Trade Facilitation and Trade Enforcement Reauthorization Act of 2013

Bill: 113-s-662
Sponsor: full_name: Sen. Baucus, Max [D-MT]
Introduced: 2013-03-22
Policy area: Foreign Trade and International Finance
Subjects: Administrative law and regulatory procedures

Advisory bodies

Agricultural trade

Aviation and airports

Border security and unlawful immigration

Budget process

Competitiveness, trade promotion, trade deficits

Computers and information technology

Congressional oversight

Consumer affairs

Customs enforcement

Department of Homeland Security

Drug trafficking and controlled substances

Executive agency funding and structure

Federal officials

Food supply, safety, and labeling

Free trade and trade barriers

Government employee pay, benefits, personnel management

Government information and archives

Government studies and investigations

Historical and cultural resources

Homeland security

Human rights

Intellectual property

International organizations and cooperation

Labor standards

Public-private cooperation

Tariffs

Trade agreements and negotiations

Trade restrictions

Travel and tourism

User charges and fees
Latest action: action_date: 2013-05-22
text: Committee on Finance. Hearings held. Hearings printed: S.Hrg. 113-215.

Summaries:
action_date: 2013-03-22
action_desc: Introduced in Senate
text: <p>Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 - Revises the organization, in the Department of Homeland Security (DHS), of the U.S. Customs and Border Protection and renames it the U.S. Customs and Border Protection Agency (CBP Agency), headed by the Commissioner of U.S. Customs and Border Protection. </p> <p>Amends the Homeland Security Act of 2002 to transfer all functions of the U.S. Customs and Border Protection of DHS to the CBP Agency.</p> <p>Requires appointment of between two and three Deputy Commissioners, including a Deputy Commissioner for Trade.</p> <p>Establishes in the office of the Commissioner a Trade Advocate. Directs the DHS Secretary to transfer to the Trade Advocate all functions of the CBP Agency Office of Trade Relations, which is hereby abolished.</p> <p>Establishes within the CBP Agency an Office of Trade, absorbing all functions of the CBP Office of International Trade, which is hereby abolished.</p> <p>Establishes within the CBP Agency an Office of International Affairs.</p> <p>Establishes in the Office of Field Operations of the CBP Agency a Trade Facilitation and Trade Enforcement Division. Directs the Commissioner to designate at least 40 commercial enforcement officers within the Office.</p> <p>Directs the Commissioner to establish a Customs Facilitation and Enforcement Interagency Committee to improve coordination among federal agencies with respect to the movement of merchandise into and out of the United States (trade facilitation) and enforcement of U.S. customs and trade laws (trade enforcement). Directs the Committee to establish a Customs Facilitation and Enforcement Review Group.</p> <p>Requires two separate budget requests for the CBP Agency, one for commercial operations and one for noncommercial operations.</p> <p>Establishes in the DHS Office of Policy a Director of Trade Policy.</p> <p>Renames the U.S. Immigration and Customs Enforcement (ICE), in DHS, the U.S. Immigration and Customs Enforcement Agency (ICE Agency). </p>  <p>Requires two separate budget requests for the ICE Agency, one for customs operations and one for other operations.</p> <p>Amends the Customs and Trade Act of 1990 to direct the Commissioner of the CBP Agency and the ICE Director to develop jointly every two years, and report to Congress, a joint strategic plan for improving trade facilitation and trade enforcement.</p> <p>Directs the Commissioner to ensure that CBP Agency partnership programs, such as the Customs-Trade Partnership Against Terrorism, provide trade benefits to importers or exporters that meet program requirements.</p> <p>Amends the Tariff Act of 1930 to direct the Commissioner to establish a voluntary government-private sector trade facilitation partnership program, or modify an existing one, to enhance trade facilitation and trade enforcement and provide certain trade benefits to importers that meet certain minimum requirements.</p> <p>Directs the Commissioner to develop and implement CBP Agency-wide Centers of Excellence and Expertise.</p> <p>Directs the Secretary of the Treasury and the DHS Secretary jointly to establish a Customs Operations Advisory Committee (effectively replacing the Advisory Committee on Commercial Operations of the U.S. Customs Service).</p> <p>Amends the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) to authorize appropriations for FY2014-FY2018 to complete development, and provide for the operation and maintenance, of the Automated Commercial Environment computer system.</p> <p>Amends the Tariff Act of 1930 to require the Secretary of the Treasury to work with the head of each agency participating in the International Trade Data System (ITDS) and the Interagency Steering Committee to ensure that each such agency, among other duties, develops and maintains the necessary information technology infrastructure to support the operation of the ITDS, submit all data to the ITDS electronically, and arrange to share information between each agency and the CBP Agency.</p> <p>Directs the DHS Secretary to establish within the CBP Agency Office of Trade a Commercial Targeting Division to conduct commercial risk assessment targeting and, when needed, issue trade alerts with respect to cargo destined for the United States. </p> <p>Directs the Commissioner and the ICE Director jointly to develop or update, and report to Congress, a strategy for uniform enforcement of U.S. illegal drug control laws.</p> <p>Requires the Inspector General (IG) of the Department of the Treasury to report to specified congressional committees on IG oversight of revenue protection and enforcement measures.</p> <p>Requires the DHS Secretary and the Secretary of the Treasury to report jointly to specified congressional committees on security and revenue measures with respect to merchandise transported in bond.</p> <p>Directs the DHS Secretary to establish a program to assign importer of record numbers. </p> <p>Establishes an interagency Import Safety Working Group. Directs the DHS Secretary to develop a joint import safety rapid response plan that sets forth protocols for the CBP Agency to: (1) coordinate federal responses to cargo entering the United States that poses a threat to the health or safety of U.S. consumers, and (2) use in recovering from or mitigating the effects of actions and responses to such an incident. </p> <p>Directs the DHS Secretary to establish within the ICE Agency a National Intellectual Property Rights Coordination Center to coordinate U.S. activities to prevent the import and export of goods that infringe intellectual property rights. </p> <p>Requires the Commissioner of the CBP Agency, upon suspicion that merchandise is being imported into the United States in violation of U.S. trademark or copyright infringement laws, and belief that testing of the merchandise by the owner of a trademark or a copyright would assist in determining a violation, to provide the trademark or copyright owner any information appearing on the merchandise and its packaging and labels, including any unredacted images of them.</p> <p>Authorizes the DHS Secretary to establish in the ICE Agency priority trade enforcement coordination centers.</p> <p>Enforcing Orders and Reducing Customs Evasion Act of 2013 - Amends the Tariff Act of 1930 to require the Commissioner, upon the filing of an allegation or a referral from another federal agency, to investigate claims of evasion of antidumping or countervailing duties (including any cash deposits or other security) with respect to covered merchandise entered into the United States.</p> <p>Requires the Commissioner, in the case of an affirmative determination based on substantial evidence, to: (1) suspend liquidation of unliquidated entries of covered merchandise and extend the period for liquidation of covered merchandise entered before such determination, (2) request the administering authority (Secretary of Commerce or other responsible U.S. officer) to identify the applicable antidumping or countervailing duties or cash deposit rate for such entries, (3) require the posting of cash deposits and assess duties, and (4) take appropriate additional enforcement measures.</p>  <p>Revises eligibility requirements for the drawback (refund) of duties paid on eligible merchandise imported into the United States and later exported or destroyed.</p> <p>Prescribes or revises requirements for: (1) penalties for a custom broker convicted of committing an act of terrorism, (2) duty-free treatment under the Harmonized Tariff Schedule of the United States of certain federal property exported and reimported without having been advanced in value or improved in condition while abroad, and (3) assignment under COBRA of CBP Agency employees to perform customs services for charter flight passengers and their baggage.</p> <p>Directs the President to establish a pilot program for designating 24-hour commercial land border ports of entry on the northern and southern U.S. borders.</p> <p>Eliminates the consumptive demand exception to the prohibition on the importation of goods made with convict labor, forced labor, or indentured labor.</p> <p>Requires the Commissioner to ensure that appropriate CBP Agency resources address concerns that honey as well as contraband archaeological or ethnological material is being imported into the United States in violation of U.S. customs laws.</p> <p>Increases from $200 to $800 the retail value of articles that may be imported duty-free into the United States by one person on one day. Requires the Secretary of the Treasury to prescribe regulations for the entry of merchandise valued between $250 and $2,500.</p> <p>Amends the Department of Homeland Security Appropriations Act, 2013 to repeal the authority of the Commissioner to enter into reimbursable fee agreements for up to five years for the provision of CBP services, including additional services at existing and new CBP-serviced facilities (including but not limited to payment of overtime) and land border facilities.</p>

tv_txt: II 113th CONGRESS 1st Session S. 662 IN THE SENATE OF THE UNITED STATES March 22, 2013 Mr. Baucus (for himself and Mr. Hatch ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To reauthorize trade facilitation and trade enforcement functions and activities, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Definitions. TITLE I—Customs organization Subtitle A—Functions other than investigative functions Sec. 101. Establishment of U.S. Customs and Border Protection Agency; Commissioner. Sec. 102. Officers and employees. Sec. 103. Separate budget requests for U.S. Customs and Border Protection Agency. Sec. 104. Revolving fund. Sec. 105. Advances in foreign countries. Sec. 106. Advances for enforcement of customs provisions. Sec. 107. Certification of reason for advance. Sec. 108. Payments in foreign countries; claims for reimbursement. Sec. 109. Customs administration. Sec. 110. Personnel. Sec. 111. Authorization of appropriations. Subtitle B—Investigative functions Sec. 121. Establishment of U.S. Immigration and Customs Enforcement Agency. Sec. 122. Separate budget requests for U.S. Immigration and Customs Enforcement Agency. Sec. 123. Undercover investigative operations. Sec. 124. Authorization of appropriations. Subtitle C—Joint strategic plan on trade facilitation and trade enforcement Sec. 131. Joint strategic plan on trade facilitation and trade enforcement. TITLE II—Trade facilitation, trade enforcement, and transparency Subtitle A—Trade facilitation and transparency Sec. 201. Improving partnership programs. Sec. 202. Trade facilitation partnership program. Sec. 203. Centers of Excellence and Expertise. Sec. 204. Mutual recognition agreements. Sec. 205. Customs Operations Advisory Committee. Sec. 206. Automated Commercial Environment computer system. Sec. 207. International Trade Data System. Sec. 208. Electronic submission of public comments. Subtitle B—Trade enforcement Chapter 1—Commercial targeting Sec. 211. Commercial Targeting Division and National Targeting and Analysis Groups. Sec. 212. Annual illegal drug control law enforcement strategy. Sec. 213. Report on oversight of revenue protection and enforcement measures by the inspector general. Sec. 214. Report on security and revenue measures with respect to merchandise transported in bond. Sec. 215. Importer of record program. Chapter 2—Import health and safety Sec. 221. Interagency Import Safety Working Group. Sec. 222. Joint import safety rapid response plan. Sec. 223. Training. Chapter 3—Import-Related protection of intellectual property rights SUBCHAPTER A—National Intellectual Property Rights Coordination Center Sec. 231. National Intellectual Property Rights Coordination Center. SUBCHAPTER B—Amendments to the Tariff Act of 1930 Sec. 241. Provision to rights owners of information about and samples of merchandise suspected of infringing trademarks or copyrights. Sec. 242. Enforcement by the U.S. Customs and Border Protection Agency of works for which a copyright registration is pending. Sec. 243. Seizure of circumvention devices. SUBCHAPTER C—Other matters Sec. 251. Definition of intellectual property rights. Sec. 252. Joint strategic plan for the enforcement of intellectual property rights. Sec. 253. Personnel dedicated to the enforcement of intellectual property rights. Sec. 254. Training with respect to the enforcement of intellectual property rights. Sec. 255. Information for travelers regarding violations of intellectual property rights. Sec. 256. International cooperation and information sharing. Sec. 257. Sense of Congress regarding recordation process. Sec. 258. Report on intellectual property rights enforcement. Chapter 4—Coordination of trade enforcement priorities Sec. 261. Establishment of priority trade enforcement coordination centers. TITLE III—Evasion of antidumping and countervailing duty orders Sec. 301. Short title. Sec. 302. Procedures for investigating claims of evasion of antidumping and countervailing duty orders. Sec. 303. Annual report on prevention and investigation of evasion of antidumping and countervailing duty orders. TITLE IV—Miscellaneous provisions Sec. 401. Consultation on trade and customs revenue functions. Sec. 402. Drawback simplification. Sec. 403. Penalties for customs brokers. Sec. 404. Amendments to chapter 98 of the Harmonized Tariff Schedule of the United States. Sec. 405. Charter flights. Sec. 406. Pilot program to designate additional 24-hour commercial ports of entry. Sec. 407. Elimination of consumptive demand exception to prohibition on importation of goods made with convict labor, forced labor, or indentured labor; report. Sec. 408. Honey transshipment. Sec. 409. Contraband archaeological or ethnological materials. Sec. 410. De minimis value and entry under regulations. Sec. 411. Repeal of authority of U.S. Customs and Border Protection Agency to enter into certain reimbursable fee agreements. 2. Definitions In this Act: (1) Commercial operations The term commercial operations , with respect to the U.S. Customs and Border Protection Agency, means the operations described in section 1(c)(2) of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 ), as amended by section 101 of this Act. (2) Commissioner The term Commissioner means the Commissioner of U.S. Customs and Border Protection (as established under section 1 of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 ), as amended by section 101 of this Act). (3) Customs Operations Advisory Committee The term Customs Operations Advisory Committee means the Advisory Committee established under section 205 of this Act or any successor committee. (4) Customs and trade laws of the United States The term customs and trade laws of the United States includes the following: (A) The Tariff Act of 1930 (19 U.S.C. 1202 et seq.). (B) Section 249 of the Revised Statutes (19 U.S.C. 3). (C) Section 2 of the Act of March 4, 1923 (42 Stat. 1453, chapter 251; 19 U.S.C. 6 ). (D) The Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq. ). (E) Section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 ( 19 U.S.C. 58c ). (F) Section 251 of the Revised Statutes (19 U.S.C. 66). (G) Section 1 of the Act of June 26, 1930 (46 Stat. 817, chapter 617; 19 U.S.C. 68 ). (H) The Foreign Trade Zones Act (19 U.S.C. 81a et seq.). (I) Section 1 of the Act of March 2, 1911 (36 Stat. 965, chapter 191; 19 U.S.C. 198 ). (J) The Trade Act of 1974 (19 U.S.C. 2102 et seq.). (K) The Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.). (L) The North American Free Trade Agreement Implementation Act ( 19 U.S.C. 3301 et seq. ). (M) The Uruguay Round Agreements Act (19 U.S.C. 3501 et seq.). (N) The Caribbean Basin Economic Recovery Act ( 19 U.S.C. 2701 et seq. ). (O) The Andean Trade Preference Act (19 U.S.C. 3201 et seq.). (P) The African Growth and Opportunity Act (19 U.S.C. 3701 et seq.). (Q) The Customs Enforcement Act of 1986 (Public Law 99–570; 100 Stat. 3207–79). (R) The Customs and Trade Act of 1990 (Public Law 101–382; 104 Stat. 629). (S) The Customs Procedural Reform and Simplification Act of 1978 ( Public Law 95–410 ; 92 Stat. 888). (T) The Trade Act of 2002 ( Public Law 107–210 ; 116 Stat. 933). (U) The Convention on Cultural Property Implementation Act ( 19 U.S.C. 2601 et seq. ). (V) The Act of March 28, 1928 (45 Stat. 374, chapter 266; 19 U.S.C. 2077 et seq. ) (W) The Act of August 7, 1939 (53 Stat. 1263, chapter 566). (X) Any other provision of law implementing a trade agreement. (Y) Any other provision of law vesting customs revenue functions in the Secretary of the Treasury. (Z) Any other provision of law relating to trade facilitation or trade enforcement that is administered by the U.S. Customs and Border Protection Agency on behalf of any Federal agency that is required to participate in the International Trade Data System. (AA) Any other provision of customs or trade law administered by the U.S. Customs and Border Protection Agency or the U.S. Immigration and Customs Enforcement Agency. (5) Customs revenue function The term customs revenue function has the meaning given that term in section 415 of the Homeland Security Act of 2002 ( 6 U.S.C. 215 ). (6) Private sector entity The term private sector entity means— (A) an importer; (B) an exporter; (C) a forwarder; (D) an air, sea, or land carrier or shipper; (E) a contract logistics provider; (F) a customs broker; or (G) any other person (other than an employee of a government) involved in the importation or exportation of merchandise into or out of the United States. (7) Trade enforcement The term trade enforcement means the enforcement of the customs and trade laws of the United States. (8) Trade facilitation The term trade facilitation refers to policies and activities of the U.S. Customs and Border Protection Agency with respect to facilitating the movement of merchandise into and out of the United States in a manner that complies with the customs and trade laws of the United States. (9) Trade Support Network The term Trade Support Network means the network of private sector entities that provide input on the development of modernization projects of the U.S. Customs and Border Protection Agency. I Customs organization A Functions other than investigative functions 101. Establishment of U.S. Customs and Border Protection Agency; Commissioner (a) In general The first section of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 ), is amended to read as follows: 1. Establishment of U.S. Customs and Border Protection Agency; Commissioner (a) Establishment of U.S. Customs and Border Protection Agency There is established in the Department of Homeland Security the U.S. Customs and Border Protection Agency. (b) Establishment of Commissioner of U.S. Customs and Border Protection The head of the U.S. Customs and Border Protection Agency shall be a Commissioner of U.S. Customs and Border Protection (in this Act referred to as the Commissioner ), who shall— (1) be appointed by the President, by and with the advice and consent of the Senate; (2) carry out the duties described in subsection (c); and (3) report directly to the Secretary of Homeland Security. (c) Duties (1) In general The duties of the Commissioner shall include— (A) coordinating and integrating the security, trade facilitation, and trade enforcement functions of the U.S. Customs and Border Protection Agency; (B) directing the administration of the commercial operations as described in paragraph (2) and the noncommercial operations of the Agency; (C) otherwise safeguarding the homeland security interests of the United States; (D) ensuring that the overall economic security of the United States is not diminished by efforts, activities, and programs aimed at securing the homeland (as defined in section 2 of the Homeland Security Act of 2002 ( 6 U.S.C. 101 )); and (E) carrying out the duties and powers prescribed by law and such other duties as the Secretary of Homeland Security or the Secretary of the Treasury, as appropriate, may assign. (2) Commercial operations The commercial operations of the U.S. Customs and Border Protection Agency shall include— (A) administering any customs revenue function (as defined in section 415 of the Homeland Security Act of 2002 (6 U.S.C. 215)); (B) coordinating efforts of the Department of Homeland Security with respect to trade facilitation and, as appropriate, trade enforcement; (C) coordinating with the Director of U.S. Immigration and Customs Enforcement with respect to— (i) investigations relating to trade enforcement; and (ii) the development and implementation of the joint strategic plan on trade facilitation and trade enforcement required under section 123A of the Customs and Trade Act of 1990; (D) coordinating, on behalf of the Department of Homeland Security, efforts among Federal agencies with respect to trade facilitation and, as appropriate, trade enforcement, including representing the Department of Homeland Security in interagency fora addressing such efforts; (E) coordinating the efforts of the U.S. Customs and Border Protection Agency with the efforts of customs authorities of foreign countries to facilitate international trade and enforce customs and trade laws; (F) collecting, assessing, and disseminating information as appropriate and in accordance with law, regarding cargo destined for the United States, to enhance trade facilitation and, as appropriate, trade enforcement; and (G) otherwise advising the Secretary of Homeland Security with respect to the development of policies associated with trade facilitation and, as appropriate, trade enforcement. (d) Consultations (1) Resource needs In carrying out the duties described in subsection (c), the Commissioner shall consult with the Committee on Finance and Committee on Appropriations of the Senate and the Committee on Ways and Means and the Committee on Appropriations of the House of Representatives on a regular and timely basis regarding the resource needs of the U.S. Customs and Border Protection Agency to safeguard the economic security interests of the United States at land borders and ports of entry. (2) International negotiations The Commissioner shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives on a regular and timely basis regarding the status and substance of international negotiations relating to the customs and trade laws of the United States, or of foreign countries, in which personnel of the U.S. Customs and Border Protection Agency are participating. (3) Private sector input In carrying out the duties described in subsection (c), the Commissioner shall solicit and consider on a regular basis input from private sector entities, including the Customs Operations Advisory Committee, the Trade Support Network, and other entities affected by the efforts of the Federal Government relating to trade facilitation and trade enforcement, with respect to— (A) the implementation of new or amended customs and trade laws; and (B) the development, implementation, or revision of policies or regulations administered by the U.S. Customs and Border Protection Agency. (e) Compensation The Commissioner shall be compensated at the rate of pay for level III of the Executive Schedule as provided in section 5314 of title 5, United States Code. (f) Absence or disability of Commissioner The Deputy Commissioner for Trade, appointed pursuant to section 2, shall act as Commissioner during the absence or disability of the Commissioner or in the event that the position of Commissioner is vacant. (g) Definitions In this Act, the terms Customs Operations Advisory Committee , customs and trade laws of the United States , private sector entity , trade enforcement , trade facilitation , and Trade Support Network have the meanings given those terms in section 2 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 . . (b) Administrative continuity The Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq. ), is amended by striking section 3 (19 U.S.C. 2073) and all that follows and inserting the following: 3. Transfer of functions, assets, liabilities, and duties (a) In general Section 411 of the Homeland Security Act of 2002 ( 6 U.S.C. 211 ) is repealed, and the functions and associated personnel, assets, and liabilities, identified under such section 411 on the day before the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 are transferred to the U.S. Customs and Border Protection Agency. (b) Continuation in office The individual serving as Commissioner of Customs in the Department of Homeland Security on the day before the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 may serve as the Commissioner of the U.S. Customs and Border Protection Agency established under section 1 until the earlier of— (1) the date on which that individual is no longer eligible to serve as Commissioner of Customs; or (2) the date on which an individual nominated by the President to be the Commissioner of U.S. Customs and Border Protection is confirmed by the Senate. . (c) Conforming amendments (1) Title 5 Section 5314 of title 5, United States Code, is amended by striking Commissioner of Customs, Department of Homeland Security. and inserting Commissioner of U.S. Customs and Border Protection, Department of Homeland Security. . (2) Table of contents The table of contents for the Homeland Security Act of 2002 is amended by striking the item relating to section 411 and inserting the following: Sec. 411. [Reserved]. . 102. Officers and employees (a) In general Section 2 of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072 ), is amended to read as follows: 2. Deputy commissioners; trade advocate; other officers (a) Establishment of deputy commissioners (1) In general There shall be in the U.S. Customs and Border Protection Agency established under section 1 not more than 3 and not fewer than 2 deputy commissioners, each of whom shall report directly to the Commissioner. (2) Senior Executive Service position The position of a deputy commissioner established under paragraph (1) shall be a Senior Executive Service position (as defined in section 3132(a) of title 5, United States Code). (b) Deputy Commissioner for Trade (1) In general One of the deputy commissioners established under subsection (a)(1) shall be the Deputy Commissioner for Trade. (2) Duties The duties of the Deputy Commissioner for Trade shall include— (A) overseeing the commercial operations of the U.S. Customs and Border Protection Agency (as described in section 1(c)(2)); (B) overseeing the Office of Trade established under section 4 and the Office of International Affairs established under section 5; (C) overseeing the development and implementation of all policies and regulations administered by the Agency pursuant to the customs and trade laws of the United States; (D) coordinating the establishment of standards and policies for developing, delivering, and evaluating training programs for personnel of the Agency with responsibility for trade facilitation and trade enforcement; (E) overseeing the development and implementation of information technology, research, and communication functions, including automation and modernization strategies, that support the commercial operations of the Agency, including the implementation of the Automated Commercial Environment computer system authorized under section 13031(f)(5) of the Consolidated Omnibus Budget and Reconciliation Act of 1985 ( 19 U.S.C. 58c(f)(5) ); and (F) overseeing the administration of the financial management activities of the Agency, including accounting, budgeting, procurement, logistics, financial systems, policy, planning, and audit oversight. (3) Qualifications An individual appointed to be the Deputy Commissioner for Trade shall have a minimum of 10 years of professional experience in the operation of the customs and trade laws of the United States, not less than 3 of which shall involve either working with or for the private sector on matters relating to trade facilitation or trade enforcement. (4) Absence or disability of Deputy Commissioner for Trade The Assistant Commissioner of the Office of Trade, established under section 4, shall act as the Deputy Commissioner for Trade during the absence or disability of the Deputy Commissioner for Trade or in the event that the position of Deputy Commissioner for Trade is vacant. (c) Trade advocate (1) Establishment (A) In general There shall be in the office of the Commissioner a Trade Advocate, who shall be appointed by and report directly to the Commissioner. (B) Senior Executive Service position The position of Trade Advocate shall be a Senior Executive Service position (as defined in section 3132(a) of title 5, United States Code). (2) Duties The duties of the Trade Advocate shall include— (A) developing and maintaining strategic communications with private sector entities and the public to enhance trade facilitation and trade enforcement; (B) serving as the primary liaison between the U.S. Customs and Border Protection Agency and private sector entities and the public with respect to the Agency’s trade facilitation and trade enforcement functions; (C) consulting with private sector entities, including the Customs Operations Advisory Committee and the Trade Support Network, for their input with respect to— (i) the development, implementation, and impact of policies and regulations administered by the Agency; (ii) the development of the joint strategic plan on trade facilitation and trade enforcement required under section 123A of the Customs and Trade Act of 1990; (iii) the assessment of the effectiveness of the trade facilitation and trade enforcement activities of the Agency; (iv) trade modernization activities, including the development and implementation of the Automated Commercial Environment computer system authorized under section 13031(f)(5) of the Consolidated Omnibus Budget and Reconciliation Act of 1985 ( 19 U.S.C. 58c(f)(5) ) and support for the establishment of the International Trade Data System under the oversight of the Department of the Treasury pursuant to section 411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)); (v) the identification of private sector resources and capabilities that will supplement the trade facilitation and trade enforcement activities of the Agency; (D) advising the Commissioner with respect to the consultations described in subparagraph (C); (E) promoting existing public-private partnerships and developing new public-private partnerships to enhance the trade facilitation and trade enforcement activities of the Agency; and (F) otherwise consulting with private sector entities and the public as directed by the Commissioner or by law. (3) Qualifications An individual appointed to be the Trade Advocate shall have a minimum of 10 years of professional experience working with the customs and trade laws of the United States, not less than 3 of which shall have been spent working in the private sector. (4) Elimination of Office of Trade Relations (A) Transfer Not later than 30 days after the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 , the Secretary of Homeland Security shall transfer the assets, functions, personnel, and liabilities of the Office of Trade Relations of the U.S. Customs and Border Protection Agency to the Trade Advocate established under paragraph (1). (B) Elimination Not later than 30 days after the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 , the Office of Trade Relations shall be abolished. (C) Limitation on funds No funds appropriated to the Agency or the Department of Homeland Security may be used to transfer the assets, functions, personnel, and liabilities of the Office of Trade Relations to an office or official other than the Trade Advocate established under paragraph (1). (d) Other officers The Commissioner may appoint such other officers as are necessary to manage the individual offices within the U.S. Customs and Border Protection Agency. Any appointment of personnel under this subsection shall be subject to the provisions of the civil service laws, and the salaries shall be fixed in accordance with chapter 51 and subchapter III of chapter 53 of title 5, United States Code. . (b) Trade offices and functions The Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq. ), is amended by adding at the end the following: 4. Office of Trade (a) Establishment of Office of Trade There shall be in the U.S. Customs and Border Protection Agency an Office of Trade, which shall be headed by an Assistant Commissioner for Trade. (b) Transfer of assets, function, and personnel; elimination of offices (1) Office of International Trade (A) Transfer Not later than 30 days after the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 , the Secretary of Homeland Security shall transfer the assets, functions, personnel, and liabilities of the Office of International Trade to the Office of Trade established under subsection (a). (B) Elimination Not later than 30 days after the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 , the Office of International Trade shall be abolished. (C) Limitation on funds No funds appropriated to the U.S. Customs and Border Protection Agency or the Department of Homeland Security may be used to transfer the assets, functions, personnel, and liabilities of the Office of International Trade to an office other than the Office of Trade established under subsection (a). (D) Office of International Trade defined In this paragraph, the term Office of International Trade means the Office of International Trade established under subsection (d) of section 2 of this Act, as added by section 402 of the Security and Accountability for Every Port Act of 2006 ( Public Law 109–347 ; 120 Stat. 1924), and as in effect on the day before the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 . (2) Other transfers (A) In general The Commissioner is authorized to transfer any other assets, functions, or personnel within the U.S. Customs and Border Protection Agency to the Office of Trade established under subsection (a). (B) Congressional notification Not less than 90 days prior to the transfer of assets, functions, or personnel under subparagraph (A), the Commissioner shall notify the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives of the specific assets, functions, or personnel to be transferred, and the reason for the transfer. (c) Assistant Commissioner for Trade (1) Appointment (A) In general The Commissioner shall appoint an Assistant Commissioner for Trade who shall— (i) be the head of the Office of Trade; and (ii) report to the Deputy Commissioner for Trade of the U.S. Customs and Border Protection Agency. (B) Senior Executive Service position The position of Assistant Commissioner for Trade shall be a Senior Executive Service position (as defined in section 3132(a) of title 5, United States Code). (2) Qualifications An individual appointed to be the Assistant Commissioner for Trade shall have a minimum of 10 years of professional experience in the operation of the customs and trade laws of the United States, not less than 3 of which shall involve either working with or for the private sector on matters relating to trade facilitation or trade enforcement. (3) Duties The duties of the Assistant Commissioner for Trade shall include— (A) directing the development and implementation, pursuant to the customs and trade laws of the United States, of policies and regulations administered by the U.S. Customs and Border Protection Agency; (B) advising the Deputy Commissioner for Trade with respect to the impact on trade facilitation and trade enforcement of any policy or regulation otherwise proposed or administered by the Agency; (C) cooperating with the Assistant Commissioner for Field Operations with respect to the trade facilitation and trade enforcement activities of the Agency carried out at the land borders and ports of entry of the United States; (D) directing the development and implementation of matters relating to the priority trade issues identified by the Commissioner in the joint strategic plan on trade facilitation and trade enforcement required under section 123A of the Customs and Trade Act of 1990; (E) otherwise advising the Commissioner with respect to the development and implementation of the joint strategic plan; (F) directing the trade enforcement activities of the Agency, including the activities of the National Targeting and Analysis Groups established under section 211 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 ; (G) overseeing the trade modernization activities of the Agency, including the development and implementation of the Automated Commercial Environment computer system authorized under section 13031(f)(5) of the Consolidated Omnibus Budget and Reconciliation Act of 1985 ( 19 U.S.C. 58c(f)(5) ) and support for the establishment of the International Trade Data System under the oversight of the Department of the Treasury pursuant to section 411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)); (H) directing the administration of customs revenue functions as otherwise provided by law or delegated by the Commissioner; and (I) preparing an annual report to be submitted to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not later than March 1 of each calendar year that includes— (i) a summary of the changes to customs policies and regulations adopted by the Agency during the preceding calendar year; and (ii) a description of the public vetting and interagency consultation that occurred with respect to each such change. (4) Continuation in office The individual serving as the Assistant Commissioner of the Office of International Trade on the day before the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 may serve as the Assistant Commissioner for Trade on or after such date of enactment, at the discretion of the Commissioner. 5. Office of International Affairs (a) Establishment of Office of International Affairs There shall be in the U.S. Customs and Border Protection Agency an Office of International Affairs, which shall be headed by an Assistant Commissioner for International Affairs. (b) Assistant Commissioner for International Affairs (1) Appointment (A) In general The Commissioner shall appoint an Assistant Commissioner for International Affairs who shall— (i) be the head of the Office of International Affairs; and (ii) report to the Deputy Commissioner for Trade of the U.S. Customs and Border Protection Agency. (B) Senior Executive Service position The position of Assistant Commissioner for International Affairs shall be a Senior Executive Service position (as defined in section 3132(a) of title 5, United States Code). (2) Qualifications An individual appointed to be the Assistant Commissioner for International Affairs shall have a minimum of 10 years of professional experience in the operation of the customs and trade laws of the United States, not less than 3 of which shall involve either working with or for the private sector on matters relating to trade facilitation or trade enforcement. (3) Duties The duties of the Assistant Commissioner for International Affairs shall include— (A) coordinating the initiatives, programs, and activities of the U.S. Customs and Border Protection Agency in foreign countries, including employees of the Agency in foreign countries; (B) advising the Commissioner with respect to matters arising in the World Customs Organization and, if appropriate, the World Trade Organization and other international organizations; (C) ensuring that the policies and regulations of the Agency are consistent with the obligations of the United States pursuant to international agreements; (D) coordinating with other Federal agencies on international efforts to enhance trade facilitation and trade enforcement by the Agency; (E) coordinating with the customs authorities of foreign countries with respect to trade facilitation and, as appropriate, trade enforcement; and (F) providing training and capacity building to customs authorities of foreign countries. (4) Continuation in office The individual serving as the Assistant Commissioner of the Office of International Affairs on the day before the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 may serve as the Assistant Commissioner for International Affairs on or after such date of enactment, at the discretion of the Commissioner. 6. Coordination between the Assistant Commissioner for Trade and the Assistant Commissioner for Field Operations To advance the security, trade facilitation, and trade enforcement missions of the U.S. Customs and Border Protection Agency, the Commissioner shall ensure that the Assistant Commissioner for Trade and the Assistant Commissioner for Field Operations of the Agency work together on— (1) trade facilitation and trade enforcement activities at United States ports of entry; (2) operational training of personnel within the Office of Field Operations at United States ports of entry to administer trade facilitation and trade enforcement activities; (3) evaluating the operational effectiveness of the trade facilitation and trade enforcement activities at United States ports of entry by personnel of the Office of Field Operations; (4) cooperating with the Trade Advocate established under section 2(c) to ensure that any information received from private sector entities regarding the trade facilitation and trade enforcement activities of the Agency is considered; (5) ensuring the uniform administration and implementation among United States ports of entry of new or revised customs and trade laws, policies, or regulations related to the trade facilitation and trade enforcement activities of the Agency; (6) implementing the operational provisions of the joint strategic plan on trade facilitation and trade enforcement required under section 123A of the Customs and Trade Act of 1990 related to the trade facilitation and trade enforcement activities of the Agency at United States ports of entry; (7) in cooperation with the Office of International Affairs established under section 5, ensuring that trade facilitation and trade enforcement activities comply with obligations of the United States pursuant to international agreements; (8) ensuring the prompt collection of available data regarding cargo that violates the customs and trade laws of the United States, and the prompt issuance of Trade Alerts pursuant to section 211 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 ; and (9) otherwise overseeing the trade facilitation and trade enforcement activities of personnel within the Office of Field Operations at United States ports of entry. 7. Establishment of Trade Facilitation and Trade Enforcement Division in Office of Field Operations; Division personnel (a) Establishment There is established in the Office of Field Operations of the U.S. Customs and Border Protection Agency a Trade Facilitation and Trade Enforcement Division. (b) Division personnel (1) Headquarters personnel The Commissioner shall assign sufficient personnel to operate the Trade Facilitation and Trade Enforcement Division in the Office of Field Operations established under subsection (a). (2) Commercial enforcement officers (A) In general Not later than 180 days after the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 , the Commissioner shall designate and dedicate within the Office of Field Operations not fewer than 40 commercial enforcement officers. (B) Assignment The Commissioner shall assign the commercial enforcement officers authorized under this subsection among the 40 United States ports of entry that experienced the highest volume of trade during fiscal year 2013. (C) Duties The duties of a commercial enforcement officer shall be— (i) to supervise all trade enforcement activities of personnel of the Office of Field Operations at the port of entry to which the commercial enforcement officer has been assigned; (ii) to coordinate with the Office of Trade all trade enforcement activities at that port of entry; (iii) to direct the training of personnel at that port of entry to effectuate the trade enforcement activities of the Office of Field Operations; and (iv) to otherwise conduct trade enforcement activities at that port of entry. 8. Customs Facilitation and Enforcement Interagency Committee (a) Establishment The Commissioner shall establish a Customs Facilitation and Enforcement Interagency Committee (in this section referred to as the Committee ) to improve coordination and collaboration among Federal agencies with respect to trade facilitation and trade enforcement. (b) Functions The functions of the Committee shall include— (1) advising the Commissioner with respect to policies or regulations of the U.S. Customs and Border Protection Agency that may significantly affect— (A) the trade facilitation and trade enforcement missions of the Agency; or (B) the international trade policy, trade commitments, or trade competitiveness of the United States; (2) consulting with the Commissioner with respect to the development and implementation of policies of agencies that are represented on the Committee that significantly affect the trade facilitation and trade enforcement missions of the Agency; (3) reviewing recommendations of and addressing concerns identified by the Customs Facilitation and Enforcement Review Group established under subsection (d); and (4) such other functions as are agreed on by the Commissioner and the members of the Committee. (c) Membership The members of the Committee shall be the following: (1) The Commissioner. (2) The Deputy Commissioner for Trade of the U.S. Customs and Border Protection Agency. (3) The Assistant Secretary for Tax Policy of the Department of the Treasury. (4) The Administrator of the Animal and Plant Health Inspection Service of the Department of Agriculture. (5) The Director of the Bureau of Alcohol, Tobacco, Firearms, and Explosives of the Department of Justice. (6) The Chairman of the Consumer Product Safety Commission. (7) The Administrator of the Environmental Protection Agency. (8) The Commissioner of Food and Drugs of the Department of Health and Human Services. (9) The Administrator of the Food Safety and Inspection Service of the Department of Agriculture. (10) The Director of U.S. Immigration and Customs Enforcement of the Department of Homeland Security. (11) The Administrator of the National Highway Traffic Safety Administration of the Department of Transportation. (12) The Assistant Administrator for Fisheries of the National Oceanic and Atmospheric Administration of the Department of Commerce. (13) The Under Secretary for International Trade of the Department of Commerce. (14) A Deputy United States Trade Representative. (15) Senior officials of such other Federal agencies as the Commissioner determines appropriate. (d) Customs Facilitation and Enforcement Review Group (1) Establishment The Committee shall establish a Customs Facilitation and Enforcement Review Group (in this subsection referred to as the Review Group ) as a subordinate body of the Committee. (2) Membership The members of the Review Group shall be— (A) the Deputy Commissioner for Trade of the U.S. Customs and Border Protection Agency or another senior official of the Agency designated by the Commissioner, who shall serve as chairperson of the Review Group; and (B) a senior official of each agency represented on the Committee. (3) Meetings The Deputy Commissioner for Trade shall convene the Review Group as needed to carry out the functions of the Review Group under paragraph (4) and any other duties assigned to the Review Group by the Committee. (4) Functions The functions of the Review Group shall include— (A) reviewing, and advising the Committee with respect to, proposed policies, procedures, regulations, and activities of the U.S. Customs and Border Protection Agency that may significantly affect— (i) the trade facilitation and trade enforcement missions of the Agency; or (ii) the international trade policy, trade commitments, or trade competitiveness of the United States; (B) advising the Committee with respect to the development and implementation of policies, procedures, regulations, and activities of agencies represented on the Committee that significantly affect the trade facilitation and trade enforcement missions of the Agency; and (C) such other functions as the Committee may direct. . (c) Conforming amendment Section 5315 of title 5, United States Code, is amended by adding at the end the following: Deputy Commissioners of U.S. Customs and Border Protection, Department of Homeland Security (3). . (d) Conforming repeal Section 650 of the Tariff Act of 1930 ( 19 U.S.C. 1650 ) is repealed. 103. Separate budget requests for U.S. Customs and Border Protection Agency (a) In general The President shall include in each budget transmitted to Congress under section 1105 of title 31, United States Code, two separate budget requests for the U.S. Customs and Border Protection Agency— (1) one for the commercial operations of the Agency; and (2) one for the noncommercial operations of the Agency. (b) Repeal (1) In general Section 414 of the Homeland Security Act of 2002 ( 6 U.S.C. 214 ) is repealed. (2) Conforming amendment The table of contents for the Homeland Security Act of 2002 is amended by striking the item relating to section 414 and inserting the following: Sec. 414. [Reserved]. . 104. Revolving fund The matter under the heading revolving fund, bureau of customs in the Treasury and Post Office Departments Appropriation Act, 1950 (63 Stat. 360, chapter 286; 19 U.S.C. 2074 ), is amended by striking United States Customs Service and inserting U.S. Customs and Border Protection Agency . 105. Advances in foreign countries The matter under the heading Bureau of Customs in the Treasury Department Appropriation Act 1940 (53 Stat. 660, chapter 115; 19 U.S.C. 2076 ) is amended in the last proviso by striking Bureau of Customs and inserting U.S. Customs and Border Protection Agency or the U.S. Immigration and Customs Enforcement Agency . 106. Advances for enforcement of customs provisions Section 2 of the Act of March 28, 1928 (45 Stat. 374, chapter 266; 19 U.S.C. 2077 ), is amended to read as follows: 2. Advances for enforcement of customs provisions The Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement, with the approval of the Secretary of Homeland Security and the Secretary of the Treasury, are each authorized to direct the advance of funds by the Fiscal Service of the Department of the Treasury in connection with the enforcement of the customs and trade laws of the United States (as defined in section 2 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 ). . 107. Certification of reason for advance Section 3 of the Act of March 28, 1928 (45 Stat. 374, chapter 266; 19 U.S.C. 2078 ), is amended by striking Commissioner of Customs and inserting Commissioner of U.S. Customs and Border Protection or the Director of U.S. Immigration and Customs Enforcement . 108. Payments in foreign countries; claims for reimbursement Section 4 of the Act of March 28, 1928 (45 Stat. 374, chapter 266; 19 U.S.C. 2079 ), is amended to read as follows: 4. Payments in foreign countries; claims for reimbursement The provisions of this Act shall not affect payments made for the U.S. Customs and Border Protection Agency or the U.S. Immigration and Customs Enforcement Agency in foreign countries, or the right of any officer or employee of either such Agency to claim reimbursement for personal funds expended in connection with the enforcement of the customs and trade laws of the United States (as defined in section 2 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 ). . 109. Customs administration Section 113 of the Customs and Trade Act of 1990 ( 19 U.S.C. 2082 ) is amended to read as follows: 113. Customs Administration (a) In general The Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement each shall— (1) develop and implement accounting systems that accurately determine and report the allocation of the personnel and other resources of the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency among the various operational functions of each Agency, such as merchandise processing, passenger processing, drug enforcement, trade facilitation, and trade enforcement; and (2) develop and implement periodic labor distribution surveys of major workforce activities within the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency to determine the cost of the various operational functions of each Agency and the extent to which the costs of one Agency are covered by the other Agency. (b) Survey reports Not later than one year after the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 , the Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement shall each 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 results of the first surveys implemented under subsection (a)(2). . 110. Personnel (a) In general Subsection (a) of section 401 of the Security and Accountability for Every Port Act of 2006 ( 6 U.S.C. 115 ) is amended to read as follows: (a) Director of Trade Policy (1) In general There shall be in the Office of Policy of the Department of Homeland Security a Director of Trade Policy, who shall— (A) coordinate with the Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement to ensure that the economic security interests of the United States associated with international trade, including trade facilitation and trade enforcement (as defined in section 2 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 ), are considered in the development and implementation of policies within the Department of Homeland Security; (B) engage with law enforcement and customs authorities of foreign countries and private sector entities to build on existing efforts to develop, strengthen, and implement international standards for securing key systems of the global economy and more effectively facilitating trade; and (C) submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives, not later than December 15 of each year, a report describing how the Department of Homeland Security accounted for the economic security interests of the United States associated with international trade, including trade facilitation and trade enforcement, in developing and implementing policies during the preceding fiscal year. (2) Qualifications The Director of Trade Policy shall have significant experience in the development, operation, or administration of the customs and trade laws of the United States (as defined in section 2 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 ). . (b) New personnel Subsection (c) of section 412 of the Homeland Security Act of 2002 ( 6 U.S.C. 212(c) ) is amended to read as follows: (c) New personnel Not later than 90 days after the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 , the Secretary of the Treasury shall designate and dedicate not fewer than 5 and not more than 20 full-time equivalent personnel to work exclusively with the Deputy Assistant Secretary of the Treasury for Tax, Trade, and Tariff Policy in the performance and oversight of customs revenue functions. . 111. Authorization of appropriations (a) In general Section 301 of the Customs Procedural Reform and Simplification Act of 1978 ( 19 U.S.C. 2075 ) is amended— (1) by redesignating subsection (h) as subsection (i); and (2) by striking subsections (a) through (g) and inserting the following: (a) In general (1) Fiscal year 2014 and each fiscal year thereafter For fiscal year 2014 and each fiscal year thereafter, there are authorized to be appropriated to the Department of Homeland Security for the U.S. Customs and Border Protection Agency only such sums as may hereafter be authorized by law. (2) Requirement for authorization The authorization of appropriations for the U.S. Customs and Border Protection Agency for fiscal year 2014 and each fiscal year thereafter shall specify— (A) the amount authorized for the fiscal year for the salaries and expenses of the Agency in conducting commercial operations (as described in section 1(c)(2) of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 )); and (B) the amount authorized for the fiscal year for the salaries and expenses of the Agency for noncommercial operations. (b) Authorization of appropriations There are authorized to be appropriated for the salaries and expenses of the U.S. Customs and Border Protection Agency that are incurred in commercial operations such sums as are necessary for fiscal years 2014 through 2018. (c) Customs user fee account The monies authorized to be appropriated pursuant to subsection (b) for any fiscal year, except for such sums as may be necessary for the salaries and expenses of the U.S. Customs and Border Protection Agency that are incurred in connection with the processing of merchandise that is exempt from the fees imposed pursuant to paragraphs (9) and (10) of section 13031(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985 ( 19 U.S.C. 58c(a) ), shall be appropriated from the Customs User Fee Account. (d) Mandatory 10-Day deferment No part of the funds appropriated pursuant to subsection (a) for any fiscal year may be used to provide less time for the collection of estimated duties than the 10-day deferment procedure in effect on January 1, 1981. (e) Overtime pay limitations; waiver No part of the funds appropriated pursuant to subsection (a) for any fiscal year may be used for administrative expenses to pay any employee of the U.S. Customs and Border Protection Agency overtime pay in an amount exceeding $35,000 unless the Secretary of Homeland Security, or the designee of the Secretary, determines on an individual basis that payment of overtime pay to such employee in an amount exceeding $35,000 is necessary for national security purposes, to prevent excessive costs, or to meet emergency requirements of the Agency. (f) Pay comparability authorization For fiscal year 2014 and each fiscal year thereafter, there are authorized to be appropriated to the Department of Homeland Security for salaries of the U.S. Customs and Border Protection Agency such additional sums as may be provided by law to reflect pay rate changes made in accordance with subchapter I of chapter 53 of title 5, United States Code. (g) Use of savings resulting from administrative consolidations If savings in salaries and expenses result from the consolidation of administrative functions within the U.S. Customs and Border Protection Agency, the Commissioner of U.S. Customs and Border Protection shall apply the savings, to the extent the savings are not needed to meet emergency requirements of the Agency, to strengthening the commercial operations of the Agency. (h) Allocation of resources; report to congressional committees The Commissioner of U.S. Customs and Border Protection shall notify the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives at least 180 days prior to taking any action that would— (1) result in any significant reduction in force of employees of the U.S. Customs and Border Protection Agency other than by means of attrition; (2) result in any significant reduction in hours of operation or services rendered at any office of the Agency or any United States port of entry; (3) eliminate or relocate any office of the Agency; (4) eliminate any United States port of entry; or (5) significantly reduce the number of employees assigned to any office or any function of the Agency. . (b) Resource optimization model Subsection (i) of section 301 of the Customs Procedural Reform and Simplification Act of 1978, as redesignated by subsection (a), is amended by striking Resource Allocation Model each place it appears in the text and in the heading and inserting Resource Optimization Model . (c) Conforming amendments (1) In general Subsection (c) of section 5 of the Act of February 13, 1911 (36 Stat. 901, chapter 46; 19 U.S.C. 267 ), is amended to read as follows: (c) Limitations (1) Fiscal year cap The aggregate of overtime pay under subsection (a) (including commuting compensation under subsection (a)(2)(B)) and premium pay under subsection (b) that an employee of the U.S. Customs and Border Protection Agency may be paid in any fiscal year may not exceed $35,000 unless the Secretary of Homeland Security, or the designee of the Secretary, determines on an individual basis that payment of overtime pay to such employee in an amount exceeding $35,000 is necessary for national security purposes, to prevent excessive costs, or to meet emergency requirements of the Agency. (2) Exclusivity of pay under this section An employee of the Agency who receives overtime pay under subsection (a), or premium pay under subsection (b) for time worked, may not receive pay or other compensation for that work under any other provision of law. . (2) Basic pay Section 8331(3)(G) of title 5, United States Code, is amended— (A) by striking a customs officer and all that follows through 1911) and inserting an employee of the U.S. Customs and Border Protection Agency ; (B) by striking subsection (a) of such section 5 and inserting subsection (c) of section 5 of the Act of February 13, 1911 (36 Stat. 901, chapter 46; 19 U.S.C. 267 ) ; and (C) by striking customs officers and inserting such employees . B Investigative functions 121. Establishment of U.S. Immigration and Customs Enforcement Agency (a) In general Section 442 of the Homeland Security Act of 2002 ( 6 U.S.C. 252 ) is amended to read as follows: 442. Establishment of U.S. Immigration and Customs Enforcement Agency; Director (a) Establishment of agency There shall be in the Department of Homeland Security an agency to be known as the U.S. Immigration and Customs Enforcement Agency. (b) Establishment of Director (1) In general The head of the U.S. Immigration and Customs Enforcement Agency shall be a Director of U.S. Immigration and Customs Enforcement (in this section referred to as the Director ), who shall— (A) be appointed by the President, by and with the advice and consent of the Senate; (B) carry out the duties and powers described in subsection (c), prescribed by law, and prescribed by the Secretary of Homeland Security; (C) report directly to the Secretary of Homeland Security; and (D) have a minimum of 5 years professional experience in law enforcement, and a minimum of 5 years of management experience. (2) Committee referral As an exercise of the rulemaking power of the Senate, any nomination for Director shall be referred to the Committee on Finance. If the Committee on Finance has not reported such nomination at the close of the 30th day after its referral to such Committee, the Committee shall be automatically discharged from further consideration of such nomination and such nomination shall be referred to the Committee on the Judiciary. (3) Compensation The Director shall be compensated at the rate of pay for level III of the Executive Schedule as provided in section 5314 of title 5, United States Code. (c) Duties of Director The duties of the Director shall include— (1) establishing and overseeing the administration of policies with respect to functions— (A) performed under the detention and removal program, the intelligence program, and the investigations program that were transferred to the Under Secretary for Border and Transportation Security by section 441 and delegated to the Assistant Secretary for U.S. Immigration and Customs Enforcement on the day before the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 ; and (B) otherwise vested in the Assistant Secretary on the day before such date of enactment; (2) advising the Secretary with respect to any policy or operation of the U.S. Immigration and Customs Enforcement Agency that may affect the U.S. Citizenship and Immigration Services established under subtitle E, including potentially conflicting policies and operations; (3) conducting and coordinating investigations of violations of the customs and trade laws of the United States (as defined in section 2 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 ) and, when appropriate, referring alleged violations of such laws for criminal prosecution; (4) coordinating efforts with law enforcement and customs authorities of foreign countries to investigate violations of customs and trade laws; and (5) coordinating with the Commissioner of U.S. Customs and Border Protection with respect to investigations of violations of the customs and trade laws of the United States and ensuring the development and implementation of the joint strategic plan on trade facilitation and trade enforcement required under section 123A of the Customs and Trade Act of 1990. (d) Deputy director The Director is authorized to appoint, in the U.S. Immigration and Customs Enforcement Agency established under subsection (a), one Deputy Director who shall assist the Director in the management of the Agency and who shall act for the Director during the absence or disability of the Director or in the event that the position of Director is vacant. (e) Additional officers The Director may appoint such officers as are necessary to manage the individual offices within the U.S. Immigration and Customs Enforcement Agency. (f) Program To Collect information relating to foreign students The Director shall be responsible for administering the program to collect information relating to nonimmigrant foreign students and other exchange program participants described in section 641 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ( 8 U.S.C. 1372 ), including the Student and Exchange Visitor Information System established pursuant to that section, and shall use such information to carry out the enforcement functions of the U.S. Immigration and Customs Enforcement Agency. (g) Chief of policy and strategy (1) In general There shall be a position of Chief of Policy and Strategy for the U.S. Immigration and Customs Enforcement Agency. (2) Functions In consultation with personnel in local offices of the Agency, the Chief of Policy and Strategy shall be responsible for— (A) making policy recommendations and performing policy research and analysis on immigration enforcement issues; and (B) coordinating immigration policy issues with the Chief of Policy and Strategy for the Bureau of Citizenship and Immigration Services established under section 451(c), as appropriate. (h) Legal advisor There shall be a principal legal advisor to the Director. The legal advisor shall provide specialized legal advice to the Director and shall represent the U.S. Immigration and Customs Enforcement Agency in all exclusion, deportation, and removal proceedings before the Executive Office for Immigration Review. . (b) Compensation (1) In general Section 5314 of title 5, United States Code, is amended by adding at the end the following: Director of U.S. Immigration and Customs Enforcement, Department of Homeland Security. . (2) Continuation in office The individual serving as Assistant Secretary for U.S. Immigration and Customs Enforcement of the Department of Homeland Security on the day before the date of the enactment of this Act may serve as Director of U.S. Immigration and Customs Enforcement until the earlier of— (A) the date on which that individual is no longer eligible to serve as Assistant Secretary; or (B) the date on which an individual nominated by the President to be the Director of U.S. Immigration and Customs Enforcement is confirmed by the Senate. (3) Reference On and after the date of the enactment of this Act, any reference to the Assistant Secretary for U.S. Immigration and Customs Enforcement or the Assistant Secretary of the Bureau of Border Security of the Department of Homeland Security, shall be deemed to be a reference to the Director of U.S. Immigration and Customs Enforcement. (c) Conforming amendments (1) The heading for subtitle D of title IV of the Homeland Security Act of 2002 is amended to read as follows: D Enforcement functions . (2) The table of contents for the Homeland Security Act of 2002 is amended— (A) by striking the item relating to section 442 and inserting the following: Sec. 442. Establishment of U.S. Immigration and Customs Enforcement Agency; Director. ; and (B) by striking the item relating to subtitle D of title IV and inserting the following: Subtitle D—Enforcement functions . (3) Section 451(a)(2)(C) of the Homeland Security Act of 2002 ( 6 U.S.C. 271(a)(2)(C) ) is amended by striking Assistant Secretary of the Bureau of Border Security and inserting Director of U.S. Immigration and Customs Enforcement . 122. Separate budget requests for U.S. Immigration and Customs Enforcement Agency The President shall include in each budget transmitted to Congress under section 1105 of title 31, United States Code, two separate budget requests for the U.S. Immigration and Customs Enforcement Agency— (1) one for the customs operations of the Agency; and (2) one for the operations of the Agency other than customs operations. 123. Undercover investigative operations Section 3131 of the Customs Enforcement Act of 1986 ( 19 U.S.C. 2081 ) is amended— (1) in the section heading, by striking Customs Service and inserting U.S. Immigration and Customs Enforcement Agency ; (2) in subsection (a)— (A) in the matter preceding paragraph (1)— (i) by striking United States Customs Service (hereinafter in this section referred to as the Service ) and inserting U.S. Immigration and Customs Enforcement Agency (in this section referred to as the Agency ) ; and (ii) by striking the Treasury and inserting Homeland Security ; (B) in paragraph (1)— (i) in the matter preceding subparagraph (A), by striking for the Service ; and (ii) in subparagraph (A), by striking clauses (i) through (v) and inserting the following: (i) sections 1341 and 3324 of title 31, United States Code, (ii) section 8141 of title 40, United States Code, and (iii) sections 3901, 6301, and 6306, and chapter 45, of title 41, United States Code, and ; (C) in paragraph (2), by striking Service and inserting Agency ; and (D) in the flush text at the end, by striking Commissioner of Customs (or, if designated by the Commissioner the Deputy or an Assistant Commissioner of Customs) and inserting Director of U.S. Immigration and Customs Enforcement (or such other officer within the Agency as the Director may designate) ; (3) in subsection (b), by striking Service, as much in advance as the Commissioner or his designee determines is practicable, shall report the circumstances to the Secretary of the Treasury and inserting Agency, as much in advance as the Director (or such other officer within the Agency as the Director may designate) determines is practicable, shall report the circumstances to the Secretary of Homeland Security and the Secretary of the Treasury ; (4) in subsection (d)— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A), by striking Service and inserting Director of U.S. Immigration and Customs Enforcement ; and (ii) in subparagraph (A), by inserting the Secretary of Homeland Security and after in writing to ; and (B) in paragraph (2), in the matter preceding subparagraph (A)— (i) by striking Service and inserting Director ; and (ii) by striking as to its undercover investigative operations and inserting with respect to the undercover investigative operations of the Agency ; and (5) in subsection (e), by striking Service each place it appears and inserting Agency . 124. Authorization of appropriations Title III of the Customs Procedural Reform and Simplification Act of 1978 ( 19 U.S.C. 2075 ) is amended by inserting after section 301 the following: 302. Authorization of appropriations for certain customs enforcement activities (a) In general (1) Fiscal year 2014 and each fiscal year thereafter For fiscal year 2014 and each fiscal year thereafter, there are authorized to be appropriated to the Department of Homeland Security for the U.S. Immigration and Customs Enforcement Agency only such sums as may hereafter be authorized by law. (2) Specification of amounts The authorization of the appropriations for the U.S. Immigration and Customs Enforcement Agency for fiscal year 2014 and each fiscal year thereafter shall specify— (A) the amount authorized for the fiscal year for the salaries and expenses of the Agency in conducting customs operations; and (B) the amount authorized for the fiscal year for the salaries and expenses of the Agency for other than customs operations. (b) Authorization of appropriations There are authorized to be appropriated for the salaries and expenses of the U.S. Immigration and Customs Enforcement Agency that are incurred in customs operations such sums as are necessary for fiscal years 2014 through 2018. . C Joint strategic plan on trade facilitation and trade enforcement 131. Joint strategic plan on trade facilitation and trade enforcement (a) In general Subtitle C of title I of the Customs and Trade Act of 1990 ( Public Law 101–382 ; 104 Stat. 629) is amended by inserting after section 123 ( 19 U.S.C. 2083 ) the following: 123A. Joint strategic plan on trade facilitation and trade enforcement (a) In general Not later than one year after the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 , and every 2 years thereafter, the Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration 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 on trade facilitation and trade enforcement. (b) Contents The joint strategic plan required by subsection (a) shall be comprised of a comprehensive multiyear plan for trade facilitation and trade enforcement and shall include— (1) a summary of actions taken during the 2-year period preceding the submission of the report to improve trade facilitation and trade enforcement, including a description and analysis of specific performance measures to evaluate the progress of the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency with respect to trade facilitation and trade enforcement; (2) a statement of objectives and plans for further improving trade facilitation and trade enforcement; (3) a statement of objectives and plans to strengthen the economic security and competitiveness of the United States; (4) a designation of priority trade issues that that can be addressed in order to enhance trade facilitation and trade enforcement and a description of strategies, plans, and metrics for addressing each such issue; (5) a description of efforts made to improve consultation and coordination among Federal agencies, and in particular between the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency, to enhance trade facilitation and trade enforcement; (6) a description of efforts to work with the World Customs Organization, the World Trade Organization, and other international organizations with respect to enhancing trade facilitation and trade enforcement; (7) a description of efforts made to improve consultation and coordination with the private sector to enhance trade facilitation and trade enforcement; (8) a description of the training that has occurred during the 2-year period preceding the submission of the report within the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency to improve trade facilitation and trade enforcement; (9) a specific identification of any domestic or international best practices or technologies that may further improve trade facilitation and trade enforcement; and (10) any legislative recommendations to further improve trade facilitation and trade enforcement. (c) Consultations In developing the joint strategic plan required by subsection (a), the Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement shall consult with— (1) appropriate officials of agencies represented on the Customs Facilitation and Enforcement Interagency Committee established under section 8 of the Act of March 3, 1927, and such other agencies as the Commissioner or the Director determine appropriate; and (2) the Customs Operations Advisory Committee and the Trade Support Network, as appropriate. (d) Definitions In this section, the terms Customs Operations Advisory Committee , trade enforcement , trade facilitation , and Trade Support Network have the meanings given those terms in section 2 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 . . (b) Conforming amendment The table of contents for the Customs and Trade Act of 1990 is amended by inserting after the item relating to section 123 the following: Sec. 123A. Joint strategic plan on trade facilitation and trade enforcement. . II Trade facilitation, trade enforcement, and transparency A Trade facilitation and transparency 201. Improving partnership programs (a) In general In order to advance the security, trade facilitation, and trade enforcement missions of the U.S. Customs and Border Protection Agency, the Commissioner shall ensure that partnership programs of the Agency established before the date of the enactment of this Act, such as the Customs–Trade Partnership Against Terrorism established under subtitle B of title II of the Security and Accountability for Every Port Act of 2006 (6 U.S.C. 961 et seq.), and partnership programs of the Agency established after such date of enactment, provide trade benefits to private sector entities that meet the requirements for participation in those programs established by the Commissioner under this section. (b) Elements In developing and operating partnership programs under subsection (a), the Commissioner shall— (1) consult with private sector entities, the public, and other Federal agencies when appropriate, to ensure that participants in those programs receive commercially significant and measurable trade benefits; (2) ensure an integrated and transparent system of trade benefits and compliance requirements for all partnership programs of the U.S. Customs and Border Protection Agency; (3) consider consolidating partnership programs in situations in which doing so would support the objectives of such programs, increase participation in such programs, enhance the trade benefits provided to participants in such programs, and enhance the allocation of the resources of the Agency; (4) coordinate with other Federal agencies with authority to detain and release merchandise entering the United States— (A) to ensure coordination in the release of such merchandise through the Automated Commercial Environment computer system, or its predecessor, and the International Trade Data System; (B) to ensure that the partnership programs of those agencies are compatible with the partnership programs of the U.S. Customs and Border Protection Agency; and (C) to develop criteria for authorizing the release, on an expedited basis, of merchandise for which documentation is required from one or more of those agencies to clear or license the merchandise for entry into the United States; 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 Commissioner 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), including the program referred to in section 499A of the Tariff Act of 1930, as added by section 202; (2) for each such program, identifies— (A) the requirements for participants in the program; (B) the commercially significant and measurable trade benefits provided to participants in the program; (C) the number of participants in the program; and (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 enrolled in more than one such partnership program; (4) assesses the effectiveness of each such partnership program in advancing the security, trade facilitation, and trade enforcement missions of the U.S. Customs and Border Protection Agency, based on historical developments, the level of participation in the program, and the evolution of benefits provided to participants in the program; (5) summarizes the efforts of the Agency to work with other Federal agencies with authority to detain and release merchandise entering the United States to ensure that partnership programs of those agencies are compatible with partnership programs of the Agency; (6) identifies from among those agencies the agencies that are collaborating with the Commissioner to provide benefits pursuant to subsection (f) of section 499A of the Tariff Act of 1930, as added by section 202; (7) summarizes criteria developed with those agencies for authorizing the release, on an expedited basis, of merchandise for which documentation is required from one or more of those agencies to clear or license the merchandise for entry into the United States; (8) summarizes the efforts of the Agency to work with private sector entities and the public to develop and improve partnership programs referred to in subsection (a); (9) describes measures taken by the Agency to make private sector entities aware of the trade benefits available to participants in such programs; and (10) summarizes the plans, targets, and goals of the Agency with respect to such programs for the 2 years following the submission of the report. 202. Trade facilitation partnership program (a) In general Title IV of the Tariff Act of 1930 (19 U.S.C. 1401 et seq.) is amended by adding at the end the following: 499A. Trade facilitation partnership program (a) In general The Commissioner of U.S. Customs and Border Protection (in this section referred to as the Commissioner ) shall establish a voluntary government–private sector program or modify an existing such program to enhance trade facilitation and trade enforcement and to provide trade benefits developed under subsection (c) to qualified persons. (b) Qualified person defined For purposes of this section, the term qualified person means a person that— (1) is involved in the entry of merchandise into the United States, including as an intermodal transportation system provider, contract logistics provider, air, land, or sea carrier, customs broker, importer, or forwarder; and (2) demonstrates compliance with the requirements established under subsection (e) in accordance with the procedures established under subsection (d). (c) Trade benefits (1) In general The Commissioner shall, in consultation with the entities specified in paragraph (3), develop enhanced commercially significant and measurable trade benefits to be provided to qualified persons. (2) Requirements The trade benefits developed under paragraph (1) shall— (A) be designed to expedite the release of merchandise of qualified persons upon arrival of the merchandise in the United States; and (B) include— (i) consideration of the status of persons as qualified persons for the purposes of commercial targeting under section 211(c) of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 ; (ii) to the extent practicable, giving priority to qualified persons with respect to the clearance of merchandise during activities to resume trade after any disruption to the processing of merchandise entering the United States; (iii) providing preclearance of merchandise for qualified persons that demonstrate the highest levels of compliance with the customs and trade laws of the United States, regulations of the U.S. Customs and Border Protection Agency, and requirements established under subsection (e); and (iv) any other trade benefits the Commissioner determines appropriate for achieving the goals of the program under subsection (a). (3) Entities specified The entities specified in this paragraph are— (A) the Customs Operations Advisory Committee established under section 205 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 ; (B) the Trade Support Network (as defined in section 2 of that Act); (C) the Committee on Finance of the Senate; and (D) the Committee on Ways and Means of the House of Representatives. (d) Procedures The Commissioner shall establish procedures with respect to the following: (1) Submission and approval of applications to receive trade benefits under the program under subsection (a). (2) Verification that an applicant to receive trade benefits under the program is a qualified person. (3) Reverification that a person receiving trade benefits under the program continues to be a qualified person. (4) Withdrawal of trade benefits from a person that the Commissioner determines is not a qualified person. (5) Appeals of decisions of the Commissioner under this section. (e) Requirements (1) In general The Commissioner, in consultation with the entities specified in subsection (c)(3)— (A) shall establish requirements for receiving trade benefits under the program under subsection (a); and (B) may establish multiple tiers of requirements and trade benefits under the program. (2) Minimum requirements The minimum requirements for a person to receive trade benefits under the program under subsection (a) are the following: (A) The certification of the person as a member of the Customs–Trade Partnership Against Terrorism established under subtitle B of title II of the Security and Accountability for Every Port Act of 2006 ( 6 U.S.C. 961 et seq. ) or an equivalent certification in a successor program. (B) A history of compliance by the person with the customs and trade laws of the United States and regulations of the U.S. Customs and Border Protection Agency. (f) Interagency program benefits The Commissioner shall collaborate with the head of each Federal agency with authority to detain and release merchandise entering the United States to develop benefits to be provided to persons that receive trade benefits under the program under subsection (a) and that import merchandise into the United States that requires clearance by that agency, including— (1) the submission to, and retrieval of information from, that agency relating to the entry and release of that merchandise through the Automated Commercial Environment, or its predecessor, and the International Trade Data System; (2) the preclearance of that merchandise by that agency through the Automated Commercial Environment or its predecessor to the extent possible; and (3) any other benefits that the Commissioner and the head of that agency determine appropriate. (g) Confidential information safeguards The Commissioner, in consultation with the Customs Operations Advisory Committee established under section 205 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 , shall establish procedures to safeguard confidential data collected, stored, or shared with the U.S. Customs and Border Protection Agency or any other Federal agency pursuant to this section. (h) Customs and trade laws of the United States defined In this section, the term customs and trade laws of the United States has the meaning given that term in section 2 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 . . (b) Federal Register notice Not later than 90 days after the date of the enactment of this Act, the Commissioner shall publish a notice in the Federal Register setting forth the requirements of section 499A of the Tariff Act of 1930, as added by subsection (a), and seeking public comments on the development and implementation of the program under that section. 203. Centers of Excellence and Expertise The Commissioner shall, in consultation with private sector entities, develop and implement Agency-wide Centers of Excellence and Expertise that— (1) build the expertise of the U.S. Customs and Border Protection Agency in particular industry operations, supply chains, and compliance requirements; (2) ensure the uniform implementation across United States ports of entry of policies and regulations affecting major import sectors; (3) centralize decisionmaking of the Agency that impacts particular industries; (4) enhance trade facilitation and trade enforcement; and (5) formalize an account-based approach to the importation of merchandise into the United States by persons the Commissioner determines have a history of compliance with the customs and trade laws of the United States. 204. Mutual recognition agreements (a) Negotiating objective It shall be a negotiating objective of the United States in any negotiation for a mutual recognition agreement with a foreign country on partnership programs, such as the Customs–Trade Partnership Against Terrorism established under subtitle 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 the U.S. Customs and Border Protection Agency to enhance trade facilitation and trade enforcement. (b) Consultations Not later than 30 days before entering into a mutual recognition agreement described in subsection (a), the Secretary of Homeland Security shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to how the provisions of the agreement will advance the security, trade facilitation, and trade enforcement missions of the U.S. Customs and Border Protection Agency. 205. Customs Operations Advisory Committee (a) Establishment Not later than December 31, 2013, the Secretary of the Treasury and the Secretary of Homeland Security shall jointly establish a 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 paragraph (2); (B) the Commissioner and the Assistant Secretary for Tax Policy of the Department of the Treasury, who shall jointly co-chair meetings of the Advisory Committee; and (C) the Assistant Secretary for Policy of the Department of Homeland Security and the Director of U.S. Immigration and Customs Enforcement, who shall serve as deputy co-chairs of meetings of the Advisory Committee. (2) Appointment (A) In general Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury and the Secretary of Homeland Security shall jointly appoint 20 individuals from the private sector to the Advisory Committee, not more than 10 of whom shall be of the same political party. (B) Terms Each individual appointed to the Advisory Committee under this paragraph shall be appointed for a term of up to 3 years, and may be reappointed to subsequent terms, but may not serve more than 2 terms sequentially. (3) Qualifications The individuals appointed to the Advisory Committee shall be broadly representative of the sectors of the United States economy affected by the commercial operations of the U.S. Customs and Border Protection Agency and the investigations of the U.S. Immigration and Customs Enforcement Agency. (4) Transfer of membership The Secretary of the Treasury and the Secretary of Homeland 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 Reconciliation 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 the U.S. Customs and Border Protection Agency and the investigations of the U.S. Immigration and Customs Enforcement Agency, including advising with respect to significant changes that are proposed with respect to policies or regulations of either such Agency; (2) provide recommendations to the Secretary of the Treasury and the Secretary of Homeland Security on improvements to the commercial operations of the U.S. Customs and Border Protection Agency and the investigations of the U.S. Immigration and Customs Enforcement Agency; and (3) perform such other functions relating to the commercial operations of the U.S. Customs and Border Protection Agency and the investigations of the U.S. Immigration and Customs Enforcement Agency as prescribed by law or as the Secretary of the Treasury and the Secretary of Homeland Security jointly direct. (d) Meetings (1) In general The Advisory Committee shall meet at the call of the Secretary of the Treasury and the Secretary of Homeland Security or at the call of not less than 2/3 of the membership of the Advisory Committee. (2) Number of meetings The Advisory Committee shall, at a minimum, meet at least 4 times each calendar year. Additional meetings may be called of such special task forces or other groups made up of members of the Advisory Committee as the Advisory Committee determines appropriate. (3) Addition of agenda items Any member of the Advisory Committee may recommend additional items for the agenda of a meeting before the meeting. (4) Open meetings A meeting of the Advisory Committee shall be open to the public unless the Secretary of the Treasury and the Secretary of Homeland Security determine that the meeting will include matters the disclosure of which would seriously compromise the development of policies, priorities, or negotiating objectives or positions that could impact the commercial operations of the U.S. Customs and Border Protection Agency or the investigations of the U.S. Immigration and Customs Enforcement Agency. (e) Reports (1) Annual report Not later than December 31 of each calendar year, 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— (A) describes the activities of the Advisory Committee during the preceding fiscal year; and (B) sets forth any recommendations of the Advisory Committee regarding the commercial operations of the U.S. Customs and Border Protection Agency and the investigations of the U.S. Immigration and Customs Enforcement Agency during the preceding fiscal year. (2) Additional reports The members of the Advisory Committee appointed under subsection (b)(2) may submit directly to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives such additional reports on the commercial operations of the U.S. Customs and Border Protection Agency and the investigations of the U.S. Immigration and Customs Enforcement Agency as such members determine appropriate. (f) Applicability of Federal Advisory Committee Act The provisions of the Federal Advisory Committee Act (5 U.S.C. App.) shall apply to the Advisory Committee, except as follows: (1) Subsections (a) and (b) of section 10 of such Act (relating to open meetings and availability of information) shall not apply. (2) Section 11 of such Act (relating to the availability of transcripts of meetings) shall not apply. (3) Section 14(a)(2) of such Act (relating to termination) shall be applied by substituting 4-year period for two-year period . (g) Conforming repeal Effective January 31, 2014, section 9503(c) of the Omnibus Budget Reconciliation Act of 1987 ( 19 U.S.C. 2071 note) is repealed. (h) References On or after January 31, 2014, 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 Reconciliation Act of 1987 ( 19 U.S.C. 2071 note) shall be deemed to be a reference to the Customs Operations Advisory Committee established under subsection (a). (i) Conforming amendments (1) SAFE Port Act The Security and Accountability for Every Port Act of 2006 (6 U.S.C. 901 et seq.) is amended— (A) in section 2, by striking paragraph (2) and inserting the following: (2) Customs Operations Advisory Committee The term Customs Operations Advisory Committee means the Advisory Committee established under section 205 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 or any successor committee. ; and (B) by striking Commercial Operations Advisory Committee each place it appears and inserting Customs Operations Advisory Committee . (2) Tariff Act of 1930 Section 411(d) of the Tariff Act of 1930 ( 19 U.S.C. 1411(d) ) is amended— (A) in paragraph (1)(D), by striking Commercial Operations Advisory Committee and inserting Customs Operations Advisory Committee ; and (B) by striking paragraph (7) and inserting the following: (7) Customs Operations Advisory Committee defined In this section, the term Customs Operations Advisory Committee means the Advisory Committee established under section 205 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 or any successor committee. . (3) Effective date The amendments made by this subsection shall take effect on January 1, 2014. 206. Automated Commercial Environment computer system (a) Funding Section 13031(f)(5) of the Consolidated Omnibus Budget Reconciliation Act of 1985 ( 19 U.S.C. 58c(f)(5) ) is amended— (1) in subparagraph (A)— (A) by striking 2003, 2004, and 2005 and inserting 2014 through 2018 ; and (B) by striking $350,000,000 and inserting $325,000,000 ; and (2) by striking subparagraph (B) and inserting the following: (B) (i) From amounts that are available in the Account, there are authorized to be appropriated— (I) for each of fiscal years 2014 through 2016, $140,000,000 to complete the development of the Automated Commercial Environment computer system; (II) for each of fiscal years 2017 and 2018, $115,000,000 for the operation and maintenance of the Automated Commercial Environment computer system; and (III) for fiscal years 2014 through 2018, such amounts as are available in the Account after the obligation of amounts pursuant to the authorizations of appropriations under subclauses (I) and (II) and subparagraph (C) for other purposes related to the functions of the Department of Homeland Security. (ii) Amounts authorized to be appropriated pursuant to this subparagraph shall remain available until expended. (iii) Not more than 1 percent of the amounts authorized to be appropriated from the Account under subclauses (I) and (II) of clause (i) may be used as matching funds to assist Federal agencies (other than the Department of Homeland Security) with authority to detain and release merchandise entering the United States in developing their respective automated release programs that are integrated with the Automated Commercial Environment computer system. . (b) Report Section 311(b)(3) of the Customs Border Security Act of 2002 ( 19 U.S.C. 2075 note) is amended to read as follows: (3) Report (A) In general Not later than December 31, 2013, the Commissioner of 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 Committee on Ways and Means of the House of Representatives a report— (i) describing the plans of the U.S. Customs and Border Protection Agency, including deadlines, for incorporating all cargo release data elements into the Automated Commercial Environment computer system not later than September 30, 2015, to conform with the admissibility criteria of agencies participating in the International Trade Data System identified pursuant to subsection (d)(4)(A)(iii) of section 411 of the Tariff Act of 1930; (ii) identifying the components of the National Customs Automation Program specified in subsection (a)(2) of such section 411 that have not been implemented; (iii) identifying the priorities of the Agency for incorporating entry summary data elements, cargo manifest data elements, and cargo financial data elements into the Automated Commercial Environment computer system; (iv) describing the objectives, plans, and deadlines of the Agency for implementing the components identified under clause (ii) and the priorities identified under cause (iii) not later than September 30, 2016; and (v) describing any additional component of the National Customs Automation Program initiated by the Commissioner to complete the development, establishment, and implementation of the Automated Commercial Environment computer system. (B) Update of reports Not later than June 30, 2014, and every 180 days thereafter, the Commissioner shall submit to the Committee on Appropriations 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 addressing each of the matters referred to in subparagraph (A). . (c) Government accountability office report 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 Appropriations 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 a report— (1) evaluating the cost and effectiveness of the efforts of the U.S. Customs and Border Protection Agency to complete the development, establishment, and implementation of the Automated Commercial Environment computer system; (2) assessing the extent to which any additional functionality may be added into the Automated Commercial Environment computer system at a reasonable cost; and (3) assessing the progress of other Federal agencies in accessing and utilizing the Automated Commercial Environment computer system. 207. International Trade Data System (a) Information technology infrastructure 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; and (2) by inserting after paragraph (3) the following: (4) Information technology infrastructure (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 such agency— (i) develops and maintains the necessary information technology infrastructure to support the operation of the ITDS and to submit all data to the ITDS electronically; (ii) enters into a memorandum of understanding, or takes such other action as is necessary, to provide for the information sharing between the agency and the U.S. Customs and Border Protection Agency necessary for the operation and maintenance of the ITDS; and (iii) not later than June 30, 2014, identifies and transmits to the Commissioner of U.S. Customs and Border Protection the admissibility criteria and data elements required by the agency to authorize the release of cargo by the U.S. Customs and Border Protection Agency for incorporation into the operational functionality of the Automated Commercial Environment computer system. (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 national security. . (b) Authorization of appropriations Section 13031(f)(5) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)(5)), as amended by section 206(a), is further amended by striking subparagraph (C) and inserting the following: (C) There are authorized to be appropriated to the Secretary of the Treasury from amounts available in the Account $25,000,000 for each of fiscal years 2014 through 2018, to remain available until expended, to carry out the provisions of section 411(d)(4) of the Tariff Act of 1930. . (c) Government accountability office report Not later than June 30, 2015, the Comptroller General of the United States shall submit to the Committee on Appropriations 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 a report— (1) evaluating the development and maintenance of the information technology infrastructure necessary to support the operations of the International Trade Data System; and (2) assessing the number of memoranda of understanding and other actions taken by the U.S. Customs and Border Protection Agency and other Federal agencies to ensure the sharing of electronic import and export data. 208. Electronic submission of public comments Not later than one year after the date of the enactment of this Act, the Commissioner shall provide— (1) for the electronic submission and posting of any public comments solicited by the U.S. Customs and Border Protection Agency on the Internet website of the Agency; and (2) for the prompt posting of public comments associated with any rulemaking of the Agency on the Federal Government Internet website for Federal regulations, www.regulations.gov, or any successor website. B Trade enforcement 1 Commercial targeting 211. Commercial Targeting Division and National Targeting and Analysis Groups (a) Establishment of commercial targeting division (1) In general The Secretary of Homeland Security shall establish and maintain within the Office of Trade of the U.S. Customs and Border Protection Agency, established under section 4 of the Act of March 3, 1927, as added by section 102, a Commercial Targeting Division. (2) Composition The Commercial Targeting Division shall be composed of— (A) headquarters personnel led by an Executive Director, who shall report to the Assistant Commissioner for Trade; and (B) individual National Targeting and Analysis Groups, each led by a Director who shall report to the Executive Director of the Commercial Targeting Division. (3) Duties The Commercial Targeting Division shall be dedicated— (A) to the development and conduct of commercial targeting with respect to cargo destined for the United States in accordance with subsection (c); and (B) to issuing Trade Alerts described in subsection (d). (b) National targeting and analysis groups (1) In general The Commissioner shall determine the priorities of the National Targeting and Analysis Groups referred to in subsection (a)(2)(B), to include the enforcement, with respect to the importation of merchandise into the United States, of— (A) intellectual property rights; (B) health and safety laws and regulations; (C) agriculture-related laws and regulations; (D) textile- and apparel-related laws and regulations; (E) general revenue laws and regulations; and (F) non-general revenue laws and regulations, including with respect to antidumping and countervailing duties. (c) Commercial targeting In carrying out its duties with respect to commercial targeting, the Commercial Targeting Division shall— (1) establish targeting methodologies and standards for— (A) assessing the risk that cargo destined for the United States may violate the customs and trade laws of the United States; and (B) issuing, as appropriate, Trade Alerts described in subsection (d); (2) to the extent practicable and otherwise authorized by law, use, to administer the methodologies and standards established under paragraph (1)— (A) publicly available information; (B) information available from the Automated Commercial System, the Automated Commercial Environment computer system, the Automated Targeting System, the Automated Export System, the International Trade Data System, the TECS (formerly known as the Treasury Enforcement Communications System ), and the case management system of the U.S. Immigration and Customs Enforcement Agency, and any successors to those systems; and (C) information made available to the Commercial Targeting Division, including information provided by private sector entities; and (3) coordinate targeting efforts with other Federal agencies with authority to detain and release merchandise entering the United States. (d) Trade alerts (1) Issuance Based upon the application of the targeting methodologies and standards established under subsection (c), the Executive Director of the Commercial Targeting Division and the Directors of the National Targeting and Analysis Groups may issue Trade Alerts to port directors providing guidance for further inspection, physical examination, or testing, of specific merchandise if certain risk-assessment thresholds are met to improve compliance with the customs and trade laws of the United States and regulations administered by the U.S. Customs and Border Protection Agency. (2) Determinations not to implement Trade Alerts A port director may determine not to follow a Trade Alert issued under paragraph (1) that requires further inspection, physical examination, or testing if the port director— (A) finds that such a determination is justified by security interests; and (B) notifies the Trade Facilitation and Trade Enforcement Division of the Office of Field Operations of the determination not to follow the Trade Alert and the reasons for the determination not later than 48 hours after making the determination. (3) Summary of determinations not to implement The Trade Facilitation and Trade Enforcement Division shall— (A) compile an annual summary of all determinations by port directors under paragraph (2) and the reasons for those determinations; (B) conduct an evaluation of the utilization of Trade Alerts issued under paragraph (1); and (C) submit the summary compiled under subparagraph (A) and the evaluation conducted under subparagraph (B) to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not later than December 31 of each year. (4) Inspection defined In this subsection, the term inspection means the comprehensive evaluation process used by the U.S. Customs and Border Protection Agency, other than physical examination or testing, to permit the entry of merchandise into the United States, or the clearance of merchandise for transportation in bond through the United States, for purposes of— (A) assessing duties; (B) identifying restricted or prohibited items; and (C) ensuring compliance with the customs and trade laws of the United States and regulations administered by the Agency. (e) Use of trade data for commercial enforcement 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 for ensuring aviation, maritime, and surface transportation safety and security, and may be used for commercial enforcement purposes. A person that provides information pursuant to the regulations that is used to detect a violation of any statute or regulation relating to commercial enforcement shall be subject to commercial penalties pursuant to that statute or regulation only if the person is found to have committed fraud in providing the information. . 212. Annual illegal drug control law enforcement strategy (a) In general Section 123 of the Customs and Trade Act of 1990 ( 19 U.S.C. 2083 ) is amended to read as follows: 123. Annual illegal drug control law enforcement strategy (a) Reports on violation estimates Not later than one year after the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 , and annually thereafter, the Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement shall jointly develop and submit to the chairperson and ranking member of the Committee on Finance of the Senate and of the Committee on Ways and Means of the House of Representatives (in this section referred to as the Committees ) in accordance with subsection (d) a report that contains an estimate of— (1) the number and extent of violations of the illegal drug control laws specified in subsection (b) that are likely to occur during the year following the report; and (2) the relative incidence of the violations described in paragraph (1) among the various United States ports of entry and customs regions within the customs territory of the United States during the year preceding the report. (b) Illegal drug control laws specified The Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement, after consultation with the Committees— (1) shall, not later than 180 days after the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 , prepare a list of those provisions of the illegal drug control laws of the United States with respect to which the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency have enforcement responsibility and to which the reports required by subsection (a) will apply; and (2) may periodically update the list developed under paragraph (1), as warranted. (c) Enforcement strategy Not later than 90 days after submitting a report under subsection (a), the Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement shall jointly— (1) develop or update a strategy for enforcing the illegal drug control laws specified in subsection (b) in a nationally uniform manner and addressing the violations estimated in the report during the period covered by the report; and (2) submit to the chairperson and ranking member of each of the Committees a confidential report setting forth the details of the strategy described in paragraph (1). (d) Confidentiality The contents of any report submitted to the chairperson and ranking member of each of the Committees under subsection (a) or (c) are confidential and the disclosure of the contents is restricted to— (1) officers and employees of the United States designated by the Commissioner of U.S. Customs and Border Protection or the Director of U.S. Customs and Immigration Enforcement to have access to the contents of the report; (2) the chairperson and ranking member of each of the Committees; and (3) such Members of Congress and staff of such Members as the chairperson or ranking member of either of the Committees may authorize to have access to the contents of the report. . (b) Conforming amendment The table of contents for the Customs and Trade Act of 1990 is amended by striking the item relating to section 123 and inserting the following: Sec. 123. Annual illegal drug control law enforcement strategy. . 213. Report on oversight of revenue protection and enforcement measures by the inspector general Not later than June 30, 2015, the Inspector General of the Department of the Treasury shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report assessing the following: (1) The effectiveness of the measures taken by the U.S. Customs and Border Protection Agency with respect to revenue protection, including— (A) the collection of countervailing and antidumping duties; (B) the assessment and collection of commercial fines and penalties; and (C) the adequacy of the policies of the Agency with respect to monitoring and tracking of merchandise transported in bond and collecting duties, as appropriate. (2) The effectiveness of actions taken by the Agency to measure accountability and performance with respect to revenue protection. (3) The number of entries resulting in the underpayment of duties and a summary of the actions taken to address the underpayment of duties. (4) The effectiveness of training with respect to the collection of duties provided for personnel of the Agency. 214. Report on security and revenue measures with respect to merchandise transported in bond (a) In general Not later than December 31 of 2014, 2015, and 2016, the Secretary of Homeland Security and the Secretary of the Treasury shall jointly submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on efforts undertaken by the U.S. Customs and Border Protection Agency to ensure the secure transportation of merchandise in bond through the United States and the collection of revenue owed upon the entry of such merchandise into the United States for consumption. (b) Contents The report required by subsection (a) shall include information, for the 2 fiscal years preceding the submission of the report, on— (1) the overall number of entries of merchandise for transportation in bond through the United States; (2) the ports at which merchandise arrives in the United States for transportation in bond and at which records of the arrival of such merchandise are generated; (3) the average time taken to reconcile such records with the records at the final destination of the merchandise in the United States to demonstrate that the merchandise reaches its final destination or is reexported; (4) the average time taken to transport merchandise in bond from the port at which the merchandise arrives in the United States to the final destination of the merchandise in the United States; (5) the total amount of duties, taxes, and fees owed with respect to shipments of merchandise transported in bond and the total amount of such duties, taxes, and fees paid; (6) the total number of notifications by carriers of merchandise being transported in bond that the destination of the merchandise has changed while in transit in the United States; and (7) the number of entries that remain unreconciled. 215. Importer of record program (a) Establishment Not later than 180 days after the date of the enactment of this Act, the Secretary of Homeland Security shall establish an importer of record program to assign and maintain importer of record numbers. (b) Requirements The Secretary of Homeland Security shall ensure that, as part of the importer of record program, the U.S. Customs and Border Protection Agency— (1) develops criteria that importers must meet in order to obtain an importer of record number; (2) provides a process by which importers are assigned importer of record numbers; (3) maintains a centralized database of importer of record numbers, including a history of importer of record numbers associated with each importer; (4) evaluates the accuracy of the database on a regular basis; and (5) takes measures to ensure that duplicate importer of record numbers are not issued to the same importer. (c) Report Not later than one year after the date of the enactment of this Act, the Secretary of Homeland Security 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 importer of record program established under subsection (a). (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 corresponding similar regulation). 2 Import health and safety 221. Interagency Import Safety Working Group (a) Establishment There is established an interagency Import Safety Working Group. (b) Membership The interagency Import Safety Working Group shall consist of the following officials or their designees: (1) The Secretary of Homeland Security, who shall serve as the Chair. (2) The Secretary of Health and Human Services, who shall serve as the Vice Chair. (3) The Secretary of the Treasury. (4) The Secretary of Commerce. (5) The Secretary of Agriculture. (6) The United States Trade Representative. (7) The Director of the Office of Management and Budget. (8) The Commissioner of Food and Drugs. (9) The Commissioner of U.S. Customs and Border Protection. (10) The Chairman of the Consumer Product Safety Commission. (11) The Director of U.S. Immigration and Customs Enforcement. (12) The head of any other Federal agency designated by the President to participate in the interagency Import Safety Working Group, as appropriate. (c) Duties The duties of the interagency Import Safety Working Group shall include— (1) consulting on the development of the joint import safety rapid response plan required by section 222; (2) periodically evaluating the adequacy of the plans, practices, and resources of the Federal Government dedicated to ensuring the safety of merchandise imported in the United States and the expeditious entry of such merchandise, including— (A) minimizing the duplication of efforts among agencies the heads of which are members of the interagency Import Safety Working Group and ensuring the compatibility of the policies and regulations of those agencies; and (B) recommending additional administrative actions, as appropriate, designed to ensure the safety of merchandise imported into the United States and the expeditious entry of such merchandise and considering the impact of those actions on private sector entities; (3) reviewing the engagement and cooperation of foreign governments and foreign manufacturers in facilitating the inspection and certification, as appropriate, of such merchandise to be imported into the United States and the facilities producing such merchandise to ensure the safety of the merchandise and the expeditious entry of the merchandise into the United States; and (4) identifying best practices, in consultation with private sector entities as appropriate, to assist United States importers in taking all appropriate steps to ensure the safety of merchandise imported into the United States, including with respect to— (A) the inspection of manufacturing facilities in foreign countries; (B) the inspection of merchandise destined for the United States before exportation from a foreign country or before distribution in the United States; and (C) the protection of the international supply chain (as defined in section 2 of the Security and Accountability For Every Port Act of 2006 ( 6 U.S.C. 901 )); (5) identifying best practices to assist Federal, State, and local governments and agencies, and port authorities, to improve communication and coordination among such agencies and authorities with respect to ensuring the safety of merchandise imported into the United States and the expeditious entry of such merchandise; and (6) otherwise identifying appropriate steps to increase the accountability of United States importers and the engagement of foreign government agencies with respect to ensuring the safety of merchandise imported into the United States and the expeditious entry of such merchandise. 222. Joint import safety rapid response plan (a) In general Not later than December 31, 2014, the Secretary of Homeland Security, in consultation with the interagency Import Safety Working Group, shall develop a plan (to be known as the joint import safety rapid response plan ) that sets forth protocols and defines practices for the U.S. Customs and Border Protection Agency to use— (1) in taking action in response to, and coordinating Federal responses to, an incident in which cargo destined for or merchandise entering the United States has been identified as posing a threat to the health or safety of consumers in the United States; and (2) in recovering from or mitigating the effects of actions and responses to an incident described in paragraph (1). (b) Contents The joint import safety rapid response plan shall address— (1) the statutory and regulatory authorities and responsibilities of the U.S. Customs and Border Protection Agency and other Federal agencies in responding to an incident described in subsection (a)(1); (2) the protocols and practices to be used by the Agency when taking action in response to, and coordinating Federal responses to, such an incident; (3) the measures to be taken by the Agency and other Federal agencies in recovering from or mitigating the effects of actions taken in response to such an incident after the incident to ensure the resumption of the entry of merchandise into the United States; and (4) exercises that the Agency may conduct in conjunction with Federal, State, and local agencies, and private sector entities, to simulate responses to such an incident. (c) Updates of plan The Secretary of Homeland Security shall review and update the joint import safety rapid response plan, as appropriate, after conducting exercises under subsection (d). (d) Import health and safety exercises (1) In general The Secretary of Homeland Security and the Commissioner shall periodically engage in the exercises referred to in subsection (b)(4), in conjunction with Federal, State, and local agencies and private sector entities, as appropriate, to test and evaluate the protocols and practices identified in the joint import safety rapid response plan at United States ports of entry. (2) Requirements for exercises In conducting exercises under paragraph (1), the Secretary and the Commissioner shall— (A) make allowance for the resources, needs, and constraints of United States ports of entry of different sizes in representative geographic locations across the United States; (B) base evaluations on current risk assessments of merchandise entering the United States at representative United States ports of entry located across the United States; (C) ensure that such exercises are conducted in a manner consistent with the National Incident Management System, the National Response Plan, the National Infrastructure Protection Plan, the National Preparedness Guidelines, the Maritime Transportation System Security Plan, and other such national initiatives of the Department of Homeland Security, as appropriate; and (D) develop metrics with respect to the resumption of the entry of merchandise into the United States after an incident described in subsection (a)(1). (3) Requirements for testing and evaluation The Secretary and the Commissioner shall ensure that the testing and evaluation carried out in conducting exercises under paragraph (1)— (A) are performed using clear and objective performance measures; and (B) result in the identification of specific recommendations or best practices for responding to an incident described in subsection (a)(1). (4) Dissemination of recommendations and best practices The Secretary and the Commissioner shall— (A) share the recommendations or best practices identified under paragraph (3)(B) among the members of the interagency Import Safety Working Group and with, as appropriate— (i) State, local, and tribal governments; (ii) foreign governments; and (iii) private sector entities; and (B) use such recommendations and best practices to update the joint import safety rapid response plan. 223. Training The Commissioner shall ensure that personnel of the U.S. Customs and Border Protection Agency assigned to United States ports of entry are trained to effectively administer the provisions of this chapter and to otherwise assist in ensuring the safety of merchandise imported into the United States and the expeditious entry of such merchandise. 3 Import-Related protection of intellectual property rights A National Intellectual Property Rights Coordination Center 231. National Intellectual Property Rights Coordination Center (a) Establishment The Secretary of Homeland Security shall— (1) establish within the U.S. Immigration and Customs Enforcement Agency a National Intellectual Property Rights Coordination Center; and (2) appoint an Assistant Director to head the National Intellectual Property Rights Coordination Center. (b) Duties The Assistant Director of the National Intellectual Property Rights Coordination Center shall— (1) coordinate the investigation of sources of merchandise that infringes intellectual property rights to identify organizations that produce, smuggle, or distribute such merchandise; (2) coordinate training with other domestic and international law enforcement agencies on investigative best practices— (A) to develop and expand the capability of such agencies to enforce intellectual property rights; and (B) to develop metrics to assess whether the training improved enforcement of intellectual property rights; (3) coordinate, with the U.S. Customs and Border Protection Agency, activities conducted by the United States to prevent the importation or exportation of merchandise that infringes intellectual property rights; (4) support the international interdiction of merchandise destined for the United States that infringes intellectual property rights; (5) collect and integrate information regarding infringements of intellectual property rights from domestic and international law enforcement agencies and other non-Federal sources; (6) develop a single platform or portal to receive information regarding infringements of intellectual property rights from such agencies and other sources and a database to organize and search that information; (7) disseminate information regarding infringements of intellectual property rights to other Federal agencies, as appropriate; (8) develop and implement risk-based alert systems to be shared with the U.S. Customs and Border Protection Agency to improve the targeting of persons that repeatedly infringe intellectual property rights; (9) coordinate with the United States attorneys' offices to develop expertise in, and assist with the investigation and prosecution of, crimes relating to the infringement of intellectual property rights; and (10) carry out such other duties as the Secretary of Homeland Security may assign. (c) Coordination with other agencies In carrying out the duties described in subsection (b), the Assistant Director of the National Intellectual Property Rights Coordination Center shall coordinate with— (1) the U.S. Customs and Border Protection Agency; (2) the Food and Drug Administration; (3) the Department of Justice; (4) the Department of Commerce, including the United States Patent and Trademark Office; (5) the United States Postal Inspection Service; (6) the Office of the United States Trade Representative; (7) any Federal, State, local, or international law enforcement agencies the Director of U.S. Immigration and Customs Enforcement considers appropriate; and (8) any other entities the Director considers appropriate. (d) Private sector outreach (1) In general The Assistant Director of the National Intellectual Property Rights Coordination Center shall work with the U.S. Customs and Border Protection Agency and other Federal agencies to conduct outreach to private sector entities to determine trends in and methods of infringing intellectual property rights. (2) Information sharing The Assistant Director shall share information and best practices with respect to the enforcement of intellectual property rights with private sector entities, as appropriate, to coordinate public and private sector efforts to combat the infringement of intellectual property rights. B Amendments to the Tariff Act of 1930 241. Provision to rights owners of information about and samples of merchandise suspected of infringing trademarks or copyrights The Tariff Act of 1930 is amended by inserting after section 526 ( 19 U.S.C. 1526 ) the following: 526A. Provision to rights owners of information about and samples of merchandise suspected of infringing trademarks or copyrights (a) In general Subject to subsections (c) and (d), if the Commissioner of U.S. Customs and Border Protection suspects that merchandise is being imported into the United States in violation of section 526 or section 602, 1201(a)(1), or 1201(b)(1) of title 17, United States Code, and determines that the examination or testing of the merchandise by a person described in subsection (b) would assist the Commissioner in determining if the merchandise is being imported in violation of that section, the Commissioner, to permit the person to conduct the examination and testing— (1) shall provide to the person information that appears on the merchandise and its packaging and labels, including unredacted images of the merchandise and its packaging and labels; and (2) may, subject to any applicable bonding requirements, provide to the person unredacted samples of the merchandise. (b) Person described A person described in this subsection is— (1) in the case of merchandise suspected of being imported in violation of section 526, the owner of the trademark suspected of being copied or simulated by the merchandise; (2) in the case of merchandise suspected of being imported in violation of section 602 of title 17, United States Code, the owner of the copyright suspected of being infringed by the merchandise; (3) in the case of merchandise suspected of being primarily designed or produced for the purpose of circumventing a technological measure that effectively controls access to a work protected under that title, and being imported in violation of section 1201(a)(2) of that title, the owner of a copyright in the work; and (4) in the case of merchandise suspected of being primarily designed or produced for the purpose of circumventing protection afforded by a technological measure that effectively protects a right of an owner of a copyright in a work or a portion of a work, and being imported in violation of section 1201(b)(1) of that title, the owner of the copyright. (c) Limitation Subsection (a) applies only with respect to merchandise suspected of infringing a trademark or copyright that is recorded with the U.S. Customs and Border Protection Agency. (d) Exception The Commissioner of U.S. Customs and Border Protection may not provide under subsection (a) information, photographs, or samples to a person described in subsection (b) if providing such information, photographs, or samples would compromise an ongoing law enforcement investigation or national security. . 242. Enforcement by the U.S. Customs and Border Protection Agency of works for which a copyright registration is pending Not later than 180 days after the date of the enactment of this Act, the Secretary of Homeland Security shall establish a process pursuant to which the Commissioner shall enforce a copyright for which the owner has submitted an application for registration under title 17, United States Code, with the Copyright Office of the Library of Congress to the same extent and in the same manner as if the copyright were registered with the Copyright Office, including by sharing information, images, and samples of merchandise suspected of infringing the copyright under section 526A of the Tariff Act of 1930, as added by section 241. 243. Seizure of circumvention devices (a) In general Section 596(c)(2) of the Tariff Act of 1930 ( 19 U.S.C. 1595a(c)(2) ) is amended— (1) in subparagraph (E), by striking or ; (2) in subparagraph (F), by striking the period and inserting ; or ; and (3) by adding at the end the following: (G) the U.S. Customs and Border Protection Agency determines it is a technology, product, service, device, component, or part thereof the importation of which is prohibited under subsection (a)(2) or (b)(1) of section 1201 of title 17, United States Code. . (b) Publication (1) In general Except as provided in paragraph (2), not later than 30 days after seizing merchandise pursuant to subparagraph (G) of section 596(c)(2) of the Tariff Act of 1930, as added by subsection (a), the Commissioner shall publish on the Internet website of the U.S. Customs and Border Protection Agency information regarding the merchandise seized to permit any person to identify the merchandise and determine whether the merchandise is— (A) a technology, product, service, device, component, or part thereof described in section 1201(a)(2) of title 17, United States Code, that— (i) is primarily designed or produced for the purpose of circumventing a technological measure that effectively controls access to a work for which the person has a copyright that is registered under title 17, United States Code, or that is otherwise recorded with the Agency; (ii) has only limited commercially significant purpose or use other than to circumvent such a technological measure; or (iii) is marketed for use in circumventing such a technological measure; or (B) a technology, product, service, device, component, or part thereof described in section 1201(b)(1) of title 17, United States Code, that— (i) is primarily designed or produced for the purpose of circumventing protection afforded by a technological measure that effectively protects a right of the person in a work or a portion of a work that is registered under title 17, United States Code, or that is otherwise recorded with the Agency; (ii) has only limited commercially significant purpose or use other than to circumvent protection afforded by such a technological measure; or (iii) is marketed for use in circumventing protection afforded such a technological measure. (2) Exception The Commissioner may not publish information under paragraph (1) if publishing that information would compromise an ongoing law enforcement investigation or national security. (c) Application Not later than 30 days after publishing the information required under subsection (b) with respect to seized merchandise, any person that determines that the seized merchandise is merchandise that infringes a right of the person as described in subsection (b) (or an agent of such a person) may submit to the U.S. Customs and Border Protection Agency an application that— (1) identifies the person as a person that holds such a right (or an agent of such a person); and (2) requests the information described in subsection (d). (d) Disclosure Subject to subsection (f), the Commissioner shall disclose to a person that submitted an application described in subsection (c) with respect to seized merchandise the following information: (1) The date of importation of the seized merchandise. (2) The United States port of entry at which the merchandise was seized. (3) A description of the merchandise. (4) The quantity of merchandise seized. (5) The country of origin of the merchandise. (6) The name and address of the foreign manufacturer of the merchandise. (7) The name and address of the exporter of the merchandise. (8) The name and address of the importer of the merchandise. (e) Expedited disclosure Subject to subsection (f), the Commissioner may, on an expedited basis, disclose information pursuant to subsection (d) with respect to merchandise seized pursuant to subparagraph (G) of section 526(c)(2) of the Tariff Act of 1930, as added by subsection (a), and with respect to which information is published pursuant to subsection (b), to a person that has previously submitted an application under subsection (c) with respect to such merchandise. (f) Limitation on disclosure The Commissioner may not disclose information under subsection (d) or (e) with respect to merchandise seized pursuant to subparagraph (G) of section 526(c)(2) of the Tariff Act of 1930, as added by subsection (a), until the Commissioner has made a final determination with respect to whether the merchandise is a technology, product, service, device, component, or part thereof the importation of which is prohibited under subsection (a)(2) or (b)(1) of section 1201 of title 17, United States Code. C Other matters 251. Definition of intellectual property rights In this subchapter, the term intellectual property rights refers to copyrights, trademarks, and other forms of intellectual property rights that are enforced by the U.S. Customs and Border Protection Agency or the U.S. Immigration and Customs Enforcement Agency. 252. Joint strategic plan for the enforcement of intellectual property rights The Commissioner and the Director of U.S. Immigration and Customs Enforcement shall include in the joint strategic plan on trade facilitation and trade enforcement required by section 123A of the Customs and Trade Act of 1990, as amended by section 131— (1) a description of the efforts of the Department of Homeland Security to enforce intellectual property rights; (2) a list of the 10 United States ports of entry at which the U.S. Customs and Border Protection Agency has seized the most merchandise, both by volume and by value, that infringes intellectual property rights during the most recent 2-year period for which data are available; and (3) a recommendation for the optimal allocation of personnel, resources, and technology to ensure that the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency are adequately enforcing intellectual property rights. 253. Personnel dedicated to the enforcement of intellectual property rights (a) Personnel of the U.S. Customs and Border Protection Agency The Commissioner and the Director of U.S. Immigration and Customs Enforcement shall ensure that sufficient personnel are assigned throughout the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency, respectively, who have responsibility for preventing the importation of merchandise that infringes intellectual property rights into the United States. (b) Staffing of National Intellectual Property Rights Coordination Center The Commissioner shall— (1) assign not fewer than 3 full-time employees of the U.S. Customs and Border Protection Agency to the National Intellectual Property Rights Coordination Center established under section 231; and (2) ensure that sufficient personnel are assigned to United States ports of entry to carry out the directives of the Center. 254. Training with respect to the enforcement of intellectual property rights (a) Training The Commissioner shall ensure that officers of the U.S. Customs and Border Protection Agency are trained to effectively detect and identify merchandise destined for the United States that infringes intellectual property rights, including through the use of technologies identified under subsection (c). (b) Consultation with private sector The Commissioner shall consult with private sector entities to better identify opportunities for collaboration between the U.S. Customs and Border Protection Agency and such entities with respect to training for officers of the Agency to enforce intellectual property rights. (c) Identification of new technologies In consultation with private sector entities, the Commissioner shall identify— (1) technologies with the cost-effective capability to detect and identify merchandise at United States ports of entry that infringes intellectual property rights; and (2) cost-effective programs for training officers of the U.S. Customs and Border Protection Agency to use such technologies. (d) Donations of technology Not later than 180 days after the date of the enactment of this Act, the Commissioner shall promulgate regulations to enable the U.S. Customs and Border Protection Agency to receive donations of hardware, software, equipment, and similar technologies, and to accept training and other support services from private sector entities, for the purpose of enforcing intellectual property rights. 255. Information for travelers regarding violations of intellectual property rights (a) In general The Secretary of Homeland Security shall develop and carry out an educational campaign to inform travelers entering or leaving the United States about the legal, economic, and public health and safety implications of acquiring merchandise that infringes intellectual property rights outside the United States and importing such merchandise into the United States in violation of United States law. (b) Declaration forms The Commissioner shall ensure that all versions of Declaration Form 6059B of the U.S. Customs and Border Protection Agency, or a successor form, printed on or after the date that is 30 days after the date of the enactment of this Act include a written warning to inform travelers arriving in the United States that importation of merchandise into the United States that infringes intellectual property rights may subject travelers to civil or criminal penalties and may pose serious risks to safety or health. 256. International cooperation and information sharing (a) Cooperation The Secretary of Homeland Security shall coordinate with the competent law enforcement and customs authorities of foreign countries, including by sharing information relevant to enforcement actions, to enhance the efforts of United States and such authorities to enforce intellectual property rights. (b) Technical Assistance The Secretary of Homeland Security shall provide technical assistance to competent law enforcement and customs authorities of foreign countries to enhance the ability of such authorities to enforce intellectual property rights. (c) Interagency collaboration The Commissioner and the Director of U.S. Immigration and Customs Enforcement shall lead interagency efforts to collaborate with law enforcement and customs authorities of foreign countries to enforce intellectual property rights. 257. Sense of Congress regarding recordation process It is the sense of Congress that the Commissioner should work with the Under Secretary for Intellectual Property and Director of the United States Patent and Trademark Office of the Department of Commerce and the Register of Copyrights of the Library of Congress to consider a system under which— (1) a trademark may be recorded with the U.S. Customs and Border Protection Agency simultaneously with the issuance of trademark registration by the United States Patent and Trademark Office; and (2) a copyright may be recorded with the U.S. Customs and Border Protection Agency simultaneously with the registration of a copyright by the Register of Copyrights. 258. Report on intellectual property rights enforcement Not later than June 30, 2014, and annually thereafter, the Commissioner and the Director of U.S. Immigration and Customs Enforcement shall jointly submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report that contains the following: (1) With respect to the enforcement of intellectual property rights, the following: (A) The number of referrals from the U.S. Customs and Border Protection Agency to the U.S. Immigration and Customs Enforcement Agency relating to infringements of intellectual property rights during the preceding year. (B) The number of investigations relating to the infringement of intellectual property rights referred by the U.S. Immigration and Customs Enforcement Agency to a United States Attorney's office for prosecution and the United States Attorneys' offices to which those investigations were referred. (C) The number of such investigations accepted by each such United States Attorney's office and the status or outcome of each such investigation. (D) The number of such investigations that resulted in the imposition of civil or criminal penalties. (E) A description of the efforts of the U.S. Custom and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency to improve the success rates of investigations and prosecutions relating to the infringement of intellectual property rights. (2) An estimate of the average time required by the Office of Trade of the U.S. Customs and Border Protection Agency to respond to a request from port personnel for advice with respect to whether merchandise detained by the Agency infringed intellectual property rights, distinguished by types of intellectual property rights infringed. (3) A summary of the outreach efforts of the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency with respect to— (A) the interdiction and investigation of, and the sharing of information between those Agencies and other Federal agencies to prevent the infringement of intellectual property rights; (B) collaboration with private sector entities— (i) to identify trends in the infringement of, and technologies that infringe, intellectual property rights; (ii) to identify opportunities for enhanced training of officers of those Agencies; and (iii) to develop best practices to enforce intellectual property rights; and (C) coordination with foreign governments and international organizations with respect to the enforcement of intellectual property rights. (4) A summary of the efforts of the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency to address the challenges with respect to the enforcement of intellectual property rights presented by Internet commerce and the transit of small packages and an identification of the volume, value, and type of merchandise seized for infringing intellectual property rights as a result of such efforts. (5) A summary of training relating to the enforcement of intellectual property rights conducted under section 254 and expenditures for such training. 4 Coordination of trade enforcement priorities 261. Establishment of priority trade enforcement coordination centers The Secretary of Homeland Security may establish in the U.S. Immigration and Customs Enforcement Agency additional enforcement coordination centers— (1) to address the issues relating to trade enforcement designated as priority trade issues in the joint strategic plan on trade facilitation and trade enforcement required by section 123A of the Customs and Trade Act of 1990, as added by section 131; and (2) that are modeled on the structure of the National Intellectual Property Rights Coordination Center established under section 231. III Evasion of antidumping and countervailing duty orders 301. Short title This title may be cited as the Enforcing Orders and Reducing Customs Evasion Act of 2013 . 302. Procedures for investigating claims of evasion of antidumping and countervailing duty orders (a) In general The Tariff Act of 1930 is amended by inserting after section 516A ( 19 U.S.C. 1516a ) the following: 517. Procedures for investigating claims of evasion of antidumping and countervailing duty orders (a) Definitions In this section: (1) Administering authority The term administering authority has the meaning given that term in section 771(1). (2) Commissioner The term Commissioner means the Commissioner of U.S. Customs and Border Protection, acting pursuant to the delegation by the Secretary of the Treasury of the authority of the Secretary with respect to customs revenue functions (as defined in section 415 of the Homeland Security Act of 2002 (6 U.S.C. 215)). (3) Covered merchandise The term covered merchandise means merchandise that is subject to— (A) an antidumping duty order issued under section 736; (B) a finding issued under the Antidumping Act, 1921; or (C) a countervailing duty order issued under section 706. (4) Enter; entry The terms enter and entry refer to the entry, or withdrawal from warehouse for consumption, of merchandise in the customs territory of the United States. (5) Evasion (A) In general Except as provided in subparagraph (B), the term evasion refers to entering covered merchandise into the customs territory of the United States by means of any document or electronically transmitted data or information, written or oral statement, or act that is material and false, or any omission that is material, and that results in any cash deposit or other security or any amount of applicable antidumping or countervailing duties being reduced or not being applied with respect to the merchandise. (B) Exception for clerical error (i) In general Except as provided in clause (ii), the term evasion does not include entering covered merchandise into the customs territory of the United States by means of— (I) a document or electronically transmitted data or information, written or oral statement, or act that is false as a result of a clerical error; or (II) an omission that results from a clerical error. (ii) Patterns of negligent conduct If the Commissioner determines that a person has entered covered merchandise into the customs territory of the United States by means of a clerical error referred to in subclause (I) or (II) of clause (i) and that the clerical error is part of a pattern of negligent conduct on the part of that person, the Commissioner may determine, notwithstanding clause (i), that the person has entered such covered merchandise into the customs territory of the United States through evasion. (iii) Electronic repetition of errors For purposes of clause (ii), the mere nonintentional repetition by an electronic system of an initial clerical error does not constitute a pattern of negligent conduct. (iv) Rule of construction A determination by the Commissioner that a person has entered covered merchandise into the customs territory of the United States by means of a clerical error referred to in subclause (I) or (II) of clause (i) rather than through evasion shall not be construed to excuse that person from the payment of any duties applicable to the merchandise. (b) Investigations (1) In general Not later than 10 business days after receiving an allegation described in paragraph (2) or a referral described in paragraph (3), the Commissioner shall initiate an investigation if the Commissioner determines that the information provided in the allegation or the referral, as the case may be, reasonably suggests that covered merchandise has been entered into the customs territory of the United States through evasion. (2) Allegation described An allegation described in this paragraph is an allegation that a person has entered covered merchandise into the customs territory of the United States through evasion that is— (A) filed with the Commissioner by a person that is a producer in the United States of merchandise— (i) that is like, or in the absence of like, most similar in characteristics and uses with, such covered merchandise; or (ii) into which merchandise described in clause (i) is incorporated; and (B) accompanied by information reasonably available to the person that filed the allegation. (3) Referral described A referral described in this paragraph is information submitted to the Commissioner by any other Federal agency, including the Department of Commerce or the United States International Trade Commission, that reasonably suggests that a person has entered covered merchandise into the customs territory of the United States through evasion. (4) Consolidation of allegations and referrals (A) In general The Commissioner may consolidate multiple allegations described in paragraph (2) and referrals described in paragraph (3) into a single investigation if the Commissioner determines it is appropriate to do so. (B) Effect on timing requirements If the Commissioner consolidates multiple allegations or referrals into a single investigation under subparagraph (A), the date on which the Commissioner receives the first such allegation or referral shall be used for purposes of the requirement under paragraph (1) with respect to the timing of the initiation of the investigation. (5) Information-sharing to protect health and safety If, during the course of conducting an investigation under paragraph (1) with respect to covered merchandise, the Commissioner has reason to suspect that such covered merchandise may pose a health or safety risk to consumers, the Commissioner shall provide, as appropriate, information to the appropriate Federal agencies for purposes of mitigating the risk. (c) Determinations (1) In general Not later than 270 calendar days after the date on which the Commissioner initiates an investigation under subsection (b) with respect to covered merchandise, the Commissioner shall make a determination, based on substantial evidence, with respect to whether such covered merchandise was entered into the customs territory of the United States through evasion. (2) Authority to collect and verify additional information In making a determination under paragraph (1) with respect to covered merchandise, the Commissioner may collect such additional information as is necessary to make the determination through such methods as the Commissioner considers appropriate, including by— (A) issuing a questionnaire with respect to such covered merchandise to— (i) a person that filed an allegation under paragraph (2) of subsection (b) that resulted in the initiation of an investigation under paragraph (1) of that subsection with respect to such covered merchandise; (ii) a person alleged to have entered such covered merchandise into the customs territory of the United States through evasion; (iii) a person that is a foreign producer or exporter of such covered merchandise; or (iv) the government of a country from which such covered merchandise was exported; and (B) conducting verifications, including on-site verifications, of any relevant information. (3) Adverse inference If the Commissioner finds that a person described in clause (i), (ii), or (iii) of paragraph (2)(A) has failed to cooperate by not acting to the best of the person’s ability to comply with a request for information, the Commissioner may, in making a determination under paragraph (1), use an inference that is adverse to the interests of that person in selecting from among the facts otherwise available to make the determination. (4) Notification Not later than 5 business days after making a determination under paragraph (1) with respect to covered merchandise, the Commissioner— (A) shall provide to each person that filed an allegation under paragraph (2) of subsection (b) that resulted in the initiation of an investigation under paragraph (1) of that subsection with respect to such covered merchandise a notification of the determination and may, in addition, include an explanation of the basis for the determination; and (B) may provide to importers, in such manner as the Commissioner determines appropriate, information discovered in the investigation that the Commissioner determines will help educate importers with respect to importing merchandise into the customs territory of the United States in accordance with all applicable laws and regulations. (d) Effect of determinations (1) In general If the Commissioner makes a determination under subsection (c) that covered merchandise was entered into the customs territory of the United States through evasion, the Commissioner shall— (A) (i) suspend the liquidation of unliquidated entries of such covered merchandise that are subject to the determination and that enter on or after the date of the initiation of the investigation under subsection (b) with respect to such covered merchandise and on or before the date of the determination; or (ii) if the Commissioner has already suspended the liquidation of such entries pursuant to subsection (e)(1), continue to suspend the liquidation of such entries; (B) pursuant to the Commissioner’s authority under section 504(b)— (i) extend the period for liquidating unliquidated entries of such covered merchandise that are subject to the determination and that entered before the date of the initiation of the investigation; or (ii) if the Commissioner has already extended the period for liquidating such entries pursuant to subsection (e)(1), continue to extend the period for liquidating such entries; (C) notify the administering authority of the determination and request that the administering authority— (i) identify the applicable antidumping or countervailing duty assessment rates for entries described in subparagraphs (A) and (B); or (ii) if no such assessment rate for such an entry is available at the time, identify the applicable cash deposit rate to be applied to the entry, with the applicable antidumping or countervailing duty assessment rate to be provided as soon as that rate becomes available; (D) require the posting of cash deposits and assess duties on entries described in subparagraphs (A) and (B) in accordance with the instructions received from the administering authority under paragraph (2); and (E) take such additional enforcement measures as the Commissioner determines appropriate, such as— (i) initiating proceedings under section 592 or 596; (ii) implementing, in consultation with the relevant Federal agencies, rule sets or modifications to rules sets for identifying, particularly through the Automated Targeting System and the Automated Commercial Environment, importers, other parties, and merchandise that may be associated with evasion; (iii) requiring, with respect to merchandise for which the importer has repeatedly provided incomplete or erroneous entry summary information in connection with determinations of evasion, the importer to deposit estimated duties at the time of entry; and (iv) referring the record in whole or in part to the U.S. Immigration and Customs Enforcement Agency for civil or criminal investigation. (2) Cooperation of administering authority (A) In general Upon receiving a notification from the Commissioner under paragraph (1)(C), the administering authority shall promptly provide to the Commissioner the applicable cash deposit rates and antidumping or countervailing duty assessment rates and any necessary liquidation instructions. (B) Special rule for cases in which the producer or exporter is unknown If the Commissioner and the administering authority are unable to determine the producer or exporter of the merchandise with respect to which a notification is made under paragraph (1)(C), the administering authority shall identify, as the applicable cash deposit rate or antidumping or countervailing duty assessment rate, the cash deposit or duty (as the case may be) in the highest amount applicable to any producer or exporter, including the all-others rate of the merchandise subject to an antidumping order or countervailing duty order under section 736 or 706, respectively, or a finding issued under the Antidumping Act, 1921, or any administrative review conducted under section 751. (e) Interim measures Not later than 90 calendar days after initiating an investigation under subsection (b) with respect to covered merchandise, the Commissioner shall decide based on the investigation if there is a reasonable suspicion that such covered merchandise was entered into the customs territory of the United States through evasion and, if the Commissioner decides there is such a reasonable suspicion, the Commissioner shall— (1) suspend the liquidation of each unliquidated entry of such covered merchandise that entered on or after the date of the initiation of the investigation; (2) pursuant to the Commissioner’s authority under section 504(b), extend the period for liquidating each unliquidated entry of such covered merchandise that entered before the date of the initiation of the investigation; and (3) pursuant to the Commissioner’s authority under section 623, take such additional measures as the Commissioner determines necessary to protect the revenue of the United States, including requiring a single transaction bond or additional security or the posting of a cash deposit with respect to such covered merchandise. (f) Administrative review (1) In general Not later than 30 business days after the Commissioner makes a determination under subsection (c) with respect to whether covered merchandise was entered into the customs territory of the United States through evasion, a person determined to have entered such covered merchandise through evasion or a person that filed an allegation under paragraph (2) of subsection (b) that resulted in the initiation of an investigation under paragraph (1) of that subsection with respect to such covered merchandise may file an appeal with the Commissioner for de novo review of the determination. (2) Timeline for review Not later than 60 business days after an appeal of a determination is filed under paragraph (1), the Commissioner shall complete the review of the determination. (g) Judicial review (1) In general Not later than 30 business days after the Commissioner completes a review under subsection (f) of a determination under subsection (c) with respect to whether covered merchandise was entered into the customs territory of the United States through evasion, a person determined to have entered such covered merchandise through evasion or a person that filed an allegation under paragraph (2) of subsection (b) that resulted in the initiation of an investigation under paragraph (1) of that subsection with respect to such covered merchandise may commence a civil action in the United States Court of International Trade by filing concurrently a summons and complaint contesting any factual findings or legal conclusions upon which the determination is based. (2) Standard of review In a civil action under this subsection, the court shall hold unlawful any determination, finding, or conclusion found to be arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. (h) Rule of construction with respect to other civil and criminal proceedings and investigations No determination under subsection (c) or action taken by the Commissioner pursuant to this section shall be construed to limit the authority to carry out, or the scope of, any other proceeding or investigation pursuant to any other provision of Federal or State law, including sections 592 and 596. . (b) Conforming amendment Section 1581(c) of title 28, United States Code, is amended by inserting or 517 after 516A . (c) Effective date The amendments made by this section shall take effect on the date that is 180 days after the date of the enactment of this Act. (d) Regulations Not later than the date that is 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall prescribe such regulations as may be necessary to implement the amendments made by this section. (e) Application to Canada and Mexico Pursuant to article 1902 of the North American Free Trade Agreement and section 408 of the North American Free Trade Agreement Implementation Act ( 19 U.S.C. 3438 ), the amendments made by this section shall apply with respect to goods from Canada and Mexico. 303. Annual report on prevention and investigation of evasion of antidumping and countervailing duty orders (a) In general Not later than January 15 of each calendar year that begins on or after the date that is 270 days after the date of the enactment of this Act, the Commissioner, in consultation with the Secretary of Commerce and the Director of U.S. Immigration and Customs Enforcement, 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 efforts being taken to prevent and investigate the entry of covered merchandise into the customs territory of the United States through evasion. (b) Contents Each report required under subsection (a) shall include— (1) for the calendar year preceding the submission of the report— (A) a summary of the efforts of the U.S. Customs and Border Protection Agency to prevent and investigate the entry of covered merchandise into the customs territory of the United States through evasion; (B) the number of allegations of evasion received under subsection (b) of section 517 of the Tariff Act of 1930, as added by section 302, and the number of such allegations resulting in investigations by the U.S. Customs and Border Protection Agency or any other agency; (C) a summary of investigations initiated under subsection (b) of such section 517, including— (i) the number and nature of the investigations initiated, conducted, and completed; and (ii) the resolution of each completed investigation; (D) the number of investigations initiated under that subsection not completed during the time provided for making determinations under subsection (c) of such section 517 and an explanation for why the investigations could not be completed on time; (E) the amount of additional duties that were determined to be owed as a result of such investigations, the amount of such duties that were collected, and, for any such duties not collected, a description of the reasons those duties were not collected; (F) with respect to each such investigation that led to the imposition of a penalty, the amount of the penalty; (G) an identification of the countries of origin of covered merchandise determined under subsection (c) of such section 517 to be entered into the customs territory of the United States through evasion; (H) the amount of antidumping and countervailing duties collected as a result of any investigations or other actions by the U.S. Customs and Border Protection Agency or any other agency; (I) a description of the allocation of personnel and other resources of the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency to prevent and investigate evasion, including any assessments conducted regarding the allocation of such personnel and resources; and (J) a description of training conducted to increase expertise and effectiveness in the prevention and investigation of evasion; and (2) a description of processes and procedures of the U.S. Customs and Border Protection Agency to prevent and investigate evasion, including— (A) the specific guidelines, policies, and practices used by the Agency to ensure that allegations of evasion are promptly evaluated and acted upon in a timely manner; (B) an evaluation of the efficacy of those guidelines, policies, and practices; (C) an identification of any changes since the last report required by this section, if any, that have materially improved or reduced the effectiveness of the Agency in preventing and investigating evasion; (D) a description of the development and implementation of policies for the application of single entry and continuous bonds for entries of covered merchandise to sufficiently protect the collection of antidumping and countervailing duties commensurate with the level of risk of not collecting those duties; (E) a description of the processes and procedures for increased cooperation and information sharing with the Department of Commerce, the U.S. Immigration and Customs Enforcement Agency, and any other relevant Federal agencies to prevent and investigate evasion; and (F) an identification of any recommended policy changes for other Federal agencies or legislative changes to improve the effectiveness of the U.S. Customs and Border Protection Agency in preventing and investigating evasion. (c) Public summary The Commissioner shall make available to the public a summary of the report required by subsection (a) that includes, at a minimum— (1) a description of the type of merchandise with respect to which investigations were initiated under subsection (b) of section 517 of the Tariff Act of 1930, as added by section 302; (2) the amount of additional duties determined to be owed as a result of such investigations and the amount of such duties that were collected; (3) an identification of the countries of origin of covered merchandise determined under subsection (c) of such section 517 to be entered into the customs territory of the United States through evasion; and (4) a description of the types of measures used by the U.S. Customs and Border Protection Agency to prevent and investigate evasion. (d) Definitions In this section, the terms covered merchandise and evasion have the meanings given those terms in section 517(a) of the Tariff Act of 1930, as added by section 302. IV Miscellaneous provisions 401. Consultation on trade and customs revenue functions Section 401(c) of the Safety and Accountability for Every Port Act ( 6 U.S.C. 115(c) ) is amended— (1) in paragraph (1), by striking on Department policies and actions that have and inserting not later than 30 days after proposing, and not later than 30 days before finalizing, any Department policies, initiatives, or actions that will have ; and (2) in paragraph (2)(A), by striking not later than 30 days prior to the finalization of and inserting not later than 60 days before proposing, and not later than 60 days before finalizing, . 402. Drawback simplification (a) In general Section 313 of the Tariff Act of 1930 ( 19 U.S.C. 1313 ) is amended to read as follows: 313. Drawback (a) Definitions In this section: (1) Bill of materials; formula The terms bill of materials and formula mean records kept in the ordinary course of business that identify each component incorporated into merchandise or that identify the quantity of each element, material, chemical, mixture, or other substance incorporated into merchandise. (2) Commissioner The term Commissioner means the Commissioner of U.S. Customs and Border Protection. (3) Destroyed merchandise The term destroyed merchandise means merchandise that has undergone destruction. (4) Destruction The term destruction means a process by which merchandise loses all commercial value, other than the value of any material that may be recovered when the merchandise is destroyed. (5) Direct identification The term direct identification means the identification of merchandise that is exported or destroyed to claim drawback with respect to imported merchandise as the imported merchandise or merchandise into which the imported merchandise is incorporated using— (A) the serial number or other unique identifier of the exported merchandise or destroyed merchandise and the imported merchandise; or (B) such accounting methods as are provided for by regulation by the Commissioner. (6) Directly The term directly means a transfer of merchandise from one person to another person without any intermediate transfer. (7) Fungible The term fungible means, with respect to merchandise, merchandise that is interchangeable for commercial purposes with other merchandise and has properties that are essentially identical to the properties of the other merchandise. (8) Good subject to Chile FTA drawback The term good subject to Chile FTA drawback has the meaning given that term in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act (19 U.S.C. 3805 note). (9) Good subject to NAFTA drawback The term good subject to NAFTA drawback has the meaning given that term in section 203(a) of the North American Free Trade Agreement Implementation Act ( 19 U.S.C. 3333(a) ). (10) HTS The term HTS means the Harmonized Tariff Schedule of the United States. (11) Incorporated The term incorporated means any operation by which merchandise becomes classifiable in a different 8-digit HTS subheading number. (12) Indirectly The term indirectly means a transfer of merchandise from one person to another person with one or more intermediate transfers. (13) Line item (A) Imported merchandise The term line item , with respect to imported merchandise, means the identification, in an entry filed pursuant to section 484, of merchandise imported from one country by net quantity, entered value, 8-digit HTS subheading number, and applicable duties, taxes, and fees. (B) Exported merchandise The term line item , with respect to exported merchandise, means the identification of the merchandise by 8-digit HTS subheading number or Schedule B number, declared value, and quantity. (14) NAFTA country The term NAFTA country has the meaning given that term in section 2 of the North American Free Trade Agreement Implementation Act ( 19 U.S.C. 3301 ). (15) Schedule B The term Schedule B means the Department of Commerce Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States. (16) Substitute merchandise The term substitute merchandise means merchandise that is substituted for other merchandise for drawback purposes pursuant to subsection (g). (17) Vessel The term vessel includes vessels, parts of vessels, aircraft, and parts of aircraft. (b) Eligibility for drawback (1) In general A person described in subsection (c) is eligible for drawback of duties, taxes, and fees imposed under Federal law paid on imported merchandise in an amount determined under subsection (h) if— (A) the imported merchandise meets the requirements of subsection (d); (B) (i) merchandise that meets the requirements of subsection (e) is exported; or (ii) merchandise that meets the requirements of subsection (f) is destroyed; and (C) the person files a claim for drawback with respect to the imported merchandise in accordance with subsection (i). (2) Multiple drawback claims If a person claims drawback under paragraph (1) with respect to imported merchandise based on exported merchandise or destroyed merchandise, the exported merchandise or destroyed merchandise (as the case may be) may not be the basis of any other claim for drawback, except that appropriate credit and deductions for claims covering components or ingredients of exported merchandise or destroyed merchandise shall be made in determining the amount of drawback under subsection (h). (c) Persons eligible To claim drawback (1) In general A person may claim drawback under this section if the person— (A) (i) imports the merchandise on which the claim is based; or (ii) obtains the authorization of the importer to claim the drawback; and (B) (i) exports or destroys the merchandise that was exported or destroyed to claim drawback with respect to the imported merchandise; or (ii) obtains the authorization of the exporter or the person that destroyed the merchandise (as the case may be) to claim drawback. (2) Liability for claims (A) In general Any person making a claim for drawback with respect to imported merchandise shall be liable for the full amount of the drawback claimed against the imported merchandise. (B) Liability of importers An importer shall be liable for any drawback claim made by another person with respect to imported merchandise in an amount equal to the lesser of— (i) the amount of duties, taxes, and fees that the person claimed with respect to the imported merchandise; or (ii) the amount of duties, taxes, and fees that the importer authorized the other person to claim with respect to the imported merchandise. (C) Joint and several liability Persons described in subparagraph (A) and (B) shall be jointly and severally liable for the amount described in subparagraph (B). (D) Order of recovery The Secretary of the Treasury shall seek to recover the amount of the drawback from a person described in subparagraph (A) before seeking recovery from an importer described in subparagraph (B). (d) Requirements for imported merchandise Imported merchandise meets the requirements of this subsection if— (1) all applicable duties, taxes, and fees have been paid on the imported merchandise; and (2) the imported merchandise is entered or withdrawn from warehouse for consumption. (e) Requirements for exported merchandise (1) In general Exported merchandise meets the requirements of this subsection if the exported merchandise is— (A) the imported merchandise; (B) merchandise that is substituted for the imported merchandise pursuant to subsection (g); (C) merchandise into which the imported merchandise or substitute merchandise is incorporated; or (D) merchandise that is substituted, pursuant to subsection (g), for merchandise into which the imported merchandise or substitute merchandise is incorporated. (2) Special rules with respect to incorporation of merchandise into other merchandise For purposes of subparagraphs (C) and (D) of paragraph (1), imported merchandise or substitute merchandise is incorporated into other merchandise— (A) if the bill of materials or formula for such other merchandise submitted with the claim for drawback under subsection (i) includes the imported merchandise or substitute merchandise; and (B) without regard to the number of times the imported merchandise or substitute merchandise is incorporated into such other merchandise. (f) Requirements for destroyed merchandise (1) In general Destroyed merchandise meets the requirements of this subsection if— (A) the merchandise is— (i) the imported merchandise; (ii) merchandise that is substituted for the imported merchandise pursuant to subsection (g); (iii) merchandise into which the imported merchandise or substitute merchandise is incorporated; or (iv) merchandise that is substituted, pursuant to subsection (g), for merchandise into which the imported merchandise or substitute merchandise is incorporated; and (B) the merchandise— (i) is not exported because of its destruction; and (ii) was not used in the United States before its destruction. (2) Treatment of returned merchandise For purposes of paragraph (1)(B)(ii), merchandise is not used in the United States solely because the merchandise is— (A) sold at retail by the importer or another person that received the merchandise from the importer under a certificate of delivery; and (B) subsequently returned to and accepted by the importer or other person described in subparagraph (A). (g) Substitution (1) In general Except as provided in this subsection, merchandise may be substituted for other merchandise if it can be demonstrated that the merchandise was classifiable under the same 8-digit HTS subheading number as such other merchandise at some point during the 5-year period beginning on the date on which the merchandise was imported. (2) Classification The Schedule B number for merchandise may be used for purposes of determining under paragraph (1) if the merchandise is or has been classified under the same 8-digit HTS subheading number as other merchandise, without regard to whether the Schedule B number encompasses more than one 8-digit HTS subheading number. (3) Special substitution rules (A) (i) Merchandise that is classifiable under any heading or subheading of the HTS specified in clause (ii) may be substituted for other merchandise if the merchandise is classifiable under the same 8-digit HTS subheading number as the other merchandise under the HTS as in effect on January 1, 2000. (ii) A heading or subheading of the HTS specified in this clause is— (I) any of headings 2707 through 2715, 2901, or 2902; (II) any of headings 3901 through 3914 (as such headings apply to the primary forms provided under Note 6 to chapter 39 of the HTS); or (III) subheading 2903.21.00, 2909.19.14, 2917.36, 2917.39.04, 2917.39.15, 2926.10.00, 3811.21.00, or 3811.90.00. (B) Merchandise that is classifiable under subheading 2204.21.50, 2204.29.20, or 2204.29.60 of the HTS may be substituted for other merchandise that is classifiable under any such subheading. (C) Merchandise that is classifiable under subheading 2204.21.80, 2204.29.40, or 2204.29.80 of the HTS may be substituted for other merchandise that is classifiable under any such subheading. (4) Special rule for ethyl alcohol Notwithstanding any other provision of law, in the case of any duty paid under subheading 9901.00.50 of the HTS on imports of ethyl alcohol or a mixture of ethyl alcohol, such duty may not be refunded if the exported merchandise upon which a drawback claim is based does not contain ethyl alcohol or a mixture of ethyl alcohol. (h) Amount of drawback (1) Claims based on exportation of imported or substitute merchandise If a person claims drawback with respect to imported merchandise based on the exportation of the imported merchandise or substitute merchandise, the amount of drawback paid pursuant to this section shall be equal to 99 percent of the product of— (A) the number of units of the imported merchandise or substitute merchandise exported to claim drawback with respect to the imported merchandise, and (B) the lesser of— (i) the amount of duties, taxes, and fees paid with respect to the line item for the imported merchandise divided by the total number of units of the imported merchandise included in the line item, or (ii) the amount of duties, taxes, and fees that would apply to the exported merchandise if the exported merchandise were imported divided by the number of units of the exported merchandise. (2) Claims based on destruction of imported merchandise, merchandise into which imported merchandise is incorporated, or merchandise substituted for merchandise into which imported merchandise is incorporated If a person claims drawback with respect to imported merchandise based on the destruction of the imported merchandise, merchandise into which the imported merchandise is incorporated, or merchandise substituted for merchandise into which the imported merchandise is incorporated, the amount of drawback paid pursuant to this section shall be equal to 99 percent of— (A) the product of— (i) the number of units of the imported merchandise destroyed to claim drawback with respect to the imported merchandise or incorporated into merchandise for which the destroyed merchandise is substituted, and (ii) the amount of duties, taxes, and fees paid with respect to the line item for the imported merchandise divided by the total number of units of the imported merchandise included in the line item, minus (B) the value of any materials recovered during the destruction of the destroyed merchandise (including the value of any tax benefit or royalty payment with respect to such materials). (3) Claims based on exportation of merchandise into which imported or substitute merchandise is incorporated or merchandise substituted for merchandise into which imported or substitute merchandise is incorporated If a person claims drawback with respect to imported merchandise based on the exportation of merchandise into which the imported merchandise or substitute merchandise is incorporated, or merchandise substituted for merchandise into which the imported merchandise or substitute merchandise is incorporated, the amount of drawback paid pursuant to this section shall be equal to 99 percent of the product of— (A) the number of units of the imported merchandise or substitute merchandise incorporated into the exported merchandise or the merchandise for which the exported merchandise is substituted, and (B) (i) in the case of exported merchandise into which the imported merchandise is incorporated or exported merchandise substituted for merchandise into which the imported merchandise is incorporated, the amount of duties, taxes, and fees paid with respect to the line item for the imported merchandise divided by the number of units of the imported merchandise included in the line item, or (ii) in the case of exported merchandise into which substitute merchandise is incorporated or exported merchandise substituted for merchandise into which substitute merchandise is incorporated, the lesser of— (I) the amount of duties, taxes, and fees paid with respect to the line item for the imported merchandise divided by the total number of units of the imported merchandise included in the line item, or (II) the amount of duties, taxes, and fees that would apply to the substitute merchandise, if the substitute merchandise were imported, divided by the number of units of the substitute merchandise incorporated into the exported merchandise or the merchandise for which the exported merchandise is substituted. (4) Claims based on destruction of substitute merchandise, merchandise into which substitute merchandise is incorporated, or merchandise substituted for merchandise into which substitute merchandise is incorporated If a person claims drawback with respect to imported merchandise based on the destruction of substitute merchandise, merchandise into which substitute merchandise is incorporated, or merchandise substituted for merchandise into which substitute merchandise is incorporated, the amount of drawback paid pursuant to this section shall be equal to 99 percent of the lesser of— (A) the amount of— (i) duties, taxes, and fees that would apply to the substitute merchandise destroyed, incorporated into destroyed merchandise, or incorporated into merchandise for which the destroyed merchandise is substituted, if the substitute merchandise were imported, minus (ii) the value of any materials recovered during the destruction of the destroyed merchandise (including the value of any tax benefit or royalty payment with respect to such materials), or (B) the amount of drawback the person could have claimed under paragraph (2) if the person had destroyed the imported merchandise. (5) Limitation for duties, taxes, and fees previously refunded The amount of duties, taxes, and fees that may be refunded as drawback with respect to imported merchandise pursuant to this subsection shall be reduced by the amount of any duties, taxes, and fees previously refunded to a person with respect to such merchandise. (i) Filing requirements The requirements for filing a claim for drawback under this subsection are the following: (1) Electronic filing The claim shall be filed electronically. (2) Time limit for claim The claim shall be filed not later than 5 years after the date— (A) on which the merchandise with respect to which drawback is claimed is imported; or (B) if the claim is based on merchandise imported on more than one date, the earliest date on which any such merchandise was imported. (3) Identification of merchandise The claim shall include an identification of the merchandise with respect to which the claim is filed as follows: (A) If drawback is claimed with respect to imported merchandise based on the exportation of merchandise, a demonstration that the exported merchandise meets the requirements of subsection (e) using— (i) (I) the information contained in the line item for the imported merchandise and information contained in the line item for the exported merchandise; and (II) in the case of imported merchandise or substitute merchandise incorporated into the exported merchandise or merchandise that is substituted for merchandise into which imported merchandise or substitute merchandise is incorporated, a bill of materials or formula identifying the imported merchandise or substitute merchandise and the exported merchandise by the 8-digit HTS subheading number and the quantity of the imported merchandise or substitute merchandise and the exported merchandise; or (ii) direct identification. (B) If drawback is claimed with respect to imported merchandise based on the destruction of merchandise, an identification of the imported merchandise and the destroyed merchandise using— (i) (I) the information contained in the line item for the imported merchandise and information identifying the destroyed merchandise by 8-digit HTS subheading number and quantity; and (II) in the case of imported merchandise or substitute merchandise incorporated into the destroyed merchandise or merchandise that is substituted for merchandise into which imported merchandise or substitute merchandise is incorporated, a bill of materials or formula identifying the imported merchandise or substitute merchandise and the destroyed merchandise by the 8-digit HTS subheading number and the quantity of the imported merchandise or substitute merchandise and the destroyed merchandise; or (ii) using direct identification. (4) Proof of exportation If drawback is claimed with respect to imported merchandise based on the exportation of merchandise, the claim shall include, as proof of exportation, one of the following: (A) The record of exportation entered in the automated export system of the United States Government or, if the exporter is unable to use that system, information similar to the information contained in such a record that is kept by the exporter in the ordinary course of business. (B) In the case of a deemed export, any record that establishes the deemed export, or a copy of such a record, that is kept by the exporter in the ordinary course of business. (5) Proof of authorization The claim shall include, as proof of the authorization under subsection (c)(1) of the importer, exporter, or person who destroyed merchandise, as appropriate, for another person to claim drawback, records kept in the ordinary course of business demonstrating the authorization. (j) Special rules (1) Vessels built for residents of a foreign country Drawback under this section may be claimed for materials imported and used in the construction and equipment of vessels built for foreign account and ownership, or for the government of any foreign country, notwithstanding that such vessels may not within the strict meaning of the term be exported. (2) Agricultural products No drawback may be claimed under this section for an agricultural product with respect to which an over-quota rate of duty has been paid, unless the product is identified as the imported agricultural product using direct identification. (3) Certain exported merchandise (A) In general Except as provided in subparagraph (B), upon the exportation of flavoring extracts, flavors, medicines, medicinal preparations, or perfumes manufactured or produced in the United States in part from domestic alcohol on which an internal revenue tax has been paid, there shall be allowed a drawback in an amount equal to the tax found to have been paid on the alcohol so used. (B) Limitation If drawback has been claimed under section 5114 of the Internal Revenue Code of 1986 with respect to flavoring extracts, flavors, medicines, medicinal preparations, or perfumes manufactured or produced in the United States, the amount of drawback under this paragraph shall be limited to $1 per proof gallon. (C) Form of claim A claim for drawback under this paragraph shall be submitted in such form, at such times, and under such conditions as the Secretary of the Treasury shall prescribe by regulation. (4) Payment from receipts of Puerto Rico A drawback under this section for merchandise shall be paid from the customs receipts of Puerto Rico if the duties for such merchandise were originally paid into the Treasury of Puerto Rico. (k) Drawback on exported goods under certain free trade agreements (1) Special rules for NAFTA countries (A) In general Subject to section 508(b)(2)(B) of the Tariff Act of 1930 ( 19 U.S.C. 1508(b)(2)(B) ), and for purposes of this section, if merchandise that is exported to a NAFTA country is a good subject to NAFTA drawback, no customs duties on the good may be refunded, waived, or reduced in an amount that exceeds the lesser of— (i) the total amount of customs duties paid or owed on the good on importation into the United States; or (ii) the total amount of customs duties paid on the good on importation into the NAFTA country. (B) Special rule for Canada If Canada ceases to be a NAFTA country and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter terminates, then for purposes of this section, the shipment to Canada during the period such Agreement is in operation of merchandise made from or substituted for a good eligible for drawback under section 204(a) of the United States-Canada Free-Trade Agreement Implementation Act of 1988 ( Public Law 100–449 ; 19 U.S.C. 2112 note) does not constitute an exportation. (C) Fungible merchandise exported to NAFTA countries The exportation to a NAFTA country of merchandise that is fungible with and substituted for imported merchandise, other than merchandise described in paragraphs (1) through (8) of section 203(a) of the North American Free Trade Agreement Implementation Act ( 19 U.S.C. 3333(a) ), shall not be treated as an exportation of substitute merchandise for purposes of drawback under this section. (D) Proof of exportation to Canada or Mexico Notwithstanding subsection (i)(4), a person filing a claim under this paragraph shall submit, as proof of exportation, the entry records from Canada or Mexico. (2) Special rules for Chile (A) In general For purposes of this section, if merchandise that is exported to Chile is a good subject to Chile FTA drawback, no customs duties on the good may be refunded, waived, or reduced, except as provided in subparagraph (B). (B) Amount of customs duties The customs duties referred to in subparagraph (A) may be refunded, waived, or reduced by— (i) 100 percent during the 8-year period beginning on January 1, 2004; (ii) 75 percent during the 1-year period beginning on January 1, 2012; (iii) 50 percent during the 1-year period beginning on January 1, 2013; and (iv) 25 percent during the 1-year period beginning on January 1, 2014. (C) Fungible merchandise exported to Chile Beginning on January 1, 2015, the exportation to Chile of merchandise that is fungible with and substituted for imported merchandise, other than merchandise described in paragraphs (1) through (5) of section 203(a) of the United States-Chile Free Trade Agreement Implementation Act ( 19 U.S.C. 3805 note), shall not be treated as an exportation of substitute merchandise for purposes of drawback under this section. The preceding sentence shall not be construed to permit the substitution of merchandise under this section with respect to merchandise described in paragraph (2) of section 203(a) of the United States-Chile Free Trade Agreement Implementation Act. . (b) Technical and conforming amendments (1) Refunds Section 505(b) of the Tariff Act of 1930 ( 19 U.S.C. 1505(b) ) is amended by adding at the end the following: Refunds of excess moneys deposited, as determined on a liquidation or reliquidation, shall be reduced by any amount paid, on an accelerated basis or otherwise, to a person claiming drawback pursuant to section 313. (2) Review of protests The second sentence of section 515(a) of the Tariff Act of 1930 ( 19 U.S.C. 1515(a) ) is amended by striking the period at the end and inserting in accordance with section 505. . (3) Refunds, waivers, and reductions of duty under NAFTA Section 508(b)(2)(B)(i)(III) of the Tariff Act of 1930 (19 U.S.C. 1508(b)(2)(B)(i)(III)) is amended by striking section 313(n)(2) or (o)(1) and inserting section 313(k)(1) . (c) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to drawback claims filed with respect to merchandise that enters the United States on or after the date that is 2 years after the date of the enactment of this Act. (2) Transition rule During the 1-year period beginning on the date specified in paragraph (1), a person may elect to file a claim for drawback under— (A) section 313 of the Tariff Act of 1930, as amended by this section; or (B) section 313 of the Tariff Act of 1930, as in effect on the day before the date specified in paragraph (1). (d) Government Accountability Office report Not later than the date that is 4 years 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 that contains— (1) an evaluation of the costs and benefits to the Federal Government, and the benefits to the private sector, resulting from the implementation of section 313 of the Tariff Act of 1930, as amended by this section; and (2) an assessment of the extent to which the implementation of that section may permit a person claiming drawback with respect to imported merchandise to receive drawback in excess of the duties, taxes, or fees paid on the imported merchandise. 403. Penalties for customs brokers (a) In general Section 641(d)(1) of the Tariff Act of 1930 ( 19 U.S.C. 1641(d)(1) ) is amended— (1) in subparagraph (E), by striking ; or and inserting a semicolon; (2) in subparagraph (F), by striking the period and inserting ; or ; and (3) by adding at the end the following: (G) has been convicted of committing or conspiring to commit an act of terrorism described in section 2332b of title 18, United States Code. . (b) Technical amendments Section 641 of the Tariff Act of 1930 (19 U.S.C. 1641) is amended— (1) in subsection (g)(2)(B), by striking Secretary's notice and inserting notice under subparagraph (A) ; and (2) by striking Customs Service each place it appears and inserting U.S. Customs and Border Protection Agency . 404. Amendments to chapter 98 of the Harmonized Tariff Schedule of the United States (a) Articles exported and returned, advanced or improved abroad Subchapter II of chapter 98 of the Harmonized Tariff Schedule of the United States is amended by adding at the end of U.S. Note 3 the following: (f) (i) For purposes of subheadings 9802.00.40 and 9802.00.50, fungible articles exported from the United States for the purposes described in such subheadings— (A) may be commingled; and (B) the origin, value, and classification of such articles may be accounted for using an inventory management method. (ii) If a person chooses to use an inventory management method under this subdivision with respect to fungible articles, the person shall use the same inventory management method for those articles with respect to which the person claims fungibility. (iii) For purposes of this subdivision— (A) the term fungible articles means articles that are interchangeable for commercial purposes and have essentially identical properties; and (B) the term inventory management method means any method for managing inventory that is based on generally accepted accounting principles. . (b) Modification of provisions relating to returned property The article description for subheading 9801.00.10 of the Harmonized Tariff Schedule of the United States is amended by inserting after exported the following: , or any other products when returned within 3 years after having been exported . (c) Duty-Free treatment for certain United States Government property returned to the United States Subchapter I of chapter 98 of the Harmonized Tariff Schedule of the United States is amended by inserting in numerical sequence the following new subheading: 9801.00.11 United States Government property, returned to the United States without having been advanced in value or improved in condition by any means while abroad, entered by the United States Government or a contractor to the United States Government, and certified by the importer as United States Government property Free . 405. Charter flights Section 13031(e)(1) of the Consolidated Omnibus Budget Reconciliation Act of 1985 ( 19 U.S.C. 58c(e)(1) ) is amended— (1) by striking (1) Notwithstanding section 451 of the Tariff Act of 1930 ( 19 U.S.C. 1451 ) or any other provision of law (other than paragraph (2)) and inserting the following: (1) (A) Notwithstanding section 451 of the Tariff Act of 1930 ( 19 U.S.C. 1451 ) or any other provision of law (other than subparagraph (B) and paragraph (2)) ; and (2) by adding at the end the following: (B) (i) An appropriate officer of the U.S. Customs and Border Protection Agency may assign a sufficient number of employees from the Agency (if available) to perform services described in clause (ii) for a charter air carrier (as defined in section 40102 of title 49, United States Code) for a charter flight arriving after normal operating hours at an airport that is an established port of entry serviced by the Agency, notwithstanding that overtime funds for those services are not available, if the charter air carrier— (I) not later than 4 hours before the flight arrives, specifically requests that such services be provided; and (II) pays any overtime fees incurred in connection with such services. (ii) Services described in this clause are customs services for passengers and their baggage or any other such service that could lawfully be performed during regular hours of operation. . 406. Pilot program to designate additional 24-hour commercial ports of entry (a) Establishment of pilot program The President shall establish a pilot program under which the President shall— (1) pursuant to the Act of August 1, 1914 (38 Stat. 623, chapter 223; 19 U.S.C. 2 ), designate certain land border crossings as 24-hour commercial ports of entry in accordance with subsections (b) and (c); and (2) ensure that each land border crossing designated as a commercial port of entry under the pilot program has sufficient resources— (A) to carry out the functions of a commercial port of entry, including accepting entries of merchandise, collecting duties, and enforcing the customs and trade laws of the United States; and (B) to perform those functions 24 hours a day. (b) Designation Not later than 180 days after the date of the enactment of this Act, the President shall, after considering the criteria set forth in subsection (c) and any input provided by the public, designate not fewer than 2 and not more than 6 land border crossings, equally divided between land border crossings on the northern and southern borders of the United States, as 24-hour commercial ports of entry under the pilot program established under subsection (a). (c) Criteria In designating a land border crossing as a 24-hour commercial port of entry under the pilot program established under subsection (a), the President shall consider the following: (1) The number of 24-hour commercial ports of entry already located in the State in which the land border crossing is located. (2) The costs associated with operating the land border crossing as a 24-hour commercial port of entry, including whether the Federal Government would be required to acquire or lease additional land. (3) The positive economic impact of designating the land border crossing as a 24-hour commercial port of entry on the community in which the land border crossing is located. (4) Any commitment of resources by the government of Canada or Mexico, as applicable, to a similar designation of a corresponding foreign port of entry. (5) The support demonstrated by the government of the State or locality in which the land border crossing is located, including through infrastructure improvements, to facilitate the operation of the land border crossing as a 24-hour commercial port of entry. (d) Termination (1) Determination of economic benefit Not later than the date that is 2 years after the date on which a land border crossing designated as a 24-hour commercial port of entry under the pilot program established under subsection (a) becomes fully operational as a 24-hour commercial port of entry, the President shall— (A) determine whether the operation of the land border crossing as a port of entry 24 hours a day provides a net economic benefit to the United States; and (B) submit to the Committee on Finance of the Senate and Committee on Ways and Means of the House of Representatives a report on that determination and the reasons for that determination. (2) Termination If the President determines under paragraph (1) that operating a land border crossing as a port of entry 24 hours a day does not provide a net economic benefit to the United States, the land border crossing shall cease to operate as a port of entry 24 hours a day on the date on which the President submits the report under paragraph (1)(B). (e) Report Not later than 90 days before the President makes a determination under subsection (d)(1) with respect to a land border crossing designated as a 24-hour commercial port of entry under the pilot program established under subsection (a), the President shall submit to the Committee on Finance of the Senate and Committee on Ways and Means of the House of Representatives a report that provides— (1) a comparison of the vehicle traffic, the estimated total volume of commercial merchandise entered, and the wait times at the land border crossing— (A) during the 2-year period preceding the designation of the land border crossing as a 24-hour commercial port of entry; and (B) after the land border crossing becomes fully operational as a 24-hour commercial port of entry; (2) a comparison of the total value of commercial merchandise transported through the land border crossing— (A) during the 2-year period preceding the designation of the land border crossing as a 24-hour commercial port of entry; and (B) after the land border crossing becomes fully operational as a 24-hour commercial port of entry; and (3) a comparison of wait times at other ports of entry in the State in which the land border crossing is located— (A) during the 2-year period preceding the designation of the land border crossing as a 24-hour commercial port of entry; and (B) after the land border crossing becomes fully operational as a 24-hour commercial port of entry. 407. Elimination of consumptive demand exception to prohibition on importation of goods made with convict labor, forced labor, or indentured labor; report (a) Elimination of consumptive demand exception (1) In general Section 307 of the Tariff Act of 1930 ( 19 U.S.C. 1307 ) is amended by striking The provisions of this section and all that follows through of the United States. . (2) Effective date The amendment made by paragraph (1) shall take effect on the date that is 15 days after the date of the enactment of this Act. (b) Report required Not later than 180 days after the date of the enactment of this Act, and annually thereafter, the Commissioner 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 compliance with section 307 of the Tariff Act of 1930 ( 19 U.S.C. 1307 ) that includes the following: (1) The number of instances in which merchandise was denied entry pursuant to that section during the 1-year period preceding the submission of the report. (2) A description of the merchandise denied entry pursuant to that section. (3) Such other information as the Commissioner considers appropriate with respect to monitoring and enforcing compliance with that section. 408. Honey transshipment (a) In general The Commissioner of U.S. Customs and Border Protection shall direct appropriate personnel and resources of the U.S. Customs and Border Protection Agency to address concerns that honey is being imported into the United States in violation of the customs and trade laws of the United States. (b) Country of origin (1) In general The Commissioner of U.S. Customs and Border Protection shall compile a database of the individual characteristics of honey produced in foreign countries to facilitate the verification of country of origin markings of imported honey. (2) Engagement with foreign governments The Commissioner shall seek to engage the customs agencies of foreign governments for assistance in compiling the database described in paragraph (1). (3) Consultation with industry In compiling the database described in paragraph (1), the Commissioner shall consult with entities in the honey industry regarding the development of industry standards for honey identification. (4) Consultation with Food and Drug Administration In compiling the database described in paragraph (1), the Commissioner shall consult with the Commissioner of Food and Drugs. (c) Report required Not later than 180 days after the date of the enactment of this Act, the Commissioner of U.S. Customs and Border Protection shall submit to Congress a report that— (1) describes and assesses the limitations in the existing analysis capabilities of laboratories with respect to determining the country of origin of honey samples or the percentage of honey contained in a sample; and (2) includes any recommendations of the Commissioner for improving such capabilities. (d) Sense of Congress It is the sense of Congress that the Commissioner of Food and Drugs should promptly establish a national standard of identity for honey for the Commissioner of U.S. Customs and Border Protection to use to ensure that imports of honey are— (1) classified accurately for purposes of assessing duties; and (2) denied entry into the United States if such imports pose a threat to the health or safety of consumers in the United States. 409. Contraband archaeological or ethnological materials (a) In general The Commissioner shall ensure that appropriate personnel of the U.S. Customs and Border Protection Agency are trained in the detection, identification, and detention of archaeological or ethnological materials the importation of which violates the customs and trade laws of the United States. (b) Training The Commissioner is authorized to accept training and other support services from experts outside of the Federal Government in the detection, identification, and detention of archaeological or ethnological materials described in subsection (a). 410. De minimis value and entry under regulations (a) Increase in maximum value of articles that may be imported duty-Free by one person on one day (1) In general Section 321(a)(2)(C) of the Tariff Act of 1930 ( 19 U.S.C. 1321(a)(2)(C) ) is amended by striking $200 and inserting $800 . (2) Effective date The amendment made by paragraph (1) shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act. (b) Entry under regulations Section 498 of the Tariff Act of 1930 (19 U.S.C. 1498) is amended— (1) in subsection (a), by striking paragraph (1) and inserting the following: (1) Merchandise, when different commercial facilitation and risk considerations that may vary for different classes or kinds of merchandise or different classes of transactions may dictate; ; (2) by redesignating subsection (b) as subsection (c); and (3) by inserting after subsection (a) the following: (b) Entry of merchandise valued at $2,500 or less (1) In general Except as provided in paragraph (2), the Secretary of the Treasury shall prescribe rules and regulations for the declaration and entry of merchandise if the aggregate value of the shipment of merchandise does not exceed $2,500. (2) Exception The rules and regulations prescribed under paragraph (1) shall not apply to merchandise that— (A) has a value in excess of $250; and (B) is classified under section VII, VIII, XI, or XII, chapter 94, or subchapter III or IV of chapter 99 of the Harmonized Tariff Schedule of the United States. . 411. Repeal of authority of U.S. Customs and Border Protection Agency to enter into certain reimbursable fee agreements Section 560 of the Department of Homeland Security Appropriations Act, 2013 (division D of the Consolidated and Further Continuing Appropriations Act, 2013) is repealed.