[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1916 Introduced in House (IH)]
114th CONGRESS
1st Session
H. R. 1916
To reauthorize trade enforcement and trade facilitation functions and
activities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 21, 2015
Mr. Levin introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Homeland Security, 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 concerned
_______________________________________________________________________
A BILL
To reauthorize trade enforcement and trade facilitation functions and
activities, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Trade Enforcement
and Trade Facilitation Act of 2015''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT
Sec. 101. Improving partnership programs.
Sec. 102. Report on effectiveness of trade enforcement activities.
Sec. 103. Priorities and performance standards for customs
modernization, trade facilitation, and
trade enforcement functions and programs.
Sec. 104. Educational seminars to improve efforts to classify and
appraise imported articles, to improve
trade enforcement efforts, and to otherwise
facilitate legitimate international trade.
Sec. 105. Joint strategic plan.
Sec. 106. Automated Commercial Environment.
Sec. 107. International Trade Data System.
Sec. 108. Consultations with respect to mutual recognition
arrangements.
Sec. 109. Commercial Customs Operations Advisory Committee.
Sec. 110. Centers of Excellence and Expertise.
Sec. 111. Commercial Targeting Division and National Targeting and
Analysis Groups.
Sec. 112. Report on oversight of revenue protection and enforcement
measures.
Sec. 113. Report on security and revenue measures with respect to
merchandise transported in bond.
Sec. 114. Importer of record program.
Sec. 115. Customs broker identification of importers.
Sec. 116. Establishment of new importer program.
Sec. 117. Requirements applicable to non-resident importers.
Sec. 118. Single entry bond for suspected evasion.
TITLE II--IMPORT HEALTH AND SAFETY
Sec. 201. Interagency import safety working group.
Sec. 202. Joint import safety rapid response plan.
Sec. 203. Training.
TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
Sec. 301. Definition of intellectual property rights.
Sec. 302. Exchange of information related to trade enforcement.
Sec. 303. Seizure of circumvention devices.
Sec. 304. Enforcement by U.S. Customs and Border Protection of works
for which copyright registration is
pending.
Sec. 305. National Intellectual Property Rights Coordination Center.
Sec. 306. Joint strategic plan for the enforcement of intellectual
property rights.
Sec. 307. Personnel dedicated to the enforcement of intellectual
property rights.
Sec. 308. Training with respect to the enforcement of intellectual
property rights.
Sec. 309. International cooperation and information sharing.
Sec. 310. Report on intellectual property rights enforcement.
Sec. 311. Information for travelers regarding violations of
intellectual property rights.
TITLE IV--MISCELLANEOUS PROVISIONS
Sec. 401. De minimis value.
Sec. 402. Consultation on trade and customs revenue functions.
Sec. 403. Penalties for customs brokers.
Sec. 404. Amendments to chapter 98 of the Harmonized Tariff Schedule of
the United States.
Sec. 405. Exemption from duty of residue of bulk cargo contained in
instruments of international traffic
previously exported from the United States.
Sec. 406. Drawback and refunds.
Sec. 407. Elimination of consumptive demand exception to prohibition on
importation of goods made with convict
labor, forced labor, or indentured labor;
report.
TITLE V--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY
ORDERS
Subtitle A--Actions Relating to Enforcement of Trade Remedy Laws
Sec. 501. Prevention and investigation of evasion.
Sec. 502. Application to Canada and Mexico.
Subtitle B--Other Matters
Sec. 511. Definitions.
Sec. 512. Allocation and training of personnel.
Sec. 513. Regulations.
Sec. 514. Annual report on prevention of evasion of antidumping and
countervailing duty orders.
Sec. 515. Government Accountability Office report on reliquidation
authority.
Sec. 516. Addressing circumvention by new shippers.
SEC. 2. DEFINITIONS.
In this Act:
(1) Automated commercial environment.--The term ``Automated
Commercial Environment'' means the Automated Commercial
Environment computer system authorized under section
13031(f)(4) of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (19 U.S.C. 58c(f)(4)).
(2) Commissioner.--The term ``Commissioner'' means the
Commissioner responsible for U.S. Customs and Border
Protection.
(3) Customs and trade laws of the united states.--The term
``customs and trade laws of the United States'' includes the
following:
(A) The Tariff Act of 1930 (19 U.S.C. 1202 et
seq.).
(B) Section 249 of the Revised Statutes (19 U.S.C.
3).
(C) Section 2 of the Act of March 4, 1923 (42 Stat.
1453, chapter 251; 19 U.S.C. 6).
(D) The Act of March 3, 1927 (44 Stat. 1381,
chapter 348; 19 U.S.C. 2071 et seq.).
(E) Section 13031 of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c).
(F) Section 251 of the Revised Statutes (19 U.S.C.
66).
(G) Section 1 of the Act of June 26, 1930 (46 Stat.
817, chapter 617; 19 U.S.C. 68).
(H) The Foreign Trade Zones Act (19 U.S.C. 81a et
seq.).
(I) Section 1 of the Act of March 2, 1911 (36 Stat.
965, chapter 191; 19 U.S.C. 198).
(J) The Trade Act of 1974 (19 U.S.C. 2102 et seq.).
(K) The Trade Agreements Act of 1979 (19 U.S.C.
2501 et seq.).
(L) The North American Free Trade Agreement
Implementation Act (19 U.S.C. 3301 et seq.).
(M) The Uruguay Round Agreements Act (19 U.S.C.
3501 et seq.).
(N) The Caribbean Basin Economic Recovery Act (19
U.S.C. 2701 et seq.).
(O) The Andean Trade Preference Act (19 U.S.C. 3201
et seq.).
(P) The African Growth and Opportunity Act (19
U.S.C. 3701 et seq.).
(Q) The Customs Enforcement Act of 1986 (Public Law
99-570; 100 Stat. 3207-79).
(R) The Customs and Trade Act of 1990 (Public Law
101-382; 104 Stat. 629).
(S) The Customs Procedural Reform and
Simplification Act of 1978 (Public Law 95-410; 92 Stat.
888).
(T) The Trade Act of 2002 (Public Law 107-210; 116
Stat. 933).
(U) The Convention on Cultural Property
Implementation Act (19 U.S.C. 2601 et seq.).
(V) The Act of March 28, 1928 (45 Stat. 374,
chapter 266; 19 U.S.C. 2077 et seq.)
(W) The Act of August 7, 1939 (53 Stat. 1263,
chapter 566).
(X) Any other provision of law implementing a trade
agreement.
(Y) Any other provision of law vesting customs
revenue functions in the Secretary of the Treasury.
(Z) Any other provision of law relating to trade
facilitation or trade enforcement that is administered
by U.S. Customs and Border Protection on behalf of any
Federal agency that is required to participate in the
International Trade Data System.
(AA) Any other provision of customs or trade law
administered by U.S. Customs and Border Protection or
U.S. Immigration and Customs Enforcement.
(4) Private sector entity.--The term ``private sector
entity'' means--
(A) an importer;
(B) an exporter;
(C) a forwarder;
(D) an air, sea, or land carrier or shipper;
(E) a contract logistics provider;
(F) a customs broker; or
(G) any other person (other than an employee of a
government) affected by the implementation of the
customs and trade laws of the United States, including
a domestic producer.
(5) Trade enforcement.--The term ``trade enforcement''
means the enforcement of the customs and trade laws of the
United States.
(6) Trade facilitation.--The term ``trade facilitation''
refers to policies and activities of U.S. Customs and Border
Protection with respect to facilitating the movement of
merchandise into and out of the United States in a manner that
complies with the customs and trade laws of the United States.
TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT
SEC. 101. IMPROVING PARTNERSHIP PROGRAMS.
(a) In General.--In order to advance the security, trade
enforcement, and trade facilitation missions of U.S. Customs and Border
Protection, the Commissioner shall ensure that partnership programs of
U.S. Customs and Border Protection established before the date of the
enactment of this Act, such as the Customs-Trade Partnership Against
Terrorism established under subtitle B of title II of the Security and
Accountability for Every Port Act of 2006 (6 U.S.C. 961 et seq.), and
partnership programs of U.S. Customs and Border Protection established
after such date of enactment, provide trade benefits to private sector
entities that meet the requirements for participation in those programs
established by the Commissioner under this section.
(b) Elements.--In developing and operating partnership programs
under subsection (a), the Commissioner shall--
(1) consult with private sector entities, the public, and
other Federal agencies when appropriate, to ensure that
participants in those programs receive commercially significant
and measurable trade benefits, including providing pre-
clearance of merchandise for qualified persons that demonstrate
the highest levels of compliance with the customs and trade
laws of the United States, regulations of U.S. Customs and
Border Protection, and other requirements the Commissioner
determines to be necessary;
(2) ensure an integrated and transparent system of trade
benefits and compliance requirements for all partnership
programs of U.S. Customs and Border Protection;
(3) consider consolidating partnership programs in
situations in which doing so would support the objectives of
such programs, increase participation in such programs, enhance
the trade benefits provided to participants in such programs,
and enhance the allocation of the resources of U.S. Customs and
Border Protection;
(4) coordinate with the Director of U.S. Immigration and
Customs Enforcement, and other Federal agencies with authority
to detain and release merchandise entering the United States--
(A) to ensure coordination in the release of such
merchandise through the Automated Commercial
Environment, or its predecessor, and the International
Trade Data System;
(B) to ensure that the partnership programs of
those agencies are compatible with the partnership
programs of U.S. Customs and Border Protection;
(C) to develop criteria for authorizing the
release, on an expedited basis, of merchandise for
which documentation is required from one or more of
those agencies to clear or license the merchandise for
entry into the United States; and
(D) to create pathways, within and among the
appropriate Federal agencies, for qualified persons
that demonstrate the highest levels of compliance to
receive immediate clearance absent information that a
transaction may pose a national security or compliance
threat; and
(5) ensure that trade benefits are provided to participants
in partnership programs.
(c) Report Required.--Not later than the date that is 180 days
after the date of the enactment of this Act, and December 31 of each
year thereafter, the Commissioner shall submit to the Committee on
Finance of the Senate and the Committee on Ways and Means of the House
of Representatives a report that--
(1) identifies each partnership program referred to in
subsection (a);
(2) for each such program, identifies--
(A) the requirements for participants in the
program;
(B) the commercially significant and measurable
trade benefits provided to participants in the program;
(C) the number of participants in the program; and
(D) in the case of a program that provides for
participation at multiple tiers, the number of
participants at each such tier;
(3) identifies the number of participants enrolled in more
than one such partnership program;
(4) assesses the effectiveness of each such partnership
program in advancing the security, trade enforcement, and trade
facilitation missions of U.S. Customs and Border Protection,
based on historical developments, the level of participation in
the program, and the evolution of benefits provided to
participants in the program;
(5) summarizes the efforts of U.S. Customs and Border
Protection to work with other Federal agencies with authority
to detain and release merchandise entering the United States to
ensure that partnership programs of those agencies are
compatible with partnership programs of U.S. Customs and Border
Protection;
(6) summarizes criteria developed with those agencies for
authorizing the release, on an expedited basis, of merchandise
for which documentation is required from one or more of those
agencies to clear or license the merchandise for entry into the
United States;
(7) summarizes the efforts of U.S. Customs and Border
Protection to work with private sector entities and the public
to develop and improve partnership programs referred to in
subsection (a);
(8) describes measures taken by U.S. Customs and Border
Protection to make private sector entities aware of the trade
benefits available to participants in such programs; and
(9) summarizes the plans, targets, and goals of U.S.
Customs and Border Protection with respect to such programs for
the 2 years following the submission of the report.
SEC. 102. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT ACTIVITIES.
(a) In General.--Not later than one year after the date of the
enactment of this Act, the Comptroller General of the United States
shall submit to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives a report on
the effectiveness of trade enforcement activities of U.S. Customs and
Border Protection.
(b) Contents.--The report required by subsection (a) shall
include--
(1) a description of the use of resources, results of
audits and verifications, targeting, organization, and training
of personnel of U.S. Customs and Border Protection; and
(2) a description of trade enforcement activities to
address undervaluation, transshipment, legitimacy of entities
making entry, protection of revenues, fraud prevention and
detection, and penalties, including intentional
misclassification, inadequate bonding, and other
misrepresentations.
SEC. 103. PRIORITIES AND PERFORMANCE STANDARDS FOR CUSTOMS
MODERNIZATION, TRADE FACILITATION, AND TRADE ENFORCEMENT
FUNCTIONS AND PROGRAMS.
(a) Priorities and Performance Standards.--
(1) In general.--The Commissioner, in consultation with the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives, 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).
(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.
(b) Functions and Programs Described.--The functions and programs
referred to in subsection (a) are the following:
(1) The Automated Commercial Environment.
(2) Each of the priority trade issues described in
paragraph (3)(B)(ii) of section 2(d) of the Act of March 3,
1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), as added
by section 111(a) of this Act.
(3) The Centers of Excellence and Expertise described in
section 110 of this Act.
(4) Drawback for exported merchandise under section 313 of
the Tariff Act of 1930 (19 U.S.C. 1313), as amended by section
406 of this Act.
(5) Transactions relating to imported merchandise in bond.
(6) Collection of countervailing duties assessed under
subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C.
1671 et seq.) and antidumping duties assessed under subtitle B
of title VII of the Tariff Act of 1930 (19 U.S.C. 1673 et
seq.).
(7) The expedited clearance of cargo.
(8) The issuance of regulations and rulings.
(9) The issuance of Regulatory Audit Reports.
(c) Consultations and Notification.--
(1) Consultations.--The consultations required by
subsection (a)(1) shall occur, at a minimum, on an annual
basis.
(2) Notification.--The Commissioner shall notify the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives of any changes to the
priorities referred to in subsection (a) not later than 30 days
before such changes are to take effect.
SEC. 104. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS TO CLASSIFY AND
APPRAISE IMPORTED ARTICLES, TO IMPROVE TRADE ENFORCEMENT
EFFORTS, AND TO OTHERWISE FACILITATE LEGITIMATE
INTERNATIONAL TRADE.
(a) In General.--
(1) Establishment.--The Commissioner and the Director shall
establish and carry out on a fiscal year basis educational
seminars to--
(A) improve the ability of U.S. Customs and Border
Protection personnel to classify and appraise articles
imported into the United States in accordance with the
customs and trade laws of the United States;
(B) improve the trade enforcement efforts of U.S.
Customs and Border Protection personnel and U.S.
Immigration and Customs Enforcement personnel; and
(C) otherwise improve the ability and effectiveness
of U.S. Customs and Border Protection personnel and
U.S. Immigration and Customs Enforcement personnel to
facilitate legitimate international trade.
(b) Content.--
(1) Classifying and appraising imported articles.--In
carrying out subsection (a)(1)(A), the Commissioner, the
Director, and interested 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 personnel and, as
appropriate, to U.S. Immigration and Customs Enforcement
personnel on the following:
(A) Conducting a physical inspection of an article
imported into the United States, including testing of
samples of the article, to determine if the article is
mislabeled in the manifest or other accompanying
documentation.
(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.
(C) Customs valuation.
(D) Industry supply chains and other related
matters as determined to be appropriate by the
Commissioner.
(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 personnel and, as appropriate, to U.S.
Immigration and Customs Enforcement personnel to identify
opportunities to enhance enforcement of the following:
(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.).
(B) Addressing evasion of duties on imports of
textiles.
(C) Protection of intellectual property rights.
(D) Enforcement of child labor laws.
(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.
(c) Selection Process.--
(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.
(2) Criteria.--The Commissioner shall evaluate and select
interested parties in the private sector under the process
established under paragraph (1) based on--
(A) availability and usefulness;
(B) the volume, value, and incidence of mislabeling
or misidentification of origin of imported articles;
and
(C) other appropriate criteria established by the
Commissioner.
(3) Public availability.--The Commissioner and the Director
shall publish in the Federal Register a detailed description of
the process established under paragraph (1) and the criteria
established under paragraph (2).
(d) Special Rule for Antidumping and Countervailing Duty Orders.--
(1) In general.--The Commissioner shall give due
consideration to carrying out an educational seminar under this
section in whole or in part to improve the ability of U.S.
Customs and Border Protection 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.
(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.
(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.
(f) Reporting.--Beginning September 30, 2016, the Commissioner and
the Director shall submit to the Committee of Finance of the Senate and
the Committee of Ways and Means of the House of Representatives an
annual report on the effectiveness of educational seminars under this
section.
(g) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of
U.S. Immigration and Customs Enforcement.
(2) 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.
(3) U.S. customs and border protection personnel.--The term
``U.S. Customs and Border Protection personnel'' means import
specialists, auditors, and other appropriate employees of the
U.S. Customs and Border Protection.
(4) U.S. immigration and customs enforcement personnel.--
The term ``U.S. Immigrations and Customs Enforcement
personnel'' means Homeland Security Investigations Directorate
personnel and other appropriate employees of U.S. Immigrations
and Customs Enforcement.
SEC. 105. JOINT STRATEGIC PLAN.
(a) In General.--Not later than one year after the date of the
enactment of this Act, and every 2 years thereafter, the Commissioner
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.
(b) Contents.--The joint strategic plan required under this section
shall be comprised of a comprehensive multi-year plan for trade
enforcement and trade facilitation, and shall include--
(1) a summary of actions taken during the 2-year period
preceding the submission of the plan to improve trade
enforcement and trade facilitation, including a description and
analysis of specific performance measures to evaluate the
progress of U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement in meeting each such
responsibility;
(2) a statement of objectives and plans for further
improving trade enforcement and trade facilitation;
(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 111(a) of this Act, that can be addressed
in order to enhance trade enforcement and trade facilitation,
and a description of strategies and plans for addressing each
such issue;
(4) a description of efforts made to improve consultation
and coordination among and within Federal agencies, and in
particular between U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement, regarding trade
enforcement and trade facilitation;
(5) a description of the training that has occurred to date
within U.S. Customs and Border Protection and U.S. Immigration
and Customs Enforcement to improve trade enforcement and trade
facilitation, including training under section 104 of this Act;
(6) a description of efforts to work with the World Customs
Organization and other international organizations, in
consultation with other Federal agencies as appropriate, with
respect to enhancing trade enforcement and trade facilitation;
(7) a description of U.S. Custom and Border Protection
organizational benchmarks for optimizing staffing and wait
times at ports of entry;
(8) a specific identification of any domestic or
international best practices that may further improve trade
enforcement and trade facilitation;
(9) any legislative recommendations to further improve
trade enforcement and trade facilitation; and
(10) a description of efforts made to improve consultation
and coordination with the private sector to enhance trade
enforcement and trade facilitation.
(c) Consultations.--
(1) In general.--In developing the joint strategic plan
required under this section, the Commissioner and the Director
shall consult with--
(A) appropriate officials from the relevant Federal
agencies, including--
(i) the Department of the Treasury;
(ii) the Department of Agriculture;
(iii) the Department of Commerce;
(iv) the Department of Justice;
(v) the Department of the Interior;
(vi) the Department of Health and Human
Services;
(vii) the Food and Drug Administration;
(viii) the Consumer Product Safety
Commission; and
(ix) the Office of the United States Trade
Representative; and
(B) the Commercial Customs Operations Advisory
Committee established by section 109 of this Act.
(2) Other consultations.--In developing the joint strategic
plan required under this section, the Commissioner and the
Director shall seek to consult with--
(A) appropriate officials from relevant foreign law
enforcement agencies and international organizations,
including the World Customs Organization; and
(B) interested parties in the private sector.
SEC. 106. AUTOMATED COMMERCIAL ENVIRONMENT.
(a) Funding.--Section 13031(f)(4)(B) of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)(4)(B)) is amended--
(1) by striking ``2003 through 2005'' and inserting ``2016
through 2018'';
(2) by striking ``such amounts as are available in that
Account'' and inserting ``not less than $153,736,000''; and
(3) by striking ``for the development'' and inserting ``to
complete the development and implementation''.
(b) Report.--Section 311(b)(3) of the Customs Border Security Act
of 2002 (19 U.S.C. 2075 note) is amended to read as follows:
``(3) Report.--
``(A) In general.--Not later than December 31,
2016, the Commissioner responsible for U.S. Customs and
Border Protection shall submit to the Committee on
Appropriations and the Committee on Finance of the
Senate and the Committee on Appropriations and the
Committee on Ways and Means of the House of
Representatives a report detailing--
``(i) U.S. Customs and Border Protection's
incorporation of all core trade processing
capabilities, including cargo release, entry
summary, cargo manifest, cargo financial data,
and export data elements into the Automated
Commercial Environment computer system
authorized under section 13031(f)(4) of the
Consolidated Omnibus Budget and Reconciliation
Act of 1985 (19 U.S.C. 58c(f)(4)) not later
than September 30, 2016, to conform with the
admissibility criteria of agencies
participating in the International Trade Data
System identified pursuant to section
411(d)(4)(A)(iii) of the Tariff Act of 1930;
``(ii) U.S. Customs and Border Protection's
remaining priorities for processing entry
summary data elements, cargo manifest data
elements, cargo financial data elements, and
export elements in the Automated Commercial
Environment computer system, and the objectives
and plans for implementing these remaining
priorities;
``(iii) the components of the National
Customs Automation Program specified in
subsection (a)(2) of section 411 of the Tariff
Act of 1930 that have not been implemented; and
``(iv) any additional components of the
National Customs Automation Program initiated
by the Commissioner to complete the
development, establishment, and implementation
of the Automated Commercial Environment
computer system.
``(B) Update of reports.--Not later than September
30, 2017, 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), and--
``(i) evaluating the effectiveness of the
implementation of the Automated Commercial
Environment computer system; and
``(ii) detailing the percentage of trade
processed in the Automated Commercial
Environment every month since September 30,
2016.''.
(c) Government Accountability Office Report.--Not later than
December 31, 2017, the Comptroller General of the United States shall
submit to the Committee on Appropriations and the Committee on Finance
of the Senate and the Committee on Appropriations and the Committee on
Ways and Means of the House of Representatives a report--
(1) assessing the progress of other Federal agencies in
accessing and utilizing the Automated Commercial Environment;
and
(2) assessing the potential cost savings to the United
States Government and importers and exporters and the potential
benefits to enforcement of the customs and trade laws of the
United States if the elements identified in clauses (i) through
(iv) of section 311(b)(3)(A) of the Customs Border Security Act
of 2002, as amended by subsection (b) of this section, are
implemented.
SEC. 107. INTERNATIONAL TRADE DATA SYSTEM.
(a) Information Technology Infrastructure.--Section 411(d) of the
Tariff Act of 1930 (19 U.S.C. 1411(d)) is amended--
(1) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively;
(2) by inserting after paragraph (3) the following:
``(4) Information technology infrastructure.--
``(A) In general.--The Secretary shall work with
the head of each agency participating in the ITDS and
the Interagency Steering Committee to ensure that each
agency--
``(i) develops and maintains the necessary
information technology infrastructure to
support the operation of the ITDS and to submit
all data to the ITDS electronically;
``(ii) enters into a memorandum of
understanding, or takes such other action as is
necessary, to provide for the information
sharing between the agency and U.S. Customs and
Border Protection necessary for the operation
and maintenance of the ITDS;
``(iii) not later than June 30, 2016,
identifies and transmits to the Commissioner
responsible for U.S. Customs and Border
Protection the admissibility criteria and data
elements required by the agency to authorize
the release of cargo by U.S. Customs and Border
Protection for incorporation into the
operational functionality of the Automated
Commercial Environment computer system
authorized under section 13031(f)(4) of the
Consolidated Omnibus Budget and Reconciliation
Act of 1985 (19 U.S.C. 58c(f)(4)); and
``(iv) not later than December 31, 2016,
utilizes the ITDS as the primary means of
receiving from users the standard set of data
and other relevant documentation, exclusive of
applications for permits, licenses, or
certifications required for the release of
imported cargo and clearance of cargo for
export.
``(B) Rule of construction.--Nothing in this
paragraph shall be construed to require any action to
be taken that would compromise an ongoing law
enforcement investigation or national security.''; and
(3) 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 109 of the
Trade Facilitation and Trade Enforcement Act of 2015''.
SEC. 108. CONSULTATIONS WITH RESPECT TO MUTUAL RECOGNITION
ARRANGEMENTS.
(a) Consultations.--The Secretary of Homeland Security, with
respect to any proposed mutual recognition arrangement or similar
agreement between the United States and a foreign government providing
for mutual recognition of supply chain security programs and customs
revenue functions, shall consult--
(1) not later than 30 days before initiating negotiations
to enter into any such arrangement or similar agreement, with
the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives; and
(2) not later than 30 days before entering into any such
arrangement or similar agreement, with the Committee on Finance
of the Senate and the Committee on Ways and Means of the House
of Representatives.
(b) Negotiating Objective.--It shall be a negotiating objective of
the United States in any negotiation for a mutual recognition
arrangement with a foreign country on partnership programs, such as the
Customs-Trade Partnership Against Terrorism established under subtitle
B of title II of the Security and Accountability for Every Port Act of
2006 (6 U.S.C. 961 et seq.), to seek to ensure the compatibility of the
partnership programs of that country with the partnership programs of
U.S. Customs and Border Protection to enhance trade facilitation and
trade enforcement.
SEC. 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE.
(a) Establishment.--Not later than the date that is 60 days after
the date of the enactment of this Act, the Secretary of the Treasury
and the Secretary of Homeland Security shall jointly establish a
Commercial Customs Operations Advisory Committee (in this section
referred to as the ``Advisory Committee'').
(b) Membership.--
(1) In general.--The Advisory Committee shall be comprised
of--
(A) 20 individuals appointed under paragraph (2);
(B) the Assistant Secretary for Tax Policy of the
Department of the Treasury and the Commissioner, who
shall jointly co-chair meetings of the Advisory
Committee; and
(C) the Assistant Secretary for Policy and the
Director of U.S. Immigration and Customs Enforcement of
the Department of Homeland Security, who shall serve as
deputy co-chairs of meetings of the Advisory Committee.
(2) Appointment.--
(A) In general.--The Secretary of the Treasury and
the Secretary of Homeland Security shall jointly
appoint 20 individuals from the private sector to the
Advisory Committee.
(B) Requirements.--In making appointments under
subparagraph (A), the Secretary of the Treasury and the
Secretary of Homeland Security shall appoint members--
(i) to ensure that the membership of the
Advisory Committee is representative of the
individuals and firms affected by the
commercial operations of U.S. Customs and
Border Protection; and
(ii) without regard to political
affiliation.
(C) Terms.--Each individual appointed to the
Advisory Committee under this paragraph shall be
appointed for a term of not more than 3 years, and may
be reappointed to subsequent terms, but may not serve
more than 2 terms sequentially.
(3) Transfer of membership.--The Secretary of the Treasury
and the Secretary of Homeland Security may transfer members
serving on the Advisory Committee on Commercial Operations of
the United States Customs Service established under section
9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19
U.S.C. 2071 note) on the day before the date of the enactment
of this Act to the Advisory Committee established under
subsection (a).
(c) Duties.--The Advisory Committee established under subsection
(a) shall--
(1) advise the Secretary of the Treasury and the Secretary
of Homeland Security on all matters involving the commercial
operations of U.S. Customs and Border Protection, including
advising with respect to significant changes that are proposed
with respect to regulations, policies, or practices of U.S.
Customs and Border Protection;
(2) provide recommendations to the Secretary of the
Treasury and the Secretary of Homeland Security on improvements
to the commercial operations of U.S. Customs and Border
Protection;
(3) collaborate in developing the agenda for Advisory
Committee meetings; and
(4) perform such other functions relating to the commercial
operations of U.S. Customs and Border Protection as prescribed
by law or as the Secretary of the Treasury and the Secretary of
Homeland Security jointly direct.
(d) Meetings.--
(1) In general.--The Advisory Committee shall meet at the
call of the Secretary of the Treasury and the Secretary of
Homeland Security, or at the call of not less than \2/3\ of the
membership of the Advisory Committee. The Advisory Committee
shall meet at least 4 times each calendar year.
(2) Open meetings.--Notwithstanding section 10(a) of the
Federal Advisory Committee Act (5 U.S.C. App.), the Advisory
Committee meetings shall be open to the public unless the
Secretary of the Treasury or the Secretary of Homeland Security
determines that the meeting will include matters the disclosure
of which would compromise investigations of U.S. Immigration
and Customs Enforcement.
(e) Annual Report.--Not later than December 31, 2016, and annually
thereafter, the Advisory Committee shall submit to the Committee on
Finance of the Senate and the Committee on Ways and Means of the House
of Representatives a report that--
(1) describes the activities of the Advisory Committee
during the preceding fiscal year; and
(2) sets forth any recommendations of the Advisory
Committee regarding the commercial operations of U.S. Customs
and Border Protection.
(f) Termination.--Section 14(a)(2) of the Federal Advisory
Committee Act (5 U.S.C. App.; relating to the termination of advisory
committees) shall not apply to the Advisory Committee.
(g) Conforming Amendment.--
(1) In general.--Effective on the date on which the
Advisory Committee is established under subsection (a), section
9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19
U.S.C. 2071 note) is repealed.
(2) Reference.--Any reference in law to the Advisory
Committee on Commercial Operations of the United States Customs
Service established under section 9503(c) of the Omnibus Budget
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).
SEC. 110. CENTERS OF EXCELLENCE AND EXPERTISE.
(a) In General.--The Commissioner shall, in consultation with the
Committee on Finance of the Senate, the Committee on Ways and Means of
the House of Representatives, and the Commercial Customs Operations
Advisory Committee established by section 109 of this Act, develop and
implement Centers of Excellence and Expertise throughout U.S. Customs
and Border Protection that--
(1) enhance the economic competitiveness of the United
States by consistently enforcing the laws and regulations of
the United States at all ports of entry of the United States
and by facilitating the flow of legitimate trade through
increasing industry-based knowledge;
(2) improve enforcement efforts, including enforcement of
priority trade issues described in subparagraph (B)(ii) of
section 2(d)(3) of the Act of March 3, 1927 (44 Stat. 1381,
chapter 348; 19 U.S.C. 2072(d)), as added by section 111(a) of
this Act, in specific industry sectors through the application
of targeting information from the Commercial Targeting Division
established under subparagraph (A) of such section 2(d)(3) and
from other means of verification;
(3) build upon the expertise of U.S. Customs and Border
Protection in particular industry operations, supply chains,
and compliance requirements;
(4) promote the uniform implementation at each port of
entry of the United States of policies and regulations relating
to imports;
(5) centralize the trade enforcement and trade facilitation
efforts of U.S. Customs and Border Protection;
(6) formalize an account-based approach to apply, as the
Commissioner determines appropriate, to the importation of
merchandise into the United States;
(7) foster partnerships though the expansion of trade
programs and other trusted partner programs;
(8) develop applicable performance measurements to meet
internal efficiency and effectiveness goals; and
(9) whenever feasible, facilitate a more efficient flow of
information between Federal agencies.
(b) Report.--Not later than December 31, 2016, the Commissioner
shall submit to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives a report
describing--
(1) the scope, functions, and structure of each Center of
Excellence and Expertise developed and implemented under
subsection (a);
(2) the effectiveness of each such Center of Excellence and
Expertise in improving enforcement efforts, including
enforcement of priority trade issues, and facilitating
legitimate trade;
(3) the quantitative and qualitative benefits of each such
Center of Excellence and Expertise to the trade community,
including through fostering partnerships through the expansion
of trade programs such as the Importer Self Assessment program
and other trusted partner programs;
(4) all applicable performance measurements with respect to
each such Center of Excellence and Expertise, including
performance measures with respect to meeting internal
efficiency and effectiveness goals;
(5) the performance of each such Center of Excellence and
Expertise in increasing the accuracy and completeness of data
with respect to international trade and facilitating a more
efficient flow of information between Federal agencies; and
(6) any planned changes in the number, scope, functions or
any other aspect of the Centers of Excellence and Expertise
developed and implemented under subsection (a).
SEC. 111. 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)) is amended by adding at the end
the following:
``(3) Commercial targeting division and national targeting
and analysis groups.--
``(A) Establishment of commercial targeting
division.--
``(i) In general.--The Secretary of
Homeland Security shall establish and maintain
within the Office of International Trade a
Commercial Targeting Division.
``(ii) Composition.--The Commercial
Targeting Division shall be composed of--
``(I) headquarters personnel led by
an Executive Director, who shall report
to the Assistant Commissioner for
Trade; and
``(II) individual National
Targeting and Analysis Groups, each led
by a Director who shall report to the
Executive Director of the Commercial
Targeting Division.
``(iii) Duties.--The Commercial Targeting
Division shall be dedicated--
``(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); and
``(II) to issuing Trade Alerts
described in subparagraph (D).
``(B) National targeting and analysis groups.--
``(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).
``(ii) Priority trade issues.--
``(I) In general.--The priority
trade issues described in this clause
are the following:
``(aa) Agriculture
programs.
``(bb) Antidumping and
countervailing duties.
``(cc) Import safety.
``(dd) Intellectual
property rights.
``(ee) Revenue.
``(ff) Textiles and wearing
apparel.
``(gg) Trade agreements and
preference programs.
``(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--
``(aa) determines it
necessary and appropriate to do
so;
``(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
proposals to consolidate,
eliminate, or otherwise modify
existing priority trade issues
not later than 60 days before
such changes are to take
effect; and
``(cc) submits to the
Committee on Finance of the
Senate and the Committee on
Ways and Means of the House of
Representatives a summary of
proposals to establish new
priority trade issues not later
than 30 days after such changes
are to take effect.
``(iii) Duties.--The duties of each
National Targeting and Analysis Group shall
include--
``(I) directing the trade
enforcement and compliance assessment
activities of U.S. Customs and Border
Protection that relate to the Group's
priority trade issue;
``(II) facilitating, promoting, and
coordinating cooperation and the
exchange of information between U.S.
Customs and Border Protection, U.S.
Immigration and Customs Enforcement,
and other relevant Federal departments
and agencies regarding the Group's
priority trade issue; and
``(III) serving as the primary
liaison between U.S. Customs and Border
Protection and the public regarding
United States Government activities
regarding the Group's priority trade
issue, including--
``(aa) providing for
receipt and transmission to the
appropriate U.S. Customs and
Border Protection 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;
``(bb) obtaining
information from the
appropriate U.S. Customs and
Border Protection 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 U.S. Customs and
Border Protection unless
providing such information
would compromise an ongoing law
enforcement investigation; and
``(cc) notifying on a
timely basis each interested
party in the private sector
that submitted such allegation
of any civil or criminal
actions taken by U.S. Customs
and Border Protection or other
Federal department or agency
resulting from the allegation.
``(C) Commercial risk assessment targeting.--In
carrying out its duties with respect to commercial risk
assessment targeting, the Commercial Targeting Division
shall--
``(i) establish targeted risk assessment
methodologies and standards--
``(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); and
``(II) for issuing, as appropriate,
Trade Alerts described in subparagraph
(D); and
``(ii) to the extent practicable and
otherwise authorized by law, use, to administer
the methodologies and standards established
under clause (i) --
``(I) publicly available
information;
``(II) information available from
the Automated Commercial System, the
Automated Commercial Environment
computer system, the Automated
Targeting System, the Automated Export
System, the International Trade Data
System, the TECS (formerly known as the
`Treasury Enforcement Communications
System'), the case management system of
U.S. Immigration and Customs
Enforcement, and any successor systems;
and
``(III) information made available
to the Commercial Targeting Division,
including information provided by
private sector entities.
``(D) Trade alerts.--
``(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 U.S. Customs and
Border Protection.
``(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--
``(I) the director finds that such
a determination is justified by
security interests; and
``(II) notifies the Assistant
Commissioner of the Office of Field
Operations and the Assistant
Commissioner of International Trade of
U.S. Customs and Border Protection of
the determination and the reasons for
the determination not later than 48
hours after making the determination.
``(iii) Summary of determinations not to
implement.--The Assistant Commissioner of the
Office of Field Operations of U.S. Customs and
Border Protection shall--
``(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;
``(II) conduct an evaluation of the
utilization of Trade Alerts issued
under clause (i); and
``(III) submit the summary to the
Committee on Finance of the Senate and
the Committee on Ways and Means of the
House of Representatives not later than
December 31 of each year.
``(iv) Inspection defined.--In this
subparagraph, the term `inspection' means the
comprehensive evaluation process used by U.S.
Customs and Border Protection, other than
physical examination or testing, to permit the
entry of merchandise into the United States, or
the clearance of merchandise for transportation
in bond through the United States, for purposes
of--
``(I) assessing duties;
``(II) identifying restricted or
prohibited items; and
``(III) ensuring compliance with
all applicable customs and trade laws
and regulations administered by U.S.
Customs and Border Protection.''.
(b) Use of Trade Data for Commercial Enforcement Purposes.--Section
343(a)(3)(F) of the Trade Act of 2002 (19 U.S.C. 2071 note) is amended
to read as follows:
``(F) The information collected pursuant to the
regulations shall be used exclusively for ensuring
cargo safety and security, preventing smuggling, and
commercial risk assessment targeting, and shall not be
used for any commercial enforcement purposes, including
for determining merchandise entry. Notwithstanding the
preceding sentence, nothing in this section shall be
treated as amending, repealing, or otherwise modifying
title IV of the Tariff Act of 1930 or regulations
prescribed thereunder.''.
SEC. 112. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND ENFORCEMENT
MEASURES.
(a) In General.--Not later the March 31, 2016, and not later than
March 31 of each second year thereafter, the Inspector General of the
Department of the Treasury shall submit to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House of
Representatives a report assessing, with respect to the period covered
by the report, as specified in subsection (b), the following:
(1) The effectiveness of the measures taken by U.S. Customs
and Border Protection with respect to protection of revenue,
including--
(A) the collection of countervailing duties
assessed under subtitle A of title VII of the Tariff
Act of 1930 (19 U.S.C. 1671 et seq.) and antidumping
duties assessed under subtitle B of title VII of the
Tariff Act of 1930 (19 U.S.C. 1673 et seq.);
(B) the assessment, collection, and mitigation of
commercial fines and penalties;
(C) the use of bonds, including continuous and
single transaction bonds, to secure that revenue; and
(D) the adequacy of the policies of U.S. Customs
and Border Protection with respect to the monitoring
and tracking of merchandise transported in bond and
collecting duties, as appropriate.
(2) The effectiveness of actions taken by U.S. Customs and
Border Protection to measure accountability and performance
with respect to protection of revenue.
(3) The number and outcome of investigations instituted by
U.S. Customs and Border Protection with respect to the
underpayment of duties.
(4) The effectiveness of training with respect to the
collection of duties provided for personnel of U.S. Customs and
Border Protection.
(b) Period Covered by Report.--Each report required by subsection
(a) shall cover the period of 2 fiscal years ending on September 30 of
the calendar year preceding the submission of the report.
SEC. 113. REPORT ON SECURITY AND REVENUE MEASURES WITH RESPECT TO
MERCHANDISE TRANSPORTED IN BOND.
(a) In General.--Not later than December 31 of 2016, 2017, and
2018, 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 U.S. Customs and Border Protection to
ensure the secure transportation of merchandise in bond through the
United States and the collection of revenue owed upon the entry of such
merchandise into the United States for consumption.
(b) Elements.--Each report required by subsection (a) shall
include, for the fiscal year preceding the submission of the report,
information on--
(1) the overall number of entries of merchandise for
transportation in bond through the United States;
(2) the ports at which merchandise arrives in the United
States for transportation in bond and at which records of the
arrival of such merchandise are generated;
(3) the average time taken to reconcile such records with
the records at the final destination of the merchandise in the
United States to demonstrate that the merchandise reaches its
final destination or is re-exported;
(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;
(5) the total amount of duties, taxes, and fees owed with
respect to shipments of merchandise transported in bond and the
total amount of such duties, taxes, and fees paid;
(6) the total number of notifications by carriers of
merchandise being transported in bond that the destination of
the merchandise has changed; and
(7) the number of entries that remain unreconciled.
SEC. 114. IMPORTER OF RECORD PROGRAM.
(a) Establishment.--Not later than the date that is 180 days after
the date of the enactment of this Act, the Secretary of Homeland
Security shall establish an importer of record program to assign and
maintain importer of record numbers.
(b) Requirements.--The Secretary shall ensure that, as part of the
importer of record program, U.S. Customs and Border Protection--
(1) develops criteria that importers must meet in order to
obtain an importer of record number, including--
(A) criteria to ensure sufficient information is
collected to allow U.S. Customs and Border Protection
to verify the existence of the importer requesting the
importer of record number;
(B) criteria to ensure sufficient information is
collected to allow U.S. Customs and Border Protection
to identify linkages or other affiliations between
importers that are requesting or have been assigned
importer of record numbers; and
(C) criteria to ensure sufficient information is
collected to allow U.S. Customs and Border Protection
to identify changes in address and corporate structure
of importers;
(2) provides a process by which importers are assigned
importer of record numbers;
(3) maintains a centralized database of 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);
(4) evaluates and maintains the accuracy of the database if
such information changes; and
(5) takes measures to ensure that duplicate importer of
record numbers are not issued.
(c) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary shall submit to the Committee on
Finance of the Senate and the Committee on Ways and Means of the House
of Representatives a report on the importer of record program
established under subsection (a).
(d) Number Defined.--In this subsection, the term ``number'', with
respect to an importer of record, means a filing identification number
described in section 24.5 of title 19, Code of Federal Regulations (or
any corresponding similar regulation) that fully supports the
requirements of subsection (b) with respect to the collection and
maintenance of information.
SEC. 115. 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:
``(i) Identification of Importers.--
``(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.
``(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--
``(A) collecting the identity of importers,
including nonresident importers, seeking to import
merchandise into the United States to the extent
reasonable and practicable; and
``(B) maintaining records of the information used
to substantiate a person's identity, including name,
address, and other identifying information.
``(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).
``(4) Definitions.--In this subsection, the terms
`importer' and `nonresident importer' have the meaning given
such terms in section 2 of the Customs Enhanced Enforcement and
Trade Facilitation Act of 2012.''.
(b) Study and Report Required.--Not later than 180 days after the
date of enactment of this Act, the Commissioner of U.S. Customs and
Border Protection shall submit to Congress a report containing
recommendations for--
(1) determining the most timely and effective way to
require foreign nationals to provide customs brokers with
appropriate and accurate information, comparable to that which
is required of United States nationals, concerning the
identity, address, and other related information relating to
such 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)); and
(2) establishing a system for customs brokers to review
information maintained by relevant Federal agencies for
purposes of verifying the identities of importers, including
nonresident importers, seeking to import merchandise into the
United States.
SEC. 116. ESTABLISHMENT OF NEW IMPORTER PROGRAM.
(a) In General.--Not later than the date that is 180 days after the
date of the enactment of this Act, the Commissioner shall establish a
new importer program that directs U.S. Customs and Border Protection to
adjust bond amounts for new importers based on the level of risk
assessed by U.S. Customs and Border Protection for protection of
revenue of the Federal Government.
(b) Requirements.--The Commissioner shall ensure that, as part of
the new importer program established under subsection (a), U.S. Customs
and Border Protection--
(1) develops risk-based criteria for determining which
importers are considered to be new importers for the purposes
of this subsection;
(2) develops risk assessment guidelines for new importers
to determine if and to what extent--
(A) to adjust bond amounts of imported products of
new importers; and
(B) to increase screening of imported products of
new importers;
(3) 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 111(a) of
this Act;
(4) develops procedures to ensure increased oversight of
imported products of new importers by Centers of Excellence and
Expertise established under section 110 of this Act; and
(5) establishes a centralized database of new importers to
ensure accuracy of information that is required to be provided
by new importers to U.S. Customs and Border Protection.
SEC. 117. 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:
``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 responsible for 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).
``(b) Requirements.--The requirements described in this subsection
are the following:
``(1) The resident agent shall be authorized to accept
service of process against the non-resident importer in
connection with the importation of merchandise.
``(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.
``(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.
``(4) The Commissioner responsible for 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.
``(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.).
``(d) Penalties.--
``(1) In general.--It shall be unlawful for any person to
import into the United States any merchandise in violation of
this section.
``(2) Civil penalties.--Any person who violates paragraph
(1) shall be liable for a civil penalty of $50,000 for each
such violation.
``(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.
``(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 Trade Enforcement and Trade
Facilitation Act of 2015.''.
(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, on or after the
date that is 180 days after such date of enactment, 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.
SEC. 118. SINGLE ENTRY BOND FOR SUSPECTED EVASION.
(a) In General.--The Tariff Act of 1930 is amended by inserting
after section 516A (19 U.S.C. 1516a) the following:
``SEC. 516B. SINGLE ENTRY BOND FOR SUSPECTED EVASION.
``(a) Definitions.--In this section:
``(1) Enter; entry.--The terms `enter' and `entry' refer to
the entry, or withdrawal from warehouse for consumption, in the
customs territory of the United States.
``(2) Evade; evasion.--The terms `evade' and `evasion'
refer to entering covered merchandise into the customs
territory of the United States by means of any document or
electronically transmitted data or information, written or oral
statement, or act that is material and false, or any omission
that is material, and that results in any cash deposit or other
security or any amount of applicable antidumping or
countervailing duties being reduced or not being applied with
respect to the merchandise.
``(3) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(b) Single Entry Bond.--The Secretary shall require a single
entry bond, in addition to any continuous bond, in any case in which
the Secretary has a reasonable belief, based on evidence, that
merchandise--
``(1) may be subject to an order issued under section 706
or section 736; and
``(2) is being entered into the United States by means of
evasion.
The bond shall be set at an amount the Secretary determines sufficient
to protect revenue and to ensure compliance with the law, regulations,
and instructions that the Secretary is authorized to enforce.''.
(b) Technical Amendment.--Section 514(b) of the Tariff Act of 1930
(19 U.S.C. 1514(b)) is amended by striking ``section 303'' and all that
follows through ``which are reviewable'' and inserting ``title VII that
are reviewable''.
TITLE II--IMPORT HEALTH AND SAFETY
SEC. 201. INTERAGENCY IMPORT SAFETY WORKING GROUP.
(a) Establishment.--There is established an interagency Import
Safety Working Group.
(b) Membership.--The interagency Import Safety Working Group shall
consist of the following officials or their designees:
(1) The Secretary of Homeland Security, who shall serve as
the Chair.
(2) The Secretary of Health and Human Services, who shall
serve as the Vice Chair.
(3) The Secretary of the Treasury.
(4) The Secretary of Commerce.
(5) The Secretary of Agriculture.
(6) The United States Trade Representative.
(7) The Director of the Office of Management and Budget.
(8) The Commissioner of Food and Drugs.
(9) The Commissioner responsible for U.S. Customs and
Border Protection.
(10) The Chairman of the Consumer Product Safety
Commission.
(11) The Director of U.S. Immigration and Customs
Enforcement.
(12) The head of any other Federal agency designated by the
President to participate in the interagency Import Safety
Working Group, as appropriate.
(c) Duties.--The duties of the interagency Import Safety Working
Group shall include--
(1) consulting on the development of the joint import
safety rapid response plan required by section 202 of this Act;
(2) periodically evaluating the adequacy of the plans,
practices, and resources of the Federal Government dedicated to
ensuring the safety of merchandise imported in the United
States and the expeditious entry of such merchandise,
including--
(A) minimizing the duplication of efforts among
agencies the heads of which are members of the
interagency Import Safety Working Group and ensuring
the compatibility of the policies and regulations of
those agencies; and
(B) recommending additional administrative actions,
as appropriate, designed to ensure the safety of
merchandise imported into the United States and the
expeditious entry of such merchandise and considering
the impact of those actions on private sector entities;
(3) reviewing the engagement and cooperation of foreign
governments and foreign manufacturers in facilitating the
inspection and certification, as appropriate, of such
merchandise to be imported into the United States and the
facilities producing such merchandise to ensure the safety of
the merchandise and the expeditious entry of the merchandise
into the United States;
(4) identifying best practices, in consultation with
private sector entities as appropriate, to assist United States
importers in taking all appropriate steps to ensure the safety
of merchandise imported into the United States, including with
respect to--
(A) the inspection of manufacturing facilities in
foreign countries;
(B) the inspection of merchandise destined for the
United States before exportation from a foreign country
or before distribution in the United States; and
(C) the protection of the international supply
chain (as defined in section 2 of the Security and
Accountability For Every Port Act of 2006 (6 U.S.C.
901));
(5) identifying best practices to assist Federal, State,
and local governments and agencies, and port authorities, to
improve communication and coordination among such agencies and
authorities with respect to ensuring the safety of merchandise
imported into the United States and the expeditious entry of
such merchandise; and
(6) otherwise identifying appropriate steps to increase the
accountability of United States importers and the engagement of
foreign government agencies with respect to ensuring the safety
of merchandise imported into the United States and the
expeditious entry of such merchandise.
SEC. 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN.
(a) In General.--Not later than December 31, 2016, the Secretary of
Homeland Security, in consultation with the interagency Import Safety
Working Group, shall develop a plan (to be known as the ``joint import
safety rapid response plan'') that sets forth protocols and defines
practices for U.S. Customs and Border Protection to use--
(1) in taking action in response to, and coordinating
Federal responses to, an incident in which cargo destined for
or merchandise entering the United States has been identified
as posing a threat to the health or safety of consumers in the
United States; and
(2) in recovering from or mitigating the effects of actions
and responses to an incident described in paragraph (1).
(b) Contents.--The joint import safety rapid response plan shall
address--
(1) the statutory and regulatory authorities and
responsibilities of U.S. Customs and Border Protection and
other Federal agencies in responding to an incident described
in subsection (a)(1);
(2) the protocols and practices to be used by U.S. Customs
and Border Protection when taking action in response to, and
coordinating Federal responses to, such an incident;
(3) the measures to be taken by U.S. Customs and Border
Protection and other Federal agencies in recovering from or
mitigating the effects of actions taken in response to such an
incident after the incident to ensure the resumption of the
entry of merchandise into the United States; and
(4) exercises that U.S. Customs and Border Protection may
conduct in conjunction with Federal, State, and local agencies,
and private sector entities, to simulate responses to such an
incident.
(c) Updates of Plan.--The Secretary of Homeland Security shall
review and update the joint import safety rapid response plan, as
appropriate, after conducting exercises under subsection (d).
(d) Import Health and Safety Exercises.--
(1) In general.--The Secretary of Homeland Security and the
Commissioner shall periodically engage in the exercises
referred to in subsection (b)(4), in conjunction with Federal,
State, and local agencies and private sector entities, as
appropriate, to test and evaluate the protocols and practices
identified in the joint import safety rapid response plan at
United States ports of entry.
(2) Requirements for exercises.--In conducting exercises
under paragraph (1), the Secretary and the Commissioner shall--
(A) make allowance for the resources, needs, and
constraints of United States ports of entry of
different sizes in representative geographic locations
across the United States;
(B) base evaluations on current risk assessments of
merchandise entering the United States at
representative United States ports of entry located
across the United States;
(C) ensure that such exercises are conducted in a
manner consistent with the National Incident Management
System, the National Response Plan, the National
Infrastructure Protection Plan, the National
Preparedness Guidelines, the Maritime Transportation
System Security Plan, and other such national
initiatives of the Department of Homeland Security, as
appropriate; and
(D) develop metrics with respect to the resumption
of the entry of merchandise into the United States
after an incident described in subsection (a)(1).
(3) Requirements for testing and evaluation.--The Secretary
and the Commissioner shall ensure that the testing and
evaluation carried out in conducting exercises under paragraph
(1)--
(A) are performed using clear and objective
performance measures; and
(B) result in the identification of specific
recommendations or best practices for responding to an
incident described in subsection (a)(1).
(4) Dissemination of recommendations and best practices.--
The Secretary and the Commissioner shall--
(A) share the recommendations or best practices
identified under paragraph (3)(B) among the members of
the interagency Import Safety Working Group and with,
as appropriate--
(i) State, local, and tribal governments;
(ii) foreign governments; and
(iii) private sector entities; and
(B) use such recommendations and best practices to
update the joint import safety rapid response plan.
SEC. 203. TRAINING.
The Commissioner shall ensure that personnel of U.S. Customs and
Border Protection assigned to United States ports of entry are trained
to effectively administer the provisions of this title and to otherwise
assist in ensuring the safety of merchandise imported into the United
States and the expeditious entry of such merchandise.
TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
SEC. 301. DEFINITION OF INTELLECTUAL PROPERTY RIGHTS.
In this title, the term ``intellectual property rights'' refers to
copyrights, trademarks, and other forms of intellectual property rights
that are enforced by U.S. Customs and Border Protection or U.S.
Immigration and Customs Enforcement.
SEC. 302. 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:
``SEC. 628A. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT.
``(a) In General.--Subject to subsections (c) and (d), if the
Commissioner responsible for U.S. Customs and Border Protection
suspects that merchandise is being imported into the United States in
violation of section 526 of this Act or section 602, 1201(a)(2), or
1201(b)(1) of title 17, United States Code, and determines that the
examination or testing of the merchandise by a person described in
subsection (b) would assist the Commissioner in determining if the
merchandise is being imported in violation of that section, the
Commissioner, to permit the person to conduct the examination and
testing--
``(1) shall provide to the person information that appears
on the merchandise and its packaging and labels, including
unredacted images of the merchandise and its packaging and
labels; and
``(2) may, subject to any applicable bonding requirements,
provide to the person unredacted samples of the merchandise.
``(b) Person Described.--A person described in this subsection is--
``(1) in the case of merchandise suspected of being
imported in violation of section 526, the owner of the
trademark suspected of being copied or simulated by the
merchandise;
``(2) in the case of merchandise suspected of being
imported in violation of section 602 of title 17, United States
Code, the owner of the copyright suspected of being infringed
by the merchandise;
``(3) in the case of merchandise suspected of being
primarily designed or produced for the purpose of circumventing
a technological measure that effectively controls access to a
work protected under that title, and being imported in
violation of section 1201(a)(2) of that title, the owner of a
copyright in the work; and
``(4) in the case of merchandise suspected of being
primarily designed or produced for the purpose of circumventing
protection afforded by a technological measure that effectively
protects a right of an owner of a copyright in a work or a
portion of a work, and being imported in violation of section
1201(b)(1) of that title, the owner of the copyright.
``(c) Limitation.--Subsection (a) applies only with respect to
merchandise suspected of infringing a trademark or copyright that is
recorded with U.S. Customs and Border Protection.
``(d) Exception.--The Commissioner may not provide under subsection
(a) information, photographs, or samples to a person described in
subsection (b) if providing such information, photographs, or samples
would compromise an ongoing law enforcement investigation or national
security.''.
SEC. 303. SEIZURE OF CIRCUMVENTION DEVICES.
(a) In General.--Section 596(c)(2) of the Tariff Act of 1930 (19
U.S.C. 1595a(c)(2)) is amended--
(1) in subparagraph (E), by striking ``or'';
(2) in subparagraph (F), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(G) U.S. Customs and Border Protection determines
it is a technology, product, service, device,
component, or part thereof the importation of which is
prohibited under subsection (a)(2) or (b)(1) of section
1201 of title 17, United States Code.''.
(b) Notification of Persons Injured.--
(1) In general.--Not later than the date that is 30
business days after seizing merchandise pursuant to
subparagraph (G) of section 596(c)(2) of the Tariff Act of
1930, as added by subsection (a), the Commissioner shall
provide to any person identified under paragraph (2)
information regarding the merchandise seized that is equivalent
to information provided to copyright owners under regulations
of U.S. Customs and Border Protection for merchandise seized
for violation of the copyright laws.
(2) Persons to be provided information.--Any person injured
by the violation of (a)(2) or (b)(1) of section 1201 of title
17, United States Code, that resulted in the seizure of the
merchandise shall be provided information under paragraph (1),
if that person is included on a list maintained by the
Commissioner that is revised annually through publication in
the Federal Register.
(3) Regulations.--Not later than one year after the date of
the enactment of this Act, the Secretary of the Treasury shall
prescribe regulations establishing procedures that implement
this subsection.
SEC. 304. ENFORCEMENT BY U.S. CUSTOMS AND BORDER PROTECTION OF WORKS
FOR WHICH COPYRIGHT REGISTRATION IS PENDING.
Not later than the date that is 180 days after the date of the
enactment of this Act, the Secretary of Homeland Security shall
authorize a process pursuant to which the Commissioner shall enforce a
copyright for which the owner has submitted an application for
registration under title 17, United States Code, with the United States
Copyright Office, to the same extent and in the same manner as if the
copyright were registered with the Copyright Office, including by
sharing information, images, and samples of merchandise suspected of
infringing the copyright under section 628A of the Tariff Act of 1930,
as added by section 302.
SEC. 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS COORDINATION CENTER.
(a) Establishment.--The Secretary of Homeland Security shall--
(1) establish within U.S. Immigration and Customs
Enforcement a National Intellectual Property Rights
Coordination Center; and
(2) appoint an Assistant Director to head the National
Intellectual Property Rights Coordination Center.
(b) Duties.--The Assistant Director of the National Intellectual
Property Rights Coordination Center shall--
(1) coordinate the investigation of sources of merchandise
that infringe intellectual property rights to identify
organizations and individuals that produce, smuggle, or
distribute such merchandise;
(2) conduct and coordinate training with other domestic and
international law enforcement agencies on investigative best
practices--
(A) to develop and expand the capability of such
agencies to enforce intellectual property rights; and
(B) to develop metrics to assess whether the
training improved enforcement of intellectual property
rights;
(3) coordinate, with U.S. Customs and Border Protection,
activities conducted by the United States to prevent the
importation or exportation of merchandise that infringes
intellectual property rights;
(4) support the international interdiction of merchandise
destined for the United States that infringes intellectual
property rights;
(5) collect and integrate information regarding
infringement of intellectual property rights from domestic and
international law enforcement agencies and other non-Federal
sources;
(6) develop a means to receive and organize information
regarding infringement of intellectual property rights from
such agencies and other sources;
(7) disseminate information regarding infringement of
intellectual property rights to other Federal agencies, as
appropriate;
(8) develop and implement risk-based alert systems, in
coordination with U.S. Customs and Border Protection, to
improve the targeting of persons that repeatedly infringe
intellectual property rights;
(9) coordinate with the offices of United States attorneys
in order to develop expertise in, and assist with the
investigation and prosecution of, crimes relating to the
infringement of intellectual property rights; and
(10) carry out such other duties as the Secretary of
Homeland Security may assign.
(c) Coordination With Other Agencies.--In carrying out the duties
described in subsection (b), the Assistant Director of the National
Intellectual Property Rights Coordination Center shall coordinate
with--
(1) U.S. Customs and Border Protection;
(2) the Food and Drug Administration;
(3) the Department of Justice;
(4) the Department of Commerce, including the United States
Patent and Trademark Office;
(5) the United States Postal Inspection Service;
(6) the Office of the United States Trade Representative;
(7) any Federal, State, local, or international law
enforcement agencies that the Director of U.S. Immigration and
Customs Enforcement considers appropriate; and
(8) any other entities that the Director considers
appropriate.
(d) Private Sector Outreach.--
(1) In general.--The Assistant Director of the National
Intellectual Property Rights Coordination Center shall work
with U.S. Customs and Border Protection and other Federal
agencies to conduct outreach to private sector entities in
order to determine trends in and methods of infringing
intellectual property rights.
(2) Information sharing.--The Assistant Director shall
share information and best practices with respect to the
enforcement of intellectual property rights with private sector
entities, as appropriate, in order to coordinate public and
private sector efforts to combat the infringement of
intellectual property rights.
SEC. 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT OF INTELLECTUAL
PROPERTY RIGHTS.
The Commissioner and the Director of U.S. Immigration and Customs
Enforcement shall include in the joint strategic plan required by
section 105 of this Act--
(1) a description of the efforts of the Department of
Homeland Security to enforce intellectual property rights;
(2) a list of the 10 United States ports of entry at which
U.S. Customs and Border Protection has seized the most
merchandise, both by volume and by value, that infringes
intellectual property rights during the most recent 2-year
period for which data are available; and
(3) a recommendation for the optimal allocation of
personnel, resources, and technology to ensure that U.S.
Customs and Border Protection and U.S. Immigration and Customs
Enforcement are adequately enforcing intellectual property
rights.
SEC. 307. PERSONNEL DEDICATED TO THE ENFORCEMENT OF INTELLECTUAL
PROPERTY RIGHTS.
(a) Personnel of U.S. Customs and Border Protection.--The
Commissioner and the Director of U.S. Immigration and Customs
Enforcement shall ensure that sufficient personnel are assigned
throughout U.S. Customs and Border Protection and U.S. Immigration and
Customs Enforcement, respectively, who have responsibility for
preventing the importation into the United States of merchandise that
infringes intellectual property rights.
(b) Staffing of National Intellectual Property Rights Coordination
Center.--The Commissioner shall--
(1) assign not fewer than 3 full-time employees of U.S.
Customs and Border Protection to the National Intellectual
Property Rights Coordination Center established under section
305 of this Act; and
(2) ensure that sufficient personnel are assigned to United
States ports of entry to carry out the directives of the
Center.
SEC. 308. TRAINING WITH RESPECT TO THE ENFORCEMENT OF INTELLECTUAL
PROPERTY RIGHTS.
(a) Training.--The Commissioner shall ensure that officers of U.S.
Customs and Border Protection are trained to effectively detect and
identify merchandise destined for the United States that infringes
intellectual property rights, including through the use of technologies
identified under subsection (c).
(b) Consultation With Private Sector.--The Commissioner shall
consult with private sector entities to better identify opportunities
for collaboration between U.S. Customs and Border Protection and such
entities with respect to training for officers of U.S. Customs and
Border Protection in enforcing intellectual property rights.
(c) Identification of New Technologies.--In consultation with
private sector entities, the Commissioner shall identify--
(1) technologies with the cost-effective capability to
detect and identify merchandise at United States ports of entry
that infringes intellectual property rights; and
(2) cost-effective programs for training officers of U.S.
Customs and Border Protection to use such technologies.
(d) Donations of Technology.--Not later than the date that is 180
days after the date of the enactment of this Act, the Commissioner
shall prescribe regulations to enable U.S. Customs and Border
Protection to receive donations of hardware, software, equipment, and
similar technologies, and to accept training and other support
services, from private sector entities, for the purpose of enforcing
intellectual property rights.
SEC. 309. INTERNATIONAL COOPERATION AND INFORMATION SHARING.
(a) Cooperation.--The Secretary of Homeland Security shall
coordinate with the competent law enforcement and customs authorities
of foreign countries, including by sharing information relevant to
enforcement actions, to enhance the efforts of the United States and
such authorities to enforce intellectual property rights.
(b) Technical Assistance.--The Secretary of Homeland Security shall
provide technical assistance to competent law enforcement and customs
authorities of foreign countries to enhance the ability of such
authorities to enforce intellectual property rights.
(c) Interagency Collaboration.--The Commissioner and the Director
of U.S. Immigration and Customs Enforcement shall lead interagency
efforts to collaborate with law enforcement and customs authorities of
foreign countries to enforce intellectual property rights.
SEC. 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT.
Not later than June 30, 2016, and annually thereafter, the
Commissioner and the Director of U.S. Immigration and Customs
Enforcement shall jointly submit to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives a report that contains the following:
(1) With respect to the enforcement of intellectual
property rights, the following:
(A) The number of referrals from U.S. Customs and
Border Protection to U.S. Immigration and Customs
Enforcement relating to infringement of intellectual
property rights during the preceding year.
(B) The number of investigations relating to the
infringement of intellectual property rights referred
by U.S. Immigration and Customs Enforcement to a United
States attorney for prosecution and the United States
attorneys to which those investigations were referred.
(C) The number of such investigations accepted by
each such United States attorney and the status or
outcome of each such investigation.
(D) The number of such investigations that resulted
in the imposition of civil or criminal penalties.
(E) A description of the efforts of U.S. Custom and
Border Protection and U.S. Immigration and Customs
Enforcement to improve the success rates of
investigations and prosecutions relating to the
infringement of intellectual property rights.
(2) An estimate of the average time required by the Office
of International Trade of U.S. Customs and Border Protection to
respond to a request from port personnel for advice with
respect to whether merchandise detained by U.S. Customs and
Border Protection infringed intellectual property rights,
distinguished by types of intellectual property rights
infringed.
(3) A summary of the outreach efforts of U.S. Customs and
Border Protection and U.S. Immigration and Customs Enforcement
with respect to--
(A) the interdiction and investigation of, and the
sharing of information between those agencies and other
Federal agencies to prevent the infringement of
intellectual property rights;
(B) collaboration with private sector entities--
(i) to identify trends in the infringement
of, and technologies that infringe,
intellectual property rights;
(ii) to identify opportunities for enhanced
training of officers of U.S. Customs and Border
Protection and U.S. Immigration and Customs
Enforcement; and
(iii) to develop best practices to enforce
intellectual property rights; and
(C) coordination with foreign governments and
international organizations with respect to the
enforcement of intellectual property rights.
(4) A summary of the efforts of U.S. Customs and Border
Protection and U.S. Immigration and Customs Enforcement to
address the challenges with respect to the enforcement of
intellectual property rights presented by Internet commerce and
the transit of small packages and an identification of the
volume, value, and type of merchandise seized for infringing
intellectual property rights as a result of such efforts.
(5) A summary of training relating to the enforcement of
intellectual property rights conducted under section 308 of
this Act and expenditures for such training.
SEC. 311. INFORMATION FOR TRAVELERS REGARDING VIOLATIONS OF
INTELLECTUAL PROPERTY RIGHTS.
(a) In General.--The Secretary of Homeland Security shall develop
and carry out an educational campaign to inform travelers entering or
leaving the United States about the legal, economic, and public health
and safety implications of acquiring merchandise that infringes
intellectual property rights outside the United States and importing
such merchandise into the United States in violation of United States
law.
(b) Declaration Forms.--The Commissioner shall ensure that all
versions of Declaration Form 6059B of U.S. Customs and Border
Protection, or a successor form, including any electronic equivalent of
Declaration Form 6059B or a successor form, printed or displayed on or
after the date that is 30 days after the date of the enactment of this
Act include a written warning to inform travelers arriving in the
United States that importation of merchandise into the United States
that infringes intellectual property rights may subject travelers to
civil or criminal penalties and may pose serious risks to safety or
health.
TITLE IV--MISCELLANEOUS PROVISIONS
SEC. 401. DE MINIMIS VALUE.
(a) De Minimis Value.--Section 321(a)(2)(C) of the Tariff Act of
1930 (19 U.S.C. 1321(a)(2)(C)) is amended by striking ``$200'' and
inserting ``$800''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to articles entered, or withdrawn from warehouse for
consumption, on or after the 15th day after the date of the enactment
of this Act.
SEC. 402. CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNCTIONS.
Section 401(c) of the Safety and Accountability for Every Port Act
(6 U.S.C. 115(c)) is amended--
(1) in paragraph (1), by striking ``on Department policies
and actions that have'' and inserting ``not later than 30 days
after proposing, and not later than 30 days before finalizing,
any Department policies, initiatives, or actions that will
have''; and
(2) in paragraph (2)(A), by striking ``not later than 30
days prior to the finalization of'' and inserting ``not later
than 60 days before proposing, and not later than 60 days
before finalizing,''.
SEC. 403. PENALTIES FOR CUSTOMS BROKERS.
(a) In General.--Section 641(d)(1) of the Tariff Act of 1930 (19
U.S.C. 1641(d)(1)) is amended--
(1) in subparagraph (E), by striking ``; or'' and inserting
a semicolon;
(2) in subparagraph (F), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(G) has been convicted of committing or
conspiring to commit an act of terrorism described in
section 2332b of title 18, United States Code.''.
(b) Technical Amendments.--Section 641 of the Tariff Act of 1930
(19 U.S.C. 1641) is amended--
(1) by striking ``the Customs Service'' each place it
appears and inserting ``U.S. Customs and Border Protection'';
(2) in subsection (d)(2)(B), by striking ``The Customs
Service'' and inserting ``U.S. Customs and Border Protection'';
and
(3) in subsection (g)(2)(B), by striking ``Secretary's
notice'' and inserting ``notice under subparagraph (A)''.
SEC. 404. AMENDMENTS TO CHAPTER 98 OF THE HARMONIZED TARIFF SCHEDULE OF
THE UNITED STATES.
(a) Articles Exported and Returned, Advanced or Improved Abroad.--
(1) In general.--U.S. Note 3 to subchapter II of chapter 98
of the Harmonized Tariff Schedule of the United States is
amended by adding at the end the following:
``(f)(1) For purposes of subheadings 9802.00.40 and 9802.00.50,
fungible articles exported from the United States for the purposes
described in such subheadings--
``(A) may be commingled; and
``(B) the origin, value, and classification of such
articles may be accounted for using an inventory management
method.
``(2) If a person chooses to use an inventory management method
under this paragraph with respect to fungible articles, the person
shall use the same inventory management method for any other articles
with respect to which the person claims fungibility under this
paragraph.
``(3) For the purposes of this paragraph--
``(A) the term `fungible articles' means merchandise or
articles that, for commercial purposes, are identical or
interchangeable in all situations; and
``(B) the term `inventory management method' means any
method for managing inventory that is based on generally
accepted accounting principles.''.
(2) Effective date.--The amendment made by this subsection
applies to articles classifiable under subheading 9802.00.40 or
9802.00.50 of the Harmonized Tariff Schedule of the United
States that are entered, or withdrawn from warehouse for
consumption, on or after the date that is 60 days after the
date of the enactment of this Act.
(b) Modification of Provisions Relating to Returned Property.--
(1) In general.--The article description for heading
9801.00.10 of the Harmonized Tariff Schedule of the United
States is amended by inserting after ``exported'' the
following: ``, or any other products when returned within 3
years after having been exported''.
(2) Effective date.--The amendment made by paragraph (1)
applies to articles entered, or withdrawn from warehouse for
consumption, on or after the date that is 60 days after the
date of the enactment of this Act.
(c) Duty-Free Treatment for Certain United States Government
Property Returned to the United States.--
(1) In general.--Subchapter I of chapter 98 of the
Harmonized Tariff Schedule of the United States is amended by
inserting in numerical sequence the following new heading:
`` 9801.00.11 United States Free ............... ............... ............... ''.
Government
property,
returned to the
United States
without having
been advanced in
value or improved
in condition by
any means while
abroad, entered
by the United
States Government
or a contractor
to the United
States
Government, and
certified by the
importer as
United States
Government
property.........
(2) Effective date.--The amendment made by paragraph (1)
applies to goods entered, or withdrawn from warehouse for
consumption, on or after the date that is 60 days after the
date of the enactment of this Act.
SEC. 405. EXEMPTION FROM DUTY OF RESIDUE OF BULK CARGO CONTAINED IN
INSTRUMENTS OF INTERNATIONAL TRAFFIC PREVIOUSLY EXPORTED
FROM THE UNITED STATES.
(a) In General.--General Note 3(e) of the Harmonized Tariff
Schedule of the United States is amended--
(1) in subparagraph (v), by striking ``and'' at the end;
(2) in subparagraph (vi), by adding ``and'' at the end;
(3) by inserting after subparagraph (vi) (as so amended)
the following new subparagraph:
``(vii) residue of bulk cargo contained in
instruments of international traffic previously
exported from the United States,''; and
(4) by adding at the end of the flush text following
subparagraph (vii) (as so added) the following: ``For purposes
of subparagraph (vii) of this paragraph: The term `residue'
means material of bulk cargo that remains in an instrument of
international traffic after the bulk cargo is removed, with a
quantity, by weight or volume, not exceeding 7 percent of the
bulk cargo, and with no or de minimis value. The term `bulk
cargo' means cargo that is unpackaged and is in either solid,
liquid, or gaseous form. The term `instruments of international
traffic' means containers or holders, capable of and suitable
for repeated use, such as lift vans, cargo vans, shipping
tanks, skids, pallets, caul boards, and cores for textile
fabrics, arriving (whether loaded or empty) in use or to be
used in the shipment of merchandise in international traffic,
and any additional articles or classes of articles that the
Commissioner responsible for U.S. Customs and Border Protection
designates as instruments of international traffic.''.
(b) Effective Date.--The amendments made by subsection (a) take
effect on the date of the enactment of this Act and apply with respect
to residue of bulk cargo contained in instruments of international
traffic that are imported into the customs territory of the United
States on or after such date of enactment and that previously have been
exported from the United States.
SEC. 406. DRAWBACK AND REFUNDS.
(a) Articles Made From Imported Merchandise.--Section 313(a) of the
Tariff Act of 1930 (19 U.S.C. 1313(a)) is amended by striking ``the
full amount of the duties paid upon the merchandise so used shall be
refunded as drawback, less 1 per centum of such duties, except that
such'' and inserting ``an amount calculated pursuant to regulations
prescribed by the Secretary of the Treasury under subsection (l) shall
be refunded as drawback, except that''.
(b) Substitution for Drawback Purposes.--Section 313(b) of the
Tariff Act of 1930 (19 U.S.C. 1313(b)) is amended--
(1) by striking ``If imported'' and inserting the
following:
``(1) In general.--If imported'';
(2) by striking ``and any other merchandise (whether
imported or domestic) of the same kind and quality are'' and
inserting ``or merchandise classifiable under the same 8-digit
HTS subheading number as such imported merchandise is'';
(3) by striking ``three years'' and inserting ``5 years'';
(4) by striking ``the receipt of such imported merchandise
by the manufacturer or producer of such articles'' and
inserting ``the date of importation of such imported
merchandise'';
(5) by striking ``an amount of drawback equal to'' and all
that follows through the end period and inserting ``an amount
calculated pursuant to regulations prescribed by the Secretary
of the Treasury under subsection (l), but only if those
articles have not been used prior to such exportation or
destruction.''; and
(6) by adding at the end the following:
``(2) Requirements relating to transfer of merchandise.--
``(A) Manufacturers and producers.--Drawback shall
be allowed under paragraph (1) with respect to an
article manufactured or produced using imported
merchandise or other merchandise classifiable under the
same 8-digit HTS subheading number as such imported
merchandise only if the manufacturer or producer of the
article received such imported merchandise or such
other merchandise, directly or indirectly, from the
importer.
``(B) Exporters and destroyers.--Drawback shall be
allowed under paragraph (1) with respect to a
manufactured or produced article that is exported or
destroyed only if the exporter or destroyer received
that article or an article classifiable under the same
8-digit HTS subheading number as that article, directly
or indirectly, from the manufacturer or producer.
``(C) Evidence of transfer.--Transfers of
merchandise under subparagraph (A) and transfers of
articles under subparagraph (B) may be evidenced by
business records kept in the normal course of business
and no additional certificates of transfer or
manufacture shall be required.
``(3) Submission of bill of materials or formula.--
``(A) In general.--Drawback shall be allowed under
paragraph (1) with respect to an article manufactured
or produced using imported merchandise or other
merchandise classifiable under the same 8-digit HTS
subheading number as such imported merchandise only if
the person making the drawback claim submits with the
claim a bill of materials or formula identifying the
merchandise and article by the 8-digit HTS subheading
number and the quantity of the merchandise.
``(B) Bill of materials and formula defined.--In
this paragraph, the terms `bill of materials' and
`formula' mean records kept in the normal course of
business that identify each component incorporated into
a manufactured or produced article or that identify the
quantity of each element, material, chemical, mixture,
or other substance incorporated into a manufactured
article.
``(4) Special rule for sought chemical elements.--
``(A) In general.--For purposes of paragraph (1), a
sought chemical element may be--
``(i) considered imported merchandise, or
merchandise classifiable under the same 8-digit
HTS subheading number as such imported
merchandise, used in the manufacture or
production of an article as described in
paragraph (1); and
``(ii) substituted for source material
containing that sought chemical element,
without regard to whether the sought chemical
element and the source material are
classifiable under the same 8-digit HTS
subheading number, and apportioned
quantitatively, as appropriate.
``(B) Sought chemical element defined.--In this
paragraph, the term `sought chemical element' means an
element listed in the Periodic Table of Elements that
is imported into the United States or a chemical
compound consisting of those elements, either
separately in elemental form or contained in source
material.''.
(c) Merchandise Not Conforming to Sample or Specifications.--
Section 313(c) of the Tariff Act of 1930 (19 U.S.C. 1313(c)) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (C)(ii), by striking ``under a
certificate of delivery'' each place it appears;
(B) in subparagraph (D)--
(i) by striking ``3'' and inserting ``5'';
and
(ii) by striking ``the Customs Service''
and inserting ``U.S. Customs and Border
Protection''; and
(C) in the flush text at the end, by striking ``the
full amount of the duties paid upon such merchandise,
less 1 percent,'' and inserting ``an amount calculated
pursuant to regulations prescribed by the Secretary of
the Treasury under subsection (l)'';
(2) in paragraph (2), by striking ``the Customs Service''
and inserting ``U.S. Customs and Border Protection''; and
(3) by amending paragraph (3) to read as follows:
``(3) Evidence of transfers.--Transfers of merchandise
under paragraph (1) may be evidenced by business records kept
in the normal course of business and no additional certificates
of transfer shall be required.''.
(d) Proof of Exportation.--Section 313(i) of the Tariff Act of 1930
(19 U.S.C. 1313(i)) is amended to read as follows:
``(i) Proof of Exportation.--A person claiming drawback under this
section based on the exportation of an article shall provide proof of
the exportation of the article. Such proof of exportation--
``(1) shall establish fully the date and fact of
exportation and the identity of the exporter; and
``(2) may be established through the use of records kept in
the normal course of business or through an electronic export
system of the United States Government, as determined by the
Commissioner responsible for U.S. Customs and Border
Protection.''.
(e) Unused Merchandise Drawback.--Section 313(j) of the Tariff Act
of 1930 (19 U.S.C. 1313(j)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), in the matter preceding
clause (i)--
(i) by striking ``3-year'' and inserting
``5-year''; and
(ii) by inserting ``and before the drawback
claim is filed'' after ``the date of
importation''; and
(B) in the flush text at the end, by striking ``99
percent of the amount of each duty, tax, or fee so
paid'' and inserting ``an amount calculated pursuant to
regulations prescribed by the Secretary of the Treasury
under subsection (l)'';
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by
striking ``paragraph (4)'' and inserting ``paragraphs
(4), (5), and (6)'';
(B) in subparagraph (A), by striking ``commercially
interchangeable with'' and inserting ``classifiable
under the same 8-digit HTS subheading number as'';
(C) in subparagraph (B)--
(i) by striking ``3-year'' and inserting
``5-year''; and
(ii) by inserting ``and before the drawback
claim is filed'' after ``the imported
merchandise'';
(D) in subparagraph (C)(ii), by striking subclause
(II) and inserting the following:
``(II) received the imported
merchandise, other merchandise
classifiable under the same 8-digit HTS
subheading number as such imported
merchandise, or any combination of such
imported merchandise and such other
merchandise, directly or indirectly
from the person who imported and paid
any duties, taxes, and fees imposed
under Federal law upon importation or
entry and due on the imported
merchandise (and any such transferred
merchandise, regardless of its origin,
will be treated as the imported
merchandise and any retained
merchandise will be treated as domestic
merchandise);''; and
(E) in the flush text at the end, by striking ``the
amount of each such duty, tax, and fee'' and all that
follows through ``99 percent of that duty, tax, or
fee'' and inserting ``an amount calculated pursuant to
regulations prescribed by the Secretary of the Treasury
under subsection (l) shall be refunded as drawback'';
(3) in paragraph (3)(B), by striking ``the commercially
interchangeable merchandise'' and inserting ``merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise''; and
(4) by adding at the end the following:
``(5)(A) For purposes of paragraph (2) and except as
provided in subparagraph (B), merchandise may not be
substituted for imported merchandise for drawback purposes
based on the 8-digit HTS subheading number if the article
description for the 8-digit HTS subheading number under which
the imported merchandise is classified begins with the term
`other'.
``(B) In cases described in subparagraph (A), merchandise
may be substituted for imported merchandise for drawback
purposes if--
``(i) the other merchandise and such imported
merchandise are classifiable under the same 10-digit
HTS statistical reporting number; and
``(ii) the article description for that 10-digit
HTS statistical reporting number does not begin with
the term `other'.
``(6)(A) For purposes of paragraph (2), a drawback claimant
may use the first 8 digits of the 10-digit Schedule B number
for merchandise or an article to determine if the merchandise
or article is classifiable under the same 8-digit HTS
subheading number as the imported merchandise, without regard
to whether the Schedule B number corresponds to more than one
8-digit HTS subheading number.
``(B) In this paragraph, the term `Schedule B' means the
Department of Commerce Schedule B, Statistical Classification
of Domestic and Foreign Commodities Exported from the United
States.''.
(f) Liability for Drawback Claims.--Section 313(k) of the Tariff
Act of 1930 (19 U.S.C. 1313(k)) is amended to read as follows:
``(k) Liability for Drawback Claims.--
``(1) In general.--Any person making a claim for drawback
under this section shall be liable for the full amount of the
drawback claimed.
``(2) Liability of importers.--An importer shall be liable
for any drawback claim made by another person with respect to
merchandise imported by the importer in an amount equal to the
lesser of--
``(A) the amount of duties, taxes, and fees that
the person claimed with respect to the imported
merchandise; or
``(B) the amount of duties, taxes, and fees that
the importer authorized the other person to claim with
respect to the imported merchandise.
``(3) Joint and several liability.--Persons described in
paragraphs (1) and (2) shall be jointly and severally liable
for the amount described in paragraph (2).''.
(g) Regulations.--Section 313(l) of the Tariff Act of 1930 (19
U.S.C. 1313(l)) is amended to read as follows:
``(l) Regulations.--
``(1) In general.--Allowance of the privileges provided for
in this section shall be subject to compliance with such rules
and regulations as the Secretary of the Treasury shall
prescribe.
``(2) Calculation of drawback.--
``(A) In general.--Not later than the date that is
2 years after the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015 (or, if
later, the effective date provided for in section
406(q)(2)(B) of that Act), the Secretary shall
prescribe regulations for determining the calculation
of amounts refunded as drawback under this section.
``(B) Requirements.--The regulations required by
subparagraph (A) for determining the calculation of
amounts refunded as drawback under this section shall
provide for a refund of up to 99 percent of the duties,
taxes, and fees paid with respect to the imported
merchandise, except that where there is substitution of
the merchandise or article, then--
``(i) in the case of an article that is
exported, the amount of the refund shall be
equal to 99 percent of the lesser of--
``(I) the amount of duties, taxes,
and fees paid with respect to the
imported merchandise; or
``(II) the amount of duties, taxes,
and fees that would apply to the
exported article if the exported
article were imported; and
``(ii) in the case of an article that is
destroyed, the amount of the refund shall be an
amount that is--
``(I) equal to 99 percent of the
lesser of--
``(aa) the amount of
duties, taxes, and fees paid
with respect to the imported
merchandise; and
``(bb) the amount of
duties, taxes, and fees that
would apply to the destroyed
article if the destroyed
article were imported; and
``(II) reduced by the value of
materials recovered during destruction
as provided in subsection (x).
``(3) Status reports on regulations.--Not later than the
date that is one year after the date of the enactment of the
Trade Facilitation and Trade Enforcement Act of 2015, and
annually thereafter until the regulations required by paragraph
(2) are final, the Secretary shall submit to Congress a report
on the status of those regulations.''.
(h) Substitution of Finished Petroleum Derivatives.--Section 313(p)
of the Tariff Act of 1930 (19 U.S.C. 1313(p)) is amended--
(1) by striking ``Harmonized Tariff Schedule of the United
States'' each place it appears and inserting ``HTS''; and
(2) in paragraph (3)(A)--
(A) in clause (ii)(III), by striking ``, as so
certified in a certificate of delivery or certificate
of manufacture and delivery''; and
(B) in the flush text at the end--
(i) by striking ``, as so designated on the
certificate of delivery or certificate of
manufacture and delivery''; and
(ii) by striking the last sentence and
inserting the following: ``The party
transferring the merchandise shall maintain
records kept in the normal course of business
to demonstrate the transfer.''.
(i) Packaging Material.--Section 313(q) of the Tariff Act of 1930
(19 U.S.C. 1313(q)) is amended--
(1) in paragraph (1), by striking ``of 99 percent of any
duty, tax, or fee imposed under Federal law on such imported
material'' and inserting ``in an amount calculated pursuant to
regulations prescribed by the Secretary of the Treasury under
subsection (l)'';
(2) in paragraph (2), by striking ``of 99 percent of any
duty, tax, or fee imposed under Federal law on the imported or
substituted merchandise used to manufacture or produce such
material'' and inserting ``in an amount calculated pursuant to
regulations prescribed by the Secretary of the Treasury under
subsection (l)''; and
(3) in paragraph (3), by striking ``they contain'' and
inserting ``it contains''.
(j) Filing of Drawback Claims.--Section 313(r) of the Tariff Act of
1930 (19 U.S.C. 1313(r)) is amended--
(1) in paragraph (1)--
(A) by striking the first sentence and inserting
the following: ``A drawback entry shall be filed or
applied for, as applicable, not later than 5 years
after the date on which merchandise on which drawback
is claimed was imported.'';
(B) in the second sentence, by striking ``3-year''
and inserting ``5-year''; and
(C) in the third sentence, by striking ``the
Customs Service'' and inserting ``U.S. Customs and
Border Protection'';
(2) in paragraph (3)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by
striking ``The Customs Service'' and inserting
``U.S. Customs and Border Protection'';
(ii) in clauses (i) and (ii), by striking
``the Customs Service'' each place it appears
and inserting ``U.S. Customs and Border
Protection''; and
(iii) in clause (ii)(I), by striking ``3-
year'' and inserting ``5-year''; and
(B) in subparagraph (B), by striking ``the periods
of time for retaining records set forth in subsection
(t) of this section and'' and inserting ``the period of
time for retaining records set forth in''; and
(3) by adding at the end the following:
``(4) All drawback claims filed on and after the date that
is 2 years after the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015 (or, if later,
the effective date provided for in section 406(q)(2)(B) of that
Act) shall be filed electronically.''.
(k) Designation of Merchandise by Successor.--Section 313(s) of the
Tariff Act of 1930 (19 U.S.C. 1313(s)) is amended--
(1) in paragraph (2), by striking subparagraph (B) and
inserting the following:
``(B) subject to paragraphs (5) and (6) of
subsection (j), imported merchandise, other merchandise
classifiable under the same 8-digit HTS subheading
number as such imported merchandise, or any combination
of such imported merchandise and such other
merchandise, that the predecessor received, before the
date of succession, from the person who imported and
paid any duties, taxes, and fees due on the imported
merchandise;''; and
(2) in paragraph (4), by striking ``certifies that'' and
all that follows and inserting ``certifies that the transferred
merchandise was not and will not be claimed by the
predecessor.''.
(l) Drawback Certificates.--Section 313 of the Tariff Act of 1930
(19 U.S.C. 1313) is amended by striking subsection (t).
(m) Drawback for Recovered Materials.--Section 313(x) of the Tariff
Act of 1930 (19 U.S.C. 1313(x)) is amended by striking ``and (c)'' and
inserting ``(c), and (j)''.
(n) Definitions.--Section 313 of the Tariff Act of 1930 (19 U.S.C.
1313) is amended by adding at the end the following:
``(z) Definitions.--In this section:
``(1) Directly.--The term `directly' means a transfer of
merchandise or an article from one person to another person
without any intermediate transfer.
``(2) HTS.--The term `HTS' means the Harmonized Tariff
Schedule of the United States.
``(3) Indirectly.--The term `indirectly' means a transfer
of merchandise or an article from one person to another person
with one or more intermediate transfers.''.
(o) Recordkeeping.--Section 508(c)(3) of the Tariff Act of 1930 (19
U.S.C. 1508(c)(3)) is amended--
(1) by striking ``3rd'' and inserting ``5th''; and
(2) by striking ``payment'' and inserting ``liquidation''.
(p) Government Accountability Office Report.--
(1) In general.--Not later than one year after the issuance
of the regulations required by subsection (l)(2) of section 313
of the Tariff Act of 1930, as added by subsection (g), 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
modernization of drawback and refunds under section 313 of the
Tariff Act of 1930, as amended by this section.
(2) Contents.--The report required by paragraph (1) include
the following:
(A) An assessment of the modernization of drawback
and refunds under section 313 of the Tariff Act of
1930, as amended by this section.
(B) A description of drawback claims that were
permissible before the effective date provided for in
subsection (q) that are not permissible after that
effective date and an identification of industries most
affected.
(C) A description of drawback claims that were not
permissible before the effective date provided for in
subsection (q) that are permissible after that
effective date and an identification of industries most
affected.
(q) Effective Date.--
(1) In general.--The amendments made by this section
shall--
(A) take effect on the date of the enactment of
this Act; and
(B) except as provided in paragraphs (2)(B) and
(3), apply to drawback claims filed on or after the
date that is 2 years after such date of enactment.
(2) Reporting of operability of automated commercial
environment computer system.--
(A) In general.--Not later than one year after the
date of the enactment of this Act, and not later than 2
years after such date of enactment, the Secretary of
the Treasury shall submit to Congress a report on--
(i) the date on which the Automated
Commercial Environment will be ready to process
drawback claims; and
(ii) the date on which the Automated Export
System will be ready to accept proof of
exportation under subsection (i) of section 313
of the Tariff Act of 1930, as amended by
subsection (d).
(B) Delay of effective date.--If the Secretary
indicates in the report required by subparagraph (A)
that the Automated Commercial Environment will not be
ready to process drawback claims by the date that is 2
years after the date of the enactment of this Act, the
amendments made by this section shall apply to drawback
claims filed on and after the date on which the
Secretary certifies that the Automated Commercial
Environment is ready to process drawback claims.
(3) Transition rule.--During the one-year period beginning
on the date that is 2 years after the date of the enactment of
this Act (or, if later, the effective date provided for in
paragraph (2)(B)), a person may elect to file a claim for
drawback under--
(A) section 313 of the Tariff Act of 1930, as
amended by this section; or
(B) section 313 of the Tariff Act of 1930, as in
effect on the day before the date of the enactment of
this Act.
SEC. 407. ELIMINATION OF CONSUMPTIVE DEMAND EXCEPTION TO PROHIBITION ON
IMPORTATION OF GOODS MADE WITH CONVICT LABOR, FORCED
LABOR, OR INDENTURED LABOR; REPORT.
(a) Elimination of Consumptive Demand Exception.--
(1) In general.--Section 307 of the Tariff Act of 1930 (19
U.S.C. 1307) is amended by striking ``The provisions of this
section'' and all that follows through ``of the United
States.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date that is 15 days after the date of
the enactment of this Act.
(b) Report Required.--Not later than 180 days after the date of the
enactment of this Act, and annually thereafter, the Commissioner 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 on compliance with section 307 of the
Tariff Act of 1930 (19 U.S.C. 1307) that includes the following:
(1) The number of instances in which merchandise was denied
entry pursuant to that section during the 1-year period
preceding the submission of the report.
(2) A description of the merchandise denied entry pursuant
to that section.
(3) Such other information as the Commissioner considers
appropriate with respect to monitoring and enforcing compliance
with that section.
TITLE V--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY
ORDERS
Subtitle A--Actions Relating to Enforcement of Trade Remedy Laws
SEC. 501. PREVENTION AND INVESTIGATION OF EVASION.
(a) In General.--The Tariff Act of 1930 is amended by inserting
after section 516A (19 U.S.C. 1516a) the following:
``SEC. 516B. PROCEDURES FOR INVESTIGATING CLAIMS OF EVASION OF
ANTIDUMPING AND COUNTERVAILING DUTY ORDERS.
``(a) Definitions.--In this section:
``(1) Administering authority.--The term `administering
authority' has the meaning given that term in section 771(1).
``(2) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on Finance and the Committee on
Appropriations of the Senate; and
``(B) the Committee on Ways and Means and the
Committee on Appropriations of the House of
Representatives.
``(3) Commissioner.--The term `Commissioner' means the
Commissioner responsible for U.S. Customs and Border
Protection.
``(4) Covered merchandise.--The term `covered merchandise'
means merchandise that is subject to--
``(A) a countervailing duty order issued under
section 706 of the Tariff Act of 1930;
``(B) an antidumping duty order issued under
section 736 of the Tariff Act of 1930; or
``(C) a finding issued under the Antidumping Act,
1921.
``(5) Eligible small business.--
``(A) In general.--The term `eligible small
business' means any business concern which, in the
Commissioner's judgment, due to its small size, has
neither adequate internal resources nor financial
ability to obtain qualified outside assistance in
preparing and submitting for consideration allegations
of evasion.
``(B) Non-reviewability.--Any agency decision
regarding whether a business concern is an eligible
small business for purposes of section 311(b)(3) is not
reviewable by any other agency or by any court.
``(6) Enter; entry.--The terms `enter' and `entry' refer to
the entry, or withdrawal from warehouse for consumption, in the
customs territory of the United States.
``(7) Evade; evasion.--The terms `evade' and `evasion'
refer to entering covered merchandise into the customs
territory of the United States by means of any document or
electronically transmitted data or information, written or oral
statement, or act that is material and false, or any omission
that is material, and that results in any cash deposit or other
security or any amount of applicable antidumping or
countervailing duties being reduced or not being applied with
respect to the merchandise.
``(8) Interested party.--The term `interested party' has
the meaning given the term in section 771(9) (other than
subparagraph (A) or (B) of such section).
``(9) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(10) Trade remedy laws.--The term `trade remedy laws'
means title VII of the Tariff Act of 1930.
``(b) Trade Remedy Law Enforcement Division.--
``(1) Establishment.--
``(A) In general.--The Secretary of Homeland
Security shall establish and maintain within the Office
of International Trade of U.S. Customs and Border
Protection, established under section 2(d) of the Act
of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C.
2072(d)), a Trade Remedy Law Enforcement Division.
``(B) Composition.--The Trade Law Remedy
Enforcement Division shall be composed of--
``(i) headquarters personnel led by a
Director, who shall report to the Assistant
Commissioner of the Office of International
Trade; and
``(ii) a National Targeting and Analysis
Group dedicated to preventing and countering
evasion.
``(C) Duties.--The Trade Remedy Law Enforcement
Division shall be dedicated--
``(i) to the development and administration
of policies to prevent and counter evasion;
``(ii) to direct enforcement and compliance
assessment activities concerning evasion;
``(iii) to the development and conduct of
commercial risk assessment targeting with
respect to cargo destined for the United States
in accordance with paragraph (3);
``(iv) to issuing Trade Alerts described in
paragraph (4); and
``(v) to the development of policies for
the application of single entry and continuous
bonds for entries of covered merchandise to
sufficiently protect the collection of
antidumping and countervailing duties
commensurate with the level of risk of
noncollection.
``(2) Duties of director.--The duties of the Director of
the Trade Remedy Law Enforcement Division shall include--
``(A) directing the trade enforcement and
compliance assessment activities of U.S. Customs and
Border Protection that concern evasion;
``(B) facilitating, promoting, and coordinating
cooperation and the exchange of information between
U.S. Customs and Border Protection, U.S. Immigration
and Customs Enforcement, and other relevant agencies
regarding evasion;
``(C) notifying on a timely basis the administering
authority (as defined in section 771(1)) and the
Commission (as defined in section 771(2)) of any
finding, determination, civil action, or criminal
action taken by U.S. Customs and Border Protection or
other Federal agency regarding evasion;
``(D) serving as the primary liaison between U.S.
Customs and Border Protection and the public regarding
United States Government activities concerning evasion,
including--
``(i) establish and administer the
procedures described in subsection (c);
``(ii) upon request, provide technical
assistance and advice to eligible small
businesses to enable such businesses to prepare
and submit allegations of evasion; and
``(iii) regularly consult with the public,
the Commercial Customs Operations Advisory
Committee, the Trade Support Network, and any
other relevant parties and organizations
regarding the development and implementation of
regulations, interpretations, and policies
related to countering evasion.
``(3) Preventing and countering evasion of the trade remedy
laws.--In carrying out its duties with respect to preventing
and countering evasion, the National Targeting and Analysis
Group dedicated to preventing and countering evasion shall--
``(A) establish targeted risk assessment
methodologies and standards--
``(i) for evaluating the risk that cargo
destined for the United States may constitute
evading covered merchandise; and
``(ii) for issuing, as appropriate, Trade
Alerts described in paragraph (4); and
``(B) 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 subparagraph (A).
``(4) Trade alerts.--Based upon the application of the
targeted risk assessment methodologies and standards
established under paragraph (3), the Director of the Trade
Remedy Law Enforcement Division shall issue Trade Alerts or
other such means of notification to directors of United States
ports of entry directing further inspection, or physical
examination or testing, of specific merchandise to ensure
compliance with the trade remedy laws.
``(c) Procedures for Investigating Allegations of Evasion.--
``(1) Initiation by petition or referral.--
``(A) In general.--Not later than 10 days after the
date on which the Commissioner receives a petition
described in subparagraph (B) or a referral described
in subparagraph (C), the Commissioner shall initiate an
investigation pursuant to this paragraph.
``(B) Petition described.--A petition described in
this subparagraph is a petition that--
``(i) is filed with the Commissioner by any
party who is an interested party with respect
to covered merchandise;
``(ii) alleges that a person has entered
covered merchandise into the customs territory
of the United States through evasion; and
``(iii) is accompanied by information
reasonably available to the petitioner
supporting the allegation.
``(C) Referral described.--A referral described in
this subparagraph is information submitted to the
Commissioner by any other Federal agency, including the
Department of Commerce or the United States
International Trade Commission, indicating that a
person has entered covered merchandise into the customs
territory of the United States through evasion.
``(2) Determinations.--
``(A) Preliminary determination.--
``(i) In general.--Not later than 90 days
after the date on which the Commissioner
initiates an investigation under paragraph (1),
the Commissioner shall issue a preliminary
determination, based on information available
to the Commissioner at the time of the
determination, with respect to whether there is
a reasonable basis to believe or suspect that
the covered merchandise was entered into the
customs territory of the United States through
evasion.
``(ii) Extension.--The Commissioner may
extend by not more than 45 days the time period
specified in clause (i) if the Commissioner
determines that sufficient information to make
a preliminary determination under that clause
is not available within that time period or the
inquiry is unusually complex.
``(B) Final determination.--
``(i) In general.--Not later than 120 days
after making a preliminary determination under
subparagraph (A), the Commissioner shall make a
final determination, based on substantial
evidence, with respect to whether covered
merchandise was entered into the customs
territory of the United States through evasion.
``(ii) Extension.--The Commissioner may
extend by not more than 60 days the time period
specified in clause (i) if the Commissioner
determines that sufficient information to make
a final determination under that clause is not
available within that time period or the
inquiry is unusually complex.
``(iii) Opportunity for comment; hearing.--
After making a preliminary determination under
subparagraph (A) and before issuing a final
determination under this subparagraph with
respect to whether covered merchandise was
entered into the customs territory of the
United States through evasion, the Commissioner
shall--
``(I) provide any person alleged to
have entered the merchandise into the
customs territory of the United States
through evasion, and any person that is
an interested party with respect to the
merchandise, with an opportunity to be
heard;
``(II) upon request, hold a hearing
with respect to whether the covered
merchandise was entered into the
customs territory of the United States
through evasion; and
``(III) provide an opportunity for
public comment.
``(C) Authority to collect and verify additional
information.--In making a preliminary determination
under subparagraph (A) or a final determination under
subparagraph (B), the Commissioner--
``(i) shall exercise all existing
authorities to collect information needed to
make the determination; and
``(ii) may collect such additional
information as is necessary to make the
determination through such methods as the
Commissioner considers appropriate, including
by--
``(I) issuing a questionnaire with
respect to covered merchandise to--
``(aa) a person that filed
a petition under paragraph
(1)(B);
``(bb) a person alleged to
have entered covered
merchandise into the customs
territory of the United States
through evasion; or
``(cc) any other person
that is an interested party
with respect to the covered
merchandise; or
``(II) conducting verifications,
including on-site verifications, of any
relevant information.
``(D) Adverse inference.--
``(i) In general.--If the Commissioner
finds that a person that filed a petition under
paragraph (1)(B), a person alleged to have
entered covered merchandise into the customs
territory of the United States through evasion,
or a foreign producer or exporter, has failed
to cooperate by not acting to the best of the
person's ability to comply with a request for
information, the Commissioner may, in making a
preliminary determination under subparagraph
(A) or a final determination under subparagraph
(B), use an inference that is adverse to the
interests of that person in selecting from
among the facts otherwise available to
determine whether evasion has occurred.
``(ii) Adverse inference described.--An
adverse inference used under clause (i) may
include reliance on information derived from--
``(I) the petition, if any,
submitted under paragraph (1)(B) with
respect to the covered merchandise;
``(II) a determination by the
Commissioner in another investigation
under this section;
``(III) an investigation or review
by the administering authority under
title VII; or
``(IV) any other information placed
on the record.
``(E) Notification and publication.--Not later than
7 days after making a preliminary determination under
subparagraph (A) or a final determination under
subparagraph (B), the Commissioner shall--
``(i) provide notification of the
determination to--
``(I) the administering authority;
and
``(II) the person that submitted
the petition under paragraph (1)(B) or
the Federal agency that submitted the
referral under paragraph (1)(C); and
``(ii) provide the determination for
publication in the Federal Register.
``(3) Business proprietary information.--
``(A) Establishment of procedures.--For each
investigation initiated under paragraph (1), the
Commissioner shall establish procedures for the
submission of business proprietary information under an
administrative protective order that--
``(i) protects against public disclosure of
such information; and
``(ii) for purposes of submitting comments
to the Commissioner, provides limited access to
such information for--
``(I) the person that submitted the
petition under paragraph (1)(B) or the
Federal agency that submitted the
referral under paragraph (1)(C); and
``(II) the person alleged to have
entered covered merchandise into the
customs territory of the United States
through evasion.
``(B) Administration in accordance with other
procedures.--The procedures established under
subparagraph (A) shall be administered, to the maximum
extent practicable, in accordance with administrative
protective order procedures under section 777 by the
administering authority.
``(C) Disclosure of business proprietary
information.--The Commissioner shall, in accordance
with the procedures established under subparagraph (A),
make all business proprietary information presented to,
or obtained by, the Commissioner during an
investigation available to the persons specified in
subparagraph (A)(ii) under an administrative protective
order, regardless of when such information is submitted
during an investigation.
``(4) Referrals to other federal agencies.--
``(A) After preliminary determination.--
Notwithstanding section 777 and subject to subparagraph
(C), when the Commissioner makes an affirmative
preliminary determination under paragraph (2)(A), the
Commissioner shall, at the request of the head of
another Federal agency, transmit the administrative
record to the head of that agency.
``(B) After final determination.--Notwithstanding
section 777 and subject to subparagraph (C), when the
Commissioner makes an affirmative final determination
under paragraph (2)(B), the Commissioner shall, at the
request of the head of another Federal agency, transmit
the complete administrative record to the head of that
agency.
``(C) Protective orders.--Before transmitting an
administrative record to the head of another Federal
agency under subparagraph (A) or (B), the Commissioner
shall verify that the other agency has in effect with
respect to the administrative record a protective order
that provides the same or a similar level of protection
for the information in the administrative record as the
protective order in effect with respect to such
information under this subsection.
``(d) Effect of Determinations.--
``(1) Effect of affirmative preliminary determination.--If
the Commissioner makes a preliminary determination in
accordance with subsection (c)(2)(A) that there is a reasonable
basis to believe or suspect that covered merchandise was
entered into the customs territory of the United States through
evasion, the Commissioner shall--
``(A) suspend the liquidation of each unliquidated
entry of the covered merchandise that is subject to the
preliminary determination and that entered on or after
the date of the initiation of the investigation under
paragraph (1) and, pursuant to the Commissioner's
authority under section 504(b), extend liquidation of
each unliquidated entry of the covered merchandise that
is subject to the preliminary determination and that
entered prior to the date of the initiation of the
investigation under paragraph (1);
``(B) review and reassess the amount of bond or
other security the importer is required to post for
each entry of merchandise described in subparagraph
(A);
``(C) require the posting of a cash deposit with
respect to each entry of merchandise described in
subparagraph (A); and
``(D) take such other measures as the Commissioner
determines appropriate to ensure the collection of any
duties that may be owed with respect to merchandise
described in subparagraph (A) as a result of a final
determination under subsection (c)(2)(B).
``(2) Effect of negative preliminary determination.--If the
Commissioner makes a preliminary determination in accordance
with subsection (c)(2)(A) that there is not a reasonable basis
to believe or suspect that covered merchandise was entered into
the customs territory of the United States through evasion, the
Commissioner shall continue the investigation and notify the
administering authority pending a final determination under
subsection (c)(2)(B).
``(3) Effect of affirmative final determination.--If the
Commissioner makes a final determination in accordance with
subsection (c)(2)(B) that covered merchandise was entered into
the customs territory of the United States through evasion, the
Commissioner shall--
``(A) suspend or continue to suspend, as the case
may be, the liquidation of each entry of the covered
merchandise that is subject to the determination and
that enters on or after the date of the determination
and, pursuant to the Commissioner's authority under
section 504(b), extend or continue to extend, as the
case may be, the liquidation of each entry of the
covered merchandise that is subject to the
determination and that entered prior to the date of the
determination;
``(B) notify the administering authority of the
determination and request that the administering
authority--
``(i) identify the applicable antidumping
or countervailing duty assessment rate for the
entries for which liquidation is suspended
under paragraph (1)(A) or subparagraph (A) of
this paragraph; or
``(ii) if no such assessment rates are
available at the time, identify the applicable
cash deposit rate to be applied to the entries
described in subparagraph (A), with the
applicable antidumping or countervailing duty
assessment rates to be provided as soon as such
rates become available;
``(C) require the posting of cash deposits and
assess duties on each entry of merchandise described in
subparagraph (A) in accordance with the instructions
received from the administering authority under
paragraph (5);
``(D) review and reassess the amount of bond or
other security the importer is required to post for
merchandise described in subparagraph (A) to ensure the
protection of revenue and compliance with the law; and
``(E) take such additional enforcement measures as
the Commissioner determines appropriate, such as--
``(i) initiating proceedings under section
592 or 596;
``(ii) implementing, in consultation with
the relevant Federal agencies, rule sets or
modifications to rules sets for identifying,
particularly through the Automated Targeting
System and the Automated Commercial
Environment, importers, other parties, and
merchandise that may be associated with
evasion;
``(iii) requiring, with respect to
merchandise for which the importer has
repeatedly provided incomplete or erroneous
entry summary information in connection with
determinations of evasion, the importer to
submit entry summary documentation and to
deposit estimated duties at the time of entry;
``(iv) referring the record in whole or in
part to U.S. Immigration and Customs
Enforcement for civil or criminal
investigation; and
``(v) transmitting the administrative
record to the administering authority for
further appropriate proceedings.
``(4) Effect of negative final determination.--If the
Commissioner makes a final determination in accordance with
subsection (c)(2)(B) that covered merchandise was not entered
into the customs territory of the United States through
evasion, the Commissioner shall terminate the suspension of
liquidation pursuant to paragraph (1)(A) and refund any cash
deposits collected pursuant to paragraph (1)(C) that are in
excess of the cash deposit rate that would otherwise have been
applicable the merchandise.
``(5) Cooperation of administering authority.--
``(A) In general.--Upon receiving a notification
from the Commissioner under paragraph (3)(B), the
administering authority shall promptly provide to the
Commissioner the applicable cash deposit rates and
antidumping or countervailing duty assessment rates and
any necessary liquidation instructions.
``(B) Special rule for cases in which the producer
or exporter is unknown.--If the Commissioner and
administering authority are unable to determine the
producer or exporter of the merchandise with respect to
which a notification is made under paragraph (3)(B),
the administering authority shall identify, as the
applicable cash deposit rate or antidumping or
countervailing duty assessment rate, the cash deposit
or duty (as the case may be) in the highest amount
applicable to any producer or exporter, including the
`all-others' rate of the merchandise subject to an
antidumping order or countervailing duty order under
section 736 or 706, respectively, or a finding issued
under the Antidumping Act, 1921, or any administrative
review conducted under section 751.
``(e) Special Rules.--
``(1) Effect on other authorities.--Neither the initiation
of an investigation under subsection (c)(1) nor a preliminary
determination or a final determination under subsection (c)(2)
shall affect the authority of the Commissioner--
``(A) to pursue such other enforcement measures
with respect to the evasion of antidumping or
countervailing duties as the Commissioner determines
necessary, including enforcement measures described in
clauses (i) through (iv) of subsection (d)(3)(E); or
``(B) to assess any penalties or collect any
applicable duties, taxes, and fees, including pursuant
to section 592.
``(2) Effect of determinations on fraud actions.--Neither a
preliminary determination nor a final determination under
subsection (c)(2) shall be determinative in a proceeding under
section 592.
``(3) Negligence or intent.--The Commissioner shall
investigate and make a preliminary determination or a final
determination under this section with respect to whether a
person has entered covered merchandise into the customs
territory of the United States through evasion without regard
to whether the person--
``(A) intended to violate an antidumping duty order
or countervailing duty order under section 736 or 706,
respectively, or a finding issued under the Antidumping
Act, 1921; or
``(B) exercised reasonable care with respect to
avoiding a violation of such an order or finding.''.
(b) Technical Amendment.--Clause (ii) of section 777(b)(1)(A) of
the Tariff Act of 1930 (19 U.S.C. 1677f(b)(1)(A)) is amended to read as
follows:
``(ii) to an officer or employee of U.S.
Customs and Border Protection who is directly
involved in conducting an investigation
regarding fraud under this title or claims of
evasion under section 516B.''.
(c) Judicial Review.--Section 516A(a)(2) of the Tariff Act of 1930
(19 U.S.C. 1516a(a)(2)) is amended--
(1) in subparagraph (A)--
(A) in clause (i)(III), by striking ``or'' at the
end;
(B) in clause (ii), by adding ``or'' at the end;
and
(C) by inserting after clause (ii) the following:
``(iii) the date of publication in the
Federal Register of a determination described
in clause (ix) of subparagraph (B),''; and
(2) in subparagraph (B), by adding at the end the following
new clause:
``(ix) A determination by the Commissioner
responsible for U.S. Customs and Border
Protection under section 516B that merchandise
has been entered into the customs territory of
the United States through evasion.''.
(d) Finality of Determinations.--Section 514(b) of the Tariff Act
of 1930 (19 U.S.C. 1514(b)) is amended by striking ``section 303'' and
all that follows through ``which are reviewable'' and inserting
``section 516B or title VII that are reviewable''.
SEC. 502. APPLICATION TO CANADA AND MEXICO.
Pursuant to article 1902 of the North American Free Trade Agreement
and section 408 of the North American Free Trade Agreement
Implementation Act (19 U.S.C. 3438), the amendments made by this title
shall apply with respect to goods from Canada and Mexico.
Subtitle B--Other Matters
SEC. 511. DEFINITIONS.
In this subtitle, the terms ``appropriate congressional
committees'', ``Commissioner'', ``covered merchandise'', ``enter'' and
``entry'', and ``evade'' and ``evasion'' have the meanings given those
terms in section 516B(a) of the Tariff Act of 1930 (as added by section
501(a) of this Act).
SEC. 512. ALLOCATION AND TRAINING OF PERSONNEL.
(a) Reassignment and Allocation.--The Commissioner shall, to the
maximum extent possible, ensure that U.S. Customs and Border
Protection--
(1) employs sufficient personnel who have expertise in, and
responsibility for, preventing and investigating the entry of
covered merchandise into the customs territory of the United
States through evasion;
(2) on the basis of risk assessment metrics, assigns
sufficient personnel with primary responsibility for preventing
the entry of covered merchandise into the customs territory of
the United States through evasion to the ports of entry in the
United States at which the Commissioner determines potential
evasion presents the most substantial threats to the revenue of
the United States; and
(3) provides adequate training to relevant personnel to
increase expertise and effectiveness in the prevention and
investigation of entries of covered merchandise into the
customs territory of the United States through evasion.
(b) Commercial Enforcement Officers.--Not later than 30 days after
the enactment of this Act, the Secretary of Homeland Security, the
Commissioner, and the Assistant Secretary for U.S. Immigration and
Customs Enforcement shall assess and properly allocate the resources of
U.S. Customs and Border Protection and U.S. Immigration and Customs
Enforcement--
(1) to effectively implement the provisions of, and
amendments made by, this Act; and
(2) to improve efforts to investigate and combat evasion.
SEC. 513. REGULATIONS.
(a) In General.--Not later than 240 days after the date of the
enactment of this Act, the Commissioner shall issue regulations to
carry out this title and the amendments made by this title.
(b) Cooperation Between U.S. Customs and Border Protection, U.S.
Immigration and Customs Enforcement, and Department of Commerce.--Not
later than 240 days after the date of the enactment of this Act, the
Commissioner, the Assistant Secretary for U.S. Immigration and Customs
Enforcement, and the Secretary of Commerce shall establish procedures
to ensure maximum cooperation and communication between U.S. Customs
and Border Protection, U.S. Immigration and Customs Enforcement, and
the Department of Commerce in order to quickly, efficiently, and
accurately investigate allegations of evasion under section 516B of the
Tariff Act of 1930 (as added by section 501(a) of this Act).
SEC. 514. ANNUAL REPORT ON PREVENTION OF EVASION OF ANTIDUMPING AND
COUNTERVAILING DUTY ORDERS.
(a) In General.--Not later than February 28 of each year, beginning
in 2016, the Commissioner, in consultation with the Secretary of
Commerce and the Assistant Secretary for U.S. Immigration and Customs
Enforcement, shall submit to the appropriate congressional committees a
report on the efforts being taken to prevent and investigate evasion.
(b) Contents.--Each report required under subsection (a) shall
include--
(1) for the calendar year preceding the submission of the
report--
(A) a summary of the efforts of U.S. Customs and
Border Protection to prevent and investigate evasion;
(B) the number of allegations of evasion received
and the number of allegations of evasion resulting in
investigations by U.S. Customs and Border Protection or
any other agency;
(C) a summary of the completed investigations of
evasion, including the number and nature of the
investigations initiated, conducted, or completed, as
well as their resolution;
(D) with respect to investigations that lead to
lead to issuance of a penalty notice, the penalty
amounts;
(E) the amounts of antidumping and countervailing
duties collected as a result of any investigations or
other actions by U.S. Customs and Border Protection or
any other agency;
(F) a description of the allocation of personnel
and other resources of U.S. Customs and Border
Protection and U.S. Immigration and Customs Enforcement
to prevent and investigation evasion, including any
assessments conducted regarding the allocation of such
personnel and resources; and
(G) a description of training conducted to increase
expertise and effectiveness in the prevention and
investigation of evasion; and
(2) a description of U.S. Customs and Border Protection
processes and procedures to prevent and investigate evasion,
including--
(A) the specific guidelines, policies, and
practices used by U.S. Customs and Border Protection to
ensure that allegations of evasion are promptly
evaluated and acted upon in a timely manner;
(B) an evaluation of the efficacy of such existing
guidelines, policies, and practices;
(C) identification of any changes since the last
report that have materially improved or reduced the
effectiveness of U.S. Customs and Border Protection to
prevent and investigate evasion;
(D) a description of the development and
implementation of policies for the application of
single entry and continuous bonds for entries of
covered merchandise to sufficiently protect the
collection of antidumping and countervailing duties
commensurate with the level of risk on noncollection;
(E) the processes and procedures for increased
cooperation and information sharing with the Department
of Commerce, U.S. Immigration and Customs Enforcement,
and any other relevant Federal agencies to prevent and
investigate evasion; and
(F) identification of any recommended policy
changes of other Federal agencies or legislative
changes to improve the effectiveness of U.S. Customs
and Border Protection to prevent and investigate
evasion.
SEC. 515. GOVERNMENT ACCOUNTABILITY OFFICE REPORT ON RELIQUIDATION
AUTHORITY.
Not later than 60 days after the date of the enactment of this Act,
the Comptroller General of the United States shall submit to the
appropriate congressional committees, and make available to the public,
a report estimating the amount of duties that could not be collected on
covered merchandise that entered the customs territory of the United
States through evasion during fiscal years 2014 and 2015 because the
Commissioner did not have the authority to reliquidate the entries of
such merchandise.
SEC. 516. ADDRESSING CIRCUMVENTION BY NEW SHIPPERS.
Section 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C.
1675(a)(2)(B)) is amended--
(1) by striking clause (iii);
(2) by redesignating clause (iv) as clause (iii); and
(3) inserting after clause (iii), as redesignated by
paragraph (2) of this section, the following:
``(iv) Any weighted average dumping margin
or individual countervailing duty rate
determined for an exporter or producer in a
review conducted under clause (i) shall be
based solely on the bona fide United States
sales of an exporter or producer, as the case
may be, made during the period covered by the
review. In determining whether the United
States sales of an exporter or producer made
during the period covered by the review were
bona fide, the administering authority shall
consider, depending on the circumstances
surrounding such sales--
``(I) the prices of such sales;
``(II) whether such sales were made
in commercial quantities;
``(III) the timing of such sales;
``(IV) the expenses arising from
such sales;
``(V) whether the subject
merchandise involved in such sales were
resold in the United States at a
profit;
``(VI) whether such sales were made
on an arms-length basis; and
``(VII) any other factor the
administering authority determines to
be relevant as to whether such sales
are, or are not, likely to be typical
of those the exporter or producer will
make after completion of the review.''.
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