Report text available as:

  • TXT
  • PDF   (PDF provides a complete and accurate display of this text.) Tip ?

108th Congress                                            Rept. 108-598
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================
 
  CUSTOMS BORDER SECURITY AND TRADE AGENCIES AUTHORIZATION ACT OF 2004

                                _______
                                

 July 13, 2004.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Thomas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 4418]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Ways and Means, to whom was referred the 
bill (H.R. 4418) to authorize appropriations for fiscal years 
2005 and 2006 for the Bureau of Customs and Border Protection 
and the Bureau of Immigration and Customs Enforcement of the 
Department of Homeland Security, for the Office of the United 
States Trade Representative, for the United States 
International Trade Commission, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
  I. Introduction.....................................................9
          A. Purpose and Summary.................................     9
          B. Background..........................................     9
          C. Legislative History.................................    12
 II. Section by Section Summary......................................12
III. Votes of the Committee..........................................20
          A. Motion to Report the Bill...........................    20
          B. Votes on Amendments.................................    20
 IV. Budget Effects of the Bill......................................21
          A. Committee Estimates of Budgetary Effects............    21
          B. Budget Authority and Tax Expenditures...............    21
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................    21
  V. Other Matters to be Discussed under the Rules of the House......23
          A. Committee Oversight Findings and Recommendations....    23
          B. Statement of General Performance Goals and 
              Objectives.........................................    23
          C. Constitutional Authority Statement..................    23
          D. Information Relating to Unfunded Mandates...........    23
 VI. Changes in Existing Law Made by the Bill, as Reported...........24
VII. Committee Correspondence........................................38
VIII.View............................................................40


  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Customs Border 
Security and Trade Agencies Authorization Act of 2004''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.

    TITLE I--BUREAU OF CUSTOMS AND BORDER PROTECTION AND BUREAU OF 
                  IMMIGRATION AND CUSTOMS ENFORCEMENT

    Subtitle A--Authorization of appropriations; related provisions

Sec. 101. Authorization of appropriations.
Sec. 102. Establishment and implementation of cost accounting system; 
reports.
Sec. 103. Study and report relating to customs user fees.
Sec. 104. Report relating to One Face at the Border Initiative.

     Subtitle B--Technical amendments relating to entry and protest

Sec. 111. Entry of merchandise.
Sec. 112. Limitation on liquidations.
Sec. 113. Protests.
Sec. 114. Review of protests.
Sec. 115. Refunds and errors.
Sec. 116. Definitions and miscellaneous provisions.
Sec. 117. Voluntary reliquidations.
Sec. 118. Effective date.

                  Subtitle C--Miscellaneous provisions

Sec. 121. Designation of San Antonio International Airport for Customs 
processing of certain private aircraft arriving in the United States.
Sec. 122. Authority for the establishment of Integrated Border 
Inspection Areas at the United States-Canada border.
Sec. 123. Designation of foreign law enforcement officers.
Sec. 124. Customs services.
Sec. 125. Sense of Congress on interpretation of textile and apparel 
provisions.
Sec. 126. Technical amendments.

       TITLE II--OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

Sec. 201. Authorization of appropriations.

        TITLE III--UNITED STATES INTERNATIONAL TRADE COMMISSION

Sec. 301. Authorization of appropriations.

    TITLE I--BUREAU OF CUSTOMS AND BORDER PROTECTION AND BUREAU OF 
                  IMMIGRATION AND CUSTOMS ENFORCEMENT

    Subtitle A--Authorization of Appropriations; Related Provisions

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--Subsection (a) of section 301 of the Customs 
Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075) is 
amended--
          (1) in paragraph (1), to read as follows:
``(1) For the fiscal year beginning October 1, 2004, and each fiscal 
year thereafter, there are authorized to be appropriated to the 
Department of Homeland Security for the Bureau of Customs and Border 
Protection and the Bureau of Immigration and Customs Enforcement only 
such sums as may hereafter be authorized by law.'';
          (2) by striking paragraph (2);
          (3) by redesignating paragraph (3) as paragraph (2); and
          (4) in paragraph (2) (as redesignated)--
                  (A) by inserting ``and the Assistant Secretary for 
                United States Immigration and Customs Enforcement, 
                respectively,'' after ``Commissioner of Customs''; and
                  (B) by striking ``Customs Service'' and inserting 
                ``Bureau of Customs and Border Protection and the 
                Bureau of Immigration and Customs Enforcement''.
  (b) Salaries and Expenses.--Subsection (b) of such section is amended 
to read as follows:
  ``(b) Authorization of Appropriations.--
          ``(1) Bureau of customs and border protection.--
                  ``(A) There are authorized to be appropriated for the 
                salaries and expenses of the Bureau of Customs and 
                Border Protection not to exceed the following:
                          ``(i) $6,203,000,000 for fiscal year 2005.
                          ``(ii) $6,469,729,000 for fiscal year 2006.
                  ``(B)(i) The monies authorized to be appropriated 
                under subparagraph (A) with respect to customs revenue 
                functions for any fiscal year, except for such sums as 
                may be necessary for the salaries and expenses of the 
                Bureau of Customs and Border Protection that are 
                incurred in connection with the processing of 
                merchandise that is exempt from the fees imposed under 
                paragraphs (9) and (10) of section 13031(a) of the 
                Consolidated OmnibusBudget Reconciliation Act of 1985 
(19 U.S.C. 58c(a)), shall be appropriated from the Customs User Fee 
Account.
                  ``(ii) In clause (i), the term `customs revenue 
                function' means the following:
                          ``(I) Assessing and collecting customs duties 
                        (including antidumping and countervailing 
                        duties and duties imposed under safeguard 
                        provisions), excise taxes, fees, and penalties 
                        due on imported merchandise, including 
                        classifying and valuing merchandise for the 
                        purposes of such assessment.
                          ``(II) Processing and denial of entry of 
                        persons, baggage, cargo, and mail, with respect 
                        to the assessment and collection of import 
                        duties.
                          ``(III) Detecting and apprehending persons 
                        engaged in fraudulent practices designed to 
                        circumvent the customs laws of the United 
                        States.
                          ``(IV) Enforcing section 337 of the Tariff 
                        Act of 1930 and provisions relating to import 
                        quotas and the marking of imported merchandise, 
                        and providing Customs Recordations for 
                        copyrights, patents, and trademarks.
                          ``(V) Collecting accurate import data for 
                        compilation of international trade statistics.
                          ``(VI) Enforcing reciprocal trade agreements.
                          ``(VII) Functions performed by the following 
                        personnel, and associated support staff, of the 
                        United States Customs Service prior to the 
                        establishment of the Bureau of Customs and 
                        Border Protection: Import Specialists, Entry 
                        Specialists, Drawback Specialists, National 
                        Import Specialists, Fines and Penalties 
                        Specialists, attorneys of the Office of 
                        Regulations and Rulings, Customs Auditors, 
                        International Trade Specialists, and Financial 
                        System Specialists.
                          ``(VIII) Functions performed by the following 
                        offices, with respect to any function described 
                        in any of subclauses (I) through (VII), and 
                        associated support staff, of the United States 
                        Customs Service prior to the establishment of 
                        the Bureau of Customs and Border Protection: 
                        the Office of Information and Technology, the 
                        Office of Laboratory Services, the Office of 
                        the Chief Counsel, the Office of Congressional 
                        Affairs, the Office of International Affairs, 
                        and the Office of Training and Development.
          ``(2) Bureau of immigration and customs enforcement.--There 
        are authorized to be appropriated for the salaries and expenses 
        of the Bureau of Immigration and Customs Enforcement not to 
        exceed the following:
                  ``(A) $4,011,000,000 for fiscal year 2005.
                  ``(B) $4,335,891,000 for fiscal year 2006.''.

SEC. 102. ESTABLISHMENT AND IMPLEMENTATION OF COST ACCOUNTING SYSTEM; 
                    REPORTS.

  Section 334 of the Customs and Border Security Act of 2002 (19 U.S.C. 
2082 note) is amended to read as follows:

``SEC. 334. ESTABLISHMENT AND IMPLEMENTATION OF COST ACCOUNTING SYSTEM; 
                    REPORTS.

  ``(a) Establishment and Implementation; Customs and Border 
Protection.--
          ``(1) In general.--Not later than September 30, 2005, the 
        Commissioner of Customs shall, in accordance with the audit of 
        the Customs Service's fiscal years 2000 and 1999 financial 
        statements (as contained in the report of the Office of 
        Inspector General of the Department of the Treasury issued on 
        February 23, 2001), establish and implement a cost accounting 
        system--
                  ``(A) for expenses incurred in both commercial and 
                noncommercial operations of the Bureau of Customs and 
                Border Protection of the Department of Homeland 
                Security, which system should specifically identify and 
                distinguish expenses incurred in commercial operations 
                and expenses incurred in noncommercial operations; and
                  ``(B) for expenses incurred both in administering and 
                enforcing the customs laws of the United States and the 
                Federal immigration laws, which system should 
                specifically identify and distinguish expenses incurred 
                in administering and enforcing the customs laws of the 
                United States and the expenses incurred in 
                administering and enforcing the Federal immigration 
                laws.
          ``(2) Additional requirement.--The cost accounting system 
        described in paragraph (1) shall provide for an identification 
        of expenses based on the type of operation, the port at which 
        the operation took place, the amount of time spent on the 
        operation by personnel of the Bureau of Customs and Border 
        Protection, and an identification of expenses based on any 
        other appropriate classification necessary to provide for an 
        accurate and complete accounting of expenses.
  ``(b) Establishment and Implementation; Immigration and Customs 
Enforcement.--
          ``(1) In general.--Not later than September 30, 2005, the 
        Assistant Secretary for United States Immigration and Customs 
        Enforcement shall, in accordance with the audit of the Customs 
        Service's fiscal years 2000 and 1999 financial statements (as 
        contained in the report of the Office of Inspector General of 
        the Department of the Treasury issued on February 23, 2001), 
        establish and implement a cost accounting system--
                  ``(A) for expenses incurred in both commercial and 
                noncommercial operations of the Bureau of Immigration 
                and Customs Enforcement of the Department of Homeland 
                Security, which system should specifically identify and 
                distinguish expenses incurred in commercial operations 
                and expenses incurred in noncommercial operations;
                  ``(B) for expenses incurred both in administering and 
                enforcing the customs laws of the United States and the 
                Federal immigration laws, which system should 
                specifically identify and distinguish expenses incurred 
                in administering and enforcing the customs laws of the 
                United States and the expenses incurred in 
                administering and enforcing the Federal immigration 
                laws.
          ``(2) Additional requirement.--The cost accounting system 
        described in paragraph (1) shall provide for an identification 
        of expenses based on the type of operation, the amount of time 
        spent on the operation by personnel of the Bureau of 
        Immigration and Customs Enforcement, and an identification of 
        expenses based on any other appropriate classification 
        necessary to provide for an accurate and complete accounting of 
        expenses.
  ``(c) Reports.--
          ``(1) Development of the cost accounting systems.--Beginning 
        on the date of the enactment of the Customs Border Security and 
        Trade Agencies Authorization Act of 2004 and ending on the date 
        on which the cost accounting systems described in subsections 
        (a) and (b) are fully implemented, the Commissioner of Customs 
        and the Assistant Secretary for United States Immigration and 
        Customs Enforcement, respectively, shall prepare and submit to 
        Congress on a quarterly basis a report on the progress of 
        implementing the cost accounting systems pursuant to 
        subsections (a) and (b).
          ``(2) Annual reports.--Beginning one year after the date on 
        which the cost accounting systems described in subsections (a) 
        and (b) are fully implemented, the Commissioner of Customs and 
        the Assistant Secretary for United States Immigration and 
        Customs Enforcement, respectively, shall prepare and submit to 
        Congress on an annual basis a report itemizing the expenses 
        identified in subsections (a) and (b).
          ``(3) Office of the inspector general.--Not later than March 
        31, 2006, the Inspector General of the Department of Homeland 
        Security shall prepare and submit to Congress a report 
        analyzing the level of compliance with this section and 
        detailing any additional steps that should be taken to improve 
        compliance with this section.''.

SEC. 103. STUDY AND REPORT RELATING TO CUSTOMS USER FEES.

  (a) Study.--Beginning 180 days after the date on which the cost 
accounting systems described in section 334 of the Customs and Border 
Security Act of 2002 (as amended by section 102 of this Act) are fully 
implemented, the Comptroller General shall conduct a study on the 
extent to which the amount of each customs user fee imposed under 
section 13031(a) of the Consolidated Omnibus Budget Reconciliation Act 
of 1985 (19 U.S.C. 58c(a)) approximates the cost of services provided 
by the Bureau of Customs and Border Protection of the Department of 
Homeland Security relating to the fee so imposed. The study shall 
include an analysis of the use of each such customs user fee by the 
Bureau of Customs and Border Protection.
  (b) Report.--Not later than one year after the date on which the cost 
accounting systems described in section 334 of the Customs and Border 
Security Act of 2002 are fully implemented, the Comptroller General 
shall submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a report in 
classified form containing--
          (1) the results of the study conducted under subsection (a); 
        and
          (2) recommendations for the appropriate amount of the customs 
        user fees if such results indicate that the fees are not 
        commensurate with the level of services provided by the Bureau 
        of Customs and Border Protection.

SEC. 104. REPORT RELATING TO ONE FACE AT THE BORDER INITIATIVE.

  Not later than September 30 of each of the calendar years 2005 and 
2006, the Commissioner of Customs shall prepare and submit to Congress 
a report--
          (1) analyzing the effectiveness of the One Face at the Border 
        Initiative at enhancing security and facilitating trade;
          (2) providing a breakdown of the number of personnel of the 
        Bureau of Customs and Border Protection that were personnel of 
        the United States Customs Service prior to the establishment of 
        the Department of Homeland Security, that were personnel of the 
        Immigration and Naturalization Service prior to the 
        establishment of the Department of Homeland Security, and that 
        were hired after the establishment of the Department of 
        Homeland Security;
          (3) describing the training time provided to each employee on 
        an annual basis for the various training components of the One 
        Face at the Border Initiative; and
          (4) outlining the steps taken by the Bureau of Customs and 
        Border Protection to ensure that expertise is retained with 
        respect to customs, immigration, and agriculture inspection 
        functions under the One Face at the Border Initiative.

     Subtitle B--Technical Amendments Relating to Entry and Protest

SEC. 111. ENTRY OF MERCHANDISE.

  (a) In General.--Subsection (a) of section 484 of the Tariff Act of 
1930 (19 U.S.C. 1484) is amended--
          (1) in paragraph (1)(B), by inserting after ``entry'' the 
        following: ``, or substitute 1 or more reconfigured entries on 
        an import activity summary statement,''; and
          (2) in paragraph (2)(A)--
                  (A) in the second sentence, by inserting after 
                ``statements,'' the following: ``and permit the filing 
                of reconfigured entries,''; and
                  (B) by adding at the end the following: ``Entries 
                filed under paragraph (1)(A) shall not be liquidated if 
                covered by an import activity summary statement, but 
                instead each reconfigured entry in the import activity 
                summary statement shall be subject to liquidation or 
                reliquidation pursuant to section 500, 501, or 504.''.
  (b) Reconciliation.--Subsection (b)(1) of such section is amended in 
the fourth sentence by striking ``15 months'' and inserting ``21 
months''.

SEC. 112. LIMITATION ON LIQUIDATIONS.

  Section 504 of the Tariff Act of 1930 (19 U.S.C. 1504) is amended--
          (1) in subsection (a)--
                  (A) by striking ``or'' at the end of paragraph (3);
                  (B) in paragraph (4), by striking ``filed;'' and 
                inserting ``filed, whichever is earlier; or''; and
                  (C) by inserting after paragraph (4) the following:
          ``(5) if a reconfigured entry is filed under an import 
        activity summary statement, the date the import activity 
        summary statement is filed or should have been filed, whichever 
        is earlier;''; and
          (2) by striking ``at the time of entry'' each place it 
        appears.

SEC. 113. PROTESTS.

  Section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) is amended--
          (1) in subsection (a)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``(relating to refunds and errors) of this 
                Act'' and inserting ``(relating to refunds), any 
                clerical error, mistake of fact, or other inadvertence, 
                whether or not resulting from or contained in an 
                electronic transmission, adverse to the importer, in 
                any entry, liquidation, or reliquidation, and'';
                  (B) in paragraph (5), by inserting ``, including the 
                liquidation of an entry, pursuant to either section 500 
                or section 504'' after ``thereof''; and
                  (C) in paragraph (7), by striking ``(c) or''; and
          (2) in subsection (c)--
                  (A) in paragraph (1), in the sixth sentence, by 
                striking ``A protest may be amended,'' and inserting 
                ``Unless a request for accelerated disposition is filed 
                under section 515(b), a protest may be amended,''; and
                  (B) in paragraph (3)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``ninety days'' and inserting ``180 
                        days'';
                          (ii) in subparagraph (A), by striking 
                        ``notice of'' and inserting ``date of''; and
                          (iii) in the second sentence, by striking 
                        ``90 days'' and inserting ``180 days''.

SEC. 114. REVIEW OF PROTESTS.

  Section 515(b) of the Tariff Act of 1930 (19 U.S.C. 1515(b)) is 
amended in the first sentence by striking ``after ninety days'' and 
inserting ``concurrent with or''.

SEC. 115. REFUNDS AND ERRORS.

  Section 520(c) of the Tariff Act of 1930 (19 U.S.C. 1520(c)) is 
repealed.

SEC. 116. DEFINITIONS AND MISCELLANEOUS PROVISIONS.

  Section 401 of the Tariff Act of 1930 (19 U.S.C. 1401) is amended by 
adding at the end the following:
  ``(t) Reconfigured Entry.--The term `reconfigured entry' means an 
entry filed on an import activity summary statement which substitutes 
for all or part of 1 or more entries filed under section 484(a)(1)(A) 
or filed on a reconciliation entry that aggregates the entry elements 
to be reconciled under section 484(b) for purposes of liquidation, 
reliquidation, or protest.''.

SEC. 117. VOLUNTARY RELIQUIDATIONS.

  Section 501 of the Tariff Act of 1930 (19 U.S.C. 1501) is amended in 
the first sentence by inserting ``or 504'' after ``section 500''.

SEC. 118. EFFECTIVE DATE.

  The amendments made by this subtitle shall apply to merchandise 
entered, or withdrawn from warehouse for consumption, on or after the 
15th day after the date of the enactment of this Act.

                  Subtitle C--Miscellaneous Provisions

SEC. 121. DESIGNATION OF SAN ANTONIO INTERNATIONAL AIRPORT FOR CUSTOMS 
                    PROCESSING OF CERTAIN PRIVATE AIRCRAFT ARRIVING IN 
                    THE UNITED STATES.

  (a) In General.--Section 1453(a) of the Tariff Suspension and Trade 
Act of 2000 is amended by striking ``2-year period'' and inserting ``6-
year period''.
  (b) Effective Date.--The amendment made by subsection (a) shall be 
effective as of November 9, 2002.

SEC. 122. AUTHORITY FOR THE ESTABLISHMENT OF INTEGRATED BORDER 
                    INSPECTION AREAS AT THE UNITED STATES-CANADA 
                    BORDER.

  (a) Findings.--Congress makes the following findings:
          (1) The increased security and safety concerns that developed 
        in the aftermath of the terrorist attacks in the United States 
        on September 11, 2001, need to be addressed.
          (2) One concern that has come to light is the vulnerability 
        of the international bridges and tunnels along the United 
        States borders.
          (3) It is necessary to ensure that potentially dangerous 
        vehicles are inspected prior to crossing these bridges and 
        tunnels; however, currently these vehicles are not inspected 
        until after they have crossed into the United States.
          (4) Establishing Integrated Border Inspection Areas (IBIAs) 
        would address these concerns by inspecting vehicles before they 
        gained access to the infrastructure of international bridges 
        and tunnels joining the United States and Canada.
  (b) Creation of Integrated Border Inspection Areas.--
          (1) In general.--The Commissioner of the Customs Service, in 
        consultation with the Canadian Customs and Revenue Agency 
        (CCRA), shall seek to establish Integrated Border Inspection 
        Areas (IBIAs), such as areas on either side of the United 
        States-Canada border, in which United States Customs officers 
        can inspect vehicles entering the United States from Canada 
        before they enter the United States, or Canadian Customs 
        officers can inspect vehicles entering Canada from the United 
        States before they enter Canada. Such inspections may include, 
        where appropriate, employment of reverse inspection techniques.
          (2) Additional requirement.--The Commissioner of Customs, in 
        consultation with the Administrator of the General Services 
        Administration when appropriate, shall seek to carry out 
        paragraph (1) in a manner that minimizes adverse impacts on the 
        surrounding community.
          (3) Elements of the program.--Using the authority granted by 
        this section and under section 629 of the Tariff Act of 1930, 
        the Commissioner of Customs, in consultation with the Canadian 
        Customs and Revenue Agency, shall seek to--
                  (A) locate Integrated Border Inspection Areas in 
                areas with bridges or tunnels with high traffic volume, 
                significant commercial activity, and that have 
                experienced backups and delays since September 11, 
                2001;
                  (B) ensure that United States Customs officers 
                stationed in any such IBIA on the Canadian side of the 
                border are vested with the maximum authority to carry 
                out their duties and enforce United States law;
                  (C) ensure that United States Customs officers 
                stationed in any such IBIA on the Canadian side of the 
                border shall possess the same immunity that they would 
                possess if they were stationed in the United States; 
                and
                  (D) encourage appropriate officials of the United 
                States to enter into an agreement with Canada 
                permitting Canadian Customs officers stationed in any 
                such IBIA on the United States side of the border to 
                enjoy such immunities as permitted in Canada.

SEC. 123. DESIGNATION OF FOREIGN LAW ENFORCEMENT OFFICERS.

  (a) Miscellaneous Provisions.--Section 401(i) of the Tariff Act of 
1930 (19 U.S.C. 1401(i)) is amended by inserting ``, including foreign 
law enforcement officers,'' after ``or other person''.
  (b) Inspections and Preclearance in Foreign Countries.--Section 629 
of the Tariff Act of 1930 (19 U.S.C. 1629) is amended--
          (1) in subsection (a), by inserting ``, or subsequent to 
        their exit from,'' after ``prior to their arrival in'';
          (2) in subsection (c)--
                  (A) by inserting ``or exportation'' after ``relating 
                to the importation''; and
                  (B) by inserting ``or exit'' after ``port of entry'';
          (3) by amending subsection (e) to read as follows:
  ``(e) Stationing of Foreign Customs and Agriculture Inspection 
Officers in the United States.--The Secretary of State, in coordination 
with the Secretary and the Secretary of Agriculture, may enter into 
agreements with any foreign country authorizing the stationing in the 
United States of customs and agriculture inspection officials of that 
country (if similar privileges are extended by that country to United 
States officials) for the purpose of insuring that persons and 
merchandise going directly to that country from the United States, or 
that have gone directly from that country to the United States, comply 
with the customs and other laws of that country governing the 
importation or exportation of merchandise. Any foreign customs or 
agriculture inspection official stationed in the United States under 
this subsection may exercise such functions, perform such duties, and 
enjoy such privileges and immunities as United States officials may be 
authorized to perform or are afforded in that foreign country by 
treaty, agreement, or law.''; and
          (4) by adding at the end the following:
  ``(g) Privileges and Immunities.--Any person designated to perform 
the duties of an officer of the Customs Service pursuant to section 
401(i) of this Act shall be entitled to the same privileges and 
immunities as an officer of the Customs Service with respect to any 
actions taken by the designated person in the performance of such 
duties.''.
  (c) Conforming Amendment.--Section 127 of the Treasury Department 
Appropriations Act, 2003, is hereby repealed.
  (d) Effective Date.--This section, and the amendments made by this 
section, take effect on the date of the enactment of this Act.

SEC. 124. CUSTOMS SERVICES.

  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:
          ``(1) In general.--
                  ``(A) Scheduled flights.--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) Charter flights.--If a charter air carrier (as 
                defined in section 40102(13) of title 49, United States 
                Code) specifically requests that customs border patrol 
                services for passengers and their baggage be provided 
                for a charter flight arriving after normal operating 
                hours at a customs border patrol serviced airport and 
                overtime funds for those services are not available, 
                the appropriate customs border patrol officer may 
                assign sufficient customs employees (if available) to 
                perform any such services, which could lawfully be 
                performed during regular hours of operation, and any 
                overtime fees incurred in connection with such service 
                shall be paid by the charter air carrier.''.

SEC. 125. SENSE OF CONGRESS ON INTERPRETATION OF TEXTILE AND APPAREL 
                    PROVISIONS.

  It is the sense of Congress that the Bureau of Customs and Border 
Protection of the Department of Homeland Security should interpret, 
implement, and enforce the provisions of section 112 of the African 
Growth and Opportunity Act (19 U.S.C. 3721), section 204 of the Andean 
Trade Preference Act (19 U.S.C. 3203), and section 213 of the Caribbean 
Basin Economic Recovery Act (19 U.S.C. 2703), relating to preferential 
treatment of textile and apparel articles, broadly in order to expand 
trade by maximizing opportunities for imports of such articles from 
eligible beneficiary countries.

SEC. 126. TECHNICAL AMENDMENTS.

  (a) Tariff Act of 1930.--Section 505(a) of the Tariff Act of 1930 is 
amended--
          (1) in the first sentence--
                  (A) by inserting ``referred to in this subsection'' 
                after ``periodic payment''; and
                  (B) by striking ``10 working days'' and inserting 
                ``12 working days''; and
          (2) in the second sentence, by striking ``a participating'' 
        and all that follows through the end of the sentence and 
        inserting the following: ``the Secretary shall promulgate 
        regulations, after testing the module, permitting a 
        participating importer of record to deposit estimated duties 
        and fees for entries of merchandise, other than merchandise 
        entered for warehouse, transportation, or under bond, no later 
        than the 15 working days following the month in which the 
        merchandise is entered or released, whichever comes first.''.
  (b) Customs User Fees.--(1) Section 13031(b)(9)(A) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
58c(b)(9)(A)) is amended by striking ``less than $2,000'' and inserting 
``$2,000 or less''.
  (2) Section 13031(b)(9)(A)(ii) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)(A)(ii)) is amended to 
read as follows:
          ``(ii) Notwithstanding subsection (e)(6) and subject to the 
        provisions of subparagraph (B), in the case of an express 
        consignment carrier facility or centralized hub facility--
                  ``(I) $.66 per individual airway bill or bill of 
                lading; and
                  ``(II) if the merchandise is formally entered, the 
                fee provided for in subsection (a)(9), if 
                applicable.''.
  (3) Section 13031(b)(9)(B) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)(B)) is amended--
          (A) by moving the margins for subparagraph (B) 4 ems to the 
        left; and
          (B) in clause (ii), by striking ``subparagraph (A)(ii)'' and 
        inserting ``subparagraph (A)(ii) (I) or (II)''.
  (4) Section 13031(f)(1)(B) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(f)(1)(B)) is amended by 
moving the subparagraph 2 ems to the left.

       TITLE II--OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

  (a) Authorization of Appropriations.--
          (1) In general.--Section 141(g)(1)(A) of the Trade Act of 
        1974 (19 U.S.C. 2171(g)(1)(A)) is amended by striking clauses 
        (i) and (ii) and inserting the following:
          ``(i) $39,552,000 for fiscal year 2005.
          ``(ii) $39,552,000 for fiscal year 2006.''.
          (2) Rule of construction.--The amendment made by paragraph 
        (1) shall not be construed to affect the availability of funds 
        appropriated pursuant to section 141(g)(1)(A) of the Trade Act 
        of 1974 before the date of the enactment of this Act.
  (b) Authorization of Appropriations for the Office of the General 
Counsel and the Office of Monitoring and Enforcement.--There are 
authorized to be appropriated to the Office of the United States Trade 
Representative for the appointment of additional staff in the Office of 
the General Counsel and the Office of Monitoring and Enforcement--
          (1) $2,000,000 for fiscal year 2005; and
          (2) $2,000,000 for fiscal year 2006.

        TITLE III--UNITED STATES INTERNATIONAL TRADE COMMISSION

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

  (a) Authorization of Appropriations.--Section 330(e)(2)(A) of the 
Tariff Act of 1930 (19 U.S.C. 1330(e)(2)(A)) is amended by striking 
clauses (i) and (ii) and inserting the following:
          ``(i) $61,700,000 for fiscal year 2005.
          ``(ii) $65,278,000 for fiscal year 2006.''.
  (b) Rule of Construction.--The amendment made by subsection (a) shall 
not be construed to affect the availability of funds appropriated 
pursuant to section 330(e)(2)(A) of the Tariff Act of 1930 before the 
date of the enactment of this Act.

                            I. INTRODUCTION


                         A. Purpose and Summary

    H.R. 4418 would authorize funding for U.S. Customs and 
Border Protection (CBP), U.S. Immigration and Customs 
Enforcement (ICE), the Office of the United States Trade 
Representative (USTR), and the United States International 
Trade Commission (ITC).

                             B. Background


                   1. AUTHORIZATION OF APPROPRIATIONS

    The Committee on Ways and Means has adopted a two-year 
authorization process to provide CBP, ICE, USTR, and the ITC 
with guidance as they plan their budgets and to provide 
Committee guidance in the appropriations process. In preparing 
H.R. 4418, the Committee considered the President's budget for 
FY 2005 and relied upon estimates of increases consistent with 
past practice as a guide for FY 2006. Funding for the former 
U.S. Customs Service, USTR, and the ITC was authorized through 
FY 2004 in the Trade Act of 2002 (P.L. 107-210).

  2. REORGANIZATION OF THE U.S. CUSTOMS SERVICE IN THE DEPARTMENT OF 
                           HOMELAND SECURITY

    On November 25, 2002, the President signed into law 
legislation (P.L. 107-296) creating a new Department of 
Homeland Security (DHS). This law transferred the U.S. Customs 
Service to the Department of Homeland Security under the 
authority of the Under Secretary for Border and Transportation 
Security. Authority for customs revenue functions is retained 
by the Secretary of the Treasury, administered by the 
Commissioner of U.S. Customs and Border Protection under the 
terms of a delegation of authority order.
    On March 1, 2003, the former U.S. Customs Service was 
divided into two new agencies within DHS. Customs inspectors, 
canine enforcement officers, and import specialists were merged 
with immigration inspectors, border patrol agents, and 
agriculture inspectors to create CBP. Customs investigators and 
personnel in the air and marine operations were merged with 
immigration investigators, Federal air marshals, and members of 
the Federal protective service to create ICE.
    The legislation transferring the U.S. Customs Service to 
DHS prohibits DHS from taking actions to ``consolidate, 
discontinue, or diminish'' customs revenue functions, ``reduce 
the staffing level, or reduce the resources attributable to 
such functions.'' In the July 12, 2002 letter from the 
Committee on Ways and Means transmitting the views and 
recommendations of the Committee on the legislation 
establishing the new Department, the Committee noted, ``It is 
also important to ensure that revenue continues to be collected 
and that goods keep moving across the border with little delay 
in order to maintain delicately balanced commercial schedules 
and operations.''

                        3. CUSTOMS MODERNIZATION

    The current customs automation system, the Automated 
Commercial System (ACS), is an aging system that has 
experienced several ``brownouts.'' In August 2001, the systems 
integration contractor began work on the Automated Commercial 
Environment (ACE), a single integrated system that will replace 
ACS. Unlike ACS, ACE will use modern standards, processes, 
techniques, and language, and will be compatible with 
commercial software.
    The first ACE participants were 41 initial importer 
accounts representing 17% of the total value of imports. CBP 
predicts that by the end of 2004, the number of ACE users will 
reach 20,000 and the number of ACE accounts will reach 1,100. 
While ACE is designed to be rolled out in eight phases over a 
period ending in September 2007, the program has faced both 
schedule and cost challenges.
    In addition, CBP is in the process of integrating the 
International Trade Data System (ITDS) with ACE. ITDS was 
chartered in 1995 to facilitate information processing for 
businesses by accommodating the many federal agencies that need 
access to international trade data. Currently, traders are 
required to provide this information to each individual agency 
using a variety of different automated systems, a multitude of 
paper forms, or a combination of systems and forms. With ITDS, 
traders will submit standard electronic data for imports or 
exports only once to ITDS. ITDS will distribute this standard 
data to the pertinent Federal agencies that have an interest in 
the transaction for their selectivity and risk assessment. ITDS 
will provide only that data necessary to an agency's mission. 
Agency participation in ITDS is voluntary, and many agencies 
have not yet chosen to participate, including the U.S. Coast 
Guard, the Transportation Security Administration, and the 
Office of Foreign Assets Control.

            4. CUSTOMS USER FEES AND COST ACCOUNTING SYSTEMS

    The Trade Act of 2002 requires the U.S. Customs Service to 
develop a cost accounting system to explain its expenditures 
effectively. Such a system would put customs operations in 
compliance with the core financial system requirements of the 
Joint Financial Management Improvement Program (JFMIP), a joint 
and cooperative undertaking of the U.S. Department of the 
Treasury, the General Accounting Office, theOffice of 
Management and Budget, and the Office of Personnel Management to 
improve financial management practices in government. Prior to the 
imposition of this requirement, the Committee noted in its report to 
accompany H.R. 3129, the Customs Border Security Act of 2001, that 
``the Customs Service is currently unable to answer fundamental 
questions about how it spends money.''
    An effective cost accounting system is important to ensure 
that fees collected under the authority of paragraphs (1) 
through (8) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 are used only for their intended purpose. Section 
413 of the legislation establishing DHS prohibits the use of 
these funds by any other agency or office of the Department. 
These fees are paid by commercial interests in return for 
specific commercial services. In the letter from the Committee 
on Ways and Means transmitting the views and recommendations of 
the Committee on the legislation establishing the new 
Department, the Committee noted, ``It would be inappropriate 
and potentially inconsistent with the United States trade 
obligation for importers to pay fees that subsidize non-
commercial functions of the new Department of Homeland 
Security. For these reasons, the Committee believes that fees 
should continue to be spent only on activities already defined 
in 19 U.S.C. 58c.''

   5. REQUIREMENTS TO POST BOND FOR IMPORTERS SUBJECT TO ANTIDUMPING 
                                 DUTIES

    Recently CBP indicated that it had been unable to collect 
over $100 million in antidumping duties owed on imports. 
Members of the Committee on Ways and Means expressed concerns 
about this inability to collect duties at the hearing, the mark 
up of the Subcommittee on Trade, and the Committee mark up.
    CBP has recently provided the Committee with detailed 
information on the reforms that CBP will undertake to ensure 
that it will be able to collect duties owed in the future. 
First, CBP will rigorously enforce the requirement to post 
single entry bonds for each entry of goods subject to 
antidumping duties. Second, CBP will enhancing monitoring by 
requiring all bonds to be filed at one central location, which 
will improve the ability of CBP to ensure that importers are 
complying with their obligations to pay. Third, CBP will amend 
its guidelines to raise the level of coverage of continuous 
bonds for importers of agriculture and aquaculture products 
subject to antidumping or countervailing duty cases so that 
exposure is minimized.
    CBP also notes that the Commerce Department is increasingly 
requiring new shippers to post bonds at the higher ``all 
others'' rate faced by most importers rather than a zero rate. 
Finally, CBP notes that approximately half of the $100 million 
shortfall is due to the bankruptcy of a single large surety--
representing an anomaly, not a systemic problem.
    The Committee believes these steps are positive and, if 
implemented as promised, should enhance protection of the 
revenue. The Committee will continue to monitor this issue 
closely and actively.

                         C. LEGISLATIVE HISTORY

    On May 20, 2004, Congressman Philip M. Crane, (R-IL), 
Chairman of the Subcommittee on Trade of the Committee on Ways 
and Means, introduced H.R. 4418, the ``Customs Border Security 
Act of 2004,'' a bill to authorize appropriations for fiscal 
years 2005 and 2006 for CBP, ICE, USTR, and the ITC, and for 
other purposes. Congressmen Rangel (D-NY), Shaw (R-FL), Levin 
(D-MI), and Ramstad (R-MN) cosponsored the legislation. On June 
17, 2004, the Subcommittee on Trade held a public hearing on 
Customs budget authorizations and other customs issues. On June 
22, 2004, Chairman Crane sent a letter to Commissioner of U.S. 
Customs and Border Protection Robert Bonner submitting 
questions for response and inclusion in the Subcommittee 
record, requesting responses by July 6, 2004. The Subcommittee 
has not received responses to these questions. On June 24, 
2004, the Subcommittee on Trade held a formal mark up session 
and ordered favorably reported to the full committee H.R. 4418, 
the ``Customs Border Security and Trade Agencies Authorization 
Act of 2004,'' as amended, by voice vote. On July 8, 2004, the 
Committee on Ways and Means held a formal mark up session on 
H.R. 4418, as amended by the Subcommittee. Chairman Thomas 
offered an amendment in the nature of a substitute, which was 
agreed to by voice vote. The Committee then ordered favorably 
reported H.R. 4418, as amended, by a roll call vote of 33 ayes 
to 0 nays.

                     II. SECTION-BY-SECTION SUMMARY


Sec. 1. Short title

            Current law
    No provision.
            Explanation of provision
    Section 1 provides that the act may be cited as the 
``Customs Border Security and Trade Agencies Authorization Act 
of 2004.''
            Reason for change
    The section identifies the short title for the bill.

    TITLE I--BUREAU OF CUSTOMS AND BORDER PROTECTION AND BUREAU OF 
                  IMMIGRATION AND CUSTOMS ENFORCEMENT


    Subtitle A--Authorization of Appropriations; Related Provisions


Sec. 101. Authorization of appropriations

            Current law
    Section 301(b)(1) of the Customs Procedural and 
Simplification Act of 1978 (19 U.S.C. 2075(b)) provides the 
statutory basis for authorization of appropriations of the 
former U.S. Customs Service. The most recent authorization of 
appropriations for the U.S. Customs Service (under section 311 
of the Trade Act of 2002) provided $1,365,456,000 for 
noncommercial operations, $1,642,602,000 for commercial 
operations, and $170,829,000 for air and marine interdiction 
for FY 2003, and $1,399,592,400 for noncommercial operations, 
$1,683,667,050 for commercial operations, and $175,099,725 for 
air and marine interdiction for FY 2004.
            Explanation of provision
    Section 101(a) would amend section 301 of the Customs 
Procedural Reform and Simplification Act of 1978 to make 
technical and conforming changes reflecting the division of the 
former U.S. Customs Service into CBP and ICE and its 
incorporation into DHS.
    Section 101(b) would amend section 301 of the Customs 
Procedural Reform and Simplification Act of 1978 to authorize 
appropriations for salaries and expenses of CBP for fiscal year 
2005 of $6,203,000,000 and for fiscal year 2006 of 
$6,469,729,000. It would require funds authorized for CBP with 
respect to customs revenue functions to be appropriated from 
the Customs User Fee Account. It would further authorize 
appropriations for salaries and expenses of ICE for fiscal year 
2005 of $4,011,000,000 and for fiscal year 2006 of 
$4,335,891,000.
            Reason for change
    The incorporation of the former U.S. Customs Service into 
DHS and the subsequent division of the former U.S. Customs 
Service into CBP and ICE necessitated changes to the underlying 
statutory framework to reflect the new structure. The Committee 
notes that the information regarding the split between 
noncommercial and commercial operations provided in the past by 
the former U.S. Customs Service was not meaningful. The 
information was not the result of the collection of cost data 
on a continual basis. Rather, the Customs Service apportioned 
its budget through this artificial division based upon an 
outdated ad hoc survey performed years ago. The survey 
estimated a certain percentage of the Customs Service's 
activities that were commercial-related. Based upon that 
conclusion, the Customs Service merely multiplied its overall 
budget by that static percentage to arrive at its estimation 
from year to year. The Committee believes that this methodology 
is woefully inadequate because actual costs for various 
functions change from year to year. For this reason, the 
Committee required the Customs Service to develop an adequate 
cost accounting system in section 334 of the Trade Act of 2002 
(P.L. 107-210). However, the Committee has received conflicting 
and inadequate information on whether the successor agencies, 
CBP and ICE, have implemented such a cost accounting system. 
Accordingly, the Committee has addressed this issue again in 
section 102 of the legislation.
    Funding authorized by this section is equal to the 
President's budget request for FY 2005 and provides an increase 
for FY 2006 that is equal to the percentage increase requested 
in FY 2005. These funding levels would provide adequate and 
appropriate resources for CBP and ICE to play their important 
security roles while still maintaining sufficient resources to 
support their critical trade facilitation functions.

Sec. 102. Establishment and implementation of cost accounting system; 
        reports.

            Current law
    Section 334 of the Trade Act of 2002 required the former 
U.S. Customs Service to establish and implement a cost 
accounting system for expenses incurred in both commercial and 
noncommercial operations of the Customs Service, including an 
identification of expenses based on the type of operation, the 
port at which the operation took place, the amount of time 
spent on the operation by personnel of the Customs Service, and 
any other appropriate classification necessary to provide for 
an accurate and complete accounting of the expenses by 
September 30, 2003.
            Explanation of provision
    Section 102 would amend the requirement in section 334 of 
the Trade Act of 2002 to require CBP and ICE to establish by 
September 30, 2005, cost accounting systems that can 
distinguish between commercial and noncommercial operations, 
and expenses incurred in administering and enforcing the 
customs laws of the United States and the federal immigration 
laws. The section would further require the accounting systems 
to identify expenses based on the type of operation and the 
amount of time spent on the operation by personnel of the 
relevant agency. The section would also require reports: (1) by 
the Commissioner of Customs and the Assistant Secretary for 
United States Immigration and Customs Enforcement on a 
quarterly basis on the progress of implementing the cost 
accounting systems and on an annual basis itemizing the 
expensesonce the accounting systems are in place; and (2) by 
the Inspector General of DHS not later than March 31, 2006, on the 
level of compliance with this section.
            Reason for change
    As discussed above, the previous methodology used by the 
Customs Service to estimate costs for commercial versus 
noncommercial operation has been unsatisfactory and inadequate. 
While current law required the Customs Service to establish and 
implement an adequate cost accounting system, the Committee is 
disappointed that it has received conflicting and inadequate 
information on whether CBP and ICE have in place a functioning 
cost accounting system that can provide the information 
required by law. Section 102 would reiterate the requirement 
originally imposed in the Trade Act of 2002, clarify that this 
requirement applies to both CBP and ICE, and require reports by 
the Inspector General to monitor compliance by these agencies 
with the requirements of this section. The Committee intends to 
monitor progress closely.

Sec. 103. Study and report relating to customs user fees

            Current law
    No provision.
            Explanation of provision
    Section 103(a) would require the Comptroller General to 
conduct a study on the extent to which the amount of the 
customs user fees approximates the cost of services provided, 
beginning 180 days after the date on which the cost accounting 
systems described in Section 102 are fully implemented.
    Section 103(b) would require the Comptroller General to 
report to the Committee on Ways and Means and the Committee on 
Finance within one year of the implementation of the cost 
accounting systems described in Section 102 on the results of 
the study required in Section 103(a) and any recommendations 
for the appropriate amount of customs user fees.
            Reason for change
    Section 336 of the Trade Act of 2002 required the 
Comptroller General to conduct a study on the extent to which 
the amount of the customs user fees approximates the cost of 
services provided. The Comptroller General released the 
required report in which he concluded that it was impossible to 
determine whether the amount of the fees approximated the costs 
of services provided because the Customs Service did not have 
an adequate cost accounting system in place to determine the 
costs of services provided. As noted above, the Committee is 
very concerned about the lack of such an accounting system. 
This section would require a follow-up report by the 
Comptroller General once the cost accounting system required by 
Section 102 is implemented.

Sec. 104. Report relating to One Face at the Border Initiative

            Current law
    No provision.
            Explanation of provision
    This section would require the Commissioner of Customs no 
later than September 30 of each of the calendar years 2005 and 
2006 to submit a report to Congress analyzing the effectiveness 
of the One Face at the Border Initiative at enhancing security 
and facilitating trade, describing the training time provided 
to each employee under the Initiative, and outlining the steps 
taken by CBP to ensure that expertise is retained with respect 
to customs, immigration, and agriculture inspection functions.
            Reason for change
    Prior to the creation of CBP, customs, immigration, and 
agriculture inspections functions were performed by separate 
personnel from the U.S. Customs Service, the Immigration and 
Naturalization Service, and the U.S. Department of Agriculture. 
CBP has created a single officer, the CBP Officer, to perform 
all of these functions. The first new CBP Officers were hired 
in late 2003, and legacy customs, immigration, and agriculture 
inspections officers are being cross-trained and converted to 
new CBP Officer positions. This provision would provide the 
Committee with information to determine whether sufficient 
training is provided in all three aspects to ensure that CBP 
Officers have the necessary expertise.

     Subtitle B--Technical amendments relating to entry and protest


Sections 111-118

            Current law
    In the past, importers paid duties on each entry as the 
entry was processed. Under the recently implemented periodic 
payment system, CBP allows participating importers to pay off 
duties on a monthly basis.
            Explanation of provision
    Sections 111 through 118 are technical amendments dealing 
with reconfigured entries. The reconfigured entry process would 
allow importers to separate individual shipments from a larger 
entry if there are disputes about the individual shipments.
            Reason for change
    Allowing individual shipments to be separated from a larger 
entry paid on a periodic basis would facilitate trade by 
allowing undisputed shipments to be processed expeditiously.

                  Subtitle C--Miscellaneous Provisions


Sec. 121. Designation of San Antonio International Airport for customs 
        processing of certain private aircraft arriving in the United 
        States

            Current law
    Section 1453(a) of the Tariff Suspension and Trade Act of 
2000 required the Commissioner of the Customs Service to 
designate the San Antonio International Airport as an airport 
in which private aircraft can land for processing by the 
Customs Service for a period of two years beginning with the 
date of enactment of that Act (November 9, 2000).
            Explanation of provision
    Section 121 would extend the designation of San Antonio 
International Airport for customs processing of private 
aircraft arriving in the United States for four years effective 
November 9, 2002.
            Reason for change
    The designation of the San Antonio International Airport 
lapsed on November 9, 2002, and this provision would extend 
that designation through November 9, 2006.

Sec. 122. Authority for the establishment of Integrated Border 
        Inspection Areas at the United States-Canada border

            Current law
    Section 127 of the Treasury Department Appropriations Act 
of 2003 (P.L. 108-7) contains this provision.
            Explanation of provision
    Section 122 would require the Commissioner of Customs to 
seek to establish Integrated Border Inspection Areas on either 
side of the United States-Canada border in which U.S. Customs 
officers can inspect vehicles entering the United States from 
Canada before they enter the United States, or Canadian Customs 
officers can inspect vehicles entering Canada from the United 
States before they enter Canada.
            Reason for change
    The inclusion of this provision in the Treasury 
Appropriations Act of 2003 was a stopgap measure to authorize 
an important security program at a time when an appropriate 
authorizing bill was not available. This section would include 
this program in the appropriate authorizing legislation.

Sec. 123. Designation of foreign law enforcement officers

            Current law
    Section 127 of the Treasury Department Appropriations Act 
of 2003 (P.L. 108-7) contains this provision.
            Explanation of provision
    Section 123 would amend Section 401(i) of the Tariff Act of 
1930 to provide for inspections and preclearance in foreign 
countries and to authorize the Secretary of State to enter into 
agreements with foreign countries for the stationing of foreign 
customs and agriculture inspection officers in the United 
States.
            Reason for change
    The inclusion of this provision in the Treasury 
Appropriations Act of 2003 was a stopgap measure to authorize 
an important security program at a time when an appropriate 
authorizing bill was not available. This section includes this 
program in the appropriate authorizing legislation.

Sec. 124. Customs services

            Current law
    No provision.
            Explanation of provision
    Section 124 amends section 13031(e)(1) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 to permit CBP to 
provide services for charter air carriers for flights arriving 
after normal operating hours upon their request and at their 
expense.
            Reason for change
    Under current law, CBP is not authorized to provide 
services for charter air carriers for flights arriving under 
normal operating hours. This provision would permit CBP at its 
discretion to provide these services if appropriate and charge 
the cost of the provision of the services to the charter air 
carriers.

Sec. 125. Sense of Congress on interpretation of textile and apparel 
        provisions

            Current law
    No provision.
            Explanation of provision
    Section 125 expresses the sense of Congress that CBP should 
interpret provisions of the African Growth and Opportunity Act 
(AGOA), the Andean Trade Preference Act (ATPA), and the 
Caribbean Basin Economic Recovery Act (CBERA) relating to 
preferential treatment of textile and apparel articles broadly 
in order to expand trade by maximizing opportunities for 
imports of such articles from eligible beneficiary countries.
            Reason for change
    The Committee has noted the frequent frustration of 
Congressional intent by CBP decisions implementing AGOA, ATPA, 
and CBERA. Congress has been forced to revisit many issues in 
the original AGOA legislation and reverse decisions by the 
Executive Branch that have denied benefits to imports that 
Congress fully intended to cover. This provision admonishes CBP 
to recognize the importance of interpreting the AGOA, ATPA, and 
CBERA laws in a trade-liberalizing manner.

Sec. 126. Technical amendments

            Current law
    Section 505(a) of the Tariff Act of 1930 requires importers 
to deposit estimated duties and fees on entries of merchandise 
within 10 working days of entry or release. Section 
13031(b)(9)(A) of the Consolidated Budget Omnibus 
Reconciliation Act of 1985 restricts the ability to collect 
fees under the section to imports valued at ``less than 
$2000.'' Section 13031(b)(9)(A)(ii) requires an express 
consignment carrier facility or centralized hub facility to 
reimburse the Customs Service for the cost of services provided 
by the Customs Service for the facility during the fiscal year.
            Explanation of provision
    Section 126(a) would amend section 505(a) of the Tariff Act 
of 1930 to increase the time period for importers to make 
periodic payments from 10 working days to 12 working days and 
would permit participating importers to deposit estimated 
duties and fees for entries of merchandise no later than 15 
working days following the month in which the merchandise is 
entered or released, whichever comes first.
    Section 126(b) would amend section 13031(b)(9)(A) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 to 
change the threshold for the merchandise processing fee from 
``less than $2,000'' to ``$2,000 or less'' and to create a user 
fee for express courier facilities.
            Reason for change
    Both importers and CBP have requested the change from 10 
working days to 12 working days as necessary for 
administrability of the periodic payment system. The change 
from ``less than $2000'' to ``$2000 or less'' is at the request 
of CBP to facilitate the administrability of the fee. The 
creation of the user fee for entries at express courier 
facilities makes the treatment of entries at those facilities 
more consistent with the treatment at other ports of entry.

       TITLE II--OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Sec. 201. Authorization of appropriations

            Current law
    The statutory authority for budget authorization for USTR 
is section 141(g)(1) of the Trade Act of 1974 (19 U.S.C. 
2171(g)(1)). The most recent authorization of appropriations 
for USTR was under section 361 of the Trade Act of 2002 (P.L. 
107-210). Under 19 U.S.C. 2171, Congress has adopted a two-year 
authorization process to provideUSTR with guidance as it plans 
its budget and to provide Committee guidance in the appropriation 
process.
            Explanation of provision
    This section would authorize appropriations for fiscal 
years 2005 and 2006 for the Office of the United States Trade 
Representative (USTR) of $39,552,000 per year. It would 
authorize an additional $2 million per year for the appointment 
of additional staff in the Office of the General Counsel and 
the Office of Monitoring and Enforcement of USTR.
            Reason for change
    The legislation would authorize the full amount of the 
President's budget request for USTR. It would further authorize 
an earmark of $2 million per year for the specific purpose of 
additional staff for the Office of General Counsel and the 
Office of Monitoring and Enforcement of USTR in light of the 
vital functions performed by these offices and their 
corresponding need for additional staff. The Committee believes 
that this earmark would provide sufficient funding for USTR to 
address a variety of needs that will best enable U.S. 
companies, farmers, and workers to benefit from the trade 
agreements to which the United States is party.

        TITLE III--UNITED STATES INTERNATIONAL TRADE COMMISSION


Sec. 301. Authorization of appropriations

            Current law
    The statutory authority for budget authorization for the 
ITC is section 330(e)(2)(A) of the Tariff Act of 1930 (19 
U.S.C. 1330(e)(2)(A)). The most recent authorization of 
appropriations for the ITC was under section 371 of the Trade 
Act of 2002 (P.L. 107-210). Under 19 U.S.C. 1330, Congress has 
adopted a two-year authorization process to provide the ITC 
with guidance as it plans its budget and to provide Committee 
guidance in the appropriation process.
            Explanation of provision
    The provision would authorize appropriations for the ITC of 
$61,700,000 for fiscal year 2005 and $65,278,000 for fiscal 
year 2006.
            Reason for change
    The legislation authorizes the full amount of the ITC's 
budget request for fiscal year 2005. The Committee notes in 
particular that the ITC provides valuable advice as to the 
probable economic effects of U.S. trade agreements and 
miscellaneous tariff legislation considered by Congress.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statements are made 
concerning the votes of the Committee on Ways and Means, in its 
consideration of the bill, H.R. 4418.

                      A. Motion To Report the Bill

    The bill, H.R. 4418, as amended, was ordered favorably 
reported by a rollcall vote of 33 yeas to 0 nays (with a quorum 
being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
        Representatives             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Thomas.....................        X   ........  .........  Mr. Rangel.......        X   ........  .........
Mr. Crane......................        X   ........  .........  Mr. Stark........  ........  ........  .........
Mr. Shaw.......................        X   ........  .........  Mr. Matsui.......  ........  ........  .........
Mrs. Johnson...................        X   ........  .........  Mr. Levin........        X   ........  .........
Mr. Houghton...................        X   ........  .........  Mr. Cardin.......        X   ........  .........
Mr. Herger.....................        X   ........  .........  Mr. McDermott....  ........  ........  .........
Mr. McCrery....................        X   ........  .........  Mr. Kleczka......  ........  ........  .........
Mr. Camp.......................        X   ........  .........  Mr. Lewis (GA)...        X   ........  .........
Mr. Ramstad....................        X   ........  .........  Mr. Neal.........        X   ........  .........
Mr. Nussle.....................        X   ........  .........  Mr. McNulty......  ........  ........  .........
Mr. Johnson....................        X   ........  .........  Mr. Jefferson....        X   ........  .........
Ms. Dunn.......................        X   ........  .........  Mr. Tanner.......        X   ........  .........
Mr. Collins....................  ........  ........  .........  Mr. Becerra......        X   ........  .........
Mr. Portman....................        X   ........  .........  Mr. Doggett......  ........  ........  .........
Mr. English....................        X   ........  .........  Mr. Pomeroy......        X   ........  .........
Mr. Hayworth...................        X   ........  .........  Mr. Sandlin......        X   ........  .........
Mr. Weller.....................        X   ........  .........  Ms. Tubbs Jones..        X   ........  .........
Mr. Hulshof....................  ........  ........  .........
Mr. McInnis....................        X   ........  .........
Mr. Lewis (KY).................        X   ........  .........
Mr. Foley......................        X   ........  .........
Mr. Brady......................        X   ........  .........
Mr. Ryan.......................        X   ........  .........
Mr. Cantor.....................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

                         B. Votes on Amendments

    A rollcall vote was conducted on the following amendment to 
the Chairman's amendment in the nature of a substitute.
    An amendment by Mr. Levin, which would have provided that 
the responsibilities of the additional USTR staff appointed in 
the Chairman's amendment in the nature of a substitute shall 
include investigating, prosecuting, and defending cases before 
the World Trade Organization and trade agreements, 
administering U.S. trade laws, and monitoring compliance with 
the Uruguay Round Agreements and other trade agreements, 
particularly by China, was defeated by a rollcall vote of 11 
yeas to 21 nays. The vote was as follows:

----------------------------------------------------------------------------------------------------------------
        Representatives             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Thomas.....................  ........        X   .........  Mr. Rangel.......        X   ........  .........
Mr. Crane......................  ........        X   .........  Mr. Stark........  ........  ........  .........
Mr. Shaw.......................  ........        X   .........  Mr. Matsui.......  ........  ........  .........
Mrs. Johnson...................  ........        X   .........  Mr. Levin........        X   ........  .........
Mr. Houghton...................  ........        X   .........  Mr. Cardin.......        X   ........  .........
Mr. Herger.....................  ........        X   .........  Mr. McDermott....  ........  ........  .........
Mr. McCrery....................  ........        X   .........  Mr. Kleczka......  ........  ........  .........
Mr. Camp.......................  ........        X   .........  Mr. Lewis (GA)...        X   ........  .........
Mr. Ramstad....................  ........        X   .........  Mr. Neal.........        X   ........  .........
Mr. Nussle.....................  ........        X   .........  Mr. McNulty......  ........  ........  .........
Mr. Johnson....................  ........        X   .........  Mr. Jefferson....        X   ........  .........
Ms. Dunn.......................  ........        X   .........  Mr. Tanner.......        X   ........  .........
Mr. Collins....................  ........  ........  .........  Mr. Becerra......        X   ........  .........
Mr. Portman....................  ........        X   .........  Mr. Doggett......  ........  ........  .........
Mr. English....................  ........        X   .........  Mr. Pomeroy......        X   ........  .........
Mr. Hayworth...................  ........        X   .........  Mr. Sandlin......        X   ........  .........
Mr. Weller.....................  ........        X   .........  Ms. Tubbs Jones..        X   ........  .........
Mr. Hulshof....................  ........  ........  .........
Mr. McInnis....................  ........        X   .........
Mr. Lewis (KY).................  ........        X   .........
Mr. Foley......................  ........        X   .........
Mr. Brady......................  ........        X   .........
Mr. Ryan.......................  ........        X   .........
Mr. Cantor.....................  ........  ........  .........
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d)(2) of rule XIII of the Rules 
of the House of Representatives, the following statement is 
made concerning the effects on the budget of this bill, H.R. 
4418 as amended and reported: The Committee agrees with the 
estimate prepared by the Congressional Budget Office (CBO), 
which is included below.

    B. Statement Regarding New Budget Authority and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that H.R. 
4418 does not include any new budget authority or tax 
expenditures.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the Congressional Budget Office, the following 
report by CBO is provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 12, 2004.
Hon. William ``Bill'' M. Thomas,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4418, the Customs 
Border Security and Trade Agencies Authorization Act of 2004.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 4418--Customs Border Security and Trade Agencies Authorization Act 
        of 2004

    Summary: H.R. 4418 would authorize appropriations for 2005 
and 2006 for the Bureau of Customs and Border Protection (CBP), 
the Bureau of Immigration and Customs Enforcement (ICE), the 
Office of the U.S. Trade Representative, and the International 
Trade Commission. The bill also would make many minor changes 
to the current laws relating to the entry of persons and goods 
into the United States.
    CBO estimates that implementing H.R. 4418 would cost about 
$21 billion over the 2005-2009 period, assuming appropriation 
of the authorized amounts. All but $200 million of this total 
would be spending for CBP and ICE. Enacting the bill would have 
a very small effect on direct spending.
    The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4418 is shown in the following table. 
The costs of this legislation fall within budget functions 150 
(international affairs), 750 (administration of justice), and 
800 (general government). For this estimate, CBO assumes that 
the amounts authorized by the bill will be appropriated by the 
start of each fiscal year. We expect that CBP and ICE would 
spend those funds somewhat more slowly than the historical 
rates for these agencies because the bill would authorize 
substantial increases in funding over the amounts appropriated 
for 2004.

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2004      2005      2006      2007      2008      2009
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Budget Authority\1\.............................     7,360         0         0         0         0         0
    Estimated Outlays...............................     6,786     1,387       698        16         0         0
Proposed Changes:
    Authorization Level.............................         0    10,317    10,912         0         0         0
    Estimated Outlays...............................         0     7,244     9,712     3,191     1,081         0
Spending Under H.R. 4418:
    Authorization Level.............................     7,360    10,317    10,912         0         0         0
    Estimated Outlays...............................     6,786     8,631    10,410     3,207     1,081         0
----------------------------------------------------------------------------------------------------------------
\1\ The 2004 level is the amount appropriated for that year for CBP, ICE, the Office of the United States Trade
  Representative, and the International Trade Commission.

    H.R. 4418 would renew the designation of San Antonio 
International Airport as a site for customs processing of 
private aircraft. That provision could have a very small effect 
on collections of customs fees.
    Intergovernmental and private-sector impact: H.R. 4418 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Spending: Mark Grabowicz; 
Impact on State, Local, and Tribal Governments: Melissa 
Merrell; and Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee, based on public hearing testimony and 
information from the Administration, conclude that it is 
appropriate and timely to consider the bill as reported.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
Administration has in place program goals and objectives, which 
have been reviewed by the Committee. H.R. 4418 addresses 
several items by way of studies and reports for the purposes of 
evaluating with CBP and ICE are meeting their goals and 
objectives.

                 C. Constitutional Authority Statement

    With respect to clause (3)(d)(1) of rule XIII of the Rules 
of the House of Representatives, relating to Constitutional 
Authority, the Committee states that the Committee's action in 
reporting the bill is derived from Article I of the 
Constitution, Section 8 (``The Congress shall have power to lay 
and collect taxes, duties, imposts, and excises, to pay the 
debts and to provide for * * * the general Welfare of the 
United States.'')

              D. Information Relating to Unfunded Mandates

    This information is provided in accordance with Section 423 
of the Unfunded Mandates Reform Act of 1995 (P.L. 104-4).
    The Committee has determined that the bill does not impose 
a Federal intergovernmental mandate on State, local, or tribal 
governments. The Committee has determined that the bill does 
not contain Federal mandates on the private sector.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

SECTION 301 OF THE CUSTOMS PROCEDURAL REFORM AND SIMPLIFICATION ACT OF 
                                  1978

  Sec. 301. (a)[(1) For the fiscal year beginning October 1, 
1979, and each fiscal year thereafter, there are authorized to 
be appropriated to the Department of the Treasury for the 
United States Customs Service only such sums as may hereafter 
be authorized by law.
  [(2) The authorization of the appropriations for the United 
States Customs Service for each fiscal year after fiscal year 
1987 shall specify--
          [(A) the amount authorized for the fiscal year for 
        the salaries and expenses of the Service in conducting 
        commercial operations; and
          [(B) the amount authorized for the fiscal year for 
        the salaries and expenses of the Service for other than 
        commercial operations.]
(1) For the fiscal year beginning October 1, 2004, and each 
fiscal year thereafter, there are authorized to be appropriated 
to the Department of Homeland Security for the Bureau of 
Customs and Border Protection and the Bureau of Immigration and 
Customs Enforcement only such sums as may hereafter be 
authorized by law.
  [(3)] (2) By not later than the date on which the President 
submits to Congress the budget of the United States Government 
for a fiscal year, the Commissioner of Customs and the 
Assistant Secretary for United States Immigration and Customs 
Enforcement, respectively, shall submit to the Committee on 
Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate the projected amount of 
funds for the succeeding fiscal year that will be necessary for 
the operations of the [Customs Service] Bureau of Customs and 
Border Protection and the Bureau of Immigration and Customs 
Enforcement as provided for in subsection (b).
  [(b) Authorization of Appropriations.--
          [(1) For noncommercial operations.--There are 
        authorized to be appropriated for the salaries and 
        expenses of the Customs Service that are incurred in 
        noncommercial operations not to exceed the following:
                  [(A) $1,365,456,000 for fiscal year 2003.
                  [(B) $1,399,592,400 for fiscal year 2004.
          [(2) For commercial operations.--(A) There are 
        authorized to be appropriated for the salaries and 
        expenses of the Customs Service that are incurred in 
        commercial operations not less than the following:
                  [(i) $1,642,602,000 for fiscal year 2003.
                  [(ii) $1,683,667,050 for fiscal year 2004.
          [(B) The monies authorized to be appropriated under 
        subparagraph (A) for any fiscal year, except for such 
        sums as may be necessary for the salaries and expenses 
        of the Customs Service that are incurred in connection 
        with the processing of merchandise that is exempt from 
        the fees imposed under section 13031(a) (9) and (10) of 
        the Consolidated Omnibus Budget Reconciliation Act of 
        1985, shall be appropriated from the Customs User Fee 
        Account.
          [(3) For air interdiction.--There are authorized to 
        be appropriated for the operation (including salaries 
        and expenses) and maintenance of the air interdiction 
        program of the Customs Service not to exceed the 
        following:
                  [(A) $170,829,000 for fiscal year 2003.
                  [(B) $175,099,725 for fiscal year 2004.]
  (b) Authorization of Appropriations.--
          (1) Bureau of customs and border protection.--
                  (A) There are authorized to be appropriated 
                for the salaries and expenses of the Bureau of 
                Customs and Border Protection not to exceed the 
                following:
                          (i) $6,203,000,000 for fiscal year 
                        2005.
                          (ii) $6,469,729,000 for fiscal year 
                        2006.
                  (B)(i) The monies authorized to be 
                appropriated under subparagraph (A) with 
                respect to customs revenue functions for any 
                fiscal year, except for such sums as may be 
                necessary for the salaries and expenses of the 
                Bureau of Customs and Border Protection that 
                are incurred in connection with the processing 
                of merchandise that is exempt from the fees 
                imposed under paragraphs (9) and (10) of 
                section 13031(a) of the Consolidated Omnibus 
                Budget Reconciliation Act of 1985 (19 U.S.C. 
                58c(a)), shall be appropriated from the Customs 
                User Fee Account.
                  (ii) In clause (i), the term ``customs 
                revenue function'' means the following:
                          (I) Assessing and collecting customs 
                        duties (including antidumping and 
                        countervailing duties and duties 
                        imposed under safeguard provisions), 
                        excise taxes, fees, and penalties due 
                        on imported merchandise, including 
                        classifying and valuing merchandise for 
                        the purposes of such assessment.
                          (II) Processing and denial of entry 
                        of persons, baggage, cargo, and mail, 
                        with respect to the assessment and 
                        collection of import duties.
                          (III) Detecting and apprehending 
                        persons engaged in fraudulent practices 
                        designed to circumvent the customs laws 
                        of the United States.
                          (IV) Enforcing section 337 of the 
                        Tariff Act of 1930 and provisions 
                        relating to import quotas and the 
                        marking of imported merchandise, and 
                        providing Customs Recordations for 
                        copyrights, patents, and trademarks.
                          (V) Collecting accurate import data 
                        for compilation of international trade 
                        statistics.
                          (VI) Enforcing reciprocal trade 
                        agreements.
                          (VII) Functions performed by the 
                        following personnel, and associated 
                        support staff, of the United States 
                        Customs Service prior to the 
                        establishment of the Bureau of Customs 
                        and Border Protection: Import 
                        Specialists, Entry Specialists, 
                        Drawback Specialists, National Import 
                        Specialists, Fines and Penalties 
                        Specialists, attorneys of the Office of 
                        Regulations and Rulings, Customs 
                        Auditors, International Trade 
                        Specialists, and Financial System 
                        Specialists.
                          (VIII) Functions performed by the 
                        following offices, with respect to any 
                        function described in any of subclauses 
                        (I) through (VII), and associated 
                        support staff, of the United States 
                        Customs Service prior to the 
                        establishment of the Bureau of Customs 
                        and Border Protection: the Office of 
                        Information and Technology, the Office 
                        of Laboratory Services, the Office of 
                        the Chief Counsel, the Office of 
                        Congressional Affairs, the Office of 
                        International Affairs, and the Office 
                        of Training and Development.
          (2) Bureau of immigration and customs enforcement.--
        There are authorized to be appropriated for the 
        salaries and expenses of the Bureau of Immigration and 
        Customs Enforcement not to exceed the following:
                  (A) $4,011,000,000 for fiscal year 2005.
                  (B) $4,335,891,000 for fiscal year 2006.

           *       *       *       *       *       *       *

                              ----------                              


       SECTION 334 OF THE CUSTOMS AND BORDER SECURITY ACT OF 2002

[SEC. 334. ESTABLISHMENT AND IMPLEMENTATION OF COST ACCOUNTING SYSTEM; 
                    REPORTS.

  [(a) Establishment and Implementation.--
          [(1) In general.--Not later than September 30, 2003, 
        the Commissioner of Customs shall, in accordance with 
        the audit of the Customs Service's fiscal years 2000 
        and 1999 financial statements (as contained in the 
        report of the Office of the Inspector General of the 
        Department of the Treasury issued on February 23, 
        2001), establish and implement a cost accounting system 
        for expenses incurred in both commercial and 
        noncommercial operations of the Customs Service.
          [(2) Additional requirement.--The cost accounting 
        system described in paragraph (1) shall provide for an 
        identification of expenses based on the type of 
        operation, the port at which the operation took place, 
        the amount of time spent on the operation by personnel 
        of the Customs Service, and an identification of 
        expenses based on any other appropriate classification 
        necessary to provide for an accurate and complete 
        accounting of the expenses.
  [(b) Reports.--Beginning on the date of the enactment of this 
Act and ending on the date on which the cost accounting system 
described in subsection (a) is fully implemented, the 
Commissioner of Customs shall prepare and submit to Congress on 
a quarterly basis a report on the progress of implementing the 
cost accounting system pursuant to subsection (a).]

SEC. 334. ESTABLISHMENT AND IMPLEMENTATION OF COST ACCOUNTING SYSTEM; 
                    REPORTS.

  (a) Establishment and Implementation; Customs and Border 
Protection.--
          (1) In general.--Not later than September 30, 2005, 
        the Commissioner of Customs shall, in accordance with 
        the audit of the Customs Service's fiscal years 2000 
        and 1999 financial statements (as contained in the 
        report of the Office of Inspector General of the 
        Department of the Treasury issued on February 23, 
        2001), establish and implement a cost accounting 
        system--
                  (A) for expenses incurred in both commercial 
                and noncommercial operations of the Bureau of 
                Customs and Border Protection of the Department 
                of Homeland Security, which system should 
                specifically identify and distinguish expenses 
                incurred in commercial operations and expenses 
                incurred in noncommercial operations; and
                  (B) for expenses incurred both in 
                administering and enforcing the customs laws of 
                the United States and the Federal immigration 
                laws, which system should specifically identify 
                and distinguish expenses incurred in 
                administering and enforcing the customs laws of 
                the United States and the expenses incurred in 
                administering and enforcing the Federal 
                immigration laws.
          (2) Additional requirement.--The cost accounting 
        system described in paragraph (1) shall provide for an 
        identification of expenses based on the type of 
        operation, the port at which the operation took place, 
        the amount of time spent on the operation by personnel 
        of the Bureau of Customs and Border Protection, and an 
        identification of expenses based on any other 
        appropriate classification necessary to provide for an 
        accurate and complete accounting of expenses.
  (b) Establishment and Implementation; Immigration and Customs 
Enforcement.--
          (1) In general.--Not later than September 30, 2005, 
        the Assistant Secretary for United States Immigration 
        and Customs Enforcement shall, in accordance with the 
        audit of the Customs Service's fiscal years 2000 and 
        1999 financial statements (as contained in the report 
        of the Office of Inspector General of the Department of 
        the Treasury issued on February 23, 2001), establish 
        and implement a cost accounting system--
                  (A) for expenses incurred in both commercial 
                and noncommercial operations of the Bureau of 
                Immigration and Customs Enforcement of the 
                Department of Homeland Security, which system 
                should specifically identify and distinguish 
                expenses incurred in commercial operations and 
                expenses incurred in noncommercial operations;
                  (B) for expenses incurred both in 
                administering and enforcing the customs laws of 
                the United States and the Federal immigration 
                laws, which system should specifically identify 
                and distinguish expenses incurred in 
                administering and enforcing the customs laws of 
                the United States and the expenses incurred in 
                administering and enforcing the Federal 
                immigration laws.
          (2) Additional requirement.--The cost accounting 
        system described in paragraph (1) shall provide for an 
        identification of expenses based on the type of 
        operation, the amount of time spent on the operation by 
        personnel of the Bureau of Immigration and Customs 
        Enforcement, and an identification of expenses based on 
        any other appropriate classification necessary to 
        provide for an accurate and complete accounting of 
        expenses.
  (c) Reports.--
          (1) Development of the cost accounting systems.--
        Beginning on the date of the enactment of the Customs 
        Border Security and Trade Agencies Authorization Act of 
        2004 and ending on the date on which the cost 
        accounting systems described in subsections (a) and (b) 
        are fully implemented, the Commissioner of Customs and 
        the Assistant Secretary for United States Immigration 
        and Customs Enforcement, respectively, shall prepare 
        and submit to Congress on a quarterly basis a report on 
        the progress of implementing the cost accounting 
        systems pursuant to subsections (a) and (b).
          (2) Annual reports.--Beginning one year after the 
        date on which the cost accounting systems described in 
        subsections (a) and (b) are fully implemented, the 
        Commissioner of Customs and the Assistant Secretary for 
        United States Immigration and Customs Enforcement, 
        respectively, shall prepare and submit to Congress on 
        an annual basis a report itemizing the expenses 
        identified in subsections (a) and (b).
          (3) Office of the inspector general.--Not later than 
        March 31, 2006, the Inspector General of the Department 
        of Homeland Security shall prepare and submit to 
        Congress a report analyzing the level of compliance 
        with this section and detailing any additional steps 
        that should be taken to improve compliance with this 
        section.
                              ----------                              


TARIFF ACT OF 1930

           *       *       *       *       *       *       *


TITLE III--SPECIAL PROVISIONS

           *       *       *       *       *       *       *


                Part II--United States Tariff Commission

SEC. 330. ORGANIZATION OF THE COMMISSION.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Authorization of Appropriations.--(1) * * *
  (2)(A) There are authorized to be appropriated to the 
Commission for necessary expenses (including the rental of 
conference rooms in the District of Columbia and elsewhere) not 
to exceed the following:
          [(i) $54,000,000 for fiscal year 2003.
          [(ii) $57,240,000 for fiscal year 2004.]
          (i) $61,700,000 for fiscal year 2005.
          (ii) $65,278,000 for fiscal year 2006.

           *       *       *       *       *       *       *


                  TITLE IV--ADMINISTRATIVE PROVISIONS

      PART I--DEFINITIONS AND NATIONAL CUSTOMS AUTOMATION PROGRAM

                         Subpart A--Definitions

SEC. 401. MISCELLANEOUS.

  When used in this title or in Part I of Title III--
  (a) * * *

           *       *       *       *       *       *       *

  (i) Officer of the Customs: Customs Officer.--The terms 
``officer of the customs'' and ``customs officer'' mean any 
officer of the Bureau of Customs of the Treasury Department 
(also hereinafter referred to as the ``Customs Service'') or 
any commissioned, warrant, or petty officer of the Coast Guard, 
or any agent or other person, including foreign law enforcement 
officers, authorized by law or designated by the Secretary of 
the Treasury to perform any duties of an officer of the Customs 
Service.

           *       *       *       *       *       *       *

  (t) Reconfigured Entry.--The term ``reconfigured entry'' 
means an entry filed on an import activity summary statement 
which substitutes for all or part of 1 or more entries filed 
under section 484(a)(1)(A) or filed on a reconciliation entry 
that aggregates the entry elements to be reconciled under 
section 484(b) for purposes of liquidation, reliquidation, or 
protest.

           *       *       *       *       *       *       *


Part III--Ascertainment, Collection, and Recovery of Duties

           *       *       *       *       *       *       *


SEC. 484. ENTRY OF MERCHANDISE.

  (a) Requirement and Time.--
          (1) Except as provided in sections 490, 498, 552, and 
        553, one of the parties qualifying as ``importer of 
        record'' under paragraph (2)(B), either in person or by 
        an agent authorized by the party in writing, shall, 
        using reasonable care--
                  (A) * * *
                  (B) complete the entry, or substitute 1 or 
                more reconfigured entries on an import activity 
                summary statement, by filing with the Customs 
                Service the declared value, classification and 
                rate of duty applicable to the merchandise, and 
                such other documentation or, pursuant to an 
                electronic data interchange system, such other 
                information as is necessary to enable the 
                Customs Service to--
                          (i) * * *

           *       *       *       *       *       *       *

          (2)(A) The documentation or information required 
        under paragraph (1) with respect to any imported 
        merchandise shall be filed or transmitted in such 
        manner and within such time periods as the Secretary 
        shall by regulation prescribe. Such regulations shall 
        provide for the filing of import activity summary 
        statements, and permit the filing of reconfigured 
        entries, covering entries or warehouse withdrawals made 
        during a calendar month, within such time period as is 
        prescribed in regulations but not to exceed the 20th 
        day following such calendar month. Entries filed under 
        paragraph (1)(A) shall not be liquidated if covered by 
        an import activity summary statement, but instead each 
        reconfigured entry in the import activity summary 
        statement shall be subject to liquidation or 
        reliquidation pursuant to section 500, 501, or 504.

           *       *       *       *       *       *       *

  (b) Reconciliation.--
          (1) In general.--A party may elect to file a 
        reconciliation with regard to such entry elements as 
        are identified by the party pursuant to regulations 
        prescribed by the Secretary. If the party so elects, 
        the party shall declare that a reconciliation will be 
        filed. The declaration shall be made in such manner as 
        the Secretary shall prescribe and at the time the 
        documentation or information required by subsection 
        (a)(1)(B) or the import activity summary statement is 
        filed with, or transmitted to, the Customs Service, or 
        at such later time as the Customs Service may, in its 
        discretion, permit. The reconciliation shall be filed 
        by the importer of record at such time and in such 
        manner as the Secretary prescribes but not later than 
        [15 months] 21 months after the date the importer 
        declares his intent to file the reconciliation. In the 
        case of reconciling issues relating to the assessment 
        of antidumping and countervailing duties, the 
        reconciliation shall be filed not later than 90 days 
        after the date the Customs Service advises the importer 
        that the period of review for antidumping or 
        countervailing duty purposes has been completed. Before 
        filing a reconciliation, an importer of record shall 
        post bond or other security pursuant to such 
        regulations as the Secretary may prescribe.

           *       *       *       *       *       *       *


SEC. 501. VOLUNTARY RELIQUIDATIONS BY THE CUSTOMS SERVICE.

  A liquidation made in accordance with section 500 or 504 or 
any reliquidation thereof made in accordance with this section 
may be reliquidated in any respect by the Customs Service, 
notwithstanding the filing of a protest, within ninety days 
from the date on which notice of the original liquidation is 
given or transmitted to the importer, his consignee or agent. 
Notice of such reliquidation shall be given or transmitted in 
the manner prescribed with respect to original liquidations 
under section 500(e).

           *       *       *       *       *       *       *


SEC. 504. LIMITATION ON LIQUIDATION.

  (a) Liquidation.--Unless an entry is extended under 
subsection (b) or suspended as required by statute or court 
order, except as provided in section 751(a)(3), an entry of 
merchandise not liquidated within one year from:
          (1) * * *

           *       *       *       *       *       *       *

          (3) the date of withdrawal from warehouse of such 
        merchandise for consumption where, pursuant to 
        regulations issued under section 505(a) of this Act, 
        duties may be deposited after the filing of an entry or 
        withdrawal from warehouse; [or]
          (4) if a reconciliation is filed, or should have been 
        filed, the date of the filing under section 484 or the 
        date the reconciliation should have been [filed;] 
        filed, whichever is earlier; or
          (5) if a reconfigured entry is filed under an import 
        activity summary statement, the date the import 
        activity summary statement is filed or should have been 
        filed, whichever is earlier;
shall be deemed liquidated at the rate of duty, value, 
quantity, and amount of duties asserted [at the time of entry] 
by the importer of record. Notwithstanding section 500(e) of 
this Act, notice of liquidation need not be given of an entry 
deemed liquidated.
  (b) Extension.--The Secretary may extend the period in which 
to liquidate an entry if--
          (1) * * *

           *       *       *       *       *       *       *

The Secretary shall give notice of an extension under this 
subsection to the importer of record and the surety of such 
importer of record. Notice shall be in such form and manner 
(which may include electronic transmittal) as the Secretary 
shall by regulation prescribe. Any entry the liquidation of 
which is extended under this subsection shall be treated as 
having been liquidated at the rate of duty, value, quantity, 
and amount of duty asserted [at the time of entry] by the 
importer of record at the expiration of 4 years from the 
applicable date specified in subsection (a).

           *       *       *       *       *       *       *

  (d) Removal of Suspension.--Except as provided in section 
751(a)(3), when a suspension required by statute or court order 
is removed, the Customs Service shall liquidate the entry, 
unless liquidation is extended under subsection (b), within 6 
months after receiving notice of the removal from the 
Department of Commerce, other agency, or a court with 
jurisdiction over the entry. Any entry (other than an entry 
with respect to which liquidation has been extended under 
subsection (b)) not liquidated by the Customs Service within 6 
months after receiving such notice shall be treated as having 
been liquidated at the rate of duty, value, quantity, and 
amount of duty asserted [at the time of entry] by the importer 
of record.

SEC. 505. PAYMENT OF DUTIES AND FEES.

  (a) Deposit of Estimated Duties and Fees.--Unless the entry 
is subject to a periodic payment referred to in this subsection 
or the merchandise is entered for warehouse or transportation, 
or under bond, the importer of record shall deposit with the 
Customs Service at the time of entry, or at such later time as 
the Secretary may prescribe by regulation (but not later than 
[10 working days] 12 working days after entry or release) the 
amount of duties and fees estimated to be payable on such 
merchandise. As soon as a periodic payment module of the 
Automated Commercial Environment is developed, but no later 
than October 1, 2004, [a participating importer of record, or 
the importer's filer, may deposit estimated duties and fees for 
entries of merchandise no later than the 15th day of the month 
following the month in which the merchandise is entered or 
released, whichever comes first.] the Secretary shall 
promulgate regulations, after testing the module, permitting a 
participating importer of record to deposit estimated duties 
and fees for entries of merchandise, other than merchandise 
entered for warehouse, transportation, or under bond, no later 
than the 15 working days following the month in which the 
merchandise is entered or released, whichever comes first.

           *       *       *       *       *       *       *


SEC. 514. PROTEST AGAINST DECISIONS OF THE CUSTOMS SERVICE.

  (a) Finality of Decisions.--Except as provided in subsection 
(b) of this section, section 501 (relating to voluntary 
reliquidations), section 516 (relating to petitions by domestic 
interested parties), and section 520 [(relating to refunds and 
errors) of this Act] (relating to refunds), any clerical error, 
mistake of fact, or other inadvertence, whether or not 
resulting from or contained in an electronic transmission, 
adverse to the importer, in any entry, liquidation, or 
reliquidation, and, decisions of the Customs Service, including 
the legality of all orders and findings entering into the same, 
as to--
          (1) * * *

           *       *       *       *       *       *       *

          (5) the liquidation or reliquidation of an entry, or 
        reconciliation as to the issues contained therein, or 
        any modification thereof, including the liquidation of 
        an entry, pursuant to either section 500 or section 
        504;

           *       *       *       *       *       *       *

          (7) the refusal to reliquidate an entry under 
        subsection [(c) or] (d) of section 520 of this act;

           *       *       *       *       *       *       *

  (c) Protests.--
          (1) In general.--A protest of a decision made under 
        subsection (a) shall be filed in writing, or 
        transmitted electronically pursuant to an electronic 
        data interchange system, in accordance with regulations 
        prescribed by the Secretary. A protest must set forth 
        distinctly and specifically--
                  (A) * * *

           *       *       *       *       *       *       *

        Only one protest may be filed for each entry of 
        merchandise, except that where the entry covers 
        merchandise of different categories, a separate protest 
        may be filed for each category. In addition, separate 
        protests may be filed for each category. In addition, 
        separate protests filed by different authorized persons 
        with respect to any one category of merchandise, or 
        with respect to a determination of origin under section 
        202 of the North American Free Trade Agreement 
        Implementation Act, that is the subject of a protest 
        are deemed to be part of a single protest. [A protest 
        may be amended,] Unless a request for accelerated 
        disposition is filed under section 515(b), a protest 
        may be amended, under regulations prescribed by the 
        Secretary, to set forth objections as to a decision or 
        decisions described in subsection (a) which were not 
        the subject of the original protest, in the form and 
        manner prescribed for a protest, any time prior to the 
        expiration of the time in which such protest could have 
        been filed under this section. New grounds in support 
        of objections raised by a valid protest or amendment 
        thereto may be presented for consideration in 
        connection with the review of such protest pursuant to 
        section 515 of this Act at any time prior to the 
        disposition of the protest in accordance with that 
        section.

           *       *       *       *       *       *       *

          (3) Time for filing.--A protest of a decision, order, 
        or finding described in subsection (a) shall be filed 
        with the Customs Service within [ninety days] 180 days 
        after but not before--
                  (A) [notice of] date of liquidation or 
                reliquidation, or
                  (B) in circumstances where subparagraph (A) 
                is inapplicable, the date of the decision as to 
                which protest is made.
        A protest by a surety which has an unsatisfied legal 
        claim under its bond may be filed within [90 days] 180 
        days from the date of mailing of notice of demand for 
        payment against its bond. If another party has not 
        filed a timely protest, the surety's protest shall 
        certify that it is not being filed collusively to 
        extend another authorized person's time to protest as 
        specified in this subsection.

           *       *       *       *       *       *       *

  Sec. 515. Review of Protests.--
  (a) * * *
  (b) Request for Accelerated Disposition of Protest.--A 
request for accelerated disposition of a protest filed in 
accordance with section 514 of this Act may be mailed by 
certified or registered mail to the appropriate customs officer 
any time [after ninety days] concurrent with or following the 
filing of such protest. For purposes of section 1581 of title 
28 of the United States Code, a protest which has not been 
allowed or denied in whole or in part within thirty days 
following the date of mailing by certified or registered mail 
of a request for accelerated disposition shall be deemed denied 
on the thirtieth day following mailing of such request.

           *       *       *       *       *       *       *


SEC. 520. REFUNDS AND ERRORS.

  (a) * * *

           *       *       *       *       *       *       *

  [(c) Notwithstanding a valid protest was not filed, the 
Customs Service may, in accordance with regulations prescribed 
by the Secretary, reliquidate an entry or reconciliation to 
correct--
          [(1) a clerical error, mistake of fact, or other 
        inadvertence, whether or not resulting from or 
        contained in electronic transmission, not amounting to 
        an error in the construction of a law, adverse to the 
        importer and manifest from the record or established by 
        documentary evidence, in any entry, liquidation, or 
        other customs transaction, when the error, mistake, or 
        inadvertence is brought to the attention of the Customs 
        Service within one year after the date of liquidation 
        or exaction; or
          [(2) any assessment of duty on household or personal 
        effects in respect of which an application for refund 
        has been filed, with such employee as the Secretary of 
        the Treasury shall designate, within one year after the 
        date of entry.]

           *       *       *       *       *       *       *


SEC. 629. INSPECTIONS AND PRECLEARANCE IN FOREIGN COUNTRIES.

  (a) In General.--When authorized by treaty or executive 
agreement, the Secretary may station customs officers in 
foreign countries for the purpose of examining persons and 
merchandise prior to their arrival in, or subsequent to their 
exit from, the United States.

           *       *       *       *       *       *       *

  (c) Compliance.--The Secretary may by regulation require 
compliance with the customs laws of the United States in a 
foreign country and, in such a case the customs laws and other 
civil and criminal laws of the United States relating to the 
importation or exportation of merchandise, filing of false 
statements, and the unlawful removal of merchandise from 
customs custody shall apply in the same manner as if the 
foreign station is a port of entry or exit within the customs 
territory of the United States.

           *       *       *       *       *       *       *

  [(e) Stationing of Foreign Customs Officers in the United 
States.--The Secretary of State, in coordination with the 
Secretary, may enter into agreements with any foreign country 
authorizing the stationing in the United States of customs 
officials of that country (if similar privileges are extended 
by that country to United States officials) for the purpose of 
insuring that persons and merchandise going directly to that 
country from the United States comply with the customs and 
other laws of that country governing the importation of 
merchandise. Any foreign customs official stationed in the 
United States under this subsection may exercise such functions 
and perform such duties as United States officials may be 
authorized to perform in that foreign country under reciprocal 
agreement.]
  (e) Stationing of Foreign Customs and Agriculture Inspection 
Officers in the United States.--The Secretary of State, in 
coordination with the Secretary and the Secretary of 
Agriculture, may enter into agreements with any foreign country 
authorizing the stationing in the United States of customs and 
agriculture inspection officials of that country (if similar 
privileges are extended by that country to United States 
officials) for the purpose of insuring that persons and 
merchandise going directly to that country from the United 
States, or that have gone directly from that countryto the 
United States, comply with the customs and other laws of that country 
governing the importation or exportation of merchandise. Any foreign 
customs or agriculture inspection official stationed in the United 
States under this subsection may exercise such functions, perform such 
duties, and enjoy such privileges and immunities as United States 
officials may be authorized to perform or are afforded in that foreign 
country by treaty, agreement, or law.

           *       *       *       *       *       *       *

  (g) Privileges and Immunities.--Any person designated to 
perform the duties of an officer of the Customs Service 
pursuant to section 401(i) of this Act shall be entitled to the 
same privileges and immunities as an officer of the Customs 
Service with respect to any actions taken by the designated 
person in the performance of such duties.

           *       *       *       *       *       *       *

                              ----------                              


      SECTION 1453 OF THE TARIFF SUSPENSION AND TRADE ACT OF 2000

SEC. 1453. DESIGNATION OF SAN ANTONIO INTERNATIONAL AIRPORT FOR CUSTOMS 
                    PROCESSING OF CERTAIN PRIVATE AIRCRAFT ARRIVING IN 
                    THE UNITED STATES.

  (a) Designation.--For the [2-year period] 6-year period 
beginning on the date of the enactment of this Act, the 
Commissioner of the Customs Service shall designate the San 
Antonio International Airport in San Antonio, Texas, as an 
airport at which private aircraft described in subsection (b) 
may land for processing by the Customs Service in accordance 
with section 122.24(b) of title 19, Code of Federal 
Regulations.

           *       *       *       *       *       *       *

                              ----------                              


    SECTION 127 OF THE TREASURY DEPARTMENT APPROPRIATIONS ACT, 2003

  [Sec. 127. Authority for the Creation of Integrated Border 
Inspection Areas and Designation of Foreign Law Enforcement 
Officers. (a) Creation of Integrated Border Inspection Areas.--
          [(1) The Commissioner of Customs, in consultation 
        with the Canadian Customs and Revenue Agency (CCRA), 
        shall seek to establish Integrated Border Inspection 
        Areas (IBIAs), i.e., areas on either side of the United 
        States-Canada border in which the United States Customs 
        officers can inspect vehicles entering the United 
        States from Canada before they enter the United States, 
        or Canadian officers can inspect vehicles entering 
        Canada from the United States before they enter Canada. 
        This may include, where appropriate, employment of 
        reverse inspection techniques.
          [(2) The Commissioner of Customs, in consultation 
        with the Administrator of the General Services 
        Administration when appropriate, shall endeavor to 
        carry out the IBIA program in a manner that minimizes 
        adverse impacts on the surrounding community.
  [(b) Section 1401(i) of title 19, United States Code, is 
amended by inserting ``, including foreign law enforcement 
officers,'' after ``or other person''.
  [(c) Section 1629 of title 19, United States Code, is 
amended--
          [(1) in paragraph (a) by inserting ``, or subsequent 
        to their exit from,'' after ``prior to their arrival 
        in'';
          [(2) in paragraph (c) by inserting ``or exportation'' 
        after ``relating to the importation'' and by inserting 
        ``or exit'' after ``port of entry'';
          [(3) in paragraph (e), by--
                  [(A) inserting ``and agriculture inspection'' 
                after ``customs'' in each instance where 
                reference is currently made to ``customs 
                officers'' or ``customs officials'' in this 
                subsection;
                  [(B) inserting ``and the Secretary of 
                Agriculture'' after ``in coordination with the 
                Secretary'';
                  [(C) inserting ``or that have gone directly 
                from that country to the United States'' after 
                ``to that country from the United States'';
                  [(D) inserting ``or exportation'' after 
                ``governing the importation'';
                  [(E) deleting ``and'' and inserting a comma 
                (``,'') after ``such functions'';
                  [(F) inserting ``, and enjoy such privileges 
                and immunities'' after ``such duties'';
                  [(G) inserting ``or are afforded'' after 
                ``authorized to perform''; and
                  [(H) deleting ``under reciprocal agreement'' 
                and inserting ``by treaty, agreement or law''.
          [(4) by adding at the end the following:
  [``(g) Persons designated to perform the duties of an officer 
of the Customs Service pursuant to section 1401(i) of this 
title shall be entitled to the same privileges and immunities 
as an officer of the Customs Service with respect to any 
actions taken by the designated person in the performance of 
such duties.''.]

           *       *       *       *       *       *       *

                              ----------                              


SECTION 13031 OF THE CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT OF 
                                  1985

SEC. 13031. FEES FOR CERTAIN CUSTOMS SERVICES.

  (a) * * *
  (b) Limitations on Fees.--(1) * * *

           *       *       *       *       *       *       *

  (9)(A) With respect to the processing of letters, documents, 
records, shipments, merchandise, or any other item that is 
valued at an amount that is [less than $2,000] $2,000 or less 
(or such higher amount as the Secretary of the Treasury may set 
by regulation pursuant to section 498 of the Tariff Act of 
1930), except such items entered for transportation and 
exportation or immediate exportation at a centralized hub 
facility, an express consignment carrier facility, or a small 
airport or other facility, the following reimbursements and 
payments are required:
          (i) * * *
                          [(ii) Subject to the provisions of 
                        subparagraph (B), in the case of an 
                        express consignment carrier facility or 
                        centralized hub facility, $.66 per 
                        individual airway bill or bill of 
                        lading.]
                          (ii) Notwithstanding subsection 
                        (e)(6) and subject to the provisions of 
                        subparagraph (B), in the case of an 
                        express consignment carrier facility or 
                        centralized hub facility--
                                  (I) $.66 per individual 
                                airway bill or bill of lading; 
                                and
                                  (II) if the merchandise is 
                                formally entered, the fee 
                                provided for in subsection 
                                (a)(9), if applicable.
  (B)(i) Beginning in fiscal year 2004, the Secretary of the 
Treasury may adjust (not more than once per fiscal year) the 
amount described in subparagraph (A)(ii) to an amount that is 
not less than $.35 and not more than $1.00 per individual 
airway bill or bill of lading. The Secretary shall provide 
notice in the Federal Register of a proposed adjustment under 
the preceding sentence and the reasons therefor and shall allow 
for public comment on the proposed adjustment.
  (ii) Notwithstanding section 451 of the Tariff Act of 1930, 
the payment required by [subparagraph (A)(ii)] subparagraph 
(A)(ii) (I) or (II) shall be the only payment required for 
reimbursement of the Customs Service in connection with the 
processing of an individual airway bill or bill of lading in 
accordance with such subparagraph and for providing services at 
express consignment carrier facilities or centralized hub 
facilities, except that the Customs Service may require such 
facilities to cover expenses of the Customs Service for 
adequate office space, equipment, furnishings, supplies, and 
security.
  (iii)(I) The payment required by subparagraph (A)(ii) and 
clause (ii) of this subparagraph shall be paid on a quarterly 
basis by the carrier using the facility to the Customs Service 
in accordance with regulations prescribed by the Secretary of 
the Treasury.
  (II) 50 percent of the amount of payments received under 
subparagraph (A)(ii) and clause (ii) of this subparagraph 
shall, in accordance with section 524 of the Tariff Act of 
1930, be deposited in the Customs User Fee Account and shall be 
used to directly reimburse each appropriation for the amount 
paid out of that appropriation for the costs incurred in 
providing services to express consignment carrier facilities or 
centralized hub facilities. Amounts deposited in accordance 
with the preceding sentence shall be available until expended 
for the provision of customs services to express consignment 
carrier facilities or centralized hub facilities.
  (III) Notwithstanding section 524 of the Tariff Act of 1930, 
the remaining 50 percent of the amount of payments received 
under subparagraph (A)(ii) and clause (ii) of this subparagraph 
shall bepaid to the Secretary of the Treasury, which is in lieu 
of the payment of fees under subsection (a)(10) of this section.

           *       *       *       *       *       *       *

  (e) Provision of Customs Services.--
  [(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)),]
          (1) In general.--
                  (A) Scheduled flights.--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)), the customs services required to be 
                provided to passengers upon arrival in the 
                United States shall be adequately provided in 
                connection with scheduled airline flights at 
                customs serviced airports when needed and at no 
                cost (other than the fees imposed under 
                subsection (a)) to airlines and airline 
                passengers.
                  (B) Charter flights.--If a charter air 
                carrier (as defined in section 40102(13) of 
                title 49, United States Code) specifically 
                requests that customs border patrol services 
                for passengers and their baggage be provided 
                for a charter flight arriving after normal 
                operating hours at a customs border patrol 
                serviced airport and overtime funds for those 
                services are not available, the appropriate 
                customs border patrol officer may assign 
                sufficient customs employees (if available) to 
                perform any such services, which could lawfully 
                be performed during regular hours of operation, 
                and any overtime fees incurred in connection 
                with such service shall be paid by the charter 
                air carrier.

           *       *       *       *       *       *       *

  (f) Disposition of Fees.--(1) There is established in the 
general fund of the Treasury a separate account which shall be 
known as the ``Customs User Fee Account''. Notwithstanding 
section 524 of the Tariff Act of 1930 (19 U.S.C. 1524), there 
shall be deposited as offsetting receipts into the Customs User 
Fee Account all fees collected under subsection (a) except--
          (A) * * *
          (B) amounts deposited into the Customs Commercial and 
        Homeland Security Automation Account under paragraph 
        (5).

           *       *       *       *       *       *       *

                              ----------                              


                  SECTION 141 OF THE TRADE ACT OF 1974

SEC. 141. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.

  (a) * * *

           *       *       *       *       *       *       *

  (g)(1)(A) There are authorized to be appropriated to the 
Office for the purposes of carrying out its functions the 
following:
          [(i) $32,300,000 for fiscal year 2003.
          [(ii) $33,108,000 for fiscal year 2004.]
          (i) $39,552,000 for fiscal year 2005.
          (ii) $39,552,000 for fiscal year 2006.

           *       *       *       *       *       *       *


                     VII. COMMITTEE CORRESPONDENCE

                          House of Representatives,
                               Committee on Ways and Means,
                                     Washington, DC, July 13, 2004.
Hon. F. James Sensenbrenner, Jr.,
Chairman, Committee on the Judiciary,
Rayburn House Office Building, Washington, DC.
    Dear Chairman Sensenbrenner: Thank you for your letter 
regarding H.R. 4418, the ``Customs Border Security and Trade 
Agencies Authorization Act of 2004.'' The Committee on Ways and 
Means ordered favorably reported, as amended, H.R. 4418 on 
Thursday, July 8, 2004 by a 33-0 vote. I appreciate your 
agreement to expedite the passage of this legislation although 
it contains several immigration provisions that are within your 
Committee's jurisdiction. I acknowledge your decision to forego 
further action on the bill is based on the understanding that 
it will not prejudice the Committee on the Judiciary with 
request to its jurisdictional prerogatives on this or similar 
legislation.
    Our committees have long collaborated on these important 
initiatives, and I am very pleased we are continuing that 
cooperation. Your leadership on immigration issues is critical 
to the success of this bill. I appreciate your helping us to 
move legislation quickly to the floor.
    Finally, I will include in both the Committee report and 
the Congressional Record a copy of our exchange of letters on 
this matter. Thank you for your assistance and cooperation. I 
look forward to working with you in the future.
            Best regards,
                                               Bill Thomas,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                                Committee on the Judiciary,
                                     Washington, DC, July 13, 2004.
Hon. Bill Thomas,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Chairman Thomas: In recognition of the desire to 
expedite floor consideration of H.R. 4418, the ``Customs Border 
Security Act of 2004,'' the Committee on the Judiciary hereby 
waives consideration of the bill.
    Certain sections of H.R. 4418 contain matters within the 
Committee on the Judiciary's Rule X jurisdiction: Section 101 
(insofar as it authorizes funding for immigration matters); 
Section 102 (insofar as it requires cost accounting systems for 
immigration matters); and Section 122 (insofar as the 
Integrated Border Inspection Areas include immigration 
matters). Because of the need to expedite this legislation, I 
will not seek to mark up the bill under the Committee on the 
Judiciary's secondary referral.
    The Committee on the Judiciary takes this action with the 
understanding that the Committee's jurisdiction over these 
provisions is in no way diminished or altered. I would 
appreciate your including this letter in your Committee's 
report on H.R. 4418 and the Congressional Record during 
consideration of the legislation on the House floor.
            Sincerely,
                                F. James Sesenbrenner, Jr.,
                                                          Chairman.

                              VIII. VIEWS

                              ----------                              


                            ADDITIONAL VIEWS

    Earlier this year, the Customs and Border Protection Agency 
admitted that it had failed to collect more than $130 million 
in duties owed on imports, largely from China. An investigation 
showed that one reason for this $130 million problem was a 
loophole applicable to so-called ``New Shippers'' of goods 
subject to antidumping (AD) and contervailing (CVD) duties. 
There are variations on this loophole, but basically, one 
version of the loophole allows these ``New Shippers'' to post 
bonds for the unfair trade duties they owe, rather than paying 
the estimated amount owed. Established importers do not enjoy 
this benefit of being able to post bonds for pennies on the 
dollar, but must pay the estimated duties.
    In what appeared to be a pattern, importers failed to pay 
the full amount of duties, leaving CBP with recourse to the 
bonds. To the extend that the bonds were collectible, they were 
insufficient to cover the full amount of the duties owed. In 
other cases, CBP was unable to collect on the bonds. This 
problem contributed to CBP's failure to collect more than $130 
million worth of duties owed; America's fair trade laws were 
flouted and the U.S. Treasury was deprived of a substantial 
amount of revenues that it was due. A large number of the 
importers taking advantage of the loophole were importing 
products from China; in some cases, it appears that Chinese 
firms subject to AD/CVD duties set up shell companies to take 
advantage of the ``New Shipper'' process. In a related problem, 
it appears that CBP has been unable in a number of cases to 
collect the full amount of a duty owed, even when ``New 
Shippers'' were not involved and cash deposits were paid.
    These failures reflect poorly on CBP. It has repeatedly, 
and in a variety of contexts and circumstances, failed to 
ensure that U.S. trade laws are enforced as provided by law. 
These serious and repeated failures have denied American 
workers, farmers and businesses benefits to which they are 
entitled under U.S. law. These lapses involve failure to follow 
procedures established under U.S. law and failure to utilize 
due diligence in enforcing the U.S. law.
    In response to Congressional inquiries and criticisms, CBP 
recently proposed a series of reforms to address aspects of 
these problems. We have serious concerns not only about CBP's 
ability to implement the proposed reforms, but also with 
whether the reforms would in fact eliminate the problems. We 
believe that a more comprehensive approach involving changes to 
current U.S. law is necessary. Steps that we recommend taking 
include ending the special treatment allowed for ``New 
Shippers.'' In particular, ``New Shippers'' should be treated 
like other importers--they would have to pay estimated duties 
with each entry, and would not be allowed to post bonds.
    This step would be fully consistent with our international 
obligations, which authorize the United States to ``request 
guarantees to ensure that . . . duties can be levied 
retroactively to the date of the initiation of the review.'' 
Clearly, the ``guarantees'' in the form of bonds have not 
ensured that the duties could be levied as provided in Article 
9.5 of the Antidumping Agreement of the World Trade 
Organization. To do so requires collecting cash deposits. We 
would be prepared to consider other alternatives, including a 
more reliable bonding requirement, at some future date, were it 
to be proposed by CBP, and were it to ensure the ability of the 
United States to levy duties retroactively to the date of the 
initiation of the review.
    In addition, we believe that the requirement that importers 
of goods subject to antidumping or countervailing duty actions 
post continuous bonds with a higher level of coverage should be 
statutorily mandated--and not left to CBP's discretion. CBP's 
record in implementing laws that allow for discretion has not 
always been consistent with Congress' expectations in the past, 
underscoring the need for Congress to provide exact and 
specific direction.
    We will continue to raise this issue as the legislation 
moves forward. We are supportive of the authorizations for 
these agencies, and of other provisions in the legislation. 
That said, the failure to enforce U.S. trade laws is a serious 
one, and one that deserves action from this House.
Office of the U.S. Trade Representative
    Section 201 of the H.R. 4418 authorizes appropriations for 
USTR for FY2005 and FY2006 at $41.5 million per year. This 
amount is $2 million over the Administration's budget request.
    We believe that additional direction should have been 
included to ensure that some portion of this additional $2 
million is used to ensure our trading partners are living up to 
their international trade obligations. The current legislation 
does not require this outcome. Instead, as this bill is 
currently drafted, the additional $2 million can be used 
entirely for free trade agreement negotiations, administering 
U.S. trade preference programs (like AGOA, CBI and ATPA), and 
coordinating inter-agency trade policy.
    During the Full Committee markup, Congressman Levin offered 
an amendment that directed USTR to use some part of the 
additional $2 million for staff to, among other activities, 
investigate, prosecute, and defend cases before the World Trade 
Organization and under trade agreements to which the United 
States is a party, and to address foreign government barriers 
to United States goods and services, particularly with respect 
to the People's Republic of China. The amendment was rejected 
on a straight party line vote.
    The decision by the Republican Members of the Committee to 
reject the amendment is unfortunate. In 2003, the goods trade 
deficit set a record high of $549.4 billion. We are losing 
ground even areas, like advanced technology products, where the 
United States has dominated. In 2003, our deficit in advanced 
technology products climbed 65 percent, and total goods exports 
were down $58 million from 2000. Unfortunately, the trade 
deficit is on track once again this year to set a new record.
    We will continue to work for inclusion of specific 
direction to USTR on this issue, so that USTR starts producing 
results for American workers, farmers and businesses.
Compilation of Additional Views
    Democratic Members of the Committee were provided only a 
half working day to respond to the Committee views, which, 
without prior notice, contained comments on a number of 
tangential points. Further, the Majority provided the 
Democratic Members of the Committee with notice at 
approximately 6:45 in the evening that this legislation would 
come to the Floor the next day under the Suspensions Calendar. 
As a consequence, many of the Democratic Members of the 
Committee have been deprived of the opportunity to review, 
consider and sign these Additional Views. We hope that in the 
future more adequate notice can be provided so that the 
Majority and Minority can work more collaboratively whenever 
possible.

                                   Charles B. Rangel.
                                   Jim McDermott.
                                   Stephanie Tubbs Jones.
                                   Robert T. Matsui.
                                   Sander Levin.
                                   Xavier Becerra.
                                   Earl Pomeroy.