‘‘(1) IN GENERAL.—Any tangible items lawfully 
seized under subsection (a) by designated officers or 
employees shall be subject to forfeiture to the United 
States. 
‘‘(2) APPLICABLE LAWS.—Those provisions of 
law relating to— 
‘‘(A) the seizure, summary and judicial 
forfeiture, and condemnation of property for 
violations of the customs laws, 
‘‘(B) the disposition of such property or 
the proceeds from the sale thereof, 
‘‘(C) the remission or mitigation of such 
forfeitures, and 
‘‘(D) the compromise of claims, 
shall apply to seizures and forfeitures incurred, or 
alleged to have been incurred, under the provisions 
of this subsection, insofar as applicable and not in-
consistent with this Act. 
‘‘(3) FORFEITURES UNDER CUSTOMS LAWS.— 
Duties that are imposed upon a customs officer or 
any other person with respect to the seizure and for-
feiture of property under the customs laws may be 
performed with respect to seizures and forfeitures of 
property under this subsection by the Secretary or 
any officer or employee of the Department of Com-
merce that may be authorized or designated for that 
purpose by the Secretary (or by the Under Secretary 
for Border and Transportation Security of the De-
partment of Homeland Security (formerly the Com-
missioner of Customs) or any officer or employee of 
the Directorate for Border and Transportation Secu-
rity (formerly the United States Customs Service) 
designated by the Under Secretary), or, upon the re-
quest of the Secretary, by any other agency that has 
authority to manage and dispose of seized property. 
‘‘(g) UNDERCOVER INVESTIGATION OPERATIONS.— 
‘‘(1) USE OF FUNDS.—With respect to any un-
dercover investigative operation conducted by the Of-
fice of Export Enforcement of the Department of 
Commerce that is necessary for the detection and 
prosecution of violations of this Act— 
‘‘(A) funds made available for export en-
forcement under this Act may be used to pur-
chase property, buildings, and other facilities, 
and to lease equipment, conveyances, and space 
within the United States, without regard to sec-
tions 1341 and 3324 of title 31, United States 
Code, section 8141 of title 40, United States 
Code, sections 3732(a) and 3741 of the Revised 
Statutes of the United States (41 U.S.C. 11(a)
and 22), and sections 304(a), 304A, 304B, 
304C, and 305 of the Federal Property and Ad-
ministrative Services Act of 1949 (41 U.S.C. 
254 (a), 254b, 254c, 254d, and 255); 
‘‘(B) funds made available for export en-
forcement under this Act may be used to estab-
lish or to acquire proprietary corporations or 
business entities as part of an undercover oper-
ation, and to operate such corporations or busi-
ness entities on a commercial basis, without re-
gard to sections 1341, 3324, and 9102 of title 
31, United States Code; 
‘‘(C) funds made available for export en-
forcement under this Act and the proceeds from 
undercover operations may be deposited in 
banks or other financial institutions without re-
gard to the provisions of section 648 of title 18, 
United States Code, and section 3302 of title 
31, United States Code; and 
‘‘(D) the proceeds from undercover oper-
ations may be used to offset necessary and rea-
sonable expenses incurred in such operations 
without regard to the provisions of section 3302 
of title 31, United States Code, if the Secretary 
certifies, in writing, that the action authorized
by subparagraph (A), (B), (C), or (D) for which 
the funds would be used is necessary for the 
conduct of the undercover operation. 
‘‘(2) DISPOSITION OF BUSINESS ENTITIES.—If 
a corporation or business entity established or ac-
quired as part of an undercover operation has a net 
value of more than $250,000 and is to be liquidated, 
sold, or otherwise disposed of, the Secretary shall re-
port the circumstances to the Comptroller General of 
the United States as much in advance of such dis-
position as the Secretary determines is practicable. 
The proceeds of the liquidation, sale, or other dis-
position, after obligations incurred by the corpora-
tion or business enterprise are met, shall be depos-
ited in the Treasury of the United States as mis-
cellaneous receipts. Any property or equipment pur-
chased pursuant to paragraph (1) may be retained 
for subsequent use in undercover operations under 
this section. When such property or equipment is no 
longer needed, it shall be considered surplus and dis-
posed of as surplus government property. 
‘‘(3) DEPOSIT OF PROCEEDS.—As soon as the 
proceeds from an undercover investigative operation 
of the Office of Export Enforcement of the Depart-
ment of Commerce with respect to which an action
is authorized and carried out under this subsection 
are no longer needed for the conduct of such oper-
ation, the proceeds or the balance of the proceeds re-
maining at the time shall be deposited into the 
Treasury of the United States as miscellaneous re-
ceipts. 
‘‘(4) AUDIT AND REPORT.— 
‘‘(A) AUDIT.—The Secretary shall conduct 
a detailed financial audit of each closed under-
cover investigative operation of the Office of 
Export Enforcement of the Department of 
Commerce. Not later than 180 days after an 
undercover operation is closed, the Secretary 
shall submit to the Congress a report on the re-
sults of the audit. 
‘‘(B) REPORT.—The Secretary shall sub-
mit annually to Congress a report, which may 
be included in the annual report under section 
14, including the following information: 
‘‘(i) The number of undercover inves-
tigative operations pending as of the end of 
the period for which the report is sub-
mitted. 
‘‘(ii) The number of undercover inves-
tigative operations commenced in the 1-