H. R. 3450—150
(B) by striking out ‘‘of the examination packages or
quantities of merchandise’’,
(C) by striking out ‘‘the appraiser’s stores’’ and insert-
ing ‘‘the Customs Service’’, and
(D) by inserting ‘‘or entry’’ after ‘‘invoice’’, and
(3) by amending paragraph (2)—
(A) by inserting ‘‘, electronically or otherwise,’’ 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 appraisement
or the classification of any imported merchandise or regarding
the duties, fees, and taxes charged thereon,
‘‘(2) the collection of any dues, charges, duties, fees, and
taxes on or on account of any imported merchandise, or
‘‘(3) any other matter or thing as to which any person
might under this Act be entitled to protest or appeal from
the decision of such officer.’’.
SEC. 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 con-
tained therein,’’ after ‘‘entry,’’ in paragraph (5),
(C) by striking out ‘‘and’’ and inserting ‘‘or’’ at the
end of paragraph (6),
(D) by striking out the comma at the end of paragraph
(7) and inserting a semicolon, and
(E) by striking out ‘‘appropriate customs officer, who’’
in the text following paragraph (7) and inserting ‘‘Customs
Service, which’’;
(2) by amending subsection (b) by striking out ‘‘appropriate
customs officer’’ and inserting ‘‘Customs 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 pursu-
ant to an electronic 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 there-
for; and
‘‘(D) any other matter required by the Secretary by
regulation.’’;
(4) by redesignating paragraph (2) of subsection (c) as
paragraph (3) and by striking out ‘‘such customs officer’’ in
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H. R. 3450—151
such redesignated paragraph and inserting ‘‘the Customs Serv-
ice’’;
(5) by designating the last sentence of paragraph (1) of
subsection (c) as paragraph (2);
(6) by striking out ‘‘customs officer’’ in subsection (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 para-
graphs (1) and (4) of subsection (a); and
(2) by amending subsection (c)—
(A) by striking out ‘‘appropriate customs officer’’ wher-
ever it appears and inserting ‘‘Customs Service’’,
(B) by inserting ‘‘or reconciliation’’ after ‘‘reliquidate
an entry’’, and
(C) by inserting ‘‘, whether or not resulting from or
contained in electronic transmission,’’ 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 authorized 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 electronic 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, invoices, bills, or parts thereof, intended to be filed
with the Customs Service in furtherance of such activities,
whether or not signed or filed by the preparer, or activities
relating to such preparation, but does not include the mere
electronic transmission of data received for transmission to
Customs.’’;
(2) by amending subsection (c)(1) to read as follows:
‘‘(1) IN GENERAL.—Each person granted a customs 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 prescribes by regulation.
‘‘(B) A permit for each customs district in which that
person conducts customs business and, except as provided
in paragraph (2), regularly employs at least 1 individual
who is licensed under subsection (b)(2) to exercise respon-
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H. R. 3450—152
sible supervision and control over the customs 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.—Notwithstanding sub-
section (c)(1), upon the implementation by the Secretary under
section 413(b)(2) of the component of the National Customs
Automation Program referred to in section 411(a)(2)(B), a
licensed broker may appoint another licensed broker holding
a permit in a customs district to act on its behalf as its subagent
in that district if such activity relates 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 inserting ‘‘30 days’’
in the third sentence,
(D) by striking out ‘‘the appropriate customs officer
and the customs broker; they’’ and inserting ‘‘the Customs
Service and the customs broker; which’’ in the sixth sen-
tence,
(E) by striking out ‘‘his’’ and inserting ‘‘the’’ in the
seventh sentence, and
(F) by striking out ‘‘for his decision’’ and inserting
‘‘for the decision’’ in the eighth sentence; 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 purposes of this subsection or any other provision of this
Act pertaining to recordkeeping, all data required to be retained
by a customs broker may be kept on microfilm, optical disc,
magnetic tapes, disks or drums, video files or any other elec-
trically generated 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 busi-
ness system.’’.
SEC. 649. CONFORMING AMENDMENTS.
(a) PLACE OF ENTRY AND UNLADING.—Section 447 (19 U.S.C.
1447) is amended by striking out ‘‘the appropriate customs officer
shall consider’’ and inserting ‘‘the Customs Service considers’’.
(b) UNLADING.—Section 449 (19 U.S.C. 1449) is amended by
striking out ‘‘appropriate customs officer of such port issues a
permit for the unlading of such merchandise or baggage,’’ and
inserting ‘‘Customs Service issues a permit for the unlading of
such merchandise or baggage at such port,’’.
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H. R. 3450—153
Subtitle C—Miscellaneous Amendments 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 Secretary 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 thereof;
(2) by amending subsection (a)(2)—
(A) by striking out ‘‘shall not exceed—’’ and inserting
‘‘shall not exceed an amount specified by the Secretary
by regulation, but not less than—’’,
(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 insert-
ing ‘‘$200’’, and
(E) by striking the period at the end thereof and insert-
ing ‘‘; and’’, and
(3) by inserting a new paragraph (3) at the end of sub-
section (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 regulation.’’; 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)—
(A) by striking out ‘‘or’’ at the end of subparagraph
(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 hovering 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 Serv-
ice such information, data,’’; and
(3) by amending subsection (e) to read as follows:
‘‘(e) PROHIBITION
ON DEPARTURES
AND DISCHARGE.—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 regulations prescribed by the Secretary—
‘‘(1) depart from the port, place, or airport of arrival; or
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H. R. 3450—154
‘‘(2) discharge any passenger or merchandise (including
baggage).’’.
SEC. 653. ENTRY OF VESSELS.
Section 434 (19 U.S.C. 1434) is 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 terri-
torial 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 preliminary entry, the Customs Service
shall board a sufficient number of vessels to ensure compliance
with the laws it enforces.
‘‘(c) REGULATIONS.—The Secretary may by regulation—
‘‘(1) prescribe the manner and format in which entry under
subsection (a) or subsection (b), or both, must be made, and
such regulations may provide 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 arrival, but in no case
more than 48 hours after arrival, and
‘‘(B) formal entry may be made before arrival; 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 PAPERS.
Section 438 (19 U.S.C. 1438) is amended—
(1) by striking out ‘‘section 435’’ and inserting ‘‘section
434’’;
(2) by inserting ‘‘, or regulations issued thereunder,’’ after
‘‘of this Act’’; and
(3) by striking out ‘‘the appropriate customs officer of the
port where such vessel has been entered.’’ 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
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