U.S. Foreign Trade Zone Parity Act of 2024

Bill: 118-hr-8059
Sponsor: full_name: Rep. Wenstrup, Brad R. [R-OH-2]
Introduced: 2024-04-17
Policy area: Foreign Trade and International Finance
Latest action: action_date: 2024-12-17
text: Referred to the Subcommittee on Trade.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 8059 IN THE HOUSE OF REPRESENTATIVES April 17, 2024 Mr. Wenstrup (for himself, Mr. Correa , Mrs. Miller of West Virginia , Mr. Gallego , Mr. Fitzpatrick , and Mr. Carey ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To eliminate the incentive to distribute e-commerce shipments from foreign countries by providing parity to United States foreign-trade zones, and for other purposes.

1. Short title This Act may be cited as the U.S. Foreign Trade Zone Parity Act of 2024 . 2. Customs entry procedures for articles withdrawn from a foreign-trade zone (a) In general Section 321 of the Tariff Act of 1930 ( 19 U.S.C. 1321 ) is amended— (1) in subsection (a)(2), in the matter preceding subparagraph (A)— (A) by inserting or withdrawal from a foreign trade zone and subsequent entry for consumption after by reason of importation ; (B) by inserting or in a foreign-trade zone after in the country of shipment ; (C) by inserting , or if withdrawn from a foreign-trade zone on one invoice or order for one ultimate consignee on one day, after one person on one day ; and (D) by striking subdivision (2) each place it appears and inserting paragraph (2) ; and (2) by adding at the end the following: (c) In this section, the term foreign-trade zone means a zone established pursuant to the Act of June 18, 1934 (commonly known as the ‘Foreign-Trade Zones Act’) ( 19 U.S.C. 81a et seq. ). . (b) Effective date The amendments made by subsection (a) shall take effect on the date of the enactment of this Act and apply with respect to articles entered on or after the 30th day after the date on which final regulations to implement this Act and the amendments made by this Act take effect in accordance with section 4(b). 3. Treatment of e-commerce under Foreign-Trade Zones Act (a) In general Section 15(d) of the Act of June 18, 1934 (commonly known as the Foreign-Trade Zones Act ) ( 19 U.S.C. 81o(d) ) is amended— (1) by inserting (1) after (d) ; and (2) by adding at the end the following: (2) (A) In this subsection, the term retail trade does not include any electronic commerce transaction in which articles with a fair retail value in the country of shipment or in a foreign-trade zone of less than the amount specified in section 321(a)(2)(C) of the Tariff Act of 1930 ( 19 U.S.C. 1321(a)(2)(C) ) are withdrawn from a zone. (B) For purposes of subparagraph (A), the term ‘electronic commerce’ means the production, distribution, marketing, sale, or delivery of goods and services by electronic means. . (b) Effective date The amendments made by subsection (a) shall take effect on the date on which the final regulations to implement this Act and the amendments made by this Act take effect in accordance with section 4(b). 4. Proposed and final regulations (a) Proposed regulations (1) In general Not later than 120 days after the date of the enactment of this Act, the Secretary of the Treasury, in coordination with the Secretary of Homeland Security and the Secretary of Commerce, shall prescribe proposed regulations to implement this Act and the amendments made by this Act in accordance with the requirements described in this section. (2) Matters to be included The regulations described in paragraph (1) shall, at minimum— (A) use a distinct valuation method under section 146.65(b)(2) of title 19, Code of Federal Regulations, for calculation of dutiable value of entries made under section 321(a)(2) of the Tariff Act of 1930 ( 19 U.S.C. 1321(a)(2) ), as amended by section 2(a)(1), from the foreign trade zone; and (B) require such calculation of dutiable value to be based on the transaction value at the time of withdrawal from the foreign trade zone. (3) Requirements The Secretary of the Treasury, in coordination with the Secretary of Homeland Security and the Secretary of Commerce, shall— (A) publish the proposed regulations described in paragraph (1) in the Federal Register and provide for a 60-day period for public review and comment on such regulations; and (B) not later than 90 days after the expiration of the 60-day period described in subparagraph (A), submit the proposed regulations to Congress for review and consultation by Congress on such regulations. (b) Final regulations Final regulations to implement this Act and the amendments made by this Act may take effect only if a period of not less than 60 days, beginning on the first day on which the requirements described in subparagraphs (A) and (B) of subsection (a)(3) have been met, has expired. 5. Rule of construction Nothing in Act or the amendments made by this Act may be construed to affect the administration of section 484(i) of the Tariff Act of 1930 ( 19 U.S.C. 1484(i) ) or section 15(d) of the Act of June 18, 1934 (commonly known as the Foreign-Trade Zones Act ) ( 19 U.S.C. 81o(d) ).