[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4082 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4082
To amend the Tariff Act of 1930 to increase accountability relating to
articles receiving exemptions from duties for de minimis entries and to
require regulations on enhanced data collection with respect to such
entries, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 9, 2024
Mr. Braun (for himself and Ms. Baldwin) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Tariff Act of 1930 to increase accountability relating to
articles receiving exemptions from duties for de minimis entries and to
require regulations on enhanced data collection with respect to such
entries, 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.
This Act may be cited as the ``Ensure Accountability in De Minimis
Act of 2024''.
SEC. 2. LIMITATION ON PERSONS AUTHORIZED TO ENTER ARTICLES ELIGIBLE FOR
DE MINIMIS EXEMPTION FROM DUTIES.
(a) In General.--Section 498 of the Tariff Act of 1930 (19 U.S.C.
1498) is amended by adding at the end the following:
``(c) Importation Under Administrative Exemption Only by Certain
Parties.--Notwithstanding any other provision of this Act, an article
is eligible for an administrative exemption under section 321(a)(2)(C)
only if the article is entered--
``(1) as international mail; or
``(2) by--
``(A) the consignee, the owner, or the purchaser of
the article; or
``(B) if designated by a person specified in
subparagraph (A), a person holding a valid customs
broker's license issued under section 641(b).''.
(b) Applicability.--The amendments made by subsection (a) shall
apply with respect to articles entered, or withdrawn from warehouse for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.
SEC. 3. MODIFICATION TO PENALTIES FOR FRAUD, GROSS NEGLIGENCE, AND
NEGLIGENCE.
(a) Directing or Facilitating Violations.--Section 592 of the
Tariff Act of 1930 (19 U.S.C. 1592) is amended--
(1) in subsection (a)(1)(B)--
(A) by striking ``may aid or abet'' and inserting
the following: ``may--
``(i) aid or abet'';
(B) by striking the period at the end and inserting
``; or''; and
(C) by adding at the end the following:
``(ii) direct or facilitate a violation of
subparagraph (A).''; and
(2) in subsection (b)(1)(A)(ii), by striking ``or the
aiding or procuring of the entry or introduction'' and
inserting ``the aiding or procuring, or the direction or
facilitation of the entry or introduction or attempted entry or
introduction''.
(b) Recurring Negligent or Grossly Negligent Violations Relating to
De Minimis Entries.--Section 592(c) of the Tariff Act of 1930 (19
U.S.C. 1592(c)) is amended--
(1) by redesignating paragraphs (4) through (14) as
paragraphs (5) through (15), respectively; and
(2) by inserting after paragraph (3) the following:
``(4) Recurring negligent or grossly negligent violations
relating to de minimis entries.--
``(A) In general.--A recurring negligent or grossly
negligent violation of subsection (a) that relates to
entering articles for which an administrative exemption
from duties under section 321(a)(2)(C) is sought is
punishable by a civil penalty in--
``(i) except as provided by clause (ii), an
amount not to exceed the greater of--
``(I) 10 times the aggregate amount
of the lawful duties, taxes, and fees
of which the United States is or may be
deprived; or
``(II) $2,000; and
``(ii) if the recurring violation did not
affect the assessment of duties, an amount not
to exceed the greater of--
``(I) 200 percent of the aggregate
domestic value of the merchandise; or
``(II) $2,000.
``(B) Recurring defined.--
``(i) In general.--In this paragraph, the
term `recurring', with respect to a violation
of subsection (a) by a person that relates to
entering articles described in subparagraph
(A), means that--
``(I) the violation--
``(aa) is a second or
subsequent such violation by
that person; and
``(bb) takes place not
later than 3 months after the
person received a penalty claim
under subsection (b)(2) for a
prior such violation and for
which the person had the
opportunity seek remission or
mitigation; and
``(II) the person has been found to
have repeatedly, over an aggregate
period of 3 months or more, committed
violations of subsection (a) that
relate to entering articles described
in subparagraph (A).
``(ii) Effect of intervening compliant
entries.--For purposes of clause (i), if,
between negligent or grossly negligent
violations of subsection (a) by a person that
relate to entering articles described in
subparagraph (A), that person submits entry
documentation with respect to a shipment of
articles described in subparagraph (A)
accurately and in compliance with the law, the
submission of such entry documentation shall
not prevent the negligent or grossly negligent
violations from being considered recurring.''.
(c) Definitions of Negligent and Grossly Negligent.--Section 592(a)
of the Tariff Act of 1930 (19 U.S.C. 1592(a)) is amended by adding at
the end the following:
``(3) Definitions.--In this section:
``(A) Grossly negligent.--The term `grossly
negligent', with respect to a violation of paragraph
(1) by a person, means that the person committed the
violation with--
``(i) actual knowledge of or wanton
disregard for the relevant facts; and
``(ii) indifference or disregard to whether
the person was violating paragraph (1).
``(B) Negligent.--The term `negligent', with
respect to a violation of paragraph (1) by a person,
means that the person failed to exercise reasonable
care and competence--
``(i) to ensure that documents, data, and
information provided by the person in
connection with the entry of merchandise are
complete and accurate; or
``(ii) to perform any material act required
by law.''.
(d) Technical Amendment.--Section 592 of the Tariff Act of 1930 (19
U.S.C. 1592), as amended by this section, is further amended by
striking ``the Customs Service'' each place it appears and inserting
``U.S. Customs and Border Protection''.
SEC. 4. DEADLINE FOR INFORMATION SHARING AGREEMENTS WITH FEDERAL
AGENCIES PARTICIPATING IN INTERNATIONAL TRADE DATA
SYSTEM.
Section 411(d)(4)(A)(ii) of the Tariff Act of 1930 (19 U.S.C.
1411(d)(4)(A)(ii)) is amended by striking ``enters into'' inserting
``not later than 18 months after the date of the enactment of the
Ensure Accountability in De Minimis Act of 2024, enters into''.
SEC. 5. REGULATIONS ON ENHANCED DATA COLLECTION WITH RESPECT TO DE
MINIMIS ENTRIES.
(a) Requirement for Regulations.--
(1) In general.--Not later than 18 months after the date of
the enactment of this Act, the Secretary of the Treasury, in
consultation with the Commissioner of U.S. Customs and Border
Protection and pursuant to subsections (b) and (c), shall
prescribe regulations requiring enhanced data collection with
respect to articles for which an administrative exemption from
duties under section 321(a)(2)(C) of the Tariff Act of 1930 (19
U.S.C. 1321(a)(2)(C)) is sought, including obtaining
information with respect to the origin of materials used in the
production of such articles, in order to ensure that the
articles for which the exemption is sought are not articles
described in paragraph (2) or articles that are otherwise
prohibited from entering the United States.
(2) Articles described.--An article is described in this
paragraph if the article--
(A) is produced with forced labor (as defined in
section 307 of the Tariff Act of 1930 (19 U.S.C.
1307));
(B) bears a counterfeit mark (within the meaning of
section 45 of the Act entitled ``An Act to provide for
the registration and protection of trademarks used in
commerce, to carry out the provisions of certain
international conventions, and for other purposes'',
approved July 5, 1946 (commonly known as the
``Trademark Act of 1946'' or the ``Lanham Act'') (15
U.S.C. 1127)); or
(C) is a controlled substance (as defined in
section 102 of the Controlled Substances Act (21 U.S.C.
802)) that is not imported in accordance with
applicable law.
(b) Development of Regulations.--In developing the regulations
required by subsection (a), the Secretary shall--
(1) solicit comments from and consult with a broad range of
parties that are likely to be affected by the regulations,
including importers, exporters, carriers, customs brokers, and
freight forwarders, among other interested parties;
(2) ensure the protection of the privacy of proprietary
information (within the meaning of section 777(b) of the Tariff
Act of 1930 (19 U.S.C. 1677f(b))), except for information
shared, through the International Trade Data System established
pursuant to section 411(d) of the Tariff Act of 1930 (19 U.S.C.
1411(d)), with Federal agencies participating in that system;
(3) to the extent practicable, avoid imposing requirements
pursuant to those regulations that are redundant with each
other or that are redundant with requirements under other
provisions of law; and
(4) include regulations that request the Postmaster General
to transmit to the Secretary the information described in
subsection (a)(1), to the extent feasible and consistent with
international law, with respect to the country of origin of
materials used in the production of articles in international
mail shipments for which an administrative exemption from
duties under section 321(a)(2)(C) of the Tariff Act of 1930 (19
U.S.C. 1321(a)(2)(C)) is sought.
(c) Notice of Proposed Rulemaking and Comment Period.--The
Secretary, in consultation with the Commissioner, shall--
(1) publish a notice of proposed rulemaking in the Federal
Register; and
(2) provide for a period of not less than 60 days for
public comment on the proposed rulemaking.
(d) Civil Penalty.--
(1) In general.--The Secretary shall impose a civil penalty
on any person that violates the regulations prescribed under
subsection (a) of not more than--
(A) $2,000 for the first violation; and
(B) $5,000 for each subsequent violation.
(2) Additional penalties.--A penalty imposed under this
subsection may be in addition to any other penalty authorized
by law.
SEC. 6. REPORTS.
(a) Report on Illegally Entered Articles for Which De Minimis
Exemptions Sought.--Not later than one year after the date on which the
regulations required by section 5 are finalized, and annually
thereafter, the Commissioner of U.S. Customs and Border Protection, in
consultation with the Secretary of the Treasury, shall submit to the
appropriate congressional committees a report setting forth, for the
year preceding submission of the report--
(1) the total number of articles--
(A) with respect to which an administrative
exemption from duties under section 321(a)(2)(C) of the
Tariff Act of 1930 (19 U.S.C. 1321(a)(2)(C)) was
sought; and
(B) that were seized by U.S. Customs and Border
Protection at ports of entry for entering the United
States illegally;
(2) a description of such articles;
(3) the country of origin of such articles, to the extent
feasible; and
(4) the aggregate fair retail value of such articles in the
country of shipment.
(b) Government Accountability Office Assessment of Shortcomings in
Information Sharing.--
(1) 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 Congress a report assessing--
(A) shortcomings in information shared through the
International Trade Data System established pursuant to
section 411(d) of the Tariff Act of 1930 (19 U.S.C.
1411(d)) among Federal agencies participating in that
system;
(B) implications of those shortcomings with respect
to the enforcement of regulations; and
(C) the establishment of memoranda of understanding
by the Secretary of the Treasury with Federal agencies
participating in the International Trade Data System
pursuant to section 411(d)(4)(A)(ii) of the Tariff Act
of 1930, as amended by section 4.
(2) Form.--The report required by paragraph (1) shall be
submitted in unclassified form, but may include a classified
annex.
(c) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' means--
(1) the Committee on Finance and the Committee on Homeland
Security and Governmental Affairs of the Senate; and
(2) the Committee on Ways and Means and the Committee on
Homeland Security of the House of Representatives.
<all>