HR 6642 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 6642CommentsClose CommentsPermalink

To reauthorize customs trade facilitation and enforcement functions and programs, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

December 7, 2012CommentsClose CommentsPermalink

Mr. BRADY of Texas introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Homeland Security and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To reauthorize customs trade facilitation and enforcement functions and programs, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Customs Trade Facilitation and Enforcement Act of 2012’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink





Sec. 2. Definitions.CommentsClose CommentsPermalink

TITLE I--CUSTOMS FACILITATION

Subtitle A--Functions Other Than Investigative Functions

Sec. 101. Establishment of Agency; Commissioner.CommentsClose CommentsPermalink





Sec. 102. Officers and employees.CommentsClose CommentsPermalink





Sec. 103. Separate budget for U.S. Customs and Border Protection Agency.CommentsClose CommentsPermalink





Sec. 104. Revolving fund.CommentsClose CommentsPermalink





Sec. 105. Advances in foreign countries.CommentsClose CommentsPermalink





Sec. 106. Advances for enforcement of customs provisions.CommentsClose CommentsPermalink





Sec. 107. Certification of reason for advance.CommentsClose CommentsPermalink





Sec. 108. Payments in foreign countries; claims for reimbursement.CommentsClose CommentsPermalink





Sec. 109. Customs administration.CommentsClose CommentsPermalink





Sec. 110. Designation of trade oversight personnel.CommentsClose CommentsPermalink





Sec. 111. Consultation on trade and customs revenue functions.CommentsClose CommentsPermalink





Sec. 112. Authorization of appropriations.CommentsClose CommentsPermalink

Subtitle B--Investigative Functions

Sec. 121. Separate budget for U.S. Immigration and Customs Enforcement.CommentsClose CommentsPermalink





Sec. 122. Authorization of appropriations.CommentsClose CommentsPermalink

Subtitle C--Joint Strategic Plan

Sec. 131. Joint Strategic Plan.CommentsClose CommentsPermalink

TITLE II--CUSTOMS FACILITATION, TRADE ENFORCEMENT, AND TRANSPARENCY

Subtitle A--Customs Facilitation and Transparency

Sec. 201. Consultations with respect to mutual recognition agreements.CommentsClose CommentsPermalink





Sec. 202. Commercial Customs Operations Advisory Committee.CommentsClose CommentsPermalink





Sec. 203. Automated Commercial Environment computer system.CommentsClose CommentsPermalink





Sec. 204. International Trade Data System.CommentsClose CommentsPermalink

Subtitle B--Trade Enforcement

Chapter 1--Commercial Risk Assessment Targeting

Sec. 211. Commercial Targeting Division and National Targeting and Analysis Groups.CommentsClose CommentsPermalink





Sec. 212. Centers of Excellence and Expertise.CommentsClose CommentsPermalink





Sec. 213. Report on oversight of revenue protection and enforcement measures.CommentsClose CommentsPermalink





Sec. 214. Report on security and revenue measures with respect to merchandise transported in bond.CommentsClose CommentsPermalink





Sec. 215. Report on effectiveness of trade enforcement activities.CommentsClose CommentsPermalink





Sec. 216. Priorities and performance standards for Customs modernization, trade facilitation, and trade enforcement functions and programs.CommentsClose CommentsPermalink





Sec. 217. Educational seminars to improve efforts to classify and appraise imported articles and to improve trade enforcement efforts.CommentsClose CommentsPermalink

Chapter 2--Importer Requirements

Sec. 221. Importer of record program.CommentsClose CommentsPermalink





Sec. 222. Customs broker identification of importers.CommentsClose CommentsPermalink





Sec. 223. Establishment of ‘new importer’ program.CommentsClose CommentsPermalink





Sec. 224. Requirements applicable to non-resident importers.CommentsClose CommentsPermalink





Sec. 225. Certified importer program.CommentsClose CommentsPermalink

Chapter 3--Import-Related Protection of Intellectual Property Rights

Sec. 231. Exchange of information related to trade enforcement.CommentsClose CommentsPermalink

TITLE III--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY ORDERS

Sec. 301. Short title.CommentsClose CommentsPermalink





Sec. 302. Definitions.CommentsClose CommentsPermalink





Sec. 303. Application to Canada and Mexico.CommentsClose CommentsPermalink

Subtitle A--Actions Relating to Enforcement of Trade Remedy Laws

Sec. 311. Trade Remedy Law Enforcement Division.CommentsClose CommentsPermalink





Sec. 312. Collection of information on evasion of trade remedy laws.CommentsClose CommentsPermalink





Sec. 313. Access to information.CommentsClose CommentsPermalink





Sec. 314. Cooperation with foreign countries on preventing evasion of trade remedy laws.CommentsClose CommentsPermalink





Sec. 315. Trade negotiating objectives.CommentsClose CommentsPermalink

Subtitle B--Other Matters

Sec. 321. Allocation and training of personnel.CommentsClose CommentsPermalink





Sec. 322. Annual report on prevention of evasion of antidumping and countervailing duty orders.CommentsClose CommentsPermalink





Sec. 323. Addressing circumvention by new shippers.CommentsClose CommentsPermalink

TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Penalties for customs brokers.CommentsClose CommentsPermalink





Sec. 402. De minimis value and entry under regulations.CommentsClose CommentsPermalink





Sec. 403. Collection and remittance of certain Customs User Fees.CommentsClose CommentsPermalink





Sec. 404. Drawback and refunds.CommentsClose CommentsPermalink





Sec. 405. Amendments to chapter 98 of the Harmonized Tariff Schedule of the United States.CommentsClose CommentsPermalink

TITLE V--OTHER TRADE AGENCIES

Sec. 501. United States International Trade Commission.CommentsClose CommentsPermalink





Sec. 502. Office of the United States Trade Representative.CommentsClose CommentsPermalink

SEC. 2. DEFINITIONS.

In this Act:CommentsClose CommentsPermalink





(1) COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE- The term ‘Commercial Customs Operations Advisory Committee’ means the Advisory Committee established pursuant to section 202 of this Act or any successor committee.CommentsClose CommentsPermalink





(2) COMMERCIAL OPERATIONS- The term ‘commercial operations’, with respect to the U.S. Customs and Border Protection Agency, includes--CommentsClose CommentsPermalink





(A) administering any customs revenue function delegated by the Secretary of the Treasury to the Secretary of Homeland Security pursuant to section 412 of the Homeland Security Act of 2002 (6 U.S.C. 212);CommentsClose CommentsPermalink





(B) facilitating legitimate international trade, and enforcing the customs and trade laws of the United States to the extent of the authority of the Commissioner under such laws;CommentsClose CommentsPermalink





(C) coordinating all efforts of the Department of Homeland Security to facilitate legitimate international trade and to enforce the customs and trade laws of the United States;CommentsClose CommentsPermalink





(D) coordinating, on behalf of the Department of Homeland Security, efforts among executive branch agencies to facilitate legitimate trade and to enforce the customs and trade laws of the United States, including--CommentsClose CommentsPermalink





(i) representing the Department of Homeland Security in interagency fora addressing such efforts; andCommentsClose CommentsPermalink





(ii) coordinating with the Director of U.S. Immigration and Customs Enforcement to develop and implement the Joint Strategic Plan;CommentsClose CommentsPermalink





(E) coordinating, on behalf of the United States, efforts with foreign customs agencies to facilitate legitimate international trade and to enforce the customs and trade laws of the United States and of foreign countries;CommentsClose CommentsPermalink





(F) collecting, assessing, and disseminating information as appropriate and in accordance with law, regarding cargo destined for the United States, to ensure that such cargo complies with the customs and trade laws of the United States and to facilitate the legitimate international trade of such cargo;CommentsClose CommentsPermalink





(G) soliciting and considering on a regular basis input from the private sector, including the Commercial Customs Operations Advisory Committee, the Trade Support Network, and other entities affected by the efforts of the Federal Government to facilitate legitimate international trade and to enforce the customs and trade laws of the United States, with respect to--CommentsClose CommentsPermalink





(i) the implementation of new or amended customs and trade laws of the United States; andCommentsClose CommentsPermalink





(ii) the development, implementation, or revision of policies or regulations administered by the U.S. Customs and Border Protection Agency; andCommentsClose CommentsPermalink





(H) otherwise advising the Secretary of Homeland Security with respect to the development of policies associated with facilitating legitimate international trade and enforcing the customs and trade laws of the United States.CommentsClose CommentsPermalink





(3) CUSTOMS AND TRADE LAWS OF THE UNITED STATES- The term ‘customs and trade laws of the United States’ includes the following:CommentsClose CommentsPermalink





(A) The Tariff Act of 1930.CommentsClose CommentsPermalink





(B) Section 249 of the Revised Statutes of the United States (19 U.S.C. 3).CommentsClose CommentsPermalink





(C) Section 2 of the Act of March 4, 1923 (19 U.S.C. 6).CommentsClose CommentsPermalink





(D) Section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c).CommentsClose CommentsPermalink





(E) Section 251 of the Revised Statutes of the United States (19 U.S.C. 66).CommentsClose CommentsPermalink





(F) Section 1 of the Act of June 26, 1930 (19 U.S.C. 68).CommentsClose CommentsPermalink





(G) The Foreign Trade Zones Act (19 U.S.C. 81a et seq.).CommentsClose CommentsPermalink





(H) Section 1 of the Act of March 2, 1911 (19 U.S.C. 198).CommentsClose CommentsPermalink





(I) The Trade Act of 1974.CommentsClose CommentsPermalink





(J) The Trade Agreements Act of 1979.CommentsClose CommentsPermalink





(K) The North American Free Trade Area Implementation Act.CommentsClose CommentsPermalink





(L) The Uruguay Round Agreements Act.CommentsClose CommentsPermalink





(M) The Caribbean Basin Economic Recovery Act.CommentsClose CommentsPermalink





(N) The Andean Trade Preference Act.CommentsClose CommentsPermalink





(O) The African Growth and Opportunity Act.CommentsClose CommentsPermalink





(P) The Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq.).CommentsClose CommentsPermalink





(Q) The Customs Enforcement Act of 1986 (Public Law 99-570; 100 Stat. 3207-79).CommentsClose CommentsPermalink





(R) The Customs and Trade Act of 1990 (Public Law 101-382; 104 Stat. 629).CommentsClose CommentsPermalink





(S) The Customs Procedural Reform and Simplification Act of 1978 (Public Law 95-410; 92 Stat. 888).CommentsClose CommentsPermalink





(T) The Trade Act of 2002 (Public Law 107-210; 116 Stat. 933).CommentsClose CommentsPermalink





(U) The Convention on Cultural Property Implementation Act (19 U.S.C. 2601 et seq.).CommentsClose CommentsPermalink





(V) The Act of August 7, 1939 (53 Stat. 1263, chapter 566; 19 U.S.C. 2077 et seq.).CommentsClose CommentsPermalink





(W) Any other provision of law vesting customs revenue functions in the Secretary of the Treasury.CommentsClose CommentsPermalink





(X) Any other provision of law relating to customs 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 established pursuant to section 411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)), as amended by section 204 of this Act.CommentsClose CommentsPermalink





(Y) Any other provision of customs or trade law administered by the U.S. Customs and Border Protection Agency.CommentsClose CommentsPermalink





(4) 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).CommentsClose CommentsPermalink





(5) IMPORTER- The term ‘importer’ means one of the parties qualifying as an importer of record under section 484(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 1484(a)(2)(B)).CommentsClose CommentsPermalink





(6) NONRESIDENT IMPORTER- The term ‘nonresident importer’ means an importer who is--CommentsClose CommentsPermalink





(A) an individual who is not a citizen of the United States or an alien lawfully admitted for permanent residence in the United States; orCommentsClose CommentsPermalink





(B) a partnership, corporation, or other commercial entity that is not organized under the laws of a jurisdiction within the customs territory of the United States (as such term is defined in General Note 2 of the Harmonized Tariff Schedule of the United States) or in the Virgin Islands of the United States.CommentsClose CommentsPermalink





(7) JOINT STRATEGIC PLAN- The term ‘Joint Strategic Plan’ means the plan required by section 131 of this Act.CommentsClose CommentsPermalink





(8) TRADE SUPPORT NETWORK- The term ‘Trade Support Network’ means representatives of the private sector that provide input on the design and development of modernization projects of the U.S. Customs and Border Protection Agency.CommentsClose CommentsPermalink

TITLE I--CUSTOMS FACILITATIONCommentsClose CommentsPermalink

Subtitle A--Functions Other Than Investigative FunctionsCommentsClose CommentsPermalink

SEC. 101. ESTABLISHMENT OF 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:CommentsClose CommentsPermalink

‘SEC. 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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(1) be appointed by the President, by and with the advice and consent of the Senate;CommentsClose CommentsPermalink





‘(2) carry out the duties described in subsection (c); andCommentsClose CommentsPermalink





‘(3) report directly to the Secretary of Homeland Security.CommentsClose CommentsPermalink





‘(c) Duties-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Commissioner shall--CommentsClose CommentsPermalink





‘(A) carry out the duties and powers prescribed by law or by the Secretary of Homeland Security;CommentsClose CommentsPermalink





‘(B) direct the administration of the commercial operations of the U.S. Customs and Border Protection Agency and the enforcement of the customs and trade laws of the United States; andCommentsClose CommentsPermalink





‘(C) otherwise safeguard the economic and homeland security interests of the United States at land borders and ports of entry.CommentsClose CommentsPermalink





‘(2) DEFINITIONS- In this subsection, the terms ‘commercial operations’ and ‘customs and trade laws of the United States’ have the meanings given such terms in section 2 of the Customs Trade Facilitation and Enforcement Act of 2012.CommentsClose CommentsPermalink





‘(d) Absence or Disability of Commissioner- The Deputy Commissioner of U.S. Customs and Border Protection, appointed pursuant to section 2, shall act as Commissioner of U.S. Customs and Border Protection during the absence or disability of the Commissioner of U.S. Customs and Border Protection, or in the event that there is no Commissioner of U.S. Customs and Border Protection.’.CommentsClose CommentsPermalink





(b) Administrative Continuity-CommentsClose CommentsPermalink





(1) IN GENERAL- The Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2073), is amended by striking section 3 and inserting the following:CommentsClose CommentsPermalink

‘SEC. 3. TRANSFER OF FUNCTIONS, ASSETS, LIABILITIES, AND DUTIES.

‘(a) In General- Effective on the date of the enactment of the Customs Trade Facilitation and Enforcement Act of 2012, the functions and associated personnel, assets, and liabilities, identified under section 411 of the Homeland Security Act of 2002 (6 U.S.C. 211) on the day before such date of enactment, are transferred to the U.S. Customs and Border Protection Agency.CommentsClose CommentsPermalink





‘(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 Customs Trade Facilitation and Enforcement Act of 2012 may serve as the Commissioner of the U.S. Customs and Border Protection Agency until the earlier of--CommentsClose CommentsPermalink





‘(1) the date on which such individual is no longer eligible to serve as Commissioner of Customs; orCommentsClose CommentsPermalink





‘(2) the date on which a person nominated by the President to be the Commissioner of U.S. Customs and Border Protection is confirmed by the Senate.’.CommentsClose CommentsPermalink





(2) REPEAL- Section 411 of the Homeland Security Act of 2002 (6 U.S.C. 211), and the item relating to that section in the table of contents for that Act, are repealed.CommentsClose CommentsPermalink





(c) Reference- On and after the effective date of this Act, any reference in law or regulations to the ‘Commissioner of Customs’ or the ‘Commissioner of the Customs Service’ shall be deemed to be a reference to the Commissioner of U.S. Customs and Border Protection established pursuant to section 1 of the Act of March 3, 1927, as amended by subsection (a) of this section.CommentsClose CommentsPermalink





(d) Compensation- 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’.CommentsClose CommentsPermalink

SEC. 102. OFFICERS AND EMPLOYEES.

(a) Deputy Commissioner- Section 2 of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072), is amended by striking subsection (a) and inserting the following:CommentsClose CommentsPermalink





‘(a) Deputy Commissioner-CommentsClose CommentsPermalink





‘(1) IN GENERAL- There shall be in the U.S. Customs and Border Protection Agency established by the first section, 1 Deputy Commissioner who shall be appointed by the President, by and with the advice and consent of the Senate.CommentsClose CommentsPermalink





‘(2) QUALIFICATIONS- A person appointed to be the Deputy Commissioner of U.S. Customs and Border Protection shall have a minimum of 10 years of professional experience in the operation of the customs and trade laws of the United States.CommentsClose CommentsPermalink





‘(3) DUTIES- The duties of the Deputy Commissioner shall include--CommentsClose CommentsPermalink





‘(A) overseeing the commercial operations of the U.S. Customs and Border Protection Agency, including the operations of the Office of International Trade and all other offices of the Agency whose duties primarily relate to the commercial operations of the Agency;CommentsClose CommentsPermalink





‘(B) resolving issues relating to the commercial operations of the U.S. Customs and Border Protection Agency, including liaising between offices primarily charged with carrying out the commercial operations of the Agency and any operational or port level office, including the Office of Field Operations or any successor office, in the administration of duties relating to the commercial operations of the Agency;CommentsClose CommentsPermalink





‘(C) overseeing the development and implementation information technology, research, and communication functions of the U.S. Border and Protection Agency that affect the commercial operations of the Agency, including 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));CommentsClose CommentsPermalink





‘(D) overseeing the customs revenue functions of the U.S. Customs and Border Protection Agency in consultation, as appropriate, with the Deputy Assistant Secretary for Tax, Trade, and Tariff Policy of the Department of the Treasury or any successor position;CommentsClose CommentsPermalink





‘(E) overseeing the administration of customs revenue functions of the U.S. Customs and Border Protection Agency; andCommentsClose CommentsPermalink





‘(F) consulting 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 administration of the commercial operations of the U.S. Customs and Border Protection Agency, including--CommentsClose CommentsPermalink





‘(i) 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 Agency are participating;CommentsClose CommentsPermalink





‘(ii) the resource needs of the Agency in relation to the commercial operations of the Agency;CommentsClose CommentsPermalink





‘(iii) any proposed changes to policy, regulations, interpretations, or practices that relate to commercial operations;CommentsClose CommentsPermalink





‘(iv) any legislative proposals that the Agency or the Department of Homeland Security provides to other committees of the Senate or the House of Representatives or individual members of such committees that relate to the commercial operations of the Agency; andCommentsClose CommentsPermalink





‘(v) the implementation of new or amended customs and trade laws of the United States.CommentsClose CommentsPermalink





‘(4) ABSENCE OR DISABILITY OF DEPUTY COMMISSIONER- The Assistant Commissioner of the Office of International Trade shall act as the Deputy Commissioner during the disability of the Deputy Commissioner, or in the event that there is no Deputy Commissioner.’.CommentsClose CommentsPermalink





(b) Trade Advocate- Section 2 of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072), as amended by subsection (a) of this section, is further amended by striking subsection (b) and inserting the following:CommentsClose CommentsPermalink





‘(b) Trade Advocate-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Commissioner shall appoint within the U.S. Customs and Border Protection Agency, a Trade Advocate, who shall report directly to the Commissioner.CommentsClose CommentsPermalink





‘(2) QUALIFICATIONS- A person appointed to be Trade Advocate shall have not less than 5 years experience working in international trade in the private sector.CommentsClose CommentsPermalink





‘(3) DUTIES- The Trade Advocate shall--CommentsClose CommentsPermalink





‘(A) serve as the primary liaison between the U.S. Customs and Border Protection Agency and the public with respect to the Agency’s administration of customs facilitation and trade enforcement functions;CommentsClose CommentsPermalink





‘(B) assist the Commissioner in resolving issues relating to the commercial operations of the Agency by effectively communicating the perspectives held by interested parties in the private sector and other private commercial interests;CommentsClose CommentsPermalink





‘(C) consult with interested parties in the private sector, the Commercial Customs Operations Advisory Committee, and the Trade Support Network, for their input with respect to the Agency’s--CommentsClose CommentsPermalink





‘(i) development and implementation of rules, regulations, decisions, and notices related to the customs and trade laws of the United States administered by the Agency;CommentsClose CommentsPermalink





‘(ii) development of the Joint Strategic Plan required under section 131 of the Customs Trade Facilitation and Enforcement Act of 2012;CommentsClose CommentsPermalink





‘(iii) assessment of the effectiveness of customs facilitation and trade enforcement efforts; andCommentsClose CommentsPermalink





‘(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));CommentsClose CommentsPermalink





‘(D) advise the Commissioner with respect to the consultations described in subparagraph (C); andCommentsClose CommentsPermalink





‘(E) otherwise consult with the public as directed by the Commissioner or by law.’.CommentsClose CommentsPermalink





(c) Other Officers- Section 2 of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072), as amended by subsections (a) and (b) of this section, is further amended by striking subsection (c) and inserting the following:CommentsClose CommentsPermalink





‘(c) Other Officers- The Secretary of Homeland Security 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 of such personnel shall be fixed in accordance with chapter 51 and subchapter III of chapter 53 of title 5, United States Code.’.CommentsClose CommentsPermalink





(d) Office of International Trade- Section 2(d) of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), is amended--CommentsClose CommentsPermalink





(1) in paragraph (1), by striking ‘United States Customs and Border Protection’ and inserting ‘U.S. Customs and Border Protection Agency’; andCommentsClose CommentsPermalink





(2) in paragraph (2)--CommentsClose CommentsPermalink





(A) in the heading, by striking ‘; ELIMINATION OF OFFICES’;CommentsClose CommentsPermalink





(B) by striking subparagraph (A) and inserting the following:CommentsClose CommentsPermalink





‘(A) OFFICE OF FIELD OPERATIONS-CommentsClose CommentsPermalink





‘(i) TRANSFER-CommentsClose CommentsPermalink





‘(I) IN GENERAL- Not later than 90 days after the date of enactment of the Customs Trade Enforcement and Facilitation Act of 2012, the Commissioner shall transfer to the Office of International Trade established pursuant to paragraph (1) the assets, functions (other than administrative functions), and personnel described in subclause (II) of the Office of Field Operations.CommentsClose CommentsPermalink





‘(II) PERSONNEL DESCRIBED- The personnel of the Office of Field Operations referred to in subclause (I) are the following:CommentsClose CommentsPermalink

‘(aa) Personnel having the statutory authority to classify and appraise goods entering the United States.CommentsClose CommentsPermalink

‘(bb) Personnel having the responsibility to act as principal point of contact and technical experts with respect to goods entering the United States, including responsibilities relating to collection and deposit of duties, taxes, and fees.CommentsClose CommentsPermalink

‘(cc) Such other personnel as the Commissioner determines to be necessary.CommentsClose CommentsPermalink

‘(ii) ASSISTANT COMMISSIONER IN THE OFFICE OF INTERNATIONAL TRADE- The assets, functions, and personnel transferred to the Office of International Trade pursuant to clause (i) shall be under the authority of the Assistant Commissioner in the Office of International Trade.CommentsClose CommentsPermalink





‘(iii) TRAINING- Not later than 18 months after the date of the enactment of the Customs Trade Enforcement and Facilitation Act of 2012, the Commissioner shall ensure that sufficient training with respect to facilitating legitimate international trade and enforcing the customs and trade laws of the United States has been provided to personnel transferred to the Office of International Trade pursuant to clause (i).CommentsClose CommentsPermalink





‘(iv) LIMITATION ON FUNDS- No funds appropriated to the U.S. Customs and Border Protection Agency may be used to transfer the assets, functions, or personnel of the Office of Field Operations to an office other than the Office of International Trade.’.CommentsClose CommentsPermalink





(C) by striking subparagraph (B);CommentsClose CommentsPermalink





(D) by redesignating subparagraphs (C) through (F) as subparagraphs (B) through (E), respectively;CommentsClose CommentsPermalink





(E) in subparagraph (B), as redesignated by subparagraph (D) of this paragraph, by striking ‘United States Customs and Border Protection’ and inserting ‘U.S. Customs and Border Protection Agency’; andCommentsClose CommentsPermalink





(F) in subparagraph (E), as redesignated by subparagraph (D) of this paragraph--CommentsClose CommentsPermalink





(i) by striking ‘United States Customs and Border Protection’ and inserting ‘U.S. Customs and Border Protection Agency’; andCommentsClose CommentsPermalink





(ii) by striking ‘subparagraph (E)(ii)’ and inserting ‘subparagraph (D)(ii)’.CommentsClose CommentsPermalink





(e) Definitions- Section 2(f) of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072) is amended to read as follows:CommentsClose CommentsPermalink





‘(f) Definitions- In this section--CommentsClose CommentsPermalink





‘(1) the term ‘Commissioner’ means the Commissioner of U.S. Customs and Border Protection; andCommentsClose CommentsPermalink





‘(2) the terms ‘Commercial Customs Operations Advisory Committee’, ‘commercial operations’, ‘customs and trade laws of the United States’, and ‘Trade Support Network’ have the meaning given such terms in section 2 of the Customs Trade Facilitation and Enforcement Act of 2012.’.CommentsClose CommentsPermalink





(f) Establishment of Interagency Customs Review Board- The Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq.), is amended by inserting after section 3 the following:CommentsClose CommentsPermalink

‘SEC. 4. ESTABLISHMENT OF INTERAGENCY CUSTOMS REVIEW BOARD.

‘(a) Establishment- There is established an interagency Customs Review Board.CommentsClose CommentsPermalink





‘(b) Membership- The interagency Customs Review Board shall be comprised of the Commissioner, the Assistant Secretary for Policy in the Department of Homeland Security, the Assistant Secretary for Tax Policy in the Department of the Treasury, the Under Secretary for International Trade in the Department of Commerce, and 1 Deputy United States Trade Representative designated by the United States Trade Representative to serve on the interagency Customs Review Board. The interagency Customs Review Board shall be co-chaired by the Commissioner and the Assistant Secretary for Tax Policy in the Department of the Treasury.CommentsClose CommentsPermalink





‘(c) Referral- The Commissioner of U.S. Customs and Border Protection shall notify and provide full documentation to the interagency Customs Review Board not less than 30 days prior to publically proposing any change to a regulation, interpretation, or practice of the Agency relating to commercial operations of the Agency that could reasonably be expected to affect compliance by the United States Government with its international trade obligations.CommentsClose CommentsPermalink





‘(d) Duties- The interagency Customs Review Board shall--CommentsClose CommentsPermalink





‘(1) review any proposed change to a regulation, interpretation, or practice of the Agency referred to the interagency Customs Review Board by the Commissioner under subsection (c) to determine if the change conforms to the international trade obligations of the United States; andCommentsClose CommentsPermalink





‘(2) advise the Commissioner of U.S. Customs and Border Protection, not later than 30 days after receiving notification of a proposed change under paragraph (1), as to whether or not and the extent to which the change conforms to the international trade obligations of the United States and other cross-border initiatives.CommentsClose CommentsPermalink





‘(e) Definition- In this section, the term ‘commercial operations’ has the meaning given the term in section 2 of the Customs Trade Facilitation and Enforcement Act of 2012.’.CommentsClose CommentsPermalink





(g) Compensation- Section 5315 of title 5, United States Code, is amended by adding at the end the following:CommentsClose CommentsPermalink





‘Deputy Commissioner of U.S. Customs and Border Protection, Department of Homeland Security.’.CommentsClose CommentsPermalink

SEC. 103. SEPARATE BUDGET 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, a separate budget request for the commercial operations of the U.S. Customs and Border Protection Agency.CommentsClose CommentsPermalink





(b) Repeal- Section 414 of the Homeland Security Act of 2002 (6 U.S.C. 214), and the item relating to that section in the table of contents of that Act, are repealed.CommentsClose CommentsPermalink

SEC. 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 ‘Bureau of Customs’ and inserting ‘U.S. Customs and Border Protection Agency’.CommentsClose CommentsPermalink

SEC. 105. ADVANCES IN FOREIGN COUNTRIES.

The matter under the heading ‘BUREAU OF CUSTOMS’ in title I of 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 U.S. Immigration and Customs Enforcement’.CommentsClose CommentsPermalink

SEC. 106. ADVANCES FOR ENFORCEMENT OF CUSTOMS PROVISIONS.

Section 2 of the Act entitled ‘An Act to provide for advances of funds by special disbursing agents in connection with the enforcement of Acts relating to narcotic drugs’, approved March 28, 1928 (19 U.S.C. 2077), is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 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 in 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 Customs Trade Facilitation and Enforcement Act of 2012).’.CommentsClose CommentsPermalink

SEC. 107. CERTIFICATION OF REASON FOR ADVANCE.

Section 3 of the Act of March 28, 1928 (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’.CommentsClose CommentsPermalink

SEC. 108. PAYMENTS IN FOREIGN COUNTRIES; CLAIMS FOR REIMBURSEMENT.

Section 4 of the Act of August 7, 1939 (53 Stat. 1263, chapter 566; 19 U.S.C. 2079), is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 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 U.S. Immigration and Customs Enforcement in foreign countries, or the right of any officer or employee of such Agencies 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 Customs Trade Facilitation and Enforcement Act of 2012).’.CommentsClose CommentsPermalink

SEC. 109. CUSTOMS ADMINISTRATION.

Section 113 of the Customs and Trade Act of 1990 (19 U.S.C. 2082) is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 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--CommentsClose CommentsPermalink





‘(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 U.S. Immigration and Customs Enforcement among the various operational functions of each Agency, including merchandise processing and customs and trade law enforcement; andCommentsClose CommentsPermalink





‘(2) for fiscal year 2013 and each subsequent fiscal year, develop and implement labor distribution surveys of major workforce activities within the U.S. Customs and Border Protection Agency and U.S. Immigration and Customs Enforcement 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.CommentsClose CommentsPermalink





‘(b) Survey Reports- The Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement shall each, not later than December 31, 2013, and December 31 of each subsequent calendar year, 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 surveys implemented under paragraph (2) of subsection (a) for the preceding fiscal year.’.CommentsClose CommentsPermalink

SEC. 110. DESIGNATION OF TRADE OVERSIGHT 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:CommentsClose CommentsPermalink





‘(c) Designation of Trade Oversight Personnel- Not later than 90 days after the date of the enactment of the Customs Trade Facilitation and Enforcement Act of 2012, the Secretary of the Treasury shall designate and dedicate not less than 5 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.’.CommentsClose CommentsPermalink

SEC. 111. 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--CommentsClose CommentsPermalink





(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’; andCommentsClose CommentsPermalink





(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,’.CommentsClose CommentsPermalink

SEC. 112. 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--CommentsClose CommentsPermalink





(1) in subsection (a)--CommentsClose CommentsPermalink





(A) in paragraph (1)--CommentsClose CommentsPermalink





(i) by striking ‘October 1, 1979’ and inserting ‘October 1, 2012’; andCommentsClose CommentsPermalink





(ii) by striking ‘Department of the Treasury for the United States Customs Service’ and inserting ‘Department of Homeland Security for the U.S. Customs and Border Protection Agency’;CommentsClose CommentsPermalink





(B) by striking paragraph (2) and inserting the following:CommentsClose CommentsPermalink





‘(2) REQUIREMENT FOR AUTHORIZATION- The authorization of the appropriations for the U.S. Customs and Border Protection Agency for each fiscal year after fiscal year 2012 shall specify the amount authorized for the fiscal year for the salaries and expenses of the Agency in conducting commercial operations.’; andCommentsClose CommentsPermalink





(C) by striking paragraph (3);CommentsClose CommentsPermalink





(2) by striking subsections (b), (c), and (d) and inserting the following:CommentsClose CommentsPermalink





‘(b) Authorization of Appropriations-CommentsClose CommentsPermalink





‘(1) IN GENERAL- 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--CommentsClose CommentsPermalink





‘(A) not less than $1,800,000,000 for fiscal year 2013;CommentsClose CommentsPermalink





‘(B) not less than $1,817,000,000 for fiscal year 2014; andCommentsClose CommentsPermalink





‘(C) not less than $1,830,000,000 for fiscal year 2015.CommentsClose CommentsPermalink





‘(2) CUSTOMS USER FEE ACCOUNT- The monies authorized to be appropriated pursuant to paragraph (1) 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 section 13031(a) (9) and (10) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a) (9) and (10)), shall be appropriated from the Customs User Fee Account.CommentsClose CommentsPermalink





‘(c) Mandatory 10-Day Deferment- No part of the funds appropriated under 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.CommentsClose CommentsPermalink





‘(d) 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 customs officer overtime pay in an amount exceeding $35,000 unless the Secretary of Homeland Security determines on an individual basis that payment of overtime pay to such officer in an amount exceeding $35,000 is necessary for national security purposes, to prevent excessive costs, or to meet emergency requirements of the Agency.’;CommentsClose CommentsPermalink





(3) in subsection (e)--CommentsClose CommentsPermalink





(A) by striking ‘October 1, 1982’ and inserting ‘October 1, 2012’;CommentsClose CommentsPermalink





(B) by striking ‘Department of the Treasury for salaries of the United States Customs Service’ and inserting ‘Department of Homeland Security for salaries of the U.S. Customs and Border Protection Agency’; andCommentsClose CommentsPermalink





(C) by striking ‘to reflect’ and all that follows and inserting ‘to reflect any adjustment in rates of basic pay made in accordance with subchapter I of chapter 53 of title 5, United States Code.’;CommentsClose CommentsPermalink





(4) by striking subsections (f) and (g) and inserting the following:CommentsClose CommentsPermalink





‘(f) 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 by increasing the number of personnel dedicated to administering such commercial operations.CommentsClose CommentsPermalink





‘(g) 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--CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(2) result in any significant reduction in hours of operation or services rendered at any office of the U.S. Customs and Border Protection Agency or any United States port of entry;CommentsClose CommentsPermalink





‘(3) eliminate or relocate any office of the U.S. Customs and Border Protection Agency;CommentsClose CommentsPermalink





‘(4) eliminate any United States port of entry; orCommentsClose CommentsPermalink





‘(5) significantly reduce the number of employees assigned to any office or any function of the U.S. Customs and Border Protection Agency.’; andCommentsClose CommentsPermalink





(5) by adding at the end the following:CommentsClose CommentsPermalink





‘(i) Definition- In this section, the term ‘commercial operations’ has the meaning given such term in section 2 of the Customs Trade Facilitation and Enforcement Act of 2012.’.CommentsClose CommentsPermalink





(b) Resource Optimization Model- Subsection (h) of section 301 of the Customs Procedural Reform and Simplification Act of 1978 is amended by striking ‘Resource Allocation Model’ each place it appears in the text and in the heading and inserting ‘Resource Optimization Model’.CommentsClose CommentsPermalink





(c) Conforming Amendment- Subsection (c) of section 5 of the Act of February 13, 1911 (19 U.S.C. 267(c)), is amended to read as follows:CommentsClose CommentsPermalink





‘(c) Limitations-CommentsClose CommentsPermalink





‘(1) FISCAL YEAR CAP- The aggregate of overtime pay under subsection (a) of this section (including commuting compensation under subsection (a)(2)(B) of this section) and premium pay under subsection (b) of this section that a customs officer may be paid in any fiscal year may not exceed $35,000 unless the Secretary of Homeland Security determines on an individual basis that payment of overtime pay to such officer in an amount exceeding $35,000 is necessary for national security purposes, to prevent excessive costs, or to meet emergency requirements of the Agency.CommentsClose CommentsPermalink





‘(2) EXCLUSIVITY OF PAY UNDER THIS SECTION- A customs officer who receives overtime pay under subsection (a) of this section, or premium pay under subsection (b) of this section for time worked, may not receive pay or other compensation for that work under any other provision of law.’.CommentsClose CommentsPermalink

Subtitle B--Investigative FunctionsCommentsClose CommentsPermalink

SEC. 121. SEPARATE BUDGET FOR U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT.

The President shall include in each budget transmitted to Congress under section 1105 of title 31, United States Code, a separate budget request of U.S. Immigration and Customs Enforcement for the enforcement of the customs and trade laws of the United States.CommentsClose CommentsPermalink

SEC. 122. 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:CommentsClose CommentsPermalink

‘SEC. 302. AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN CUSTOMS ENFORCEMENT ACTIVITIES.

‘(a) In General-CommentsClose CommentsPermalink





‘(1) FISCAL YEARS BEGINNING ON OR AFTER OCTOBER 1, 2012- For the fiscal year beginning October 1, 2012, and each fiscal year thereafter, there are authorized to be appropriated to the U.S. Immigration and Customs Enforcement of the Department of Homeland Security for the enforcement of the customs and trade laws of the United States only such sums as may be authorized by law.CommentsClose CommentsPermalink





‘(2) SPECIFICATION OF AMOUNTS- The authorization of the appropriations for the U.S. Immigration and Customs Enforcement for each fiscal year after fiscal year 2012 shall specify the amount authorized for the fiscal year for the salaries and expenses of U.S. Immigration and Customs Enforcement for the enforcement of the customs and trade laws of the United States.CommentsClose CommentsPermalink





‘(b) Authorization of Appropriations- There are authorized to be appropriated for the salaries and expenses of the U.S. Immigration and Customs Enforcement that are incurred in enforcement of the customs and trade laws of the United States--CommentsClose CommentsPermalink





‘(1) not less than $86,000,000 for fiscal year 2013;CommentsClose CommentsPermalink





‘(2) not less than $88,150,000 for fiscal year 2014; andCommentsClose CommentsPermalink





‘(3) not less than $90,200,000 for fiscal year 2015.CommentsClose CommentsPermalink





‘(c) Definition- In this section, the term ‘customs and trade laws of the United States’ has the meaning given such term in section 2 of the Customs Trade Facilitation and Enforcement Act of 2012.’.CommentsClose CommentsPermalink

Subtitle C--Joint Strategic PlanCommentsClose CommentsPermalink

SEC. 131. JOINT STRATEGIC PLAN.

(a) In General- Not later than June 30, 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.CommentsClose CommentsPermalink





(b) Contents- The Joint Strategic Plan required under this section shall be comprised of a comprehensive multi-year plan for enforcing the customs and trade laws of the United States and for facilitating the international trade of the United States, and shall include--CommentsClose CommentsPermalink





(1) a summary of actions taken to date to better enforce the customs and trade laws of the United States and to better facilitate the international trade of the United States, including a description and analysis of specific performance measures to evaluate the progress of the U.S. Customs and Border Protection Agency and U.S. Immigration and Customs Enforcement in meeting each such responsibility;CommentsClose CommentsPermalink





(2) a statement of objectives and plans for further improving the enforcement of the customs and trade laws of the United States and the facilitation of the international trade of the United States;CommentsClose CommentsPermalink





(3) a specific identification of the priority trade issues described in paragraph (3)(B)(ii) of section 2(d) of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), as added by section 211(a) of this Act;CommentsClose CommentsPermalink





(4) a description of efforts made to improve consultation and coordination among Federal departments and agencies, and in particular between the U.S. Customs and Border Protection Agency and U.S. Immigration and Customs Enforcement, regarding the enforcement of the customs and trade laws of the United States and the facilitation of the international trade of the United States;CommentsClose CommentsPermalink





(5) a description of the training that has occurred to date within the U.S. Customs and Border Protection Agency and U.S. Immigration and Customs Enforcement to improve such enforcement and facilitation, including training under section 217 of this Act;CommentsClose CommentsPermalink





(6) a specific identification of any domestic or international best practices that may further improve such enforcement and facilitation; andCommentsClose CommentsPermalink





(7) any legislative recommendations to further improve such enforcement of the customs and trade laws of the United States or facilitation.CommentsClose CommentsPermalink





(c) Consultations-CommentsClose CommentsPermalink





(1) IN GENERAL- In developing the Joint Strategic Plan required under this section, the Commissioner and the Director shall consult with--CommentsClose CommentsPermalink





(A) appropriate officials from the relevant Federal departments and agencies, including--CommentsClose CommentsPermalink





(i) the Department of the Treasury;CommentsClose CommentsPermalink





(ii) the Department of Agriculture;CommentsClose CommentsPermalink





(iii) the Department of Commerce;CommentsClose CommentsPermalink





(iv) the Department of Justice;CommentsClose CommentsPermalink





(v) the Department of the Interior;CommentsClose CommentsPermalink





(vi) the Department of Health and Human Services;CommentsClose CommentsPermalink





(vii) the Food and Drug Administration;CommentsClose CommentsPermalink





(viii) the Consumer Product Safety Commission; andCommentsClose CommentsPermalink





(ix) the Office of the United States Trade Representative; andCommentsClose CommentsPermalink





(B) the Commercial Customs Operations Advisory Committee (established in section 202 of this Act).CommentsClose CommentsPermalink





(2) OTHER CONSULTATIONS- In developing the Joint Strategic Plan required under this section, the Commissioner and the Director shall seek to consult with--CommentsClose CommentsPermalink





(A) appropriate officials from relevant foreign law enforcement agencies and international organizations, including the World Customs Organization; andCommentsClose CommentsPermalink





(B) interested parties in the private sector.CommentsClose CommentsPermalink

TITLE II--CUSTOMS FACILITATION, TRADE ENFORCEMENT, AND TRANSPARENCYCommentsClose CommentsPermalink

Subtitle A--Customs Facilitation and TransparencyCommentsClose CommentsPermalink

SEC. 201. CONSULTATIONS WITH RESPECT TO MUTUAL RECOGNITION AGREEMENTS.

The Secretary of Homeland Security, with respect to any proposed Mutual Recognition Arrangement or similar agreement between the United States and a foreign government providing for mutual recognition of supply chain security programs and customs revenue functions, shall--CommentsClose CommentsPermalink





(1) consult, not later than 30 days before initiating negotiations to enter into any such agreement, with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives; andCommentsClose CommentsPermalink





(2) consult, not later than 30 days before entering into any such agreement, with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives.CommentsClose CommentsPermalink

SEC. 202. COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE.

(a) Establishment- Not later than 60 days after the date of enactment of this Act, the Secretary of the Treasury and the Secretary of Homeland Security shall jointly establish a Commercial Customs Operations Advisory Committee (in this section referred to as the ‘Advisory Committee’).CommentsClose CommentsPermalink





(b) Membership-CommentsClose CommentsPermalink





(1) IN GENERAL- The Advisory Committee shall be comprised of--CommentsClose CommentsPermalink





(A) 20 individuals appointed under paragraph (2);CommentsClose CommentsPermalink





(B) the Assistant Secretary for Tax Policy of the Department of the Treasury and the Assistant Secretary of Policy and Planning of the Department of Homeland Security, who shall jointly co-chair meetings of the Advisory Committee; andCommentsClose CommentsPermalink





(C) the Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement, who shall serve as deputy co-chairs of meetings of the Advisory Committee.CommentsClose CommentsPermalink





(2) APPOINTMENT-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary of the Treasury and the Secretary of Homeland Security shall jointly appoint 20 individuals from the private sector to the Advisory Committee.CommentsClose CommentsPermalink





(B) REQUIREMENTS- In making appointments under subparagraph (A), the Secretary of the Treasury and the Secretary of Homeland Security shall appoint members--CommentsClose CommentsPermalink





(i) to ensure that the membership of the Advisory Committee is representative of the individuals and firms affected by the commercial operations of the U.S. Customs and Border Protection Agency; andCommentsClose CommentsPermalink





(ii) to ensure that a majority of the individuals are not members of the same political party.CommentsClose CommentsPermalink





(c) Duties- The Advisory Committee established under subsection (a) shall--CommentsClose CommentsPermalink





(1) advise the Secretary of the Treasury and the Secretary of Homeland Security on matters involving the commercial operations of the U.S. Customs and Border Protection Agency and U.S. Immigration and Customs Enforcement, including advising with respect to significant changes that are proposed with respect to agency regulations, policies, or practices;CommentsClose CommentsPermalink





(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 U.S. Immigration and Customs Enforcement; andCommentsClose CommentsPermalink





(3) perform such other functions relating to the commercial operations of the U.S. Customs and Border Protection Agency and U.S. Immigration and Customs Enforcement as prescribed by law or as the Secretary of the Treasury and the Secretary of Homeland Security jointly direct.CommentsClose CommentsPermalink





(d) Meetings- The Advisory Committee shall meet at the call of the Secretary of the Treasury and the Secretary of Homeland Security.CommentsClose CommentsPermalink





(e) 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--CommentsClose CommentsPermalink





(1) describes the activities of the Advisory Committee during the preceding fiscal year; andCommentsClose CommentsPermalink





(2) sets forth any recommendations of the Advisory Committee regarding the commercial operations of the U.S. Customs and Border Protection Agency and U.S. Immigration and Customs Enforcement.CommentsClose CommentsPermalink





(f) Termination- Section 14(a)(2)(B) of the Federal Advisory Committee Act (5 U.S.C. App.; relating to the termination of advisory committees) shall not apply to the Advisory Committee.CommentsClose CommentsPermalink





(g) Conforming Amendment-CommentsClose CommentsPermalink





(1) IN GENERAL- Effective on the date on which the Advisory Committee is established under subsection (a), section 9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) is repealed.CommentsClose CommentsPermalink





(2) REFERENCE- Any reference in law to the Advisory Committee on Commercial Operations of the United States Customs Service established under section 9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) made on or after the date on which the Advisory Committee is established under subsection (a), shall be deemed a reference to the Commercial Customs Operations Advisory Committee established under subsection (a).CommentsClose CommentsPermalink

SEC. 203. 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--CommentsClose CommentsPermalink





(1) in subparagraph (A)--CommentsClose CommentsPermalink





(A) by striking ‘2003, 2004, and 2005’ and inserting ‘2013, 2014, and 2015’; andCommentsClose CommentsPermalink





(B) by striking ‘$350,000,000’ and inserting ‘$700,242,000’; andCommentsClose CommentsPermalink





(2) in subparagraph (B)--CommentsClose CommentsPermalink





(A) by striking ‘2003 through 2005’ and inserting ‘2013 through 2015’;CommentsClose CommentsPermalink





(B) by striking ‘such amounts as are available in that Account’ and inserting ‘not less than $138,794,000’; andCommentsClose CommentsPermalink





(C) by striking ‘for the development’ and inserting ‘to complete the development’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(3) REPORT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Not later than December 31, 2012, 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 specifying--CommentsClose CommentsPermalink





‘(i) the plans of the U.S. Customs and Border Protection Agency and 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 section 411(d)(4)(A)(iii) of the Tariff Act of 1930;CommentsClose CommentsPermalink





‘(ii) the Agency’s remaining priorities for incorporating entry summary data elements, cargo manifest data elements, cargo financial data elements, and export elements into the Automated Commercial Environment computer system; andCommentsClose CommentsPermalink





‘(iii) the Agency’s objectives, plans, and deadlines for implementing the priorities identified under clause (ii) not later than September 30, 2015.CommentsClose CommentsPermalink





‘(B) UPDATE OF REPORTS- Not later than December 31, 2014, and September 30, 2015, 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).’.CommentsClose CommentsPermalink





(c) Government Accountability Office Report- Not later than December 31, 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--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(2) assessing the extent to which any additional functionality may be added into the Automated Commercial Environment computer system at a reasonable cost; andCommentsClose CommentsPermalink





(3) assessing the potential cost savings to the United States Government and importers and exporters and the potential benefits to enforcement of the customs and trade laws of the United States if the elements identified in clauses (i) and (ii) of section 311(b)(3)(A) of the Customs Border Security Act of 2002, as amended by subsection (b) of this section, are implemented.CommentsClose CommentsPermalink

SEC. 204. INTERNATIONAL TRADE DATA SYSTEM.

Section 411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (1), by adding at the end the following:CommentsClose CommentsPermalink





‘(F) PROHIBITION ON OTHER SYSTEMS FOR CARGO CLEARANCE- The Secretary shall ensure that each agency that participates in the ITDS use the ITDS to collect and distribute data and documentation for clearing or licensing the importation or exportation of cargo, including to authorize the release of cargo by the U.S. Customs and Border Protection Agency, and does not use any other system for such purposes.’;CommentsClose CommentsPermalink





(2) by redesignating paragraphs (4) through (7) as paragraphs (5) through (8), respectively;CommentsClose CommentsPermalink





(3) by inserting after paragraph (3) the following:CommentsClose CommentsPermalink





‘(4) INFORMATION TECHNOLOGY INFRASTRUCTURE- The head of each Federal agency that requires documentation for clearing or licensing the importation and exportation of cargo shall--CommentsClose CommentsPermalink





‘(A) develop and maintain the necessary information technology infrastructure to support the operation of the ITDS;CommentsClose CommentsPermalink





‘(B) not later than March 31, 2013, enter into a memorandum of understanding, or take 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; andCommentsClose CommentsPermalink





‘(C) not later than March 31, 2013, identify and transmit 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.’;CommentsClose CommentsPermalink





(4) in paragraph (5), as redesignated, by striking ‘each fiscal year’ and inserting ‘each of the fiscal years 2010 through 2013’; andCommentsClose CommentsPermalink





(5) in paragraph (8), as redesignated, by striking ‘section 9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note)’ and inserting ‘section 202 of the Customs Trade Facilitation and Enforcement Act of 2012’.CommentsClose CommentsPermalink

Subtitle B--Trade EnforcementCommentsClose CommentsPermalink

CHAPTER 1--COMMERCIAL RISK ASSESSMENT TARGETING

SEC. 211. COMMERCIAL TARGETING DIVISION AND NATIONAL TARGETING AND ANALYSIS GROUPS.

(a) In General- Section 2(d) of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), as amended by section 102(d) of this Act, is further amended by adding at the end the following:CommentsClose CommentsPermalink





‘(3) COMMERCIAL TARGETING DIVISION AND NATIONAL TARGETING AND ANALYSIS GROUPS-CommentsClose CommentsPermalink





‘(A) ESTABLISHMENT OF COMMERCIAL TARGETING DIVISION-CommentsClose CommentsPermalink





‘(i) IN GENERAL- The Secretary of Homeland Security shall establish and maintain within the Office of International Trade a Commercial Targeting Division.CommentsClose CommentsPermalink





‘(ii) COMPOSITION- The Commercial Targeting Division shall be composed of--CommentsClose CommentsPermalink





‘(I) headquarters personnel led by an Executive Director, who shall report to the Assistant Commissioner of the Office of International Trade; andCommentsClose CommentsPermalink





‘(II) individual National Targeting and Analysis Groups, each led by a Director who shall report to the Executive Director of the Commercial Targeting Division.CommentsClose CommentsPermalink





‘(iii) DUTIES- The Commercial Targeting Division shall be dedicated--CommentsClose CommentsPermalink





‘(I) to the development and conduct of commercial risk assessment targeting with respect to cargo destined for the United States in accordance with subparagraph (C); andCommentsClose CommentsPermalink





‘(II) to issuing Trade Alerts described in subparagraph (D).CommentsClose CommentsPermalink





‘(B) NATIONAL TARGETING AND ANALYSIS GROUPS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- A National Targeting and Analysis Group referred to in subparagraph (A)(ii)(II) shall, at a minimum, be established for each priority trade issue described in clause (ii).CommentsClose CommentsPermalink





‘(ii) PRIORITY TRADE ISSUES-CommentsClose CommentsPermalink





‘(I) IN GENERAL- The priority trade issues described in this clause are the following:CommentsClose CommentsPermalink

‘(aa) Agriculture programs.CommentsClose CommentsPermalink

‘(bb) Antidumping and countervailing duties.CommentsClose CommentsPermalink

‘(cc) Import safety.CommentsClose CommentsPermalink

‘(dd) Intellectual property rights.CommentsClose CommentsPermalink

‘(ee) Penalties.CommentsClose CommentsPermalink

‘(ff) Revenue.CommentsClose CommentsPermalink

‘(gg) Textiles.CommentsClose CommentsPermalink

‘(hh) Trade agreements.CommentsClose CommentsPermalink

‘(II) MODIFICATION- The Commissioner is authorized to establish new priority trade issues and eliminate, consolidate, or otherwise modify the priority trade issues described in this paragraph if the Commissioner--CommentsClose CommentsPermalink

‘(aa) determines it necessary and appropriate to do so; andCommentsClose CommentsPermalink

‘(bb) submits to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a summary of the proposed changes to the priority trade issues not later than 60 days before such changes are to take effect.CommentsClose CommentsPermalink

‘(iii) DUTIES- The duties of each National Targeting and Analysis Group shall include--CommentsClose CommentsPermalink





‘(I) directing the trade enforcement and compliance assessment activities of the U.S. Customs and Border Protection Agency that relate to the Group’s priority trade issue;CommentsClose CommentsPermalink





‘(II) facilitating, promoting, and coordinating cooperation and the exchange of information between the U.S. Customs and Border Protection Agency, U.S. Immigration and Customs Enforcement, and other relevant Federal departments and agencies regarding the Group’s priority trade issue; andCommentsClose CommentsPermalink





‘(III) serving as the primary liaison between the U.S. Customs and Border Protection Agency and the public regarding United States Government activities regarding the Group’s priority trade issue, including--CommentsClose CommentsPermalink

‘(aa) providing for receipt and transmission to the appropriate U.S. Customs and Border Protection Agency office of allegations from interested parties in the private sector of violations of customs and trade laws of the United States of merchandise relating to the priority trade issue;CommentsClose CommentsPermalink

‘(bb) obtaining information from the appropriate U.S. Customs and Border Protection Agency office on the status of any activities resulting from the submission of any such allegation, including any decision not to pursue the allegation, and providing any such information to each interested party in the private sector that submitted the allegation every 90 days after the allegation was received by the U.S. Customs and Border Protection Agency; andCommentsClose CommentsPermalink

‘(cc) notifying on a timely basis each interested party in the private sector that submitted such allegation of any civil or criminal actions taken by the U.S. Customs and Border Protection Agency or other Federal department or agency resulting from the allegation.CommentsClose CommentsPermalink

‘(C) COMMERCIAL RISK ASSESSMENT TARGETING- In carrying out its duties with respect to commercial risk assessment targeting, the Commercial Targeting Division shall--CommentsClose CommentsPermalink





‘(i) establish targeted risk assessment methodologies and standards--CommentsClose CommentsPermalink





‘(I) for evaluating the risk that cargo destined for the United States may violate the customs and trade laws of the United States, particularly those laws applicable to merchandise subject to the priority trade issues described in subparagraph (B)(ii); andCommentsClose CommentsPermalink





‘(II) for issuing, as appropriate, Trade Alerts described in subparagraph (D); andCommentsClose CommentsPermalink





‘(ii) to the extent practicable and otherwise authorized by law, use 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, and the Treasury Enforcement Communications System, and any successor systems, to administer the methodologies and standards established under clause (i).CommentsClose CommentsPermalink





‘(D) TRADE ALERTS-CommentsClose CommentsPermalink





‘(i) ISSUANCE- Based upon the application of the targeted risk assessment methodologies and standards established under subparagraph (C), the Executive Director of the Commercial Targeting Division and the Directors of the National Targeting and Analysis Groups may issue Trade Alerts to directors of United States ports of entry directing further inspection, or physical examination or testing, of specific merchandise to ensure compliance with all applicable customs and trade laws and regulations administered by the U.S. Customs and Border Protection Agency.CommentsClose CommentsPermalink





‘(ii) DETERMINATIONS NOT TO IMPLEMENT TRADE ALERTS- The director of a United States port of entry may determine not to conduct further inspections, or physical examination or testing, pursuant to a Trade Alert issued under clause (i) if--CommentsClose CommentsPermalink





‘(I) the director finds that such a determination is justified by port security interests; andCommentsClose CommentsPermalink





‘(II) notifies the Assistant Commissioner of the Office of Field Operations of the U.S. Customs and Border Protection Agency of the determination and the reasons for the determination not later than 48 hours after making the determination.CommentsClose CommentsPermalink





‘(iii) SUMMARY OF DETERMINATIONS NOT TO IMPLEMENT- The Assistant Commissioner of the Office of Field Operations of the U.S. Customs and Border Protection Agency shall--CommentsClose CommentsPermalink





‘(I) compile an annual public summary of all determinations by directors of United States ports of entry under clause (ii) and the reasons for those determinations; andCommentsClose CommentsPermalink





‘(II) submit the summary 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.CommentsClose CommentsPermalink





‘(iv) INSPECTION DEFINED- In this subparagraph, 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--CommentsClose CommentsPermalink





‘(I) assessing duties;CommentsClose CommentsPermalink





‘(II) identifying restricted or prohibited items; andCommentsClose CommentsPermalink





‘(III) ensuring compliance with all applicable customs and trade laws and regulations administered by the Agency.’.CommentsClose CommentsPermalink





(b) Use of Trade Data for Commercial Enforcement Purposes- Section 343(a) of the Trade Act of 2002 (19 U.S.C. 2071 note) is amended--CommentsClose CommentsPermalink





(1) in the first sentence of paragraph (2), by inserting ‘and to carry out commercial risk assessment targeting (as described in 2(d)(3)(C) of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)))’ after ‘to ensure cargo safety and security’; andCommentsClose CommentsPermalink





(2) in paragraph (3)--CommentsClose CommentsPermalink





(A) by striking subparagraph (F); andCommentsClose CommentsPermalink





(B) by redesignating subparagraphs (G) through (L) as subparagraphs (F) through (K).CommentsClose CommentsPermalink

SEC. 212. CENTERS OF EXCELLENCE AND EXPERTISE.

Section 2(d) of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), as amended by sections 102(d) and 211 of this Act, is further amended by adding at the end the following:CommentsClose CommentsPermalink





‘(4) CENTERS OF EXCELLENCE AND EXPERTISE-CommentsClose CommentsPermalink





‘(A) ESTABLISHMENT- The Secretary of Homeland Security is authorized to establish and maintain within the Office of International Trade Centers of Excellence and Expertise.CommentsClose CommentsPermalink





‘(B) COMPOSITION- Each Center of Excellence and Expertise shall be composed of headquarters and field personnel of the U.S. Customs and Border Protection Agency led by an Executive Director, who shall report to the Assistant Commissioner of the Office of International Trade.CommentsClose CommentsPermalink





‘(C) DUTIES- Each Center of Excellence and Expertise shall be dedicated--CommentsClose CommentsPermalink





‘(i) to facilitating legitimate trade through increasing specific industry knowledge and uniformity of cargo clearance procedures;CommentsClose CommentsPermalink





‘(ii) to improving enforcement efforts of priority trade issues described in paragraph (3)(B)(ii) in specific industry sectors through application of targeting information from the Commercial Targeting Division established under paragraph (3)(A) and from other means of verifications;CommentsClose CommentsPermalink





‘(iii) to developing and implementing measurable benefits to the trade community;CommentsClose CommentsPermalink





‘(iv) to fostering partnerships through the expansion of trade programs such as Importer Self Assessment program and other trusted partner programs;CommentsClose CommentsPermalink





‘(v) to developing applicable performance measurements to meet internal efficiency and effectiveness goals; andCommentsClose CommentsPermalink





‘(vi) to increasing the accuracy and completeness of international trade data and facilitate a more efficient flow of information between Federal departments and agencies.’.CommentsClose CommentsPermalink

SEC. 213. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND ENFORCEMENT MEASURES.

(a) Contents of Report- The Inspector General of the Department of Homeland Security shall, at the times specified in subsection (b), 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, with respect to the 2-fiscal-year period to which the report applies:CommentsClose CommentsPermalink





(1) The effectiveness of the measures taken by the U.S. Customs and Border Protection Agency with respect to revenue protection, including--CommentsClose CommentsPermalink





(A) the collection of countervailing and antidumping duties;CommentsClose CommentsPermalink





(B) the assessment and collection of commercial fines and penalties; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) The effectiveness of actions taken by the U.S. Customs and Border Protection Agency to measure accountability and performance with respect to revenue protection.CommentsClose CommentsPermalink





(3) The number and outcome of investigations instituted by the U.S. Customs and Border Protection Agency with respect to the underpayment of duties.CommentsClose CommentsPermalink





(4) The adequacy of training with respect to the collection of duties provided for personnel of the U.S. Customs and Border Protection Agency.CommentsClose CommentsPermalink





(b) Timing of Report- The report under subsection (a) shall be submitted not later than March 31, 2014, and not later than March 31 of each second year thereafter, with respect to the 2-fiscal-year period ending on September 30 of the preceding calendar year.CommentsClose CommentsPermalink

SEC. 214. REPORT ON SECURITY AND REVENUE MEASURES WITH RESPECT TO MERCHANDISE TRANSPORTED IN BOND.

(a) In General- Not later than December 31 of 2013, 2014, and 2015 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.CommentsClose CommentsPermalink





(b) Contents- The report required by subsection (a) shall include information, for the fiscal year preceding the submission of the report, on--CommentsClose CommentsPermalink





(1) the overall number of entries of merchandise for transportation in bond through the United States;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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 re-exported;CommentsClose CommentsPermalink





(4) the average time taken to transport merchandise in bond from the port at which the merchandise arrives in the United States to its final destination in the United States;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(6) the total number of notifications by carriers of merchandise being transported in bond that the destination of the merchandise has changed; andCommentsClose CommentsPermalink





(7) the number of entries that remain unreconciled.CommentsClose CommentsPermalink

SEC. 215. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT ACTIVITIES.

(a) In General- Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on the effectiveness of trade enforcement activities of the U.S. Customs and Border Protection Agency.CommentsClose CommentsPermalink





(b) Contents- The report shall include--CommentsClose CommentsPermalink





(1) a description of the use of resources, results of audits and verifications, targeting, organization, and training of the U.S. Customs and Border Protection Agency; andCommentsClose CommentsPermalink





(2) a description of trade enforcement activities to address undervaluation, transshipment, legitimacy of entities making entry, protection of revenues, fraud prevention and detection, and penalties, including intentional misclassification, inadequate bonding, and other misrepresentations.CommentsClose CommentsPermalink

SEC. 216. PRIORITIES AND PERFORMANCE STANDARDS FOR CUSTOMS MODERNIZATION, TRADE FACILITATION, AND TRADE ENFORCEMENT FUNCTIONS AND PROGRAMS.

(a) Priorities and Performance Standards-CommentsClose CommentsPermalink





(1) IN GENERAL- The Commissioner of U.S. Customs and Border Protection, in consultation with the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate, shall establish priorities and performance standards to measure the development and levels of achievement of the Customs modernization, trade facilitation, and trade enforcement functions and programs described in subsection (b).CommentsClose CommentsPermalink





(2) MINIMUM PRIORITIES AND STANDARDS- Such priorities and performance standards shall, at a minimum, include priorities and standards relating to efficiency, outcome, output, and other types of applicable measures.CommentsClose CommentsPermalink





(b) Functions and Programs Described- The functions and programs referred to in subsection (a) are the following:CommentsClose CommentsPermalink





(1) 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)).CommentsClose CommentsPermalink





(2) Each of the priority trade issues described in paragraph (3)(B)(ii) of section 2(d) of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), as added by section 211(a) of this Act.CommentsClose CommentsPermalink





(3) The Centers of Excellence and Expertise described in section 212(c) of this Act.CommentsClose CommentsPermalink





(4) Drawback for exported merchandise under section 313 of the Tariff Act of 1930 (19 U.S.C. 1313), as amended by section 404 of this Act.CommentsClose CommentsPermalink





(5) Transactions relating to imported merchandise in bond.CommentsClose CommentsPermalink





(6) Collection of countervailing duties assessed under subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) and antidumping duties assessed under subtitle B of title VII of the Tariff Act of 1930 (19 U.S.C. 1673 et seq.).CommentsClose CommentsPermalink





(7) The expedited clearance of cargo.CommentsClose CommentsPermalink





(8) The issuance of regulations and rulings.CommentsClose CommentsPermalink





(9) The issuance of Regulatory Audit Reports.CommentsClose CommentsPermalink





(c) Submission to Congress-CommentsClose CommentsPermalink





(1) IN GENERAL- The Commissioner of U.S. Customs and Border Protection shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a description of the priorities and performance standards referred to in subsection (a) not later than 180 days after the date of enactment of this Act.CommentsClose CommentsPermalink





(2) PROPOSED CHANGES- The Commissioner of U.S. Customs and Border Protection shall submit to the congressional committees referred to in paragraph (1) a description of any changes to the priorities and performance standards referred to in subsection (a) not later than 30 days before such changes are to take effect.CommentsClose CommentsPermalink





(d) Report- Not later than December 31, 2013, and December 31 of each year thereafter, the Commissioner of U.S. Customs and Border Protection shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on the implementation of this section for the previous fiscal year.CommentsClose CommentsPermalink

SEC. 217. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS TO CLASSIFY AND APPRAISE IMPORTED ARTICLES AND TO IMPROVE TRADE ENFORCEMENT EFFORTS.

(a) In General-CommentsClose CommentsPermalink





(1) ESTABLISHMENT- The Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement shall establish and carry out on a fiscal year basis educational seminars to--CommentsClose CommentsPermalink





(A) improve the ability of U.S. Customs and Border Protection Agency personnel to classify and appraise articles imported into the United States in accordance with the customs and trade laws of the United States; andCommentsClose CommentsPermalink





(B) improve the trade enforcement efforts of U.S. Customs and Border Protection Agency personnel and U.S. Immigration and Customs Enforcement personnel.CommentsClose CommentsPermalink





(2) LOCATION- Each educational seminar under this section shall be located at a United States port of entry or a Center of Excellence and Expertise described in section 212(c) of this Act.CommentsClose CommentsPermalink





(b) Content-CommentsClose CommentsPermalink





(1) CLASSIFYING AND APPRAISING IMPORTED ARTICLES- In carrying out subsection (a)(1)(A), the Commissioner, the Director, and interested parties in the private sector selected under subsection (c) shall provide instruction and related instructional materials at each educational seminar under this section to U.S. Customs and Border Protection Agency personnel and, as appropriate, to U.S. Immigration and Customs Enforcement Agency personnel on the following:CommentsClose CommentsPermalink





(A) Conducting a physical inspection of an article imported into the United States, including testing of samples of the article, to determine if the article is mislabeled in the manifest or other accompanying documentation.CommentsClose CommentsPermalink





(B) Reviewing the manifest and other accompanying documentation of an article imported into the United States to determine if the country of origin of the article listed in the manifest or other accompanying documentation is accurate.CommentsClose CommentsPermalink





(C) Customs valuation.CommentsClose CommentsPermalink





(D) Industry supply chains and other related matters as determined to be appropriate by the Commissioner.CommentsClose CommentsPermalink





(2) TRADE ENFORCEMENT EFFORTS- In carrying out subsection (a)(1)(B), the Commissioner, the Director, and interested parties in the private sector selected under subsection (c) shall provide instruction and related instructional materials at each educational seminar under this section to U.S. Customs and Border Protection Agency personnel and, as appropriate, to U.S. Immigration and Customs Enforcement Agency personnel to identify opportunities to enhance enforcement of the following:CommentsClose CommentsPermalink





(A) Collection of countervailing duties assessed under subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) and antidumping duties assessed under subtitle B of title VII of the Tariff Act of 1930 (19 U.S.C. 1673 et seq.).CommentsClose CommentsPermalink





(B) Addressing evasion of duties on imports of textiles.CommentsClose CommentsPermalink





(C) Protection of intellectual property rights.CommentsClose CommentsPermalink





(D) Enforcement of child labor laws.CommentsClose CommentsPermalink





(3) APPROVAL OF COMMISSIONER AND DIRECTOR- The instruction and related instructional materials at each educational seminar under this section shall be subject to the approval of the Commissioner and the Director.CommentsClose CommentsPermalink





(c) Selection Process-CommentsClose CommentsPermalink





(1) IN GENERAL- The Commissioner shall establish a process to solicit, evaluate, and select interested parties in the private sector for purposes of assisting in providing instruction and related instructional materials described in subsection (b) at each educational seminar under this section.CommentsClose CommentsPermalink





(2) CRITERIA- The Commissioner shall evaluate and select interested parties in the private sector under the process established under paragraph (1) based on--CommentsClose CommentsPermalink





(A) availability and usefulness;CommentsClose CommentsPermalink





(B) the volume, value, and incidence of mislabeling or misidentification of origin of imported articles; andCommentsClose CommentsPermalink





(C) other appropriate criteria established by the Commissioner.CommentsClose CommentsPermalink





(3) PUBLIC AVAILABILITY- The Commissioner shall publish in the Federal Register a detailed description of the process established under paragraph (1) and the criteria established under paragraph (2).CommentsClose CommentsPermalink





(d) Special Rule for Antidumping and Countervailing Orders-CommentsClose CommentsPermalink





(1) IN GENERAL- The Commissioner shall give due consideration to carrying out an educational seminar under this section in whole or in part to improve the ability of U.S. Customs and Border Protection Agency personnel to enforce a countervailing or antidumping duty order issued under section 706 or 736 of the Tariff Act of 1930 (19 U.S.C. 1671e or 1673e) upon the request of a petitioner in an action underlying such countervailing or antidumping duty order.CommentsClose CommentsPermalink





(2) INTERESTED PARTY- A petitioner described in paragraph (1) shall be treated as an interested party in the private sector for purposes of the requirements of this section.CommentsClose CommentsPermalink





(e) Performance Standards- The Commissioner and the Director shall establish performance standards to measure the development and level of achievement of educational seminars under this section.CommentsClose CommentsPermalink





(f) Reporting- Beginning September 30, 2013, the Commissioner and Director shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate an annual report on the effectiveness of educational seminars under this section.CommentsClose CommentsPermalink





(g) Definitions- In this section:CommentsClose CommentsPermalink





(1) COMMISSIONER- The term ‘Commissioner’ means the Commissioner of U.S. Customs and Border Protection.CommentsClose CommentsPermalink





(2) DIRECTOR- The term ‘Director’ means the Director of U.S. Immigration and Customs Enforcement.CommentsClose CommentsPermalink





(3) UNITED STATES- The term ‘United States’ means the customs territory of the United States, as defined in General Note 2 to the Harmonized Tariff Schedule of the United States.CommentsClose CommentsPermalink





(4) U.S. CUSTOMS AND BORDER PROTECTION AGENCY PERSONNEL- The term ‘U.S. Customs and Border Protection Agency personnel’ means import specialists, auditors, and other appropriate employees of the U.S. Customs and Border Protection Agency.CommentsClose CommentsPermalink





(5) U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT AGENCY PERSONNEL- The term ‘U.S. Immigrations and Customs Enforcement Agency personnel’ means Homeland Security Investigations Directorate personnel and other appropriate employees of the U.S. Immigrations and Customs Enforcement Agency.CommentsClose CommentsPermalink

CHAPTER 2--IMPORTER REQUIREMENTS

SEC. 221. 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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) develops criteria that importers must meet in order to obtain an importer of record number, including--CommentsClose CommentsPermalink





(A) criteria to ensure sufficient information is collected to allow the U.S. Customs and Border Protection Agency to verify the existence of the importer requesting the importer of record number;CommentsClose CommentsPermalink





(B) criteria to ensure sufficient information is collected to allow the U.S. Customs and Border Protection Agency to identify linkages or other affiliations between importers that are requesting or have been assigned importer of record numbers; andCommentsClose CommentsPermalink





(C) criteria to ensure sufficient information is collected to allow the U.S. Customs and Border Protection Agency to identify changes in address and corporate structure of importers;CommentsClose CommentsPermalink





(2) provides a process by which importers are assigned importer of record numbers;CommentsClose CommentsPermalink





(3) maintains a centralized database of importer of record numbers, including a history of importer of record numbers associated with each importer, and the information described in subparagraphs (A), (B), and (C) of paragraph (1);CommentsClose CommentsPermalink





(4) evaluates the accuracy of the database; andCommentsClose CommentsPermalink





(5) takes measures to ensure that duplicate importer of record numbers are not issued.CommentsClose CommentsPermalink





(c) Report- Not later than 1 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).CommentsClose CommentsPermalink





(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 (as in effect on the day before the date of the enactment of this Act).CommentsClose CommentsPermalink

SEC. 222. CUSTOMS BROKER IDENTIFICATION OF IMPORTERS.

(a) In General- Section 641 of the Tariff Act of 1930 (19 U.S.C. 1641) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(i) Identification of Importers-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Secretary shall prescribe regulations setting forth the minimum standards for customs brokers and importers, including nonresident importers, regarding the identity of the importer that shall apply in connection with the importation of merchandise into the United States.CommentsClose CommentsPermalink





‘(2) MINIMUM REQUIREMENTS- The regulations shall, at a minimum, require customs brokers to implement, and importers (after being given adequate notice) to comply with, reasonable procedures for--CommentsClose CommentsPermalink





‘(A) collecting the identity of importers, including nonresident importers, seeking to import merchandise into the United States to the extent reasonable and practicable; andCommentsClose CommentsPermalink





‘(B) maintaining records of the information used to substantiate a person’s identity, including name, address, and other identifying information.CommentsClose CommentsPermalink





‘(3) PENALTIES- Any customs broker who fails to collect information required under the regulations prescribed under this subsection shall be liable to the United States, at the discretion of the Secretary, for a monetary penalty not to exceed $10,000 for each violation of those regulations and subject to revocation or suspension of a license or permit of the customs broker pursuant to the procedures set forth in subsection (d).CommentsClose CommentsPermalink





‘(4) DEFINITIONS- In this subsection, the terms ‘importer’ and ‘nonresident importer’ have the meaning given such terms in section 2 of the Customs Trade Facilitation and Enforcement Act of 2012.’.CommentsClose CommentsPermalink





(b) Study and Report Required- Not later than 180 days after the date of enactment of this Act, the Commissioner of U.S. Customs and Border Protection shall submit to Congress a report containing recommendations for--CommentsClose CommentsPermalink





(1) determining the most timely and effective way to require foreign nationals to provide customs brokers with appropriate and accurate information, comparable to that which is required of United States nationals, concerning the identity, address, and other related information relating to such foreign nationals necessary to enable customs brokers to comply with the requirements of section 641(i) of the Tariff Act of 1930 (as added by subsection (a)); andCommentsClose CommentsPermalink





(2) establishing a system for customs brokers to review information maintained by relevant Federal agencies for purposes of verifying the identities of importers, including nonresident importers, seeking to import merchandise into the United States.CommentsClose CommentsPermalink

SEC. 223. ESTABLISHMENT OF ‘NEW IMPORTER’ PROGRAM.

(a) In General- Not later than 180 days after the date of the enactment of this Act, the Commissioner of U.S. Customs and Border Protection shall establish a new importer program that directs the U.S. Customs and Border Protection Agency to adjust bond amounts for new importers based on the level of risk assessed by the U.S. Customs and Border Protection Agency for protection of revenue of the Federal Government.CommentsClose CommentsPermalink





(b) Requirements- The Commissioner shall ensure that, as part of the new importer program established under subsection (a), the U.S. Customs and Border Protection Agency--CommentsClose CommentsPermalink





(1) develops risk assessment guidelines for new importers to determine if and to what extent--CommentsClose CommentsPermalink





(A) to adjust bond amounts of imported products of new importers; andCommentsClose CommentsPermalink





(B) to increase screening of imported products of new importers;CommentsClose CommentsPermalink





(2) develops procedures to ensure increased oversight of imported products of new importers relating to the enforcement of the priority trade issues described in paragraph (3)(B)(ii) of section 2(d) of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), as added by section 211(a) of this Act;CommentsClose CommentsPermalink





(3) develops procedures to ensure increased oversight of imported products of new importers by Centers of Excellence and Expertise established under section 212; andCommentsClose CommentsPermalink





(4) establishes a centralized database of new importers to ensure accuracy of information that is required to be provided by new importers to the U.S. Customs and Border Protection Agency.CommentsClose CommentsPermalink

SEC. 224. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.

(a) In General- Part III of title IV of the Tariff Act of 1930 (19 U.S.C. 1481 et seq.) is amended by inserting after section 484b the following new section:CommentsClose CommentsPermalink

‘SEC. 484c. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.

‘(a) In General- Except as provided in subsection (c), if an importer of record under section 484 of this Act is not a resident of the United States, the Commissioner of U.S. Customs and Border Protection shall require the non-resident importer to designate a resident agent in the United States subject to the requirements described in subsection (b).CommentsClose CommentsPermalink





‘(b) Requirements- The requirements described in this subsection are the following:CommentsClose CommentsPermalink





‘(1) The resident agent shall be authorized to accept service of process against the non-resident importer in connection with the importation of merchandise.CommentsClose CommentsPermalink





‘(2) The resident agent shall be liable to the United States for payment of duties and penalties or other fines issued by the Secretary of Homeland Security or the Commissioner if the Secretary or Commissioner is unable to collect such duties and penalties or other fines from such non-resident importer in connection with the importation of merchandise.CommentsClose CommentsPermalink





‘(3) The Secretary of the Treasury may require the resident agent to secure a bond or other security in connection with the importation of merchandise as the Secretary may deem necessary for the protection of the revenue or to assure compliance with any provision of law, regulation, or instruction which the Secretary of the Commissioner may be authorized to enforce.CommentsClose CommentsPermalink





‘(4) The Commissioner of U.S. Customs and Border Protection shall require the non-resident importer to establish a power of attorney with the resident agent in connection with the importation of merchandise.CommentsClose CommentsPermalink





‘(c) Non-Applicability- The requirements of this section shall not apply with respect to a non-resident importer who is a validated Tier 2 or Tier 3 participant in the Customs-Trade Partnership Against Terrorism program established under subtitle B of title II of the SAFE Port Act (6 U.S.C. 961 et seq.).CommentsClose CommentsPermalink





‘(d) Penalties-CommentsClose CommentsPermalink





‘(1) IN GENERAL- It shall be unlawful for any person to import into the United States any merchandise in violation of this section.CommentsClose CommentsPermalink





‘(2) CIVIL PENALTIES- Any person who violates paragraph (1) shall be liable for a civil penalty of $50,000 for each such violation.CommentsClose CommentsPermalink





‘(3) OTHER PENALTIES- In addition to the penalties specified in paragraph (2), any violation of this section that violates any other customs and trade laws of the United States shall be subject to any applicable civil and criminal penalty, including seizure and forfeiture, that may be imposed under such customs or trade law or title 18, United States Code, with respect to the importation of merchandise.CommentsClose CommentsPermalink





‘(4) DEFINITION- In this subsection, the term ‘customs and trade laws of the United States’ has the meaning given such term in section 2 of the Customs Trade Facilitation and Enforcement Act of 2012.’.CommentsClose CommentsPermalink





(b) Effective Date- Section 484c of the Tariff Act of 1930, as added by subsection (a), takes effect on the date of the enactment of this Act and applies with respect to the importation of merchandise of an importer of record under section 484 of the Tariff Act of 1930 who is not a resident of the United States on or after the date that is 180 days after such date of enactment.CommentsClose CommentsPermalink

SEC. 225. CERTIFIED IMPORTER PROGRAM.

(a) Interagency Committee-CommentsClose CommentsPermalink





(1) ESTABLISHMENT AND MEMBERSHIP- There is established an interagency committee composed of representatives of each covered Federal agency.CommentsClose CommentsPermalink





(2) CHAIRPERSON- The Commissioner of U.S. Customs and Border Protection shall serve as the chairperson of the interagency committee.CommentsClose CommentsPermalink





(b) Duties- The interagency committee shall--CommentsClose CommentsPermalink





(1) not later than December 30, 2014, and in consultation with interested parties in the private sector, establish a certified importer program as described in subsection (c); andCommentsClose CommentsPermalink





(2) assess and make recommendations with respect to other trade facilitation benefits for certified importers.CommentsClose CommentsPermalink





(c) Certified Importer Program-CommentsClose CommentsPermalink





(1) IN GENERAL- The certified importer program described in this subsection is a program to authorize the release of cargo imported by a certified importer on an expedited basis that is subject to documentation for clearing or licensing the importation or exportation of such cargo by one or more covered Federal agencies.CommentsClose CommentsPermalink





(2) CLEARANCE- Such release of cargo shall include clearance through 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)), as amended by section 203 of this Act, or its predecessor system upon transmission of data governing entry and immediate delivery.CommentsClose CommentsPermalink





(d) Definitions- In this section:CommentsClose CommentsPermalink





(1) CERTIFIED IMPORTER- The term ‘certified importer’ means an importer that--CommentsClose CommentsPermalink





(A)(i) is a validated Tier 2 or Tier 3 participant in the Customs-Trade Partnership Against Terrorism program established under subtitle B of title II of the SAFE Port Act (6 U.S.C. 961 et seq.); andCommentsClose CommentsPermalink





(ii) is a participant in good standing of the U.S. Customs and Border Protection Agency’s importer self-assessment program; andCommentsClose CommentsPermalink





(B) where applicable, participants in good standing in one or more programs maintained by a covered Federal agency to formally identify entities that are highly compliant with the covered Federal agency’s requirements and which maintain a rigorous system of internal controls and system of records to promote and document such compliance.CommentsClose CommentsPermalink





(2) COVERED FEDERAL AGENCY- The term ‘covered Federal agency’ means a Federal department or agency that requires documentation for clearing or licensing the importation or exportation of cargo.CommentsClose CommentsPermalink





(e) Report-CommentsClose CommentsPermalink





(1) IN GENERAL- Not later than March 31, 2014, the Commissioner of U.S. Customs and Border Protection 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 progress in establishing the certified importer program as described in subsection (c) and coordination among the Commissioner and the heads of each covered Federal agency in facilitating the implementation of the certified importer program.CommentsClose CommentsPermalink





(2) UPDATE- Not later than December 31, 2015, the Commissioner of U.S. Customs and Border Protection shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives an update of the report required under paragraph (1).CommentsClose CommentsPermalink

CHAPTER 3--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

SEC. 231. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT.

The Tariff Act of 1930 is amended by inserting after section 628 (19 U.S.C. 1628) the following new section:CommentsClose CommentsPermalink

‘SEC. 628A. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT.

‘(a) Sharing of Information Relating to Copyrights and Registered Marks-CommentsClose CommentsPermalink





‘(1) SHARING OF INFORMATION AND SAMPLES- Notwithstanding any other provision of law, the Secretary is authorized, at the time that merchandise is presented for examination and thereafter, to provide to the owner of a copyright or a registered mark, with notification to the importer of record--CommentsClose CommentsPermalink





‘(A) any information appearing on the merchandise or its retail packaging,CommentsClose CommentsPermalink





‘(B) a sample, or digital image, of the merchandise and its retail packaging, orCommentsClose CommentsPermalink





‘(C) if a sample is provided under subparagraph (B), any packing material accompanying the sample that bears either a mark suspected of being a counterfeit mark of the registered mark, or a work suspected of infringing the copyright,CommentsClose CommentsPermalink





as presented to the United States Customs and Border Protection Agency, without redaction, whether imported into or exported from, or attempted to be exported from, the United States, to assist the Secretary in determining whether the merchandise, packaging, or packing material infringes the copyright or bears or consists of a counterfeit mark of the registered mark.CommentsClose CommentsPermalink





‘(2) NONDISCLOSURE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Any owner of a copyright or a registered mark to whom information, a sample, an image, or material described in subparagraph (A), (B), or (C) of paragraph (1) is provided under paragraph (1) may not disclose it to any other person or use it for a purpose other than the purpose described in paragraph (1).CommentsClose CommentsPermalink





‘(B) EXCEPTION- Subparagraph (A) does not apply in the case of information, a sample, an image, or material that is disclosed or used in a civil action for infringement of a copyright under title 17, United States Code, or infringement of a registered mark under the Lanham Act.CommentsClose CommentsPermalink





‘(C) USE IN JUDICIAL PROCEEDINGS BARRED- Information, samples, images, or material described in subparagraph (A), (B), or (C) of paragraph (1), or information obtained from the provision of information, samples, images, or material under any such subparagraph, may not be used by the owner of a copyright or registered mark in any judicial proceeding, other than a proceeding described in subparagraph (B).CommentsClose CommentsPermalink





‘(3) BONDING REQUIREMENTS- The Secretary may impose bonding requirements on the owner of the copyright or registered mark as a condition of disclosure of information and the provision of samples under this subsection.CommentsClose CommentsPermalink





‘(4) IMPLEMENTATION-CommentsClose CommentsPermalink





‘(A) REGULATIONS- Not later than the 90th day after the date of the enactment of this section, the Secretary shall promulgate revised regulations to carry out this subsection. Until such time as the Secretary promulgates the revised regulations, and notwithstanding section 818(g)(2) of the National Defense Authorization Act of 2012 (10 U.S.C. 2302 note; Public Law 112-81), those regulations in effect on the date of the enactment of this section implementing section 818(g)(1) of the National Defense Authorization Act of 2012 shall be in effect, except to the extent such regulations limit the application of this subsection.CommentsClose CommentsPermalink





‘(B) INFORMATION SHARING PROCESSES-CommentsClose CommentsPermalink





‘(i) FOR IMPORTERS-CommentsClose CommentsPermalink





‘(I) IN GENERAL- The Secretary is authorized to establish a clearance process for those importers of record who wish to participate in the process to allow for or accelerate the release of merchandise from the custody of the United States Customs and Border Protection Agency without the provision under paragraph (1), prior to seizure of the merchandise, of information, samples, images, or material with respect to the merchandise.CommentsClose CommentsPermalink





‘(II) LIMITATION ON SHARING OF INFORMATION- In the case of an importer of record that participates in the process under subclause (I), no information, samples, images, or material described in subparagraph (A), (B), or (C) of paragraph (1) of merchandise of that importer may be provided, without redaction, to the owner of a copyright or registered mark prior to seizure of the merchandise.CommentsClose CommentsPermalink





‘(ii) FOR OWNERS OF COPYRIGHTS AND REGISTERED MARKS-CommentsClose CommentsPermalink





‘(I) IN GENERAL-CommentsClose CommentsPermalink

‘(aa) ESTABLISHMENT- The Secretary shall establish a process or processes for those owners of copyrights and owners of registered marks that wish to participate in the process or processes, through which any sharing of information, samples, images, and material under paragraph (1) will be carried out before the notification to the importer of record referred to in paragraph (1) is made, subject to the limitation under subclause (II) of clause (i).CommentsClose CommentsPermalink

‘(bb) INELIGIBILITY- An owner of a copyright or a registered mark shall not be eligible to participate in a process described in item (aa) if that owner of a copyright or a registered mark has violated the prohibitions on disclosure under paragraph (2).CommentsClose CommentsPermalink

‘(II) PROVISION OF SAMPLES AND INFORMATION TO CBP- The Secretary is authorized to establish a process for those owners of copyrights and owners of registered marks that wish to provide to the United States Customs and Border Protection Agency samples of, or information regarding, their copyrighted merchandise or merchandise that bears their registered marks (as the case may be), to assist the Secretary in determining whether merchandise presented for examination infringes the copyright or bears or consists of a counterfeit mark of the registered mark.CommentsClose CommentsPermalink





‘(b) Merchandise in Violation of Anticircumvention Measures-CommentsClose CommentsPermalink





‘(1) NOTIFICATION UPON SEIZURE-CommentsClose CommentsPermalink





‘(A) NOTIFICATION OF COPYRIGHT OWNER- Upon the seizure of merchandise by the Secretary for a violation of subsection (a) or (b) of section 1201 of title 17, United States Code, the Secretary shall notify the owner of a copyright who is included on the list established under paragraph (4) of the seizure of the merchandise that is capable of circumventing a technological measure of the copyright owner under either such subsection. The Secretary shall also provide to any such person additional information upon request, which shall be equivalent to information provided pursuant to section 602(b) of title 17, United States Code, and the regulations issued under that section.CommentsClose CommentsPermalink





‘(B) NOTIFICATION OF TRADEMARK OWNER- Upon the seizure of merchandise by the Secretary for a violation of subsection (a) or (b) of section 1201 of title 17, United States Code, the Secretary shall notify the owner of a registered mark--CommentsClose CommentsPermalink





‘(i) on hardware that contains a technological measure that the seized merchandise is capable of circumventing, orCommentsClose CommentsPermalink





‘(ii) on hardware on which the use of the seized merchandise is capable of circumventing a technological measure of a copyright owner,CommentsClose CommentsPermalink





in either case in a manner that would result in injury to the owner of a copyright under either such subsection, if the owner of the registered mark is included on the list established under paragraph (4). The Secretary shall also provide to any such person additional information upon request, which shall be equivalent to information provided pursuant to section 602(b) of title 17, United States Code, and the regulations issued under that section.CommentsClose CommentsPermalink





‘(2) PRE-SEIZURE PROVISION OF SAMPLES-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of merchandise that the Secretary reasonably suspects may be subject to seizure by the Secretary for a violation of subsection (a) or (b) of section 1201 of title 17, United States Code, the Secretary is authorized to provide a sample of the merchandise to any person described in subparagraph (B) in the case of merchandise that is suspected of such a violation, when necessary in the view of the Secretary to assist the Secretary in determining whether such a violation has occurred.CommentsClose CommentsPermalink





‘(B) RECIPIENTS OF SAMPLES- Persons to whom provision of samples is authorized under subparagraph (A) are--CommentsClose CommentsPermalink





‘(i) the owner of a copyright whose technological measure the merchandise is capable of circumventing under subsection (a) or (b) of section 1201 of title 17, United States Code; andCommentsClose CommentsPermalink





‘(ii) the owner of a registered mark--CommentsClose CommentsPermalink





‘(I) on hardware that contains a technological measure that the seized merchandise is capable of circumventing, orCommentsClose CommentsPermalink





‘(II) on hardware on which the use of the seized merchandise is capable of circumventing a technological measure of a copyright owner,CommentsClose CommentsPermalink





in either case in a manner that would result in injury to the owner of a copyright under either such subsection.CommentsClose CommentsPermalink





‘(C) NONDISCLOSURE-CommentsClose CommentsPermalink





‘(i) IN GENERAL- Any owner of a copyright or a registered mark to whom a sample is provided under subparagraph (A) before the merchandise is seized may not disclose it to any other person or use it for a purpose other than the purpose described in subparagraph (A) for such provision of samples.CommentsClose CommentsPermalink





‘(ii) EXCEPTION- Clause (i) does not apply in the case of a sample that is disclosed or used in a civil action for infringement of a copyright under title 17, United States Code, or infringement of a registered mark under the Lanham Act.CommentsClose CommentsPermalink





‘(iii) USE IN JUDICIAL PROCEEDINGS BARRED- A sample provided under subparagraph (A), or information obtained from the provision of such a sample, may not be used by the owner of a copyright or registered mark in any judicial proceeding, other than a proceeding described in clause (ii).CommentsClose CommentsPermalink





‘(D) BONDING REQUIREMENTS- The Secretary may impose bonding requirements on the owner of the copyright or trademark as a condition of the provision of samples under this paragraph.CommentsClose CommentsPermalink





‘(3) POST-SEIZURE PROVISION OF SAMPLES-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of merchandise subject to seizure by the Secretary for a violation of subsection (a) or (b) of section 1201 of title 17, United States Code, the Secretary is authorized to provide a sample of the merchandise to any person described in subparagraph (B) if the merchandise has been seized for such a violation.CommentsClose CommentsPermalink





‘(B) RECIPIENTS OF SAMPLES- Persons to whom provision of samples is authorized under subparagraph (A) are--CommentsClose CommentsPermalink





‘(i) the owner of a copyright whose technological measure the merchandise is capable of circumventing under subsection (a) or (b) of section 1201 of title 17, United States Code, and who is included on the list established under paragraph (4); andCommentsClose CommentsPermalink





‘(ii) the owner of a registered mark--CommentsClose CommentsPermalink





‘(I) on hardware that contains a technological measure that the seized merchandise is capable of circumventing, orCommentsClose CommentsPermalink





‘(II) on hardware on which the use of the seized merchandise is capable of circumventing a technological measure of a copyright owner,CommentsClose CommentsPermalink





in either case in a manner that would result in injury to the owner of a copyright under either such subsection, if the owner of the registered mark is included on the list established under paragraph (4). The Secretary shall also provide to any such person additional information upon request, which shall be equivalent to information provided pursuant to section 602(b) of title 17, United States Code, and the regulations issued under that section.CommentsClose CommentsPermalink





‘(C) BONDING REQUIREMENTS- The Secretary may impose bonding requirements on the owner of the copyright or trademark as a condition of the provision of samples under this paragraph.CommentsClose CommentsPermalink





‘(4) ELIGIBLE OWNERS OF COPYRIGHTS AND REGISTERED MARKS- An owner of a copyright or a registered mark is eligible to receive notification under paragraph (1) or samples under paragraph (3) if such owner is included on a list that the Secretary is authorized to maintain and periodically revise, through a process of notice and comment, for purposes of paragraphs (1) and (3) of this subsection.CommentsClose CommentsPermalink





‘(5) REGULATIONS- Not later than the 90th day after the date of the enactment of this section, the Secretary shall promulgate regulations establishing procedures that implement this subsection.CommentsClose CommentsPermalink





‘(c) Notification of Parties Responsible for Initiation of Section 337 Investigations- The Secretary is authorized to notify the party or parties responsible for initiating an investigation under section 337 of this Act when merchandise is excluded under subsection (d) of that section, or merchandise is seized under subsection (i) of that section, pursuant to that investigation.CommentsClose CommentsPermalink





‘(d) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) The term ‘counterfeit mark’ has the meaning given that term in section 2320(e) of title 18, United States Code.CommentsClose CommentsPermalink





‘(2) The term ‘Lanham Act’ means the Act entitled ‘An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes’, approved July 5, 1946 (15 U.S.C. 1051 et seq.).CommentsClose CommentsPermalink





‘(3) The term ‘mark’ has the meaning given that term in section 45 of the Lanham Act (15 U.S.C. 1127).CommentsClose CommentsPermalink





‘(4) The term ‘registered mark’ has the meaning given that term in section 45 of the Lanham Act (15 U.S.C. 1127).CommentsClose CommentsPermalink





‘(5) The term ‘Secretary’ means the Secretary of Homeland Security, acting through the Commissioner of U.S. Customs and Border Protection.CommentsClose CommentsPermalink





‘(6) The term ‘work’ means a work within the meaning of title 17, United States Code.CommentsClose CommentsPermalink





‘(7) The term ‘without redaction’ means without modification, deletion or omission.’.CommentsClose CommentsPermalink