(d) SUBMISSION OF OUT-YEAR BUDGET PROJEC-
TIONS.—Section 301(a) of the Customs Procedural Re-
form and Simplification Act of 1978 (19 U.S.C. 2075(a))
is amended by adding at the end the following:
‘‘(3) By not later than the date on which the Presi-
dent submits to Congress the budget of the United States
Government for a fiscal year, the Commissioner of Cus-
toms shall submit to the Committee on Ways and Means
of the House of Representatives and the Committee on
Finance of the Senate the projected amount of funds for
the succeeding fiscal year that will be necessary for the
operations of the Customs Service as provided for in sub-
section (b).’’.
SEC. 102. ANTITERRORIST AND ILLICIT NARCOTICS DETEC-
TION EQUIPMENT FOR THE UNITED STATES-
MEXICO BORDER, UNITED STATES-CANADA
BORDER, 
AND 
FLORIDA 
AND 
THE 
GULF
COAST SEAPORTS.
(a) FISCAL YEAR 2002.—Of the amounts made avail-
able for fiscal year 2002 under section 301(b)(1)(A) of
the Customs Procedural Reform and Simplification Act of
1978 (19 U.S.C. 2075(b)(1)(A)), as amended by section
101(a) of this Act, $90,244,000 shall be available until
expended for acquisition and other expenses associated
with implementation and deployment of antiterrorist and
illicit narcotics detection equipment along the United
States-Mexico border, the United States-Canada border,
and Florida and the Gulf Coast seaports, as follows:
(1) UNITED STATES-MEXICO BORDER.—For the
United States-Mexico border, the following:
(A) $6,000,000 for 8 Vehicle and Con-
tainer Inspection Systems (VACIS).
(B) $11,200,000 for 5 mobile truck x-rays
with transmission and backscatter imaging.
(C) $13,000,000 for the upgrade of 8
fixed-site truck x-rays from the present energy
level of 450,000 electron volts to 1,000,000
electron volts (1–MeV).
(D) $7,200,000 for 8 1–MeV pallet x-rays.
(E) $1,000,000 for 200 portable contra-
band detectors (busters) to be distributed
among ports where the current allocations are
inadequate.
(F) $600,000 for 50 contraband detection
kits to be distributed among all southwest bor-
der ports based on traffic volume.
(G) $500,000 for 25 ultrasonic container
inspection units to be distributed among all
ports receiving liquid-filled cargo and to ports
with a hazardous material inspection facility.
(H) $2,450,000 for 7 automated targeting
systems.
(I) $360,000 for 30 rapid tire deflator sys-
tems to be distributed to those ports where port
runners are a threat.
(J) $480,000 for 20 portable Treasury En-
forcement Communications Systems (TECS)
terminals to be moved among ports as needed.
(K) $1,000,000 for 20 remote watch sur-
veillance camera systems at ports where there
are suspicious activities at loading docks, vehi-
cle queues, secondary inspection lanes, or areas
where visual surveillance or observation is ob-
scured.
(L) $1,254,000 for 57 weigh-in-motion
sensors to be distributed among the ports with
the greatest volume of outbound traffic.
(M) $180,000 for 36 AM traffic informa-
tion radio stations, with 1 station to be located
at each border crossing.
(N) $1,040,000 for 260 inbound vehicle
counters to be installed at every inbound vehicle
lane.
(O) $950,000 for 38 spotter camera sys-
tems to counter the surveillance of customs in-
spection activities by persons outside the bound-
aries of ports where such surveillance activities
are occurring.
(P) $390,000 for 60 inbound commercial
truck transponders to be distributed to all ports
of entry.
(Q) $1,600,000 for 40 narcotics vapor and
particle detectors to be distributed to each bor-
der crossing.
(R) $400,000 for license plate reader auto-
matic targeting software to be installed at each
port to target inbound vehicles.
(2) UNITED STATES-CANADA BORDER.—For the
United States-Canada border, the following:
(A) $3,000,000 for 4 Vehicle and Con-
tainer Inspection Systems (VACIS).
(B) $8,800,000 for 4 mobile truck x-rays
with transmission and backscatter imaging.
(C) $3,600,000 for 4 1–MeV pallet x-rays.
(D) $250,000 for 50 portable contraband
detectors (busters) to be distributed among
ports where the current allocations are inad-
equate.
(E) $300,000 for 25 contraband detection
kits to be distributed among ports based on
traffic volume.
(F) $240,000 for 10 portable Treasury
Enforcement Communications Systems (TECS)
terminals to be moved among ports as needed.
(G) $400,000 for 10 narcotics vapor and
particle detectors to be distributed to each bor-
der crossing based on traffic volume.
(3) FLORIDA AND GULF COAST SEAPORTS.—
For Florida and the Gulf Coast seaports, the fol-
lowing:
(A) $4,500,000 for 6 Vehicle and Con-
tainer Inspection Systems (VACIS).
(B) $11,800,000 for 5 mobile truck x-rays
with transmission and backscatter imaging.
(C) $7,200,000 for 8 1–MeV pallet x-rays.
(D) $250,000 for 50 portable contraband
detectors (busters) to be distributed among
ports where the current allocations are inad-
equate.
(E) $300,000 for 25 contraband detection
kits to be distributed among ports based on
traffic volume.
(b) FISCAL YEAR 2003.—Of the amounts made avail-
able for fiscal year 2003 under section 301(b)(1)(B) of
the Customs Procedural Reform and Simplification Act of
1978 (19 U.S.C. 2075(b)(1)(B)), as amended by section
101(a) of this Act, $9,000,000 shall be available until ex-
pended for the maintenance and support of the equipment
and training of personnel to maintain and support the
equipment described in subsection (a).
(c) ACQUISITION OF TECHNOLOGICALLY SUPERIOR
EQUIPMENT; TRANSFER OF FUNDS.—
(1) IN GENERAL.—The Commissioner of Cus-
toms may use amounts made available for fiscal year
2002 under section 301(b)(1)(A) of the Customs
Procedural Reform and Simplification Act of 1978
(19 U.S.C. 2075(b)(1)(A)), as amended by section
101(a) of this Act, for the acquisition of equipment
other than the equipment described in subsection (a)
if such other equipment—
(A)(i) is technologically superior to the
equipment described in subsection (a); and
(ii) will achieve at least the same results at
a cost that is the same or less than the equip-
ment described in subsection (a); or
(B) can be obtained at a lower cost than
the equipment described in subsection (a).
(2) TRANSFER
OF
FUNDS.—Notwithstanding
any other provision of this section, the Commissioner
of Customs may reallocate an amount not to exceed
10 percent of—
(A) the amount specified in any of sub-
paragraphs (A) through (R) of subsection
(a)(1) for equipment specified in any other of
such subparagraphs (A) through (R);
(B) the amount specified in any of sub-
paragraphs (A) through (G) of subsection
(a)(2) for equipment specified in any other of
such subparagraphs (A) through (G); and
(C) the amount specified in any of sub-
paragraphs (A) through (E) of subsection
(a)(3) for equipment specified in any other of
such subparagraphs (A) through (E).
SEC. 103. COMPLIANCE WITH PERFORMANCE PLAN RE-
QUIREMENTS.
As part of the annual performance plan for each of
the fiscal years 2002 and 2003 covering each program ac-
tivity set forth in the budget of the United States Customs
Service, as required under section 1115 of title 31, United
States Code, the Commissioner of Customs shall establish
performance goals, performance indicators, and comply
with all other requirements contained in paragraphs (1)
through (6) of subsection (a) of such section with respect
to each of the activities to be carried out pursuant to sec-
tion 102.
Subtitle B—Child Cyber-Smuggling
Center of the Customs Service
SEC. 111. AUTHORIZATION OF APPROPRIATIONS FOR PRO-
GRAM TO PREVENT CHILD PORNOGRAPHY/
CHILD SEXUAL EXPLOITATION.
(a) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Customs Service
$10,000,000 for fiscal year 2002 to carry out the program
to prevent child pornography/child sexual exploitation es-
tablished by the Child Cyber-Smuggling Center of the
Customs Service.
(b) USE OF AMOUNTS FOR CHILD PORNOGRAPHY
CYBER TIPLINE.—Of the amount appropriated under sub-
section (a), the Customs Service shall provide 3.75 percent
of such amount to the National Center for Missing and
Exploited Children for the operation of the child pornog-
raphy cyber tipline of the Center and for increased public
awareness of the tipline.
Subtitle C—Miscellaneous
Provisions
SEC. 121. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR
UNITED STATES-CANADA BORDER.
Of the amount made available for fiscal year 2002
under paragraphs (1) and (2)(A) of section 301(b) of the
Customs Procedural Reform and Simplification Act of
1978 (19 U.S.C. 2075(b)), as amended by section 101 of
this Act, $28,300,000 shall be available until expended for
the Customs Service to hire approximately 285 additional
Customs Service officers to address the needs of the of-
fices and ports along the United States-Canada border.
SEC. 122. STUDY AND REPORT RELATING TO PERSONNEL
PRACTICES OF THE CUSTOMS SERVICE.
(a) STUDY.—The Commissioner of Customs shall
conduct a study of current personnel practices of the Cus-
toms Service, including an overview of performance stand-
ards and the effect and impact of the collective bargaining
process on drug interdiction efforts of the Customs Service
and a comparison of duty rotation policies of the Customs
Service and other Federal agencies that employ similarly-
situated personnel.
(b) REPORT.—Not later than 120 days after the date
of the enactment of this Act, the Commissioner of Cus-
toms shall submit to the Committee on Ways and Means
of the House of Representatives and the Committee on
Finance of the Senate a report containing the results of
the study conducted under subsection (a).
SEC. 123. STUDY AND REPORT RELATING TO ACCOUNTING
AND AUDITING PROCEDURES OF THE CUS-
TOMS SERVICE.
(a) STUDY.—(1) The Commissioner of Customs shall
conduct a study of actions by the Customs Service to en-
sure that appropriate training is being provided to Cus-
toms Service personnel who are responsible for financial
auditing of importers.
(2) In conducting the study, the Commissioner—
(A) shall specifically identify those actions
taken to comply with provisions of law that protect
the privacy and trade secrets of importers, such as
section 552(b) of title 5, United States Code, and
section 1905 of title 18, United States Code; and
(B) shall provide for public notice and comment
relating to verification of the actions described in
subparagraph (A).
(b) REPORT.—Not later than 6 months after the date
of the enactment of this Act, the Commissioner of Cus-
toms shall submit to the Committee on Ways and Means
of the House of Representatives and the Committee on
Finance of the Senate a report containing the results of
the study conducted under subsection (a).
SEC. 124. ESTABLISHMENT AND IMPLEMENTATION OF
COST ACCOUNTING SYSTEM; REPORTS.
(a) ESTABLISHMENT AND IMPLEMENTATION.—
(1) IN GENERAL.—Not later than September
30, 2003, the Commissioner of Customs shall, in ac-
cordance with the audit of the Customs Service’s fis-
cal years 2000 and 1999 financial statements (as
contained in the report of the Office of the Inspector
General of the Department of the Treasury issued
on February 23, 2001), establish and implement a
cost accounting system for expenses incurred in both
commercial and noncommercial operations of the
Customs Service.
(2) ADDITIONAL REQUIREMENT.—The cost ac-
counting system described in paragraph (1) shall
provide for an identification of expenses based on
the type of operation, the port at which the oper-
ation took place, the amount of time spent on the
operation by personnel of the Customs Service, and
an identification of expenses based on any other ap-
propriate classification necessary to provide for an
accurate and complete accounting of the expenses.
(b) REPORTS.—Beginning on the date of the enact-
ment of this Act and ending on the date on which the
cost accounting system described in subsection (a) is fully
implemented, the Commissioner of Customs shall prepare
and submit to Congress on a quarterly basis a report on
the progress of implementing the cost accounting system
pursuant to subsection (a).
SEC. 125. STUDY AND REPORT RELATING TO TIMELINESS
OF PROSPECTIVE RULINGS.
(a) STUDY.—The Comptroller General shall conduct
a study on the extent to which the Office of Regulations
and Rulings of the Customs Service has made improve-
ments to decrease the amount of time to issue prospective
rulings from the date on which a request for the ruling
is received by the Customs Service.
(b) REPORT.—Not later than 1 year after the date
of the enactment of this Act, the Comptroller General shall
submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance
of the Senate a report containing the results of the study
conducted under subsection (a).
(c) DEFINITION.—In this section, the term ‘‘prospec-
tive ruling’’ means a ruling that is requested by an im-
porter on goods that are proposed to be imported into the
United States and that relates to the proper classification,
valuation, or marking of such goods.
SEC. 126. STUDY AND REPORT RELATING TO CUSTOMS
USER FEES.
(a) STUDY.—The Comptroller General shall conduct
a study on the extent to which the amount of each customs
user fee imposed under section 13031(a) of the Consoli-
dated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(a)) is commensurate with the level of services
provided by the Customs Service relating to the fee so im-
posed.
(b) REPORT.—Not later than 120 days after the date
of the enactment of this Act, the Comptroller General shall
submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance
of the Senate a report in classified form containing—
(1) the results of the study conducted under
subsection (a); and
(2) 
recommendations 
for 
the 
appropriate
amount of the customs user fees if such results indi-
cate that the fees are not commensurate with the
level of services provided by the Customs Service.
SEC. 127. FEES FOR CUSTOMS INSPECTIONS AT EXPRESS
COURIER FACILITIES.
(a) IN GENERAL.—Section 13031(b)(9) of the Con-
solidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(b)(9)) is amended as follows:
(1) In subparagraph (A)—
(A) in the matter preceding clause (i), by
striking ‘‘the processing of merchandise that is
informally entered or released’’ and inserting
‘‘the processing of letters, documents, records,
shipments, merchandise, or any other item that
is valued at an amount under $2,000 (or such
higher amount as the Secretary may set by reg-
ulation pursuant to section 498 of the Tariff
Act of 1930), whether or not such items are in-
formally entered or released (except items en-
tered or released for immediate exportation),’’;
and
(B) in clause (ii) to read as follows:
‘‘(ii) In the case of an express consignment
carrier facility or centralized hub facility, $.66
per individual airway bill or bill of lading.’’.
(2) By redesignating subparagraph (B) as sub-
paragraph (C) and inserting after subparagraph (A)
the following:
‘‘(B)(i) For fiscal year 2004 and subsequent
fiscal years, the Secretary of the Treasury may ad-
just (not more than once per fiscal year) the amount
described in subparagraph (A)(ii) to not less than
$.35 but not more than $1.00 per individual airway
bill or bill of lading. The Secretary shall provide no-
tice in the Federal Register of a proposed adjust-
ment under the preceding sentence and the reasons
therefor and shall allow for public comment on the
proposed adjustment.
‘‘(ii) The payment required by subparagraph
(A)(ii) shall be the only payment required for reim-
bursement of the Customs Service in connection with
the processing of an individual airway bill or bill of
lading in accordance with such subparagraph, except
that the Customs Service may charge a fee to cover
expenses of the Customs Service for adequate office
space, equipment, furnishings, supplies, and secu-
rity.
‘‘(iii)(I) The payment required by subparagraph
(A)(ii) and clause (ii) shall be paid on a quarterly
basis to the Customs Service in accordance with reg-
ulations prescribed by the Secretary of the Treasury.
‘‘(II) 50 percent of the amount of payments re-
ceived under subparagraph (A)(ii) and clause (ii)
shall, in accordance with section 524 of the Tariff
Act of 1930, be deposited as a refund to the appro-
priation for the amount paid out of that appropria-
tion for the costs incurred in providing services to
express consignment carrier facilities or centralized
hub facilities. Amounts deposited in accordance with
the preceding sentence shall be available until ex-
pended for the provision of customs services to ex-
press consignment carrier facilities or centralized
hub facilities.
‘‘(III) Notwithstanding section 524 of the Tar-
iff Act of 1930, the remaining 50 percent of the
amount of payments received under subparagraph
(A)(ii) and clause (ii) shall be paid to the Secretary
of the Treasury, which is in lieu of the payment of
fees under subsection (a)(10) of this section.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) take effect on October 1, 2002.
SEC. 128. NATIONAL CUSTOMS AUTOMATION PROGRAM.
Section 411(b) of the Tariff Act of 1930 (19 U.S.C.
1411(b)) is amended by striking the second sentence and
inserting the following: ‘‘The Secretary may, by regula-
tion, require the electronic submission of information de-
scribed in subsection (a) or any other information required
to be submitted to the Customs Service separately pursu-
ant to this subpart.’’.
SEC. 129. PAYMENT OF DUTIES AND FEES.
Section 505(a) of the Tariff Act of 1930 (19 U.S.C.
1505(a)) is amended—
(1) in the first sentence—
(A) by striking ‘‘Unless the merchandise’’
and inserting ‘‘Unless the entry of merchandise
is electronically filed utilizing the Customs
Automated Commercial Environment computer
system, or the merchandise’’; and
(B) by inserting after ‘‘by regulation’’ the
following: ‘‘(but not to exceed 10 working days
after entry or release, whichever occurs first)’’;
and
(2) by striking the second and third sentences
and inserting the following: ‘‘If the entry of mer-
chandise is electronically filed utilizing the Customs
Automated Commercial Environment computer sys-
tem, the importer of record shall deposit estimated
duties and fees for the entry of merchandise no later
than the 15th day of the month following the month
in which the merchandise is entered or released,
whichever occurs first.’’.
Subtitle D—Antiterrorism
Provisions
SEC. 141. IMMUNITY FOR UNITED STATES OFFICIALS THAT
ACT IN GOOD FAITH.
(a) IMMUNITY.—Section 3061 of the Revised Stat-
utes (19 U.S.C. 482) is amended—
(1) by striking ‘‘Any of the officers’’ and insert-
ing ‘‘(a) Any of the officers’’; and
(2) by adding at the end the following:
‘‘(b) Any officer or employee of the United States
conducting a search of a person pursuant to subsection
(a) shall not be held liable for any civil damages as a result
of such search if the officer or employee performed the
search in good faith.’’.
(b) REQUIREMENT TO POST POLICY AND PROCE-
DURES FOR SEARCHES OF PASSENGERS.—Not later than
30 days after the date of the enactment of this Act, the
Commissioner of the Customs Service shall ensure that at
each Customs border facility appropriate notice is posted
that provides a summary of the policy and procedures of
the Customs Service for searching passengers, including
a statement of the policy relating to the prohibition on
the conduct of profiling of passengers based on gender,
race, color, religion, or ethnic background.
SEC. 142. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS
OF ENTRY, OR STAFFING OF THE CUSTOMS
SERVICE.
Section 318 of the Tariff Act of 1930 (19 U.S.C.
1318) is amended—
(1) by striking ‘‘Whenever the President’’ and
inserting ‘‘(a) Whenever the President’’; and
(2) by adding at the end the following:
‘‘(b)(1) Notwithstanding any other provision of law,
the Secretary of the Treasury, when necessary to respond
to a national emergency declared under the National
Emergencies Act (50 U.S.C. 1601 et seq.) or to a specific
threat to human life or national interests, is authorized
to take the following actions on a temporary basis:
‘‘(A) Eliminate, consolidate, or relocate any of-
fice or port of entry of the Customs Service.
‘‘(B) Modify hours of service, alter services ren-
dered at any location, or reduce the number of em-
ployees at any location.
‘‘(C) Take any other action that may be nec-
essary to directly respond to the national emergency
or specific threat.
‘‘(2) Notwithstanding any other provision of law, the
Commissioner of Customs, when necessary to respond to
a specific threat to human life or national interests, is au-
thorized to close temporarily any Customs office or port
of entry or take any other lesser action that may be nec-
essary to respond to the specific threat.
‘‘(3) The Secretary of the Treasury or the Commis-
sioner of Customs, as the case may be, shall notify the
Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate
not later than 72 hours after taking any action under
paragraph (1) or (2).’’.
SEC. 143. MANDATORY ADVANCED ELECTRONIC INFORMA-
TION FOR CARGO AND PASSENGERS.
(a) CARGO INFORMATION.—
(1) IN GENERAL.—Section 431(b) of the Tariff
Act of 1930 (19 U.S.C. 1431(b)) is amended—
(A) in the first sentence, by striking ‘‘Any
manifest’’ and inserting ‘‘(1) Any manifest’’;
and
(B) by adding at the end the following:
‘‘(2)(A) In addition to any other requirement under
this section, for each land, air, or vessel carrier required
to make entry under the customs laws of the United
States, the pilot, the master, operator, or owner of such
carrier (or the authorized agent of such operator or owner)
shall provide by electronic transmission cargo manifest in-
formation in advance of such entry in such manner, time,
and form as prescribed under regulations by the Sec-
retary. The Secretary may exclude any class of land, air,
or vessel carrier for which the Secretary concludes the re-
quirements of this subparagraph are not necessary.
‘‘(B) The Secretary shall cooperate with other appro-
priate Federal departments and agencies for the purpose
of providing to such departments and agencies as soon as
practicable cargo manifest information obtained pursuant
to subparagraph (A). In carrying out the preceding sen-
tence, the Secretary, to the maximum extent practicable,
shall protect the privacy and property rights with respect
to the cargo involved.’’.
(2) 
CONFORMING
AMENDMENTS.—Subpara-
graphs (A) and (C) of section 431(d)(1) of such Act
are each amended by inserting before the semicolon
‘‘or subsection (b)(2)’’.
(b) PASSENGER INFORMATION.—Part II of title IV
of the Tariff Act of 1930 (19 U.S.C. 1431 et seq.) is
amended by inserting after section 431 the following:
‘‘SEC. 432. PASSENGER AND CREW INFORMATION RE-
QUIRED FOR LAND, AIR, OR VESSEL CAR-
RIERS.
‘‘(a) IN GENERAL.—For every person arriving or de-
parting on a land, air, or vessel carrier required to make
entry or obtain clearance under the customs laws of the
United States, the pilot, the master, operator, or owner
of such carrier (or the authorized agent of such operator
or owner) shall provide by electronic transmission informa-
tion described in subsection (b) in advance of such entry
or clearance in such manner, time, and form as prescribed
under regulations by the Secretary.
‘‘(b) INFORMATION DESCRIBED.—The information
described in this subsection shall include for each person
described in subsection (a), if applicable, the person’s—
‘‘(1) full name;
‘‘(2) date of birth and citizenship;
‘‘(3) gender;
‘‘(4) passport number and country of issuance;
‘‘(5) United States visa number or resident
alien card number;
‘‘(6) passenger name record; and
‘‘(7) such additional information that the Sec-
retary, by regulation, determines is reasonably nec-
essary to ensure aviation and maritime safety pursu-
ant to the laws enforced or administered by the Cus-
toms Service.
‘‘(c) SHARING
OF INFORMATION.—The Secretary
shall cooperate with other appropriate Federal depart-
ments and agencies for the purpose of providing to such
departments and agencies as soon as practicable electronic
transmission information obtained pursuant to subsection
(a). In carrying out the preceding sentence, the Secretary,
to the maximum extent practicable, shall protect the pri-
vacy rights of the person with respect to which the infor-
mation relates.’’.
(c) DEFINITION.—Section 401 of the Tariff Act of
1930 (19 U.S.C. 1401) is amended by adding at the end
the following:
‘‘(t) The term ‘land, air, or vessel carrier’ means a
land, air, or vessel carrier, as the case may be, that trans-
ports goods or passengers for payment or other consider-
ation, including money or services rendered.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect beginning 45 days after the
date of the enactment of this Act.
SEC. 144. BORDER SEARCH AUTHORITY FOR CERTAIN CON-
TRABAND IN OUTBOUND MAIL.
The Tariff Act of 1930 is amended by inserting after
section 582 the following:
‘‘SEC. 583. EXAMINATION OF OUTBOUND MAIL.
‘‘(a) EXAMINATION.—
‘‘(1) IN GENERAL.—For purposes of ensuring
compliance with the Customs laws of the United
States and other laws enforced by the Customs Serv-
ice, including the provisions of law described in
paragraph (2), a Customs officer may, subject to the
provisions of this section, stop and search at the
border, without a search warrant, mail of domestic
origin transmitted for export by the United States
Postal Service and foreign mail transiting the
United States that is being imported or exported by
the United States Postal Service.
‘‘(2) PROVISIONS
OF
LAW
DESCRIBED.—The
provisions of law described in this paragraph are the
following:
‘‘(A) Section 5316 of title 31, United
States Code (relating to reports on exporting
and importing monetary instruments).
‘‘(B) Sections 1461, 1463, 1465, and 1466
and chapter 110 of title 18, United States Code
(relating to obscenity and child pornography).
‘‘(C) Section 1003 of the Controlled Sub-
stances Import and Export Act (21 U.S.C. 953;
relating to exportation of controlled sub-
stances).
‘‘(D) The Export Administration Act of
1979 (50 U.S.C. app. 2401 et seq.).
‘‘(E) Section 38 of the Arms Export Con-
trol Act (22 U.S.C. 2778).
‘‘(F) The International Emergency Eco-
nomic Powers Act (50 U.S.C. 1701 et seq.).
‘‘(b) SEARCH OF MAIL NOT SEALED AGAINST IN-
SPECTION AND OTHER MAIL.—Mail not sealed against in-
spection under the postal laws and regulations of the
United States, mail which bears a customs declaration,
and mail with respect to which the sender or addressee
has consented in writing to search, may be searched by
a Customs officer.
‘‘(c) SEARCH OF MAIL SEALED AGAINST INSPEC-
TION.—(1) Mail sealed against inspection under the postal
laws and regulations of the United States may be searched
by a Customs officer, subject to paragraph (2), upon rea-
sonable cause to suspect that such mail contains one or
more of the following:
‘‘(A) Monetary instruments, as defined in sec-
tion 1956 of title 18, United States Code.
‘‘(B) A weapon of mass destruction, as defined
in section 2332a(b) of title 18, United States Code.
‘‘(C) A drug or other substance listed in sched-
ule I, II, III, or IV in section 202 of the Controlled
Substances Act (21 U.S.C. 812).
‘‘(D) National defense and related information
transmitted in violation of any of sections 793
through 798 of title 18, United States Code.
‘‘(E) Merchandise mailed in violation of section
1715 or 1716 of title 18, United States Code.
‘‘(F) Merchandise mailed in violation of any
provision of chapter 71 (relating to obscenity) or
chapter 110 (relating to sexual exploitation and
other abuse of children) of title 18, United States
Code.
‘‘(G) Merchandise mailed in violation of the Ex-
port Administration Act of 1979 (50 U.S.C. app.
2401 et seq.).
‘‘(H) Merchandise mailed in violation of section
38 of the Arms Export Control Act (22 U.S.C.
2778).
‘‘(I) Merchandise mailed in violation of the
International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.).
‘‘(J) Merchandise mailed in violation of the
Trading with the Enemy Act (50 U.S.C. app. 1 et
seq.).
‘‘(K) Merchandise subject to any other law en-
forced by the Customs Service.
‘‘(2) No person acting under authority of paragraph
(1) shall read, or authorize any other person to read, any
correspondence contained in mail sealed against inspection
unless prior to so reading—
‘‘(A) a search warrant has been issued pursuant
to Rule 41, Federal Rules of Criminal Procedure; or
‘‘(B) the sender or addressee has given written
authorization for such reading.’’.
SEC. 145. AUTHORIZATION OF APPROPRIATIONS FOR REES-
TABLISHMENT OF CUSTOMS OPERATIONS IN
NEW YORK CITY.
(a) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be
appropriated for the reestablishment of operations of
the Customs Service in New York, New York, such
sums as may be necessary for fiscal year 2002.
(2) OPERATIONS DESCRIBED.—The operations
referred to in paragraph (1) include, but are not
limited to, the following:
(A) Operations relating to the Port Direc-
tor of New York City, the New York Customs
Management Center (including the Director of
Field Operations), and the Special Agent-In-
Charge for New York.
(B) Commercial operations, including tex-
tile enforcement operations and salaries and ex-
penses of—
(i) trade specialists who determine the
origin and value of merchandise;
(ii) analysts who monitor the entry
data into the United States of textiles and
textile products; and
(iii) Customs officials who work with
foreign governments to examine textile
makers and verify entry information.
(b) AVAILABILITY.—Amounts appropriated pursuant
to the authorization of appropriations under subsection (a)
are authorized to remain available until expended.
Subtitle E—Textile Transshipment
Provisions
SEC. 151. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONI-
TORING BY CUSTOMS SERVICE.
(a) GAO AUDIT.—The Comptroller General of the
United States shall conduct an audit of the system estab-
lished and carried out by the Customs Service to monitor
textile transshipment.
(b) REPORT.—Not later than 9 months after the date
of enactment of this Act, the Comptroller General shall
submit to the Committee on Ways and Means of the
House of Representatives and Committee on Finance of
the Senate a report that contains the results of the study
conducted under subsection (a), including recommenda-
tions for improvements to the transshipment monitoring
system if applicable.
(c) TRANSSHIPMENT DESCRIBED.—Transshipment
within the meaning of this section has occurred when pref-
erential treatment under any provision of law has been
claimed for a textile or apparel article on the basis of ma-
terial false information concerning the country of origin,
manufacture, processing, or assembly of the article or any
of its components. For purposes of the preceding sentence,
false information is material if disclosure of the true infor-
mation would mean or would have meant that the article
is or was ineligible for preferential treatment under the
provision of law in question.
SEC. 152. AUTHORIZATION OF APPROPRIATIONS FOR TEX-
TILE TRANSSHIPMENT ENFORCEMENT OPER-
ATIONS.
(a) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be
appropriated for textile transshipment enforcement
operations of the Customs Service $9,500,000 for
fiscal year 2002.
(2) AVAILABILITY.—Amounts appropriated pur-
suant to the authorization of appropriations under
paragraph (1) are authorized to remain available
until expended.
(b) USE OF FUNDS.—Of the amount appropriated
pursuant to the authorization of appropriations under sub-
section (a), the following amounts are authorized to be
made available for the following purposes:
(1) IMPORT SPECIALISTS.—$1,463,000 for 21
Customs import specialists to be assigned to selected
ports for documentation review to support detentions
and exclusions and 1 additional Customs import spe-
cialist assigned to the Customs headquarters textile
program to administer the program and provide
oversight.
(2) INSPECTORS.—$652,080 for 10 Customs
inspectors to be assigned to selected ports to exam-
ine targeted high-risk shipments.
(3) INVESTIGATORS.—(A) $1,165,380 for 10
investigators to be assigned to selected ports to in-
vestigate instances of smuggling, quota and trade
agreement circumvention, and use of counterfeit
visas to enter inadmissible goods.
(B) $149,603 for 1 investigator to be assigned
to Customs headquarters textile program to coordi-
nate and ensure implementation of textile production
verification team results from an investigation per-
spective.
(4) INTERNATIONAL
TRADE
SPECIALISTS.—
$226,500 for 3 international trade specialists to be
assigned to Customs headquarters to be dedicated to
illegal textile transshipment policy issues and other
free trade agreement enforcement issues.
(5) PERMANENT
IMPORT
SPECIALISTS
FOR
HONG
KONG.—$500,000 for 2 permanent import
specialist positions and $500,000 for 2 investigators
to be assigned to Hong Kong to work with Hong
Kong and other government authorities in Southeast
Asia to assist such authorities pursue proactive en-
forcement of bilateral trade agreements.
(6) VARIOUS PERMANENT TRADE POSITIONS.—
$3,500,000 for the following:
(A) 2 permanent positions to be assigned
to the Customs attache´ office in Central Amer-
ica to address trade enforcement issues for that
region.
(B) 2 permanent positions to be assigned
to the Customs attache´ office in South Africa to
address trade enforcement issues pursuant to
the African Growth and Opportunity Act (title
I of Public Law 106–200).
(C) 4 permanent positions to be assigned
to the Customs attache´ office in Mexico to ad-
dress the threat of illegal textile transshipment
through Mexico and other related issues under
the North American Free Trade Agreement
Act.
(D) 2 permanent positions to be assigned
to the Customs attache´ office in Seoul, South
Korea, to address the trade issues in the geo-
graphic region.
(E) 2 permanent positions to be assigned
to the proposed Customs attache´ office in New
Delhi, India, to address the threat of illegal tex-
tile transshipment and other trade enforcement
issues.
(F) 2 permanent positions to be assigned
to the Customs attache´ office in Rome, Italy, to
address trade enforcement issues in the geo-
graphic region, including issues under free
trade agreements with Jordan and Israel.
(7) ATTORNEYS.—$179,886 for 2 attorneys for
the Office of the Chief Counsel of the Customs Serv-
ice to pursue cases regarding illegal textile trans-
shipment.
(8) AUDITORS.—$510,000 for 6 Customs audi-
tors to perform internal control reviews and docu-
ment and record reviews of suspect importers.
(9) ADDITIONAL
TRAVEL
FUNDS.—$250,000
for deployment of additional textile production
verification teams to sub-Saharan Africa.
(10) TRAINING.—(A) $75,000 for training of
Customs personnel.
(B) $200,000 for training for foreign counter-
parts in risk management analytical techniques and
for teaching factory inspection techniques, model law
Development, and enforcement techniques.
(11) OUTREACH.—$60,000 for outreach efforts
to United States importers.
SEC. 153. IMPLEMENTATION OF THE AFRICAN GROWTH
AND OPPORTUNITY ACT.
Of the amount made available for fiscal year 2002
under section 301(b)(2)(A) of the Customs Procedural Re-
form and Simplification Act of 1978 (19 U.S.C.
2075(b)(2)(A)), as amended by section 101(b)(1) of this
Act, $1,317,000 shall be available until expended for the
Customs Service to provide technical assistance to help
sub-Saharan Africa countries develop and implement ef-
fective visa and anti-transshipment systems as required by
the African Growth and Opportunity Act (title I of Public
Law 106–200), as follows:
(1) TRAVEL FUNDS.—$600,000 for import spe-
cialists, special agents, and other qualified Customs
personnel to travel to sub-Saharan Africa countries
to provide technical assistance in developing and im-
plementing effective visa and anti-transshipment sys-
tems.
(2) IMPORT SPECIALISTS.—$266,000 for 4 im-
port specialists to be assigned to Customs head-
quarters to be dedicated to providing technical as-
sistance to sub-Saharan African countries for devel-
oping and implementing effective visa and anti-
transshipment systems.
(3) 
DATA
RECONCILIATION
ANALYSTS.—
$151,000 for 2 data reconciliation analysts to review
apparel shipments.
(4) SPECIAL AGENTS.—$300,000 for 2 special
agents to be assigned to Customs headquarters to be
available to provide technical assistance to sub-Saha-
ran African countries in the performance of inves-
tigations and other enforcement initiatives.
TITLE 
II—OFFICE 
OF 
THE
UNITED STATES TRADE REP-
RESENTATIVE
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Section 141(g)(1) of the Trade
Act of 1974 (19 U.S.C. 2171(g)(1)) is amended—
(1) in subparagraph (A)—
funds for the succeeding fiscal year that will be necessary
for the Office to carry out its functions.’’.
(c) ADDITIONAL STAFF FOR OFFICE OF ASSISTANT
U.S. TRADE REPRESENTATIVE FOR CONGRESSIONAL AF-
FAIRS.—
(1) IN GENERAL.—There is authorized to be
appropriated such sums as may be necessary for fis-
cal year 2002 for the salaries and expenses of two
additional legislative specialist employee positions
within the Office of the Assistant United States
Trade Representative for Congressional Affairs.
(2) AVAILABILITY.—Amounts appropriated pur-
suant to the authorization of appropriations under
paragraph (1) are authorized to remain available
until expended.
TITLE 
III—UNITED 
STATES
INTERNATIONAL TRADE COM-
MISSION
SEC. 301. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Section 330(e)(2)(A) of the Tariff
Act of 1930 (19 U.S.C. 1330(e)(2)) is amended—
(1) in clause (i) to read as follows:
‘‘(i) $51,440,000 for fiscal year 2002.’’;
(2) in clause (ii) to read as follows:
‘‘(ii) $54,000,000 for fiscal year 2003.’’; and
(3) by adding at the end the following:
‘‘(iii) $57,240,000 for fiscal year 2004.’’.
(b) SUBMISSION OF OUT-YEAR BUDGET PROJEC-
TIONS.—Section 330(e) of the Tariff Act of 1930 (19
U.S.C. 1330(e)(2)) is amended by adding at the end the
following:
‘‘(4) By not later than the date on which the Presi-
dent submits to Congress the budget of the United States
Government for a fiscal year, the Commission shall submit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the
Senate the projected amount of funds for the succeeding
fiscal year that will be necessary for the Commission to
carry out its functions.’’.
TITLE IV—OTHER TRADE
PROVISIONS
SEC. 401. INCREASE IN AGGREGATE VALUE OF ARTICLES
EXEMPT FROM DUTY ACQUIRED ABROAD BY
UNITED STATES RESIDENTS.
(a) IN GENERAL.—Subheading 9804.00.65 of the
Harmonized Tariff Schedule of the United States is
amended in the article description column by striking
‘‘$400’’ and inserting ‘‘$800’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect 90 days after the date of
the enactment of this Act.
SEC. 402. REGULATORY AUDIT PROCEDURES.
Section 509(b) of the Tariff Act of 1930 (19 U.S.C.
1509(b)) is amended by adding at the end the following:
‘‘(6)(A) If during the course of any audit con-
cluded under this subsection, the Customs Service
identifies overpayments of duties or fees or over-dec-
larations of quantities or values that are within the
time period and scope of the audit that the Customs
Service has defined, then in calculating the loss of
revenue or monetary penalties under section 592,
the Customs Service shall treat the overpayments or
over-declarations on finally liquidated entries as an
offset to any underpayments or underdeclarations
also identified on finally liquidated entries if such
overpayments or over-declarations were not made by
the person being audited for the purpose of violating
any provision of law.
‘‘(B) Nothing in this paragraph shall be con-
strued to authorize a refund not otherwise author-
ized under section 520.’’.
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