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(ii) otherwise meets the requirements 
described in subparagraph (B). 
(B) REQUIREMENTS.—A duty suspension or 
reduction meets the requirements described in 
this subparagraph if— 
(i) the duty suspension or reduction 
can be administered by U.S. Customs and 
Border Protection; 
(ii) the estimated loss in revenue to the 
United States from the duty suspension or 
reduction does not exceed $500,000 in a cal-
endar year during which the duty suspen-
sion or reduction would be in effect, as de-
termined by the Congressional Budget Of-
fice; and 
(iii) the duty suspension or reduction 
is available to any person importing the ar-
ticle that is the subject of the duty suspen-
sion or reduction. 
(6) MEMBER OF CONGRESS.—The term ‘‘Member 
of Congress’’ means a Senator or a Representative in, 
or Delegate or Resident Commissioner to, Congress. 
(7) MISCELLANEOUS
TARIFF
BILL.—The term 
‘‘miscellaneous tariff bill’’ means a bill of either 
House of Congress that contains only—
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(A) duty suspensions and reductions that— 
(i) meet the applicable requirements 
for— 
(I) consideration of duty suspen-
sions and reductions described in sec-
tion 803; or 
(II) any other process required 
under the Rules of the House of Rep-
resentatives or the Senate; and 
(ii) are not the subject of an objection 
because such duty suspensions and reduc-
tions do not comply with the requirements 
of this title from— 
(I) a Member of Congress; or 
(II) a domestic producer, as con-
tained in comments submitted to the 
appropriate congressional committees, 
the Commission, or the Department of 
Commerce under section 803; and 
(B) provisions included in bills introduced 
in the House of Representatives or the Senate 
pursuant to a process described in subparagraph 
(A)(i)(II) that correct an error in the text or ad-
ministration of a provision of the Harmonized 
Tariff Schedule of the United States.
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† HR 644 EAS 
TITLE IX—MISCELLANEOUS 
PROVISIONS 
SEC. 901. DE MINIMIS VALUE. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Modernizing international customs is critical 
for United States businesses of all sizes, consumers in 
the United States, and the economic growth of the 
United States. 
(2) Higher thresholds for the value of articles 
that may be entered informally and free of duty pro-
vide significant economic benefits to businesses and 
consumers in the United States and the economy of 
the United States through costs savings and reduc-
tions in trade transaction costs. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that the United States Trade Representative should encour-
age other countries, through bilateral, regional, and multi-
lateral fora, to establish commercially meaningful de mini-
mis values for express and postal shipments that are exempt 
from customs duties and taxes and from certain entry docu-
mentation requirements, as appropriate. 
(c) 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’’.
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† HR 644 EAS 
(d) EFFECTIVE DATE.—The amendment made by sub-
section (c) 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,’’. 
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:
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† HR 644 EAS 
‘‘(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)’’. 
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:
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‘‘(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 
‘‘(B) the term ‘inventory management method’ 
means any method for managing inventory that is 
based on generally accepted accounting principles.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection applies to articles classifiable under 
subheading 9802.00.40 or 9802.00.50 of the Har-
monized Tariff Schedule of the United States that are 
entered, or withdrawn from warehouse for consump-
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† HR 644 EAS 
tion, on or after the date that is 60 days after the 
date of the enactment of this Act. 
(b) MODIFICATION OF PROVISIONS RELATING TO RE-
TURNED PROPERTY.— 
(1) IN
GENERAL.—The article description for 
heading 9801.00.10 of the Harmonized Tariff Sched-
ule of the United States is amended by inserting after 
‘‘exported’’ the following: ‘‘, or any other products 
when returned within 3 years after having been ex-
ported’’. 
(2) EFFECTIVE DATE.—The amendment made by 
paragraph (1) applies to articles entered, or with-
drawn from warehouse for consumption, on or after 
the date that is 60 days after the date of the enact-
ment of this Act. 
(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:
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† HR 644 EAS 
‘‘ 
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; 
(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
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† HR 644 EAS 
(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 responsible for U.S. 
Customs and Border Protection designates as instru-
ments 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
192 
† HR 644 EAS 
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’’; 
(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’’;
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† HR 644 EAS 
(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 inserting ‘‘or articles classifiable under 
the same 8-digit HTS subheading number as such ar-
ticles,’’ after ‘‘any such articles,’’; 
(6) 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 
(7) 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-
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
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† HR 644 EAS 
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 or an ar-
ticle classifiable under the same 8-digit HTS 
subheading number as that article, directly or 
indirectly, from the manufacturer or producer. 
‘‘(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-
ported merchandise or other merchandise classifi-
able under the same 8-digit HTS subheading 
number as such imported merchandise only if
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† HR 644 EAS 
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-
facture or production of an article as de-
scribed in paragraph (1); and
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† HR 644 EAS 
‘‘(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)— 
(i) by striking ‘‘3’’ and inserting ‘‘5’’; 
and
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† HR 644 EAS 
(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: 
‘‘(i) PROOF OF EXPORTATION.—A person claiming 
drawback under this section based on the exportation of an
198 
† HR 644 EAS 
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 responsible for U.S. Customs and Border Pro-
tection.’’. 
(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-
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† HR 644 EAS 
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’’; 
(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
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† HR 644 EAS 
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);’’; and 
(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
201 
† HR 644 EAS 
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.’’; 
(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
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† HR 644 EAS 
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.
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† HR 644 EAS 
‘‘(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
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† HR 644 EAS 
Act of 2015 (or, if later, the effective date pro-
vided for in section 906(q)(2)(B) of that Act), the 
Secretary shall prescribe regulations for deter-
mining the calculation of amounts refunded as 
drawback under this section. 
‘‘(B) REQUIREMENTS.—The regulations re-
quired by subparagraph (A) for determining the 
calculation of amounts refunded as drawback 
under this section shall provide for a refund of 
99 percent of the duties, taxes, and fees paid 
with respect to the imported merchandise, except 
that where there is substitution of the merchan-
dise or article, then— 
‘‘(i) in the case of an article that is ex-
ported, the amount of the refund shall be 
equal to 99 percent of the lesser of— 
‘‘(I) the amount of duties, taxes, 
and fees paid with respect to the im-
ported merchandise; or 
‘‘(II) the amount of duties, taxes, 
and fees that would apply to the ex-
ported article if the exported article 
were imported; and
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† HR 644 EAS 
‘‘(ii) in the case of an article that is 
destroyed, the amount of the refund shall be 
an amount that is— 
‘‘(I) equal to 99 percent of the 
lesser of— 
‘‘(aa) the amount of duties, 
taxes, and fees paid with respect 
to the imported merchandise; and 
‘‘(bb) the amount of duties, 
taxes, and fees that would apply 
to the destroyed article if the de-
stroyed article were imported; and 
‘‘(II) reduced by the value of ma-
terials recovered during destruction as 
provided in subsection (x). 
‘‘(3) STATUS REPORTS ON REGULATIONS.—Not 
later than the date that is one year after the date of 
the enactment of the Trade Facilitation and Trade 
Enforcement Act of 2015, and annually thereafter 
until the regulations required by paragraph (2) are 
final, the Secretary shall submit to Congress a report 
on the status of those regulations.’’. 
(h) SUBSTITUTION OF FINISHED PETROLEUM DERIVA-
TIVES.—Section 313(p) of the Tariff Act of 1930 (19 U.S.C. 
1313(p)) is amended—
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† HR 644 EAS 
(1) by striking ‘‘Harmonized Tariff Schedule of 
the United States’’ each place it appears and insert-
ing ‘‘HTS’’; and 
(2) in paragraph (3)(A)— 
(A) in clause (ii)(III), by striking ‘‘, as so 
certified in a certificate of delivery or certificate 
of manufacture and delivery’’; and 
(B) in the flush text at the end— 
(i) by striking ‘‘, as so designated on 
the certificate of delivery or certificate of 
manufacture and delivery’’; and 
(ii) by striking the last sentence and 
inserting the following: ‘‘The party transfer-
ring the merchandise shall maintain records 
kept in the normal course of business to 
demonstrate the transfer.’’. 
(i) PACKAGING MATERIAL.—Section 313(q) of the Tar-
iff Act of 1930 (19 U.S.C. 1313(q)) is amended— 
(1) in paragraph (1), by striking ‘‘of 99 percent 
of any duty, tax, or fee imposed under Federal law 
on such imported material’’ and inserting ‘‘in an 
amount calculated pursuant to regulations prescribed 
by the Secretary of the Treasury under subsection 
(l)’’;
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† HR 644 EAS 
(2) in paragraph (2), by striking ‘‘of 99 percent 
of any duty, tax, or fee imposed under Federal law 
on the imported or substituted merchandise used to 
manufacture or produce such material’’ and inserting 
‘‘in an amount calculated pursuant to regulations 
prescribed by the Secretary of the Treasury under 
subsection (l)’’; and 
(3) in paragraph (3), by striking ‘‘they contain’’ 
and inserting ‘‘it contains’’. 
(j) FILING OF DRAWBACK CLAIMS.—Section 313(r) of 
the Tariff Act of 1930 (19 U.S.C. 1313(r)) is amended— 
(1) in paragraph (1)— 
(A) by striking the first sentence and insert-
ing the following: ‘‘A drawback entry shall be 
filed or applied for, as applicable, not later than 
5 years after the date on which merchandise on 
which drawback is claimed was imported.’’; 
(B) in the second sentence, by striking ‘‘3- 
year’’ and inserting ‘‘5-year’’; and 
(C) in the third sentence, by striking ‘‘the 
Customs Service’’ and inserting ‘‘U.S. Customs 
and Border Protection’’; 
(2) in paragraph (3)— 
(A) in subparagraph (A)—
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† HR 644 EAS 
(i) in the matter preceding clause (i), 
by striking ‘‘The Customs Service’’ and in-
serting ‘‘U.S. Customs and Border Protec-
tion’’; 
(ii) in clauses (i) and (ii), by striking 
‘‘the Customs Service’’ each place it appears 
and inserting ‘‘U.S. Customs and Border 
Protection’’; and 
(iii) in clause (ii)(I), by striking ‘‘3- 
year’’ and inserting ‘‘5-year’’; and 
(B) in subparagraph (B), by striking ‘‘the 
periods of time for retaining records set forth in 
subsection (t) of this section and’’ and inserting 
‘‘the period of time for retaining records set forth 
in’’; and 
(3) by adding at the end the following: 
‘‘(4) All drawback claims filed on and after the 
date that is 2 years after the date of the enactment 
of the Trade Facilitation and Trade Enforcement Act 
of 2015 (or, if later, the effective date provided for in 
section 906(q)(2)(B) of that Act) shall be filed elec-
tronically.’’. 
(k) DESIGNATION OF MERCHANDISE BY SUCCESSOR.— 
Section 313(s) of the Tariff Act of 1930 (19 U.S.C. 1313(s)) 
is amended—
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(1) in paragraph (2), by striking subparagraph 
(B) and inserting the following: 
‘‘(B) subject to paragraphs (5) and (6) of 
subsection (j), imported merchandise, other mer-
chandise classifiable under the same 8-digit HTS 
subheading number as such imported merchan-
dise, or any combination of such imported mer-
chandise and such other merchandise, that the 
predecessor received, before the date of succession, 
from the person who imported and paid any du-
ties, taxes, and fees due on the imported mer-
chandise;’’; and 
(2) in paragraph (4), by striking ‘‘certifies that’’ 
and all that follows and inserting ‘‘certifies that the 
transferred merchandise was not and will not be 
claimed by the predecessor.’’. 
(l) DRAWBACK CERTIFICATES.—Section 313 of the 
Tariff Act of 1930 (19 U.S.C. 1313) is amended by striking 
subsection (t). 
(m) DRAWBACK FOR RECOVERED MATERIALS.—Sec-
tion 313(x) of the Tariff Act of 1930 (19 U.S.C. 1313(x)) 
is amended by striking ‘‘and (c)’’ and inserting ‘‘(c), and 
(j)’’.
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(n) DEFINITIONS.—Section 313 of the Tariff Act of 
1930 (19 U.S.C. 1313) is amended by adding at the end 
the following: 
‘‘(z) DEFINITIONS.—In this section: 
‘‘(1) DIRECTLY.—The term ‘directly’ means a 
transfer of merchandise or an article from one person 
to another person without any intermediate transfer. 
‘‘(2) HTS.—The term ‘HTS’ means the Har-
monized Tariff Schedule of the United States. 
‘‘(3) INDIRECTLY.—The term ‘indirectly’ means 
a transfer of merchandise or an article from one per-
son to another person with one or more intermediate 
transfers.’’. 
(o) RECORDKEEPING.—Section 508(c)(3) of the Tariff 
Act of 1930 (19 U.S.C. 1508(c)(3)) is amended— 
(1) by striking ‘‘3rd’’ and inserting ‘‘5th’’; and 
(2) by striking ‘‘payment’’ and inserting ‘‘liq-
uidation’’. 
(p) GOVERNMENT
ACCOUNTABILITY
OFFICE
RE-
PORT.— 
(1) IN GENERAL.—Not later than one year after 
the issuance of the regulations required by subsection 
(l)(2) of section 313 of the Tariff Act of 1930, as 
added by subsection (g), the Comptroller General of 
the United States shall submit to the Committee on
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Finance of the Senate and the Committee on Ways 
and Means of the House of Representatives a report 
on the modernization of drawback and refunds under 
section 313 of the Tariff Act of 1930, as amended by 
this section. 
(2) CONTENTS.—The report required by para-
graph (1) include the following: 
(A) An assessment of the modernization of 
drawback and refunds under section 313 of the 
Tariff Act of 1930, as amended by this section. 
(B) A description of drawback claims that 
were permissible before the effective date provided 
for in subsection (q) that are not permissible 
after that effective date and an identification of 
industries most affected. 
(C) A description of drawback claims that 
were not permissible before the effective date pro-
vided for in subsection (q) that are permissible 
after that effective date and an identification of 
industries most affected. 
(q) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall— 
(A) take effect on the date of the enactment 
of this Act; and
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(B) except as provided in paragraphs 
(2)(B) and (3), apply to drawback claims filed 
on or after the date that is 2 years after such 
date of enactment. 
(2) REPORTING OF OPERABILITY OF AUTOMATED 
COMMERCIAL ENVIRONMENT COMPUTER SYSTEM.— 
(A) IN GENERAL.—Not later than one year 
after the date of the enactment of this Act, and 
not later than 2 years after such date of enact-
ment, the Secretary of the Treasury shall submit 
to Congress a report on— 
(i) the date on which the Automated 
Commercial Environment will be ready to 
process drawback claims; and 
(ii) the date on which the Automated 
Export System will be ready to accept proof 
of exportation under subsection (i) of sec-
tion 313 of the Tariff Act of 1930, as 
amended by subsection (d). 
(B) DELAY
OF
EFFECTIVE
DATE.—If the 
Secretary indicates in the report required by 
subparagraph (A) that the Automated Commer-
cial Environment will not be ready to process 
drawback claims by the date that is 2 years after 
the date of the enactment of this Act, the amend-
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ments made by this section shall apply to draw-
back claims filed on and after the date on which 
the Secretary certifies that the Automated Com-
mercial Environment is ready to process draw-
back claims. 
(3) TRANSITION RULE.—During the one-year pe-
riod beginning on the date that is 2 years after the 
date of the enactment of this Act (or, if later, the ef-
fective date provided for in paragraph (2)(B)), a per-
son may elect to file a claim for drawback under— 
(A) section 313 of the Tariff Act of 1930, as 
amended by this section; or 
(B) section 313 of the Tariff Act of 1930, as 
in effect on the day before the date of the enact-
ment of this Act. 
SEC. 907. INCLUSION OF CERTAIN INFORMATION IN SUB-
MISSION OF NOMINATION FOR APPOINTMENT 
AS DEPUTY UNITED STATES TRADE REP-
RESENTATIVE. 
Section 141(b) of the Trade Act of 1974 (19 U.S.C. 
2171(b)) is amended by adding at the end the following: 
‘‘(5) When the President submits to the Senate for its 
advice and consent a nomination of an individual for ap-
pointment as a Deputy United States Trade Representative 
under paragraph (2), the President shall include in that
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submission information on the country, regional offices, 
and functions of the Office of the United States Trade Rep-
resentative with respect to which that individual will have 
responsibility.’’. 
SEC. 908. BIENNIAL REPORTS REGARDING COMPETITIVE-
NESS ISSUES FACING THE UNITED STATES 
ECONOMY AND COMPETITIVE CONDITIONS 
FOR CERTAIN KEY UNITED STATES INDUS-
TRIES. 
(a) IN GENERAL.—The United States International 
Trade Commission shall conduct a series of investigations, 
and submit a report on each such investigation in accord-
ance with subsection (c), regarding competitiveness issues 
facing the economy of the United States and competitive 
conditions for certain key United States industries. 
(b) CONTENTS OF REPORT.— 
(1) IN GENERAL.—Each report required by sub-
section (a) shall include, to the extent practicable, the 
following: 
(A) A detailed assessment of competitiveness 
issues facing the economy of the United States, 
over the 10-year period beginning on the date on 
which the report is submitted, that includes— 
(i) projections, over that 10-year pe-
riod, of economic measures, such as meas-
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ures relating to production in the United 
States and United States trade, for the 
economy of the United States and for key 
United States industries, based on ongoing 
trends in the economy of the United States 
and global economies and incorporating es-
timates from prominent United States, for-
eign, multinational, and private sector or-
ganizations; and 
(ii) a description of factors that drive 
economic growth, such as domestic produc-
tivity, the United States workforce, foreign 
demand for United States goods and serv-
ices, and industry-specific developments. 
(B) A detailed assessment of a key United 
States industry or key United States industries 
that, to the extent practicable— 
(i) identifies with respect to each such 
industry the principal factors driving com-
petitiveness as of the date on which the re-
port is submitted; and 
(ii) describes, with respect to each such 
industry, the structure of the global indus-
try, its market characteristics, current in-
dustry trends, relevant policies and pro-
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grams of foreign governments, and prin-
cipal factors affecting future competitive-
ness. 
(2) SELECTION OF KEY UNITED STATES INDUS-
TRIES.— 
(A) IN
GENERAL.—In conducting assess-
ments required under paragraph (1)(B), the 
Commission shall, to the extent practicable, select 
a different key United States industry or dif-
ferent key United States industries for purposes 
of each report required by subsection (a). 
(B) CONSULTATIONS WITH CONGRESS.—The 
Commission shall consult with the Committee on 
Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives 
before selecting the key United States industry or 
key United States industries for purposes of each 
report required by subsection (a). 
(c) SUBMISSION OF REPORTS.— 
(1) IN GENERAL.—Not later than May 15, 2017, 
and every 2 years thereafter through 2025, the Com-
mission shall submit to the Committee on Finance of 
the Senate and the Committee on Ways and Means of 
the House of Representatives a report on the most re-
cent investigation conducted under subsection (a).
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(2) EXTENSION OF DEADLINE.—The Commission 
may, after consultation with the Committee on Fi-
nance of the Senate and the Committee on Ways and 
Means of the House of Representatives, submit a re-
port under paragraph (1) later than the date required 
by that paragraph. 
(3) CONFIDENTIAL BUSINESS INFORMATION.—A 
report submitted under paragraph (1) shall not in-
clude any confidential business information unless— 
(A) the party that submitted the confiden-
tial business information to the Commission had 
notice, at the time of submission, that the infor-
mation would be released by the Commission; or 
(B) that party consents to the release of the 
information. 
(d) KEY UNITED STATES INDUSTRY DEFINED.—In 
this section, the term ‘‘key United States industry’’ means 
a goods or services industry that— 
(1) contributes significantly to United States 
economic activity and trade; or 
(2) is a potential growth area for the United 
States and global markets.
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SEC. 909. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER 
PROTECTION AGREEMENTS. 
(a) IN GENERAL.—Not later than one year after enter-
ing into an agreement under a program specified in sub-
section (b), and annually thereafter until the termination 
of the program, the Commissioner shall submit to the Com-
mittee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives a report 
that includes the following: 
(1) A description of the development of the pro-
gram. 
(2) A description of the type of entity with which 
U.S. Customs and Border Protection entered into the 
agreement and the amount that entity reimbursed 
U.S. Customs and Border Protection under the agree-
ment. 
(3) An identification of the type of port of entry 
to which the agreement relates and an assessment of 
how the agreement provides economic benefits at the 
port of entry. 
(4) A description of the services provided by U.S. 
Customs and Border Protection under the agreement 
during the year preceding the submission of the re-
port. 
(5) The amount of fees collected under the agree-
ment during that year.