(D) to create pathways, within and among 
the appropriate Federal agencies, for qualified 
persons that demonstrate the highest levels of 
compliance to receive immediate clearance ab-
sent information that a transaction may pose a 
national security or compliance threat; and 
(5) ensure that trade benefits are provided to 
participants in partnership programs. 
(c) REPORT REQUIRED.—Not later than the date 
that is 180 days after the date of the enactment of this 
Act, and December 31 of each year thereafter, the Com-
missioner shall submit to the Committee on Finance of 
the Senate and the Committee on Ways and Means of the 
House of Representatives a report that— 
(1) identifies each partnership program referred 
to in subsection (a); 
(2) for each such program, identifies— 
(A) the requirements for participants in 
the program; 
(B) the commercially significant and meas-
urable trade benefits provided to participants in 
the program; 
(C) the number of participants in the pro-
gram; and 
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(D) in the case of a program that provides 
for participation at multiple tiers, the number 
of participants at each such tier; 
(3) identifies the number of participants en-
rolled in more than one such partnership program; 
(4) assesses the effectiveness of each such part-
nership program in advancing the security, trade en-
forcement, and trade facilitation missions of U.S. 
Customs and Border Protection, based on historical 
developments, the level of participation in the pro-
gram, and the evolution of benefits provided to par-
ticipants in the program; 
(5) summarizes the efforts of U.S. Customs and 
Border Protection to work with other Federal agen-
cies with authority to detain and release merchan-
dise entering the United States to ensure that part-
nership programs of those agencies are compatible 
with partnership programs of U.S. Customs and 
Border Protection; 
(6) summarizes criteria developed with those 
agencies for authorizing the release, on an expedited 
basis, of merchandise for which documentation is re-
quired from one or more of those agencies to clear 
or license the merchandise for entry into the United 
States; 
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(7) summarizes the efforts of U.S. Customs and 
Border Protection to work with private sector enti-
ties and the public to develop and improve partner-
ship programs referred to in subsection (a); 
(8) describes measures taken by U.S. Customs 
and Border Protection to make private sector enti-
ties aware of the trade benefits available to partici-
pants in such programs; and 
(9) summarizes the plans, targets, and goals of 
U.S. Customs and Border Protection with respect to 
such programs for the 2 years following the submis-
sion of the report. 
SEC. 102. REPORT ON EFFECTIVENESS OF TRADE EN-
FORCEMENT ACTIVITIES. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Comptroller General 
of the United States shall submit to the Committee on 
Finance of the Senate and the Committee on Ways and 
Means of the House of Representatives a report on the 
effectiveness of trade enforcement activities of U.S. Cus-
toms and Border Protection. 
(b) CONTENTS.—The report required by subsection 
(a) shall include— 
(1) a description of the use of resources, results 
of audits and verifications, targeting, organization, 
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and training of personnel of U.S. Customs and Bor-
der Protection; and 
(2) a description of trade enforcement activities 
to address undervaluation, transshipment, legitimacy 
of entities making entry, protection of revenues, 
fraud prevention and detection, and penalties, in-
cluding 
intentional 
misclassification, 
inadequate 
bonding, and other misrepresentations. 
SEC. 103. PRIORITIES AND PERFORMANCE STANDARDS 
FOR CUSTOMS MODERNIZATION, TRADE FA-
CILITATION, 
AND 
TRADE 
ENFORCEMENT 
FUNCTIONS AND PROGRAMS. 
(a) PRIORITIES AND PERFORMANCE STANDARDS.— 
(1) IN GENERAL.—The Commissioner, in con-
sultation with the Committee on Finance of the Sen-
ate and the Committee on Ways and Means of the 
House of Representatives, shall establish priorities 
and performance standards to measure the develop-
ment and levels of achievement of the customs mod-
ernization, trade facilitation, and trade enforcement 
functions and programs described in subsection (b). 
(2) MINIMUM PRIORITIES AND STANDARDS.— 
Such priorities and performance standards shall, at 
a minimum, include priorities and standards relating 
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to efficiency, outcome, output, and other types of ap-
plicable measures. 
(b) FUNCTIONS AND PROGRAMS DESCRIBED.—The 
functions and programs referred to in subsection (a) are 
the following: 
(1) The Automated Commercial Environment. 
(2) Each of the priority trade issues described 
in paragraph (3)(B)(ii) of section 2(d) of the Act of 
March 3, 1927 (44 Stat. 1381, chapter 348; 19 
U.S.C. 2072(d)), as added by section 111(a) of this 
Act. 
(3) The Centers of Excellence and Expertise de-
scribed in section 110 of this Act. 
(4) Drawback for exported merchandise under 
section 313 of the Tariff Act of 1930 (19 U.S.C. 
1313), as amended by section 406 of this Act. 
(5) Transactions relating to imported merchan-
dise in bond. 
(6) Collection of countervailing duties assessed 
under subtitle A of title VII of the Tariff Act of 
1930 (19 U.S.C. 1671 et seq.) and antidumping du-
ties assessed under subtitle B of title VII of the Tar-
iff Act of 1930 (19 U.S.C. 1673 et seq.). 
(7) The expedited clearance of cargo. 
(8) The issuance of regulations and rulings. 
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(9) The issuance of Regulatory Audit Reports. 
(c) CONSULTATIONS AND NOTIFICATION.— 
(1) CONSULTATIONS.—The consultations re-
quired by subsection (a)(1) shall occur, at a min-
imum, on an annual basis. 
(2) NOTIFICATION.—The Commissioner shall 
notify the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of 
Representatives of any changes to the priorities re-
ferred to in subsection (a) not later than 30 days be-
fore such changes are to take effect. 
SEC. 104. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS 
TO CLASSIFY AND APPRAISE IMPORTED AR-
TICLES, TO IMPROVE TRADE ENFORCEMENT 
EFFORTS, AND TO OTHERWISE FACILITATE 
LEGITIMATE INTERNATIONAL TRADE. 
(a) IN GENERAL.— 
(1) ESTABLISHMENT.—The Commissioner and 
the Director shall establish and carry out on a fiscal 
year basis educational seminars to— 
(A) improve the ability of U.S. Customs 
and Border Protection personnel to classify and 
appraise articles imported into the United 
States in accordance with the customs and 
trade laws of the United States; 
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(B) improve the trade enforcement efforts 
of U.S. Customs and Border Protection per-
sonnel and U.S. Immigration and Customs En-
forcement personnel; and 
(C) otherwise improve the ability and effec-
tiveness of U.S. Customs and Border Protection 
personnel and U.S. Immigration and Customs 
Enforcement personnel to facilitate legitimate 
international trade. 
(b) CONTENT.— 
(1) CLASSIFYING AND APPRAISING IMPORTED 
ARTICLES.—In carrying out subsection (a)(1)(A), 
the Commissioner, the Director, and interested par-
ties in the private sector selected under subsection 
(c) shall provide instruction and related instructional 
materials at each educational seminar under this 
section to U.S. Customs and Border Protection per-
sonnel and, as appropriate, to U.S. Immigration and 
Customs Enforcement personnel on the following: 
(A) Conducting a physical inspection of an 
article imported into the United States, includ-
ing testing of samples of the article, to deter-
mine if the article is mislabeled in the manifest 
or other accompanying documentation. 
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(B) Reviewing the manifest and other ac-
companying documentation of an article im-
ported into the United States to determine if 
the country of origin of the article listed in the 
manifest or other accompanying documentation 
is accurate. 
(C) Customs valuation. 
(D) Industry supply chains and other re-
lated matters as determined to be appropriate 
by the Commissioner. 
(2) TRADE ENFORCEMENT EFFORTS.—In car-
rying out subsection (a)(1)(B), the Commissioner, 
the Director, and interested parties in the private 
sector selected under subsection (c) shall provide in-
struction and related instructional materials at each 
educational seminar under this section to U.S. Cus-
toms and Border Protection personnel and, as ap-
propriate, to U.S. Immigration and Customs En-
forcement personnel to identify opportunities to en-
hance enforcement of the following: 
(A) Collection of countervailing duties as-
sessed under subtitle A of title VII of the Tariff 
Act of 1930 (19 U.S.C. 1671 et seq.) and anti-
dumping duties assessed under subtitle B of 
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title VII of the Tariff Act of 1930 (19 U.S.C. 
1673 et seq.). 
(B) Addressing evasion of duties on im-
ports of textiles. 
(C) Protection of intellectual property 
rights. 
(D) Enforcement of child labor laws. 
(3) APPROVAL OF COMMISSIONER AND DIREC-
TOR.—The instruction and related instructional ma-
terials at each educational seminar under this sec-
tion shall be subject to the approval of the Commis-
sioner and the Director. 
(c) SELECTION PROCESS.— 
(1) IN GENERAL.—The Commissioner shall es-
tablish a process to solicit, evaluate, and select inter-
ested parties in the private sector for purposes of as-
sisting in providing instruction and related instruc-
tional materials described in subsection (b) at each 
educational seminar under this section. 
(2) CRITERIA.—The Commissioner shall evalu-
ate and select interested parties in the private sector 
under the process established under paragraph (1) 
based on— 
(A) availability and usefulness; 
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(B) the volume, value, and incidence of 
mislabeling or misidentification of origin of im-
ported articles; and 
(C) other appropriate criteria established 
by the Commissioner. 
(3) PUBLIC AVAILABILITY.—The Commissioner 
and the Director shall publish in the Federal Reg-
ister a detailed description of the process established 
under paragraph (1) and the criteria established 
under paragraph (2). 
(d) SPECIAL RULE FOR ANTIDUMPING AND COUN-
TERVAILING DUTY ORDERS.— 
(1) IN GENERAL.—The Commissioner shall give 
due consideration to carrying out an educational 
seminar under this section in whole or in part to im-
prove the ability of U.S. Customs and Border Pro-
tection personnel to enforce a countervailing or anti-
dumping duty order issued under section 706 or 736 
of the Tariff Act of 1930 (19 U.S.C. 1671e or 
1673e) upon the request of a petitioner in an action 
underlying such countervailing or antidumping duty 
order. 
(2) INTERESTED
PARTY.—A petitioner de-
scribed in paragraph (1) shall be treated as an inter-
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ested party in the private sector for purposes of the 
requirements of this section. 
(e) PERFORMANCE STANDARDS.—The Commissioner 
and the Director shall establish performance standards to 
measure the development and level of achievement of edu-
cational seminars under this section. 
(f) REPORTING.—Beginning September 30, 2016, the 
Commissioner and the Director shall submit to the Com-
mittee of Finance of the Senate and the Committee of 
Ways and Means of the House of Representatives an an-
nual report on the effectiveness of educational seminars 
under this section. 
(g) DEFINITIONS.—In this section: 
(1) DIRECTOR.—The term ‘‘Director’’ means 
the Director of U.S. Immigration and Customs En-
forcement. 
(2) 
UNITED
STATES.—The 
term 
‘‘United 
States’’ means the customs territory of the United 
States, as defined in General Note 2 to the Har-
monized Tariff Schedule of the United States. 
(3) U.S. CUSTOMS AND BORDER PROTECTION 
PERSONNEL.—The term ‘‘U.S. Customs and Border 
Protection personnel’’ means import specialists, 
auditors, and other appropriate employees of the 
U.S. Customs and Border Protection. 
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(4) U.S. IMMIGRATION AND CUSTOMS ENFORCE-
MENT PERSONNEL.—The term ‘‘U.S. Immigrations 
and Customs Enforcement personnel’’ means Home-
land Security Investigations Directorate personnel 
and other appropriate employees of U.S. Immigra-
tions and Customs Enforcement. 
SEC. 105. JOINT STRATEGIC PLAN. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, and every 2 years there-
after, the Commissioner and the Director of U.S. Immi-
gration and Customs Enforcement shall jointly develop 
and submit to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of 
Representatives, a joint strategic plan. 
(b) CONTENTS.—The joint strategic plan required 
under this section shall be comprised of a comprehensive 
multi-year plan for trade enforcement and trade facilita-
tion, and shall include— 
(1) a summary of actions taken during the 2- 
year period preceding the submission of the plan to 
improve trade enforcement and trade facilitation, in-
cluding a description and analysis of specific per-
formance measures to evaluate the progress of U.S. 
Customs and Border Protection and U.S. Immigra-
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tion and Customs Enforcement in meeting each such 
responsibility; 
(2) a statement of objectives and plans for fur-
ther improving trade enforcement and trade facilita-
tion; 
(3) a specific identification of the priority trade 
issues described in paragraph (3)(B)(ii) of section 
2(d) of the Act of March 3, 1927 (44 Stat. 1381, 
chapter 348; 19 U.S.C. 2072(d)), as added by sec-
tion 111(a) of this Act, that can be addressed in 
order to enhance trade enforcement and trade facili-
tation, and a description of strategies and plans for 
addressing each such issue; 
(4) a description of efforts made to improve 
consultation and coordination among and within 
Federal agencies, and in particular between U.S. 
Customs and Border Protection and U.S. Immigra-
tion and Customs Enforcement, regarding trade en-
forcement and trade facilitation; 
(5) a description of the training that has oc-
curred to date within U.S. Customs and Border Pro-
tection and U.S. Immigration and Customs Enforce-
ment to improve trade enforcement and trade facili-
tation, including training under section 104 of this 
Act; 
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(6) a description of efforts to work with the 
World Customs Organization and other international 
organizations, in consultation with other Federal 
agencies as appropriate, with respect to enhancing 
trade enforcement and trade facilitation; 
(7) a description of U.S. Custom and Border 
Protection organizational benchmarks for optimizing 
staffing and wait times at ports of entry; 
(8) a specific identification of any domestic or 
international best practices that may further im-
prove trade enforcement and trade facilitation; 
(9) any legislative recommendations to further 
improve trade enforcement and trade facilitation; 
and 
(10) a description of efforts made to improve 
consultation and coordination with the private sector 
to enhance trade enforcement and trade facilitation. 
(c) CONSULTATIONS.— 
(1) IN GENERAL.—In developing the joint stra-
tegic plan required under this section, the Commis-
sioner and the Director shall consult with— 
(A) appropriate officials from the relevant 
Federal agencies, including— 
(i) the Department of the Treasury; 
(ii) the Department of Agriculture; 
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(iii) the Department of Commerce; 
(iv) the Department of Justice; 
(v) the Department of the Interior; 
(vi) the Department of Health and 
Human Services; 
(vii) the Food and Drug Administra-
tion; 
(viii) the Consumer Product Safety 
Commission; and 
(ix) the Office of the United States 
Trade Representative; and 
(B) the Commercial Customs Operations 
Advisory Committee established by section 109 
of this Act. 
(2) OTHER
CONSULTATIONS.—In developing 
the joint strategic plan required under this section, 
the Commissioner and the Director shall seek to 
consult with— 
(A) appropriate officials from relevant for-
eign law enforcement agencies and international 
organizations, including the World Customs Or-
ganization; and 
(B) interested parties in the private sector. 
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SEC. 106. AUTOMATED COMMERCIAL ENVIRONMENT. 
(a) FUNDING.—Section 13031(f)(4)(B) of the Con-
solidated Omnibus Budget Reconciliation Act of 1985 (19 
U.S.C. 58c(f)(4)(B)) is amended— 
(1) by striking ‘‘2003 through 2005’’ and in-
serting ‘‘2016 through 2018’’; 
(2) by striking ‘‘such amounts as are available 
in that Account’’ and inserting ‘‘not less than 
$153,736,000’’; and 
(3) by striking ‘‘for the development’’ and in-
serting ‘‘to complete the development and implemen-
tation’’. 
(b) REPORT.—Section 311(b)(3) of the Customs Bor-
der Security Act of 2002 (19 U.S.C. 2075 note) is amend-
ed to read as follows: 
‘‘(3) REPORT.— 
‘‘(A) IN
GENERAL.—Not later than De-
cember 31, 2016, the Commissioner responsible 
for U.S. Customs and Border Protection shall 
submit to the Committee on Appropriations and 
the Committee on Finance of the Senate and 
the Committee on Appropriations and the Com-
mittee on Ways and Means of the House of 
Representatives a report detailing— 
‘‘(i) U.S. Customs and Border Protec-
tion’s incorporation of all core trade proc-
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essing capabilities, including cargo release, 
entry summary, cargo manifest, cargo fi-
nancial data, and export data elements 
into the Automated Commercial Environ-
ment computer system authorized under 
section 13031(f)(4) of the Consolidated 
Omnibus Budget and Reconciliation Act of 
1985 (19 U.S.C. 58c(f)(4)) not later than 
September 30, 2016, to conform with the 
admissibility criteria of agencies partici-
pating in the International Trade Data 
System identified pursuant to section 
411(d)(4)(A)(iii) of the Tariff Act of 1930; 
‘‘(ii) U.S. Customs and Border Pro-
tection’s remaining priorities for processing 
entry summary data elements, cargo mani-
fest data elements, cargo financial data 
elements, and export elements in the Auto-
mated Commercial Environment computer 
system, and the objectives and plans for 
implementing these remaining priorities; 
‘‘(iii) the components of the National 
Customs Automation Program specified in 
subsection (a)(2) of section 411 of the 
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Tariff Act of 1930 that have not been im-
plemented; and 
‘‘(iv) any additional components of the 
National Customs Automation Program 
initiated by the Commissioner to complete 
the development, establishment, and imple-
mentation of the Automated Commercial 
Environment computer system. 
‘‘(B) UPDATE
OF
REPORTS.—Not later 
than September 30, 2017, the Commissioner 
shall submit to the Committee on Appropria-
tions and the Committee on Finance of the 
Senate and the Committee on Appropriations 
and the Committee on Ways and Means of the 
House of Representatives an updated report ad-
dressing each of the matters referred to in sub-
paragraph (A), and— 
‘‘(i) evaluating the effectiveness of the 
implementation of the Automated Commer-
cial Environment computer system; and 
‘‘(ii) detailing the percentage of trade 
processed in the Automated Commercial 
Environment every month since September 
30, 2016.’’. 
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(c) GOVERNMENT ACCOUNTABILITY OFFICE RE-
PORT.—Not later than December 31, 2017, the Comp-
troller General of the United States shall submit to the 
Committee on Appropriations and the Committee on Fi-
nance of the Senate and the Committee on Appropriations 
and the Committee on Ways and Means of the House of 
Representatives a report— 
(1) assessing the progress of other Federal 
agencies in accessing and utilizing the Automated 
Commercial Environment; and 
(2) assessing the potential cost savings to the 
United States Government and importers and ex-
porters and the potential benefits to enforcement of 
the customs and trade laws of the United States if 
the elements identified in clauses (i) through (iv) of 
section 311(b)(3)(A) of the Customs Border Secu-
rity Act of 2002, as amended by subsection (b) of 
this section, are implemented. 
SEC. 107. INTERNATIONAL TRADE DATA SYSTEM. 
(a) 
INFORMATION
TECHNOLOGY
INFRASTRUC-
TURE.—Section 411(d) of the Tariff Act of 1930 (19 
U.S.C. 1411(d)) is amended— 
(1) by redesignating paragraphs (4) through 
(7) as paragraphs (5) through (8), respectively; 
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(2) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) INFORMATION TECHNOLOGY INFRASTRUC-
TURE.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
work with the head of each agency participating 
in the ITDS and the Interagency Steering 
Committee to ensure that each agency— 
‘‘(i) develops and maintains the nec-
essary information technology infrastruc-
ture to support the operation of the ITDS 
and to submit all data to the ITDS elec-
tronically; 
‘‘(ii) enters into a memorandum of 
understanding, or takes such other action 
as is necessary, to provide for the informa-
tion sharing between the agency and U.S. 
Customs and Border Protection necessary 
for the operation and maintenance of the 
ITDS; 
‘‘(iii) not later than June 30, 2016, 
identifies and transmits to the Commis-
sioner responsible for U.S. Customs and 
Border Protection the admissibility criteria 
and data elements required by the agency 
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to authorize the release of cargo by U.S. 
Customs and Border Protection for incor-
poration into the operational functionality 
of the Automated Commercial Environ-
ment computer system authorized under 
section 13031(f)(4) of the Consolidated 
Omnibus Budget and Reconciliation Act of 
1985 (19 U.S.C. 58c(f)(4)); and 
‘‘(iv) not later than December 31, 
2016, utilizes the ITDS as the primary 
means of receiving from users the standard 
set of data and other relevant documenta-
tion, exclusive of applications for permits, 
licenses, or certifications required for the 
release of imported cargo and clearance of 
cargo for export. 
‘‘(B) RULE OF CONSTRUCTION.—Nothing 
in this paragraph shall be construed to require 
any action to be taken that would compromise 
an ongoing law enforcement investigation or na-
tional security.’’; and 
(3) in paragraph (8), as redesignated, by strik-
ing ‘‘section 9503(c) of the Omnibus Budget Rec-
onciliation Act of 1987 (19 U.S.C. 2071 note)’’ and 
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inserting ‘‘section 109 of the Trade Facilitation and 
Trade Enforcement Act of 2015’’. 
SEC. 108. CONSULTATIONS WITH RESPECT TO MUTUAL 
RECOGNITION ARRANGEMENTS. 
(a) CONSULTATIONS.—The Secretary of Homeland 
Security, with respect to any proposed mutual recognition 
arrangement or similar agreement between the United 
States and a foreign government providing for mutual rec-
ognition of supply chain security programs and customs 
revenue functions, shall consult— 
(1) not later than 30 days before initiating ne-
gotiations to enter into any such arrangement or 
similar agreement, with the Committee on Finance 
of the Senate and the Committee on Ways and 
Means of the House of Representatives; and 
(2) not later than 30 days before entering into 
any such arrangement or similar agreement, with 
the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of 
Representatives. 
(b) NEGOTIATING OBJECTIVE.—It shall be a negoti-
ating objective of the United States in any negotiation for 
a mutual recognition arrangement with a foreign country 
on partnership programs, such as the Customs–Trade 
Partnership Against Terrorism established under subtitle 
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B of title II of the Security and Accountability for Every 
Port Act of 2006 (6 U.S.C. 961 et seq.), to seek to ensure 
the compatibility of the partnership programs of that 
country with the partnership programs of U.S. Customs 
and Border Protection to enhance trade facilitation and 
trade enforcement. 
SEC. 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY 
COMMITTEE. 
(a) ESTABLISHMENT.—Not later than the date that 
is 60 days after the date of the enactment of this Act, 
the Secretary of the Treasury and the Secretary of Home-
land Security shall jointly establish a Commercial Customs 
Operations Advisory Committee (in this section referred 
to as the ‘‘Advisory Committee’’). 
(b) MEMBERSHIP.— 
(1) IN
GENERAL.—The Advisory Committee 
shall be comprised of— 
(A) 20 individuals appointed under para-
graph (2); 
(B) the Assistant Secretary for Tax Policy 
of the Department of the Treasury and the 
Commissioner, who shall jointly co-chair meet-
ings of the Advisory Committee; and 
(C) the Assistant Secretary for Policy and 
the Director of U.S. Immigration and Customs 
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Enforcement of the Department of Homeland 
Security, who shall serve as deputy co-chairs of 
meetings of the Advisory Committee. 
(2) APPOINTMENT.— 
(A) IN GENERAL.—The Secretary of the 
Treasury and the Secretary of Homeland Secu-
rity shall jointly appoint 20 individuals from 
the private sector to the Advisory Committee. 
(B) REQUIREMENTS.—In making appoint-
ments under subparagraph (A), the Secretary 
of the Treasury and the Secretary of Homeland 
Security shall appoint members— 
(i) to ensure that the membership of 
the Advisory Committee is representative 
of the individuals and firms affected by the 
commercial operations of U.S. Customs 
and Border Protection; and 
(ii) without regard to political affili-
ation. 
(C) TERMS.—Each individual appointed to 
the Advisory Committee under this paragraph 
shall be appointed for a term of not more than 
3 years, and may be reappointed to subsequent 
terms, but may not serve more than 2 terms se-
quentially. 
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(3) TRANSFER
OF
MEMBERSHIP.—The Sec-
retary of the Treasury and the Secretary of Home-
land Security may transfer members serving on the 
Advisory Committee on Commercial Operations of 
the United States Customs Service established under 
section 9503(c) of the Omnibus Budget Reconcili-
ation Act of 1987 (19 U.S.C. 2071 note) on the day 
before the date of the enactment of this Act to the 
Advisory Committee established under subsection 
(a). 
(c) DUTIES.—The Advisory Committee established 
under subsection (a) shall— 
(1) advise the Secretary of the Treasury and 
the Secretary of Homeland Security on all matters 
involving the commercial operations of U.S. Customs 
and Border Protection, including advising with re-
spect to significant changes that are proposed with 
respect to regulations, policies, or practices of U.S. 
Customs and Border Protection; 
(2) provide recommendations to the Secretary 
of the Treasury and the Secretary of Homeland Se-
curity on improvements to the commercial operations 
of U.S. Customs and Border Protection; 
(3) collaborate in developing the agenda for Ad-
visory Committee meetings; and 
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(4) perform such other functions relating to the 
commercial operations of U.S. Customs and Border 
Protection as prescribed by law or as the Secretary 
of the Treasury and the Secretary of Homeland Se-
curity jointly direct. 
(d) MEETINGS.— 
(1) IN
GENERAL.—The Advisory Committee 
shall meet at the call of the Secretary of the Treas-
ury and the Secretary of Homeland Security, or at 
the call of not less than 2⁄3 of the membership of the 
Advisory Committee. The Advisory Committee shall 
meet at least 4 times each calendar year. 
(2) OPEN MEETINGS.—Notwithstanding section 
10(a) of the Federal Advisory Committee Act (5 
U.S.C. App.), the Advisory Committee meetings 
shall be open to the public unless the Secretary of 
the Treasury or the Secretary of Homeland Security 
determines that the meeting will include matters the 
disclosure of which would compromise investigations 
of U.S. Immigration and Customs Enforcement. 
(e) ANNUAL REPORT.—Not later than December 31, 
2016, and annually thereafter, the Advisory Committee 
shall submit to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of 
Representatives a report that— 
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(1) describes the activities of the Advisory Com-
mittee during the preceding fiscal year; and 
(2) sets forth any recommendations of the Advi-
sory Committee regarding the commercial operations 
of U.S. Customs and Border Protection. 
(f) TERMINATION.—Section 14(a)(2) of the Federal 
Advisory Committee Act (5 U.S.C. App.; relating to the 
termination of advisory committees) shall not apply to the 
Advisory Committee. 
(g) CONFORMING AMENDMENT.— 
(1) IN
GENERAL.—Effective on the date on 
which the Advisory Committee is established under 
subsection (a), section 9503(c) of the Omnibus 
Budget Reconciliation Act of 1987 (19 U.S.C. 2071 
note) is repealed. 
(2) REFERENCE.—Any reference in law to the 
Advisory Committee on Commercial Operations of 
the United States Customs Service established under 
section 9503(c) of the Omnibus Budget Reconcili-
ation Act of 1987 (19 U.S.C. 2071 note) made on 
or after the date on which the Advisory Committee 
is established under subsection (a), shall be deemed 
a reference to the Commercial Customs Operations 
Advisory Committee established under subsection 
(a). 
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SEC. 110. CENTERS OF EXCELLENCE AND EXPERTISE. 
(a) IN GENERAL.—The Commissioner shall, in con-
sultation with the Committee on Finance of the Senate, 
the Committee on Ways and Means of the House of Rep-
resentatives, and the Commercial Customs Operations Ad-
visory Committee established by section 109 of this Act, 
develop and implement Centers of Excellence and Exper-
tise throughout U.S. Customs and Border Protection 
that— 
(1) enhance the economic competitiveness of the 
United States by consistently enforcing the laws and 
regulations of the United States at all ports of entry 
of the United States and by facilitating the flow of 
legitimate trade through increasing industry-based 
knowledge; 
(2) improve enforcement efforts, including en-
forcement of priority trade issues described in sub-
paragraph (B)(ii) of section 2(d)(3) of the Act of 
March 3, 1927 (44 Stat. 1381, chapter 348; 19 
U.S.C. 2072(d)), as added by section 111(a) of this 
Act, in specific industry sectors through the applica-
tion of targeting information from the Commercial 
Targeting Division established under subparagraph 
(A) of such section 2(d)(3) and from other means of 
verification; 
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(3) build upon the expertise of U.S. Customs 
and Border Protection in particular industry oper-
ations, supply chains, and compliance requirements; 
(4) promote the uniform implementation at 
each port of entry of the United States of policies 
and regulations relating to imports; 
(5) centralize the trade enforcement and trade 
facilitation efforts of U.S. Customs and Border Pro-
tection; 
(6) formalize an account-based approach to 
apply, as the Commissioner determines appropriate, 
to the importation of merchandise into the United 
States; 
(7) foster partnerships though the expansion of 
trade programs and other trusted partner programs; 
(8) develop applicable performance measure-
ments to meet internal efficiency and effectiveness 
goals; and 
(9) whenever feasible, facilitate a more efficient 
flow of information between Federal agencies. 
(b) REPORT.—Not later than December 31, 2016, 
the Commissioner shall submit to the Committee on Fi-
nance of the Senate and the Committee on Ways and 
Means of the House of Representatives a report describ-
ing— 
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(1) the scope, functions, and structure of each 
Center of Excellence and Expertise developed and 
implemented under subsection (a); 
(2) the effectiveness of each such Center of Ex-
cellence and Expertise in improving enforcement ef-
forts, including enforcement of priority trade issues, 
and facilitating legitimate trade; 
(3) the quantitative and qualitative benefits of 
each such Center of Excellence and Expertise to the 
trade community, including through fostering part-
nerships through the expansion of trade programs 
such as the Importer Self Assessment program and 
other trusted partner programs; 
(4) all applicable performance measurements 
with respect to each such Center of Excellence and 
Expertise, including performance measures with re-
spect to meeting internal efficiency and effectiveness 
goals; 
(5) the performance of each such Center of Ex-
cellence and Expertise in increasing the accuracy 
and completeness of data with respect to inter-
national trade and facilitating a more efficient flow 
of information between Federal agencies; and 
(6) any planned changes in the number, scope, 
functions or any other aspect of the Centers of Ex-
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cellence and Expertise developed and implemented 
under subsection (a). 
SEC. 111. COMMERCIAL TARGETING DIVISION AND NA-
TIONAL TARGETING AND ANALYSIS GROUPS. 
(a) IN GENERAL.—Section 2(d) of the Act of March 
3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)) 
is amended by adding at the end the following: 
‘‘(3) COMMERCIAL
TARGETING
DIVISION
AND 
NATIONAL TARGETING AND ANALYSIS GROUPS.— 
‘‘(A) ESTABLISHMENT
OF
COMMERCIAL 
TARGETING DIVISION.— 
‘‘(i) IN GENERAL.—The Secretary of 
Homeland Security shall establish and 
maintain within the Office of International 
Trade a Commercial Targeting Division. 
‘‘(ii) COMPOSITION.—The Commercial 
Targeting Division shall be composed of— 
‘‘(I) headquarters personnel led 
by an Executive Director, who shall 
report to the Assistant Commissioner 
for Trade; and 
‘‘(II) individual National Tar-
geting and Analysis Groups, each led 
by a Director who shall report to the 
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Executive Director of the Commercial 
Targeting Division. 
‘‘(iii) DUTIES.—The Commercial Tar-
geting Division shall be dedicated— 
‘‘(I) to the development and con-
duct of commercial risk assessment 
targeting with respect to cargo des-
tined for the United States in accord-
ance with subparagraph (C); and 
‘‘(II) to issuing Trade Alerts de-
scribed in subparagraph (D). 
‘‘(B) NATIONAL TARGETING AND ANALYSIS 
GROUPS.— 
‘‘(i) IN GENERAL.—A National Tar-
geting and Analysis Group referred to in 
subparagraph (A)(ii)(II) shall, at a min-
imum, be established for each priority 
trade issue described in clause (ii). 
‘‘(ii) PRIORITY TRADE ISSUES.— 
‘‘(I) IN GENERAL.—The priority 
trade issues described in this clause 
are the following: 
‘‘(aa) Agriculture programs. 
‘‘(bb) 
Antidumping 
and 
countervailing duties. 
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‘‘(cc) Import safety. 
‘‘(dd) Intellectual property 
rights. 
‘‘(ee) Revenue. 
‘‘(ff) Textiles and wearing 
apparel. 
‘‘(gg) Trade agreements and 
preference programs. 
‘‘(II) MODIFICATION.—The Com-
missioner is authorized to establish 
new priority trade issues and elimi-
nate, consolidate, or otherwise modify 
the priority trade issues described in 
this paragraph if the Commissioner— 
‘‘(aa) determines it nec-
essary and appropriate to do so; 
‘‘(bb) submits to the Com-
mittee on Finance of the Senate 
and the Committee on Ways and 
Means of the House of Rep-
resentatives a summary of pro-
posals to consolidate, eliminate, 
or otherwise modify existing pri-
ority trade issues not later than 
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60 days before such changes are 
to take effect; and 
‘‘(cc) submits to the Com-
mittee on Finance of the Senate 
and the Committee on Ways and 
Means of the House of Rep-
resentatives a summary of pro-
posals to establish new priority 
trade issues not later than 30 
days after such changes are to 
take effect. 
‘‘(iii) DUTIES.—The duties of each 
National Targeting and Analysis Group 
shall include— 
‘‘(I) directing the trade enforce-
ment and compliance assessment ac-
tivities of U.S. Customs and Border 
Protection that relate to the Group’s 
priority trade issue; 
‘‘(II) facilitating, promoting, and 
coordinating cooperation and the ex-
change of information between U.S. 
Customs and Border Protection, U.S. 
Immigration and Customs Enforce-
ment, and other relevant Federal de-
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partments and agencies regarding the 
Group’s priority trade issue; and 
‘‘(III) serving as the primary liai-
son between U.S. Customs and Bor-
der Protection and the public regard-
ing United States Government activi-
ties regarding the Group’s priority 
trade issue, including— 
‘‘(aa) providing for receipt 
and transmission to the appro-
priate U.S. Customs and Border 
Protection office of allegations 
from interested parties in the pri-
vate sector of violations of cus-
toms and trade laws of the 
United States of merchandise re-
lating to the priority trade issue; 
‘‘(bb) obtaining information 
from the appropriate U.S. Cus-
toms and Border Protection of-
fice on the status of any activi-
ties resulting from the submis-
sion of any such allegation, in-
cluding any decision not to pur-
sue the allegation, and providing 
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any such information to each in-
terested party in the private sec-
tor that submitted the allegation 
every 90 days after the allegation 
was received by U.S. Customs 
and Border Protection unless 
providing such information would 
compromise an ongoing law en-
forcement investigation; and 
‘‘(cc) notifying on a timely 
basis each interested party in the 
private sector that submitted 
such allegation of any civil or 
criminal actions taken by U.S. 
Customs and Border Protection 
or other Federal department or 
agency resulting from the allega-
tion. 
‘‘(C) COMMERCIAL RISK ASSESSMENT TAR-
GETING.—In carrying out its duties with re-
spect to commercial risk assessment targeting, 
the Commercial Targeting Division shall— 
‘‘(i) establish targeted risk assessment 
methodologies and standards— 
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‘‘(I) for evaluating the risk that 
cargo destined for the United States 
may violate the customs and trade 
laws of the United States, particularly 
those laws applicable to merchandise 
subject to the priority trade issues de-
scribed in subparagraph (B)(ii); and 
‘‘(II) for issuing, as appropriate, 
Trade Alerts described in subpara-
graph (D); and 
‘‘(ii) to the extent practicable and oth-
erwise authorized by law, use, to admin-
ister the methodologies and standards es-
tablished under clause (i) — 
‘‘(I) publicly available informa-
tion; 
‘‘(II) information available from 
the Automated Commercial System, 
the Automated Commercial Environ-
ment computer system, the Auto-
mated Targeting System, the Auto-
mated Export System, the Inter-
national Trade Data System, the 
TECS (formerly known as the ‘Treas-
ury 
Enforcement 
Communications 
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System’), the case management sys-
tem of U.S. Immigration and Customs 
Enforcement, and any successor sys-
tems; and 
‘‘(III) information made available 
to the Commercial Targeting Division, 
including information provided by pri-
vate sector entities. 
‘‘(D) TRADE ALERTS.— 
‘‘(i) ISSUANCE.—Based upon the ap-
plication of the targeted risk assessment 
methodologies and standards established 
under subparagraph (C), the Executive Di-
rector of the Commercial Targeting Divi-
sion and the Directors of the National 
Targeting and Analysis Groups may issue 
Trade Alerts to directors of United States 
ports of entry directing further inspection, 
or physical examination or testing, of spe-
cific merchandise to ensure compliance 
with all applicable customs and trade laws 
and regulations administered by U.S. Cus-
toms and Border Protection. 
‘‘(ii) DETERMINATIONS
NOT
TO
IM-
PLEMENT
TRADE
ALERTS.—The director 
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of a United States port of entry may deter-
mine not to conduct further inspections, or 
physical examination or testing, pursuant 
to a Trade Alert issued under clause (i) 
if— 
‘‘(I) the director finds that such 
a determination is justified by security 
interests; and 
‘‘(II) notifies the Assistant Com-
missioner of the Office of Field Oper-
ations and the Assistant Commis-
sioner of International Trade of U.S. 
Customs and Border Protection of the 
determination and the reasons for the 
determination not later than 48 hours 
after making the determination. 
‘‘(iii) SUMMARY OF DETERMINATIONS 
NOT TO IMPLEMENT.—The Assistant Com-
missioner of the Office of Field Operations 
of U.S. Customs and Border Protection 
shall— 
‘‘(I) compile an annual public 
summary of all determinations by di-
rectors of United States ports of entry 
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under clause (ii) and the reasons for 
those determinations; 
‘‘(II) conduct an evaluation of 
the utilization of Trade Alerts issued 
under clause (i); and 
‘‘(III) submit the summary to the 
Committee on Finance of the Senate 
and the Committee on Ways and 
Means of the House of Representa-
tives not later than December 31 of 
each year. 
‘‘(iv) INSPECTION DEFINED.—In this 
subparagraph, the term ‘inspection’ means 
the comprehensive evaluation process used 
by U.S. Customs and Border Protection, 
other than physical examination or testing, 
to permit the entry of merchandise into the 
United States, or the clearance of mer-
chandise 
for 
transportation 
in 
bond 
through the United States, for purposes 
of— 
‘‘(I) assessing duties; 
‘‘(II) identifying restricted or 
prohibited items; and 
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‘‘(III) ensuring compliance with 
all applicable customs and trade laws 
and regulations administered by U.S. 
Customs and Border Protection.’’. 
(b) USE OF TRADE DATA FOR COMMERCIAL EN-
FORCEMENT PURPOSES.—Section 343(a)(3)(F) of the 
Trade Act of 2002 (19 U.S.C. 2071 note) is amended to 
read as follows: 
‘‘(F) The information collected pursuant to 
the regulations shall be used exclusively for en-
suring cargo safety and security, preventing 
smuggling, and commercial risk assessment tar-
geting, and shall not be used for any commer-
cial enforcement purposes, including for deter-
mining merchandise entry. Notwithstanding the 
preceding sentence, nothing in this section shall 
be treated as amending, repealing, or otherwise 
modifying title IV of the Tariff Act of 1930 or 
regulations prescribed thereunder.’’. 
SEC. 112. REPORT ON OVERSIGHT OF REVENUE PROTEC-
TION AND ENFORCEMENT MEASURES. 
(a) IN GENERAL.—Not later the March 31, 2016, 
and not later than March 31 of each second year there-
after, the Inspector General of the Department of the 
Treasury shall submit to the Committee on Finance of the 
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Senate and the Committee on Ways and Means of the 
House of Representatives a report assessing, with respect 
to the period covered by the report, as specified in sub-
section (b), the following: 
(1) The effectiveness of the measures taken by 
U.S. Customs and Border Protection with respect to 
protection of revenue, including— 
(A) the collection of countervailing duties 
assessed under subtitle A of title VII of the 
Tariff Act of 1930 (19 U.S.C. 1671 et seq.) 
and antidumping duties assessed under subtitle 
B of title VII of the Tariff Act of 1930 (19 
U.S.C. 1673 et seq.); 
(B) the assessment, collection, and mitiga-
tion of commercial fines and penalties; 
(C) the use of bonds, including continuous 
and single transaction bonds, to secure that 
revenue; and 
(D) the adequacy of the policies of U.S. 
Customs and Border Protection with respect to 
the monitoring and tracking of merchandise 
transported in bond and collecting duties, as 
appropriate. 
(2) The effectiveness of actions taken by U.S. 
Customs and Border Protection to measure account-
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ability and performance with respect to protection of 
revenue. 
(3) The number and outcome of investigations 
instituted by U.S. Customs and Border Protection 
with respect to the underpayment of duties. 
(4) The effectiveness of training with respect to 
the collection of duties provided for personnel of 
U.S. Customs and Border Protection. 
(b) PERIOD COVERED BY REPORT.—Each report re-
quired by subsection (a) shall cover the period of 2 fiscal 
years ending on September 30 of the calendar year pre-
ceding the submission of the report. 
SEC. 113. REPORT ON SECURITY AND REVENUE MEASURES 
WITH RESPECT TO MERCHANDISE TRANS-
PORTED IN BOND. 
(a) IN GENERAL.—Not later than December 31 of 
2016, 2017, and 2018, the Secretary of Homeland Secu-
rity and the Secretary of the Treasury shall jointly submit 
to the Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Representa-
tives a report on efforts undertaken by U.S. Customs and 
Border Protection to ensure the secure transportation of 
merchandise in bond through the United States and the 
collection of revenue owed upon the entry of such mer-
chandise into the United States for consumption. 
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(6) the total number of notifications by carriers 
of merchandise being transported in bond that the 
destination of the merchandise has changed; and 
(7) the number of entries that remain 
unreconciled. 
SEC. 114. IMPORTER OF RECORD PROGRAM. 
(a) ESTABLISHMENT.—Not later than the date that 
is 180 days after the date of the enactment of this Act, 
the Secretary of Homeland Security shall establish an im-
porter of record program to assign and maintain importer 
of record numbers. 
(b) REQUIREMENTS.—The Secretary shall ensure 
that, as part of the importer of record program, U.S. Cus-
toms and Border Protection— 
(1) develops criteria that importers must meet 
in order to obtain an importer of record number, in-
cluding— 
(A) criteria to ensure sufficient informa-
tion is collected to allow U.S. Customs and Bor-
der Protection to verify the existence of the im-
porter requesting the importer of record num-
ber; 
(B) criteria to ensure sufficient informa-
tion is collected to allow U.S. Customs and Bor-
der Protection to identify linkages or other af-
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filiations between importers that are requesting 
or have been assigned importer of record num-
bers; and 
(C) criteria to ensure sufficient informa-
tion is collected to allow U.S. Customs and Bor-
der Protection to identify changes in address 
and corporate structure of importers; 
(2) provides a process by which importers are 
assigned importer of record numbers; 
(3) maintains a centralized database of im-
porter of record numbers, including a history of im-
porter of record numbers associated with each im-
porter, and the information described in subpara-
graphs (A), (B), and (C) of paragraph (1); 
(4) evaluates and maintains the accuracy of the 
database if such information changes; and 
(5) takes measures to ensure that duplicate im-
porter of record numbers are not issued. 
(c) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary shall submit 
to the Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Representa-
tives a report on the importer of record program estab-
lished under subsection (a). 
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(d) NUMBER DEFINED.—In this subsection, the term 
‘‘number’’, with respect to an importer of record, means 
a filing identification number described in section 24.5 of 
title 19, Code of Federal Regulations (or any cor-
responding similar regulation) that fully supports the re-
quirements of subsection (b) with respect to the collection 
and maintenance of information. 
SEC. 115. CUSTOMS BROKER IDENTIFICATION OF IMPORT-
ERS. 
(a) IN GENERAL.—Section 641 of the Tariff Act of 
1930 (19 U.S.C. 1641) is amended by adding at the end 
the following: 
‘‘(i) IDENTIFICATION OF IMPORTERS.— 
‘‘(1) IN
GENERAL.—The Secretary shall pre-
scribe regulations setting forth the minimum stand-
ards for customs brokers and importers, including 
nonresident importers, regarding the identity of the 
importer that shall apply in connection with the im-
portation of merchandise into the United States. 
‘‘(2) MINIMUM
REQUIREMENTS.—The regula-
tions shall, at a minimum, require customs brokers 
to implement, and importers (after being given ade-
quate notice) to comply with, reasonable procedures 
for— 
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‘‘(A) collecting the identity of importers, 
including nonresident importers, seeking to im-
port merchandise into the United States to the 
extent reasonable and practicable; and 
‘‘(B) maintaining records of the informa-
tion used to substantiate a person’s identity, in-
cluding name, address, and other identifying in-
formation. 
‘‘(3) PENALTIES.—Any customs broker who 
fails to collect information required under the regu-
lations prescribed under this subsection shall be lia-
ble to the United States, at the discretion of the 
Secretary, for a monetary penalty not to exceed 
$10,000 for each violation of those regulations and 
subject to revocation or suspension of a license or 
permit of the customs broker pursuant to the proce-
dures set forth in subsection (d). 
‘‘(4) DEFINITIONS.—In this subsection, the 
terms ‘importer’ and ‘nonresident importer’ have the 
meaning given such terms in section 2 of the Cus-
toms Enhanced Enforcement and Trade Facilitation 
Act of 2012.’’. 
(b) STUDY AND REPORT REQUIRED.—Not later than 
180 days after the date of enactment of this Act, the Com-
missioner of U.S. Customs and Border Protection shall 
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submit to Congress a report containing recommendations 
for— 
(1) determining the most timely and effective 
way to require foreign nationals to provide customs 
brokers with appropriate and accurate information, 
comparable to that which is required of United 
States nationals, concerning the identity, address, 
and other related information relating to such for-
eign nationals necessary to enable customs brokers 
to comply with the requirements of section 641(i) of 
the Tariff Act of 1930 (as added by subsection (a)); 
and 
(2) establishing a system for customs brokers to 
review information maintained by relevant Federal 
agencies for purposes of verifying the identities of 
importers, including nonresident importers, seeking 
to import merchandise into the United States. 
SEC. 116. ESTABLISHMENT OF NEW IMPORTER PROGRAM. 
(a) IN GENERAL.—Not later than the date that is 
180 days after the date of the enactment of this Act, the 
Commissioner shall establish a new importer program that 
directs U.S. Customs and Border Protection to adjust 
bond amounts for new importers based on the level of risk 
assessed by U.S. Customs and Border Protection for pro-
tection of revenue of the Federal Government. 
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