protection’’; 
(II) in section 412(b) (6 U.S.C. 
212), by striking ‘‘the United States 
Customs Service’’ each place it appears
185 
and inserting ‘‘U.S. Customs and Bor-
der Protection’’; 
(III) in section 413 (6 U.S.C. 
213), by striking ‘‘available to the 
United States Customs Service or’’; 
(IV) in section 414 (6 U.S.C. 
214), by striking ‘‘the United States 
Customs Service’’ and inserting ‘‘U.S. 
Customs and Border Protection’’; and 
(V) in section 415 (6 U.S.C. 
215)— 
(aa) in paragraph (7), by in-
serting before the colon the fol-
lowing: ‘‘, and of U.S. Customs 
and Border Protection on the day 
before the effective date of the U.S. 
Customs and Border Protection 
Authorization Act’’; and 
(bb) in paragraph (8), by in-
serting before the colon the fol-
lowing: ‘‘, and of U.S. Customs 
and Border Protection on the day 
before the effective date of the U.S. 
Customs and Border Protection 
Authorization Act’’;
186 
(iv) in subtitle C— 
(I) by striking section 424 (6 
U.S.C. 234) and inserting the fol-
lowing new section: 
‘‘SEC. 424. PRESERVATION OF TRANSPORTATION SECURITY 
ADMINISTRATION AS A DISTINCT ENTITY. 
‘‘Notwithstanding any other provision of this Act, the 
Transportation Security Administration shall be main-
tained as a distinct entity within the Department.’’; and 
(II) in section 430 (6 U.S.C. 
238)— 
(aa) by amending subsection 
(a) to read as follows: 
‘‘(a) ESTABLISHMENT.—There is established in the De-
partment an Office for Domestic Preparedness.’’; 
(bb) in subsection (b), by 
striking the second sentence; and 
(cc) in subsection (c)(7), by 
striking ‘‘Directorate’’ and insert-
ing ‘‘Department’’; and 
(v) in subtitle D— 
(I) in section 441 (6 U.S.C. 
251)—
187 
(aa) by striking the section 
heading and inserting ‘‘TRANS-
FER OF FUNCTIONS’’; and 
(bb) by striking ‘‘Under Sec-
retary for Border and Transpor-
tation Security’’ and inserting 
‘‘Secretary’’; 
(II) in section 443 (6 U.S.C. 
253)— 
(aa) in the matter preceding 
paragraph 
(1), 
by 
striking 
‘‘Under Secretary for Border and 
Transportation Security’’ and in-
serting ‘‘Secretary’’; and 
(bb) by striking ‘‘the Bureau 
of Border Security’’ and inserting 
‘‘U.S. Immigration and Customs 
Enforcement’’ each place it ap-
pears; and 
(III) by amending section 444 (6 
U.S.C. 254) to read as follows: 
‘‘SEC. 444. EMPLOYEE DISCIPLINE. 
‘‘Notwithstanding any other provision of law, the Sec-
retary may impose disciplinary action on any employee of 
U.S. Immigration and Customs Enforcement and U.S. Cus-
188 
toms and Border Protection who willfully deceives Congress 
or agency leadership on any matter.’’. 
(2) CONFORMING AMENDMENTS.—Section 401 of 
the Homeland Security Act of 2002 (6 U.S.C. 201) is 
repealed. 
(3) CLERICAL AMENDMENTS.—The table of con-
tents in section 1(b) of the Homeland Security Act of 
2002 is amended— 
(A) by striking the item relating to title IV 
and inserting the following: 
‘‘TITLE IV—BORDER, MARITIME, AND TRANSPORTATION SECURITY’’; 
(B) by striking the item relating to subtitle 
A of title IV and inserting the following: 
‘‘Subtitle A—Border, Maritime, and Transportation Security Responsibilities 
and Functions’’; 
(C) by striking the item relating to section 
401; 
(D) by striking the item relating to subtitle 
B of title IV and inserting the following: 
‘‘Subtitle B—U.S. Customs and Border Protection’’; 
(E) by striking the item relating to section 
441 and inserting the following: 
‘‘Sec. 441. Transfer of functions.’’; 
and 
(F) by striking the item relating to section 
442 and inserting the following: 
‘‘Sec. 442. U.S. Immigration and Customs Enforcement.’’.
189 
(h) OFFICE OF TRADE.— 
(1) TRADE OFFICES AND FUNCTIONS.—The Act 
of March 3, 1927 (44 Stat. 1381, chapter 348; 19 
U.S.C. 2071 et seq.), is amended by adding at the end 
the following: 
‘‘SEC. 4. OFFICE OF TRADE. 
‘‘(a) IN GENERAL.—There is established in U.S. Cus-
toms and Border Protection an Office of Trade. 
‘‘(b) ASSISTANT COMMISSIONER.— 
‘‘(1) IN GENERAL.—There shall be at the head of 
the Office of Trade an Assistant Commissioner, who 
shall report to the Commissioner of U.S. Customs and 
Border Protection. 
‘‘(2) QUALIFICATIONS.—The Assistant Commis-
sioner shall have a minimum of 10 years of profes-
sional experience with the customs and trade laws of 
the United States. 
‘‘(3) SENIOR EXECUTIVE SERVICE POSITION.— 
The position of Assistant Commissioner for Trade 
shall be a Senior Executive Service position (as de-
fined in section 3132(a) of title 5, United States 
Code). 
‘‘(c) DUTIES.—The Office of Trade shall— 
‘‘(1) direct the development and implementation, 
pursuant to the customs and trade laws of the United
190 
States, of policies and regulations administered by 
U.S. Customs and Border Protection; 
‘‘(2) advise the Commissioner with respect to the 
impact on trade facilitation and trade enforcement of 
any policy or regulation otherwise proposed or ad-
ministered by U.S. Customs and Border Protection; 
‘‘(3) coordinate and cooperate with the Assistant 
Commissioner for the Office of Field Operations with 
respect to the trade facilitation and trade enforcement 
activities of U.S. Customs and Border Protection car-
ried out at the land borders and ports of entry of the 
United States; 
‘‘(4) direct the development and implementation 
of matters relating to the priority trade issues identi-
fied by the Commissioner of U.S. Customs and Border 
Protection in the joint strategic plan on trade facili-
tation and trade enforcement required under section 
123A of the Customs and Trade Act of 1990; 
‘‘(5) otherwise advise the Commissioner of U.S. 
Customs and Border Protection with respect to the de-
velopment and implementation of the joint strategic 
plan; 
‘‘(6) direct the trade enforcement activities of 
U.S. Customs and Border Protection;
191 
‘‘(7) oversee the trade modernization activities of 
U.S. Customs and Border Protection, including the 
development and implementation of the Automated 
Commercial Environment computer system author-
ized under section 13031(f)(5) of the Consolidated 
Omnibus Budget and Reconciliation Act of 1985 (19 
U.S.C. 58c(f)(5)) and support for the establishment of 
the International Trade Data System under the over-
sight of the Department of Treasury pursuant to sec-
tion 411(d) of the Tariff Act of 1930 (19 U.S.C. 
1411(d)); 
‘‘(8) direct the administration of customs rev-
enue functions as otherwise provided by law or dele-
gated by the Commissioner of U.S. Customs and Bor-
der Protection; and 
‘‘(9) prepare an annual report to be submitted to 
the Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Represent-
atives not later than March 1 of each calendar year 
that includes— 
‘‘(A) a summary of the changes to customs 
policies and regulations adopted by U.S. Cus-
toms and Border Protection during the preceding 
calendar year; and
192 
‘‘(B) a description of the public vetting and 
interagency consultation that occurred with re-
spect to each such change. 
‘‘(d) TRANSFER OF ASSETS, FUNCTIONS, AND PER-
SONNEL; ELIMINATION OF OFFICES.— 
‘‘(1) OFFICE OF INTERNATIONAL TRADE.— 
‘‘(A) TRANSFER.—Not later than 30 days 
after the date of the enactment of the Trade Fa-
cilitation and Trade Enforcement Act of 2015, 
the Commissioner shall transfer the assets, func-
tions, personnel, and liabilities of the Office of 
International Trade to the Office of Trade estab-
lished under subsection (b). 
‘‘(B) ELIMINATION.—Not later than 30 days 
after the date of enactment of the Trade Facilita-
tion and Trade Enforcement Act of 2015, the Of-
fice of International Trade shall be abolished. 
‘‘(C) LIMITATION ON FUNDS.—No funds ap-
propriated to U.S. Customs and Border Protec-
tion or the Department of Homeland Security 
may be used to transfer the assets, functions, per-
sonnel, and liabilities of the Office of Inter-
national Trade to an office other than the Office 
of Trade established under subsection (a).
193 
‘‘(D) OFFICE
OF
INTERNATIONAL
TRADE 
DEFINED.—In this paragraph, the term ‘Office of 
International Trade’ means the Office of Inter-
national Trade established by section 2 of the Act 
of March 3, 1927 (44. Stat. 1381, chapter 348; 
19 U.S.C. 2072), as added by section 402 of the 
Security and Accountability for Every Port Act 
of 2006 (Public Law 109–347; 120 Stat. 1924), 
and as in effect on the day before the date of the 
enactment of the Trade Facilitation and Trade 
Enforcement Act of 2015. 
‘‘(2) OTHER TRANSFERS.— 
‘‘(A) IN
GENERAL.—The Commissioner is 
authorized to transfer any other assets, functions, 
or personnel within U.S. Customs and Border 
Protection to the Office of Trade established 
under subsection (d). 
‘‘(B) CONGRESSIONAL
NOTIFICATION.—Not 
less than 90 days prior to the transfer of assets, 
functions, or personnel under subparagraph 
(A)(i), the Commissioner shall notify the Com-
mittee on Finance of the Senate, the Committee 
on Homeland Security and Government Affairs 
of the Senate, the Committee on Ways and 
Means of the House of Representatives, and the
194 
Committee on Homeland Security of the House 
of Representatives of the specific assets, func-
tions, or personnel to be transferred, and the rea-
son for the transfer. 
‘‘(e) DEFINITIONS.—In this section, the terms ‘customs 
and trade laws of the United States’, ‘trade enforcement’, 
and ‘trade facilitation’ have the meanings given such terms 
in section 2 of the Trade Facilitation and Trade Enforce-
ment Act of 2015.’’. 
(2) CONTINUATION IN OFFICE.—The individual 
serving as the Assistant Commissioner of the Office of 
International Trade on the day before the date of the 
enactment of this Act may serve as the Assistant 
Commissioner for Trade on or after such date of en-
actment, at the discretion of the Commissioner. 
(3) CONFORMING
AMENDMENTS.—Section 2 of 
the Act of March 3, 1927 (44. Stat. 1381, chapter 
348; 19 U.S.C. 2072), as added by section 402 of the 
Security and Accountability for Every Port Act of 
2006 (Public Law 109–347; 120 Stat. 1924), is 
amended— 
(A) by striking subsection (d); and 
(B) by redesignating subsections (e) and (f) 
as subsections (d) and (e), respectively. 
(i) REPORTS AND ASSESSMENTS.—
195 
(1) REPORT ON BUSINESS TRANSFORMATION INI-
TIATIVE.—Not later than 90 days after the date of the 
enactment of this Act, the Commissioner of U.S. Cus-
toms and Border Protection shall submit to the Com-
mittee on Homeland Security and the Committee on 
Ways and Means of the House of Representatives and 
the Committee on Homeland Security and Govern-
mental Affairs and the Committee on Finance of the 
Senate a report on U.S. Customs and Border Protec-
tion’s Business Transformation Initiative, including 
locations where the Initiative is deployed, the types of 
equipment utilized, a description of protocols and 
procedures, information on wait times at such loca-
tions since deployment, and information regarding 
the schedule for deployment at new locations. 
(2) PORT
OF
ENTRY
INFRASTRUCTURE
NEEDS 
ASSESSMENTS.—Not later 180 days after the date of 
the enactment of this Act, the Commissioner of U.S. 
Customs and Border Protection shall assess the phys-
ical infrastructure and technology needs at the 20 
busiest land ports of entry (as measured by U.S. Cus-
toms and Border Protection) with a particular atten-
tion to identify ways to— 
(A) improve travel and trade facilitation; 
(B) reduce wait times;
196 
(C) improve physical infrastructure and 
conditions for individuals accessing pedestrian 
ports of entry; 
(D) enter into long-term leases with non-
governmental and private sector entities; 
(E) enter into lease-purchase agreements 
with nongovernmental and private sector enti-
ties; and 
(F) achieve cost savings through leases de-
scribed in subparagraphs (D) and (E). 
(3) PERSONAL SEARCHES.—Not later than 90 
days after the date of the enactment of this Act, the 
Commissioner of U.S. Customs and Border Protection 
shall submit to the Committee on Homeland Security 
of the House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the 
Senate a report on supervisor-approved personal 
searches conducted in the previous year by U.S. Cus-
toms and Border Protection personnel. Such report 
shall include the number of personal searches con-
ducted in each sector and field office, the number of 
invasive personal searches conducted in each sector 
and field office, whether personal searches were con-
ducted by Office of Field Operations or U.S. Border
197 
Patrol personnel, and how many personal searches re-
sulted in the discovery of contraband. 
(j) TRUSTED TRAVELER PROGRAMS.—The Secretary 
of Homeland Security may not enter into or renew an 
agreement with the government of a foreign country for a 
trusted traveler program administered by U.S. Customs 
and Border Protection unless the Secretary certifies in writ-
ing that such government— 
(1) routinely submits to INTERPOL for inclu-
sion in INTERPOL’s Stolen and Lost Travel Docu-
ments database information about lost and stolen 
passports and travel documents of the citizens and 
nationals of such country; or 
(2) makes available to the United States Govern-
ment the information described in paragraph (1) 
through another means of reporting. 
(k) SENSE OF CONGRESS REGARDING THE FOREIGN 
LANGUAGE AWARD PROGRAM.— 
(1) FINDINGS.—Congress finds the following: 
(A) Congress established the Foreign Lan-
guage Award Program (FLAP) to incentivize 
employees at United States ports of entry to uti-
lize their foreign language skills on the job by 
providing a financial incentive for the use of the 
foreign language for at least ten percent of their
198 
duties after passage of competency tests. FLAP 
incentivizes the use of more than two dozen lan-
guages and has been instrumental in identifying 
and utilizing U.S. Customs and Border Protec-
tion officers and agents who are proficient in a 
foreign language. 
(B) In 1993, Congress provided for dedi-
cated funding for this program by stipulating 
that certain fees collected by U.S. Customs and 
Border Protection be used to fund FLAP. 
(C) Through FLAP, foreign travelers are 
aided by having an officer at a port of entry who 
speaks their language, and U.S. Customs and 
Border Protection benefits by being able to focus 
its border security efforts in a more effective 
manner. 
(2) SENSE
OF
CONGRESS.—It is the sense of 
Congress that FLAP incentivizes U.S. Customs and 
Border Protection officers to attain and maintain 
competency in a foreign language, thereby improving 
the efficiency of operations for the functioning of U.S. 
Customs and Border Protection’s security mission, 
making the United States a more welcoming place 
when foreign travelers find officers can communicate
199 
in their language, and helping to expedite traveler 
processing to reduce wait times. 
TITLE IX—MISCELLANEOUS 
PROVISIONS 
SEC. 901. DE MINIMIS VALUE. 
(a) DE MINIMIS VALUE.—Section 321(a)(2)(C) of the 
Tariff Act of 1930 (19 U.S.C. 1321(a)(2)(C)) is amended 
by striking ‘‘$200’’ and inserting ‘‘$800’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to articles entered, or 
withdrawn from warehouse for consumption, on or after the 
15th day after the date of the enactment of this Act. 
SEC. 902. CONSULTATION ON TRADE AND CUSTOMS REV-
ENUE FUNCTIONS. 
Section 401(c) of the Safety and Accountability for 
Every Port Act (6 U.S.C. 115(c)) is amended— 
(1) in paragraph (1), by striking ‘‘on Depart-
ment policies and actions that have’’ and inserting 
‘‘not later than 30 days after proposing, and not later 
than 30 days before finalizing, any Department poli-
cies, initiatives, or actions that will have’’; and 
(2) in paragraph (2)(A), by striking ‘‘not later 
than 30 days prior to the finalization of’’ and insert-
ing ‘‘not later than 60 days before proposing, and not 
later than 60 days before finalizing,’’.
200 
SEC. 903. PENALTIES FOR CUSTOMS BROKERS. 
(a) IN GENERAL.—Section 641(d)(1) of the Tariff Act 
of 1930 (19 U.S.C. 1641(d)(1)) is amended— 
(1) in subparagraph (E), by striking ‘‘; or’’ and 
inserting a semicolon; 
(2) in subparagraph (F), by striking the period 
and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(G) has been convicted of committing or 
conspiring to commit an act of terrorism de-
scribed in section 2332b of title 18, United 
States Code.’’. 
(b) TECHNICAL AMENDMENTS.—Section 641 of the 
Tariff Act of 1930 (19 U.S.C. 1641) is amended— 
(1) by striking ‘‘the Customs Service’’ each place 
it appears and inserting ‘‘U.S. Customs and Border 
Protection’’; 
(2) in subsection (d)(2)(B), by striking ‘‘The 
Customs Service’’ and inserting ‘‘U.S. Customs and 
Border Protection’’; and 
(3) in subsection (g)(2)(B), by striking ‘‘Sec-
retary’s notice’’ and inserting ‘‘notice under subpara-
graph (A)’’.
201 
SEC. 904. AMENDMENTS TO CHAPTER 98 OF THE HAR-
MONIZED TARIFF SCHEDULE OF THE UNITED 
STATES. 
(a) ARTICLES EXPORTED AND RETURNED, ADVANCED 
OR IMPROVED ABROAD.— 
(1) IN GENERAL.—U.S. Note 3 to subchapter II 
of chapter 98 of the Harmonized Tariff Schedule of 
the United States is amended by adding at the end 
the following: 
‘‘(f)(1) For purposes of subheadings 9802.00.40 and 
9802.00.50, fungible articles exported from the United 
States for the purposes described in such subheadings— 
‘‘(A) may be commingled; and 
‘‘(B) the origin, value, and classification of such 
articles may be accounted for using an inventory 
management method. 
‘‘(2) If a person chooses to use an inventory manage-
ment method under this paragraph with respect to fungible 
articles, the person shall use the same inventory manage-
ment method for any other articles with respect to which 
the person claims fungibility under this paragraph. 
‘‘(3) For the purposes of this paragraph— 
‘‘(A) the term ‘fungible articles’ means merchan-
dise or articles that, for commercial purposes, are 
identical or interchangeable in all situations; and
203 
(c) DUTY-FREE TREATMENT FOR CERTAIN UNITED 
STATES GOVERNMENT PROPERTY RETURNED
TO
THE 
UNITED STATES.— 
(1) IN GENERAL.—Subchapter I of chapter 98 of 
the Harmonized Tariff Schedule of the United States 
is amended by inserting in numerical sequence the 
following new heading: 
‘‘ 
9801.00.11 
United States Government 
property, returned to the 
United States without having 
been advanced in value or im-
proved in condition by any 
means while abroad, entered 
by the United States Govern-
ment or a contractor to the 
United States Government, 
and certified by the importer 
as United States Government 
property ....................................
Free 
’’. 
(2) EFFECTIVE DATE.—The amendment made by 
paragraph (1) applies to goods entered, or withdrawn 
from warehouse for consumption, on or after the date 
that is 60 days after the date of the enactment of this 
Act. 
SEC. 905. EXEMPTION FROM DUTY OF RESIDUE OF BULK 
CARGO CONTAINED IN INSTRUMENTS OF 
INTERNATIONAL TRAFFIC PREVIOUSLY EX-
PORTED FROM THE UNITED STATES. 
(a) IN GENERAL.—General Note 3(e) of the Har-
monized Tariff Schedule of the United States is amended— 
(1) in subparagraph (v), by striking ‘‘and’’ at 
the end;
204 
(2) in subparagraph (vi), by adding ‘‘and’’ at 
the end; 
(3) by inserting after subparagraph (vi) (as so 
amended) the following new subparagraph: 
‘‘(vii) residue of bulk cargo contained in in-
struments of international traffic previously ex-
ported from the United States,’’; and 
(4) by adding at the end of the flush text fol-
lowing subparagraph (vii) (as so added) the fol-
lowing: ‘‘For purposes of subparagraph (vii) of this 
paragraph: The term ‘residue’ means material of bulk 
cargo that remains in an instrument of international 
traffic after the bulk cargo is removed, with a quan-
tity, by weight or volume, not exceeding 7 percent of 
the bulk cargo, and with no or de minimis value. The 
term ‘bulk cargo’ means cargo that is unpackaged and 
is in either solid, liquid, or gaseous form. The term 
‘instruments of international traffic’ means con-
tainers or holders, capable of and suitable for repeated 
use, such as lift vans, cargo vans, shipping tanks, 
skids, pallets, caul boards, and cores for textile fab-
rics, arriving (whether loaded or empty) in use or to 
be used in the shipment of merchandise in inter-
national traffic, and any additional articles or classes 
of articles that the Commissioner of U.S. Customs
205 
and Border Protection designates as instruments of 
international traffic.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) take effect on the date of the enactment of this 
Act and apply with respect to residue of bulk cargo con-
tained in instruments of international traffic that are im-
ported into the customs territory of the United States on 
or after such date of enactment and that previously have 
been exported from the United States. 
SEC. 906. DRAWBACK AND REFUNDS. 
(a) ARTICLES MADE FROM IMPORTED MERCHAN-
DISE.—Section 313(a) of the Tariff Act of 1930 (19 U.S.C. 
1313(a)) is amended by striking ‘‘the full amount of the 
duties paid upon the merchandise so used shall be refunded 
as drawback, less 1 per centum of such duties, except that 
such’’ and inserting ‘‘an amount calculated pursuant to 
regulations prescribed by the Secretary of the Treasury 
under subsection (l) shall be refunded as drawback, except 
that’’. 
(b) SUBSTITUTION FOR DRAWBACK PURPOSES.—Sec-
tion 313(b) of the Tariff Act of 1930 (19 U.S.C. 1313(b)) 
is amended— 
(1) by striking ‘‘If imported’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—If imported’’;
206 
(2) by striking ‘‘and any other merchandise 
(whether imported or domestic) of the same kind and 
quality are’’ and inserting ‘‘or merchandise classifi-
able under the same 8-digit HTS subheading number 
as such imported merchandise is’’; 
(3) by striking ‘‘three years’’ and inserting ‘‘5 
years’’; 
(4) by striking ‘‘the receipt of such imported 
merchandise by the manufacturer or producer of such 
articles’’ and inserting ‘‘the date of importation of 
such imported merchandise’’; 
(5) by striking ‘‘an amount of drawback equal 
to’’ and all that follows through the end period and 
inserting ‘‘an amount calculated pursuant to regula-
tions prescribed by the Secretary of the Treasury 
under subsection (l), but only if those articles have 
not been used prior to such exportation or destruc-
tion.’’; and 
(6) by adding at the end the following: 
‘‘(2) REQUIREMENTS RELATING TO TRANSFER OF 
MERCHANDISE.— 
‘‘(A) MANUFACTURERS AND PRODUCERS.— 
Drawback shall be allowed under paragraph (1) 
with respect to an article manufactured or pro-
duced using imported merchandise or other mer-
207 
chandise classifiable under the same 8-digit HTS 
subheading number as such imported merchan-
dise only if the manufacturer or producer of the 
article received such imported merchandise or 
such other merchandise, directly or indirectly, 
from the importer. 
‘‘(B) 
EXPORTERS
AND
DESTROYERS.— 
Drawback shall be allowed under paragraph (1) 
with respect to a manufactured or produced arti-
cle that is exported or destroyed only if the ex-
porter or destroyer received that article, directly 
or indirectly, from the manufacturer or pro-
ducer. 
‘‘(C) EVIDENCE OF TRANSFER.—Transfers 
of merchandise under subparagraph (A) and 
transfers of articles under subparagraph (B) 
may be evidenced by business records kept in the 
normal course of business and no additional cer-
tificates of transfer or manufacture shall be re-
quired. 
‘‘(3) SUBMISSION
OF
BILL
OF
MATERIALS
OR 
FORMULA.— 
‘‘(A) IN GENERAL.—Drawback shall be al-
lowed under paragraph (1) with respect to an 
article manufactured or produced using im-
208 
ported merchandise or other merchandise classifi-
able under the same 8-digit HTS subheading 
number as such imported merchandise only if 
the person making the drawback claim submits 
with the claim a bill of materials or formula 
identifying the merchandise and article by the 8- 
digit HTS subheading number and the quantity 
of the merchandise. 
‘‘(B) BILL
OF
MATERIALS
AND
FORMULA 
DEFINED.—In this paragraph, the terms ‘bill of 
materials’ and ‘formula’ mean records kept in 
the normal course of business that identify each 
component incorporated into a manufactured or 
produced article or that identify the quantity of 
each element, material, chemical, mixture, or 
other substance incorporated into a manufac-
tured article. 
‘‘(4) SPECIAL
RULE
FOR
SOUGHT
CHEMICAL 
ELEMENTS.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), a sought chemical element may be— 
‘‘(i) considered imported merchandise, 
or merchandise classifiable under the same 
8-digit HTS subheading number as such 
imported merchandise, used in the manu-
209 
facture or production of an article as de-
scribed in paragraph (1); and 
‘‘(ii) substituted for source material 
containing that sought chemical element, 
without regard to whether the sought chem-
ical element and the source material are 
classifiable under the same 8-digit HTS 
subheading number, and apportioned quan-
titatively, as appropriate. 
‘‘(B) SOUGHT
CHEMICAL
ELEMENT
DE-
FINED.—In this paragraph, the term ‘sought 
chemical element’ means an element listed in the 
Periodic Table of Elements that is imported into 
the United States or a chemical compound con-
sisting of those elements, either separately in ele-
mental form or contained in source material.’’. 
(c) MERCHANDISE NOT CONFORMING TO SAMPLE OR 
SPECIFICATIONS.—Section 313(c) of the Tariff Act of 1930 
(19 U.S.C. 1313(c)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (C)(ii), by striking 
‘‘under a certificate of delivery’’ each place it ap-
pears; 
(B) in subparagraph (D)—
210 
(i) by striking ‘‘3’’ and inserting ‘‘5’’; 
and 
(ii) by striking ‘‘the Customs Service’’ 
and inserting ‘‘U.S. Customs and Border 
Protection’’; and 
(C) in the flush text at the end, by striking 
‘‘the full amount of the duties paid upon such 
merchandise, less 1 percent,’’ and inserting ‘‘an 
amount calculated pursuant to regulations pre-
scribed by the Secretary of the Treasury under 
subsection (l)’’; 
(2) in paragraph (2), by striking ‘‘the Customs 
Service’’ and inserting ‘‘U.S. Customs and Border 
Protection’’; and 
(3) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) EVIDENCE
OF
TRANSFERS.—Transfers of 
merchandise under paragraph (1) may be evidenced 
by business records kept in the normal course of busi-
ness and no additional certificates of transfer shall be 
required.’’. 
(d) PROOF OF EXPORTATION.—Section 313(i) of the 
Tariff Act of 1930 (19 U.S.C. 1313(i)) is amended to read 
as follows:
211 
‘‘(i) PROOF OF EXPORTATION.—A person claiming 
drawback under this section based on the exportation of an 
article shall provide proof of the exportation of the article. 
Such proof of exportation— 
‘‘(1) shall establish fully the date and fact of ex-
portation and the identity of the exporter; and 
‘‘(2) may be established through the use of 
records kept in the normal course of business or 
through an electronic export system of the United 
States Government, as determined by the Commis-
sioner of U.S. Customs and Border Protection.’’. 
(e) UNUSED
MERCHANDISE
DRAWBACK.—Section 
313(j) of the Tariff Act of 1930 (19 U.S.C. 1313(j)) is 
amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A), in the matter pre-
ceding clause (i)— 
(i) by striking ‘‘3-year’’ and inserting 
‘‘5-year’’; and 
(ii) by inserting ‘‘and before the draw-
back claim is filed’’ after ‘‘the date of im-
portation’’; and 
(B) in the flush text at the end, by striking 
‘‘99 percent of the amount of each duty, tax, or 
fee so paid’’ and inserting ‘‘an amount cal-
212 
culated pursuant to regulations prescribed by the 
Secretary of the Treasury under subsection (l)’’; 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘paragraph (4)’’ and inserting 
‘‘paragraphs (4), (5), and (6)’’; 
(B) in subparagraph (A), by striking ‘‘com-
mercially interchangeable with’’ and inserting 
‘‘classifiable under the same 8-digit HTS sub-
heading number as’’; 
(C) in subparagraph (B)— 
(i) by striking ‘‘3-year’’ and inserting 
‘‘5-year’’; and 
(ii) by inserting ‘‘and before the draw-
back claim is filed’’ after ‘‘the imported 
merchandise’’; and 
(D) in subparagraph (C)(ii), by striking 
subclause (II) and inserting the following: 
‘‘(II) received the imported mer-
chandise, other merchandise classifiable 
under the same 8-digit HTS sub-
heading number as such imported mer-
chandise, or any combination of such 
imported merchandise and such other 
merchandise, directly or indirectly
213 
from the person who imported and 
paid any duties, taxes, and fees im-
posed under Federal law upon impor-
tation or entry and due on the im-
ported merchandise (and any such 
transferred merchandise, regardless of 
its origin, will be treated as the im-
ported merchandise and any retained 
merchandise will be treated as domestic 
merchandise);’’; 
(E) in the flush text at the end— 
(i) by striking ‘‘the amount of each 
such duty, tax, and fee’’ and all that follows 
through ‘‘99 percent of that duty, tax, or 
fee’’ and inserting ‘‘an amount calculated 
pursuant to regulations prescribed by the 
Secretary of the Treasury under subsection 
(l) shall be refunded as drawback’’; and 
(ii) by striking the last sentence and 
inserting the following: ‘‘Notwithstanding 
subparagraph (A), drawback shall be al-
lowed under this paragraph with respect to 
wine if the imported wine and the exported 
wine are of the same color and the price 
variation between the imported wine and
214 
the exported wine does not exceed 50 per-
cent. Transfers of merchandise may be evi-
denced by business records kept in the nor-
mal course of business and no additional 
certificates of transfer shall be required.’’; 
and 
(3) in paragraph (3)(B), by striking ‘‘the com-
mercially interchangeable merchandise’’ and inserting 
‘‘merchandise classifiable under the same 8-digit HTS 
subheading number as such imported merchandise’’; 
and 
(4) by adding at the end the following: 
‘‘(5)(A) For purposes of paragraph (2) and ex-
cept as provided in subparagraph (B), merchandise 
may not be substituted for imported merchandise for 
drawback purposes based on the 8-digit HTS sub-
heading number if the article description for the 8- 
digit HTS subheading number under which the im-
ported merchandise is classified begins with the term 
‘other’. 
‘‘(B) In cases described in subparagraph (A), 
merchandise may be substituted for imported mer-
chandise for drawback purposes if— 
‘‘(i) the other merchandise and such im-
ported merchandise are classifiable under the
215 
same 10-digit HTS statistical reporting number; 
and 
‘‘(ii) the article description for that 10-digit 
HTS statistical reporting number does not begin 
with the term ‘other’. 
‘‘(6)(A) For purposes of paragraph (2), a draw-
back claimant may use the first 8 digits of the 10- 
digit Schedule B number for merchandise or an arti-
cle to determine if the merchandise or article is classi-
fiable under the same 8-digit HTS subheading num-
ber as the imported merchandise, without regard to 
whether the Schedule B number corresponds to more 
than one 8-digit HTS subheading number. 
‘‘(B) In this paragraph, the term ‘Schedule B’ 
means the Department of Commerce Schedule B, Sta-
tistical Classification of Domestic and Foreign Com-
modities Exported from the United States.’’. 
(f) LIABILITY
FOR
DRAWBACK
CLAIMS.—Section 
313(k) of the Tariff Act of 1930 (19 U.S.C. 1313(k)) is 
amended to read as follows: 
‘‘(k) LIABILITY FOR DRAWBACK CLAIMS.— 
‘‘(1) IN GENERAL.—Any person making a claim 
for drawback under this section shall be liable for the 
full amount of the drawback claimed.
216 
‘‘(2) LIABILITY
OF
IMPORTERS.—An importer 
shall be liable for any drawback claim made by an-
other person with respect to merchandise imported by 
the importer in an amount equal to the lesser of— 
‘‘(A) the amount of duties, taxes, and fees 
that the person claimed with respect to the im-
ported merchandise; or 
‘‘(B) the amount of duties, taxes, and fees 
that the importer authorized the other person to 
claim with respect to the imported merchandise. 
‘‘(3) JOINT
AND
SEVERAL
LIABILITY.—Persons 
described in paragraphs (1) and (2) shall be jointly 
and severally liable for the amount described in para-
graph (2).’’. 
(g) REGULATIONS.—Section 313(l) of the Tariff Act of 
1930 (19 U.S.C. 1313(l)) is amended to read as follows: 
‘‘(l) REGULATIONS.— 
‘‘(1) IN GENERAL.—Allowance of the privileges 
provided for in this section shall be subject to compli-
ance with such rules and regulations as the Secretary 
of the Treasury shall prescribe. 
‘‘(2) CALCULATION OF DRAWBACK.— 
‘‘(A) IN GENERAL.—Not later than the date 
that is 2 years after the date of the enactment of 
the Trade Facilitation and Trade Enforcement