[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1015 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 1015
To reauthorize trade facilitation and trade enforcement functions and
activities, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 20, 2015
Mr. Hatch introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To reauthorize trade facilitation and trade enforcement functions and
activities, and for other purposes.
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 Facilitation
and Trade Enforcement 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. Establishment of new importer program.
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--EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY ORDERS
Sec. 401. Short title.
Sec. 402. Procedures for investigating claims of evasion of antidumping
and countervailing duty orders.
Sec. 403. Annual report on prevention and investigation of evasion of
antidumping and countervailing duty orders.
TITLE V--ADDITIONAL TRADE ENFORCEMENT AND INTELLECTUAL PROPERTY RIGHTS
PROTECTION
Subtitle A--Trade Enforcement
Sec. 501. Trade enforcement priorities.
Sec. 502. Exercise of WTO authorization to suspend concessions or other
obligations under trade agreements.
Sec. 503. Trade monitoring.
Sec. 504. Honey transshipment.
Sec. 505. Illicitly imported, exported, or trafficked cultural
property, archaeological or ethnological
materials, and fish, wildlife, and plants.
Subtitle B--Intellectual Property Rights Protection
Sec. 511. Establishment of Chief Innovation and Intellectual Property
Negotiator.
Sec. 512. Measures relating to countries that deny adequate protection
for intellectual property rights.
TITLE VI--MISCELLANEOUS PROVISIONS
Sec. 601. De minimis value.
Sec. 602. Consultation on trade and customs revenue functions.
Sec. 603. Penalties for customs brokers.
Sec. 604. Amendments to chapter 98 of the Harmonized Tariff Schedule of
the United States.
Sec. 605. Exemption from duty of residue of bulk cargo contained in
instruments of international traffic
previously exported from the United States.
Sec. 606. Drawback and refunds.
Sec. 607. Inclusion of certain information in submission of nomination
for appointment as Deputy United States
Trade Representative.
Sec. 608. Biennial reports regarding competitiveness issues facing the
United States economy and competitive
conditions for certain key United States
industries.
Sec. 609. Report on certain U.S. Customs and Border Protection
agreements.
Sec. 610. Charter flights.
Sec. 611. Amendment to Tariff Act of 1930 to require country of origin
marking of certain castings.
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.
(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 preclearance
of merchandise for qualified persons that demonstrate the
highest levels of compliance with the customs and trade laws of
the United States, regulations of 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
606 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. Immigration and Customs Enforcement personnel''
means Homeland Security Investigations Directorate personnel
and other appropriate employees of U.S. Immigration 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. Customs 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 the development of policies,
priorities, or negotiating objectives or positions that could
impact the commercial operations of U.S. Customs and Border
Protection or the operations or 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 than 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 reexported;
(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. 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.
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.
(a) In General.--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.''.
(b) Termination of Previous Authority.--Notwithstanding paragraph
(2) of section 818(g) of Public Law 112-81 (125 Stat. 1496), paragraph
(1) of that section shall have no force or effect on or after the date
of the enactment of this Act.
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. Customs
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--EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY ORDERS
SEC. 401. SHORT TITLE.
This title may be cited as the ``Enforcing Orders and Reducing
Customs Evasion Act of 2015''.
SEC. 402. PROCEDURES FOR INVESTIGATING CLAIMS OF EVASION OF ANTIDUMPING
AND COUNTERVAILING DUTY ORDERS.
(a) In General.--The Tariff Act of 1930 is amended by inserting
after section 516A (19 U.S.C. 1516a) the following:
``SEC. 517. PROCEDURES FOR INVESTIGATING CLAIMS OF EVASION OF
ANTIDUMPING AND COUNTERVAILING DUTY ORDERS.
``(a) Definitions.--In this section:
``(1) Administering authority.--The term `administering
authority' has the meaning given that term in section 771(1).
``(2) Commissioner.--The term `Commissioner' means the
Commissioner responsible for U.S. Customs and Border
Protection, acting pursuant to the delegation by the Secretary
of the Treasury of the authority of the Secretary with respect
to customs revenue functions (as defined in section 415 of the
Homeland Security Act of 2002 (6 U.S.C. 215)).
``(3) Covered merchandise.--The term `covered merchandise'
means merchandise that is subject to--
``(A) an antidumping duty order issued under
section 736;
``(B) a finding issued under the Antidumping Act,
1921; or
``(C) a countervailing duty order issued under
section 706.
``(4) Enter; entry.--The terms `enter' and `entry' refer to
the entry, or withdrawal from warehouse for consumption, of
merchandise in the customs territory of the United States.
``(5) Evasion.--
``(A) In general.--Except as provided in
subparagraph (B), the term `evasion' refers to entering
covered merchandise into the customs territory of the
United States by means of any document or
electronically transmitted data or information, written
or oral statement, or act that is material and false,
or any omission that is material, and that results in
any cash deposit or other security or any amount of
applicable antidumping or countervailing duties being
reduced or not being applied with respect to the
merchandise.
``(B) Exception for clerical error.--
``(i) In general.--Except as provided in
clause (ii), the term `evasion' does not
include entering covered merchandise into the
customs territory of the United States by means
of--
``(I) a document or electronically
transmitted data or information,
written or oral statement, or act that
is false as a result of a clerical
error; or
``(II) an omission that results
from a clerical error.
``(ii) Patterns of negligent conduct.--If
the Commissioner determines that a person has
entered covered merchandise into the customs
territory of the United States by means of a
clerical error referred to in subclause (I) or
(II) of clause (i) and that the clerical error
is part of a pattern of negligent conduct on
the part of that person, the Commissioner may
determine, notwithstanding clause (i), that the
person has entered such covered merchandise
into the customs territory of the United States
through evasion.
``(iii) Electronic repetition of errors.--
For purposes of clause (ii), the mere
nonintentional repetition by an electronic
system of an initial clerical error does not
constitute a pattern of negligent conduct.
``(iv) Rule of construction.--A
determination by the Commissioner that a person
has entered covered merchandise into the
customs territory of the United States by means
of a clerical error referred to in subclause
(I) or (II) of clause (i) rather than through
evasion shall not be construed to excuse that
person from the payment of any duties
applicable to the merchandise.
``(6) Interested party.--
``(A) In general.--The term `interested party'
means--
``(i) a manufacturer, producer, or
wholesaler in the United States of a domestic
like product;
``(ii) a certified union or recognized
union or group of workers that is
representative of an industry engaged in the
manufacture, production, or wholesale in the
United States of a domestic like product;
``(iii) a trade or business association a
majority of whose members manufacture, produce,
or wholesale a domestic like product in the
United States;
``(iv) an association, a majority of whose
members is composed of interested parties
described in clause (i), (ii), or (iii) with
respect to a domestic like product; and
``(v) if the covered merchandise is a
processed agricultural product, as defined in
section 771(4)(E), a coalition or trade
association that is representative of either--
``(I) processors;
``(II) processors and producers; or
``(III) processors and growers,
but this clause shall cease to have effect if
the United States Trade Representative notifies
the administering authority and the Commission
that the application of this clause is
inconsistent with the international obligations
of the United States.
``(B) Domestic like product.--For purposes of
subparagraph (A), the term `domestic like product'
means a product that is like, or in the absence of
like, most similar in characteristics and uses with,
covered merchandise.
``(b) Investigations.--
``(1) In general.--Not later than 10 business days after
receiving an allegation described in paragraph (2) or a
referral described in paragraph (3), the Commissioner shall
initiate an investigation if the Commissioner determines that
the information provided in the allegation or the referral, as
the case may be, reasonably suggests that covered merchandise
has been entered into the customs territory of the United
States through evasion.
``(2) Allegation described.--An allegation described in
this paragraph is an allegation that a person has entered
covered merchandise into the customs territory of the United
States through evasion that is--
``(A) filed with the Commissioner by an interested
party; and
``(B) accompanied by information reasonably
available to the party that filed the allegation.
``(3) Referral described.--A referral described in this
paragraph is information submitted to the Commissioner by any
other Federal agency, including the Department of Commerce or
the United States International Trade Commission, that
reasonably suggests that a person has entered covered
merchandise into the customs territory of the United States
through evasion.
``(4) Consolidation of allegations and referrals.--
``(A) In general.--The Commissioner may consolidate
multiple allegations described in paragraph (2) and
referrals described in paragraph (3) into a single
investigation if the Commissioner determines it is
appropriate to do so.
``(B) Effect on timing requirements.--If the
Commissioner consolidates multiple allegations or
referrals into a single investigation under
subparagraph (A), the date on which the Commissioner
receives the first such allegation or referral shall be
used for purposes of the requirement under paragraph
(1) with respect to the timing of the initiation of the
investigation.
``(5) Information-sharing to protect health and safety.--
If, during the course of conducting an investigation under
paragraph (1) with respect to covered merchandise, the
Commissioner has reason to suspect that such covered
merchandise may pose a health or safety risk to consumers, the
Commissioner shall provide, as appropriate, information to the
appropriate Federal agencies for purposes of mitigating the
risk.
``(6) Technical assistance and advice.--
``(A) In general.--Upon request, the Commissioner
shall provide technical assistance and advice to
eligible small businesses to enable such businesses to
prepare and submit allegations described in paragraph
(2), except that the Commissioner may deny assistance
if the Commissioner concludes that the allegation, if
submitted, would not lead to the initiation of an
investigation under this subsection or any other action
to address the allegation.
``(B) Eligible small business defined.--
``(i) In general.--In this paragraph, the
term `eligible small business' means any
business concern that the Commissioner
determines, due to its small size, has neither
adequate internal resources nor the financial
ability to obtain qualified outside assistance
in preparing and filing allegations described
in paragraph (2).
``(ii) Nonreviewability.--The determination
of the Commissioner regarding whether a
business concern is an eligible small business
for purposes of this paragraph is not
reviewable by any other agency or by any court.
``(c) Determinations.--
``(1) In general.--Not later than 270 calendar days after
the date on which the Commissioner initiates an investigation
under subsection (b) with respect to covered merchandise, the
Commissioner shall make a determination, based on substantial
evidence, with respect to whether such covered merchandise was
entered into the customs territory of the United States through
evasion.
``(2) Authority to collect and verify additional
information.--In making a determination under paragraph (1)
with respect to covered merchandise, the Commissioner may
collect such additional information as is necessary to make the
determination through such methods as the Commissioner
considers appropriate, including by--
``(A) issuing a questionnaire with respect to such
covered merchandise to--
``(i) an interested party that filed an
allegation under paragraph (2) of subsection
(b) that resulted in the initiation of an
investigation under paragraph (1) of that
subsection with respect to such covered
merchandise;
``(ii) a person alleged to have entered
such covered merchandise into the customs
territory of the United States through evasion;
``(iii) a person that is a foreign producer
or exporter of such covered merchandise; or
``(iv) the government of a country from
which such covered merchandise was exported;
and
``(B) conducting verifications, including on-site
verifications, of any relevant information.
``(3) Adverse inference.--If the Commissioner finds that a
party or person described in clause (i), (ii), or (iii) of
paragraph (2)(A) has failed to cooperate by not acting to the
best of the party or person's ability to comply with a request
for information, the Commissioner may, in making a
determination under paragraph (1), use an inference that is
adverse to the interests of that party or person in selecting
from among the facts otherwise available to make the
determination.
``(4) Notification.--Not later than 5 business days after
making a determination under paragraph (1) with respect to
covered merchandise, the Commissioner--
``(A) shall provide to each interested party that
filed an allegation under paragraph (2) of subsection
(b) that resulted in the initiation of an investigation
under paragraph (1) of that subsection with respect to
such covered merchandise a notification of the
determination and may, in addition, include an
explanation of the basis for the determination; and
``(B) may provide to importers, in such manner as
the Commissioner determines appropriate, information
discovered in the investigation that the Commissioner
determines will help educate importers with respect to
importing merchandise into the customs territory of the
United States in accordance with all applicable laws
and regulations.
``(d) Effect of Determinations.--
``(1) In general.--If the Commissioner makes a
determination under subsection (c) that covered merchandise was
entered into the customs territory of the United States through
evasion, the Commissioner shall--
``(A)(i) suspend the liquidation of unliquidated
entries of such covered merchandise that are subject to
the determination and that enter on or after the date
of the initiation of the investigation under subsection
(b) with respect to such covered merchandise and on or
before the date of the determination; or
``(ii) if the Commissioner has already suspended
the liquidation of such entries pursuant to subsection
(e)(1), continue to suspend the liquidation of such
entries;
``(B) pursuant to the Commissioner's authority
under section 504(b)--
``(i) extend the period for liquidating
unliquidated entries of such covered
merchandise that are subject to the
determination and that entered before the date
of the initiation of the investigation; or
``(ii) if the Commissioner has already
extended the period for liquidating such
entries pursuant to subsection (e)(1), continue
to extend the period for liquidating such
entries;
``(C) notify the administering authority of the
determination and request that the administering
authority--
``(i) identify the applicable antidumping
or countervailing duty assessment rates for
entries described in subparagraphs (A) and (B);
or
``(ii) if no such assessment rate for such
an entry is available at the time, identify the
applicable cash deposit rate to be applied to
the entry, with the applicable antidumping or
countervailing duty assessment rate to be
provided as soon as that rate becomes
available;
``(D) require the posting of cash deposits and
assess duties on entries described in subparagraphs (A)
and (B) in accordance with the instructions received
from the administering authority under paragraph (2);
and
``(E) take such additional enforcement measures as
the Commissioner determines appropriate, such as--
``(i) initiating proceedings under section
592 or 596;
``(ii) implementing, in consultation with
the relevant Federal agencies, rule sets or
modifications to rules sets for identifying,
particularly through the Automated Targeting
System and the Automated Commercial Environment
authorized under section 13031(f) of the
Consolidated Omnibus Budget Reconciliation Act
of 1985 (19 U.S.C. 58c(f)), importers, other
parties, and merchandise that may be associated
with evasion;
``(iii) requiring, with respect to
merchandise for which the importer has
repeatedly provided incomplete or erroneous
entry summary information in connection with
determinations of evasion, the importer to
deposit estimated duties at the time of entry;
and
``(iv) referring the record in whole or in
part to U.S. Immigration and Customs
Enforcement for civil or criminal
investigation.
``(2) Cooperation of administering authority.--
``(A) In general.--Upon receiving a notification
from the Commissioner under paragraph (1)(C), the
administering authority shall promptly provide to the
Commissioner the applicable cash deposit rates and
antidumping or countervailing duty assessment rates and
any necessary liquidation instructions.
``(B) Special rule for cases in which the producer
or exporter is unknown.--If the Commissioner and the
administering authority are unable to determine the
producer or exporter of the merchandise with respect to
which a notification is made under paragraph (1)(C),
the administering authority shall identify, as the
applicable cash deposit rate or antidumping or
countervailing duty assessment rate, the cash deposit
or duty (as the case may be) in the highest amount
applicable to any producer or exporter, including the
`all-others' rate of the merchandise subject to an
antidumping order or countervailing duty order under
section 736 or 706, respectively, or a finding issued
under the Antidumping Act, 1921, or any administrative
review conducted under section 751.
``(e) Interim Measures.--Not later than 90 calendar days after
initiating an investigation under subsection (b) with respect to
covered merchandise, the Commissioner shall decide based on the
investigation if there is a reasonable suspicion that such covered
merchandise was entered into the customs territory of the United States
through evasion and, if the Commissioner decides there is such a
reasonable suspicion, the Commissioner shall--
``(1) suspend the liquidation of each unliquidated entry of
such covered merchandise that entered on or after the date of
the initiation of the investigation;
``(2) pursuant to the Commissioner's authority under
section 504(b), extend the period for liquidating each
unliquidated entry of such covered merchandise that entered
before the date of the initiation of the investigation; and
``(3) pursuant to the Commissioner's authority under
section 623, take such additional measures as the Commissioner
determines necessary to protect the revenue of the United
States, including requiring a single transaction bond or
additional security or the posting of a cash deposit with
respect to such covered merchandise.
``(f) Administrative Review.--
``(1) In general.--Not later than 30 business days after
the Commissioner makes a determination under subsection (c)
with respect to whether covered merchandise was entered into
the customs territory of the United States through evasion, a
person determined to have entered such covered merchandise
through evasion or an interested party that filed an allegation
under paragraph (2) of subsection (b) that resulted in the
initiation of an investigation under paragraph (1) of that
subsection with respect to such covered merchandise may file an
appeal with the Commissioner for de novo review of the
determination.
``(2) Timeline for review.--Not later than 60 business days
after an appeal of a determination is filed under paragraph
(1), the Commissioner shall complete the review of the
determination.
``(g) Judicial Review.--
``(1) In general.--Not later than 30 business days after
the Commissioner completes a review under subsection (f) of a
determination under subsection (c) with respect to whether
covered merchandise was entered into the customs territory of
the United States through evasion, a person determined to have
entered such covered merchandise through evasion or an
interested party that filed an allegation under paragraph (2)
of subsection (b) that resulted in the initiation of an
investigation under paragraph (1) of that subsection with
respect to such covered merchandise may commence a civil action
in the United States Court of International Trade by filing
concurrently a summons and complaint contesting any factual
findings or legal conclusions upon which the determination is
based.
``(2) Standard of review.--In a civil action under this
subsection, the court shall hold unlawful any determination,
finding, or conclusion found to be arbitrary, capricious, an
abuse of discretion, or otherwise not in accordance with law.
``(h) Rule of Construction With Respect to Other Civil and Criminal
Proceedings and Investigations.--No determination under subsection (c)
or action taken by the Commissioner pursuant to this section shall be
construed to limit the authority to carry out, or the scope of, any
other proceeding or investigation pursuant to any other provision of
Federal or State law, including sections 592 and 596.''.
(b) Conforming Amendment.--Section 1581(c) of title 28, United
States Code, is amended by inserting ``or 517'' after ``516A''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date that is 180 days after the date of the enactment of
this Act.
(d) Regulations.--Not later than the date that is 180 days after
the date of the enactment of this Act, the Secretary of the Treasury
shall prescribe such regulations as may be necessary to implement the
amendments made by this section.
(e) Application to Canada and Mexico.--Pursuant to article 1902 of
the North American Free Trade Agreement and section 408 of the North
American Free Trade Agreement Implementation Act (19 U.S.C. 3438), the
amendments made by this section shall apply with respect to goods from
Canada and Mexico.
SEC. 403. ANNUAL REPORT ON PREVENTION AND INVESTIGATION OF EVASION OF
ANTIDUMPING AND COUNTERVAILING DUTY ORDERS.
(a) In General.--Not later than January 15 of each calendar year
that begins on or after the date that is 270 days after the date of the
enactment of this Act, the Commissioner, in consultation with the
Secretary of Commerce and the Director of U.S. Immigration and Customs
Enforcement, shall submit to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of Representatives a
report on the efforts being taken to prevent and investigate the entry
of covered merchandise into the customs territory of the United States
through evasion.
(b) Contents.--Each report required under subsection (a) shall
include--
(1) for the calendar year preceding the submission of the
report--
(A) a summary of the efforts of U.S. Customs and
Border Protection to prevent and investigate the entry
of covered merchandise into the customs territory of
the United States through evasion;
(B) the number of allegations of evasion received
under subsection (b) of section 517 of the Tariff Act
of 1930, as added by section 402 of this Act, and the
number of such allegations resulting in investigations
by U.S. Customs and Border Protection or any other
agency;
(C) a summary of investigations initiated under
subsection (b) of such section 517, including--
(i) the number and nature of the
investigations initiated, conducted, and
completed; and
(ii) the resolution of each completed
investigation;
(D) the number of investigations initiated under
that subsection not completed during the time provided
for making determinations under subsection (c) of such
section 517 and an explanation for why the
investigations could not be completed on time;
(E) the amount of additional duties that were
determined to be owed as a result of such
investigations, the amount of such duties that were
collected, and, for any such duties not collected, a
description of the reasons those duties were not
collected;
(F) with respect to each such investigation that
led to the imposition of a penalty, the amount of the
penalty;
(G) an identification of the countries of origin of
covered merchandise determined under subsection (c) of
such section 517 to be entered into the customs
territory of the United States through evasion;
(H) the amount of antidumping and countervailing
duties collected as a result of any investigations or
other actions by U.S. Customs and Border Protection or
any other agency;
(I) 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 investigate evasion, including any
assessments conducted regarding the allocation of such
personnel and resources; and
(J) a description of training conducted to increase
expertise and effectiveness in the prevention and
investigation of evasion; and
(2) a description of processes and procedures of U.S.
Customs and Border Protection 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 those
guidelines, policies, and practices;
(C) an identification of any changes since the last
report required by this section, if any, that have
materially improved or reduced the effectiveness of
U.S. Customs and Border Protection in preventing and
investigating evasion;
(D) a description of the development and
implementation of policies for the application of
single entry and continuous bonds for entries of
covered merchandise to sufficiently protect the
collection of antidumping and countervailing duties
commensurate with the level of risk of not collecting
those duties;
(E) a description of the processes and procedures
for increased cooperation and information sharing with
the Department of Commerce, U.S. Immigration and
Customs Enforcement, and any other relevant Federal
agencies to prevent and investigate evasion; and
(F) an identification of any recommended policy
changes for other Federal agencies or legislative
changes to improve the effectiveness of U.S. Customs
and Border Protection in preventing and investigating
evasion.
(c) Public Summary.--The Commissioner shall make available to the
public a summary of the report required by subsection (a) that
includes, at a minimum--
(1) a description of the type of merchandise with respect
to which investigations were initiated under subsection (b) of
section 517 of the Tariff Act of 1930, as added by section 402
of this Act;
(2) the amount of additional duties determined to be owed
as a result of such investigations and the amount of such
duties that were collected;
(3) an identification of the countries of origin of covered
merchandise determined under subsection (c) of such section 517
to be entered into the customs territory of the United States
through evasion; and
(4) a description of the types of measures used by U.S.
Customs and Border Protection to prevent and investigate
evasion.
(d) Definitions.--In this section, the terms ``covered
merchandise'' and ``evasion'' have the meanings given those terms in
section 517(a) of the Tariff Act of 1930, as added by section 402 of
this Act.
TITLE V--ADDITIONAL TRADE ENFORCEMENT AND INTELLECTUAL PROPERTY RIGHTS
PROTECTION
Subtitle A--Trade Enforcement
SEC. 501. TRADE ENFORCEMENT PRIORITIES.
(a) In General.--Section 310 of the Trade Act of 1974 (19 U.S.C.
2420) is amended to read as follows:
``SEC. 310. TRADE ENFORCEMENT PRIORITIES.
``(a) Trade Enforcement Priorities, Consultations, and Report.--
``(1) Trade enforcement priorities consultations.--Not
later than May 31 of each calendar year that begins after the
date of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, the United States Trade Representative
(in this section referred to as the `Trade Representative')
shall consult with the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of Representatives
with respect to the prioritization of acts, policies, or
practices of foreign governments that raise concerns with
respect to obligations under the WTO Agreements or any other
trade agreement to which the United States is a party, or
otherwise create or maintain barriers to United States goods,
services, or investment.
``(2) Identification of trade enforcement priorities.--In
identifying acts, policies, or practices of foreign governments
as trade enforcement priorities under this subsection, the
United States Trade Representative shall focus on those acts,
policies, and practices the elimination of which is likely to
have the most significant potential to increase United States
economic growth, and take into account all relevant factors,
including--
``(A) the economic significance of any potential
inconsistency between an obligation assumed by a
foreign government pursuant to a trade agreement to
which both the foreign government and the United States
are parties and the acts, policies, or practices of
that government;
``(B) the impact of the acts, policies, or
practices of a foreign government on maintaining and
creating United States jobs and productive capacity;
``(C) the major barriers and trade distorting
practices described in the most recent National Trade
Estimate required under section 181(b);
``(D) the major barriers and trade distorting
practices described in other relevant reports
addressing international trade and investment barriers
prepared by a Federal agency or congressional
commission during the 12 months preceding the date of
the most recent report under paragraph (3);
``(E) a foreign government's compliance with its
obligations under any trade agreements to which both
the foreign government and the United States are
parties;
``(F) the implications of a foreign government's
procurement plans and policies; and
``(G) the international competitive position and
export potential of United States products and
services.
``(3) Report on trade enforcement priorities and actions
taken to address.--
``(A) In general.--Not later than July 31 of each
calendar year that begins after the date of the
enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, the Trade Representative shall
report to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives on acts, policies, or practices of
foreign governments identified as trade enforcement
priorities based on the consultations under paragraph
(1) and the criteria set forth in paragraph (2).
``(B) Report in subsequent years.--The Trade
Representative shall include, when reporting under
subparagraph (A) in any calendar year after the
calendar year that begins after the date of the
enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, a description of actions taken
to address any acts, policies, or practices of foreign
governments identified as trade enforcement priorities
under this subsection in the calendar year preceding
that report and, as relevant, any year before that
calendar year.
``(b) Semiannual Enforcement Consultations.--
``(1) In general.--At the same time as the reporting under
subsection (a)(3), and not later than January 31 of each
following year, the Trade Representative shall consult with the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives with respect to the
identification, prioritization, investigation, and resolution
of acts, policies, or practices of foreign governments of
concern with respect to obligations under the WTO Agreements or
any other trade agreement to which the United States is a
party, or that otherwise create or maintain trade barriers.
``(2) Acts, policies, or practices of concern.--The
semiannual enforcement consultations required by paragraph (1)
shall address acts, policies, or practices of foreign
governments that raise concerns with respect to obligations
under the WTO Agreements or any other trade agreement to which
the United States is a party, or otherwise create or maintain
trade barriers, including--
``(A) engagement with relevant trading partners;
``(B) strategies for addressing such concerns;
``(C) availability and deployment of resources to
be used in the investigation or resolution of such
concerns;
``(D) the merits of any potential dispute
resolution proceeding under the WTO Agreements or any
other trade agreement to which the United States is a
party relating to such concerns; and
``(E) any other aspects of such concerns.
``(3) Active investigations.--The semiannual enforcement
consultations required by paragraph (1) shall address acts,
policies, or practices that the Trade Representative is
actively investigating with respect to obligations under the
WTO Agreements or any other trade agreement to which the United
States is a party, including--
``(A) strategies for addressing concerns raised by
such acts, policies, or practices;
``(B) any relevant timeline with respect to
investigation of such acts, policies, or practices;
``(C) the merits of any potential dispute
resolution proceeding under the WTO Agreements or any
other trade agreement to which the United States is a
party with respect to such acts, policies, or
practices;
``(D) barriers to the advancement of the
investigation of such acts, policies, or practices; and
``(E) any other matters relating to the
investigation of such acts, policies, or practices.
``(4) Ongoing enforcement actions.--The semiannual
enforcement consultations required by paragraph (1) shall
address all ongoing enforcement actions taken by or against the
United States with respect to obligations under the WTO
Agreements or any other trade agreement to which the United
States is a party, including--
``(A) any relevant timeline with respect to such
actions;
``(B) the merits of such actions;
``(C) any prospective implementation actions;
``(D) potential implications for any law or
regulation of the United States;
``(E) potential implications for United States
stakeholders, domestic competitors, and exporters; and
``(F) other issues relating to such actions.
``(5) Enforcement resources.--The semiannual enforcement
consultations required by paragraph (1) shall address the
availability and deployment of enforcement resources, resource
constraints on monitoring and enforcement activities, and
strategies to address those constraints, including the use of
available resources of other Federal agencies to enhance
monitoring and enforcement capabilities.
``(c) Investigation and Resolution.--In the case of any acts,
policies, or practices of a foreign government identified as a trade
enforcement priority under subsection (a), the Trade Representative
shall, not later than the date of the first semiannual enforcement
consultations held under subsection (b) after the identification of the
priority, take appropriate action to address that priority, including--
``(1) engagement with the foreign government to resolve
concerns raised by such acts, policies, or practices;
``(2) initiation of an investigation under section
302(b)(1) with respect to such acts, policies, or practices;
``(3) initiation of negotiations for a bilateral agreement
that provides for resolution of concerns raised by such acts,
policies, or practices; or
``(4) initiation of dispute settlement proceedings under
the WTO Agreements or any other trade agreement to which the
United States is a party with respect to such acts, policies,
or practices.
``(d) Enforcement Notifications and Consultation.--
``(1) Initiation of enforcement action.--The Trade
Representative shall notify and consult with the Committee on
Finance of the Senate and the Committee on Ways and Means of
the House of Representatives in advance of initiation of any
formal trade dispute by or against the United States taken in
regard to an obligation under the WTO Agreements or any other
trade agreement to which the United States is a party. With
respect to a formal trade dispute against the United States, if
advance notification and consultation are not possible, the
Trade Representative shall notify and consult at the earliest
practicable opportunity after initiation of the dispute.
``(2) Circulation of reports.--The Trade Representative
shall notify and consult with the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives in advance of the announced or anticipated
circulation of any report of a dispute settlement panel or the
Appellate Body of the World Trade Organization or of a dispute
settlement panel under any other trade agreement to which the
United States is a party with respect to a formal trade dispute
by or against the United States.
``(e) Definitions.--In this section:
``(1) WTO.--The term `WTO' means the World Trade
Organization.
``(2) WTO agreement.--The term `WTO Agreement' has the
meaning given that term in section 2(9) of the Uruguay Round
Agreements Act (19 U.S.C. 3501(9)).
``(3) WTO agreements.--The term `WTO Agreements' means the
WTO Agreement and agreements annexed to that Agreement.''.
(b) Clerical Amendment.--The table of contents for the Trade Act of
1974 is amended by striking the item relating to section 310 and
inserting the following:
``Sec. 310. Trade enforcement priorities.''.
SEC. 502. EXERCISE OF WTO AUTHORIZATION TO SUSPEND CONCESSIONS OR OTHER
OBLIGATIONS UNDER TRADE AGREEMENTS.
(a) In General.--Section 306 of the Trade Act of 1974 (19 U.S.C.
2416) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
``(c) Exercise of WTO Authorization To Suspend Concessions or Other
Obligations.--If--
``(1) action has terminated pursuant to section 307(c),
``(2) the petitioner or any representative of the domestic
industry that would benefit from reinstatement of action has
submitted to the Trade Representative a written request for
reinstatement of action, and
``(3) the Trade Representative has completed the
requirements of subsection (d) and section 307(c)(3),
the Trade Representative may at any time determine to take action under
section 301(c) to exercise an authorization to suspend concessions or
other obligations under Article 22 of the Understanding on Rules and
Procedures Governing the Settlement of Disputes (referred to in section
101(d)(16) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(16))).''.
(b) Conforming Amendments.--Chapter 1 of title III of the Trade Act
of 1974 (19 U.S.C. 2411 et seq.) is amended--
(1) in section 301(c)(1) (19 U.S.C. 2411(c)(1)), in the
matter preceding subparagraph (A), by inserting ``or section
306(c)'' after ``subsection (a) or (b)'';
(2) in section 306(b) (19 U.S.C. 2416(b)), in the
subsection heading, by striking ``Further Action'' and
inserting ``Action on the Basis of Monitoring'';
(3) in section 306(d) (19 U.S.C. 2416(d)), as redesignated
by subsection (a)(1), by inserting ``or (c)'' after
``subsection (b)''; and
(4) in section 307(c)(3) (19 U.S.C. 2417(c)(3)), by
inserting ``or if a request is submitted to the Trade
Representative under 306(c)(2) to reinstate action,'' after
``under section 301,''.
SEC. 503. TRADE MONITORING.
(a) In General.--Chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.) is amended by adding at the end the following:
``SEC. 205. TRADE MONITORING.
``(a) Monitoring Tool for Imports.--
``(1) In general.--Not later than 180 days after the date
of the enactment of this section, the United States
International Trade Commission shall make available on a
website of the Commission an import monitoring tool to allow
the public access to data on the volume and value of goods
imported into the United States for the purpose of assessing
whether such data has changed with respect to such goods over a
period of time.
``(2) Data described.--For purposes of the monitoring tool
under paragraph (1), the Commission shall use data compiled by
the Department of Commerce and such other government data as
the Commission considers appropriate.
``(3) Periods of time.--The Commission shall ensure that
data accessed through the monitoring tool under paragraph (1)
includes data for the most recent quarter for which such data
are available and previous quarters as the Commission considers
practicable.
``(b) Monitoring Reports.--
``(1) In general.--Not later than 270 days after the date
of the enactment of this section, and not less frequently than
quarterly thereafter, the Secretary of Commerce shall publish
on a website of the Department of Commerce, and notify the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives of the availability
of, a monitoring report on changes in the volume and value of
trade with respect to imports and exports of goods categorized
based on the 6-digit subheading number of the goods under the
Harmonized Tariff Schedule of the United States during the most
recent quarter for which such data are available and previous
quarters as the Secretary considers practicable.
``(2) Requests for comment.--Not later than one year after
the date of the enactment of this section, the Secretary of
Commerce shall solicit through the Federal Register public
comment on the monitoring reports described in paragraph (1).
``(c) Sunset.--The requirements under this section terminate on the
date that is 7 years after the date of the enactment of this
section.''.
(b) Clerical Amendment.--The table of contents for the Trade Act of
1974 (19 U.S.C. 2101 et seq.) is amended by inserting after the item
relating to section 204 the following:
``Sec. 205. Trade monitoring.''.
SEC. 504. HONEY TRANSSHIPMENT.
(a) In General.--The Commissioner shall direct appropriate
personnel and resources of U.S. Customs and Border Protection to
address concerns that honey is being imported into the United States in
violation of the customs and trade laws of the United States.
(b) Country of Origin.--
(1) In general.--The Commissioner shall compile a database
of the individual characteristics of honey produced in foreign
countries to facilitate the verification of country of origin
markings of imported honey.
(2) Engagement with foreign governments.--The Commissioner
shall seek to engage the customs agencies of foreign
governments for assistance in compiling the database described
in paragraph (1).
(3) Consultation with industry.--In compiling the database
described in paragraph (1), the Commissioner shall consult with
entities in the honey industry regarding the development of
industry standards for honey identification.
(4) Consultation with food and drug administration.--In
compiling the database described in paragraph (1), the
Commissioner shall consult with the Commissioner of Food and
Drugs.
(c) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Commissioner shall submit to Congress a
report that--
(1) describes and assesses the limitations in the existing
analysis capabilities of laboratories with respect to
determining the country of origin of honey samples or the
percentage of honey contained in a sample; and
(2) includes any recommendations of the Commissioner for
improving such capabilities.
(d) Sense of Congress.--It is the sense of Congress that the
Commissioner of Food and Drugs should promptly establish a national
standard of identity for honey for the Commissioner responsible for
U.S. Customs and Border Protection to use to ensure that imports of
honey are--
(1) classified accurately for purposes of assessing duties;
and
(2) denied entry into the United States if such imports
pose a threat to the health or safety of consumers in the
United States.
SEC. 505. ILLICITLY IMPORTED, EXPORTED, OR TRAFFICKED CULTURAL
PROPERTY, ARCHAEOLOGICAL OR ETHNOLOGICAL MATERIALS, AND
FISH, WILDLIFE, AND PLANTS.
(a) In General.--The Commissioner and the Director of U.S.
Immigration and Customs Enforcement shall ensure that appropriate
personnel of U.S. Customs and Border Protection and U.S. Immigration
and Customs Enforcement, as the case may be, are trained in the
detection, identification, detention, seizure, and forfeiture of
cultural property, archaeological or ethnological materials, and fish,
wildlife, and plants, the importation, exportation, or trafficking of
which violates the laws of the United States.
(b) Training.--The Commissioner and the Director are authorized to
accept training and other support services from experts outside of the
Federal Government with respect to the detection, identification,
detention, seizure, and forfeiture of cultural property, archaeological
or ethnological materials, or fish, wildlife, and plants described in
subsection (a).
Subtitle B--Intellectual Property Rights Protection
SEC. 511. ESTABLISHMENT OF CHIEF INNOVATION AND INTELLECTUAL PROPERTY
NEGOTIATOR.
(a) In General.--Section 141 of the Trade Act of 1974 (19 U.S.C.
2171) is amended--
(1) in subsection (b), by striking paragraph (2) and
inserting the following:
``(2) There shall be in the Office three Deputy United States Trade
Representatives, one Chief Agricultural Negotiator, and one Chief
Innovation and Intellectual Property Negotiator, who shall be appointed
by the President, by and with the advice and consent of the Senate. As
an exercise of the rulemaking power of the Senate, any nomination of a
Deputy United States Trade Representative, the Chief Agricultural
Negotiator, or the Chief Innovation and Intellectual Property
Negotiator submitted to the Senate for its advice and consent, and
referred to a committee, shall be referred to the Committee on Finance.
Each Deputy United States Trade Representative, the Chief Agricultural
Negotiator, and the Chief Innovation and Intellectual Property
Negotiator shall hold office at the pleasure of the President and shall
have the rank of Ambassador.''; and
(2) in subsection (c)--
(A) by moving paragraph (5) two ems to the left;
and
(B) by adding at the end the following:
``(6) The principal functions of the Chief Innovation and
Intellectual Property Negotiator shall be to conduct trade negotiations
and to enforce trade agreements relating to United States intellectual
property and to take appropriate actions to address acts, policies, and
practices of foreign governments that have a significant adverse impact
on the value of United States innovation. The Chief Innovation and
Intellectual Property Negotiator shall be a vigorous advocate on behalf
of United States innovation and intellectual property interests. The
Chief Innovation and Intellectual Property Negotiator shall perform
such other functions as the United States Trade Representative may
direct.''.
(b) Compensation.--Section 5314 of title 5, United States Code, is
amended by striking ``Chief Agricultural Negotiator.'' and inserting
the following:
``Chief Agricultural Negotiator, Office of the United States Trade
Representative.
``Chief Innovation and Intellectual Property Negotiator, Office of
the United States Trade Representative.''.
(c) Report Required.--Not later than one year after the appointment
of the first Chief Innovation and Intellectual Property Negotiator
pursuant to paragraph (2) of section 141(b) of the Trade Act of 1974,
as amended by subsection (a), and annually thereafter, the United
States Trade Representative 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 in detail--
(1) enforcement actions taken by the Trade Representative
during the year preceding the submission of the report to
ensure the protection of United States innovation and
intellectual property interests; and
(2) other actions taken by the Trade Representative to
advance United States innovation and intellectual property
interests.
SEC. 512. MEASURES RELATING TO COUNTRIES THAT DENY ADEQUATE PROTECTION
FOR INTELLECTUAL PROPERTY RIGHTS.
(a) Inclusion of Countries That Deny Adequate Protection of Trade
Secrets.--Section 182(d)(2) of the Trade Act of 1974 (19 U.S.C.
2242(d)(2)) is amended by inserting ``, trade secrets,'' after
``copyrights''.
(b) Special Rules for Countries on the Priority Watch List of the
United States Trade Representative.--
(1) In general.--Section 182 of the Trade Act of 1974 (19
U.S.C. 2242) is amended by striking subsection (g) and
inserting the following:
``(g) Special Rules for Foreign Countries on the Priority Watch
List.--
``(1) Action plans.--
``(A) In general.--Not later than 90 days after the
date on which the Trade Representative submits the
National Trade Estimate under section 181(b), the Trade
Representative shall develop an action plan described
in subparagraph (C) with respect to each foreign
country described in subparagraph (B).
``(B) Foreign country described.--The Trade
Representative shall develop an action plan pursuant to
subparagraph (A) with respect to each foreign country
that--
``(i) the Trade Representative has
identified for placement on the priority watch
list; and
``(ii) has remained on such list for at
least 1 year.
``(C) Action plan described.--An action plan
developed pursuant to subparagraph (A) shall contain
the benchmarks described in subparagraph (D) and be
designed to assist the foreign country--
``(i) to achieve--
``(I) adequate and effective
protection of intellectual property
rights; and
``(II) fair and equitable market
access for United States persons that
rely upon intellectual property
protection; or
``(ii) to make significant progress toward
achieving the goals described in clause (i).
``(D) Benchmarks described.--The benchmarks
contained in an action plan developed pursuant to
subparagraph (A) are such legislative, institutional,
enforcement, or other actions as the Trade
Representative determines to be necessary for the
foreign country to achieve the goals described in
clause (i) or (ii) of subparagraph (C).
``(2) Failure to meet action plan benchmarks.--If, 1 year
after the date on which an action plan is developed under
paragraph (1)(A), the President, in consultation with the Trade
Representative, determines that the foreign country to which
the action plan applies has not substantially complied with the
benchmarks described in paragraph (1)(D), the President may
take appropriate action with respect to the foreign country.
``(3) Priority watch list defined.--In this subsection, the
term `priority watch list' means the priority watch list
established by the Trade Representative.
``(h) Annual Report.--Not later than 30 days after the date on
which the Trade Representative submits the National Trade Estimate
under section 181(b), the Trade Representative shall transmit to the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a report on actions taken under this
section during the 12 months preceding such report, and the reasons for
such actions, including--
``(1) any foreign countries identified under subsection
(a);
``(2) a description of progress made in achieving improved
intellectual property protection and market access for persons
relying on intellectual property rights; and
``(3) a description of the action plans developed under
subsection (g) and any actions taken by foreign countries under
such plans.''.
(2) Authorization of appropriations.--
(A) In general.--There are authorized to be
appropriated to the Office of the United States Trade
Representative such sums as may be necessary to provide
assistance to any developing country to which an action
plan applies under section 182(g) of the Trade Act of
1974, as amended by paragraph (1), to facilitate the
efforts of the developing country to comply with the
benchmarks contained in the action plan. Such
assistance may include capacity building, activities
designed to increase awareness of intellectual property
rights, and training for officials responsible for
enforcing intellectual property rights in the
developing country.
(B) Developing country defined.--In this paragraph,
the term ``developing country'' means a country
classified by the World Bank as having a low-income or
lower-middle-income economy.
(3) Rule of construction.--Nothing in this subsection shall
be construed as limiting the authority of the President or the
United States Trade Representative to develop action plans
other than action plans described in section 182(g) of the
Trade Act of 1974, as amended by paragraph (1), or to take any
action otherwise authorized by law in response to the failure
of a foreign country to provide adequate and effective
protection and enforcement of intellectual property rights.
TITLE VI--MISCELLANEOUS PROVISIONS
SEC. 601. 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. 602. 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. 603. 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. 604. 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. 605. 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. 606. 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 inserting ``or articles classifiable under the same
8-digit HTS subheading number as such articles,'' after ``any
such articles,'';
(6) 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
(7) 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--
(i) 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''; and
(ii) by striking the last sentence and
inserting the following: ``Notwithstanding
subparagraph (A), drawback shall be allowed
under this paragraph with respect to wine if
the imported wine and the exported wine are of
the same color and the price variation between
the imported wine and the exported wine does
not exceed 50 percent. Transfers of merchandise
may be evidenced by business records kept in
the normal course of business and no additional
certificates of transfer shall be required.'';
(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
606(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 606(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. 607. INCLUSION OF CERTAIN INFORMATION IN SUBMISSION OF NOMINATION
FOR APPOINTMENT AS DEPUTY UNITED STATES TRADE
REPRESENTATIVE.
Section 141(b) of the Trade Act of 1974 (19 U.S.C. 2171(b)) is
amended by adding at the end the following:
``(4) When the President submits to the Senate for its advice and
consent a nomination of an individual for appointment as a Deputy
United States Trade Representative under paragraph (2), the President
shall include in that submission information on the country, regional
offices, and functions of the Office of the United States Trade
Representative with respect to which that individual will have
responsibility.''.
SEC. 608. BIENNIAL REPORTS REGARDING COMPETITIVENESS ISSUES FACING THE
UNITED STATES ECONOMY AND COMPETITIVE CONDITIONS FOR
CERTAIN KEY UNITED STATES INDUSTRIES.
(a) In General.--The United States International Trade Commission
shall conduct a series of investigations, and submit a report on each
such investigation in accordance with subsection (c), regarding
competitiveness issues facing the economy of the United States and
competitive conditions for certain key United States industries.
(b) Contents of Report.--
(1) In general.--Each report required by subsection (a)
shall include, to the extent practicable, the following:
(A) A detailed assessment of competitiveness issues
facing the economy of the United States, over the 10-
year period beginning on the date on which the report
is submitted, that includes--
(i) projections, over that 10-year period,
of economic measures, such as measures relating
to production in the United States and United
States trade, for the economy of the United
States and for key United States industries,
based on ongoing trends in the economy of the
United States and global economies and
incorporating estimates from prominent United
States, foreign, multinational, and private
sector organizations; and
(ii) a description of factors that drive
economic growth, such as domestic productivity,
the United States workforce, foreign demand for
United States goods and services, and industry-
specific developments.
(B) A detailed assessment of a key United States
industry or key United States industries that, to the
extent practicable--
(i) identifies with respect to each such
industry the principal factors driving
competitiveness as of the date on which the
report is submitted; and
(ii) describes, with respect to each such
industry, the structure of the global industry,
its market characteristics, current industry
trends, relevant policies and programs of
foreign governments, and principal factors
affecting future competitiveness.
(2) Selection of key united states industries.--
(A) In general.--In conducting assessments required
under paragraph (1)(B), the Commission shall, to the
extent practicable, select a different key United
States industry or different key United States
industries for purposes of each report required by
subsection (a).
(B) Consultations with congress.--The Commission
shall consult with the Committee on Finance of the
Senate and the Committee on Ways and Means of the House
of Representatives before selecting the key United
States industry or key United States industries for
purposes of each report required by subsection (a).
(c) Submission of Reports.--
(1) In general.--Not later than May 15, 2017, and every 2
years thereafter through 2025, the Commission 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
most recent investigation conducted under subsection (a).
(2) Extension of deadline.--The Commission may, after
consultation with the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives, submit a report under paragraph (1) later than
the date required by that paragraph.
(3) Confidential business information.--A report submitted
under paragraph (1) shall not include any confidential business
information unless--
(A) the party that submitted the confidential
business information to the Commission had notice, at
the time of submission, that the information would be
released by the Commission; or
(B) that party consents to the release of the
information.
(d) Key United States Industry Defined.--In this section, the term
``key United States industry'' means a goods or services industry
that--
(1) contributes significantly to United States economic
activity and trade; or
(2) is a potential growth area for the United States and
global markets.
SEC. 609. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER PROTECTION
AGREEMENTS.
(a) In General.--Not later than one year after entering into an
agreement under a program specified in subsection (b), and annually
thereafter until the termination of the program, 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 includes
the following:
(1) A description of the development of the program.
(2) A description of the type of entity with which U.S.
Customs and Border Protection entered into the agreement and
the amount that entity reimbursed U.S. Customs and Border
Protection under the agreement.
(3) An identification of the type of port of entry to which
the agreement relates and an assessment of how the agreement
provides economic benefits at the port of entry.
(4) A description of the services provided by U.S. Customs
and Border Protection under the agreement during the year
preceding the submission of the report.
(5) The amount of fees collected under the agreement during
that year.
(6) A detailed accounting of how the fees collected under
the agreement have been spent during that year.
(7) A summary of any complaints or criticism received by
U.S. Customs and Border Protection during that year regarding
the agreement.
(8) An assessment of the compliance of the entity described
in paragraph (2) with the terms of the agreement.
(9) Recommendations with respect to how activities
conducted pursuant to the agreement could function more
effectively or better produce economic benefits.
(10) A summary of the benefits to and challenges faced by
U.S. Customs and Border Protection and the entity described in
paragraph (2) under the agreement.
(b) Program Specified.--A program specified in this subsection is--
(1) the program for entering into reimbursable fee
agreements for the provision of U.S. Customs and Border
Protection services established by section 560 of the
Department of Homeland Security Appropriations Act, 2013
(division D of Public Law 113-6; 127 Stat. 378); or
(2) the pilot program authorizing U.S. Customs and Border
Protection to enter into partnerships with private sector and
government entities at ports of entry established by section
559 of the Department of Homeland Security Appropriations Act,
2014 (division F of Public Law 113-76; 6 U.S.C. 211 note).
SEC. 610. CHARTER FLIGHTS.
Section 13031(e)(1) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(e)(1)) is amended--
(1) by striking ``(1) Notwithstanding section 451 of the
Tariff Act of 1930 (19 U.S.C. 1451) or any other provision of
law (other than paragraph (2))'' and inserting the following:
``(1)(A) Notwithstanding section 451 of the Tariff Act of 1930 (19
U.S.C. 1451) or any other provision of law (other than subparagraph (B)
and paragraph (2))''; and
(2) by adding at the end the following:
``(B)(i) An appropriate officer of U.S. Customs and Border
Protection may assign a sufficient number of employees of U.S. Customs
and Border Protection (if available) to perform services described in
clause (ii) for a charter air carrier (as defined in section 40102 of
title 49, United States Code) for a charter flight arriving after
normal operating hours at an airport that is an established port of
entry serviced by U.S. Customs and Border Protection, notwithstanding
that overtime funds for those services are not available, if the
charter air carrier--
``(I) not later than 4 hours before the flight arrives,
specifically requests that such services be provided; and
``(II) pays any overtime fees incurred in connection with
such services.
``(ii) Services described in this clause are customs services for
passengers and their baggage or any other such service that could
lawfully be performed during regular hours of operation.''.
SEC. 611. AMENDMENT TO TARIFF ACT OF 1930 TO REQUIRE COUNTRY OF ORIGIN
MARKING OF CERTAIN CASTINGS.
(a) In General.--Section 304(e) of the Tariff Act of 1930 (19
U.S.C. 1304(e)) is amended--
(1) in the subsection heading, by striking ``Manhole Rings
or Frames, Covers, and Assemblies Thereof'' and inserting
``Castings'';
(2) by inserting ``inlet frames, tree and trench grates,
lampposts, lamppost bases, cast utility poles, bollards,
hydrants, utility boxes,'' before ``manhole rings,''; and
(3) by adding at the end before the period the following:
``in a location such that it will remain visible after
installation''.
(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 the importation of castings described in such amendments on or after
the date that is 180 days after such date of enactment.
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