374
‘‘(A) the transferred merchandise was not
and will not be claimed by the predecessor, and
‘‘(B) the predecessor did not and will not
issue any certificate to any other person that
would enable that person to claim drawback.
‘‘(t) DRAWBACK CERTIFICATES.—Any person who is-
sues a certificate which would enable another person to
claim drawback shall be subject to the recordkeeping pro-
visions of this chapter, with the retention period beginning
on the date that such certificate is issued.
‘‘(u) ELIGIBILITY
OF ENTERED
OR WITHDRAWN
MERCHANDISE.—Imported merchandise that has not been
regularly entered or withdrawn for consumption shall not
satisfy any requirement for use, exportation, or destruc-
tion under this section.
‘‘(v) MULTIPLE DRAWBACK CLAIMS.—Merchandise
that is exported or destroyed to satisfy any claim for draw-
back shall not be the basis of any other claim for draw-
back; except that appropriate credit and deductions for
claims covering components or ingredients of such mer-
chandise shall be made in computing drawback pay-
ments.’’.
(b) APPLICATION OF AMENDMENT TO FINISHED PE-
TROLEUM DERIVATIVES.—Notwithstanding section 514 of
the Tariff Act of 1930 (19 U.S.C. 1514) or any other pro-
375
vision of law, the amendment made by paragraph (6) of
subsection (a) shall apply to—
(1) claims filed or liquidated on or after Janu-
ary 1, 1988, and
(2) claims that are unliquidated, under protest,
or in litigation on the date of the enactment of this
Act.
SEC. 633. EFFECTIVE DATE OF RATES OF DUTY.
Section 315 (19 U.S.C. 1315) is amended—
(1) by striking out ‘‘appropriate customs officer
in the form and manner prescribed by regulations of
the Secretary of the Treasury,’’ in the first sentence
of subsection (a) and inserting ‘‘Customs Service by
written, electronic or such other means as the Sec-
retary by regulation shall prescribe,’’;
(2) by striking out ‘‘customs custody’’ in the
first sentence of subsection (b) and inserting ‘‘cus-
tody of the Customs Service’’; and
(3) by striking out ‘‘paragraph 813’’ in sub-
section (c) and inserting ‘‘chapter 98 of the Har-
monized Tariff Schedule of the United States’’.
SEC. 634. DEFINITIONS.
Section 401 (19 U.S.C. 1401) is amended—
(1) by amending subsection (k) to read as fol-
lows:
376
‘‘(k) The term ‘hovering vessel’ means—
‘‘(1) any vessel which is found or kept off the
coast of the United States within or without the cus-
toms waters, if, from the history, conduct, character,
or location of the vessel, it is reasonable to believe
that such vessel is being used or may be used to in-
troduce or promote or facilitate the introduction or
attempted introduction of merchandise into the
United States in violation of the laws of the United
States; and
‘‘(2) any vessel which has visited a vessel de-
scribed in paragraph (1).’’; and
(2) by inserting at the end thereof the following
new subsections:
‘‘(n) The term ‘electronic transmission’ means the
transfer of data or information through an authorized
electronic data interchange system consisting of, but not
limited to, computer modems and computer networks.
‘‘(o) The term ‘electronic entry’ means the electronic
transmission to the Customs Service of—
‘‘(1) entry information required for the entry of
merchandise, and
‘‘(2) entry summary information required for
the classification and appraisement of the merchan-
377
dise, the verification of statistical information, and
the determination of compliance with applicable law.
‘‘(p) The term ‘electronic data interchange system’
means any established mechanism approved by the Com-
missioner of Customs through which information can be
transferred electronically.
‘‘(q) The term ‘National Customs Automation Pro-
gram’ means the program established under section 411.
‘‘(r) The term ‘import activity summary statement’
refers to data or information transmitted electronically to
the Customs Service, in accordance with such regulations
as the Secretary prescribes, at the end of a specified pe-
riod of time which enables the Customs Service to assess
properly the duties, taxes and fees on merchandise im-
ported during that period, collect accurate statistics and
determine whether any other applicable requirement of law
(other than a requirement relating to release from customs
custody) is met.
‘‘(s) The term ‘reconciliation’ means an electronic
process, initiated at the request of an importer, under
which the elements of an entry, other than those elements
related to the admissibility of the merchandise, that are
undetermined at the time of entry summary are provided
to the Customs Service at a later time. A reconciliation
378
is treated as an entry for purposes of liquidation, reliqui-
dation, and protest.’’.
SEC. 635. MANIFESTS.
Section 431 (19 U.S.C. 1431) is amended—
(1) by amending subsections (a) and (b) to read
as follows:
‘‘(a) IN GENERAL.—Every vessel required to make
entry under section 434 or obtain clearance under section
4197 of the Revised Statutes of the United States (46
U.S.C. App. 91) shall have a manifest that complies with
the requirements prescribed under subsection (d).
‘‘(b) PRODUCTION OF MANIFEST.—Any manifest re-
quired by the Customs Service shall be signed, produced,
delivered or electronically transmitted by the master or
person in charge of the vessel, aircraft, or vehicle, or by
any other authorized agent of the owner or operator of
the vessel, aircraft, or vehicle in accordance with the re-
quirements prescribed under subsection (d). A manifest
may be supplemented by bill of lading data supplied by
the issuer of such bill. If any irregularity of omission or
commission occurs in any way in respect to any manifest
or bill of lading data, the owner or operator of the vessel,
aircraft or vehicle, or any party responsible for such irreg-
ularity, shall be liable for any fine or penalty prescribed
by law with respect to such irregularity. The Customs
379
Service may take appropriate action against any of the
parties.’’; and
(2) by inserting after subsection (c) the follow-
ing new subsection:
‘‘(d) REGULATIONS.—
‘‘(1) IN GENERAL.—The Secretary shall by reg-
ulation—
‘‘(A) specify the form for, and the informa-
tion and data that must be contained in, the
manifest required by subsection (a);
‘‘(B) allow, at the option of the individual
producing the manifest and subject to para-
graph (2), letters and documents shipments to
be accounted for by summary manifesting pro-
cedures;
‘‘(C) prescribe the manner of production
for, and the delivery for electronic transmittal
of, the manifest required by subsection (a); and
‘‘(D) 
prescribe 
the 
manner 
for
supplementing manifests with bill of lading data
under subsection (b).
‘‘(2) LETTERS AND DOCUMENTS SHIPMENTS.—
For purposes of paragraph (1)(B)—
‘‘(A) the Customs Service may require with
respect to letters and documents shipments—
380
‘‘(i) that they be segregated by coun-
try of origin, and
‘‘(ii) additional examination proce-
dures that are not necessary for individ-
ually manifested shipments;
‘‘(B) standard letter envelopes and stand-
ard document packs shall be segregated from
larger document shipments for purposes of cus-
toms inspections; and
‘‘(C) the term ‘letters and documents’
means—
‘‘(i) data described in General Head-
note 4(c) of the Harmonized Tariff Sched-
ule of the United States,
‘‘(ii) securities and similar evidences
of value described in heading 4907 of such
Schedule, but not monetary instruments
defined pursuant to chapter 53 of title 31,
United States Code, and
‘‘(iii) personal correspondence, wheth-
er on paper, cards, photographs, tapes, or
other media.’’.
SEC. 636. INVOICE CONTENTS.
Section 481 (19 U.S.C. 1481) is amended—
(1) by amending subsection (a)—
381
(A) by amending the matter preceding
paragraph (1) to read as follows: ‘‘IN GEN-
ERAL.—All invoices of merchandise to be im-
ported into the United States and any elec-
tronic equivalent thereof considered acceptable
by the Secretary in regulations prescribed under
this section shall set forth, in written, elec-
tronic, or such other form as the Secretary
shall prescribe, the following:’’,
(B) by amending paragraph (3) to read as
follows:
‘‘(3) A detailed description of the merchandise,
including the commercial name by which each item
is known, the grade or quality, and the marks, num-
bers, or symbols under which sold by the seller or
manufacturer in the country of exportation, together
with the marks and numbers of the packages in
which the merchandise is packed;’’, and
(C) by amending paragraph (10) to read
as follows:
‘‘(10) Any other fact that the Secretary may by
regulation require as being necessary to a proper ap-
praisement, examination and classification of the
merchandise.’’;
382
(2) by amending subsection (c) to read as
follows:
‘‘(c) IMPORTER PROVISION OF INFORMATION.—Any
information required to be set forth on an invoice may
alternatively be provided by any of the parties qualifying
as an ‘importer of record’ under section 484(a)(2)(B) by
such means, in such form or manner, and within such time
as the Secretary shall by regulation prescribe.’’; and
(3) by inserting before the period at the end of
subsection (d) the following: ‘‘and may allow for the
submission or electronic transmission of partial in-
voices, electronic equivalents of invoices, bills, or
other documents or parts thereof, required under
this section’’.
SEC. 637. ENTRY OF MERCHANDISE.
(a) AMENDMENTS TO SECTION 484.—Section 484
(19 U.S.C. 1484) is amended to read as follows:
‘‘SEC. 484. ENTRY OF MERCHANDISE.
‘‘(a) REQUIREMENT AND TIME.—
‘‘(1) Except as provided in sections 490, 498,
552, 553, and 336(j), one of the parties qualifying
as ‘importer of record’ under paragraph (2)(B), ei-
ther in person or by an agent authorized by the
party in writing, shall, using reasonable care—
383
‘‘(A) make entry therefor by filing with the
Customs Service—
‘‘(i) such documentation or, pursuant
to an electronic data interchange system,
such information as is necessary to enable
the Customs Service to determine whether
the merchandise may be released from cus-
toms custody, and
‘‘(ii) notification whether an import
activity summary statement will be filed;
and
‘‘(B) complete the entry by filing with the
Customs Service the declared value, classifica-
tion and rate of duty applicable to the merchan-
dise, and such other documentation or, pursu-
ant to an electronic data interchange system,
such other information as is necessary to enable
the Customs Service to—
‘‘(i) properly assess duties on the mer-
chandise,
‘‘(ii) collect accurate statistics with re-
spect to the merchandise, and
‘‘(iii) determine whether any other ap-
plicable requirement of law (other than a
384
requirement relating to release from cus-
toms custody) is met.
‘‘(2)(A) The documentation or information re-
quired under paragraph (1) with respect to any im-
ported merchandise shall be filed or transmitted in
such manner and within such time periods as the
Secretary shall by regulation prescribe. Such regula-
tions shall provide for the filing of import activity
summary statements, covering entries or warehouse
withdrawals made during a calendar month, within
such time period as is prescribed in regulations but
not to exceed the 20th day following such calendar
month.
‘‘(B) When an entry of merchandise is made
under this section, the required documentation or in-
formation shall be filed or electronically transmitted
either by the owner or purchaser of the merchandise
or, when appropriately designated by the owner, pur-
chaser, or consignee of the merchandise, a person
holding a valid license under section 641. When a
consignee declares on entry that he is the owner or
purchaser of merchandise the Customs Service may,
without liability, accept the declaration. For the pur-
poses of this Act, the importer of record must be one
385
of the parties who is eligible to file the documenta-
tion or information required by this section.
‘‘(C) The Secretary, in prescribing regulations
to carry out this subsection, shall establish proce-
dures which insure the accuracy and timeliness of
import statistics, particularly statistics relevant to
the classification and valuation of imports. Correc-
tions of errors in such statistical data shall be trans-
mitted immediately to the Director of the Bureau of
the Census, who shall make corrections in the statis-
tics maintained by the Bureau. The Secretary shall
also provide, to the maximum extent practicable, for
the protection of the revenue, the enforcement of
laws governing the importation and exportation of
merchandise, the facilitation of the commerce of the
United States, and the equal treatment of all im-
porters of record of imported merchandise.
‘‘(b) RECONCILIATION.—
‘‘(1) IN GENERAL.—A party that electronically
transmits an entry summary or import activity sum-
mary statement may at the time of filing such sum-
mary or statement notify the Customs Service of his
intention to file a reconciliation pursuant to such
regulations as the Secretary may prescribe. Such
reconciliation must be filed by the importer of record
386
within such time period as is prescribed by regula-
tion but no later than 15 months following the filing
of the entry summary or import activity summary
statement; except that the prescribed time period for
reconciliation issues relating to the assessment of
antidumping and countervailing duties shall require
filing no later than 90 days after the Customs Serv-
ice advises the importer that a period of review for
antidumping or countervailing duty purposes has
been completed. Before filing a reconciliation, an im-
porter of record shall post bond or other security
pursuant to such regulations as the Secretary may
prescribe.
‘‘(2) REGULATIONS
REGARDING
AD/CV
DU-
TIES.—The Secretary shall prescribe, in consultation
with the Secretary of Commerce, such regulations as
are necessary to adapt the reconciliation process for
use in the collection of antidumping and countervail-
ing duties.
‘‘(c) RELEASE
OF MERCHANDISE.—The Customs
Service may permit the entry and release of merchandise
from customs custody in accordance with such regulations
as the Secretary may prescribe. No officer of the Customs
Service shall be liable to any person with respect to the
387
delivery of merchandise released from customs custody in
accordance with such regulations.
‘‘(d) SIGNING
AND CONTENTS.—Entries shall be
signed by the importer of record, or his agent, unless filed
pursuant to an electronic data interchange system. If elec-
tronically filed, each transmission of data shall be certified
by an importer of record or his agent, one of whom shall
be resident in the United States for purposes of receiving
service of process, as being true and correct to the best
of his knowledge and belief, and such transmission shall
be binding in the same manner and to the same extent
as a signed document. The entry shall set forth such facts
in regard to the importation as the Secretary may require
and shall be accompanied by such invoices, bills of lading,
certificates, and documents, or their electronically submit-
ted equivalents, as are required by regulation.
‘‘(e) PRODUCTION OF INVOICE.—The Secretary may
provide by regulation for the production of an invoice,
parts thereof, or the electronic equivalents thereof, in such
manner and form, and under such terms and conditions,
as the Secretary considers necessary.
‘‘(f) STATISTICAL ENUMERATION.—The Secretary,
the Secretary of Commerce, and the United States Inter-
national Trade Commission shall establish from time to
time for statistical purposes an enumeration of articles in
388
such detail as in their judgment may be necessary, com-
prehending all merchandise imported into the United
States and exported from the United States, and shall
seek, in conjunction with statistical programs for domestic
production and programs for achieving international har-
monization of trade statistics, to establish the comparabil-
ity thereof with such enumeration of articles. All import
entries and export declarations shall include or have at-
tached thereto an accurate statement specifying, in terms
of such detailed enumeration, the kinds and quantities of
all merchandise imported and exported and the value of
the total quantity of each kind of article.
‘‘(g) STATEMENT OF COST OF PRODUCTION.—Under
such regulations as the Secretary may prescribe, the Cus-
toms Service may require a verified statement from the
manufacturer or producer showing the cost of producing
the imported merchandise, if the Customs Service consid-
ers such verification necessary for the appraisement of
such merchandise.
‘‘(h) ADMISSIBILITY
OF DATA ELECTRONICALLY
TRANSMITTED.—Any entry or other information transmit-
ted by means of an authorized electronic data interchange
system shall be admissible in any and all administrative
and judicial proceedings as evidence of such entry or infor-
mation.’’.
389
(b) AMENDMENT TO SECTION 771.—Section 771 (19
U.S.C. 1677) is amended by adding at the end the follow-
ing new paragraph:
‘‘(23) ENTRY.—The term ‘entry’ includes, in
appropriate circumstances as determined by the ad-
ministering authority, a reconciliation entry created
under a reconciliation process, defined in section
401(s), that is initiated by an importer. The liability
of an importer under an antidumping or countervail-
ing duty proceeding for entries of merchandise sub-
ject to the proceeding will attach to the correspond-
ing reconciliation entry or entries. Suspension of liq-
uidation of the reconciliation entry or entries, for the
purpose of enforcing this title, is equivalent to the
suspension of liquidation of the corresponding indi-
vidual entries; but the suspension of liquidation of
the reconciliation entry or entries for such purpose
does not preclude liquidation for any other pur-
pose.’’.
SEC. 638. APPRAISEMENT AND OTHER PROCEDURES.
Section 500 (19 U.S.C. 1500) is amended—
(1) by striking out ‘‘The appropriate customs
officer’’ and inserting ‘‘The Customs Service’’;
(2) by striking out ‘‘appraise’’ in subsection (a)
and inserting ‘‘fix the final appraisement of’’;
390
(3) by striking out ‘‘ascertain the’’ in sub-
section (b) and inserting ‘‘fix the final’’;
(4) by amending subsection (c)—
(A) by inserting ‘‘final’’ after ‘‘fix the’’,
and
(B) by inserting ‘‘, taxes, and fees’’ after
‘‘duties’’ wherever it appears; and
(5) by amending subsections (d) and (e) to read
as follows:
‘‘(d) liquidate the entry and reconciliation, if
any, of such merchandise; and
‘‘(e) give or transmit, pursuant to an electronic
data interchange system, notice of such liquidation
to the importer, his consignee, or agent in such form
and manner as the Secretary shall by regulation pre-
scribe.’’.
SEC. 639. VOLUNTARY RELIQUIDATIONS.
Section 501 (19 U.S.C. 1501) is amended—
(1) by striking out ‘‘the appropriate customs of-
ficer on his own initiative’’ and inserting ‘‘the Cus-
toms Service’’;
(2) by inserting ‘‘or transmitted’’ after ‘‘given’’
wherever it appears; and
(3) by amending the section heading to read as
follows:
391
‘‘SEC. 501. VOLUNTARY RELIQUIDATIONS BY THE CUSTOMS
SERVICE.’’.
SEC. 640. APPRAISEMENT REGULATIONS.
Section 502 (19 U.S.C. 1502) is amended—
(1) by amending subsection (a)—
(A) by inserting ‘‘(including regulations es-
tablishing procedures for the issuance of bind-
ing rulings prior to the entry of the merchan-
dise concerned)’’ after ‘‘law’’,
(B) by striking out ‘‘ports of entry, and’’
inserting ‘‘ports of entry. The Secretary’’,
(C) by inserting ‘‘or classifying’’ after ‘‘ap-
praising’’ wherever it appears, and
(D) by striking out ‘‘such port’’ and insert-
ing ‘‘any port, and may direct any customs offi-
cer at any port to review entries of merchandise
filed at any other port’’; and
(2) by striking out subsection (b) and redesig-
nating subsection (c) as subsection (b).
SEC. 641. LIMITATION ON LIQUIDATION.
Section 504 (19 U.S.C. 1504) is amended—
(1) by amending subsection (a)—
(A) by striking out ‘‘Except as provided in
subsection (b),’’ and inserting ‘‘Unless an entry
is extended under subsection (b) or suspended
as required by statute or court order,’’,
392
(B) by striking out ‘‘or’’ at the end of
paragraph (2),
(C) by inserting ‘‘or’’ after the semicolon
at the end of paragraph (3), and
(D) by inserting the following new para-
graph after paragraph (3):
‘‘(4) if a reconciliation is filed, or should have
been filed, the date of the filing under section 484
or the date the reconciliation should have been
filed;’’; and
(2) by amending subsections (b), (c), and (d) to
read as follows:
‘‘(b) EXTENSION.—The Secretary may extend the pe-
riod in which to liquidate an entry if—
‘‘(1) the information needed for the proper ap-
praisement or classification of the merchandise, or
for insuring compliance with applicable law, is not
available to the Customs Service; or
‘‘(2) the importer of record requests such exten-
sion and shows good cause therefor.
The Secretary shall give notice of an extension under this
subsection to the importer of record and the surety of such
importer of record. Notice shall be in such form and man-
ner (which may include electronic transmittal) as the Sec-
retary shall by regulation prescribe. Any entry the liquida-
393
tion of which is extended under this subsection shall be
treated as having been liquidated at the rate of duty,
value, quantity, and amount of duty asserted at the time
of entry by the importer of record at the expiration of 4
years from the applicable date specified in subsection (a).
‘‘(c) NOTICE OF SUSPENSION.—If the liquidation of
any entry is suspended, the Secretary shall by regulation
require that notice of the suspension be provided, in such
manner as the Secretary considers appropriate, to the im-
porter of record and to any authorized agent and surety
of such importer of record.
‘‘(d) REMOVAL OF SUSPENSION.—When a suspension
required by statute or court order is removed, the Customs
Service shall liquidate the entry within 6 months after re-
ceiving notice of the removal from the Department of
Commerce, other agency, or a court with jurisdiction over
the entry. Any entry not liquidated by the Customs Service
within 6 months after receiving such notice shall be treat-
ed as having been liquidated at the rate of duty, value,
quantity, and amount of duty asserted at the time of entry
by the importer of record.’’.
SEC. 642. PAYMENT OF DUTIES AND FEES.
(a) AMENDMENT
TO SECTION 505.—Section 505
(U.S.C. 1505) is amended to read as follows:
394
‘‘SEC. 505. PAYMENT OF DUTIES AND FEES.
‘‘(a) DEPOSIT OF ESTIMATED DUTIES, FEES, AND
INTEREST.—Unless merchandise is entered for warehouse
or transportation, or under bond, the importer of record
shall deposit with the Customs Service at the time of mak-
ing entry, or at such later time as the Secretary may pre-
scribe by regulation, the amount of duties and fees esti-
mated to be payable thereon. Such regulations may pro-
vide that estimated duties and fees shall be deposited be-
fore or at the time an import activity summary statement
is filed. If an import activity summary statement is filed,
the estimated duties and fees shall be deposited together
with interest, at a rate determined by the Secretary, ac-
cruing from the first date of the month the statement is
required to be filed until the date such statement is actu-
ally filed.
‘‘(b) COLLECTION OR REFUND OF DUTIES, FEES,
AND INTEREST DUE UPON LIQUIDATION OR RELIQUIDA-
TION.—The Customs Service shall collect any increased or
additional duties and fees due, together with interest
thereon, or refund any excess moneys deposited, together
with interest thereon, as determined on a liquidation or
reliquidation. Duties, fees, and interest determined to be
due upon liquidation or reliquidation are due 30 days after
issuance of the bill for such payment. Refunds of excess
395
moneys deposited, together with interest thereon, shall be
paid within 30 days of liquidation or reliquidation.
‘‘(c) INTEREST.—Interest assessed due to an
underpayment of duties, fees, or interest shall accrue, at
a rate determined by the Secretary, from the date the im-
porter of record is required to deposit estimated duties,
fees, and interest to the date of liquidation or reliquidation
of the applicable entry or reconciliation. Interest on excess
moneys deposited shall accrue, at a rate determined by
the Secretary, from the date the importer of record depos-
its estimated duties, fees, and interest to the date of liq-
uidation or reliquidation of the applicable entry or rec-
onciliation.
‘‘(d) DELINQUENCY.—If duties, fees, and interest de-
termined to be due or refunded are not paid in full within
the 30-day period specified in subsection (b), any unpaid
balance shall be considered delinquent and bear interest
by 30-day periods, at a rate determined by the Secretary,
from the date of liquidation or reliquidation until the full
balance is paid. No interest shall accrue during the 30-
day period in which payment is actually made.’’.
(b) CONFORMING AMENDMENT.—Subsection (d) of
section 520 (19 U.S.C. 1520(d)) is repealed.
SEC. 643. ABANDONMENT AND DAMAGE.
Section 506 (19 U.S.C. 1506) is amended—
396
(1) by striking out ‘‘the appropriate customs of-
ficer’’ and ‘‘such customs officer’’ wherever they ap-
pear and inserting ‘‘the Customs Service’’;
(2) by amending paragraph (1)—
(A) by striking out ‘‘not sent to the ap-
praiser’s stores for’’ and inserting ‘‘released
without an’’,
(B) by striking out ‘‘of the examination
packages or quantities of merchandise’’,
(C) by striking out ‘‘the appraiser’s stores’’
and inserting ‘‘the Customs Service’’, and
(D) by inserting ‘‘or entry’’ after ‘‘in-
voice’’, and
(3) by amending paragraph (2)—
(A) by inserting ‘‘, electronically or other-
wise,’’ after ‘‘files’’, and
(B) by striking out ‘‘written’’.
SEC. 644. CUSTOMS OFFICER’S IMMUNITY.
Section 513 (19 U.S.C. 1513) is amended to read as
follows:
‘‘SEC. 513. CUSTOMS OFFICER’S IMMUNITY.
‘‘No customs officer shall be liable in any way to any
person for or on account of—
‘‘(1) any ruling or decision regarding the ap-
praisement or the classification of any imported
397
merchandise or regarding the duties, fees, and taxes
charged thereon,
‘‘(2) the collection of any dues, charges, duties,
fees, and taxes on or on account of any imported
merchandise, or
‘‘(3) any other matter or thing as to which any
person might under this Act be entitled to protest or
appeal from the decision of such officer.’’.
SEC. 645. PROTESTS.
Section 514 (19 U.S.C. 1514) is amended—
(1) by amending subsection (a)—
(A) by striking out ‘‘appropriate customs
officer’’ in the text preceding paragraph (1) and
inserting ‘‘Customs Service’’,
(B) by inserting ‘‘or reconciliation as to
the issues contained therein,’’ after ‘‘entry,’’ in
paragraph (5),
(C) by striking out ‘‘and’’ and inserting
‘‘or’’ at the end of paragraph (6),
(D) by striking out the comma at the end
of paragraph (7) and inserting a semicolon, and
(E) by striking out ‘‘appropriate customs
officer, who’’ in the text following paragraph
(7) and inserting ‘‘Customs Service, which’’;
398
(2) by amending subsection (b) by striking out
‘‘appropriate customs officer’’ and inserting ‘‘Cus-
toms Service’’;
(3) by amending the first sentence of subsection
(c)(1) to read as follows: ‘‘A protest of a decision
made under subsection (a) shall be filed in writing,
or transmitted electronically pursuant to an elec-
tronic data interchange system, in accordance with
regulations prescribed by the Secretary. A protest
must set forth distinctly and specifically—
‘‘(A) each decision described in subsection
(a) as to which protest is made;
‘‘(B) each category of merchandise affected
by each decision set forth under paragraph (1);
‘‘(C) the nature of each objection and the
reasons therefor; and
‘‘(D) any other matter required by the Sec-
retary by regulation.’’;
(4) by redesignating paragraph (2) of sub-
section (c) as paragraph (3) and by striking out
‘‘such customs officer’’ in such redesignated para-
graph and inserting ‘‘the Customs Service’’;
(5) by designating the last sentence of para-
graph (1) of subsection (c) as paragraph (2);
399
(6) by striking out ‘‘customs officer’’ in sub-
section (d) and inserting ‘‘Customs Service’’; and
(7) by amending the section heading to read as
follows:
‘‘SEC. 514. PROTEST AGAINST DECISIONS OF THE CUSTOMS
SERVICE.’’.
SEC. 646. REFUNDS AND ERRORS.
Section 520 (19 U.S.C. 1520) is amended—
(1) by inserting ‘‘or reconciliation’’ after
‘‘entry’’ in paragraphs (1) and (4) of subsection (a);
and
(2) by amending subsection (c)—
(A) by striking out ‘‘appropriate customs
officer’’ wherever it appears and inserting
‘‘Customs Service’’,
(B) by inserting ‘‘or reconciliation’’ after
‘‘reliquidate an entry’’, and
(C) by inserting ‘‘, whether or not result-
ing from or contained in electronic trans-
mission,’’ after ‘‘inadvertence’’ the first place it
appears in paragraph (1).
SEC. 647. BONDS AND OTHER SECURITY.
Section 623 (19 U.S.C. 1623) is amended—
(1) by inserting ‘‘and the manner in which the
bond may be filed with or, pursuant to an author-
400
ized electronic data interchange system, transmitted
to the Customs Service’’ after ‘‘form of such bond’’
in subsection (b)(1); and
(2) by inserting at the end of subsection (d) the
following new sentence: ‘‘Any bond transmitted to
the Customs Service pursuant to an authorized elec-
tronic data interchange system shall have the same
force and effect and be binding upon the parties
thereto as if such bond were manually executed,
signed, and filed.’’.
SEC. 648. CUSTOMHOUSE BROKERS.
Section 641 (19 U.S.C. 1641) is amended—
(1) by adding at the end of subsection (a)(2)
the following new sentence: ‘‘It also includes the
preparation of documents or forms in any format
and the electronic transmission of documents, in-
voices, bills, or parts thereof, intended to be filed
with the Customs Service in furtherance of such ac-
tivities, whether or not signed or filed by the pre-
parer, or activities relating to such preparation, but
does not include the mere electronic transmission of
data received for transmission to Customs.’’;
(2) by amending subsection (c)(1) to read as
follows:
401
‘‘(1) IN GENERAL.—Each person granted a cus-
toms broker’s license under subsection (b) shall be
issued, in accordance with such regulations as the
Secretary shall prescribe, either or both of the
following:
‘‘(A) A national permit for the conduct of
such customs business as the Secretary pre-
scribes by regulation.
‘‘(B) A permit for each customs district in
which that person conducts customs business
and, except as provided in paragraph (2), regu-
larly employs at least 1 individual who is li-
censed under subsection (b)(2) to exercise re-
sponsible supervision and control over the cus-
toms business conducted by that person in that
district.’’;
(3) by inserting at the end of subsection (c) the
following new paragraph:
‘‘(4) APPOINTMENT OF SUBAGENTS.—Notwith-
standing subsection (c)(1), upon the implementation
by the Secretary under section 413(b)(2) of the com-
ponent of the National Customs Automation Pro-
gram referred to in section 411(a)(2)(B), a licensed
broker may appoint another licensed broker holding
a permit in a customs district to act on its behalf
402
as its subagent in that district if such activity re-
lates to the filing of information that is permitted by
law or regulation to be filed electronically. A licensed
broker appointing a subagent pursuant to this para-
graph shall remain liable for any and all obligations
arising under bond and any and all duties, taxes,
and fees, as well as any other liabilities imposed by
law, and shall be precluded from delegating to a
subagent such liability.’’;
(4) by amending subsection (d)(2)(B)—
(A) by striking out ‘‘appropriate customs
officer’’ and inserting ‘‘Customs Service’’ in the
first and third sentences,
(B) by striking out ‘‘he’’ and inserting ‘‘it’’
in the third sentence,
(C) by striking out ‘‘15 days’’ and insert-
ing ‘‘30 days’’ in the third sentence,
(D) by striking out ‘‘the appropriate cus-
toms officer and the customs broker; they’’ and
inserting ‘‘the Customs Service and the customs
broker; which’’ in the sixth sentence,
(E) by striking out ‘‘his’’ and inserting
‘‘the’’ in the seventh sentence, and
403
(F) by striking out ‘‘for his decision’’ and
inserting ‘‘for the decision’’ in the eighth sen-
tence; and
(5) by amending subsection (f) by striking out
‘‘United States Customs Service.’’ and inserting
‘‘Customs Service. The Secretary may not prohibit
customs brokers from limiting their liability to other
persons in the conduct of customs business. For pur-
poses of this subsection or any other provision of
this Act pertaining to recordkeeping, all data re-
quired to be retained by a customs broker may be
kept on microfilm, optical disc, magnetic tapes, disks
or drums, video files or any other electrically gen-
erated medium. Pursuant to such regulations as the
Secretary shall prescribe, the conversion of data to
such storage medium may be accomplished at any
time subsequent to the relevant customs transaction
and the data may be retained in a centralized basis
according to such broker’s business system.’’.
SEC. 649. CONFORMING AMENDMENTS.
(a) PLACE OF ENTRY AND UNLADING.—Section 447
(19 U.S.C. 1447) is amended by striking out ‘‘the appro-
priate customs officer shall consider’’ and inserting ‘‘the
Customs Service considers’’.
404
(b) UNLADING.—Section 449 (19 U.S.C. 1449) is
amended by striking out ‘‘appropriate customs officer of
such port issues a permit for the unlading of such mer-
chandise or baggage,’’ and inserting ‘‘Customs Service is-
sues a permit for the unlading of such merchandise or
baggage at such port,’’.
Subtitle C—Miscellaneous Amend-
ments to the Tariff Act of 1930
SEC. 651. ADMINISTRATIVE EXEMPTIONS.
Section 321 (19 U.S.C. 1321) is amended—
(1) by amending subsection (a)(1)—
(A) by striking out ‘‘of less than $10’’ and
inserting ‘‘of an amount specified by the Sec-
retary by regulation, but not less than $20,’’,
(B) by inserting ‘‘, fees,’’ after ‘‘duties’’
wherever it appears, and
(C) by striking out ‘‘and’’ at the end there-
of;
(2) by amending subsection (a)(2)—
(A) by striking out ‘‘shall not exceed—’’
and inserting ‘‘shall not exceed an amount spec-
ified by the Secretary by regulation, but not
less than—’’,
405
(B) by striking out ‘‘$50’’ and ‘‘$100’’ in
subparagraph (A) and inserting ‘‘$100’’ and
‘‘$200’’, respectively,
(C) by striking out ‘‘$25’’ in subparagraph
(B) and inserting ‘‘$200’’,
(D) by striking out ‘‘$5’’ in subparagraph
(C) and inserting ‘‘$200’’, and
(E) by striking the period at the end there-
of and inserting ‘‘; and’’, and
(3) by inserting a new paragraph (3) at the end
of subsection (a) to read as follows:
‘‘(3) waive the collection of duties, fees, and
taxes due on entered merchandise when such duties,
fees, or taxes are less than $20 or such greater
amount as may be specified by the Secretary by reg-
ulation.’’; and
(4) by amending subsection (b)—
(A) by striking out ‘‘to diminish any dollar
amount specified in subsection (a) and’’; and
(B) by striking out ‘‘such subsection’’
wherever it appears and inserting ‘‘subsection
(a)’’.
SEC. 652. REPORT OF ARRIVAL.
Section 433 (19 U.S.C. 1433) is amended—
(1) by amending subsection (a)(1)—
406
(A) by striking out ‘‘or’’ at the end of sub-
paragraph (B),
(B) by inserting ‘‘or’’ after the semicolon
at the end of subparagraph (C), and
(C) by adding after subparagraph (C) the
following:
‘‘(D) any vessel which has visited a hover-
ing vessel or received merchandise while outside
the territorial sea;’’;
(2) by striking out ‘‘present to customs officers
such’’ in subsection (d) and inserting ‘‘present, or
transmit pursuant to an electronic data interchange
system, to the Customs Service such information,
data,’’; and
(3) by amending subsection (e) to read as fol-
lows:
‘‘(e) PROHIBITION
ON
DEPARTURES
AND
DIS-
CHARGE.—Unless otherwise authorized by law, a vessel,
aircraft or vehicle after arriving in the United States or
Virgin Islands may, but only in accordance with regula-
tions prescribed by the Secretary—
‘‘(1) depart from the port, place, or airport of
arrival; or
‘‘(2) discharge any passenger or merchandise
(including baggage).’’.
407
SEC. 653. ENTRY OF VESSELS.
Section 434 (19 U.S.C. 1434) amended to read as
follows:
‘‘SEC. 434. ENTRY; VESSELS.
‘‘(a) FORMAL ENTRY.—Within 24 hours (or such
other period of time as may be provided under subsection
(c)(2)) after the arrival at any port or place in the United
States of—
‘‘(1) any vessel from a foreign port or place;
‘‘(2) any foreign vessel from a domestic port;
‘‘(3) any vessel of the United States having on
board bonded merchandise or foreign merchandise
for which entry has not been made; or
‘‘(4) any vessel which has visited a hovering
vessel or has delivered or received merchandise while
outside the territorial sea;
the master of the vessel shall, unless otherwise provided
by law, make formal entry at the nearest customs facility
or such other place as the Secretary may prescribe by
regulation.
‘‘(b) PRELIMINARY ENTRY.—The Secretary may by
regulation permit the master to make preliminary entry
of the vessel with the Customs Service in lieu of formal
entry or before formal entry is made. In permitting pre-
liminary entry, the Customs Service shall board a suffi-
408
cient number of vessels to ensure compliance with the laws
it enforces.
‘‘(c) REGULATIONS.—The Secretary may by regula-
tion—
‘‘(1) prescribe the manner and format in which
entry under subsection (a) or subsection (b), or
both, must be made, and such regulations may pro-
vide that any such entry may be made electronically
pursuant to an electronic data interchange system;
‘‘(2) provide that—
‘‘(A) formal entry must be made within a
greater or lesser time than 24 hours after arriv-
al, but in no case more than 48 hours after ar-
rival, and
‘‘(B) formal entry may be made before ar-
rival; and
‘‘(3) authorize the Customs Service to permit
entry or preliminary entry of any vessel to be made
at a place other than a designated port of entry,
under such conditions as may be prescribed.’’.
SEC. 654. UNLAWFUL RETURN OF FOREIGN VESSEL PA-
PERS.
Section 438 (19 U.S.C. 1438) is amended—
(1) by striking out ‘‘section 435’’ and inserting
‘‘section 434’’;
409
(2) by inserting ‘‘, or regulations issued there-
under,’’ after ‘‘of this Act’’; and
(3) by striking out ‘‘the appropriate customs of-
ficer of the port where such vessel has been en-
tered.’’ and inserting ‘‘the Customs Service in the
port in which such vessel has entered.’’.
SEC. 655. VESSELS NOT REQUIRED TO ENTER.
Section 441 (19 U.S.C. 1441) is amended—
(1) by amending the text preceding paragraph
(1) to read as follows: ‘‘The following vessels shall
not be required to make entry under section 434 or
to obtain clearance under section 4197 of the Re-
vised Statutes of the United States (46 U.S.C. App.
91):’’;
(2) by amending paragraph (3) to read as
follows:
‘‘(3) Any vessel carrying passengers on excursion
from the United States Virgin Islands to the British Vir-
gin Islands and returning, if—
‘‘(A) the vessel does not in any way violate the
customs or navigation laws of the United States;
‘‘(B) the vessel has not visited any hovering
vessel; and
‘‘(C) the master of the vessel, if there is on
board any article required by law to be entered, re-
410
ports the article to the Customs Service immediately
upon arrival.’’;
(3) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively, and inserting
after paragraph (3) the following:
‘‘(4) Any United States documented vessel with rec-
reational endorsement or any undocumented United
States pleasure vessel not engaged in trade, if—
‘‘(A) the vessel complies with the reporting re-
quirements of section 433, and with the customs and
navigation laws of the United States;
‘‘(B) the vessel has not visited any hovering
vessel; and
‘‘(C) the master of, and any other person on
board, the vessel, if the master or such person has
on board any article required by law to be entered
or declared, reports such article to the Customs
Service immediately upon arrival;’’;
(4) by amending paragraph (6) (as so redesig-
nated) by striking out ‘‘enrolled and licensed to en-
gage in the foreign and coasting trade in the north-
ern, northeastern, and northwestern frontiers’’ and
inserting ‘‘documented under chapter 121 of title
46, United States Code, with a Great Lakes en-
dorsement’’; and
411
(5) by amending the section heading to read as
follows:
‘‘SEC. 441. EXCEPTIONS TO VESSEL ENTRY AND CLEAR-
ANCE REQUIREMENTS.’’.
SEC. 656. UNLADING.
Section 448(a) (19 U.S.C. 1448(a)) is amended—
(1) by amending the first sentence—
(A) by striking out ‘‘enter)’’ and inserting
‘‘enter or clear)’’,
(B) by striking out ‘‘or vehicle arriving
from a foreign port or place’’ and inserting ‘‘re-
quired to make entry under section 434, or ve-
hicle required to report arrival under section
433,’’,
(C) by inserting ‘‘or transmitted pursuant
to an electronic data interchange system’’ after
‘‘issued’’, and
(D) by striking out the colon after ‘‘offi-
cer’’ and the proviso and inserting a period;
(2) by amending the second sentence—
(A) by striking out ‘‘, preliminary or other-
wise,’’, and
(B) by inserting ‘‘, electronically pursuant
to an authorized electronic data interchange
412
system or otherwise,’’ after ‘‘may issue a per-
mit’’;
(3) by striking out the last sentence and insert-
ing the following: ‘‘The owner or master of any ves-
sel or vehicle, or agent thereof, shall notify the Cus-
toms Service of any merchandise or baggage so un-
laden for which entry is not made within the time
prescribed by law or regulation. The Secretary shall
by regulation prescribe administrative penalties not
to exceed $1,000 for each bill of lading for which no-
tice is not given. Any such administrative penalty
shall be subject to mitigation and remittance under
section 618. Such unentered merchandise or bag-
gage shall be the responsibility of the master or per-
son in charge of the importing vessel or vehicle, or
agent thereof, until it is removed from the carrier’s
control in accordance with section 490.’’; and
(4) by striking out ‘‘the appropriate customs of-
ficer’’ and ‘‘such customs officer’’ wherever they ap-
pear and inserting ‘‘the Customs Service’’.
SEC. 657. DECLARATIONS.
Section 485 (19 U.S.C. 1485) is amended—
(1) by amending subsection (a)—
(A) by inserting ‘‘or transmit electroni-
cally’’ after ‘‘file’’, and
413
(B) by inserting ‘‘and manner’’ after
‘‘form’’;
(2) by amending subsection (d)—
(A) by striking out ‘‘A importer’’ and in-
serting ‘‘An importer’’, and
(B) by striking out ‘‘a importer’’ and in-
serting ‘‘an importer’’; and
(3) by inserting after subsection (f) the follow-
ing new subsection:
‘‘(g) EXPORTED
MERCHANDISE
RETURNED
AS
UNDELIVERABLE.—With respect to any importation of
merchandise to which General Headnote 4(e) of the Har-
monized Tariff Schedule of the United States applies, any
person who gained any benefit from, or met any obligation
to, the United States as a result of the prior exportation
of such merchandise shall, in accordance with regulations
prescribed by the Secretary, within a reasonable time in-
form the Customs Service of the return of the merchan-
dise.’’.
SEC. 658. GENERAL ORDERS.
Section 490 (19 U.S.C. 1490) is amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) INCOMPLETE ENTRY.—
‘‘(1) Whenever—
414
‘‘(A) the entry of any imported merchan-
dise is not made within the time provided by
law or by regulation prescribed by the Sec-
retary;
‘‘(B) the entry of imported merchandise is
incomplete because of failure to pay the esti-
mated duties, fees, or interest;
‘‘(C) in the opinion of the Customs Serv-
ice, the entry of imported merchandise cannot
be made for want of proper documents or other
cause; or
‘‘(D) the Customs Service believes that any
merchandise is not correctly and legally
invoiced;
the carrier (unless subject to subsection (c)) shall
notify the bonded warehouse of such unentered mer-
chandise.
‘‘(2) After notification under paragraph (1), the
bonded warehouse shall arrange for the transpor-
tation and storage of the merchandise at the risk
and expense of the consignee. The merchandise shall
remain in the bonded warehouse until—
‘‘(A) entry is made or completed and the
proper documents are produced;
415
‘‘(B) the information and data necessary
for entry are transmitted to the Customs Serv-
ice pursuant to an authorized electronic data
interchange system; or
‘‘(C) a bond is given for the production of
documents or the transmittal of data.’’;
(2) by amending subsection (b)—
(A) by amending the heading for sub-
section (b) to read as follows:
‘‘(b) REQUEST FOR POSSESSION BY CUSTOMS.—’’,
and
(B) by striking out ‘‘appropriate customs
officer’’ and inserting ‘‘Customs Service’’; and
(3) by adding at the end the following new sub-
section:
‘‘(c) GOVERNMENT MERCHANDISE.—Any imported
merchandise that—
‘‘(1) is described in any of paragraphs (1)
through (4) of subsection (a); and
‘‘(2) is consigned to, or owned by, the United
States Government;
shall be stored and disposed of in accordance with such
rules and procedures as the Secretary shall by regulation
prescribe.’’.
416
SEC. 659. UNCLAIMED MERCHANDISE.
Section 491 (19 U.S.C. 1491) is amended—
(1) by amending subsection (a)—
(A) by striking out ‘‘customs custody for
one year’’ in the first sentence and inserting ‘‘in
a bonded warehouse pursuant to section 490 for
6 months’’,
(B) by striking out ‘‘public store or bonded
warehouse for a period of one year’’ in the sec-
ond sentence and inserting ‘‘pursuant to section
490 in a bonded warehouse for 6 months’’,
(C) by striking out ‘‘estimated duties and
storage’’ in the first sentence and inserting ‘‘es-
timated duties, taxes, fees, interest, storage,’’,
(D) by inserting ‘‘taxes, fees, interest,’’
after ‘‘duties,’’ wherever it appears, and
(E) by striking out ‘‘duties’’ in the last
sentence and inserting ‘‘duties, taxes, interest,
and fees’’; and
(2) by redesignating subsection (b) as sub-
section (e) and inserting after subsection (a) the fol-
lowing new subsections:
‘‘(b) NOTICE OF TITLE VESTING IN THE UNITED
STATES.—At the end of the 6-month period referred to
in subsection (a), the Customs Service may, in lieu of sale
of the merchandise, provide notice to all known interested
417
parties that the title to such merchandise shall be consid-
ered to vest in the United States free and clear of any
liens or encumbrances, on the 30th day after the date of
the notice unless, before such 30th day—
‘‘(1) the subject merchandise is entered or with-
drawn for consumption; and
‘‘(2) payment is made of all duties, taxes, fees,
transfer and storage charges, and other expenses
that may have accrued thereon.
‘‘(c) RETENTION, TRANSFER, DESTRUCTION, OR
OTHER DISPOSITION.—If title to any merchandise vests
in the United States by operation of subsection (b), such
merchandise may be retained by the Customs Service for
official use, transferred to any other Federal agency or
to any State or local agency, destroyed, or otherwise dis-
posed of in accordance with such regulations as the Sec-
retary shall prescribe. All transfer and storage charges or
expenses accruing on retained or transferred merchandise
shall be paid by the receiving agency.
‘‘(d) PETITION.—Whenever any party, having lost a
substantial interest in merchandise by virtue of title vest-
ing in the United States under subsection (b), can estab-
lish such title or interest to the satisfaction of the Sec-
retary within 30 days after the day on which title vests
in the United States under subsection (b), or can establish
418
to the satisfaction of the Secretary that the party did not
receive notice under subsection (b), the Secretary may,
upon receipt of a timely and proper petition and upon
finding that the facts and circumstances warrant, pay
such party out of the Treasury of the United States the
amount the Secretary believes the party would have re-
ceived under section 493 had the merchandise been sold
and a proper claim filed. The decision of the Secretary
with respect to any such petition is final and conclusive
on all parties.’’; and
(3) by amending subsection (e) (as so redesig-
nated) by striking out ‘‘appropriate customs officer’’
in paragraph (3) and inserting ‘‘Customs Service’’.
SEC. 660. DESTRUCTION OF MERCHANDISE.
Section 492 (19 U.S.C. 1492) is amended—
(1) by inserting ‘‘, retained for official use, or
otherwise disposed of’’ after ‘‘destroyed’’; and
(2) by striking out ‘‘appropriate customs offi-
cer’’ and inserting ‘‘Customs Service’’.
SEC. 661. PROCEEDS OF SALE.
Section 493 (19 U.S.C. 1493) is amended—
(1) by inserting ‘‘taxes, and fees,’’ after ‘‘du-
ties,’’;
(2) by striking out ‘‘by the appropriate customs
officer’’; and
419
(3) by striking out ‘‘such customs officer’’ and
inserting ‘‘the Customs Service’’.
SEC. 662. ENTRY UNDER REGULATIONS.
Section 498(a) (19 U.S.C. 1498(a)) is amended—
(1) by amending paragraph (1) to read as fol-
lows:
‘‘(1) Merchandise, when—
‘‘(A) the aggregate value of the shipment
does not exceed an amount specified by the Sec-
retary by regulation, but not more than $2,500;
or
‘‘(B) different commercial facilitation and
risk considerations that may vary for different
classes or kinds of merchandise or different
classes of transactions may dictate;’’; and
(2) by striking out ‘‘$10,000’’ in paragraph (2)
and inserting ‘‘such amounts as the Secretary may
prescribe’’.
SEC. 663. AMERICAN TRADEMARKS.
Section 526(e)(3) (19 U.S.C. 1526(e)(3)) is amend-
ed—
(1) by striking out ‘‘1 year’’ and inserting ‘‘90
days’’; and
(2) by striking out ‘‘appropriate customs offi-
cers’’ and inserting ‘‘the Customs Service’’.
420
SEC. 664. SIMPLIFIED RECORDKEEPING FOR MERCHAN-
DISE TRANSPORTED BY PIPELINE.
Part IV of title IV is amended by inserting after sec-
tion 553 the following new section:
‘‘SEC. 553A. RECORDKEEPING FOR MERCHANDISE TRANS-
PORTED BY PIPELINE.
‘‘Merchandise in Customs custody that is transported
by pipeline may be accounted for on a quantitative basis,
based on the bill of lading, or equivalent document of re-
ceipt, issued by the pipeline carrier. Unless the Customs
Service has reasonable cause to suspect fraud, the Cus-
toms Service may accept the bill of lading, or equivalent
document of receipt, issued by the pipeline carrier to the
shipper and accepted by the consignee to maintain iden-
tity. The shipper, pipeline operator, and consignee shall
be subject to the recordkeeping requirements of sections
508 and 509.’’.
SEC. 665. ENTRY FOR WAREHOUSE.
Section 557(a) (19 U.S.C. 1557(a)) is amended—
(1) by designating the first 2 sentences of such
subsection as paragraph (1);
(2) by striking out in such paragraph (1) (as so
designated) ‘‘: Provided, That the total period of
time for which such merchandise may remain in
bonded warehouse shall not exceed 5 years from the
421
date of importation.’’ and inserting the following: ‘‘;
except that—
‘‘(A) the total period of time for which such
merchandise may remain in bonded warehouse shall
not exceed 5 years from the date of importation; and
‘‘(B) turbine fuel may be withdrawn for use
under section 309 without the payment of duty if an
amount equal to the quantity of fuel withdrawn is
shown to be used within 30 days after the day of
withdrawal, but duties (together with interest pay-
able from the date of the withdrawal at the rate of
interest established under section 6621 of title 26,
United States Code) shall be deposited by the 40th
day after the day of withdrawal on fuel that was
withdrawn in excess of the quantity shown to have
been so used during such 30-day period.’’; and
(3) by designating the remaining sentences of
such subsection as paragraph (2).
SEC. 666. CARTAGE.
The first sentence of section 565 (19 U.S.C. 1565)
is amended to read as follows: ‘‘The cartage of merchan-
dise entered for warehouse shall be done by—
‘‘(1) cartmen appointed and licensed by the
Customs Service; or
422
‘‘(2) carriers designated under section 551 to
carry bonded merchandise;
who shall give bond, in a penal sum to be fixed by the
Customs Service, for the protection of the Government
against any loss of, or damage to, the merchandise while
being so carted.’’.
SEC. 667. SEIZURE.
Section 612 (19 U.S.C. 1612) is amended—
(1) by amending subsection (a)—
(A) by striking out ‘‘the appropriate cus-
toms officer’’, ‘‘such officer’’ and ‘‘the customs
officer’’ wherever they appear and inserting
‘‘the Customs Service’’, and
(B) by striking out ‘‘the appraiser’s return
and his’’ and inserting ‘‘its’’; and
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) If the Customs Service determines that the ex-
pense of keeping the vessel, vehicle, aircraft, merchandise,
or baggage is disproportionate to the value thereof, the
Customs Service may promptly order the destruction or
other appropriate disposition of such property under regu-
lations prescribed by the Secretary. No customs officer
shall be liable for the destruction or other disposition of
property made pursuant to this section.’’.
423
SEC. 668. LIMITATION ON ACTIONS.
Section 621 (19 U.S.C. 1621) is amended—
(1) by inserting ‘‘any duty under section
592(d), 593A(d), or’’ before ‘‘any pecuniary pen-
alty’’; and
(2) by striking out ‘‘discovered:’’ and all that
follows 
thereafter 
and 
inserting 
the 
follow-
ing: ‘‘discovered; except that—
‘‘(1) in the case of an alleged violation of sec-
tion 592 or 593A, no suit or action (including a suit
or action for restoration of lawful duties under sub-
section (d) of such sections) may be instituted unless
commenced within 5 years after the date of the al-
leged violation or, if such violation arises out of
fraud, within 5 years after the date of discovery of
fraud, and
‘‘(2) the time of the absence from the United
States of the person subject to the penalty or forfeit-
ure, or of any concealment or absence of the prop-
erty, shall not be reckoned within the 5-year period
of limitation.’’.
SEC. 669. COLLECTION OF FEES ON BEHALF OF OTHER
AGENCIES.
The Tariff Act of 1930 is amended by inserting after
section 528 the following new section:
424
‘‘SEC. 529. COLLECTION OF FEES ON BEHALF OF OTHER
AGENCIES.
‘‘The Customs Service shall be reimbursed from the
fees collected for the cost and expense, administrative and
otherwise, incurred in collecting any fees on behalf of any
government agency for any reason.’’.
SEC. 670. AUTHORITY TO SETTLE CLAIMS.
The Tariff Act of 1930 is amended by inserting after
section 629 the following new section:
‘‘SEC. 630. AUTHORITY TO SETTLE CLAIMS.
‘‘(a) IN GENERAL.—With respect to a claim that can-
not be settled under chapter 171 of title 28, United States
Code, the Secretary may settle, for not more than $50,000
in any one case, a claim for damage to, or loss of, privately
owned property caused by an investigative or law enforce-
ment officer (as defined in section 2680(h) of title 28,
United States Code) who is employed by the Customs
Service and acting within the scope of his or her employ-
ment.
‘‘(b) LIMITATIONS.—The Secretary may not pay a
claim under subsection (a) that—
‘‘(1) concerns commercial property;
‘‘(2) is presented to the Secretary more than 1
year after it occurs; or
425
‘‘(3) is presented by an officer or employee of
the United States Government and arose within the
scope of employment.
‘‘(c) FINAL SETTLEMENT.—A claim may be paid
under this section only if the claimant accepts the amount
of settlement in complete satisfaction of the claim.’’.
SEC. 671. USE OF PRIVATE COLLECTION AGENCIES.
The Tariff Act of 1930 is amended by inserting after
section 630 the following new section:
‘‘SEC. 631. USE OF PRIVATE COLLECTION AGENCIES.
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, the Secretary, under such terms and condi-
tions as the Secretary considers appropriate, shall enter
into contracts and incur obligations with one or more per-
sons for collection services to recover indebtedness arising
under the customs laws and owed the United States Gov-
ernment, but only after the Customs Service has ex-
hausted all administrative efforts, including all claims
against applicable surety bonds, to collect the indebted-
ness.
‘‘(b) CONTRACT REQUIREMENTS.—Any contract en-
tered into under subsection (a) shall provide that—
‘‘(1) the Secretary retains the authority to re-
solve a dispute, compromise a claim, end collection
426
action, and refer a matter to the Attorney General
to bring a civil action; and
‘‘(2) the person is subject to—
‘‘(A) section 552a of title 5, United States
Code, to the extent provided in subsection (m)
of such section; and
‘‘(B) laws and regulations of the United
States Government and State governments re-
lated to debt collection practices.’’.
Subtitle D—Miscellaneous Provi-
sions and Consequential and
Conforming 
Amendments 
to
Other Laws
SEC. 681. AMENDMENTS TO THE HARMONIZED TARIFF
SCHEDULE.
(a) RETURN SHIPMENTS.—General Note 4 of the
Harmonized Tariff Schedule of the United States is
amended—
(1) by striking out ‘‘and’’ at the end of subdivi-
sion (c);
(2) by inserting ‘‘and’’ after ‘‘1930,’’ in subdivi-
sion (d);
(3) by inserting after subdivision (d) the
following: