H. R. 4954—25
technological developments that will assist in ensuring the efficient 
and secure movement of international cargo. 
(j) LESSER RISK PORT.—The Secretary, acting through the 
Commissioner, may treat cargo loaded in a foreign seaport des-
ignated under the Container Security Initiative as presenting a 
lesser risk than similar cargo loaded in a foreign seaport that 
is not designated under the Container Security Initiative, for the 
purpose of clearing such cargo into the United States. 
(k) PROHIBITION.—
(1) IN GENERAL.—The Secretary shall issue a ‘‘do not load’’ 
order, using existing authorities, to prevent the onload of any 
cargo loaded at a port designated under CSI that has been 
identified as high risk, including by the Automated Targeting 
System, unless the cargo is determined to no longer be high 
risk through—
(A) a scan of the cargo with nonintrusive imaging 
equipment and radiation detection equipment; 
(B) a search of the cargo; or 
(C) additional information received by the Department. 
(2) RULE OF CONSTRUCTION.—Nothing in this subsection 
shall be construed to interfere with the ability of the Secretary 
to deny entry of any cargo into the United States. 
(l) REPORT.—
(1) IN GENERAL.—Not later than September 30, 2007, the 
Secretary, acting through the Commissioner, shall, in consulta-
tion with other appropriate government officials and the 
Commercial Operations Advisory Committee, submit a report 
to the appropriate congressional committees on the effectiveness 
of, and the need for any improvements to, the Container Secu-
rity Initiative. The report shall include—
(A) a description of the technical assistance delivered 
to, as well as needed at, each designated seaport; 
(B) a description of the human capital management 
plan at each designated seaport; 
(C) a summary of the requests made by the United 
States to foreign governments to conduct physical or non-
intrusive inspections of cargo at designated seaports, and 
whether each such request was granted or denied by the 
foreign government; 
(D) an assessment of the effectiveness of screening, 
scanning, and inspection protocols and technologies utilized 
at designated seaports and the effect on the flow of com-
merce at such seaports, as well as any recommendations 
for improving the effectiveness of screening, scanning, and 
inspection protocols and technologies utilized at designated 
seaports; 
(E) a description and assessment of the outcome of 
any security incident involving a foreign seaport designated 
under the Container Security Initiative; 
(F) the rationale for the continuance of each port des-
ignated under CSI; 
(G) a description of the potential for remote targeting 
to decrease the number of personnel who are deployed 
at foreign ports under CSI; and 
(H) a summary and assessment of the aggregate 
number and extent of trade compliance lapses at each 
seaport designated under the Container Security Initiative.
H. R. 4954—26
(2) UPDATED REPORT.—Not later than September 30, 2010, 
the Secretary, acting through the Commissioner, shall, in con-
sultation with other appropriate government officials and the 
Commercial Operations Advisory Committee, submit an 
updated report to the appropriate congressional committees 
on the effectiveness of, and the need for any improvements 
to, the Container Security Initiative. The updated report shall 
address each of the elements required to be included in the 
report provided for under paragraph (1). 
(m) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the United States Customs and Border Protec-
tion to carry out the provisions of this section—
(1) $144,000,000 for fiscal year 2008; 
(2) $146,000,000 for fiscal year 2009; and 
(3) $153,300,000 for fiscal year 2010. 
Subtitle B—Customs–Trade Partnership 
Against Terrorism 
SEC. 211. ESTABLISHMENT. 
(a) ESTABLISHMENT.—The Secretary, acting through the 
Commissioner, is authorized to establish a voluntary government-
private sector program (to be known as the ‘‘Customs–Trade Part-
nership Against Terrorism’’ or ‘‘C–TPAT’’) to strengthen and 
improve the overall security of the international supply chain and 
United States border security, and to facilitate the movement of 
secure cargo through the international supply chain, by providing 
benefits to participants meeting or exceeding the program require-
ments. Participants in C–TPAT shall include Tier 1 participants, 
Tier 2 participants, and Tier 3 participants. 
(b) MINIMUM SECURITY REQUIREMENTS.—The Secretary, acting 
through the Commissioner, shall review the minimum security 
requirements of C–TPAT at least once every year and update such 
requirements as necessary. 
SEC. 212. ELIGIBLE ENTITIES. 
Importers, customs brokers, forwarders, air, sea, land carriers, 
contract logistics providers, and other entities in the international 
supply chain and intermodal transportation system are eligible 
to apply to voluntarily enter into partnerships with the Department 
under C–TPAT. 
SEC. 213. MINIMUM REQUIREMENTS. 
An applicant seeking to participate in C–TPAT shall—
(1) demonstrate a history of moving cargo in the inter-
national supply chain; 
(2) conduct an assessment of its supply chain based upon 
security criteria established by the Secretary, acting through 
the Commissioner, including—
(A) business partner requirements; 
(B) container security; 
(C) physical security and access controls; 
(D) personnel security; 
(E) procedural security; 
(F) security training and threat awareness; and 
(G) information technology security;
H. R. 4954—27
(3) implement and maintain security measures and supply 
chain security practices meeting security criteria established 
by the Commissioner; and 
(4) meet all other requirements established by the Commis-
sioner, in consultation with the Commercial Operations 
Advisory Committee. 
SEC. 214. TIER 1 PARTICIPANTS IN C–TPAT. 
(a) BENEFITS.—The Secretary, acting through the Commis-
sioner, shall offer limited benefits to a Tier 1 participant who 
has been certified in accordance with the guidelines referred to 
in subsection (b). Such benefits may include a reduction in the 
score assigned pursuant to the Automated Targeting System of 
not greater than 20 percent of the high-risk threshold established 
by the Secretary. 
(b) GUIDELINES.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary, acting through the 
Commissioner, shall update the guidelines for certifying a C–TPAT 
participant’s security measures and supply chain security practices 
under this section. Such guidelines shall include a background 
investigation and extensive documentation review. 
(c) TIMEFRAME.—To the extent practicable, the Secretary, acting 
through the Commissioner, shall complete the Tier 1 certification 
process within 90 days of receipt of an application for participation 
in C–TPAT. 
SEC. 215. TIER 2 PARTICIPANTS IN C–TPAT. 
(a) VALIDATION.—The Secretary, acting through the Commis-
sioner, shall validate the security measures and supply chain secu-
rity practices of a Tier 1 participant in accordance with the guide-
lines referred to in subsection (c). Such validation shall include 
on-site assessments at appropriate foreign locations utilized by the 
Tier 1 participant in its supply chain and shall, to the extent 
practicable, be completed not later than 1 year after certification 
as a Tier 1 participant. 
(b) BENEFITS.—The Secretary, acting through the Commis-
sioner, shall extend benefits to each C–TPAT participant that has 
been validated as a Tier 2 participant under this section, which 
may include—
(1) reduced scores in the Automated Targeting System; 
(2) reduced examinations of cargo; and 
(3) priority searches of cargo. 
(c) GUIDELINES.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary, acting through the 
Commissioner, shall develop a schedule and update the guidelines 
for validating a participant’s security measures and supply chain 
security practices under this section. 
SEC. 216. TIER 3 PARTICIPANTS IN C–TPAT. 
(a) IN GENERAL.—The Secretary, acting through the Commis-
sioner, shall establish a third tier of C–TPAT participation that 
offers additional benefits to participants who demonstrate a sus-
tained commitment to maintaining security measures and supply 
chain security practices that exceed the guidelines established for 
validation as a Tier 2 participant in C–TPAT under section 215. 
(b) CRITERIA.—The Secretary, acting through the Commis-
sioner, shall designate criteria for validating a C–TPAT participant
H. R. 4954—28
as a Tier 3 participant under this section. Such criteria may 
include—
(1) compliance with any additional guidelines established 
by the Secretary that exceed the guidelines established pursu-
ant to section 215 of this Act for validating a C–TPAT partici-
pant as a Tier 2 participant, particularly with respect to con-
trols over access to cargo throughout the supply chain; 
(2) submission of additional information regarding cargo 
prior to loading, as determined by the Secretary; 
(3) utilization of container security devices, technologies, 
policies, or practices that meet standards and criteria estab-
lished by the Secretary; and 
(4) compliance with any other cargo requirements estab-
lished by the Secretary. 
(c) BENEFITS.—The Secretary, acting through the Commis-
sioner, in consultation with the Commercial Operations Advisory 
Committee and the National Maritime Security Advisory Com-
mittee, shall extend benefits to each C–TPAT participant that has 
been validated as a Tier 3 participant under this section, which 
may include—
(1) the expedited release of a Tier 3 participant’s cargo 
in destination ports within the United States during all threat 
levels designated by the Secretary; 
(2) further reduction in examinations of cargo; 
(3) priority for examinations of cargo; and 
(4) further reduction in the risk score assigned pursuant 
to the Automated Targeting System; and 
(5) inclusion in joint incident management exercises, as 
appropriate. 
(d) DEADLINE.—Not later than 2 years after the date of the 
enactment of this Act, the Secretary, acting through the Commis-
sioner, shall designate appropriate criteria pursuant to subsection 
(b) and provide benefits to validated Tier 3 participants pursuant 
to subsection (c). 
SEC. 217. CONSEQUENCES FOR LACK OF COMPLIANCE. 
(a) IN GENERAL.—If at any time a C–TPAT participant’s secu-
rity measures and supply chain security practices fail to meet 
any of the requirements under this subtitle, the Commissioner 
may deny the participant benefits otherwise available under this 
subtitle, in whole or in part. The Commissioner shall develop proce-
dures that provide appropriate protections to C–TPAT participants 
before benefits are revoked. Such procedures may not limit the 
ability of the Commissioner to take actions to protect the national 
security of the United States. 
(b) FALSE OR MISLEADING INFORMATION.—If a C–TPAT partici-
pant knowingly provides false or misleading information to the 
Commissioner during the validation process provided for under 
this subtitle, the Commissioner shall suspend or expel the partici-
pant from C–TPAT for an appropriate period of time. The Commis-
sioner, after the completion of the process under subsection (c), 
may publish in the Federal Register a list of participants who 
have been suspended or expelled from C–TPAT pursuant to this 
subsection, and may make such list available to C–TPAT partici-
pants. 
(c) RIGHT OF APPEAL.—
H. R. 4954—29
(1) IN GENERAL.—A C–TPAT participant may appeal a deci-
sion of the Commissioner pursuant to subsection (a). Such 
appeal shall be filed with the Secretary not later than 90 
days after the date of the decision, and the Secretary shall 
issue a determination not later than 180 days after the appeal 
is filed. 
(2) APPEALS OF OTHER DECISIONS.—A C–TPAT participant 
may appeal a decision of the Commissioner pursuant to sub-
section (b). Such appeal shall be filed with the Secretary not 
later than 30 days after the date of the decision, and the 
Secretary shall issue a determination not later than 180 days 
after the appeal is filed. 
SEC. 218. THIRD PARTY VALIDATIONS. 
(a) PLAN.—The Secretary, acting through the Commissioner, 
shall develop a plan to implement a 1-year voluntary pilot program 
to test and assess the feasibility, costs, and benefits of using third 
party entities to conduct validations of C–TPAT participants. 
(b) CONSULTATIONS.—Not later than 120 days after the date 
of the enactment of this Act, after consulting with private sector 
stakeholders, including the Commercial Operations Advisory Com-
mittee, the Secretary shall submit a report to the appropriate 
congressional committees on the plan described in subsection (a). 
(c) PILOT PROGRAM.—
(1) IN GENERAL.—Not later than 1 year after the consulta-
tions described in subsection (b), the Secretary shall carry 
out the 1-year pilot program to conduct validations of C–TPAT 
participants using third party entities described in subsection 
(a). 
(2) AUTHORITY OF THE SECRETARY.—The decision to validate 
a C–TPAT participant is solely within the discretion of the 
Secretary, or the Secretary’s designee. 
(d) CERTIFICATION OF THIRD PARTY ENTITIES.—The Secretary 
shall certify a third party entity to conduct validations under sub-
section (c) if the entity—
(1) demonstrates to the satisfaction of the Secretary that 
the entity has the ability to perform validations in accordance 
with standard operating procedures and requirements des-
ignated by the Secretary; and 
(2) agrees—
(A) to perform validations in accordance with such 
standard operating procedures and requirements (and 
updates to such procedures and requirements); and 
(B) to maintain liability insurance coverage at policy 
limits and in accordance with conditions to be established 
by the Secretary; and 
(3) signs an agreement to protect all proprietary informa-
tion of C–TPAT participants with respect to which the entity 
will conduct validations. 
(e) INFORMATION FOR ESTABLISHING LIMITS OF LIABILITY INSUR-
ANCE.—A third party entity seeking a certificate under subsection 
(d) shall submit to the Secretary necessary information for estab-
lishing the limits of liability insurance required to be maintained 
by the entity under this Act. 
(f) ADDITIONAL REQUIREMENTS.—The Secretary shall ensure 
that—
H. R. 4954—30
(1) any third party entity certified under this section does 
not have—
(A) any beneficial interest in or any direct or indirect 
control over the C–TPAT participant for which the valida-
tion services are performed; or 
(B) any other conflict of interest with respect to the 
C–TPAT participant; and 
(2) the C–TPAT participant has entered into a contract 
with the third party entity under which the C–TPAT participant 
agrees to pay all costs associated with the validation. 
(g) MONITORING.—
(1) IN GENERAL.—The Secretary shall regularly monitor 
and inspect the operations of a third party entity conducting 
validations under subsection (c) to ensure that the entity is 
meeting the minimum standard operating procedures and 
requirements for the validation of C–TPAT participants estab-
lished by the Secretary and all other applicable requirements 
for validation services. 
(2) REVOCATION.—If the Secretary determines that a third 
party entity is not meeting the minimum standard operating 
procedures and requirements designated by the Secretary under 
subsection (d)(1), the Secretary shall—
(A) revoke the entity’s certificate of conformance issued 
under subsection (d)(1); and 
(B) review any validations conducted by the entity. 
(h) LIMITATION ON AUTHORITY.—The Secretary may only grant 
a C–TPAT validation by a third party entity pursuant to subsection 
(c) if the C–TPAT participant voluntarily submits to validation 
by such third party entity. 
(i) REPORT.—Not later than 30 days after the completion of 
the pilot program conducted pursuant to subsection (c), the Sec-
retary shall submit a report to the appropriate congressional 
committees that contains—
(1) the results of the pilot program, including the extent 
to which the pilot program ensured sufficient protection for 
proprietary commercial information; 
(2) the cost and efficiency associated with validations under 
the pilot program; 
(3) the impact of the pilot program on the rate of validations 
conducted under C–TPAT; 
(4) any impact on national security of the pilot program; 
and 
(5) any recommendations by the Secretary based upon the 
results of the pilot program. 
SEC. 219. REVALIDATION. 
The Secretary, acting through the Commissioner, shall develop 
and implement—
(1) a revalidation process for Tier 2 and Tier 3 participants; 
(2) a framework based upon objective criteria for identifying 
participants for periodic revalidation not less frequently than 
once during each 4-year period following the initial validation; 
and 
(3) an annual plan for revalidation that includes—
(A) performance measures; 
(B) an assessment of the personnel needed to perform 
the revalidations; and
H. R. 4954—31
(C) the number of participants that will be revalidated 
during the following year. 
SEC. 220. NONCONTAINERIZED CARGO. 
The Secretary, acting through the Commissioner, shall consider 
the potential for participation in C–TPAT by importers of non-
containerized cargoes that otherwise meet the requirements under 
this subtitle. 
SEC. 221. C–TPAT PROGRAM MANAGEMENT. 
(a) IN GENERAL.—The Secretary, acting through the Commis-
sioner, shall establish sufficient internal quality controls and record 
management to support the management systems of C–TPAT. In 
managing the program, the Secretary shall ensure that the program 
includes: 
(1) STRATEGIC PLAN.—A 5-year plan to identify outcome-
based goals and performance measures of the program. 
(2) ANNUAL PLAN.—An annual plan for each fiscal year 
designed to match available resources to the projected workload. 
(3) STANDARDIZED WORK PROGRAM.—A standardized work 
program to be used by agency personnel to carry out the certifi-
cations, validations, and revalidations of participants. The Sec-
retary shall keep records and monitor staff hours associated 
with the completion of each such review. 
(b) DOCUMENTATION
OF
REVIEWS.—The Secretary, acting 
through the Commissioner, shall maintain a record management 
system to document determinations on the reviews of each C–
TPAT participant, including certifications, validations, and revalida-
tions. 
(c) CONFIDENTIAL INFORMATION SAFEGUARDS.—In consultation 
with the Commercial Operations Advisory Committee, the Sec-
retary, acting through the Commissioner, shall develop and imple-
ment procedures to ensure the protection of confidential data col-
lected, stored, or shared with government agencies or as part of 
the application, certification, validation, and revalidation processes. 
(d) RESOURCE MANAGEMENT STAFFING PLAN.—The Secretary, 
acting through the Commissioner, shall—
(1) develop a staffing plan to recruit and train staff 
(including a formalized training program) to meet the objectives 
identified in the strategic plan of the C–TPAT program; and 
(2) provide cross-training in postincident trade resumption 
for personnel who administer the C–TPAT program. 
(e) REPORT TO CONGRESS.—In connection with the President’s 
annual budget submission for the Department, the Secretary shall 
report to the appropriate congressional committees on the progress 
made by the Commissioner to certify, validate, and revalidate C–
TPAT participants. Such report shall be due on the same date 
that the President’s budget is submitted to the Congress. 
SEC. 222. ADDITIONAL PERSONNEL. 
For fiscal years 2008 and 2009, the Commissioner shall increase 
by not less than 50 the number of full-time personnel engaged 
in the validation and revalidation of C–TPAT participants (over 
the number of such personnel on the last day of the previous 
fiscal year), and shall provide appropriate training and support 
to such additional personnel.
H. R. 4954—32
SEC. 223. AUTHORIZATION OF APPROPRIATIONS. 
(a) C–TPAT.—There are authorized to be appropriated to the 
United States Customs and Border Protection to carry out the 
provisions of sections 211 through 221 to remain available until 
expended—
(1) $65,000,000 for fiscal year 2008; 
(2) $72,000,000 for fiscal year 2009; and 
(3) $75,600,000 for fiscal year 2010. 
(b) ADDITIONAL PERSONNEL.—In addition to any amounts other-
wise appropriated to the United States Customs and Border Protec-
tion, there are authorized to be appropriated for the purpose of 
meeting the staffing requirement provided for in section 222, to 
remain available until expended—
(1) $8,500,000 for fiscal year 2008; 
(2) $17,600,000 for fiscal year 2009; 
(3) $19,000,000 for fiscal year 2010; 
(4) $20,000,000 for fiscal year 2011; and 
(5) $21,000,000 for fiscal year 2012. 
Subtitle C—Miscellaneous Provisions 
SEC. 231. PILOT INTEGRATED SCANNING SYSTEM. 
(a) DESIGNATIONS.—Not later than 90 days after the date of 
the enactment of this Act, the Secretary shall designate 3 foreign 
seaports through which containers pass or are transshipped to 
the United States for the establishment of pilot integrated scanning 
systems that couple nonintrusive imaging equipment and radiation 
detection equipment. In making the designations under this sub-
section, the Secretary shall consider 3 distinct ports with unique 
features and differing levels of trade volume. 
(b) COORDINATION.—The Secretary shall—
(1) coordinate with the Secretary of Energy, as necessary, 
to provide radiation detection equipment through the Depart-
ment of Energy’s Second Line of Defense and Megaports pro-
grams; or 
(2) work with the private sector or, when possible, host 
governments to obtain radiation detection equipment that 
meets both the Department’s and the Department of Energy’s 
technical specifications for such equipment. 
(c) PILOT SYSTEM IMPLEMENTATION.—Not later than 1 year 
after the date of the enactment of this Act, the Secretary shall 
achieve a full-scale implementation of the pilot integrated scanning 
system at the ports designated under subsection (a), which—
(1) shall scan all containers destined for the United States 
that are loaded in such ports; 
(2) shall electronically transmit the images and information 
to appropriate United States Government personnel in the 
country in which the port is located or in the United States 
for evaluation and analysis; 
(3) shall resolve every radiation alarm according to estab-
lished Department procedures; 
(4) shall utilize the information collected to enhance the 
Automated Targeting System or other relevant programs; 
(5) shall store the information for later retrieval and anal-
ysis; and
H. R. 4954—33
(6) may provide an automated notification of questionable 
or high-risk cargo as a trigger for further inspection by appro-
priately trained personnel. 
(d) REPORT.—Not later than 180 days after achieving full-scale 
implementation under subsection (c), the Secretary, in consultation 
with the Secretary of State and, as appropriate, the Secretary 
of Energy, shall submit a report to the appropriate congressional 
committees, that includes—
(1) an evaluation of the lessons derived from the pilot 
system implemented under this subsection; 
(2) an analysis of the efficacy of the Automated Targeting 
System or other relevant programs in utilizing the images 
captured to examine high-risk containers; 
(3) an evaluation of the effectiveness of the integrated 
scanning system in detecting shielded and unshielded nuclear 
and radiological material; 
(4) an evaluation of software and other technologies that 
are capable of automatically identifying potential anomalies 
in scanned containers; and 
(5) an analysis of the need and feasibility of expanding 
the integrated scanning system to other container security ini-
tiative ports, including—
(A) an analysis of the infrastructure requirements; 
(B) a projection of the effect on current average proc-
essing speed of containerized cargo; 
(C) an evaluation of the scalability of the system to 
meet both current and future forecasted trade flows; 
(D) the ability of the system to automatically maintain 
and catalog appropriate data for reference and analysis 
in the event of a transportation disruption; 
(E) an analysis of requirements, including costs, to 
install and maintain an integrated scanning system; 
(F) the ability of administering personnel to efficiently 
manage and utilize the data produced by a nonintrusive 
scanning system; 
(G) the ability to safeguard commercial data generated 
by, or submitted to, a nonintrusive scanning system; and 
(H) an assessment of the reliability of currently avail-
able technology to implement an integrated scanning 
system. 
SEC. 232. SCREENING AND SCANNING OF CARGO CONTAINERS. 
(a) ONE HUNDRED PERCENT SCREENING OF CARGO CONTAINERS 
AND 100 PERCENT SCANNING OF HIGH-RISK CONTAINERS.—
(1) SCREENING OF CARGO CONTAINERS.—The Secretary shall 
ensure that 100 percent of the cargo containers originating 
outside the United States and unloaded at a United States 
seaport undergo a screening to identify high-risk containers. 
(2) SCANNING OF HIGH-RISK CONTAINERS.—The Secretary 
shall ensure that 100 percent of the containers that have been 
identified as high-risk under paragraph (1), or through other 
means, are scanned or searched before such containers leave 
a United States seaport facility. 
(b) FULL-SCALE IMPLEMENTATION.—The Secretary, in coordina-
tion with the Secretary of Energy and foreign partners, as appro-
priate, shall ensure integrated scanning systems are fully deployed
H. R. 4954—34
to scan, using nonintrusive imaging equipment and radiation detec-
tion equipment, all containers entering the United States before 
such containers arrive in the United States as soon as possible, 
but not before the Secretary determines that the integrated scan-
ning system—
(1) meets the requirements set forth in section 231(c); 
(2) has a sufficiently low false alarm rate for use in the 
supply chain; 
(3) is capable of being deployed and operated at ports 
overseas; 
(4) is capable of integrating, as necessary, with existing 
systems; 
(5) does not significantly impact trade capacity and flow 
of cargo at foreign or United States ports; and 
(6) provides an automated notification of questionable or 
high-risk cargo as a trigger for further inspection by appro-
priately trained personnel. 
(c) REPORT.—Not later than 6 months after the submission 
of a report under section 231(d), and every 6 months thereafter, 
the Secretary shall submit a report to the appropriate congressional 
committees describing the status of full-scale deployment under 
subsection (b) and the cost of deploying the system at each foreign 
port at which the integrated scanning systems are deployed. 
SEC. 233. INTERNATIONAL COOPERATION AND COORDINATION. 
(a) INSPECTION TECHNOLOGY AND TRAINING.—
(1) IN GENERAL.—The Secretary, in coordination with the 
Secretary of State, the Secretary of Energy, and appropriate 
representatives of other Federal agencies, may provide technical 
assistance, 
equipment, 
and 
training 
to 
facilitate 
the 
implementation of supply chain security measures at ports 
designated under the Container Security Initiative. 
(2) ACQUISITION AND TRAINING.—Unless otherwise prohib-
ited by law, the Secretary may—
(A) lease, loan, provide, or otherwise assist in the 
deployment of nonintrusive inspection and radiation detec-
tion equipment at foreign land and sea ports under such 
terms and conditions as the Secretary prescribes, including 
nonreimbursable loans or the transfer of ownership of 
equipment; and 
(B) provide training and technical assistance for 
domestic or foreign personnel responsible for operating or 
maintaining such equipment. 
(b) ACTIONS AND ASSISTANCE FOR FOREIGN PORTS AND UNITED 
STATES TERRITORIES.—Section 70110 of title 46, United States Code, 
is amended—
(1) by striking the section header and inserting the fol-
lowing: 
‘‘§ 70110. Actions and assistance for foreign ports and United 
States territories’’;
and 
(2) by adding at the end the following: 
‘‘(e) ASSISTANCE FOR FOREIGN PORTS AND UNITED STATES TERRI-
TORIES.—
‘‘(1) IN GENERAL.—The Secretary, in consultation with the 
Secretary of Transportation, the Secretary of State, and the
H. R. 4954—35
Secretary of Energy, shall identify assistance programs that 
could facilitate implementation of port security antiterrorism 
measures in foreign countries and territories of the United 
States. The Secretary shall establish a program to utilize the 
programs that are capable of implementing port security 
antiterrorism measures at ports in foreign countries and terri-
tories of the United States that the Secretary finds to lack 
effective antiterrorism measures. 
‘‘(2) CARIBBEAN BASIN.—The Secretary, in coordination with 
the Secretary of State and in consultation with the Organization 
of American States and the Commandant of the Coast Guard, 
shall place particular emphasis on utilizing programs to facili-
tate the implementation of port security antiterrorism measures 
at the ports located in the Caribbean Basin, as such ports 
pose unique security and safety threats to the United States 
due to—
‘‘(A) the strategic location of such ports between South 
America and the United States; 
‘‘(B) the relative openness of such ports; and 
‘‘(C) the significant number of shipments of narcotics 
to the United States that are moved through such ports.’’. 
(c) REPORT ON SECURITY AT PORTS IN THE CARIBBEAN BASIN.—
(1) IN GENERAL.—Not later than 180 days after the date 
of the enactment of this Act, the Comptroller General of the 
United States shall submit a report to the appropriate congres-
sional committees on the security of ports in the Caribbean 
Basin. 
(2) CONTENTS.—The report submitted under paragraph 
(1)—
(A) shall include—
(i) an assessment of the effectiveness of the meas-
ures employed to improve security at ports in the 
Caribbean Basin and recommendations for any addi-
tional measures to improve such security; 
(ii) an estimate of the number of ports in the 
Caribbean Basin that will not be secured by January 
1, 2007; 
(iii) an estimate of the financial impact in the 
United States of any action taken pursuant to section 
70110 of title 46, United States Code, that affects 
trade between such ports and the United States; and 
(iv) an assessment of the additional resources and 
program changes that are necessary to maximize secu-
rity at ports in the Caribbean Basin; and 
(B) may be submitted in both classified and redacted 
formats. 
(d) CLERICAL AMENDMENT.—The chapter analysis for chapter 
701 of title 46, United States Code, is amended by striking the 
item relating to section 70110 and inserting the following:
‘‘70110. Actions and assistance for foreign ports and United States territories.’’.
SEC. 234. FOREIGN PORT ASSESSMENTS. 
Section 70108 of title 46, United States Code, is amended 
by adding at the end the following: 
‘‘(d) PERIODIC REASSESSMENT.—The Secretary, acting through 
the Commandant of the Coast Guard, shall reassess the effective-
ness of antiterrorism measures maintained at ports as described
H. R. 4954—36
under subsection (a) and of procedures described in subsection 
(b) not less than once every 3 years.’’. 
SEC. 235. PILOT PROGRAM TO IMPROVE THE SECURITY OF EMPTY 
CONTAINERS. 
(a) IN GENERAL.—The Secretary shall conduct a 1-year pilot 
program to assess the risk posed by and improve the security 
of empty containers at United States seaports to ensure the safe 
and secure delivery of cargo and to prevent potential acts of ter-
rorism involving such containers. The pilot program shall include 
the use of visual searches of empty containers at United States 
seaports. 
(b) REPORT.—Not later than 90 days after the completion of 
the pilot program under paragraph (1), the Secretary shall prepare 
and submit to the appropriate congressional committees a report 
that contains—
(1) the results of the pilot program; and 
(2) the determination of the Secretary on whether to expand 
the pilot program. 
SEC. 236. INFORMATION SHARING RELATING TO SUPPLY CHAIN SECU-
RITY COOPERATION. 
(a) PURPOSES.—The purposes of this section are—
(1) to establish continuing liaison and to provide for supply 
chain security cooperation between Department and the private 
sector; and 
(2) to provide for regular and timely interchange of informa-
tion between the private sector and the Department concerning 
developments and security risks in the supply chain environ-
ment. 
(b) SYSTEM.—The Secretary shall develop a system to collect 
from and share appropriate risk information related to the supply 
chain with the private sector entities determined appropriate by 
the Secretary. 
(c) CONSULTATION.—In developing the system under subsection 
(b), the Secretary shall consult with the Commercial Operations 
Advisory Committee and a broad range of public and private sector 
entities likely to utilize the system, including importers, exporters, 
carriers, customs brokers, and freight forwarders, among other par-
ties. 
(d) INDEPENDENTLY OBTAINED INFORMATION.—Nothing in this 
section shall be construed to limit or otherwise affect the ability 
of a Federal, State, or local government entity, under applicable 
law, to obtain supply chain security information, including any 
information lawfully and properly disclosed generally or broadly 
to the public and to use such information in any manner permitted 
by law. 
(e) AUTHORITY TO ISSUE WARNINGS.—The Secretary may pro-
vide advisories, alerts, and warnings to relevant companies, tar-
geted sectors, other governmental entities, or the general public 
regarding potential risks to the supply chain as appropriate. In 
issuing a warning, the Secretary shall take appropriate actions 
to protect from disclosure—
(1) the source of any voluntarily submitted supply chain 
security information that forms the basis for the warning; and 
(2) information that is proprietary, business sensitive, 
relates specifically to the submitting person or entity, or is 
otherwise not appropriately in the public domain.
H. R. 4954—37
TITLE III—ADMINISTRATION 
SEC. 301. OFFICE OF CARGO SECURITY POLICY. 
(a) ESTABLISHMENT.—Subtitle C of title IV of the Homeland 
Security Act of 2002 (6 U.S.C. 231 et seq.) is amended by adding 
at the end the following: 
‘‘SEC. 431. OFFICE OF CARGO SECURITY POLICY. 
‘‘(a) ESTABLISHMENT.—There is established within the Depart-
ment an Office of Cargo Security Policy (referred to in this section 
as the ‘Office’). 
‘‘(b) PURPOSE.—The Office shall—
‘‘(1) coordinate all Department policies relating to cargo 
security; and 
‘‘(2) consult with stakeholders and coordinate with other 
Federal agencies in the establishment of standards and regula-
tions and to promote best practices. 
‘‘(c) DIRECTOR.—
‘‘(1) APPOINTMENT.—The Office shall be headed by a 
Director, who shall—
‘‘(A) be appointed by the Secretary; and 
‘‘(B) report to the Assistant Secretary for Policy. 
‘‘(2) RESPONSIBILITIES.—The Director shall—
‘‘(A) advise the Assistant Secretary for Policy in the 
development of Department-wide policies regarding cargo 
security; 
‘‘(B) coordinate all policies relating to cargo security 
among the agencies and offices within the Department 
relating to cargo security; and 
‘‘(C) coordinate the cargo security policies of the 
Department with the policies of other executive agencies.’’. 
(b) DESIGNATION
OF
LIAISON
OFFICE
OF
DEPARTMENT
OF 
STATE.—The Secretary of State shall designate a liaison office 
within the Department of State to assist the Secretary, as appro-
priate, in negotiating cargo security-related international agree-
ments. 
(c) RULE OF CONSTRUCTION.—Nothing in this section shall be 
construed to affect—
(1) the authorities, functions, or capabilities of the Coast 
Guard to perform its missions; or 
(2) the requirement under section 888 of the Homeland 
Security Act (6 U.S.C. 468) that those authorities, functions, 
and capabilities be maintained intact. 
(d) CLERICAL AMENDMENT.—The table of contents of the Home-
land Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by 
inserting after the item relating to section 430 the following:
‘‘Sec. 431. Office of Cargo Security Policy.’’.
SEC. 302. REAUTHORIZATION OF HOMELAND SECURITY SCIENCE AND 
TECHNOLOGY ADVISORY COMMITTEE. 
(a) IN GENERAL.—Section 311(j) of the Homeland Security Act 
of 2002 (6 U.S.C. 191(j)) is amended by striking ‘‘3 years after 
the effective date of this Act’’ and inserting ‘‘on December 31, 
2008’’.
H. R. 4954—38
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall be effective as if enacted on the date of the enactment of 
the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.). 
(c) ADVISORY COMMITTEE.—The Under Secretary for Science 
and Technology shall utilize the Homeland Security Science and 
Technology Advisory Committee, as appropriate, to provide outside 
expertise in advancing cargo security technology. 
SEC. 
303. 
RESEARCH, 
DEVELOPMENT, 
TEST, 
AND 
EVALUATION 
EFFORTS IN FURTHERANCE OF MARITIME AND CARGO 
SECURITY. 
(a) IN GENERAL.—The Secretary shall—
(1) direct research, development, testing, and evaluation 
efforts in furtherance of maritime and cargo security; 
(2) coordinate with public and private sector entities to 
develop and test technologies, and process innovations in fur-
therance of these objectives; and 
(3) evaluate such technologies. 
(b) COORDINATION.—The Secretary, in coordination with the 
Under Secretary for Science and Technology, the Assistant Sec-
retary for Policy, the Commandant of the Coast Guard, the Director 
for Domestic Nuclear Detection, the Chief Financial Officer, and 
the heads of other appropriate offices or entities of the Department, 
shall ensure that—
(1) research, development, testing, and evaluation efforts 
funded by the Department in furtherance of maritime and 
cargo security are coordinated within the Department and with 
other appropriate Federal agencies to avoid duplication of 
efforts; and 
(2) the results of such efforts are shared throughout the 
Department and with other Federal, State, and local agencies, 
as appropriate. 
TITLE IV—AGENCY RESOURCES AND 
OVERSIGHT 
SEC. 401. TRADE AND CUSTOMS REVENUE FUNCTIONS OF THE 
DEPARTMENT. 
(a) TRADE AND CUSTOMS REVENUE FUNCTIONS.—
(1) DESIGNATION OF APPROPRIATE OFFICIAL.—The Secretary 
shall designate an appropriate senior official in the office of 
the Secretary who shall—
(A) ensure that the trade and customs revenue func-
tions of the Department are coordinated within the Depart-
ment and with other Federal departments and agencies, 
and that the impact on legitimate trade is taken into 
account in any action impacting the functions; and 
(B) monitor and report to Congress on the Depart-
ment’s mandate to ensure that the trade and customs 
revenue functions of the Department are not diminished, 
including how spending, operations, and personnel related 
to these functions have kept pace with the level of trade 
entering the United States. 
(2) DIRECTOR OF TRADE POLICY.—There shall be a Director 
of Trade Policy (in this subsection referred to as the ‘‘Director’’),
H. R. 4954—39
who shall be subject to the direction and control of the official 
designated pursuant to paragraph (1). The Director shall—
(A) advise the official designated pursuant to para-
graph (1) regarding all aspects of Department policies 
relating to the trade and customs revenue functions of 
the Department; 
(B) coordinate the development of Department-wide 
policies regarding trade and customs revenue functions 
and trade facilitation; and 
(C) coordinate the trade and customs revenue-related 
policies of the Department with the policies of other Federal 
departments and agencies. 
(b) STUDY; REPORT.—
(1) IN GENERAL.—The Comptroller General of the United 
States shall conduct a study evaluating the extent to which 
the Department of Homeland Security is meeting its obligations 
under section 412(b) of the Homeland Security Act of 2002 
(6 U.S.C. 212(b)) with respect to the maintenance of customs 
revenue functions. 
(2) ANALYSIS.—The study shall include an analysis of—
(A) the extent to which the customs revenue functions 
carried out by the former United States Customs Service 
have been consolidated with other functions of the Depart-
ment (including the assignment of noncustoms revenue 
functions to personnel responsible for customs revenue 
collection), discontinued, or diminished following the 
transfer of the United States Customs Service to the 
Department; 
(B) the extent to which staffing levels or resources 
attributable to customs revenue functions have decreased 
since the transfer of the United States Customs Service 
to the Department; and 
(C) the extent to which the management structure 
created by the Department ensures effective trade facilita-
tion and customs revenue collection. 
(3) REPORT.—Not later than 180 days after the date of 
the enactment of this Act, the Comptroller General shall submit 
to the appropriate congressional committees a report on the 
results of the study conducted under subsection (a). 
(4) MAINTENANCE
OF
FUNCTIONS.—Not later than Sep-
tember 30, 2007, the Secretary shall ensure that the require-
ments of section 412(b) of the Homeland Security Act of 2002 
(6 U.S.C. 212(b)) are fully satisfied and shall report to the 
Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives regarding 
implementation of this paragraph. 
(5) DEFINITION.—In this section, the term ‘‘customs revenue 
functions’’ means the functions described in section 412(b)(2) 
of the Homeland Security Act of 2002 (6 U.S.C. 212(b)(2)). 
(c) CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNC-
TIONS.—
(1) BUSINESS COMMUNITY CONSULTATIONS.—The Secretary 
shall consult with representatives of the business community 
involved in international trade, including seeking the advice 
and recommendations of the Commercial Operations Advisory 
Committee, on Department policies and actions that have a
H. R. 4954—40
significant impact on international trade and customs revenue 
functions. 
(2) CONGRESSIONAL CONSULTATION AND NOTIFICATION.—
(A) IN GENERAL.—Subject to subparagraph (B), the Sec-
retary shall notify the appropriate congressional commit-
tees not later than 30 days prior to the finalization of 
any Department policies, initiatives, or actions that will 
have a major impact on trade and customs revenue func-
tions. Such notifications shall include a description of the 
proposed policies, initiatives, or actions and any comments 
or recommendations provided by the Commercial Oper-
ations Advisory Committee and other relevant groups 
regarding the proposed policies, initiatives, or actions. 
(B) EXCEPTION.—If the Secretary determines that it 
is important to the national security interest of the United 
States to finalize any Department policies, initiatives, or 
actions prior to the consultation described in subparagraph 
(A), the Secretary shall—
(i) notify and provide any recommendations of the 
Commercial Operations Advisory Committee received 
to the appropriate congressional committees not later 
than 45 days after the date on which the policies, 
initiatives, or actions are finalized; and 
(ii) to the extent appropriate, modify the policies, 
initiatives, or actions based upon the consultations 
with the appropriate congressional committees. 
(d) NOTIFICATION OF REORGANIZATION OF CUSTOMS REVENUE 
FUNCTIONS.—
(1) IN GENERAL.—Not less than 45 days prior to any change 
in the organization of any of the customs revenue functions 
of the Department, the Secretary shall notify the Committee 
on Appropriations, the Committee on Finance, and the Com-
mittee on Homeland Security and Governmental Affairs of the 
Senate, and the Committee on Appropriations, the Committee 
on Homeland Security, and the Committee on Ways and Means 
of the House of Representatives of the specific assets, functions, 
or personnel to be transferred as part of such reorganization, 
and the reason for such transfer. The notification shall also 
include—
(A) an explanation of how trade enforcement functions 
will be impacted by the reorganization; 
(B) an explanation of how the reorganization meets 
the requirements of section 412(b) of the Homeland Secu-
rity Act of 2002 (6 U.S.C. 212(b)) that the Department 
not diminish the customs revenue and trade facilitation 
functions formerly performed by the United States Customs 
Service; and 
(C) any comments or recommendations provided by 
the Commercial Operations Advisory Committee regarding 
such reorganization. 
(2) ANALYSIS.—Any congressional committee referred to in 
paragraph (1) may request that the Commercial Operations 
Advisory Committee provide a report to the committee ana-
lyzing the impact of the reorganization and providing any rec-
ommendations for modifying the reorganization. 
(3) REPORT.—Not later than 1 year after any reorganization 
referred to in paragraph (1) takes place, the Secretary, in
H. R. 4954—41
consultation with the Commercial Operations Advisory Com-
mittee, shall submit a report to the Committee on Finance 
of the Senate and the Committee on Ways and Means of the 
House of Representatives. Such report shall include an assess-
ment of the impact of, and any suggested modifications to, 
such reorganization. 
SEC. 402. OFFICE OF INTERNATIONAL TRADE; OVERSIGHT. 
Section 2 of the Act of March 3, 1927 (44 Stat. 1381, chapter 
348; 19 U.S.C. 2072), is amended by adding at the end the following: 
‘‘(d) OFFICE OF INTERNATIONAL TRADE.—
‘‘(1) ESTABLISHMENT.—There is established within the 
United States Customs and Border Protection an Office of 
International Trade that shall be headed by an Assistant 
Commissioner. 
‘‘(2) TRANSFER
OF
ASSETS, FUNCTIONS, AND
PERSONNEL; 
ELIMINATION OF OFFICES.—
‘‘(A) OFFICE OF STRATEGIC TRADE.—
‘‘(i) IN
GENERAL.—Not later than 90 days after 
the date of the enactment of the SAFE Port Act, the 
Commissioner shall transfer the assets, functions, and 
personnel of the Office of Strategic Trade to the Office 
of International Trade established pursuant to para-
graph (1) and the Office of Strategic Trade shall be 
abolished. 
‘‘(ii) LIMITATION
ON
FUNDS.—No funds appro-
priated to the United States Customs and Border 
Protection may be used to transfer the assets, func-
tions, or personnel of the Office of Strategic Trade, 
to an office other than the office established pursuant 
to paragraph (1) of this subsection. 
‘‘(B) OFFICE OF REGULATIONS AND RULINGS.—
‘‘(i) IN
GENERAL.—Not later than 90 days after 
the date of the enactment of the SAFE Port Act, the 
Commissioner shall transfer the assets, functions, and 
personnel of the Office of Regulations and Rulings 
to the Office of International Trade established pursu-
ant to paragraph (1) and the Office of Regulations 
and Rulings shall be abolished. 
‘‘(ii) LIMITATION
ON
FUNDS.—No funds appro-
priated to the United States Customs and Border 
Protection may be used to transfer the assets, func-
tions, or personnel of the Office of Regulations and 
Rulings, to an office other than the office established 
pursuant to paragraph (1) of this subsection. 
‘‘(C) OTHER TRANSFERS.—The Commissioner is author-
ized to transfer any other assets, functions, or personnel 
within the United States Customs and Border Protection 
to the Office of International Trade established pursuant 
to paragraph (1). Not less than 45 days prior to each 
such transfer, the Commissioner shall notify the Committee 
on Appropriations, the Committee on Finance, and the 
Committee on Homeland Security and Governmental 
Affairs of the Senate and the Committee on Appropriations, 
the Committee on Homeland Security, and the Committee 
on Ways and Means of the House of Representatives of 
the specific assets, functions, or personnel to be transferred,
H. R. 4954—42
and the reason for such transfer. Such notification shall 
also include—
‘‘(i) an explanation of how trade enforcement func-
tions will be impacted by the reorganization; 
‘‘(ii) an explanation of how the reorganization 
meets the requirements of section 412(b) of the Home-
land Security Act of 2002 (6 U.S.C. 212(b)) that the 
Department of Homeland Security not diminish the 
customs revenue and trade facilitation functions for-
merly performed by the United States Customs Service; 
and 
‘‘(iii) any comments or recommendations provided 
by the Commercial Operations Advisory Committee 
regarding such reorganization. 
‘‘(D) REPORT.—Not later than 1 year after any reorga-
nization pursuant to subparagraph (C) takes place, the 
Commissioner, in consultation with the Commercial Oper-
ations Advisory Committee, shall report to the Committee 
on Finance of the Senate and the Committee on Ways 
and Means of the House of Representatives. Such report 
shall include an assessment of the impact of, and any 
suggested modifications to, such reorganization. 
‘‘(E) LIMITATION ON AUTHORITY.—Notwithstanding any 
other provision of law, the Commissioner shall not transfer 
any assets, functions, or personnel from United States ports 
of entry, associated with the enforcement of laws relating 
to trade in textiles and apparel, to the Office of Inter-
national Trade established pursuant to paragraph (1), until 
the following conditions are met: 
‘‘(i) The Commissioner submits the initial Resource 
Allocation Model required by section 301(h) of the Cus-
toms and Procedural Reform and Simplification Act 
of 1978 (19 U.S.C. 2075) and includes in such Resource 
Allocation Model a section addressing the allocation 
of assets, functions, and personnel associated with the 
enforcement of laws relating to trade in textiles and 
apparel. 
‘‘(ii) The Commissioner consults with the Com-
mittee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives 
regarding any subsequent transfer of assets, functions, 
or personnel associated with the enforcement of laws 
relating to trade in textiles and apparel, not less than 
45 days prior to such transfer. 
‘‘(F) LIMITATION ON APPROPRIATIONS.—No funds appro-
priated to the United States Customs and Border Protection 
may be used to transfer the assets, functions, or personnel 
associated with the enforcement of laws relating to trade 
in textiles and apparel, before the Commissioner consults 
with the congressional committees pursuant to subpara-
graph (E)(ii). 
‘‘(e) INTERNATIONAL TRADE COMMITTEE.—
‘‘(1) ESTABLISHMENT.—The Commissioner shall establish 
an International Trade Committee, to be chaired by the 
Commissioner, and to include the Deputy Commissioner, the 
Assistant Commissioner in the Office of Field Operations, the 
Assistant Commissioner in the Office of Finance, the Assistant
H. R. 4954—43
Commissioner in the Office of International Affairs, the Assist-
ant Commissioner in the Office of International Trade, the 
Director of the Office of Trade Relations, and any other official 
determined by the Commissioner to be important to the work 
of the Committee. 
‘‘(2) RESPONSIBILITIES.—The International Trade Com-
mittee shall—
‘‘(A) be responsible for advising the Commissioner with 
respect to the commercial customs and trade facilitation 
functions of the United States Customs and Border Protec-
tion; 
‘‘(B) assist the Commissioner in coordinating with the 
Secretary regarding commercial customs and trade facilita-
tion functions; and 
‘‘(C) oversee the operation of all programs and systems 
that are involved in the assessment and collection of duties, 
bonds, and other charges or penalties associated with the 
entry of cargo into the United States, or the export of 
cargo from the United States, including the administration 
of duty drawback and the collection of antidumping and 
countervailing duties. 
‘‘(3) ANNUAL REPORT.—Not later than 30 days after the 
end of each fiscal year, the International Trade Committee 
shall submit a report to the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House 
of Representatives. The report shall—
‘‘(A) detail the activities of the International Trade 
Committee during the preceding fiscal year; and 
‘‘(B) identify the priorities of the International Trade 
Committee for the fiscal year in which the report is filed. 
‘‘(f) DEFINITION.—In this section: 
‘‘(1) COMMISSIONER.—The term ‘Commissioner’ means the 
Commissioner responsible for the United States Customs and 
Border Protection in the Department of Homeland Security. 
‘‘(2) COMMERCIAL OPERATIONS ADVISORY COMMITTEE.—The 
term ‘Commercial Operations Advisory Committee’ means the 
Advisory Committee established pursuant to section 9503(c) 
of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 
2071 note) or any successor committee.’’. 
SEC. 403. RESOURCES. 
Section 301 of the Customs Procedural Reform and Simplifica-
tion Act of 1978 (19 U.S.C. 2075) is amended by adding at the 
end the following: 
‘‘(h) RESOURCE ALLOCATION MODEL.—
‘‘(1) RESOURCE ALLOCATION MODEL.—Not later than June 
30, 2007, and every 2 years thereafter, the Commissioner shall 
prepare and submit to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of Rep-
resentatives a Resource Allocation Model to determine the 
optimal staffing levels required to carry out the commercial 
operations of United States Customs and Border Protection, 
including commercial inspection and release of cargo and the 
revenue functions described in section 412(b)(2) of the Home-
land Security Act of 2002 (6 U.S.C. 212(b)(2)). The Model shall 
comply with the requirements of section 412(b)(1) of such Act 
and shall take into account previous staffing models, historic
H. R. 4954—44
and projected trade volumes, and trends. The Resource Alloca-
tion Model shall apply both risk-based and random sampling 
approaches for determining adequate staffing needs for priority 
trade functions, including—
‘‘(A) performing revenue functions; 
‘‘(B) enforcing antidumping and countervailing duty 
laws; 
‘‘(C) protecting intellectual property rights; 
‘‘(D) enforcing provisions of law relating to trade in 
textiles and apparel; 
‘‘(E) conducting agricultural inspections; 
‘‘(F) enforcing fines, penalties, and forfeitures; and 
‘‘(G) facilitating trade. 
‘‘(2) PERSONNEL.—
‘‘(A) IN GENERAL.—Not later than September 30, 2007, 
the Commissioner shall ensure that the requirements of 
section 412(b) of the Homeland Security Act of 2002 (6 
U.S.C. 212(b)) are fully satisfied and shall report to the 
Committee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives 
regarding the implementation of this subparagraph. 
‘‘(B) CUSTOMS
AND
BORDER
PROTECTION
OFFICERS.—
The initial Resource Allocation Model required pursuant 
to paragraph (1) shall provide for the hiring of a minimum 
of 200 additional Customs and Border Protection Officers 
per year for each of the fiscal years 2008 through 2012. 
The Commissioner shall hire such additional Officers sub-
ject to the appropriation of funds to pay for the salaries 
and expenses of such Officers. In assigning the 1,000 addi-
tional Officers authorized by this subparagraph, the 
Commissioner shall—
‘‘(i) consider the volume of trade and the incidence 
of nonvoluntarily disclosed customs and trade law vio-
lations in addition to security priorities among United 
States ports of entry; and 
‘‘(ii) before October 1, 2010, assign at least 10 
additional Officers among each service port and the 
ports of entry serviced by such service port, except 
as provided in subparagraph (C). 
‘‘(C) ASSIGNMENT.—In assigning such Officers pursuant 
to subparagraph (B), the Commissioner shall consult with 
the port directors of each service port and the other ports 
of entry serviced by such service port. The Commissioner 
shall not assign an Officer to a port of entry pursuant 
to subparagraph (B)(ii) if the port director of the service 
port that services such port of entry certifies to the 
Commissioner that an additional Officer is not needed at 
such port of entry. 
‘‘(D) REPORT.—Not later than 60 days after the begin-
ning of each of the fiscal years 2008 through 2012, the 
Commissioner shall submit a report to the Committee on 
Finance of the Senate, the Committee on Homeland Secu-
rity and Governmental Affairs of the Senate, the Committee 
on Homeland Security of the House of Representatives, 
and the Committee on Ways and Means of the House 
of Representatives, that describes how the additional Offi-
cers authorized under subparagraph (B) will be allocated
H. R. 4954—45
among the ports of entry in the United States in accordance 
with subparagraph (C). 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.—In addition to 
any monies hereafter appropriated to United States Customs 
and Border Protection in the Department of Homeland Security, 
there are authorized to be appropriated for the purpose of 
meeting the requirements of paragraph (2)(B), to remain avail-
able until expended—
‘‘(A) $36,000,000 for fiscal year 2008; 
‘‘(B) $75,000,000 for fiscal year 2009; 
‘‘(C) $118,000,000 for fiscal year 2010; 
‘‘(D) $165,000,000 for fiscal year 2011; and 
‘‘(E) $217,000,000 for fiscal year 2012. 
‘‘(4) REPORT.—Not later than 30 days after the end of 
each fiscal year, the Commissioner shall report to the Com-
mittee on Finance of the Senate and the Committee on Ways 
and Means of the House of Representatives on the resources 
directed to commercial and trade facilitation functions within 
the Office of Field Operations for the preceding fiscal year. 
Such information shall be reported for each category of per-
sonnel within the Office of Field Operations. 
‘‘(5) REGULATIONS TO IMPLEMENT TRADE AGREEMENTS.—Not 
later than 30 days after the date of the enactment of the 
SAFE Port Act, the Commissioner shall designate and maintain 
not less than 5 attorneys within the Office of International 
Trade established pursuant to section 2 of the Act of March 
3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072), with 
responsibility for the prompt development and promulgation 
of regulations necessary to implement any trade agreement 
entered into by the United States, in addition to any other 
responsibilities assigned by the Commissioner. 
‘‘(6) DEFINITION.—In this subsection, the term ‘Commis-
sioner’ means the Commissioner responsible for United States 
Customs and Border Protection in the Department of Homeland 
Security.’’. 
SEC. 404. NEGOTIATIONS. 
Section 629 of the Tariff Act of 1930 (19 U.S.C. 1629) is 
amended by adding at the end the following: 
‘‘(h) CUSTOMS PROCEDURES AND COMMITMENTS.—
‘‘(1) IN GENERAL.—The Secretary of Homeland Security, 
the United States Trade Representative, and other appropriate 
Federal officials shall work through appropriate international 
organizations including the World Customs Organization 
(WCO), the World Trade Organization (WTO), the International 
Maritime Organization, and the Asia-Pacific Economic Coopera-
tion, to align, to the extent practicable, customs procedures, 
standards, requirements, and commitments in order to facilitate 
the efficient flow of international trade. 
‘‘(2) UNITED STATES TRADE REPRESENTATIVE.—
‘‘(A) IN GENERAL.—The United States Trade Represent-
ative shall seek commitments in negotiations in the WTO 
regarding the articles of GATT 1994 that are described 
in subparagraph (B) that make progress in achieving—
‘‘(i) harmonization of import and export data col-
lected by WTO members for customs purposes, to the 
extent practicable;
H. R. 4954—46
‘‘(ii) enhanced procedural fairness and trans-
parency with respect to the regulation of imports and 
exports by WTO members; 
‘‘(iii) transparent standards for the efficient release 
of cargo by WTO members, to the extent practicable; 
and 
‘‘(iv) the protection of confidential commercial data. 
‘‘(B) ARTICLES DESCRIBED.—The articles of the GATT 
1994 described in this subparagraph are the following: 
‘‘(i) Article V (relating to transit). 
‘‘(ii) Article VIII (relating to fees and formalities 
associated with importation and exportation). 
‘‘(iii) Article X (relating to publication and adminis-
tration of trade regulations). 
‘‘(C) GATT 1994.—The term ‘GATT 1994’ means the 
General Agreement on Tariff and Trade annexed to the 
WTO Agreement. 
‘‘(3) CUSTOMS.—The Secretary of Homeland Security, acting 
through the Commissioner and in consultation with the United 
States Trade Representative, shall work with the WCO to facili-
tate the efficient flow of international trade, taking into account 
existing international agreements and the negotiating objec-
tives of the WTO. The Commissioner shall work to—
‘‘(A) harmonize, to the extent practicable, import data 
collected by WCO members for customs purposes; 
‘‘(B) automate and harmonize, to the extent practicable, 
the collection and storage of commercial data by WCO 
members; 
‘‘(C) develop, to the extent practicable, transparent 
standards for the release of cargo by WCO members; 
‘‘(D) develop and harmonize, to the extent practicable, 
standards, technologies, and protocols for physical or non-
intrusive examinations that will facilitate the efficient flow 
of international trade; and 
‘‘(E) ensure the protection of confidential commercial 
data. 
‘‘(4) DEFINITION.—In this subsection, the term ‘Commis-
sioner’ means the Commissioner responsible for the United 
States Customs and Border Protection in the Department of 
Homeland Security.’’. 
SEC. 405. INTERNATIONAL TRADE DATA SYSTEM. 
Section 411 of the Tariff Act of 1930 (19 U.S.C. 1411) is 
amended by adding at the end the following: 
‘‘(d) INTERNATIONAL TRADE DATA SYSTEM.—
‘‘(1) ESTABLISHMENT.—
‘‘(A) IN GENERAL.—The Secretary of the Treasury (in 
this subsection, referred to as the ‘Secretary’) shall oversee 
the establishment of an electronic trade data interchange 
system to be known as the ‘International Trade Data 
System’ (ITDS). The ITDS shall be implemented not later 
than the date that the Automated Commercial Environ-
ment (commonly referred to as ‘ACE’) is fully implemented. 
‘‘(B) PURPOSE.—The purpose of the ITDS is to eliminate 
redundant information requirements, to efficiently regulate 
the flow of commerce, and to effectively enforce laws and 
regulations relating to international trade, by establishing
H. R. 4954—47
a single portal system, operated by the United States Cus-
toms and Border Protection, for the collection and distribu-
tion of standard electronic import and export data required 
by all participating Federal agencies. 
‘‘(C) PARTICIPATION.—
‘‘(i) IN GENERAL.—All Federal agencies that require 
documentation for clearing or licensing the importation 
and exportation of cargo shall participate in the ITDS. 
‘‘(ii) WAIVER.—The Director of the Office of 
Management and Budget may waive, in whole or in 
part, the requirement for participation for any Federal 
agency based on the vital national interest of the 
United States. 
‘‘(D) CONSULTATION.—The Secretary shall consult with 
and assist the United States Customs and Border Protec-
tion and other agencies in the transition from paper to 
electronic format for the submission, issuance, and storage 
of documents relating to data required to enter cargo into 
the United States. In so doing, the Secretary shall also 
consult with private sector stakeholders, including the 
Commercial Operations Advisory Committee, in developing 
uniform data submission requirements, procedures, and 
schedules, for the ITDS. 
‘‘(E) COORDINATION.—The Secretary shall be respon-
sible for coordinating the operation of the ITDS among 
the participating agencies and the office within the United 
States Customs and Border Protection that is responsible 
for maintaining the ITDS. 
‘‘(2) DATA ELEMENTS.—
‘‘(A) IN
GENERAL.—The Interagency Steering Com-
mittee (established under paragraph (3)) shall, in consulta-
tion with the agencies participating in the ITDS, define 
the standard set of data elements to be collected, stored, 
and shared in the ITDS, consistent with laws applicable 
to the collection and protection of import and export 
information. The Interagency Steering Committee shall 
periodically review the data elements in order to update 
the standard set of data elements, as necessary. 
‘‘(B) COMMITMENTS
AND
OBLIGATIONS.—The Inter-
agency Steering Committee shall ensure that the ITDS 
data requirements are compatible with the commitments 
and obligations of the United States as a member of the 
World Customs Organization (WCO) and the World Trade 
Organization (WTO) for the entry and movement of cargo. 
‘‘(3) INTERAGENCY STEERING COMMITTEE.—There is estab-
lished an Interagency Steering Committee (in this section, 
referred to as the ‘Committee’). The members of the Committee 
shall include the Secretary (who shall serve as the chairperson 
of the Committee), the Director of the Office of Management 
and Budget, and the head of each agency participating in 
the ITDS. The Committee shall assist the Secretary in over-
seeing the implementation of, and participation in, the ITDS. 
‘‘(4) REPORT.—The President shall submit a report before 
the end of each fiscal year to the Committee on Finance of 
the Senate and the Committee on Ways and Means of the 
House of Representatives. Each report shall include information 
on—
H. R. 4954—48
‘‘(A) the status of the ITDS implementation; 
‘‘(B) the extent of participation in the ITDS by Federal 
agencies; 
‘‘(C) the remaining barriers to any agency’s participa-
tion; 
‘‘(D) the consistency of the ITDS with applicable stand-
ards established by the World Customs Organization and 
the World Trade Organization; 
‘‘(E) recommendations for technological and other 
improvements to the ITDS; and 
‘‘(F) the status of the development, implementation, 
and management of the Automated Commercial Environ-
ment within the United States Customs and Border Protec-
tion. 
‘‘(5) SENSE OF CONGRESS.—It is the sense of Congress that 
agency participation in the ITDS is an important priority of 
the Federal Government and that the Secretary shall coordinate 
the operation of the ITDS closely among the participating agen-
cies and the office within the United States Customs and Border 
Protection that is responsible for maintaining the ITDS. 
‘‘(6) CONSTRUCTION.—Nothing in this section shall be con-
strued as amending or modifying subsection (g) of section 301 
of title 13, United States Code. 
‘‘(7) 
DEFINITION.—The 
term 
‘Commercial 
Operations 
Advisory Committee’ means the Advisory Committee estab-
lished pursuant to section 9503(c) of the Omnibus Budget Rec-
onciliation Act of 1987 (19 U.S.C. 2071 note) or any successor 
committee.’’. 
SEC. 406. IN-BOND CARGO. 
Title IV of the Tariff Act of 1930 is amended by inserting 
after section 553 the following: 
‘‘SEC. 553A. REPORT ON IN-BOND CARGO. 
‘‘(a) REPORT.—Not later than June 30, 2007, the Commissioner 
shall submit a report to the Committee on Commerce, Science, 
and Transportation of the Senate, the Committee on Finance of 
the Senate, the Committee on Homeland Security and Govern-
mental Affairs of the Senate, the Committee on Homeland Security 
of the House of Representatives, the Committee on Transportation 
and Infrastructure of the House of Representatives, and the Com-
mittee on Ways and Means of the House of Representatives that 
includes—
‘‘(1) a plan for closing in-bond entries at the port of arrival; 
‘‘(2) an assessment of the personnel required to ensure 
100 percent reconciliation of in-bond entries between the port 
of arrival and the port of destination or exportation; 
‘‘(3) an assessment of the status of investigations of overdue 
in-bond shipments and an evaluation of the resources required 
to ensure adequate investigation of overdue in-bond shipments; 
‘‘(4) a plan for tracking in-bond cargo within the Automated 
Commercial Environment (ACE); 
‘‘(5) an assessment of whether any particular technologies 
should be required in the transport of in-bond cargo; 
‘‘(6) an assessment of whether ports of arrival should 
require any additional information regarding shipments of in-
bond cargo;