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114th Congress   }                                   {    Rept. 114-114
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                   {           Part 1
_______________________________________________________________________

                                     


          TRADE FACILITATION AND TRADE ENFORCEMENT ACT OF 2015

                               ----------                              

                              R E P O R T

                                 of the

                      COMMITTEE ON WAYS AND MEANS
                        HOUSE OF REPRESENTATIVES

                                   on

                               H.R. 1907

                             together with

                            ADDITIONAL VIEWS

      [Including cost estimate of the Congressional Budget Office]

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


  May 14, 2015.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed












114th Congress   }                                   {    Rept. 114-114
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                   {           Part 1 
_______________________________________________________________________

                                     


          TRADE FACILITATION AND TRADE ENFORCEMENT ACT OF 2015

                               __________

                              R E P O R T

                                 of the

                      COMMITTEE ON WAYS AND MEANS

                        HOUSE OF REPRESENTATIVES

                                   on

                               H.R. 1907

                             together with

                            ADDITIONAL VIEWS

      [Including cost estimate of the Congressional Budget Office]

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


  May 14, 2015.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                  ______

                         U.S. GOVERNMENT PUBLISHING OFFICE 

94-600                         WASHINGTON : 2015 


















                            C O N T E N T S

                                                                   Page
  I. SUMMARY AND BACKGROUND..........................................49
          A. Purpose and Summary.................................    49
          B. Background and Need for Legislation.................    50
          C. Legislative History.................................    51
 II. EXPLANATION OF THE BILL.........................................52
          A. TRADE FACILITATION AND TRADE ENFORCEMENT ACT OF 2015    52
III. VOTES OF THE COMMITTEE.........................................105
 IV. BUDGET EFFECTS OF THE BILL.....................................105
          A. Committee Estimate of Budgetary Effects.............   105
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................   105
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................   105
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.....112
          A. Committee Oversight Findings and Recommendations....   112
          B. Statement of General Performance Goals and 
              Objectives.........................................   112
          C. Information Relating to Unfunded Mandates...........   112
          D. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................   112
          E. Duplication of Federal Programs.....................   113
          F. Disclosure of Directed Rule Makings.................   113
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED..........113
          A. Text of Existing Law Amended or Repealed by the 
              Bill, as Reported..................................   113
          B. Changes in Existing Law Proposed by the Bill, as 
              Reported...........................................   234
VII. ADDITIONAL VIEWS...............................................381








114th Congress   }                                   {    Rept. 114-114
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                   {           Part 1
======================================================================



 
          TRADE FACILITATION AND TRADE ENFORCEMENT ACT OF 2015

                                _______
                                

  May 14, 2015.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Ryan of Wisconsin, from the Committee on Ways and Means, submitted 
                             the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 1907]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 1907) to reauthorize trade facilitation and trade 
enforcement functions and activities, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
    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 ``Trade Facilitation 
and Trade Enforcement Act of 2015''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

           TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT

Sec. 101. Improving partnership programs.
Sec. 102. Report on effectiveness of trade enforcement activities.
Sec. 103. Priorities and performance standards for customs 
modernization, trade facilitation, and trade enforcement functions and 
programs.
Sec. 104. Educational seminars to improve efforts to classify and 
appraise imported articles, to improve trade enforcement efforts, and 
to otherwise facilitate legitimate international trade.
Sec. 105. Joint strategic plan.
Sec. 106. Automated Commercial Environment.
Sec. 107. International Trade Data System.
Sec. 108. Consultations with respect to mutual recognition 
arrangements.
Sec. 109. Commercial Customs Operations Advisory Committee.
Sec. 110. Centers of Excellence and Expertise.
Sec. 111. Commercial Targeting Division and National Targeting and 
Analysis Groups.
Sec. 112. Report on oversight of revenue protection and enforcement 
measures.
Sec. 113. Report on security and revenue measures with respect to 
merchandise transported in bond.
Sec. 114. Importer of record program.
Sec. 115. Establishment of new importer program.
Sec. 116. Customs broker identification of importers.
Sec. 117. Requirements applicable to non-resident importers.

                   TITLE II--IMPORT HEALTH AND SAFETY

Sec. 201. Interagency import safety working group.
Sec. 202. Joint import safety rapid response plan.
Sec. 203. Training.

  TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

Sec. 301. Definition of intellectual property rights.
Sec. 302. Exchange of information related to trade enforcement.
Sec. 303. Seizure of circumvention devices.
Sec. 304. Enforcement by U.S. Customs and Border Protection of works 
for which copyright registration is pending.
Sec. 305. National Intellectual Property Rights Coordination Center.
Sec. 306. Joint strategic plan for the enforcement of intellectual 
property rights.
Sec. 307. Personnel dedicated to the enforcement of intellectual 
property rights.
Sec. 308. Training with respect to the enforcement of intellectual 
property rights.
Sec. 309. International cooperation and information sharing.
Sec. 310. Report on intellectual property rights enforcement.
Sec. 311. Information for travelers regarding violations of 
intellectual property rights.

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

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Application to Canada and Mexico.

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

Sec. 411. Trade remedy law enforcement division.
Sec. 412. Collection of information on evasion of trade remedy laws.
Sec. 413. Access to information.
Sec. 414. Cooperation with foreign countries on preventing evasion of 
trade remedy laws.
Sec. 415. Trade negotiating objectives.

       Subtitle B--Investigation of Evasion of Trade Remedy Laws

Sec. 421. Procedures for investigation of evasion of antidumping and 
countervailing duty orders.
Sec. 422. Government Accountability Office report.

                       Subtitle C--Other Matters

Sec. 431. Allocation and training of personnel.
Sec. 432. Annual report on prevention of evasion of antidumping and 
countervailing duty orders.
Sec. 433. Addressing circumvention by new shippers.

               TITLE V--ADDITIONAL ENFORCEMENT PROVISIONS

Sec. 501. Trade enforcement priorities.
Sec. 502. Exercise of WTO authorization to suspend concessions or other 
obligations under trade agreements.
Sec. 503. Trade monitoring.

                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. De minimis value.
Sec. 602. Consultation on trade and customs revenue functions.
Sec. 603. Penalties for customs brokers.
Sec. 604. Amendments to chapter 98 of the Harmonized Tariff Schedule of 
the United States.
Sec. 605. Exemption from duty of residue of bulk cargo contained in 
instruments of international traffic previously exported from the 
United States.
Sec. 606. Drawback and refunds.
Sec. 607. Office of the United States Trade Representative.
Sec. 608. United States-Israel Trade and Commercial Enhancement.
Sec. 609. Elimination of consumptive demand exception to prohibition on 
importation of goods made with convict labor, forced labor, or 
indentured labor; report.
Sec. 610. Customs user fees.
Sec. 611. Report on certain U.S. Customs and Border Protection 
agreements.
Sec. 612. Certain interest to be included in distributions under 
Continued Dumping and Subsidy Offset Act of 2000.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Automated commercial environment.--The term ``Automated 
        Commercial Environment'' means the Automated Commercial 
        Environment computer system authorized under section 
        13031(f)(4) of the Consolidated Omnibus Budget Reconciliation 
        Act of 1985 (19 U.S.C. 58c(f)(4)).
          (2) Commissioner.--The term ``Commissioner'' means the 
        Commissioner responsible for U.S. Customs and Border 
        Protection.
          (3) Customs and trade laws of the united states.--The term 
        ``customs and trade laws of the United States'' includes the 
        following:
                  (A) The Tariff Act of 1930 (19 U.S.C. 1202 et seq.).
                  (B) Section 249 of the Revised Statutes (19 U.S.C. 
                3).
                  (C) Section 2 of the Act of March 4, 1923 (42 Stat. 
                1453, chapter 251; 19 U.S.C. 6).
                  (D) The Act of March 3, 1927 (44 Stat. 1381, chapter 
                348; 19 U.S.C. 2071 et seq.).
                  (E) Section 13031 of the Consolidated Omnibus Budget 
                Reconciliation Act of 1985 (19 U.S.C. 58c).
                  (F) Section 251 of the Revised Statutes (19 U.S.C. 
                66).
                  (G) Section 1 of the Act of June 26, 1930 (46 Stat. 
                817, chapter 617; 19 U.S.C. 68).
                  (H) The Foreign Trade Zones Act (19 U.S.C. 81a et 
                seq.).
                  (I) Section 1 of the Act of March 2, 1911 (36 Stat. 
                965, chapter 191; 19 U.S.C. 198).
                  (J) The Trade Act of 1974 (19 U.S.C. 2102 et seq.).
                  (K) The Trade Agreements Act of 1979 (19 U.S.C. 2501 
                et seq.).
                  (L) The North American Free Trade Agreement 
                Implementation Act (19 U.S.C. 3301 et seq.).
                  (M) The Uruguay Round Agreements Act (19 U.S.C. 3501 
                et seq.).
                  (N) The Caribbean Basin Economic Recovery Act (19 
                U.S.C. 2701 et seq.).
                  (O) The Andean Trade Preference Act (19 U.S.C. 3201 
                et seq.).
                  (P) The African Growth and Opportunity Act (19 U.S.C. 
                3701 et seq.).
                  (Q) The Customs Enforcement Act of 1986 (Public Law 
                99-570; 100 Stat. 3207-79).
                  (R) The Customs and Trade Act of 1990 (Public Law 
                101-382; 104 Stat. 629).
                  (S) The Customs Procedural Reform and Simplification 
                Act of 1978 (Public Law 95-410; 92 Stat. 888).
                  (T) The Trade Act of 2002 (Public Law 107-210; 116 
                Stat. 933).
                  (U) The Convention on Cultural Property 
                Implementation Act (19 U.S.C. 2601 et seq.).
                  (V) The Act of March 28, 1928 (45 Stat. 374, chapter 
                266; 19 U.S.C. 2077 et seq.).
                  (W) The Act of August 7, 1939 (53 Stat. 1263, chapter 
                566).
                  (X) Any other provision of law implementing a trade 
                agreement.
                  (Y) Any other provision of law vesting customs 
                revenue functions in the Secretary of the Treasury.
                  (Z) Any other provision of law relating to trade 
                facilitation or trade enforcement that is administered 
                by U.S. Customs and Border Protection on behalf of any 
                Federal agency that is required to participate in the 
                International Trade Data System.
                  (AA) Any other provision of customs or trade law 
                administered by U.S. Customs and Border Protection or 
                U.S. Immigration and Customs Enforcement.
          (4) Private sector entity.--The term ``private sector 
        entity'' means--
                  (A) an importer;
                  (B) an exporter;
                  (C) a forwarder;
                  (D) an air, sea, or land carrier or shipper;
                  (E) a contract logistics provider;
                  (F) a customs broker; or
                  (G) any other person (other than an employee of a 
                government) affected by the implementation of the 
                customs and trade laws of the United States.
          (5) Trade enforcement.--The term ``trade enforcement'' means 
        the enforcement of the customs and trade laws of the United 
        States.
          (6) Trade facilitation.--The term ``trade facilitation'' 
        refers to policies and activities of U.S. Customs and Border 
        Protection with respect to facilitating the movement of 
        merchandise into and out of the United States in a manner that 
        complies with the customs and trade laws of the United States.

           TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT

SEC. 101. IMPROVING PARTNERSHIP PROGRAMS.

  (a) In General.--In order to advance the security, trade enforcement, 
and trade facilitation missions of U.S. Customs and Border Protection, 
the Commissioner shall ensure that partnership programs of U.S. Customs 
and Border Protection established before the date of the enactment of 
this Act, such as the Customs-Trade Partnership Against Terrorism 
established under subtitle B of title II of the Security and 
Accountability for Every Port Act of 2006 (6 U.S.C. 961 et seq.), and 
partnership programs of U.S. Customs and Border Protection established 
after such date of enactment, provide trade benefits to private sector 
entities that meet the requirements for participation in those programs 
established by the Commissioner under this section.
  (b) Elements.--In developing and operating partnership programs under 
subsection (a), the Commissioner shall--
          (1) consult with private sector entities, the public, and 
        other Federal agencies when appropriate, to ensure that 
        participants in those programs receive commercially significant 
        and measurable trade benefits, including providing pre-
        clearance of merchandise for qualified persons that demonstrate 
        the highest levels of compliance with the customs and trade 
        laws of the United States, regulations of U.S. Customs and 
        Border Protection, and other requirements the Commissioner 
        determines to be necessary;
          (2) ensure an integrated and transparent system of trade 
        benefits and compliance requirements for all partnership 
        programs of U.S. Customs and Border Protection;
          (3) consider consolidating partnership programs in situations 
        in which doing so would support the objectives of such 
        programs, increase participation in such programs, enhance the 
        trade benefits provided to participants in such programs, and 
        enhance the allocation of the resources of U.S. Customs and 
        Border Protection;
          (4) coordinate with the Director of U.S. Immigration and 
        Customs Enforcement, and other Federal agencies with authority 
        to detain and release merchandise entering the United States--
                  (A) to ensure coordination in the release of such 
                merchandise through the Automated Commercial 
                Environment, or its predecessor, and the International 
                Trade Data System;
                  (B) to ensure that the partnership programs of those 
                agencies are compatible with the partnership programs 
                of U.S. Customs and Border Protection;
                  (C) to develop criteria for authorizing the release, 
                on an expedited basis, of merchandise for which 
                documentation is required from one or more of those 
                agencies to clear or license the merchandise for entry 
                into the United States; and
                  (D) to create pathways, within and among the 
                appropriate Federal agencies, for qualified persons 
                that demonstrate the highest levels of compliance to 
                receive immediate clearance absent information that a 
                transaction may pose a national security or compliance 
                threat; and
          (5) ensure that trade benefits are provided to participants 
        in partnership programs.
  (c) Report Required.--Not later than the date that is 180 days after 
the date of the enactment of this Act, and December 31 of each year 
thereafter, the Commissioner shall submit to the Committee on Finance 
of the Senate and the Committee on Ways and Means of the House of 
Representatives a report that--
          (1) identifies each partnership program referred to in 
        subsection (a);
          (2) for each such program, identifies--
                  (A) the requirements for participants in the program;
                  (B) the commercially significant and measurable trade 
                benefits provided to participants in the program;
                  (C) the number of participants in the program; and
                  (D) in the case of a program that provides for 
                participation at multiple tiers, the number of 
                participants at each such tier;
          (3) identifies the number of participants enrolled in more 
        than one such partnership program;
          (4) assesses the effectiveness of each such partnership 
        program in advancing the security, trade enforcement, and trade 
        facilitation missions of U.S. Customs and Border Protection, 
        based on historical developments, the level of participation in 
        the program, and the evolution of benefits provided to 
        participants in the program;
          (5) summarizes the efforts of U.S. Customs and Border 
        Protection to work with other Federal agencies with authority 
        to detain and release merchandise entering the United States to 
        ensure that partnership programs of those agencies are 
        compatible with partnership programs of U.S. Customs and Border 
        Protection;
          (6) summarizes criteria developed with those agencies for 
        authorizing the release, on an expedited basis, of merchandise 
        for which documentation is required from one or more of those 
        agencies to clear or license the merchandise for entry into the 
        United States;
          (7) summarizes the efforts of U.S. Customs and Border 
        Protection to work with private sector entities and the public 
        to develop and improve partnership programs referred to in 
        subsection (a);
          (8) describes measures taken by U.S. Customs and Border 
        Protection to make private sector entities aware of the trade 
        benefits available to participants in such programs; and
          (9) summarizes the plans, targets, and goals of U.S. Customs 
        and Border Protection with respect to such programs for the 2 
        years following the submission of the report.

SEC. 102. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT ACTIVITIES.

  (a) In General.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives a report on 
the effectiveness of trade enforcement activities of U.S. Customs and 
Border Protection.
  (b) Contents.--The report required by subsection (a) shall include--
          (1) a description of the use of resources, results of audits 
        and verifications, targeting, organization, and training of 
        personnel of U.S. Customs and Border Protection; and
          (2) a description of trade enforcement activities to address 
        undervaluation, transshipment, legitimacy of entities making 
        entry, protection of revenues, fraud prevention and detection, 
        and penalties, including intentional misclassification, 
        inadequate bonding, and other misrepresentations.

SEC. 103. PRIORITIES AND PERFORMANCE STANDARDS FOR CUSTOMS 
                    MODERNIZATION, TRADE FACILITATION, AND TRADE 
                    ENFORCEMENT FUNCTIONS AND PROGRAMS.

  (a) Priorities and Performance Standards.--
          (1) In general.--The Commissioner, in consultation with the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives, shall establish 
        priorities and performance standards to measure the development 
        and levels of achievement of the customs modernization, trade 
        facilitation, and trade enforcement functions and programs 
        described in subsection (b).
          (2) Minimum priorities and standards.--Such priorities and 
        performance standards shall, at a minimum, include priorities 
        and standards relating to efficiency, outcome, output, and 
        other types of applicable measures.
  (b) Functions and Programs Described.--The functions and programs 
referred to in subsection (a) are the following:
          (1) The Automated Commercial Environment.
          (2) Each of the priority trade issues described in paragraph 
        (3)(B)(ii) of section 2(d) of the Act of March 3, 1927 (44 
        Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), as added by 
        section 111(a) of this Act.
          (3) The Centers of Excellence and Expertise described in 
        section 110 of this Act.
          (4) Drawback for exported merchandise under section 313 of 
        the Tariff Act of 1930 (19 U.S.C. 1313), as amended by section 
        406 of this Act.
          (5) Transactions relating to imported merchandise in bond.
          (6) Collection of countervailing duties assessed under 
        subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 
        1671 et seq.) and antidumping duties assessed under subtitle B 
        of title VII of the Tariff Act of 1930 (19 U.S.C. 1673 et 
        seq.).
          (7) The expedited clearance of cargo.
          (8) The issuance of regulations and rulings.
          (9) The issuance of Regulatory Audit Reports.
  (c) Consultations and Notification.--
          (1) Consultations.--The consultations required by subsection 
        (a)(1) shall occur, at a minimum, on an annual basis.
          (2) Notification.--The Commissioner shall notify the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives of any changes to the 
        priorities referred to in subsection (a) not later than 30 days 
        before such changes are to take effect.

SEC. 104. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS TO CLASSIFY AND 
                    APPRAISE IMPORTED ARTICLES, TO IMPROVE TRADE 
                    ENFORCEMENT EFFORTS, AND TO OTHERWISE FACILITATE 
                    LEGITIMATE INTERNATIONAL TRADE.

  (a) In General.--
          (1) Establishment.--The Commissioner and the Director shall 
        establish and carry out on a fiscal year basis educational 
        seminars to--
                  (A) improve the ability of U.S. Customs and Border 
                Protection personnel to classify and appraise articles 
                imported into the United States in accordance with the 
                customs and trade laws of the United States;
                  (B) improve the trade enforcement efforts of U.S. 
                Customs and Border Protection personnel and U.S. 
                Immigration and Customs Enforcement personnel; and
                  (C) otherwise improve the ability and effectiveness 
                of U.S. Customs and Border Protection personnel and 
                U.S. Immigration and Customs Enforcement personnel to 
                facilitate legitimate international trade.
  (b) Content.--
          (1) Classifying and appraising imported articles.--In 
        carrying out subsection (a)(1)(A), the Commissioner, the 
        Director, and interested parties in the private sector selected 
        under subsection (c) shall provide instruction and related 
        instructional materials at each educational seminar under this 
        section to U.S. Customs and Border Protection personnel and, as 
        appropriate, to U.S. Immigration and Customs Enforcement 
        personnel on the following:
                  (A) Conducting a physical inspection of an article 
                imported into the United States, including testing of 
                samples of the article, to determine if the article is 
                mislabeled in the manifest or other accompanying 
                documentation.
                  (B) Reviewing the manifest and other accompanying 
                documentation of an article imported into the United 
                States to determine if the country of origin of the 
                article listed in the manifest or other accompanying 
                documentation is accurate.
                  (C) Customs valuation.
                  (D) Industry supply chains and other related matters 
                as determined to be appropriate by the Commissioner.
          (2) Trade enforcement efforts.--In carrying out subsection 
        (a)(1)(B), the Commissioner, the Director, and interested 
        parties in the private sector selected under subsection (c) 
        shall provide instruction and related instructional materials 
        at each educational seminar under this section to U.S. Customs 
        and Border Protection personnel and, as appropriate, to U.S. 
        Immigration and Customs Enforcement personnel to identify 
        opportunities to enhance enforcement of the following:
                  (A) Collection of countervailing duties assessed 
                under subtitle A of title VII of the Tariff Act of 1930 
                (19 U.S.C. 1671 et seq.) and antidumping duties 
                assessed under subtitle B of title VII of the Tariff 
                Act of 1930 (19 U.S.C. 1673 et seq.).
                  (B) Addressing evasion of duties on imports of 
                textiles.
                  (C) Protection of intellectual property rights.
                  (D) Enforcement of child labor laws.
          (3) Approval of commissioner and director.--The instruction 
        and related instructional materials at each educational seminar 
        under this section shall be subject to the approval of the 
        Commissioner and the Director.
  (c) Selection Process.--
          (1) In general.--The Commissioner shall establish a process 
        to solicit, evaluate, and select interested parties in the 
        private sector for purposes of assisting in providing 
        instruction and related instructional materials described in 
        subsection (b) at each educational seminar under this section.
          (2) Criteria.--The Commissioner shall evaluate and select 
        interested parties in the private sector under the process 
        established under paragraph (1) based on--
                  (A) availability and usefulness;
                  (B) the volume, value, and incidence of mislabeling 
                or misidentification of origin of imported articles; 
                and
                  (C) other appropriate criteria established by the 
                Commissioner.
          (3) Public availability.--The Commissioner and the Director 
        shall publish in the Federal Register a detailed description of 
        the process established under paragraph (1) and the criteria 
        established under paragraph (2).
  (d) Special Rule for Antidumping and Countervailing Duty Orders.--
          (1) In general.--The Commissioner shall give due 
        consideration to carrying out an educational seminar under this 
        section in whole or in part to improve the ability of U.S. 
        Customs and Border Protection personnel to enforce a 
        countervailing or antidumping duty order issued under section 
        706 or 736 of the Tariff Act of 1930 (19 U.S.C. 1671e or 1673e) 
        upon the request of a petitioner in an action underlying such 
        countervailing or antidumping duty order.
          (2) Interested party.--A petitioner described in paragraph 
        (1) shall be treated as an interested party in the private 
        sector for purposes of the requirements of this section.
  (e) Performance Standards.--The Commissioner and the Director shall 
establish performance standards to measure the development and level of 
achievement of educational seminars under this section.
  (f) Reporting.--Beginning September 30, 2016, the Commissioner and 
the Director shall submit to the Committee of Finance of the Senate and 
the Committee of Ways and Means of the House of Representatives an 
annual report on the effectiveness of educational seminars under this 
section.
  (g) Definitions.--In this section:
          (1) Director.--The term ``Director'' means the Director of 
        U.S. Immigration and Customs Enforcement.
          (2) United states.--The term ``United States'' means the 
        customs territory of the United States, as defined in General 
        Note 2 to the Harmonized Tariff Schedule of the United States.
          (3) U.S. customs and border protection personnel.--The term 
        ``U.S. Customs and Border Protection personnel'' means import 
        specialists, auditors, and other appropriate employees of the 
        U.S. Customs and Border Protection.
          (4) U.S. immigration and customs enforcement personnel.--The 
        term ``U.S. Immigrations and Customs Enforcement personnel'' 
        means Homeland Security Investigations Directorate personnel 
        and other appropriate employees of U.S. Immigrations and 
        Customs Enforcement.

SEC. 105. JOINT STRATEGIC PLAN.

  (a) In General.--Not later than one year after the date of the 
enactment of this Act, and every 2 years thereafter, the Commissioner 
and the Director of U.S. Immigration and Customs Enforcement shall 
jointly develop and submit to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of Representatives, a 
joint strategic plan.
  (b) Contents.--The joint strategic plan required under this section 
shall be comprised of a comprehensive multi-year plan for trade 
enforcement and trade facilitation, and shall include--
          (1) a summary of actions taken during the 2-year period 
        preceding the submission of the plan to improve trade 
        enforcement and trade facilitation, including a description and 
        analysis of specific performance measures to evaluate the 
        progress of U.S. Customs and Border Protection and U.S. 
        Immigration and Customs Enforcement in meeting each such 
        responsibility;
          (2) a statement of objectives and plans for further improving 
        trade enforcement and trade facilitation;
          (3) a specific identification of the priority trade issues 
        described in paragraph (3)(B)(ii) of section 2(d) of the Act of 
        March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), 
        as added by section 111(a) of this Act, that can be addressed 
        in order to enhance trade enforcement and trade facilitation, 
        and a description of strategies and plans for addressing each 
        such issue;
          (4) a description of efforts made to improve consultation and 
        coordination among and within Federal agencies, and in 
        particular between U.S. Customs and Border Protection and U.S. 
        Immigration and Customs Enforcement, regarding trade 
        enforcement and trade facilitation;
          (5) a description of the training that has occurred to date 
        within U.S. Customs and Border Protection and U.S. Immigration 
        and Customs Enforcement to improve trade enforcement and trade 
        facilitation, including training under section 104 of this Act;
          (6) a description of efforts to work with the World Customs 
        Organization and other international organizations, in 
        consultation with other Federal agencies as appropriate, with 
        respect to enhancing trade enforcement and trade facilitation;
          (7) a description of U.S. Custom and Border Protection 
        organizational benchmarks for optimizing staffing and wait 
        times at ports of entry;
          (8) a specific identification of any domestic or 
        international best practices that may further improve trade 
        enforcement and trade facilitation;
          (9) any legislative recommendations to further improve trade 
        enforcement and trade facilitation; and
          (10) a description of efforts made to improve consultation 
        and coordination with the private sector to enhance trade 
        enforcement and trade facilitation.
  (c) Consultations.--
          (1) In general.--In developing the joint strategic plan 
        required under this section, the Commissioner and the Director 
        shall consult with--
                  (A) appropriate officials from the relevant Federal 
                agencies, including--
                          (i) the Department of the Treasury;
                          (ii) the Department of Agriculture;
                          (iii) the Department of Commerce;
                          (iv) the Department of Justice;
                          (v) the Department of the Interior;
                          (vi) the Department of Health and Human 
                        Services;
                          (vii) the Food and Drug Administration;
                          (viii) the Consumer Product Safety 
                        Commission; and
                          (ix) the Office of the United States Trade 
                        Representative; and
                  (B) the Commercial Customs Operations Advisory 
                Committee established by section 109 of this Act.
          (2) Other consultations.--In developing the joint strategic 
        plan required under this section, the Commissioner and the 
        Director shall seek to consult with--
                  (A) appropriate officials from relevant foreign law 
                enforcement agencies and international organizations, 
                including the World Customs Organization; and
                  (B) interested parties in the private sector.

SEC. 106. AUTOMATED COMMERCIAL ENVIRONMENT.

  (a) Funding.--Section 13031(f)(4)(B) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)(4)(B)) is amended--
          (1) by striking ``2003 through 2005'' and inserting ``2016 
        through 2018'';
          (2) by striking ``such amounts as are available in that 
        Account'' and inserting ``not less than $153,736,000''; and
          (3) by striking ``for the development'' and inserting ``to 
        complete the development and implementation''.
  (b) Report.--Section 311(b)(3) of the Customs Border Security Act of 
2002 (19 U.S.C. 2075 note) is amended to read as follows:
          ``(3) Report.--
                  ``(A) In general.--Not later than December 31, 2016, 
                the Commissioner responsible for U.S. Customs and 
                Border Protection shall submit to the Committee on 
                Appropriations and the Committee on Finance of the 
                Senate and the Committee on Appropriations and the 
                Committee on Ways and Means of the House of 
                Representatives a report detailing--
                          ``(i) U.S. Customs and Border Protection's 
                        incorporation of all core trade processing 
                        capabilities, including cargo release, entry 
                        summary, cargo manifest, cargo financial data, 
                        and export data elements into the Automated 
                        Commercial Environment computer system 
                        authorized under section 13031(f)(4) of the 
                        Consolidated Omnibus Budget and Reconciliation 
                        Act of 1985 (19 U.S.C. 58c(f)(4)) not later 
                        than September 30, 2016, to conform with the 
                        admissibility criteria of agencies 
                        participating in the International Trade Data 
                        System identified pursuant to section 
                        411(d)(4)(A)(iii) of the Tariff Act of 1930;
                          ``(ii) U.S. Customs and Border Protection's 
                        remaining priorities for processing entry 
                        summary data elements, cargo manifest data 
                        elements, cargo financial data elements, and 
                        export elements in the Automated Commercial 
                        Environment computer system, and the objectives 
                        and plans for implementing these remaining 
                        priorities;
                          ``(iii) the components of the National 
                        Customs Automation Program specified in 
                        subsection (a)(2) of section 411 of the Tariff 
                        Act of 1930 that have not been implemented; and
                          ``(iv) any additional components of the 
                        National Customs Automation Program initiated 
                        by the Commissioner to complete the 
                        development, establishment, and implementation 
                        of the Automated Commercial Environment 
                        computer system.
                  ``(B) Update of reports.--Not later than September 
                30, 2017, the Commissioner shall submit to the 
                Committee on Appropriations and the Committee on 
                Finance of the Senate and the Committee on 
                Appropriations and the Committee on Ways and Means of 
                the House of Representatives an updated report 
                addressing each of the matters referred to in 
                subparagraph (A), and--
                          ``(i) evaluating the effectiveness of the 
                        implementation of the Automated Commercial 
                        Environment computer system; and
                          ``(ii) detailing the percentage of trade 
                        processed in the Automated Commercial 
                        Environment every month since September 30, 
                        2016.''.
  (c) Government Accountability Office Report.--Not later than December 
31, 2017, the Comptroller General of the United States shall submit to 
the Committee on Appropriations and the Committee on Finance of the 
Senate and the Committee on Appropriations and the Committee on Ways 
and Means of the House of Representatives a report--
          (1) assessing the progress of other Federal agencies in 
        accessing and utilizing the Automated Commercial Environment; 
        and
          (2) assessing the potential cost savings to the United States 
        Government and importers and exporters and the potential 
        benefits to enforcement of the customs and trade laws of the 
        United States if the elements identified in clauses (i) through 
        (iv) of section 311(b)(3)(A) of the Customs Border Security Act 
        of 2002, as amended by subsection (b) of this section, are 
        implemented.

SEC. 107. INTERNATIONAL TRADE DATA SYSTEM.

  Section 411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)) is 
amended--
          (1) by redesignating paragraphs (4) through (7) as paragraphs 
        (5) through (8), respectively;
          (2) by inserting after paragraph (3) the following:
          ``(4) Information technology infrastructure.--
                  ``(A) In general.--The Secretary shall work with the 
                head of each agency participating in the ITDS and the 
                Interagency Steering Committee to ensure that each 
                agency--
                          ``(i) develops and maintains the necessary 
                        information technology infrastructure to 
                        support the operation of the ITDS and to submit 
                        all data to the ITDS electronically;
                          ``(ii) enters into a memorandum of 
                        understanding, or takes such other action as is 
                        necessary, to provide for the information 
                        sharing between the agency and U.S. Customs and 
                        Border Protection necessary for the operation 
                        and maintenance of the ITDS;
                          ``(iii) not later than June 30, 2016, 
                        identifies and transmits to the Commissioner 
                        responsible for U.S. Customs and Border 
                        Protection the admissibility criteria and data 
                        elements required by the agency to authorize 
                        the release of cargo by U.S. Customs and Border 
                        Protection for incorporation into the 
                        operational functionality of the Automated 
                        Commercial Environment computer system 
                        authorized under section 13031(f)(4) of the 
                        Consolidated Omnibus Budget and Reconciliation 
                        Act of 1985 (19 U.S.C. 58c(f)(4)); and
                          ``(iv) not later than December 31, 2016, 
                        utilizes the ITDS as the primary means of 
                        receiving from users the standard set of data 
                        and other relevant documentation, exclusive of 
                        applications for permits, licenses, or 
                        certifications required for the release of 
                        imported cargo and clearance of cargo for 
                        export.
                  ``(B) Rule of construction.--Nothing in this 
                paragraph shall be construed to require any action to 
                be taken that would compromise an ongoing law 
                enforcement investigation or national security.''; and
          (3) in paragraph (8), as redesignated, by striking ``section 
        9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19 
        U.S.C. 2071 note)'' and inserting ``section 109 of the Trade 
        Facilitation and Trade Enforcement Act of 2015''.

SEC. 108. CONSULTATIONS WITH RESPECT TO MUTUAL RECOGNITION 
                    ARRANGEMENTS.

  (a) Consultations.--The Secretary of Homeland Security, with respect 
to any proposed mutual recognition arrangement or similar agreement 
between the United States and a foreign government providing for mutual 
recognition of supply chain security programs and customs revenue 
functions, shall consult--
          (1) not later than 30 days before initiating negotiations to 
        enter into any such arrangement or similar agreement, with the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives; and
          (2) not later than 30 days before entering into any such 
        arrangement or similar agreement, with the Committee on Finance 
        of the Senate and the Committee on Ways and Means of the House 
        of Representatives.
  (b) Negotiating Objective.--It shall be a negotiating objective of 
the United States in any negotiation for a mutual recognition 
arrangement with a foreign country on partnership programs, such as the 
Customs-Trade Partnership Against Terrorism established under subtitle 
B of title II of the Security and Accountability for Every Port Act of 
2006 (6 U.S.C. 961 et seq.), to seek to ensure the compatibility of the 
partnership programs of that country with the partnership programs of 
U.S. Customs and Border Protection to enhance trade facilitation and 
trade enforcement.

SEC. 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE.

  (a) Establishment.--Not later than the date that is 60 days after the 
date of the enactment of this Act, the Secretary of the Treasury and 
the Secretary of Homeland Security shall jointly establish a Commercial 
Customs Operations Advisory Committee (in this section referred to as 
the ``Advisory Committee'').
  (b) Membership.--
          (1) In general.--The Advisory Committee shall be comprised 
        of--
                  (A) 20 individuals appointed under paragraph (2);
                  (B) the Assistant Secretary for Tax Policy of the 
                Department of the Treasury and the Commissioner, who 
                shall jointly co-chair meetings of the Advisory 
                Committee; and
                  (C) the Assistant Secretary for Policy and the 
                Director of U.S. Immigration and Customs Enforcement of 
                the Department of Homeland Security, who shall serve as 
                deputy co-chairs of meetings of the Advisory Committee.
          (2) Appointment.--
                  (A) In general.--The Secretary of the Treasury and 
                the Secretary of Homeland Security shall jointly 
                appoint 20 individuals from the private sector to the 
                Advisory Committee.
                  (B) Requirements.--In making appointments under 
                subparagraph (A), the Secretary of the Treasury and the 
                Secretary of Homeland Security shall appoint members--
                          (i) to ensure that the membership of the 
                        Advisory Committee is representative of the 
                        individuals and firms affected by the 
                        commercial operations of U.S. Customs and 
                        Border Protection; and
                          (ii) without regard to political affiliation.
                  (C) Terms.--Each individual appointed to the Advisory 
                Committee under this paragraph shall be appointed for a 
                term of not more than 3 years, and may be reappointed 
                to subsequent terms, but may not serve more than 2 
                terms sequentially.
          (3) Transfer of membership.--The Secretary of the Treasury 
        and the Secretary of Homeland Security may transfer members 
        serving on the Advisory Committee on Commercial Operations of 
        the United States Customs Service established under section 
        9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19 
        U.S.C. 2071 note) on the day before the date of the enactment 
        of this Act to the Advisory Committee established under 
        subsection (a).
  (c) Duties.--The Advisory Committee established under subsection (a) 
shall--
          (1) advise the Secretary of the Treasury and the Secretary of 
        Homeland Security on all matters involving the commercial 
        operations of U.S. Customs and Border Protection, including 
        advising with respect to significant changes that are proposed 
        with respect to regulations, policies, or practices of U.S. 
        Customs and Border Protection;
          (2) provide recommendations to the Secretary of the Treasury 
        and the Secretary of Homeland Security on improvements to the 
        commercial operations of U.S. Customs and Border Protection;
          (3) collaborate in developing the agenda for Advisory 
        Committee meetings; and
          (4) perform such other functions relating to the commercial 
        operations of U.S. Customs and Border Protection as prescribed 
        by law or as the Secretary of the Treasury and the Secretary of 
        Homeland Security jointly direct.
  (d) Meetings.--
          (1) In general.--The Advisory Committee shall meet at the 
        call of the Secretary of the Treasury and the Secretary of 
        Homeland Security, or at the call of not less than \2/3\ of the 
        membership of the Advisory Committee. The Advisory Committee 
        shall meet at least 4 times each calendar year.
          (2) Open meetings.--Notwithstanding section 10(a) of the 
        Federal Advisory Committee Act (5 U.S.C. App.), the Advisory 
        Committee meetings shall be open to the public unless the 
        Secretary of the Treasury or the Secretary of Homeland Security 
        determines that the meeting will include matters the disclosure 
        of which would compromise the development of policies, 
        priorities, or negotiating objectives or positions that could 
        impact the commercial operations of U.S. Customs and Border 
        Protection or the operations or investigations of U.S. 
        Immigration and Customs Enforcement.
  (e) Annual Report.--Not later than December 31, 2016, and annually 
thereafter, the Advisory Committee shall submit to the Committee on 
Finance of the Senate and the Committee on Ways and Means of the House 
of Representatives a report that--
          (1) describes the activities of the Advisory Committee during 
        the preceding fiscal year; and
          (2) sets forth any recommendations of the Advisory Committee 
        regarding the commercial operations of U.S. Customs and Border 
        Protection.
  (f) Termination.--Section 14(a)(2) of the Federal Advisory Committee 
Act (5 U.S.C. App.; relating to the termination of advisory committees) 
shall not apply to the Advisory Committee.
  (g) Conforming Amendment.--
          (1) In general.--Effective on the date on which the Advisory 
        Committee is established under subsection (a), section 9503(c) 
        of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 
        2071 note) is repealed.
          (2) Reference.--Any reference in law to the Advisory 
        Committee on Commercial Operations of the United States Customs 
        Service established under section 9503(c) of the Omnibus Budget 
        Reconciliation Act of 1987 (19 U.S.C. 2071 note) made on or 
        after the date on which the Advisory Committee is established 
        under subsection (a), shall be deemed a reference to the 
        Commercial Customs Operations Advisory Committee established 
        under subsection (a).

SEC. 110. CENTERS OF EXCELLENCE AND EXPERTISE.

  (a) In General.--The Commissioner shall, in consultation with the 
Committee on Finance of the Senate, the Committee on Ways and Means of 
the House of Representatives, and the Commercial Customs Operations 
Advisory Committee established by section 109 of this Act, develop and 
implement Centers of Excellence and Expertise throughout U.S. Customs 
and Border Protection that--
          (1) enhance the economic competitiveness of the United States 
        by consistently enforcing the laws and regulations of the 
        United States at all ports of entry of the United States and by 
        facilitating the flow of legitimate trade through increasing 
        industry-based knowledge;
          (2) improve enforcement efforts, including enforcement of 
        priority trade issues described in subparagraph (B)(ii) of 
        section 2(d)(3) of the Act of March 3, 1927 (44 Stat. 1381, 
        chapter 348; 19 U.S.C. 2072(d)), as added by section 111(a) of 
        this Act, in specific industry sectors through the application 
        of targeting information from the Commercial Targeting Division 
        established under subparagraph (A) of such section 2(d)(3) and 
        from other means of verification;
          (3) build upon the expertise of U.S. Customs and Border 
        Protection in particular industry operations, supply chains, 
        and compliance requirements;
          (4) promote the uniform implementation at each port of entry 
        of the United States of policies and regulations relating to 
        imports;
          (5) centralize the trade enforcement and trade facilitation 
        efforts of U.S. Customs and Border Protection;
          (6) formalize an account-based approach to apply, as the 
        Commissioner determines appropriate, to the importation of 
        merchandise into the United States;
          (7) foster partnerships though the expansion of trade 
        programs and other trusted partner programs;
          (8) develop applicable performance measurements to meet 
        internal efficiency and effectiveness goals; and
          (9) whenever feasible, facilitate a more efficient flow of 
        information between Federal agencies.
  (b) Report.--Not later than December 31, 2016, the Commissioner shall 
submit to the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives a report describing--
          (1) the scope, functions, and structure of each Center of 
        Excellence and Expertise developed and implemented under 
        subsection (a);
          (2) the effectiveness of each such Center of Excellence and 
        Expertise in improving enforcement efforts, including 
        enforcement of priority trade issues, and facilitating 
        legitimate trade;
          (3) the quantitative and qualitative benefits of each such 
        Center of Excellence and Expertise to the trade community, 
        including through fostering partnerships through the expansion 
        of trade programs such as the Importer Self Assessment program 
        and other trusted partner programs;
          (4) all applicable performance measurements with respect to 
        each such Center of Excellence and Expertise, including 
        performance measures with respect to meeting internal 
        efficiency and effectiveness goals;
          (5) the performance of each such Center of Excellence and 
        Expertise in increasing the accuracy and completeness of data 
        with respect to international trade and facilitating a more 
        efficient flow of information between Federal agencies; and
          (6) any planned changes in the number, scope, functions or 
        any other aspect of the Centers of Excellence and Expertise 
        developed and implemented under subsection (a).

SEC. 111. COMMERCIAL TARGETING DIVISION AND NATIONAL TARGETING AND 
                    ANALYSIS GROUPS.

  (a) In General.--Section 2(d) of the Act of March 3, 1927 (44 Stat. 
1381, chapter 348; 19 U.S.C. 2072(d)) is amended by adding at the end 
the following:
          ``(3) Commercial targeting division and national targeting 
        and analysis groups.--
                  ``(A) Establishment of commercial targeting 
                division.--
                          ``(i) In general.--The Secretary of Homeland 
                        Security shall establish and maintain within 
                        the Office of International Trade a Commercial 
                        Targeting Division.
                          ``(ii) Composition.--The Commercial Targeting 
                        Division shall be composed of--
                                  ``(I) headquarters personnel led by 
                                an Executive Director, who shall report 
                                to the Assistant Commissioner for 
                                Trade; and
                                  ``(II) individual National Targeting 
                                and Analysis Groups, each led by a 
                                Director who shall report to the 
                                Executive Director of the Commercial 
                                Targeting Division.
                          ``(iii) Duties.--The Commercial Targeting 
                        Division shall be dedicated--
                                  ``(I) to the development and conduct 
                                of commercial risk assessment targeting 
                                with respect to cargo destined for the 
                                United States in accordance with 
                                subparagraph (C); and
                                  ``(II) to issuing Trade Alerts 
                                described in subparagraph (D).
                  ``(B) National targeting and analysis groups.--
                          ``(i) In general.--A National Targeting and 
                        Analysis Group referred to in subparagraph 
                        (A)(ii)(II) shall, at a minimum, be established 
                        for each priority trade issue described in 
                        clause (ii).
                          ``(ii) Priority trade issues.--
                                  ``(I) In general.--The priority trade 
                                issues described in this clause are the 
                                following:
                                          ``(aa) Agriculture programs.
                                          ``(bb) Antidumping and 
                                        countervailing duties.
                                          ``(cc) Import safety.
                                          ``(dd) Intellectual property 
                                        rights.
                                          ``(ee) Revenue.
                                          ``(ff) Textiles and wearing 
                                        apparel.
                                          ``(gg) Trade agreements and 
                                        preference programs.
                                  ``(II) Modification.--The 
                                Commissioner is authorized to establish 
                                new priority trade issues and 
                                eliminate, consolidate, or otherwise 
                                modify the priority trade issues 
                                described in this paragraph if the 
                                Commissioner--
                                          ``(aa) determines it 
                                        necessary and appropriate to do 
                                        so;
                                          ``(bb) submits to the 
                                        Committee on Finance of the 
                                        Senate and the Committee on 
                                        Ways and Means of the House of 
                                        Representatives a summary of 
                                        proposals to consolidate, 
                                        eliminate, or otherwise modify 
                                        existing priority trade issues 
                                        not later than 60 days before 
                                        such changes are to take 
                                        effect; and
                                          ``(cc) submits to the 
                                        Committee on Finance of the 
                                        Senate and the Committee on 
                                        Ways and Means of the House of 
                                        Representatives a summary of 
                                        proposals to establish new 
                                        priority trade issues not later 
                                        than 30 days after such changes 
                                        are to take effect.
                          ``(iii) Duties.--The duties of each National 
                        Targeting and Analysis Group shall include--
                                  ``(I) directing the trade enforcement 
                                and compliance assessment activities of 
                                U.S. Customs and Border Protection that 
                                relate to the Group's priority trade 
                                issue;
                                  ``(II) facilitating, promoting, and 
                                coordinating cooperation and the 
                                exchange of information between U.S. 
                                Customs and Border Protection, U.S. 
                                Immigration and Customs Enforcement, 
                                and other relevant Federal departments 
                                and agencies regarding the Group's 
                                priority trade issue; and
                                  ``(III) serving as the primary 
                                liaison between U.S. Customs and Border 
                                Protection and the public regarding 
                                United States Government activities 
                                regarding the Group's priority trade 
                                issue, including--
                                          ``(aa) providing for receipt 
                                        and transmission to the 
                                        appropriate U.S. Customs and 
                                        Border Protection office of 
                                        allegations from interested 
                                        parties in the private sector 
                                        of violations of customs and 
                                        trade laws of the United States 
                                        of merchandise relating to the 
                                        priority trade issue;
                                          ``(bb) obtaining information 
                                        from the appropriate U.S. 
                                        Customs and Border Protection 
                                        office on the status of any 
                                        activities resulting from the 
                                        submission of any such 
                                        allegation, including any 
                                        decision not to pursue the 
                                        allegation, and providing any 
                                        such information to each 
                                        interested party in the private 
                                        sector that submitted the 
                                        allegation every 90 days after 
                                        the allegation was received by 
                                        U.S. Customs and Border 
                                        Protection unless providing 
                                        such information would 
                                        compromise an ongoing law 
                                        enforcement investigation; and
                                          ``(cc) notifying on a timely 
                                        basis each interested party in 
                                        the private sector that 
                                        submitted such allegation of 
                                        any civil or criminal actions 
                                        taken by U.S. Customs and 
                                        Border Protection or other 
                                        Federal department or agency 
                                        resulting from the allegation.
                  ``(C) Commercial risk assessment targeting.--In 
                carrying out its duties with respect to commercial risk 
                assessment targeting, the Commercial Targeting Division 
                shall--
                          ``(i) establish targeted risk assessment 
                        methodologies and standards--
                                  ``(I) for evaluating the risk that 
                                cargo destined for the United States 
                                may violate the customs and trade laws 
                                of the United States, particularly 
                                those laws applicable to merchandise 
                                subject to the priority trade issues 
                                described in subparagraph (B)(ii); and
                                  ``(II) for issuing, as appropriate, 
                                Trade Alerts described in subparagraph 
                                (D); and
                          ``(ii) to the extent practicable and 
                        otherwise authorized by law, use, to administer 
                        the methodologies and standards established 
                        under clause (i) --
                                  ``(I) publicly available information;
                                  ``(II) information available from the 
                                Automated Commercial System, the 
                                Automated Commercial Environment 
                                computer system, the Automated 
                                Targeting System, the Automated Export 
                                System, the International Trade Data 
                                System, the TECS (formerly known as the 
                                `Treasury Enforcement Communications 
                                System'), the case management system of 
                                U.S. Immigration and Customs 
                                Enforcement, and any successor systems; 
                                and
                                  ``(III) information made available to 
                                the Commercial Targeting Division, 
                                including information provided by 
                                private sector entities.
                  ``(D) Trade alerts.--
                          ``(i) Issuance.--Based upon the application 
                        of the targeted risk assessment methodologies 
                        and standards established under subparagraph 
                        (C), the Executive Director of the Commercial 
                        Targeting Division and the Directors of the 
                        National Targeting and Analysis Groups may 
                        issue Trade Alerts to directors of United 
                        States ports of entry directing further 
                        inspection, or physical examination or testing, 
                        of specific merchandise to ensure compliance 
                        with all applicable customs and trade laws and 
                        regulations administered by U.S. Customs and 
                        Border Protection.
                          ``(ii) Determinations not to implement trade 
                        alerts.--The director of a United States port 
                        of entry may determine not to conduct further 
                        inspections, or physical examination or 
                        testing, pursuant to a Trade Alert issued under 
                        clause (i) if--
                                  ``(I) the director finds that such a 
                                determination is justified by security 
                                interests; and
                                  ``(II) notifies the Assistant 
                                Commissioner of the Office of Field 
                                Operations and the Assistant 
                                Commissioner of International Trade of 
                                U.S. Customs and Border Protection of 
                                the determination and the reasons for 
                                the determination not later than 48 
                                hours after making the determination.
                          ``(iii) Summary of determinations not to 
                        implement.--The Assistant Commissioner of the 
                        Office of Field Operations of U.S. Customs and 
                        Border Protection shall--
                                  ``(I) compile an annual public 
                                summary of all determinations by 
                                directors of United States ports of 
                                entry under clause (ii) and the reasons 
                                for those determinations;
                                  ``(II) conduct an evaluation of the 
                                utilization of Trade Alerts issued 
                                under clause (i); and
                                  ``(III) submit the summary to the 
                                Committee on Finance of the Senate and 
                                the Committee on Ways and Means of the 
                                House of Representatives not later than 
                                December 31 of each year.
                          ``(iv) Inspection defined.--In this 
                        subparagraph, the term `inspection' means the 
                        comprehensive evaluation process used by U.S. 
                        Customs and Border Protection, other than 
                        physical examination or testing, to permit the 
                        entry of merchandise into the United States, or 
                        the clearance of merchandise for transportation 
                        in bond through the United States, for purposes 
                        of--
                                  ``(I) assessing duties;
                                  ``(II) identifying restricted or 
                                prohibited items; and
                                  ``(III) ensuring compliance with all 
                                applicable customs and trade laws and 
                                regulations administered by U.S. 
                                Customs and Border Protection.''.
  (b) Use of Trade Data for Commercial Enforcement Purposes.--Section 
343(a)(3)(F) of the Trade Act of 2002 (19 U.S.C. 2071 note) is amended 
to read as follows:
                  ``(F) The information collected pursuant to the 
                regulations shall be used exclusively for ensuring 
                cargo safety and security, preventing smuggling, and 
                commercial risk assessment targeting, and shall not be 
                used for any commercial enforcement purposes, including 
                for determining merchandise entry. Notwithstanding the 
                preceding sentence, nothing in this section shall be 
                treated as amending, repealing, or otherwise modifying 
                title IV of the Tariff Act of 1930 or regulations 
                prescribed thereunder.''.

SEC. 112. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND ENFORCEMENT 
                    MEASURES.

  (a) In General.--Not later the March 31, 2016, and not later than 
March 31 of each second year thereafter, the Inspector General of the 
Department of the Treasury shall submit to the Committee on Finance of 
the Senate and the Committee on Ways and Means of the House of 
Representatives a report assessing, with respect to the period covered 
by the report, as specified in subsection (b), the following:
          (1) The effectiveness of the measures taken by U.S. Customs 
        and Border Protection with respect to protection of revenue, 
        including--
                  (A) the collection of countervailing duties assessed 
                under subtitle A of title VII of the Tariff Act of 1930 
                (19 U.S.C. 1671 et seq.) and antidumping duties 
                assessed under subtitle B of title VII of the Tariff 
                Act of 1930 (19 U.S.C. 1673 et seq.);
                  (B) the assessment, collection, and mitigation of 
                commercial fines and penalties;
                  (C) the use of bonds, including continuous and single 
                transaction bonds, to secure that revenue; and
                  (D) the adequacy of the policies of U.S. Customs and 
                Border Protection with respect to the monitoring and 
                tracking of merchandise transported in bond and 
                collecting duties, as appropriate.
          (2) The effectiveness of actions taken by U.S. Customs and 
        Border Protection to measure accountability and performance 
        with respect to protection of revenue.
          (3) The number and outcome of investigations instituted by 
        U.S. Customs and Border Protection with respect to the 
        underpayment of duties.
          (4) The effectiveness of training with respect to the 
        collection of duties provided for personnel of U.S. Customs and 
        Border Protection.
  (b) Period Covered by Report.--Each report required by subsection (a) 
shall cover the period of 2 fiscal years ending on September 30 of the 
calendar year preceding the submission of the report.

SEC. 113. REPORT ON SECURITY AND REVENUE MEASURES WITH RESPECT TO 
                    MERCHANDISE TRANSPORTED IN BOND.

  (a) In General.--Not later than December 31 of 2016, 2017, and 2018, 
the Secretary of Homeland Security and the Secretary of the Treasury 
shall jointly submit to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives a report on 
efforts undertaken by U.S. Customs and Border Protection to ensure the 
secure transportation of merchandise in bond through the United States 
and the collection of revenue owed upon the entry of such merchandise 
into the United States for consumption.
  (b) Elements.--Each report required by subsection (a) shall include, 
for the fiscal year preceding the submission of the report, information 
on--
          (1) the overall number of entries of merchandise for 
        transportation in bond through the United States;
          (2) the ports at which merchandise arrives in the United 
        States for transportation in bond and at which records of the 
        arrival of such merchandise are generated;
          (3) the average time taken to reconcile such records with the 
        records at the final destination of the merchandise in the 
        United States to demonstrate that the merchandise reaches its 
        final destination or is re-exported;
          (4) the average time taken to transport merchandise in bond 
        from the port at which the merchandise arrives in the United 
        States to its final destination in the United States;
          (5) the total amount of duties, taxes, and fees owed with 
        respect to shipments of merchandise transported in bond and the 
        total amount of such duties, taxes, and fees paid;
          (6) the total number of notifications by carriers of 
        merchandise being transported in bond that the destination of 
        the merchandise has changed; and
          (7) the number of entries that remain unreconciled.

SEC. 114. IMPORTER OF RECORD PROGRAM.

  (a) Establishment.--Not later than the date that is 180 days after 
the date of the enactment of this Act, the Secretary of Homeland 
Security shall establish an importer of record program to assign and 
maintain importer of record numbers.
  (b) Requirements.--The Secretary shall ensure that, as part of the 
importer of record program, U.S. Customs and Border Protection--
          (1) develops criteria that importers must meet in order to 
        obtain an importer of record number, including--
                  (A) criteria to ensure sufficient information is 
                collected to allow U.S. Customs and Border Protection 
                to verify the existence of the importer requesting the 
                importer of record number;
                  (B) criteria to ensure sufficient information is 
                collected to allow U.S. Customs and Border Protection 
                to identify linkages or other affiliations between 
                importers that are requesting or have been assigned 
                importer of record numbers; and
                  (C) criteria to ensure sufficient information is 
                collected to allow U.S. Customs and Border Protection 
                to identify changes in address and corporate structure 
                of importers;
          (2) provides a process by which importers are assigned 
        importer of record numbers;
          (3) maintains a centralized database of importer of record 
        numbers, including a history of importer of record numbers 
        associated with each importer, and the information described in 
        subparagraphs (A), (B), and (C) of paragraph (1);
          (4) evaluates and maintains the accuracy of the database if 
        such information changes; and
          (5) takes measures to ensure that duplicate importer of 
        record numbers are not issued.
  (c) Report.--Not later than one year after the date of the enactment 
of this Act, the Secretary shall submit to the Committee on Finance of 
the Senate and the Committee on Ways and Means of the House of 
Representatives a report on the importer of record program established 
under subsection (a).
  (d) Number Defined.--In this subsection, the term ``number'', with 
respect to an importer of record, means a filing identification number 
described in section 24.5 of title 19, Code of Federal Regulations (or 
any corresponding similar regulation) that fully supports the 
requirements of subsection (b) with respect to the collection and 
maintenance of information.

SEC. 115. ESTABLISHMENT OF NEW IMPORTER PROGRAM.

  (a) In General.--Not later than the date that is 180 days after the 
date of the enactment of this Act, the Commissioner shall establish a 
new importer program that directs U.S. Customs and Border Protection to 
adjust bond amounts for new importers based on the level of risk 
assessed by U.S. Customs and Border Protection for protection of 
revenue of the Federal Government.
  (b) Requirements.--The Commissioner shall ensure that, as part of the 
new importer program established under subsection (a), U.S. Customs and 
Border Protection--
          (1) develops risk-based criteria for determining which 
        importers are considered to be new importers for the purposes 
        of this subsection;
          (2) develops risk assessment guidelines for new importers to 
        determine if and to what extent--
                  (A) to adjust bond amounts of imported products of 
                new importers; and
                  (B) to increase screening of imported products of new 
                importers;
          (3) develops procedures to ensure increased oversight of 
        imported products of new importers relating to the enforcement 
        of the priority trade issues described in paragraph (3)(B)(ii) 
        of section 2(d) of the Act of March 3, 1927 (44 Stat. 1381, 
        chapter 348; 19 U.S.C. 2072(d)), as added by section 111(a) of 
        this Act;
          (4) develops procedures to ensure increased oversight of 
        imported products of new importers by Centers of Excellence and 
        Expertise established under section 110 of this Act; and
          (5) establishes a centralized database of new importers to 
        ensure accuracy of information that is required to be provided 
        by new importers to U.S. Customs and Border Protection.

SEC. 116. CUSTOMS BROKER IDENTIFICATION OF IMPORTERS.

  (a) In General.--Section 641 of the Tariff Act of 1930 (19 U.S.C. 
1641) is amended by adding at the end the following:
  ``(i) Identification of Importers.--
          ``(1) In general.--The Secretary shall prescribe regulations 
        setting forth the minimum standards for customs brokers and 
        importers, including nonresident importers, regarding the 
        identity of the importer that shall apply in connection with 
        the importation of merchandise into the United States.
          ``(2) Minimum requirements.--The regulations shall, at a 
        minimum, require customs brokers to implement, and importers 
        (after being given adequate notice) to comply with, reasonable 
        procedures for--
                  ``(A) collecting the identity of importers, including 
                nonresident importers, seeking to import merchandise 
                into the United States to the extent reasonable and 
                practicable; and
                  ``(B) maintaining records of the information used to 
                substantiate a person's identity, including name, 
                address, and other identifying information.
          ``(3) Penalties.--Any customs broker who fails to collect 
        information required under the regulations prescribed under 
        this subsection shall be liable to the United States, at the 
        discretion of the Secretary, for a monetary penalty not to 
        exceed $10,000 for each violation of those regulations and 
        subject to revocation or suspension of a license or permit of 
        the customs broker pursuant to the procedures set forth in 
        subsection (d).
          ``(4) Definitions.--In this subsection--
                  ``(A) the term `importer' means one of the parties 
                qualifying as an importer of record under section 
                484(a)(2)(B); and
                  ``(B) the term `nonresident importer' means an 
                importer who is--
                          ``(i) an individual who is not a citizen of 
                        the United States or an alien lawfully admitted 
                        for permanent residence in the United States; 
                        or
                          ``(ii) a partnership, corporation, or other 
                        commercial entity that is not organized under 
                        the laws of a jurisdiction within the customs 
                        territory of the United States (as such term is 
                        defined in General Note 2 of the Harmonized 
                        Tariff Schedule of the United States) or in the 
                        Virgin Islands of the United States.''.
  (b) Study and Report Required.--Not later than 180 days after the 
date of enactment of this Act, the Commissioner shall submit to 
Congress a report containing recommendations for--
          (1) determining the most timely and effective way to require 
        foreign nationals to provide customs brokers with appropriate 
        and accurate information, comparable to that which is required 
        of United States nationals, concerning the identity, address, 
        and other related information relating to such foreign 
        nationals necessary to enable customs brokers to comply with 
        the requirements of section 641(i) of the Tariff Act of 1930 
        (as added by subsection (a)); and
          (2) establishing a system for customs brokers to review 
        information maintained by relevant Federal agencies for 
        purposes of verifying the identities of importers, including 
        nonresident importers, seeking to import merchandise into the 
        United States.

SEC. 117. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.

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

``SEC. 484C. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.

  ``(a) In General.--Except as provided in subsection (c), if an 
importer of record under section 484 of this Act is not a resident of 
the United States, the Commissioner of U.S. Customs and Border 
Protection shall require the non-resident importer to designate a 
resident agent in the United States subject to the requirements 
described in subsection (b).
  ``(b) Requirements.--The requirements described in this subsection 
are the following:
          ``(1) The resident agent shall be authorized to accept 
        service of process against the non-resident importer in 
        connection with the importation of merchandise.
          ``(2) The Commissioner of U.S. Customs and Border Protection 
        shall require the non-resident importer to establish a power of 
        attorney with the resident agent in connection with the 
        importation of merchandise.
  ``(c) Non-applicability.--The requirements of this section shall not 
apply with respect to a non-resident importer who is a validated Tier 2 
or Tier 3 participant in the Customs-Trade Partnership Against 
Terrorism program established under subtitle B of title II of the SAFE 
Port Act (6 U.S.C. 961 et seq.).
  ``(d) Penalties.--
          ``(1) In general.--It shall be unlawful for any person to 
        import into the United States any merchandise in violation of 
        this section.
          ``(2) Civil penalties.--Any person who violates paragraph (1) 
        shall be liable for a civil penalty of $50,000 for each such 
        violation.
          ``(3) Other penalties.--In addition to the penalties 
        specified in paragraph (2), any violation of this section that 
        violates any other customs and trade laws of the United States 
        shall be subject to any applicable civil and criminal penalty, 
        including seizure and forfeiture, that may be imposed under 
        such customs or trade law or title 18, United States Code, with 
        respect to the importation of merchandise.
          ``(4) Definition.--In this subsection, the term `customs and 
        trade laws of the United States' has the meaning given such 
        term in section 2 of the Customs Trade Facilitation and 
        Enforcement Act of 2015.''.
  (b) Effective Date.--Section 484c of the Tariff Act of 1930, as added 
by subsection (a), takes effect on the date of the enactment of this 
Act and applies with respect to the importation of merchandise of an 
importer of record under section 484 of the Tariff Act of 1930 who is 
not resident of the United States on or after the date that is 180 days 
after such date of enactment.

                   TITLE II--IMPORT HEALTH AND SAFETY

SEC. 201. INTERAGENCY IMPORT SAFETY WORKING GROUP.

  (a) Establishment.--There is established an interagency Import Safety 
Working Group.
  (b) Membership.--The interagency Import Safety Working Group shall 
consist of the following officials or their designees:
          (1) The Secretary of Homeland Security, who shall serve as 
        the Chair.
          (2) The Secretary of Health and Human Services, who shall 
        serve as the Vice Chair.
          (3) The Secretary of the Treasury.
          (4) The Secretary of Commerce.
          (5) The Secretary of Agriculture.
          (6) The United States Trade Representative.
          (7) The Director of the Office of Management and Budget.
          (8) The Commissioner of Food and Drugs.
          (9) The Commissioner responsible for U.S. Customs and Border 
        Protection.
          (10) The Chairman of the Consumer Product Safety Commission.
          (11) The Director of U.S. Immigration and Customs 
        Enforcement.
          (12) The head of any other Federal agency designated by the 
        President to participate in the interagency Import Safety 
        Working Group, as appropriate.
  (c) Duties.--The duties of the interagency Import Safety Working 
Group shall include--
          (1) consulting on the development of the joint import safety 
        rapid response plan required by section 202 of this Act;
          (2) periodically evaluating the adequacy of the plans, 
        practices, and resources of the Federal Government dedicated to 
        ensuring the safety of merchandise imported in the United 
        States and the expeditious entry of such merchandise, 
        including--
                  (A) minimizing the duplication of efforts among 
                agencies the heads of which are members of the 
                interagency Import Safety Working Group and ensuring 
                the compatibility of the policies and regulations of 
                those agencies; and
                  (B) recommending additional administrative actions, 
                as appropriate, designed to ensure the safety of 
                merchandise imported into the United States and the 
                expeditious entry of such merchandise and considering 
                the impact of those actions on private sector entities;
          (3) reviewing the engagement and cooperation of foreign 
        governments and foreign manufacturers in facilitating the 
        inspection and certification, as appropriate, of such 
        merchandise to be imported into the United States and the 
        facilities producing such merchandise to ensure the safety of 
        the merchandise and the expeditious entry of the merchandise 
        into the United States;
          (4) identifying best practices, in consultation with private 
        sector entities as appropriate, to assist United States 
        importers in taking all appropriate steps to ensure the safety 
        of merchandise imported into the United States, including with 
        respect to--
                  (A) the inspection of manufacturing facilities in 
                foreign countries;
                  (B) the inspection of merchandise destined for the 
                United States before exportation from a foreign country 
                or before distribution in the United States; and
                  (C) the protection of the international supply chain 
                (as defined in section 2 of the Security and 
                Accountability For Every Port Act of 2006 (6 U.S.C. 
                901));
          (5) identifying best practices to assist Federal, State, and 
        local governments and agencies, and port authorities, to 
        improve communication and coordination among such agencies and 
        authorities with respect to ensuring the safety of merchandise 
        imported into the United States and the expeditious entry of 
        such merchandise; and
          (6) otherwise identifying appropriate steps to increase the 
        accountability of United States importers and the engagement of 
        foreign government agencies with respect to ensuring the safety 
        of merchandise imported into the United States and the 
        expeditious entry of such merchandise.

SEC. 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN.

  (a) In General.--Not later than December 31, 2016, the Secretary of 
Homeland Security, in consultation with the interagency Import Safety 
Working Group, shall develop a plan (to be known as the ``joint import 
safety rapid response plan'') that sets forth protocols and defines 
practices for U.S. Customs and Border Protection to use--
          (1) in taking action in response to, and coordinating Federal 
        responses to, an incident in which cargo destined for or 
        merchandise entering the United States has been identified as 
        posing a threat to the health or safety of consumers in the 
        United States; and
          (2) in recovering from or mitigating the effects of actions 
        and responses to an incident described in paragraph (1).
  (b) Contents.--The joint import safety rapid response plan shall 
address--
          (1) the statutory and regulatory authorities and 
        responsibilities of U.S. Customs and Border Protection and 
        other Federal agencies in responding to an incident described 
        in subsection (a)(1);
          (2) the protocols and practices to be used by U.S. Customs 
        and Border Protection when taking action in response to, and 
        coordinating Federal responses to, such an incident;
          (3) the measures to be taken by U.S. Customs and Border 
        Protection and other Federal agencies in recovering from or 
        mitigating the effects of actions taken in response to such an 
        incident after the incident to ensure the resumption of the 
        entry of merchandise into the United States; and
          (4) exercises that U.S. Customs and Border Protection may 
        conduct in conjunction with Federal, State, and local agencies, 
        and private sector entities, to simulate responses to such an 
        incident.
  (c) Updates of Plan.--The Secretary of Homeland Security shall review 
and update the joint import safety rapid response plan, as appropriate, 
after conducting exercises under subsection (d).
  (d) Import Health and Safety Exercises.--
          (1) In general.--The Secretary of Homeland Security and the 
        Commissioner shall periodically engage in the exercises 
        referred to in subsection (b)(4), in conjunction with Federal, 
        State, and local agencies and private sector entities, as 
        appropriate, to test and evaluate the protocols and practices 
        identified in the joint import safety rapid response plan at 
        United States ports of entry.
          (2) Requirements for exercises.--In conducting exercises 
        under paragraph (1), the Secretary and the Commissioner shall--
                  (A) make allowance for the resources, needs, and 
                constraints of United States ports of entry of 
                different sizes in representative geographic locations 
                across the United States;
                  (B) base evaluations on current risk assessments of 
                merchandise entering the United States at 
                representative United States ports of entry located 
                across the United States;
                  (C) ensure that such exercises are conducted in a 
                manner consistent with the National Incident Management 
                System, the National Response Plan, the National 
                Infrastructure Protection Plan, the National 
                Preparedness Guidelines, the Maritime Transportation 
                System Security Plan, and other such national 
                initiatives of the Department of Homeland Security, as 
                appropriate; and
                  (D) develop metrics with respect to the resumption of 
                the entry of merchandise into the United States after 
                an incident described in subsection (a)(1).
          (3) Requirements for testing and evaluation.--The Secretary 
        and the Commissioner shall ensure that the testing and 
        evaluation carried out in conducting exercises under paragraph 
        (1)--
                  (A) are performed using clear and objective 
                performance measures; and
                  (B) result in the identification of specific 
                recommendations or best practices for responding to an 
                incident described in subsection (a)(1).
          (4) Dissemination of recommendations and best practices.--The 
        Secretary and the Commissioner shall--
                  (A) share the recommendations or best practices 
                identified under paragraph (3)(B) among the members of 
                the interagency Import Safety Working Group and with, 
                as appropriate--
                          (i) State, local, and tribal governments;
                          (ii) foreign governments; and
                          (iii) private sector entities; and
                  (B) use such recommendations and best practices to 
                update the joint import safety rapid response plan.

SEC. 203. TRAINING.

  The Commissioner shall ensure that personnel of U.S. Customs and 
Border Protection assigned to United States ports of entry are trained 
to effectively administer the provisions of this title and to otherwise 
assist in ensuring the safety of merchandise imported into the United 
States and the expeditious entry of such merchandise.

  TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

SEC. 301. DEFINITION OF INTELLECTUAL PROPERTY RIGHTS.

  In this title, the term ``intellectual property rights'' refers to 
copyrights, trademarks, and other forms of intellectual property rights 
that are enforced by U.S. Customs and Border Protection or U.S. 
Immigration and Customs Enforcement.

SEC. 302. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT.

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

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

  ``(a) In General.--Subject to subsections (c) and (d), if the 
Commissioner responsible for U.S. Customs and Border Protection 
suspects that merchandise is being imported into the United States in 
violation of section 526 of this Act or section 602, 1201(a)(2), or 
1201(b)(1) of title 17, United States Code, and determines that the 
examination or testing of the merchandise by a person described in 
subsection (b) would assist the Commissioner in determining if the 
merchandise is being imported in violation of that section, the 
Commissioner, to permit the person to conduct the examination and 
testing--
          ``(1) shall provide to the person information that appears on 
        the merchandise and its packaging and labels, including 
        unredacted images of the merchandise and its packaging and 
        labels; and
          ``(2) may, subject to any applicable bonding requirements, 
        provide to the person unredacted samples of the merchandise.
  ``(b) Person Described.--A person described in this subsection is--
          ``(1) in the case of merchandise suspected of being imported 
        in violation of section 526, the owner of the trademark 
        suspected of being copied or simulated by the merchandise;
          ``(2) in the case of merchandise suspected of being imported 
        in violation of section 602 of title 17, United States Code, 
        the owner of the copyright suspected of being infringed by the 
        merchandise;
          ``(3) in the case of merchandise suspected of being primarily 
        designed or produced for the purpose of circumventing a 
        technological measure that effectively controls access to a 
        work protected under that title, and being imported in 
        violation of section 1201(a)(2) of that title, the owner of a 
        copyright in the work; and
          ``(4) in the case of merchandise suspected of being primarily 
        designed or produced for the purpose of circumventing 
        protection afforded by a technological measure that effectively 
        protects a right of an owner of a copyright in a work or a 
        portion of a work, and being imported in violation of section 
        1201(b)(1) of that title, the owner of the copyright.
  ``(c) Limitation.--Subsection (a) applies only with respect to 
merchandise suspected of infringing a trademark or copyright that is 
recorded with U.S. Customs and Border Protection.
  ``(d) Exception.--The Commissioner may not provide under subsection 
(a) information, photographs, or samples to a person described in 
subsection (b) if providing such information, photographs, or samples 
would compromise an ongoing law enforcement investigation or national 
security.''.
  (b) Termination of Previous Authority.--Notwithstanding paragraph (2) 
of section 818(g) of the National Defense Authorization Act for Fiscal 
Year 2012 (Public Law 112-81; 125 Stat. 1496; 10 U.S.C. 2302 note), 
paragraph (1) of that section shall have no force or effect on or after 
the date of the enactment of this Act.

SEC. 303. SEIZURE OF CIRCUMVENTION DEVICES.

  (a) In General.--Section 596(c)(2) of the Tariff Act of 1930 (19 
U.S.C. 1595a(c)(2)) is amended--
          (1) in subparagraph (E), by striking ``or'';
          (2) in subparagraph (F), by striking the period and inserting 
        ``; or''; and
          (3) by adding at the end the following:
                  ``(G) U.S. Customs and Border Protection determines 
                it is a technology, product, service, device, 
                component, or part thereof the importation of which is 
                prohibited under subsection (a)(2) or (b)(1) of section 
                1201 of title 17, United States Code.''.
  (b) Notification of Persons Injured.--
          (1) In general.--Not later than the date that is 30 business 
        days after seizing merchandise pursuant to subparagraph (G) of 
        section 596(c)(2) of the Tariff Act of 1930, as added by 
        subsection (a), the Commissioner shall provide to any person 
        identified under paragraph (2) information regarding the 
        merchandise seized that is equivalent to information provided 
        to copyright owners under regulations of U.S. Customs and 
        Border Protection for merchandise seized for violation of the 
        copyright laws.
          (2) Persons to be provided information.--Any person injured 
        by the violation of (a)(2) or (b)(1) of section 1201 of title 
        17, United States Code, that resulted in the seizure of the 
        merchandise shall be provided information under paragraph (1), 
        if that person is included on a list maintained by the 
        Commissioner that is revised annually through publication in 
        the Federal Register.
          (3) Regulations.--Not later than one year after the date of 
        the enactment of this Act, the Secretary of the Treasury shall 
        prescribe regulations establishing procedures that implement 
        this subsection.

SEC. 304. ENFORCEMENT BY U.S. CUSTOMS AND BORDER PROTECTION OF WORKS 
                    FOR WHICH COPYRIGHT REGISTRATION IS PENDING.

  Not later than the date that is 180 days after the date of the 
enactment of this Act, the Secretary of Homeland Security shall 
authorize a process pursuant to which the Commissioner shall enforce a 
copyright for which the owner has submitted an application for 
registration under title 17, United States Code, with the United States 
Copyright Office, to the same extent and in the same manner as if the 
copyright were registered with the Copyright Office, including by 
sharing information, images, and samples of merchandise suspected of 
infringing the copyright under section 628A of the Tariff Act of 1930, 
as added by section 302.

SEC. 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS COORDINATION CENTER.

  (a) Establishment.--The Secretary of Homeland Security shall--
          (1) establish within U.S. Immigration and Customs Enforcement 
        a National Intellectual Property Rights Coordination Center; 
        and
          (2) appoint an Assistant Director to head the National 
        Intellectual Property Rights Coordination Center.
  (b) Duties.--The Assistant Director of the National Intellectual 
Property Rights Coordination Center shall--
          (1) coordinate the investigation of sources of merchandise 
        that infringe intellectual property rights to identify 
        organizations and individuals that produce, smuggle, or 
        distribute such merchandise;
          (2) conduct and coordinate training with other domestic and 
        international law enforcement agencies on investigative best 
        practices--
                  (A) to develop and expand the capability of such 
                agencies to enforce intellectual property rights; and
                  (B) to develop metrics to assess whether the training 
                improved enforcement of intellectual property rights;
          (3) coordinate, with U.S. Customs and Border Protection, 
        activities conducted by the United States to prevent the 
        importation or exportation of merchandise that infringes 
        intellectual property rights;
          (4) support the international interdiction of merchandise 
        destined for the United States that infringes intellectual 
        property rights;
          (5) collect and integrate information regarding infringement 
        of intellectual property rights from domestic and international 
        law enforcement agencies and other non-Federal sources;
          (6) develop a means to receive and organize information 
        regarding infringement of intellectual property rights from 
        such agencies and other sources;
          (7) disseminate information regarding infringement of 
        intellectual property rights to other Federal agencies, as 
        appropriate;
          (8) develop and implement risk-based alert systems, in 
        coordination with U.S. Customs and Border Protection, to 
        improve the targeting of persons that repeatedly infringe 
        intellectual property rights;
          (9) coordinate with the offices of United States attorneys in 
        order to develop expertise in, and assist with the 
        investigation and prosecution of, crimes relating to the 
        infringement of intellectual property rights; and
          (10) carry out such other duties as the Secretary of Homeland 
        Security may assign.
  (c) Coordination With Other Agencies.--In carrying out the duties 
described in subsection (b), the Assistant Director of the National 
Intellectual Property Rights Coordination Center shall coordinate 
with--
          (1) U.S. Customs and Border Protection;
          (2) the Food and Drug Administration;
          (3) the Department of Justice;
          (4) the Department of Commerce, including the United States 
        Patent and Trademark Office;
          (5) the United States Postal Inspection Service;
          (6) the Office of the United States Trade Representative;
          (7) any Federal, State, local, or international law 
        enforcement agencies that the Director of U.S. Immigration and 
        Customs Enforcement considers appropriate; and
          (8) any other entities that the Director considers 
        appropriate.
  (d) Private Sector Outreach.--
          (1) In general.--The Assistant Director of the National 
        Intellectual Property Rights Coordination Center shall work 
        with U.S. Customs and Border Protection and other Federal 
        agencies to conduct outreach to private sector entities in 
        order to determine trends in and methods of infringing 
        intellectual property rights.
          (2) Information sharing.--The Assistant Director shall share 
        information and best practices with respect to the enforcement 
        of intellectual property rights with private sector entities, 
        as appropriate, in order to coordinate public and private 
        sector efforts to combat the infringement of intellectual 
        property rights.

SEC. 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT OF INTELLECTUAL 
                    PROPERTY RIGHTS.

  The Commissioner and the Director of U.S. Immigration and Customs 
Enforcement shall include in the joint strategic plan required by 
section 105 of this Act--
          (1) a description of the efforts of the Department of 
        Homeland Security to enforce intellectual property rights;
          (2) a list of the 10 United States ports of entry at which 
        U.S. Customs and Border Protection has seized the most 
        merchandise, both by volume and by value, that infringes 
        intellectual property rights during the most recent 2-year 
        period for which data are available; and
          (3) a recommendation for the optimal allocation of personnel, 
        resources, and technology to ensure that U.S. Customs and 
        Border Protection and U.S. Immigration and Customs Enforcement 
        are adequately enforcing intellectual property rights.

SEC. 307. PERSONNEL DEDICATED TO THE ENFORCEMENT OF INTELLECTUAL 
                    PROPERTY RIGHTS.

  (a) Personnel of U.S. Customs and Border Protection.--The 
Commissioner and the Director of U.S. Immigration and Customs 
Enforcement shall ensure that sufficient personnel are assigned 
throughout U.S. Customs and Border Protection and U.S. Immigration and 
Customs Enforcement, respectively, who have responsibility for 
preventing the importation into the United States of merchandise that 
infringes intellectual property rights.
  (b) Staffing of National Intellectual Property Rights Coordination 
Center.--The Commissioner shall--
          (1) assign not fewer than 3 full-time employees of U.S. 
        Customs and Border Protection to the National Intellectual 
        Property Rights Coordination Center established under section 
        305 of this Act; and
          (2) ensure that sufficient personnel are assigned to United 
        States ports of entry to carry out the directives of the 
        Center.

SEC. 308. TRAINING WITH RESPECT TO THE ENFORCEMENT OF INTELLECTUAL 
                    PROPERTY RIGHTS.

  (a) Training.--The Commissioner shall ensure that officers of U.S. 
Customs and Border Protection are trained to effectively detect and 
identify merchandise destined for the United States that infringes 
intellectual property rights, including through the use of technologies 
identified under subsection (c).
  (b) Consultation With Private Sector.--The Commissioner shall consult 
with private sector entities to better identify opportunities for 
collaboration between U.S. Customs and Border Protection and such 
entities with respect to training for officers of U.S. Customs and 
Border Protection in enforcing intellectual property rights.
  (c) Identification of New Technologies.--In consultation with private 
sector entities, the Commissioner shall identify--
          (1) technologies with the cost-effective capability to detect 
        and identify merchandise at United States ports of entry that 
        infringes intellectual property rights; and
          (2) cost-effective programs for training officers of U.S. 
        Customs and Border Protection to use such technologies.
  (d) Donations of Technology.--Not later than the date that is 180 
days after the date of the enactment of this Act, the Commissioner 
shall prescribe regulations to enable U.S. Customs and Border 
Protection to receive donations of hardware, software, equipment, and 
similar technologies, and to accept training and other support 
services, from private sector entities, for the purpose of enforcing 
intellectual property rights.

SEC. 309. INTERNATIONAL COOPERATION AND INFORMATION SHARING.

  (a) Cooperation.--The Secretary of Homeland Security shall coordinate 
with the competent law enforcement and customs authorities of foreign 
countries, including by sharing information relevant to enforcement 
actions, to enhance the efforts of the United States and such 
authorities to enforce intellectual property rights.
  (b) Technical Assistance.--The Secretary of Homeland Security shall 
provide technical assistance to competent law enforcement and customs 
authorities of foreign countries to enhance the ability of such 
authorities to enforce intellectual property rights.
  (c) Interagency Collaboration.--The Commissioner and the Director of 
U.S. Immigration and Customs Enforcement shall lead interagency efforts 
to collaborate with law enforcement and customs authorities of foreign 
countries to enforce intellectual property rights.

SEC. 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT.

  Not later than June 30, 2016, and annually thereafter, the 
Commissioner and the Director of U.S. Immigration and Customs 
Enforcement shall jointly submit to the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House of 
Representatives a report that contains the following:
          (1) With respect to the enforcement of intellectual property 
        rights, the following:
                  (A) The number of referrals from U.S. Customs and 
                Border Protection to U.S. Immigration and Customs 
                Enforcement relating to infringement of intellectual 
                property rights during the preceding year.
                  (B) The number of investigations relating to the 
                infringement of intellectual property rights referred 
                by U.S. Immigration and Customs Enforcement to a United 
                States attorney for prosecution and the United States 
                attorneys to which those investigations were referred.
                  (C) The number of such investigations accepted by 
                each such United States attorney and the status or 
                outcome of each such investigation.
                  (D) The number of such investigations that resulted 
                in the imposition of civil or criminal penalties.
                  (E) A description of the efforts of U.S. Custom and 
                Border Protection and U.S. Immigration and Customs 
                Enforcement to improve the success rates of 
                investigations and prosecutions relating to the 
                infringement of intellectual property rights.
          (2) An estimate of the average time required by the Office of 
        International Trade of U.S. Customs and Border Protection to 
        respond to a request from port personnel for advice with 
        respect to whether merchandise detained by U.S. Customs and 
        Border Protection infringed intellectual property rights, 
        distinguished by types of intellectual property rights 
        infringed.
          (3) A summary of the outreach efforts of U.S. Customs and 
        Border Protection and U.S. Immigration and Customs Enforcement 
        with respect to--
                  (A) the interdiction and investigation of, and the 
                sharing of information between those agencies and other 
                Federal agencies to prevent the infringement of 
                intellectual property rights;
                  (B) collaboration with private sector entities--
                          (i) to identify trends in the infringement 
                        of, and technologies that infringe, 
                        intellectual property rights;
                          (ii) to identify opportunities for enhanced 
                        training of officers of U.S. Customs and Border 
                        Protection and U.S. Immigration and Customs 
                        Enforcement; and
                          (iii) to develop best practices to enforce 
                        intellectual property rights; and
                  (C) coordination with foreign governments and 
                international organizations with respect to the 
                enforcement of intellectual property rights.
          (4) A summary of the efforts of U.S. Customs and Border 
        Protection and U.S. Immigration and Customs Enforcement to 
        address the challenges with respect to the enforcement of 
        intellectual property rights presented by Internet commerce and 
        the transit of small packages and an identification of the 
        volume, value, and type of merchandise seized for infringing 
        intellectual property rights as a result of such efforts.
          (5) A summary of training relating to the enforcement of 
        intellectual property rights conducted under section 308 of 
        this Act and expenditures for such training.

SEC. 311. INFORMATION FOR TRAVELERS REGARDING VIOLATIONS OF 
                    INTELLECTUAL PROPERTY RIGHTS.

  (a) In General.--The Secretary of Homeland Security shall develop and 
carry out an educational campaign to inform travelers entering or 
leaving the United States about the legal, economic, and public health 
and safety implications of acquiring merchandise that infringes 
intellectual property rights outside the United States and importing 
such merchandise into the United States in violation of United States 
law.
  (b) Declaration Forms.--The Commissioner shall ensure that all 
versions of Declaration Form 6059B of U.S. Customs and Border 
Protection, or a successor form, including any electronic equivalent of 
Declaration Form 6059B or a successor form, printed or displayed on or 
after the date that is 30 days after the date of the enactment of this 
Act include a written warning to inform travelers arriving in the 
United States that importation of merchandise into the United States 
that infringes intellectual property rights may subject travelers to 
civil or criminal penalties and may pose serious risks to safety or 
health.

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

SEC. 401. SHORT TITLE.

  This title may be cited as the ``Preventing Recurring Trade Evasion 
and Circumvention Act'' or ``PROTECT Act''.

SEC. 402. DEFINITIONS.

  In this title:
          (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                  (A) the Committee on Finance and the Committee on 
                Appropriations of the Senate; and
                  (B) the Committee on Ways and Means and the Committee 
                on Appropriations of the House of Representatives.
          (2) Covered merchandise.--The term ``covered merchandise'' 
        means merchandise that is subject to--
                  (A) a countervailing duty order issued under section 
                706 of the Tariff Act of 1930; or
                  (B) an antidumping duty order issued under section 
                736 of the Tariff Act of 1930.
          (3) Eligible small business.--
                  (A) In general.--The term ``eligible small business'' 
                means any business concern which, in the Commissioner's 
                judgment, due to its small size, has neither adequate 
                internal resources nor financial ability to obtain 
                qualified outside assistance in preparing and 
                submitting for consideration allegations of evasion.
                  (B) Non-reviewability.--Any agency decision regarding 
                whether a business concern is an eligible small 
                business for purposes of section 411(b)(4)(E) is not 
                reviewable by any other agency or by any court.
          (4) Enter; entry.--The terms ``enter'' and ``entry'' refer to 
        the entry, or withdrawal from warehouse for consumption, in the 
        customs territory of the United States.
          (5) Evade; evasion.--The terms ``evade'' and ``evasion'' 
        refer to entering covered merchandise into the customs 
        territory of the United States by means of any document or 
        electronically transmitted data or information, written or oral 
        statement, or act that is material and false, or any omission 
        that is material, and that results in any cash deposit or other 
        security or any amount of applicable antidumping or 
        countervailing duties being reduced or not being applied with 
        respect to the merchandise.
          (6) Secretary.--The term ``Secretary'' means the Secretary of 
        the Treasury.
          (7) Trade remedy laws.--The term ``trade remedy laws'' means 
        title VII of the Tariff Act of 1930.

SEC. 403. APPLICATION TO CANADA AND MEXICO.

  Pursuant to article 1902 of the North American Free Trade Agreement 
and section 408 of the North American Free Trade Agreement 
Implementation Act (19 U.S.C. 3438), this title and the amendments made 
by this title shall apply with respect to goods from Canada and Mexico.

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

SEC. 411. TRADE REMEDY LAW ENFORCEMENT DIVISION.

  (a) Establishment.--
          (1) In general.--The Secretary of Homeland Security shall 
        establish and maintain within the Office of International Trade 
        of U.S. Customs and Border Protection, established under 
        section 2(d) of the Act of March 3, 1927 (44 Stat. 1381, 
        chapter 348; 19 U.S.C. 2072(d)), a Trade Remedy Law Enforcement 
        Division.
          (2) Composition.--The Trade Law Remedy Enforcement Division 
        shall be composed of--
                  (A) headquarters personnel led by a Director, who 
                shall report to the Assistant Commissioner of the 
                Office of International Trade; and
                  (B) a National Targeting and Analysis Group dedicated 
                to preventing and countering evasion.
          (3) Duties.--The Trade Remedy Law Enforcement Division shall 
        be dedicated--
                  (A) to the development and administration of policies 
                to prevent and counter evasion;
                  (B) to direct enforcement and compliance assessment 
                activities concerning evasion;
                  (C) to the development and conduct of commercial risk 
                assessment targeting with respect to cargo destined for 
                the United States in accordance with subsection (c);
                  (D) to issuing Trade Alerts described in subsection 
                (d); and
                  (E) to the development of policies for the 
                application of single entry and continuous bonds for 
                entries of covered merchandise to sufficiently protect 
                the collection of antidumping and countervailing duties 
                commensurate with the level of risk of noncollection.
  (b) Duties of Director.--The duties of the Director of the Trade 
Remedy Law Enforcement Division shall include--
          (1) directing the trade enforcement and compliance assessment 
        activities of U.S. Customs and Border Protection that concern 
        evasion;
          (2) facilitating, promoting, and coordinating cooperation and 
        the exchange of information between U.S. Customs and Border 
        Protection, U.S. Immigration and Customs Enforcement, and other 
        relevant agencies regarding evasion;
          (3) notifying on a timely basis the administering authority 
        (as defined in section 771(1) of the Tariff Act of 1930 (19 
        U.S.C. 1677(1))) and the Commission (as defined in section 
        771(2) of the Tariff Act of 1930 (19 U.S.C. 1677(2))) of any 
        finding, determination, civil action, or criminal action taken 
        by U.S. Customs and Border Protection or other Federal agency 
        regarding evasion;
          (4) serving as the primary liaison between U.S. Customs and 
        Border Protection and the public regarding United States 
        Government activities concerning evasion, including--
                  (A) receive and transmit to the appropriate U.S. 
                Customs and Border Protection office allegations from 
                parties of evasion;
                  (B) upon request by the party or parties that 
                submitted an allegation of evasion, provide information 
                to such party or parties on the status of U.S. Customs 
                and Border Protection's consideration of the allegation 
                and decision to pursue or not pursue any administrative 
                inquiries or other actions, such as changes in 
                policies, procedures, or resource allocation as a 
                result of the allegation;
                  (C) as needed, request from the party or parties that 
                submitted an allegation of evasion any additional 
                information that may be relevant for U.S. Customs and 
                Border Protection determining whether to initiate an 
                administrative inquiry or take any other action 
                regarding the allegation;
                  (D) notify on a timely basis the party or parties 
                that submitted such an allegation of the results of any 
                administrative, civil or criminal actions taken by U.S. 
                Customs and Border Protection or other Federal agency 
                regarding evasion as a direct or indirect result of the 
                allegation;
                  (E) upon request, provide technical assistance and 
                advice to eligible small businesses to enable such 
                businesses to prepare and submit allegations of 
                evasion, except that the Director may deny assistance 
                if the Director concludes that the allegation, if 
                submitted, would not lead to the initiation of an 
                administrative inquiry or any other action to address 
                the allegation;
                  (F) in cooperation with the public, the Commercial 
                Customs Operations Advisory Committee, the Trade 
                Support Network, and any other relevant parties and 
                organizations, develop guidelines on the types and 
                nature of information that may be provided in 
                allegations of evasion; and
                  (G) regularly consult with the public, the Commercial 
                Customs Operations Advisory Committee, the Trade 
                Support Network, and any other relevant parties and 
                organizations regarding the development and 
                implementation of regulations, interpretations, and 
                policies related to countering evasion.
  (c) Preventing and Countering Evasion of the Trade Remedy Laws.--In 
carrying out its duties with respect to preventing and countering 
evasion, the National Targeting and Analysis Group dedicated to 
preventing and countering evasion shall--
          (1) establish targeted risk assessment methodologies and 
        standards--
                  (A) for evaluating the risk that cargo destined for 
                the United States may constitute evading covered 
                merchandise; and
                  (B) for issuing, as appropriate, Trade Alerts 
                described in subsection (d); and
          (2) to the extent practicable and otherwise authorized by 
        law, use information available from the Automated Commercial 
        System, the Automated Commercial Environment computer system, 
        the Automated Targeting System, the Automated Export System, 
        the International Trade Data System, and the TECS, and any 
        similar and successor systems, to administer the methodologies 
        and standards established under paragraph (1).
  (d) Trade Alerts.--Based upon the application of the targeted risk 
assessment methodologies and standards established under subsection 
(c), the Director of the Trade Remedy Law Enforcement Division shall 
issue Trade Alerts or other such means of notification to directors of 
United States ports of entry directing further inspection, physical 
examination, or testing of merchandise to ensure compliance with the 
trade remedy laws and to require additional bonds, cash deposits, or 
other security to ensure collection of any duties, taxes and fees owed.

SEC. 412. COLLECTION OF INFORMATION ON EVASION OF TRADE REMEDY LAWS.

  (a) Authority to Collect Information.--To determine whether covered 
merchandise is being entered into the customs territory of the United 
States through evasion, the Secretary, acting through the 
Commissioner--
          (1) shall exercise all existing authorities to collect 
        information needed to make the determination; and
          (2) may collect such additional information as is necessary 
        to make the determination through such methods as the 
        Commissioner considers appropriate, including by issuing 
        questionnaires with respect to the entry or entries at issue 
        to--
                  (A) a person who filed an allegation with respect to 
                the covered merchandise;
                  (B) a person who is alleged to have entered the 
                covered merchandise into the customs territory of the 
                United States through evasion; or
                  (C) any other person who is determined to have 
                information relevant to the allegation of entry of 
                covered merchandise into the customs territory of the 
                United States through evasion.
  (b) Adverse Inference.--
          (1) In general.--If the Secretary finds that a person who 
        filed an allegation, a person alleged to have entered covered 
        merchandise into the customs territory of the United States 
        through evasion, or a foreign producer or exporter of covered 
        merchandise that is alleged to have entered into the customs 
        territory of the United States through evasion, has failed to 
        cooperate by not acting to the best of the person's ability to 
        comply with a request for information, the Secretary may, in 
        making a determination whether an entry or entries of covered 
        merchandise may constitute merchandise that is entered into the 
        customs territory of the United States through evasion, use an 
        inference that is adverse to the interests of that person in 
        selecting from among the facts otherwise available to determine 
        whether evasion has occurred.
          (2) Adverse inference described.--An adverse inference used 
        under paragraph (1) may include reliance on information derived 
        from--
                  (A) the allegation of evasion of the trade remedy 
                laws, if any, submitted to U.S. Customs and Border 
                Protection;
                  (B) a determination by the Commissioner in another 
                investigation, proceeding, or other action regarding 
                evasion of the unfair trade laws; or
                  (C) any other available information.

SEC. 413. ACCESS TO INFORMATION.

  (a) In General.--Section 777(b)(1)(A)(ii) of the Tariff Act of 1930 
(19 U.S.C. 1677f(b)(1)(A)(ii)) is amended by inserting ``negligence, 
gross negligence, or'' after ``regarding''.
  (b) Additional Information.--Notwithstanding any other provision of 
law, the Secretary is authorized to provide to the Secretary of 
Commerce or the United States International Trade Commission any 
information that is necessary to enable the Secretary of Commerce or 
the United States International Trade Commission to assist the 
Secretary to identify, through risk assessment targeting or otherwise, 
covered merchandise that is entered into the customs territory of the 
United States through evasion.

SEC. 414. COOPERATION WITH FOREIGN COUNTRIES ON PREVENTING EVASION OF 
                    TRADE REMEDY LAWS.

  (a) Bilateral Agreements.--
          (1) In general.--The Secretary shall seek to negotiate and 
        enter into bilateral agreements with the customs authorities or 
        other appropriate authorities of foreign countries for purposes 
        of cooperation on preventing evasion of the trade remedy laws 
        of the United States and the trade remedy laws of the other 
        country.
          (2) Provisions and authorities.--The Secretary shall seek to 
        include in each such bilateral agreement the following 
        provisions and authorities:
                  (A) On the request of the importing country, the 
                exporting country shall provide, consistent with its 
                laws, regulations, and procedures, production, trade, 
                and transit documents and other information necessary 
                to determine whether an entry or entries exported from 
                the exporting country are subject to the importing 
                country's trade remedy laws.
                  (B) On the written request of the importing country, 
                the exporting country shall conduct a verification for 
                purposes of enabling the importing country to make a 
                determination described in subparagraph (A).
                  (C) The exporting country may allow the importing 
                country to participate in a verification described in 
                subparagraph (B), including through a site visit.
                  (D) If the exporting country does not allow 
                participation of the importing country in a 
                verification described in subparagraph (B), the 
                importing country may take this fact into consideration 
                in its trade enforcement and compliance assessment 
                activities regarding the compliance of the exporting 
                country's exports with the importing country's trade 
                remedy laws.
  (b) Consideration.--The Commissioner is authorized to take into 
consideration whether a country is a signatory to a bilateral agreement 
described in subsection (a) and the extent to which the country is 
cooperating under the bilateral agreement for purposes of trade 
enforcement and compliance assessment activities of U.S. Customs and 
Border Protection that concern evasion by such country's exports.
  (c) Report.--Not later than December 31 of each year beginning after 
the date of the enactment of this Act, the Secretary shall submit to 
the appropriate congressional committees a report summarizing--
          (1) the status of any ongoing negotiations of bilateral 
        agreements described in subsection (a), including the 
        identities of the countries involved in such negotiations;
          (2) the terms of any completed bilateral agreements described 
        in subsection (a); and
          (3) bilateral cooperation and other activities conducted 
        pursuant to or enabled by any completed bilateral agreements 
        described in subsection (a).

SEC. 415. TRADE NEGOTIATING OBJECTIVES.

  The principal negotiating objectives of the United States shall 
include obtaining the objectives of the bilateral agreements described 
under section 414(a) for any trade agreements under negotiation as of 
the date of the enactment of this Act or future trade agreement 
negotiations.

       Subtitle B--Investigation of Evasion of Trade Remedy Laws

SEC. 421. PROCEDURES FOR INVESTIGATION OF EVASION OF ANTIDUMPING AND 
                    COUNTERVAILING DUTY ORDERS.

  (a) In General.--Title VII of the Tariff Act of 1930 (19 U.S.C. 1671 
et seq.) is amended by inserting after section 781 the following:

``SEC. 781A. PROCEDURES FOR PREVENTION OF EVASION OF ANTIDUMPING AND 
                    COUNTERVAILING DUTY ORDERS.

  ``(a) Definitions.--In this section:
          ``(1) Administering authority.--The term `administering 
        authority' has the meaning given that term in section 771.
          ``(2) Commissioner.--The term `Commissioner' means the 
        Commissioner responsible for U.S. Customs and Border 
        Protection.
          ``(3) Covered merchandise.--The term `covered merchandise' 
        means merchandise that is subject to--
                  ``(A) a countervailing duty order issued under 
                section 706; or
                  ``(B) an antidumping duty order issued under section 
                736.
          ``(4) Evasion.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B), the term `evasion' refers to entering covered 
                merchandise into the customs territory of the United 
                States by means of any document or electronically 
                transmitted data or information, written or oral 
                statement, or act that is material and false, or any 
                omission that is material, and that results in any cash 
                deposit or other security or any amount of applicable 
                antidumping or countervailing duties being reduced or 
                not being applied with respect to the merchandise.
                  ``(B) Exception for clerical error.--
                          ``(i) In general.--Except as provided in 
                        clause (ii), the term `evasion' does not 
                        include entering covered merchandise into the 
                        customs territory of the United States by means 
                        of--
                                  ``(I) a document or electronically 
                                transmitted data or information, 
                                written or oral statement, or act that 
                                is false as a result of a clerical 
                                error; or
                                  ``(II) an omission that results from 
                                a clerical error.
                          ``(ii) Patterns of negligent conduct.--If the 
                        Commissioner determines that a person has 
                        entered covered merchandise into the customs 
                        territory of the United States by means of a 
                        clerical error referred to in subclause (I) or 
                        (II) of clause (i) and that the clerical error 
                        is part of a pattern of negligent conduct on 
                        the part of that person, the Commissioner may 
                        determine, notwithstanding clause (i), that the 
                        person has entered such covered merchandise 
                        into the customs territory of the United States 
                        through evasion.
                          ``(iii) Electronic repetition of errors.--For 
                        purposes of clause (ii), the mere 
                        nonintentional repetition by an electronic 
                        system of an initial clerical error does not 
                        constitute a pattern of negligent conduct.
                          ``(iv) Rule of construction.--A determination 
                        by the Commissioner that a person has entered 
                        covered merchandise into the customs territory 
                        of the United States by means of a clerical 
                        error referred to in subclause (I) or (II) of 
                        clause (i) rather than through evasion shall 
                        not be construed to excuse that person from the 
                        payment of any duties applicable to the 
                        merchandise.
  ``(b) Prevention by Administering Authority.--
          ``(1) Procedures for initiating investigations.--
                  ``(A) Initiation by administering authority.--An 
                investigation under this subsection shall be initiated 
                with respect to merchandise imported into the United 
                States whenever the administering authority determines, 
                from information available to the administering 
                authority, that an investigation is warranted with 
                respect to whether the merchandise is covered 
                merchandise.
                  ``(B) Initiation by petition or referral.--
                          ``(i) In general.--The administering 
                        authority shall determine whether to initiate 
                        an investigation under this subparagraph not 
                        later than 30 days after the date on which the 
                        administering authority receives a petition 
                        described in clause (ii) or a referral 
                        described in clause (iii).
                          ``(ii) Petition described.--A petition 
                        described in this clause is a petition that--
                                  ``(I) is filed with the administering 
                                authority by an interested party 
                                specified in subparagraph (A), (C), 
                                (D), (E), (F), or (G) of section 
                                771(9);
                                  ``(II) alleges that merchandise 
                                imported into the United States is 
                                covered merchandise; and
                                  ``(III) is accompanied by information 
                                reasonably available to the petitioner 
                                supporting those allegations.
                          ``(iii) Referral described.--A referral 
                        described in this clause is a referral made by 
                        the Commissioner pursuant to subsection (c)(1).
          ``(2) Time limits for determinations.--
                  ``(A) Preliminary determination.--
                          ``(i) In general.--Not later than 90 days 
                        after the administering authority initiates an 
                        investigation under paragraph (1) with respect 
                        to merchandise, the administering authority 
                        shall issue a preliminary determination, based 
                        on information available to the administering 
                        authority at the time of the determination, 
                        with respect to whether there is a reasonable 
                        basis to believe or suspect that the 
                        merchandise is covered merchandise.
                          ``(ii) Expedited procedures.--If the 
                        administering authority determines that 
                        expedited action is warranted with respect to 
                        an investigation initiated under paragraph (1), 
                        the administering authority may publish the 
                        notice of initiation of the investigation and 
                        the notice of the preliminary determination in 
                        the Federal Register at the same time.
                  ``(B) Final determination by the administering 
                authority.--The administering authority shall issue a 
                final determination with respect to whether merchandise 
                is covered merchandise not later than 300 days after 
                the date on which the administering authority initiates 
                an investigation under paragraph (1) with respect to 
                the merchandise.
          ``(3) Access to information.--
                  ``(A) Entry documents, records, and other 
                information.--Upon receiving a request from the 
                administering authority, and not later than 10 days 
                after receiving the administering authority's request, 
                the Commissioner shall transmit to the administering 
                authority copies of the documentation and information 
                required by section 484(a)(1) with respect to the entry 
                of the merchandise, as well as any other documentation 
                or information requested by the administering 
                authority.
                  ``(B) Access of interested parties.--Not later than 
                10 business days after the date on which the 
                administering authority initiates an investigation 
                under paragraph (1) with respect to merchandise, the 
                administering authority shall provide to the authorized 
                representative of each interested party that filed a 
                petition under paragraph (1) or otherwise participates 
                in a proceeding, pursuant to a protective order, the 
                copies of the entry documentation and any other 
                information received by the administering authority 
                under subparagraph (A).
                  ``(C) Business proprietary information from prior 
                segments.--Where an authorized representative to an 
                interested party participating in an investigation 
                under paragraph (1) has access to business proprietary 
                information released pursuant to administrative 
                protective order in a proceeding under 19 U.S.C. 
                Sec. Sec.  1671 et seq., 1673 et seq., or 1675 et seq. 
                that is relevant to the investigation conducted under 
                paragraph (1), that authorized representative may 
                submit such information to the administering authority 
                for its consideration in the context of the 
                investigation conducted under paragraph (1).
          ``(4) Authority to collect and verify additional 
        information.--In making a determination under paragraph (2) 
        with respect to covered merchandise, the administering 
        authority may collect such additional information as is 
        necessary to make the determination through such methods as the 
        administering authority considers appropriate, including by--
                  ``(A) issuing a questionnaire with respect to such 
                covered merchandise to--
                          ``(i) a person that filed an allegation under 
                        paragraph (1)(B)(ii) that resulted in the 
                        initiation of an investigation under paragraph 
                        (1)(A) with respect to such covered 
                        merchandise;
                          ``(ii) a person alleged to have entered such 
                        covered merchandise into the customs territory 
                        of the United States through evasion;
                          ``(iii) a person that is a foreign producer 
                        or exporter of such covered merchandise; or
                          ``(iv) the government of a country from which 
                        such covered merchandise was exported;
                  ``(B) conducting verifications, including on-site 
                verifications, of any relevant information; and
                  ``(C) requesting--
                          ``(i) that the Commissioner provide any 
                        information and data available to U.S. Customs 
                        and Border Protection, and
                          ``(ii) that the Commissioner gather 
                        additional necessary information from the 
                        importer of covered merchandise and other 
                        relevant parties.
          ``(5) Adverse inference.--If the administering authority 
        finds that a person described in clause (i), (ii), or (iii) of 
        paragraph (4)(A) has failed to cooperate by not acting to the 
        best of the person's ability to comply with a request for 
        information, the administering authority may, in making a 
        determination under paragraph (2), use an inference that is 
        adverse to the interests of that person in selecting from among 
        the facts otherwise available to make the determination.
          ``(6) Effect of affirmative preliminary determination.--If 
        the administering authority makes a preliminary determination 
        under paragraph (2)(A) that merchandise is covered merchandise, 
        the administering authority shall instruct U.S. Customs and 
        Border Protection--
                  ``(A) to suspend liquidation of each entry of the 
                merchandise that--
                          ``(i) enters on or after the date of the 
                        preliminary determination; or
                          ``(ii) enters before that date, if the 
                        liquidation of the entry is not final on that 
                        date; and
                  ``(B) to require the posting of a cash deposit for 
                each entry of the merchandise in an amount determined 
                pursuant to the order or finding described in 
                subsection (a)(2)(A)(i), or administrative review 
                conducted under section 751, that applies to the 
                merchandise.
          ``(7) Effect of affirmative final determination.--
                  ``(A) In general.--If the administering authority 
                makes a final determination under paragraph (2)(B) that 
                merchandise is covered merchandise, the administering 
                authority shall instruct U.S. Customs and Border 
                Protection--
                          ``(i) to assess duties on the merchandise in 
                        an amount determined pursuant to the order or 
                        finding described in subsection (a)(2)(A)(i), 
                        or administrative review conducted under 
                        section 751, that applies to the merchandise;
                          ``(ii) notwithstanding section 501, to 
                        reliquidate, in accordance with such order, 
                        finding, or administrative review, each entry 
                        of the merchandise that was liquidated and is 
                        determined to include covered merchandise; and
                          ``(iii) to review and reassess the amount of 
                        bond or other security the importer is required 
                        to post for such merchandise entered on or 
                        after the date of the final determination to 
                        ensure the protection of revenue and compliance 
                        with the law.
                  ``(B) Additional authority.--If the administering 
                authority makes a final determination under paragraph 
                (2)(B) that merchandise is covered merchandise, the 
                administering authority may instruct U.S. Customs and 
                Border Protection to require the importer of the 
                merchandise to post a cash deposit or bond on such 
                merchandise entered on or after the date of the final 
                determination in an amount the administering authority 
                determines in the final determination to be owed with 
                respect to the merchandise.
          ``(8) Effect of negative final determination.--If the 
        administering authority makes a final determination under 
        paragraph (2)(B) that merchandise is not covered merchandise, 
        the administering authority shall terminate the suspension of 
        liquidation and refund any cash deposit imposed pursuant to 
        paragraph (6) with respect to the merchandise.
          ``(9) Notification.--Not later than 5 business days after 
        making a determination under paragraph (2) with respect to 
        covered merchandise, the administering authority may provide to 
        importers, in such manner as the administering authority 
        determines appropriate, information discovered in the 
        investigation that the administering authority determines will 
        help educate importers with respect to importing merchandise 
        into the customs territory of the United States in accordance 
        with all applicable laws and regulations.
          ``(10) Special rule for cases in which the producer or 
        exporter is unknown.--If the administering authority is unable 
        to determine the actual producer or exporter of the merchandise 
        with respect to which the administering authority initiated an 
        investigation under paragraph (1), the administering authority 
        shall, in requiring the posting of a cash deposit under 
        paragraph (6) or assessing duties pursuant to paragraph (7)(A), 
        impose the cash deposit or duties (as the case may be) in the 
        highest amount applicable to any producer or exporter of the 
        merchandise pursuant to any order or finding described in 
        subsection (a)(2)(A)(i), or any administrative review conducted 
        under section 751.
          ``(11) Publication of determinations.--The administering 
        authority shall publish each notice of initiation of 
        investigation made under paragraph (1)(A), each preliminary 
        determination made under paragraph (2)(A) and each final 
        determination made under paragraph (2)(B) in the Federal 
        Register.
          ``(12) Referrals to other agencies.--
                  ``(A) After preliminary determination.--
                Notwithstanding section 777 and subject to subparagraph 
                (C), when the administering authority makes an 
                affirmative preliminary determination under paragraph 
                (2)(A), the administering authority shall--
                          ``(i) transmit the administrative record to 
                        the Commissioner for such additional action as 
                        the Commissioner determines appropriate, 
                        including proceedings under section 592; and
                          ``(ii) at the request of the head of another 
                        agency, transmit the administrative record to 
                        the head of that agency.
                  ``(B) After final determination.--Notwithstanding 
                section 777 and subject to subparagraph (C), when the 
                administering authority makes an affirmative final 
                determination under paragraph (2)(B), the administering 
                authority shall--
                          ``(i) transmit the complete administrative 
                        record to the Commissioner; and
                          ``(ii) at the request of the head of another 
                        agency, transmit the complete administrative 
                        record to the head of that agency.
  ``(c) Prevention by U.S. Customs and Border Protection.--In the event 
the Commissioner receives information that a person is entered covered 
merchandise into the customs territory of the United States through 
evasion, but is not able to determine whether the merchandise is in 
fact covered merchandise, the Commissioner shall--
                  ``(A) refer the matter to the administering authority 
                for additional proceedings under subsection (b); and
                  ``(B) transmit to the administering authority--
                          ``(i) copies of the entry documents and 
                        information required by section 484(a)(1) 
                        relating to the merchandise; and
                          ``(ii) any additional records or information 
                        that the Commissioner considers appropriate.
  ``(d) Cooperation Between U.S. Customs and Border Protection and the 
Department of Commerce.--
          ``(1) Notification of investigations.--Upon receiving a 
        petition and upon initiating an investigation under subsection 
        (b), the administering authority shall notify the Commissioner.
          ``(2) Procedures for cooperation.--Not later than 180 days 
        after the date of the enactment of this Act , the Commissioner 
        and the administering authority shall establish procedures to 
        ensure maximum cooperation and communication between U.S. 
        Customs and Border Protection and the administering authority 
        in order to quickly, efficiently, and accurately investigate 
        allegations of evasion of antidumping and countervailing duty 
        orders.
  ``(e) Annual Report on Preventing Evasion of Antidumping and 
Countervailing Duty Orders.--
          ``(1) In general.--Not later than February 28 of each year 
        beginning in 2016, the Under Secretary for International Trade 
        of the Department of Commerce shall submit to the Committee on 
        Finance and the Committee on Appropriations of the Senate and 
        the Committee on Ways and Means and the Committee on 
        Appropriations of the House of Representatives a report on the 
        efforts being taken under subsection (b) to prevent evasion of 
        antidumping and countervailing duty orders.
          ``(2) Contents.--Each report required by paragraph (1) shall 
        include, for the year preceding the submission of the report--
                  ``(A)(i) the number of investigations initiated 
                pursuant to subsection (b); and
                  ``(ii) a description of such investigations, 
                including--
                          ``(I) the results of such investigations; and
                          ``(II) the amount of antidumping and 
                        countervailing duties collected as a result of 
                        such investigations; and
                  ``(B) the number of referrals made by the 
                Commissioner pursuant to subsection (c).''.
  (b) Technical Amendment.--The table of contents for title VII of the 
Tariff Act of 1930 is amended by inserting after the item relating to 
section 781 the following:

``Sec. 781A. Procedures for prevention of evasion of antidumping and 
countervailing duty orders.''.

  (c) Judicial Review.--Section 516A(a)(2) of the Tariff Act of 1930 
(19 U.S.C. 1516a(a)(2)) is amended--
          (1) in subparagraph (A)(i)(I), by striking ``or (viii)'' and 
        inserting ``(viii), or (ix)''; and
          (2) in subparagraph (B), by inserting at the end the 
        following:
                          ``(ix) A determination by the administering 
                        authority under section 781A.''.
  (d) Regulations.--Not later than 180 days after the date of the 
enactment of this Act--
          (1) the Secretary of Commerce shall prescribe such 
        regulations as may be necessary to carry out subsection (b) of 
        section 781A of the Tariff Act of 1930 (as added by subsection 
        (a) of this section); and
          (2) the Commissioner responsible for U.S. Customs and Border 
        Protection shall prescribe such regulations as may be necessary 
        to carry out subsection (c) of such section 781A.
  (e) Effective Date.--The amendments made by this section shall--
          (1) take effect on the date that is 180 days after the date 
        of the enactment of this Act; and
          (2) apply with respect to merchandise entered on or after 
        such date of enactment.

SEC. 422. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.

  Not later than 2 years after the date of the enactment of this Act, 
the Comptroller General of the United States shall submit to the 
Committee on Finance and the Committee on Appropriations of the Senate 
and the Committee on Ways and Means and the Committee on Appropriations 
of the House of Representatives a report assessing the effectiveness 
of--
          (1) the provisions of, and amendments made by, this Act; and
          (2) the actions taken and procedures developed by the 
        Secretary of Commerce and the Commissioner pursuant to such 
        provisions and amendments to prevent evasion of antidumping and 
        countervailing duty orders under title VII of the Tariff Act of 
        1930 (19 U.S.C. 1671 et seq.).

                       Subtitle C--Other Matters

SEC. 431. ALLOCATION AND TRAINING OF PERSONNEL.

  The Commissioner shall, to the maximum extent possible, ensure that 
U.S. Customs and Border Protection--
          (1) employs sufficient personnel who have expertise in, and 
        responsibility for, preventing and investigating the entry of 
        covered merchandise into the customs territory of the United 
        States through evasion;
          (2) on the basis of risk assessment metrics, assigns 
        sufficient personnel with primary responsibility for preventing 
        the entry of covered merchandise into the customs territory of 
        the United States through evasion to the ports of entry in the 
        United States at which the Commissioner determines potential 
        evasion presents the most substantial threats to the revenue of 
        the United States; and
          (3) provides adequate training to relevant personnel to 
        increase expertise and effectiveness in the prevention and 
        identification of entries of covered merchandise into the 
        customs territory of the United States through evasion.

SEC. 432. ANNUAL REPORT ON PREVENTION OF EVASION OF ANTIDUMPING AND 
                    COUNTERVAILING DUTY ORDERS.

  (a) In General.--Not later than February 28 of each year, beginning 
in 2014, the Commissioner, in consultation with the Secretary of 
Commerce and the Director for U.S. Immigration and Customs Enforcement, 
shall submit to the appropriate congressional committees a report on 
the efforts being taken to prevent and investigate evasion.
  (b) Contents.--Each report required under subsection (a) shall 
include--
          (1) for the calendar year preceding the submission of the 
        report--
                  (A) a summary of the efforts of U.S. Customs and 
                Border Protection to prevent and identify evasion;
                  (B) the number of allegations of evasion received and 
                the number of allegations of evasion resulting in any 
                administrative, civil, or criminal actions by U.S. 
                Customs and Border Protection or any other agency;
                  (C) a summary of the completed administrative 
                inquiries of evasion, including the number and nature 
                of the inquiries initiated, conducted, or completed, as 
                well as their resolution;
                  (D) with respect to inquiries that lead to lead to 
                issuance of a penalty notice, the penalty amounts;
                  (E) the amounts of antidumping and countervailing 
                duties collected as a result of any actions by U.S. 
                Customs and Border Protection or any other agency;
                  (F) a description of the allocation of personnel and 
                other resources of U.S. Customs and Border Protection 
                and U.S. Immigration and Customs Enforcement to 
                prevent, identify and investigate evasion, including 
                any assessments conducted regarding the allocation of 
                such personnel and resources; and
                  (G) a description of training conducted to increase 
                expertise and effectiveness in the prevention, 
                identification and investigation of evasion; and
          (2) a description of U.S. Customs and Border Protection 
        processes and procedures to prevent and identify evasion, 
        including--
                  (A) the specific guidelines, policies, and practices 
                used by U.S. Customs and Border Protection to ensure 
                that allegations of evasion are promptly evaluated and 
                acted upon in a timely manner;
                  (B) an evaluation of the efficacy of such existing 
                guidelines, policies, and practices;
                  (C) identification of any changes since the last 
                report that have materially improved or reduced the 
                effectiveness of U.S. Customs and Border Protection to 
                prevent and identify evasion;
                  (D) a description of the development and 
                implementation of policies for the application of 
                single entry and continuous bonds for entries of 
                covered merchandise to sufficiently protect the 
                collection of antidumping and countervailing duties 
                commensurate with the level of risk on noncollection;
                  (E) the processes and procedures for increased 
                cooperation and information sharing with the Department 
                of Commerce, U.S. Immigration and Customs Enforcement, 
                and any other relevant Federal agencies to prevent and 
                identify evasion; and
                  (F) identification of any recommended policy changes 
                of other Federal agencies or legislative changes to 
                improve the effectiveness of U.S. Customs and Border 
                Protection to prevent and identify evasion.

SEC. 433. ADDRESSING CIRCUMVENTION BY NEW SHIPPERS.

  Section 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 
1675(a)(2)(B)) is amended--
          (1) by striking clause (iii);
          (2) by redesignating clause (iv) as clause (iii); and
          (3) inserting after clause (iii), as redesignated by 
        paragraph (2) of this section, the following:
                          ``(iv) Determinations based on bonafide 
                        sales.--Any weighted average dumping margin or 
                        individual countervailing duty rate determined 
                        for an exporter or producer in a review 
                        conducted under clause (i) shall be based 
                        solely on the bona fide United States sales of 
                        an exporter or producer, as the case may be, 
                        made during the period covered by the review. 
                        In determining whether the United States sales 
                        of an exporter or producer made during the 
                        period covered by the review were bona fide, 
                        the administering authority shall consider, 
                        depending on the circumstances surrounding such 
                        sales--
                                  ``(I) the prices of such sales;
                                  ``(II) whether such sales were made 
                                in commercial quantities;
                                  ``(III) the timing of such sales;
                                  ``(IV) the expenses arising from such 
                                sales;
                                  ``(V) whether the subject merchandise 
                                involved in such sales were resold in 
                                the United States at a profit;
                                  ``(VI) whether such sales were made 
                                on an arms-length basis; and
                                  ``(VII) any other factor the 
                                administering authority determines to 
                                be relevant as to whether such sales 
                                are, or are not, likely to be typical 
                                of those the exporter or producer will 
                                make after completion of the review.''.

               TITLE V--ADDITIONAL ENFORCEMENT PROVISIONS

SEC. 501. TRADE ENFORCEMENT PRIORITIES.

  (a) In General.--Section 310 of the Trade Act of 1974 (19 U.S.C. 
2420) is amended to read as follows:

``SEC. 310. TRADE ENFORCEMENT PRIORITIES.

  ``(a) Trade Enforcement Priorities, Consultations, and Report.--
          ``(1) Trade enforcement priorities consultations.--Not later 
        than May 31 of each calendar year that begins after the date of 
        the enactment of the Trade Facilitation and Trade Enforcement 
        Act of 2015, the United States Trade Representative (in this 
        section referred to as the `Trade Representative') shall 
        consult with the Committee on Finance of the Senate and the 
        Committee on Ways and Means of the House of Representatives 
        with respect to the prioritization of acts, policies, or 
        practices of foreign governments that raise concerns with 
        respect to obligations under the WTO Agreements or any other 
        trade agreement to which the United States is a party, or 
        otherwise create or maintain barriers to United States goods, 
        services, or investment.
          ``(2) Identification of trade enforcement priorities.--In 
        identifying acts, policies, or practices of foreign governments 
        as trade enforcement priorities under this subsection, the 
        United States Trade Representative shall focus on those acts, 
        policies, and practices the elimination of which is likely to 
        have the most significant potential to increase United States 
        economic growth, and take into account all relevant factors, 
        including--
                  ``(A) the economic significance of any potential 
                inconsistency between an obligation assumed by a 
                foreign government pursuant to a trade agreement to 
                which both the foreign government and the United States 
                are parties and the acts, policies, or practices of 
                that government;
                  ``(B) the impact of the acts, policies, or practices 
                of a foreign government on maintaining and creating 
                United States jobs and productive capacity;
                  ``(C) the major barriers and trade distorting 
                practices described in the most recent National Trade 
                Estimate required under section 181(b);
                  ``(D) the major barriers and trade distorting 
                practices described in other relevant reports 
                addressing international trade and investment barriers 
                prepared by a Federal agency or congressional 
                commission during the 12 months preceding the date of 
                the most recent report under paragraph (3);
                  ``(E) a foreign government's compliance with its 
                obligations under any trade agreements to which both 
                the foreign government and the United States are 
                parties;
                  ``(F) the implications of a foreign government's 
                procurement plans and policies; and
                  ``(G) the international competitive position and 
                export potential of United States products and 
                services.
          ``(3) Report on trade enforcement priorities and actions 
        taken to address.--
                  ``(A) In general.--Not later than July 31 of each 
                calendar year that begins after the date of the 
                enactment of the Trade Facilitation and Trade 
                Enforcement Act of 2015, the Trade Representative shall 
                report to the Committee on Finance of the Senate and 
                the Committee on Ways and Means of the House of 
                Representatives on acts, policies, or practices of 
                foreign governments identified as trade enforcement 
                priorities based on the consultations under paragraph 
                (1) and the criteria set forth in paragraph (2).
                  ``(B) Report in subsequent years.--The Trade 
                Representative shall include, when reporting under 
                subparagraph (A) in any calendar year after the 
                calendar year that begins after the date of the 
                enactment of the Trade Facilitation and Trade 
                Enforcement Act of 2015, a description of actions taken 
                to address any acts, policies, or practices of foreign 
                governments identified as trade enforcement priorities 
                under this subsection in the calendar year preceding 
                that report and, as relevant, any year before that 
                calendar year.
  ``(b) Semi-annual Enforcement Consultations.--
          ``(1) In general.--At the same time as the reporting under 
        subsection (a)(3), and not later than January 31 of each 
        following year, the Trade Representative shall consult with the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives with respect to the 
        identification, prioritization, investigation, and resolution 
        of acts, policies, or practices of foreign governments of 
        concern with respect to obligations under the WTO Agreements or 
        any other trade agreement to which the United States is a 
        party, or that otherwise create or maintain trade barriers.
          ``(2) Acts, policies, or practices of concern.--The semi-
        annual enforcement consultations required by paragraph (1) 
        shall address acts, policies, or practices of foreign 
        governments that raise concerns with respect to obligations 
        under the WTO Agreements or any other trade agreement to which 
        the United States is a party, or otherwise create or maintain 
        trade barriers, including--
                  ``(A) engagement with relevant trading partners;
                  ``(B) strategies for addressing such concerns;
                  ``(C) availability and deployment of resources to be 
                used in the investigation or resolution of such 
                concerns;
                  ``(D) the merits of any potential dispute resolution 
                proceeding under the WTO Agreements or any other trade 
                agreement to which the United States is a party 
                relating to such concerns; and
                  ``(E) any other aspects of such concerns.
          ``(3) Active investigations.--The semi-annual enforcement 
        consultations required by paragraph (1) shall address acts, 
        policies, or practices that the Trade Representative is 
        actively investigating with respect to obligations under the 
        WTO Agreements or any other trade agreement to which the United 
        States is a party, including--
                  ``(A) strategies for addressing concerns raised by 
                such acts, policies, or practices;
                  ``(B) any relevant timeline with respect to 
                investigation of such acts, policies, or practices;
                  ``(C) the merits of any potential dispute resolution 
                proceeding under the WTO Agreements or any other trade 
                agreement to which the United States is a party with 
                respect to such acts, policies, or practices;
                  ``(D) barriers to the advancement of the 
                investigation of such acts, policies, or practices; and
                  ``(E) any other matters relating to the investigation 
                of such acts, policies, or practices.
          ``(4) Ongoing enforcement actions.--The semi-annual 
        enforcement consultations required by paragraph (1) shall 
        address all ongoing enforcement actions taken by or against the 
        United States with respect to obligations under the WTO 
        Agreements or any other trade agreement to which the United 
        States is a party, including--
                  ``(A) any relevant timeline with respect to such 
                actions;
                  ``(B) the merits of such actions;
                  ``(C) any prospective implementation actions;
                  ``(D) potential implications for any law or 
                regulation of the United States;
                  ``(E) potential implications for United States 
                stakeholders, domestic competitors, and exporters; and
                  ``(F) other issues relating to such actions.
          ``(5) Enforcement resources.--The semi-annual enforcement 
        consultations required by paragraph (1) shall address the 
        availability and deployment of enforcement resources, resource 
        constraints on monitoring and enforcement activities, and 
        strategies to address those constraints, including the use of 
        available resources of other Federal agencies to enhance 
        monitoring and enforcement capabilities.
  ``(c) Investigation and Resolution.--In the case of any acts, 
policies, or practices of a foreign government identified as a trade 
enforcement priority under subsection (a), the Trade Representative 
shall, not later than the date of the first semi-annual enforcement 
consultations held under subsection (b) after the identification of the 
priority, take appropriate action to address that priority, including--
          ``(1) engagement with the foreign government to resolve 
        concerns raised by such acts, policies, or practices;
          ``(2) initiation of an investigation under section 302(b)(1) 
        with respect to such acts, policies, or practices;
          ``(3) initiation of negotiations for a bilateral agreement 
        that provides for resolution of concerns raised by such acts, 
        policies, or practices; or
          ``(4) initiation of dispute settlement proceedings under the 
        WTO Agreements or any other trade agreement to which the United 
        States is a party with respect to such acts, policies, or 
        practices.
  ``(d) Enforcement Notifications and Consultation.--
          ``(1) Initiation of enforcement action.--The Trade 
        Representative shall notify and consult with the Committee on 
        Finance of the Senate and the Committee on Ways and Means of 
        the House of Representatives in advance of initiation of any 
        formal trade dispute by or against the United States taken in 
        regard to an obligation under the WTO Agreements or any other 
        trade agreement to which the United States is a party. With 
        respect to a formal trade dispute against the United States, if 
        advance notification and consultation are not possible, the 
        Trade Representative shall notify and consult at the earliest 
        practicable opportunity after initiation of the dispute.
          ``(2) Circulation of reports.--The Trade Representative shall 
        notify and consult with the Committee on Finance of the Senate 
        and the Committee on Ways and Means of the House of 
        Representatives in advance of the announced or anticipated 
        circulation of any report of a dispute settlement panel or the 
        Appellate Body of the World Trade Organization or of a dispute 
        settlement panel under any other trade agreement to which the 
        United States is a party with respect to a formal trade dispute 
        by or against the United States.
  ``(e) Definitions.--In this section:
          ``(1) WTO.--The term `WTO' means the World Trade 
        Organization.
          ``(2) WTO agreement.--The term `WTO Agreement' has the 
        meaning given that term in section 2(9) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3501(9)).
          ``(3) WTO agreements.--The term `WTO Agreements' means the 
        WTO Agreement and agreements annexed to that Agreement.''.
  (b) Clerical Amendment.--The table of contents for the Trade Act of 
1974 is amended by striking the item relating to section 310 and 
inserting the following:''.

``Sec. 310. Trade enforcement priorities.''.

SEC. 502. EXERCISE OF WTO AUTHORIZATION TO SUSPEND CONCESSIONS OR OTHER 
                    OBLIGATIONS UNDER TRADE AGREEMENTS.

  (a) In General.--Section 306 of the Trade Act of 1974 (19 U.S.C. 
2416) is amended--
          (1) by redesignating subsection (c) as subsection (d); and
          (2) by inserting after subsection (b) the following:
  ``(c) Exercise of WTO Authorization to Suspend Concessions or Other 
Obligations.--If--
          ``(1) action has terminated pursuant to section 307(c),
          ``(2) the petitioner or any representative of the domestic 
        industry that would benefit from reinstatement of action has 
        submitted to the Trade Representative a written request for 
        reinstatement of action, and
          ``(3) the Trade Representatives has completed the 
        requirements of subsection (d) and section 307(c)(3),
the Trade Representative may at any time determine to take action under 
section 301(c) to exercise an authorization to suspend concessions or 
other obligations under Article 22 of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes (referred to in section 
101(d)(16) of the Uruguay Round Agreements Act (19 U.S.C. 
3511(d)(16))).''.
  (b) Conforming Amendments.--Chapter 1 of title III of the Trade Act 
of 1974 (19 U.S.C. 2411 et seq.) is amended--
          (1) in section 301(c)(1) (19 U.S.C. 2411(c)(1)), in the 
        matter preceding subparagraph (A), by inserting ``or section 
        306(c)'' after ``subsection (a) or (b)'';
          (2) in section 306(b) (19 U.S.C. 2416(b)), in the subsection 
        heading, by striking ``Further Action'' and inserting ``Action 
        on the Basis of Monitoring'';
          (3) in section 306(d) (19 U.S.C. 2416(d)), as redesignated by 
        subsection (a)(1), by inserting ``or (c)'' after ``subsection 
        (b)''; and
          (4) in section 307(c)(3) (19 U.S.C. 2417(c)(3)), by inserting 
        ``or if a request is submitted to the Trade Representative 
        under section 306(c)(2) to reinstate action,'' after ``under 
        section 301,''.

SEC. 503. TRADE MONITORING.

  (a) In General.--Chapter 1 of title II of the Trade Act of 1974 (19 
U.S.C. 2251 et seq.) is amended by adding at the end the following:

``SEC. 205. TRADE MONITORING.

  ``(a) Monitoring Tool for Imports.--
          ``(1) In general.--Not later than 180 days after the date of 
        the enactment of this section, the United States International 
        Trade Commission shall make available on a website of the 
        Commission an import monitoring tool to allow the public access 
        to data on the volume and value of goods imported to the United 
        States for the purpose of assessing whether such data has 
        changed with respect to such goods over a period of time.
          ``(2) Data described.--For purposes of the monitoring tool 
        under paragraph (1), the Commission shall use data compiled by 
        the Department of Commerce and such other government data as 
        the Commission considers appropriate.
          ``(3) Periods of time.--The Commission shall ensure that data 
        accessed through the monitoring tool under paragraph (1) 
        includes data for the most recent quarter for which such data 
        are available and previous quarters as the Commission considers 
        practicable.
  ``(b) Monitoring Reports.--
          ``(1) In general.--Not later than 270 days after the date of 
        the enactment of this section, and not less frequently than 
        quarterly thereafter, the Secretary of Commerce shall publish 
        on a website of the Department of Commerce, and notify the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives of the availability 
        of, a monitoring report on changes in the volume and value of 
        trade with respect to imports and exports of goods categorized 
        based on the 6-digit subheading number of the goods under the 
        Harmonized Tariff Schedule of the United States during the most 
        recent quarter for which such data are available and previous 
        quarters as the Secretary considers practicable.
          ``(2) Requests for comment.--Not later than one year after 
        the date of the enactment of this section, the Secretary of 
        Commerce shall solicit through the Federal Register public 
        comment on the monitoring reports described in paragraph (1).
  ``(c) Sunset.--The requirements under this section terminate on the 
date that is seven years after the date of the enactment of this 
section.''.
  (b) Clerical Amendment.--The table of contents for the Trade Act of 
1974 (19 U.S.C. 2101 et seq.) is amended by inserting after the item 
relating to section 204 the following:

``Sec. 205. Trade monitoring.''.

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. DE MINIMIS VALUE.

  (a) De Minimis Value.--Section 321(a)(2)(C) of the Tariff Act of 1930 
(19 U.S.C. 1321(a)(2)(C)) is amended by striking ``$200'' and inserting 
``$800''.
  (b) Effective Date.--The amendment made by subsection (a) shall apply 
with respect to articles entered, or withdrawn from warehouse for 
consumption, on or after the 15th day after the date of the enactment 
of this Act.

SEC. 602. CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNCTIONS.

  Section 401(c) of the Safety and Accountability for Every Port Act (6 
U.S.C. 115(c)) is amended--
          (1) in paragraph (1), by striking ``on Department policies 
        and actions that have'' and inserting ``not later than 30 days 
        after proposing, and not later than 30 days before finalizing, 
        any Department policies, initiatives, or actions that will 
        have''; and
          (2) in paragraph (2)(A), by striking ``not later than 30 days 
        prior to the finalization of'' and inserting ``not later than 
        60 days before proposing, and not later than 60 days before 
        finalizing,''.

SEC. 603. PENALTIES FOR CUSTOMS BROKERS.

  (a) In General.--Section 641(d)(1) of the Tariff Act of 1930 (19 
U.S.C. 1641(d)(1)) is amended--
          (1) in subparagraph (E), by striking ``; or'' and inserting a 
        semicolon;
          (2) in subparagraph (F), by striking the period and inserting 
        ``; or''; and
          (3) by adding at the end the following:
                  ``(G) has been convicted of committing or conspiring 
                to commit an act of terrorism described in section 
                2332b of title 18, United States Code.''.
  (b) Technical Amendments.--Section 641 of the Tariff Act of 1930 (19 
U.S.C. 1641) is amended--
          (1) by striking ``the Customs Service'' each place it appears 
        and inserting ``U.S. Customs and Border Protection'';
          (2) in subsection (d)(2)(B), by striking ``The Customs 
        Service'' and inserting ``U.S. Customs and Border Protection''; 
        and
          (3) in subsection (g)(2)(B), by striking ``Secretary's 
        notice'' and inserting ``notice under subparagraph (A)''.

SEC. 604. AMENDMENTS TO CHAPTER 98 OF THE HARMONIZED TARIFF SCHEDULE OF 
                    THE UNITED STATES.

  (a) Articles Exported and Returned, Advanced or Improved Abroad.--
          (1) In general.--U.S. Note 3 to subchapter II of chapter 98 
        of the Harmonized Tariff Schedule of the United States is 
        amended by adding at the end the following:
  ``(f)(1) For purposes of subheadings 9802.00.40 and 9802.00.50, 
fungible articles exported from the United States for the purposes 
described in such subheadings--
          ``(A) may be commingled; and
          ``(B) the origin, value, and classification of such articles 
        may be accounted for using an inventory management method.
  ``(2) If a person chooses to use an inventory management method under 
this paragraph with respect to fungible articles, the person shall use 
the same inventory management method for any other articles with 
respect to which the person claims fungibility under this paragraph.
  ``(3) For the purposes of this paragraph--
          ``(A) the term `fungible articles' means merchandise or 
        articles that, for commercial purposes, are identical or 
        interchangeable in all situations; and
          ``(B) the term `inventory management method' means any method 
        for managing inventory that is based on generally accepted 
        accounting principles.''.
          (2) Effective date.--The amendment made by this subsection 
        applies to articles classifiable under subheading 9802.00.40 or 
        9802.00.50 of the Harmonized Tariff Schedule of the United 
        States that are entered, or withdrawn from warehouse for 
        consumption, on or after the date that is 60 days after the 
        date of the enactment of this Act.
  (b) Modification of Provisions Relating to Returned Property.--
          (1) In general.--The article description for heading 
        9801.00.10 of the Harmonized Tariff Schedule of the United 
        States is amended by inserting after ``exported'' the 
        following: ``, or any other products when returned within 3 
        years after having been exported''.
          (2) Effective date.--The amendment made by paragraph (1) 
        applies to articles entered, or withdrawn from warehouse for 
        consumption, on or after the date that is 60 days after the 
        date of the enactment of this Act.
  (c) Duty-free Treatment for Certain United States Government Property 
Returned to the United States.--
          (1) In general.--Subchapter I of chapter 98 of the Harmonized 
        Tariff Schedule of the United States is amended by inserting in 
        numerical sequence the following new heading:


``            9801.00.11    United States     Free         ............  ............  ............      ''.
                             Government
                             property,
                             returned to the
                             United States
                             without having
                             been advanced
                             in value or
                             improved in
                             condition by
                             any means while
                             abroad, entered
                             by the United
                             States
                             Government or a
                             contractor to
                             the United
                             States
                             Government, and
                             certified by
                             the importer as
                             United States
                             Government
                             property.......


          (2) Effective date.--The amendment made by paragraph (1) 
        applies to goods entered, or withdrawn from warehouse for 
        consumption, on or after the date that is 60 days after the 
        date of the enactment of this Act.

SEC. 605. EXEMPTION FROM DUTY OF RESIDUE OF BULK CARGO CONTAINED IN 
                    INSTRUMENTS OF INTERNATIONAL TRAFFIC PREVIOUSLY 
                    EXPORTED FROM THE UNITED STATES.

  (a) In General.--General Note 3(e) of the Harmonized Tariff Schedule 
of the United States is amended--
          (1) in subparagraph (v), by striking ``and'' at the end;
          (2) in subparagraph (vi), by adding ``and'' at the end;
          (3) by inserting after subparagraph (vi) (as so amended) the 
        following new subparagraph:
                  ``(vii) residue of bulk cargo contained in 
                instruments of international traffic previously 
                exported from the United States,''; and
          (4) by adding at the end of the flush text following 
        subparagraph (vii) (as so added) the following: ``For purposes 
        of subparagraph (vii) of this paragraph: The term `residue' 
        means material of bulk cargo that remains in an instrument of 
        international traffic after the bulk cargo is removed, with a 
        quantity, by weight or volume, not exceeding 7 percent of the 
        bulk cargo, and with no or de minimis value. The term `bulk 
        cargo' means cargo that is unpackaged and is in either solid, 
        liquid, or gaseous form. The term `instruments of international 
        traffic' means containers or holders, capable of and suitable 
        for repeated use, such as lift vans, cargo vans, shipping 
        tanks, skids, pallets, caul boards, and cores for textile 
        fabrics, arriving (whether loaded or empty) in use or to be 
        used in the shipment of merchandise in international traffic, 
        and any additional articles or classes of articles that the 
        Commissioner responsible for U.S. Customs and Border Protection 
        designates as instruments of international traffic.''.
  (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date of the enactment of this Act and apply with respect 
to residue of bulk cargo contained in instruments of international 
traffic that are imported into the customs territory of the United 
States on or after such date of enactment and that previously have been 
exported from the United States.

SEC. 606. DRAWBACK AND REFUNDS.

  (a) Articles Made From Imported Merchandise.--Section 313(a) of the 
Tariff Act of 1930 (19 U.S.C. 1313(a)) is amended by striking ``the 
full amount of the duties paid upon the merchandise so used shall be 
refunded as drawback, less 1 per centum of such duties, except that 
such'' and inserting ``an amount calculated pursuant to regulations 
prescribed by the Secretary of the Treasury under subsection (l) shall 
be refunded as drawback, except that''.
  (b) Substitution for Drawback Purposes.--Section 313(b) of the Tariff 
Act of 1930 (19 U.S.C. 1313(b)) is amended--
          (1) by striking ``If imported'' and inserting the following:
          ``(1) In general.--If imported'';
          (2) by striking ``and any other merchandise (whether imported 
        or domestic) of the same kind and quality are'' and inserting 
        ``or merchandise classifiable under the same 8-digit HTS 
        subheading number as such imported merchandise is'';
          (3) by striking ``three years'' and inserting ``5 years'';
          (4) by striking ``the receipt of such imported merchandise by 
        the manufacturer or producer of such articles'' and inserting 
        ``the date of importation of such imported merchandise'';
          (5) by inserting ``or articles classifiable under the same 8-
        digit HTS subheading number as such articles,'' after ``any 
        such articles,'';
          (6) by striking ``an amount of drawback equal to'' and all 
        that follows through the end period and inserting ``an amount 
        calculated pursuant to regulations prescribed by the Secretary 
        of the Treasury under subsection (l), but only if those 
        articles have not been used prior to such exportation or 
        destruction.''; and
          (7) by adding at the end the following:
          ``(2) Requirements relating to transfer of merchandise.--
                  ``(A) Manufacturers and producers.--Drawback shall be 
                allowed under paragraph (1) with respect to an article 
                manufactured or produced using imported merchandise or 
                other merchandise classifiable under the same 8-digit 
                HTS subheading number as such imported merchandise only 
                if the manufacturer or producer of the article received 
                such imported merchandise or such other merchandise, 
                directly or indirectly, from the importer.
                  ``(B) Exporters and destroyers.--Drawback shall be 
                allowed under paragraph (1) with respect to a 
                manufactured or produced article that is exported or 
                destroyed only if the exporter or destroyer received 
                that article or an article classifiable under the same 
                8-digit HTS subheading number as that article, directly 
                or indirectly, from the manufacturer or producer.
                  ``(C) Evidence of transfer.--Transfers of merchandise 
                under subparagraph (A) and transfers of articles under 
                subparagraph (B) may be evidenced by business records 
                kept in the normal course of business and no additional 
                certificates of transfer or manufacture shall be 
                required.
          ``(3) Submission of bill of materials or formula.--
                  ``(A) In general.--Drawback shall be allowed under 
                paragraph (1) with respect to an article manufactured 
                or produced using imported merchandise or other 
                merchandise classifiable under the same 8-digit HTS 
                subheading number as such imported merchandise only if 
                the person making the drawback claim submits with the 
                claim a bill of materials or formula identifying the 
                merchandise and article by the 8-digit HTS subheading 
                number and the quantity of the merchandise.
                  ``(B) Bill of materials and formula defined.--In this 
                paragraph, the terms `bill of materials' and `formula' 
                mean records kept in the normal course of business that 
                identify each component incorporated into a 
                manufactured or produced article or that identify the 
                quantity of each element, material, chemical, mixture, 
                or other substance incorporated into a manufactured 
                article.
          ``(4) Special rule for sought chemical elements.--
                  ``(A) In general.--For purposes of paragraph (1), a 
                sought chemical element may be--
                          ``(i) considered imported merchandise, or 
                        merchandise classifiable under the same 8-digit 
                        HTS subheading number as such imported 
                        merchandise, used in the manufacture or 
                        production of an article as described in 
                        paragraph (1); and
                          ``(ii) substituted for source material 
                        containing that sought chemical element, 
                        without regard to whether the sought chemical 
                        element and the source material are 
                        classifiable under the same 8-digit HTS 
                        subheading number, and apportioned 
                        quantitatively, as appropriate.
                  ``(B) Sought chemical element defined.--In this 
                paragraph, the term `sought chemical element' means an 
                element listed in the Periodic Table of Elements that 
                is imported into the United States or a chemical 
                compound consisting of those elements, either 
                separately in elemental form or contained in source 
                material.''.
  (c) Merchandise Not Conforming to Sample or Specifications.--Section 
313(c) of the Tariff Act of 1930 (19 U.S.C. 1313(c)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (C)(ii), by striking ``under a 
                certificate of delivery'' each place it appears;
                  (B) in subparagraph (D)--
                          (i) by striking ``3'' and inserting ``5''; 
                        and
                          (ii) by striking ``the Customs Service'' and 
                        inserting ``U.S. Customs and Border 
                        Protection''; and
                  (C) in the flush text at the end, by striking ``the 
                full amount of the duties paid upon such merchandise, 
                less 1 percent,'' and inserting ``an amount calculated 
                pursuant to regulations prescribed by the Secretary of 
                the Treasury under subsection (l)'';
          (2) in paragraph (2), by striking ``the Customs Service'' and 
        inserting ``U.S. Customs and Border Protection''; and
          (3) by amending paragraph (3) to read as follows:
          ``(3) Evidence of transfers.--Transfers of merchandise under 
        paragraph (1) may be evidenced by business records kept in the 
        normal course of business and no additional certificates of 
        transfer shall be required.''.
  (d) Proof of Exportation.--Section 313(i) of the Tariff Act of 1930 
(19 U.S.C. 1313(i)) is amended to read as follows:
  ``(i) Proof of Exportation.--A person claiming drawback under this 
section based on the exportation of an article shall provide proof of 
the exportation of the article. Such proof of exportation--
          ``(1) shall establish fully the date and fact of exportation 
        and the identity of the exporter; and
          ``(2) may be established through the use of records kept in 
        the normal course of business or through an electronic export 
        system of the United States Government, as determined by the 
        Commissioner responsible for U.S. Customs and Border 
        Protection.''.
  (e) Unused Merchandise Drawback.--Section 313(j) of the Tariff Act of 
1930 (19 U.S.C. 1313(j)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A), in the matter preceding 
                clause (i)--
                          (i) by striking ``3-year'' and inserting ``5-
                        year''; and
                          (ii) by inserting ``and before the drawback 
                        claim is filed'' after ``the date of 
                        importation''; and
                  (B) in the flush text at the end, by striking ``99 
                percent of the amount of each duty, tax, or fee so 
                paid'' and inserting ``an amount calculated pursuant to 
                regulations prescribed by the Secretary of the Treasury 
                under subsection (l)'';
          (2) in paragraph (2)--
                  (A) in the matter preceding subparagraph (A), by 
                striking ``paragraph (4)'' and inserting ``paragraphs 
                (4), (5), and (6)'';
                  (B) in subparagraph (A), by striking ``commercially 
                interchangeable with'' and inserting ``classifiable 
                under the same 8-digit HTS subheading number as'';
                  (C) in subparagraph (B)--
                          (i) by striking ``3-year'' and inserting ``5-
                        year''; and
                          (ii) by inserting ``and before the drawback 
                        claim is filed'' after ``the imported 
                        merchandise''; and
                  (D) in subparagraph (C)(ii), by striking subclause 
                (II) and inserting the following:
                                  ``(II) received the imported 
                                merchandise, other merchandise 
                                classifiable under the same 8-digit HTS 
                                subheading number as such imported 
                                merchandise, or any combination of such 
                                imported merchandise and such other 
                                merchandise, directly or indirectly 
                                from the person who imported and paid 
                                any duties, taxes, and fees imposed 
                                under Federal law upon importation or 
                                entry and due on the imported 
                                merchandise (and any such transferred 
                                merchandise, regardless of its origin, 
                                will be treated as the imported 
                                merchandise and any retained 
                                merchandise will be treated as domestic 
                                merchandise);'';
                  (E) in the flush text at the end--
                          (i) by striking ``the amount of each such 
                        duty, tax, and fee'' and all that follows 
                        through ``99 percent of that duty, tax, or 
                        fee'' and inserting ``an amount calculated 
                        pursuant to regulations prescribed by the 
                        Secretary of the Treasury under subsection (l) 
                        shall be refunded as drawback''; and
                          (ii) by striking the last sentence and 
                        inserting the following: ``Notwithstanding 
                        subparagraph (A), drawback shall be allowed 
                        under this paragraph with respect to wine if 
                        the imported wine and the exported wine are of 
                        the same color and the price variation between 
                        the imported wine and the exported wine does 
                        not exceed 50 percent. Transfers of merchandise 
                        may be evidenced by business records kept in 
                        the normal course of business and no additional 
                        certificates of transfer shall be required.''; 
                        and
          (3) in paragraph (3)(B), by striking ``the commercially 
        interchangeable merchandise'' and inserting ``merchandise 
        classifiable under the same 8-digit HTS subheading number as 
        such imported merchandise''; and
          (4) by adding at the end the following:
          ``(5)(A) For purposes of paragraph (2) and except as provided 
        in subparagraph (B), merchandise may not be substituted for 
        imported merchandise for drawback purposes based on the 8-digit 
        HTS subheading number if the article description for the 8-
        digit HTS subheading number under which the imported 
        merchandise is classified begins with the term `other'.
          ``(B) In cases described in subparagraph (A), merchandise may 
        be substituted for imported merchandise for drawback purposes 
        if--
                  ``(i) the other merchandise and such imported 
                merchandise are classifiable under the same 10-digit 
                HTS statistical reporting number; and
                  ``(ii) the article description for that 10-digit HTS 
                statistical reporting number does not begin with the 
                term `other'.
          ``(6)(A) For purposes of paragraph (2), a drawback claimant 
        may use the first 8 digits of the 10-digit Schedule B number 
        for merchandise or an article to determine if the merchandise 
        or article is classifiable under the same 8-digit HTS 
        subheading number as the imported merchandise, without regard 
        to whether the Schedule B number corresponds to more than one 
        8-digit HTS subheading number.
          ``(B) In this paragraph, the term `Schedule B' means the 
        Department of Commerce Schedule B, Statistical Classification 
        of Domestic and Foreign Commodities Exported from the United 
        States.''.
  (f) Liability for Drawback Claims.--Section 313(k) of the Tariff Act 
of 1930 (19 U.S.C. 1313(k)) is amended to read as follows:
  ``(k) Liability for Drawback Claims.--
          ``(1) In general.--Any person making a claim for drawback 
        under this section shall be liable for the full amount of the 
        drawback claimed.
          ``(2) Liability of importers.--An importer shall be liable 
        for any drawback claim made by another person with respect to 
        merchandise imported by the importer in an amount equal to the 
        lesser of--
                  ``(A) the amount of duties, taxes, and fees that the 
                person claimed with respect to the imported 
                merchandise; or
                  ``(B) the amount of duties, taxes, and fees that the 
                importer authorized the other person to claim with 
                respect to the imported merchandise.
          ``(3) Joint and several liability.--Persons described in 
        paragraphs (1) and (2) shall be jointly and severally liable 
        for the amount described in paragraph (2).''.
  (g) Regulations.--Section 313(l) of the Tariff Act of 1930 (19 U.S.C. 
1313(l)) is amended to read as follows:
  ``(l) Regulations.--
          ``(1) In general.--Allowance of the privileges provided for 
        in this section shall be subject to compliance with such rules 
        and regulations as the Secretary of the Treasury shall 
        prescribe.
          ``(2) Calculation of drawback.--
                  ``(A) In general.--Not later than the date that is 2 
                years after the date of the enactment of the Trade 
                Facilitation and Trade Enforcement Act of 2015 (or, if 
                later, the effective date provided for in section 
                406(q)(2)(B) of that Act), the Secretary shall 
                prescribe regulations for determining the calculation 
                of amounts refunded as drawback under this section.
                  ``(B) Requirements.--The regulations required by 
                subparagraph (A) for determining the calculation of 
                amounts refunded as drawback under this section shall 
                provide for a refund of equal to 99 percent of the 
                duties, taxes, and fees paid with respect to the 
                imported merchandise, except that where there is 
                substitution of the merchandise or article, then--
                          ``(i) in the case of an article that is 
                        exported, the amount of the refund shall be 
                        equal to 99 percent of the lesser of--
                                  ``(I) the amount of duties, taxes, 
                                and fees paid with respect to the 
                                imported merchandise; or
                                  ``(II) the amount of duties, taxes, 
                                and fees that would apply to the 
                                exported article if the exported 
                                article were imported; and
                          ``(ii) in the case of an article that is 
                        destroyed, the amount of the refund shall be an 
                        amount that is--
                                  ``(I) equal to 99 percent of the 
                                lesser of--
                                          ``(aa) the amount of duties, 
                                        taxes, and fees paid with 
                                        respect to the imported 
                                        merchandise; and
                                          ``(bb) the amount of duties, 
                                        taxes, and fees that would 
                                        apply to the destroyed article 
                                        if the destroyed article were 
                                        imported; and
                                  ``(II) reduced by the value of 
                                materials recovered during destruction 
                                as provided in subsection (x).
          ``(3) Status reports on regulations.--Not later than the date 
        that is one year after the date of the enactment of the Trade 
        Facilitation and Trade Enforcement Act of 2015, and annually 
        thereafter until the regulations required by paragraph (2) are 
        final, the Secretary shall submit to Congress a report on the 
        status of those regulations.''.
  (h) Substitution of Finished Petroleum Derivatives.--Section 313(p) 
of the Tariff Act of 1930 (19 U.S.C. 1313(p)) is amended--
          (1) by striking ``Harmonized Tariff Schedule of the United 
        States'' each place it appears and inserting ``HTS''; and
          (2) in paragraph (3)(A)--
                  (A) in clause (ii)(III), by striking ``, as so 
                certified in a certificate of delivery or certificate 
                of manufacture and delivery''; and
                  (B) in the flush text at the end--
                          (i) by striking ``, so designated on the 
                        certificate of delivery or certificate of 
                        manufacture and delivery''; and
                          (ii) by striking the last sentence and 
                        inserting the following: ``The party 
                        transferring the merchandise shall maintain 
                        records kept in the normal course of business 
                        to demonstrate the transfer.''.
  (i) Packaging Material.--Section 313(q) of the Tariff Act of 1930 (19 
U.S.C. 1313(q)) is amended--
          (1) in paragraph (1), by striking ``of 99 percent of any 
        duty, tax, or fee imposed under Federal law on such imported 
        material'' and inserting ``in an amount calculated pursuant to 
        regulations prescribed by the Secretary of the Treasury under 
        subsection (l)'';
          (2) in paragraph (2), by striking ``of 99 percent of any 
        duty, tax, or fee imposed under Federal law on the imported or 
        substituted merchandise used to manufacture or produce such 
        material'' and inserting ``in an amount calculated pursuant to 
        regulations prescribed by the Secretary of the Treasury under 
        subsection (l)''; and
          (3) in paragraph (3), by striking ``they contain'' and 
        inserting ``it contains''.
  (j) Filing of Drawback Claims.--Section 313(r) of the Tariff Act of 
1930 (19 U.S.C. 1313(r)) is amended--
          (1) in paragraph (1)--
                  (A) by striking the first sentence and inserting the 
                following: ``A drawback entry shall be filed or applied 
                for, as applicable, not later than 5 years after the 
                date on which merchandise on which drawback is claimed 
                was imported.'';
                  (B) in the second sentence, by striking ``3-year'' 
                and inserting ``5-year''; and
                  (C) in the third sentence, by striking ``the Customs 
                Service'' and inserting ``U.S. Customs and Border 
                Protection'';
          (2) in paragraph (3)--
                  (A) in subparagraph (A)--
                          (i) in the matter preceding clause (i), by 
                        striking ``The Customs Service'' and inserting 
                        ``U.S. Customs and Border Protection'';
                          (ii) in clauses (i) and (ii), by striking 
                        ``the Customs Service'' each place it appears 
                        and inserting ``U.S. Customs and Border 
                        Protection''; and
                          (iii) in clause (ii)(I), by striking ``3-
                        year'' and inserting ``5-year''; and
                  (B) in subparagraph (B), by striking ``the periods of 
                time for retaining records set forth in subsection (t) 
                of this section and'' and inserting ``the period of 
                time for retaining records set forth in''; and
          (3) by adding at the end the following:
          ``(4) All drawback claims filed on and after the date that is 
        2 years after the date of the enactment of the Trade 
        Facilitation and Trade Enforcement Act of 2015 (or, if later, 
        the effective date provided for in section 406(q)(2)(B) of that 
        Act) shall be filed electronically.''.
  (k) Designation of Merchandise by Successor.--Section 313(s) of the 
Tariff Act of 1930 (19 U.S.C. 1313(s)) is amended--
          (1) in paragraph (2), by striking subparagraph (B) and 
        inserting the following:
                  ``(B) subject to paragraphs (5) and (6) of subsection 
                (j), imported merchandise, other merchandise 
                classifiable under the same 8-digit HTS subheading 
                number as such imported merchandise, or any combination 
                of such imported merchandise and such other 
                merchandise, that the predecessor received, before the 
                date of succession, from the person who imported and 
                paid any duties, taxes, and fees due on the imported 
                merchandise;''; and
          (2) in paragraph (4), by striking ``certifies that'' and all 
        that follows and inserting ``certifies that the transferred 
        merchandise was not and will not be claimed by the 
        predecessor.''.
  (l) Drawback Certificates.--Section 313 of the Tariff Act of 1930 (19 
U.S.C. 1313) is amended by striking subsection (t).
  (m) Drawback for Recovered Materials.--Section 313(x) of the Tariff 
Act of 1930 (19 U.S.C. 1313(x)) is amended by striking ``and (c)'' and 
inserting ``(c), and (j)''.
  (n) Definitions.--Section 313 of the Tariff Act of 1930 (19 U.S.C. 
1313) is amended by adding at the end the following:
  ``(z) Definitions.--In this section:
          ``(1) Directly.--The term `directly' means a transfer of 
        merchandise or an article from one person to another person 
        without any intermediate transfer.
          ``(2) HTS.--The term `HTS' means the Harmonized Tariff 
        Schedule of the United States.
          ``(3) Indirectly.--The term `indirectly' means a transfer of 
        merchandise or an article from one person to another person 
        with one or more intermediate transfers.''.
  (o) Recordkeeping.--Section 508(c)(3) of the Tariff Act of 1930 (19 
U.S.C. 1508(c)(3)) is amended--
          (1) by striking ``3rd'' and inserting ``5th''; and
          (2) by striking ``payment'' and inserting ``liquidation''.
  (p) Government Accountability Office Report.--
          (1) In general.--Not later than one year after the issuance 
        of the regulations required by subsection (l)(2) of section 313 
        of the Tariff Act of 1930, as added by subsection (g), the 
        Comptroller General of the United States shall submit to the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives a report on the 
        modernization of drawback and refunds under section 313 of the 
        Tariff Act of 1930, as amended by this section.
          (2) Contents.--The report required by paragraph (1) include 
        the following:
                  (A) An assessment of the modernization of drawback 
                and refunds under section 313 of the Tariff Act of 
                1930, as amended by this section.
                  (B) A description of drawback claims that were 
                permissible before the effective date provided for in 
                subsection (q) that are not permissible after that 
                effective date and an identification of industries most 
                affected.
                  (C) A description of drawback claims that were not 
                permissible before the effective date provided for in 
                subsection (q) that are permissible after that 
                effective date and an identification of industries most 
                affected.
  (q) Effective Date.--
          (1) In general.--The amendments made by this section shall--
                  (A) take effect on the date of the enactment of this 
                Act; and
                  (B) apply to drawback claims filed on or after the 
                date that is 2 years after such date of enactment.
          (2) Reporting of operability of automated commercial 
        environment computer system.--Not later than one year after the 
        date of the enactment of this Act, and not later than 2 years 
        after such date of enactment, the Secretary of the Treasury 
        shall submit to Congress a report on--
                  (A) the date on which the Automated Commercial 
                Environment will be ready to process drawback claims; 
                and
                  (B) the date on which the Automated Export System 
                will be ready to accept proof of exportation under 
                subsection (i) of section 313 of the Tariff Act of 
                1930, as amended by subsection (d).
          (3) Transition rule.--During the one-year period beginning on 
        the date that is 2 years after the date of the enactment of 
        this Act (or, if later, the effective date provided for in 
        paragraph (2)(B)), a person may elect to file a claim for 
        drawback under--
                  (A) section 313 of the Tariff Act of 1930, as amended 
                by this section; or
                  (B) section 313 of the Tariff Act of 1930, as in 
                effect on the day before the date of the enactment of 
                this Act.

SEC. 607. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.

  (a) Annual Report on Trade Agreements Program and National Trade 
Policy Agenda.--Section 163(a) of the Trade Act of 1974 (19 U.S.C. 
2213(a)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A), by striking ``and'' at the 
                end;
                  (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                  (C) by adding at the end the following:
                  ``(C) the operation of all United States Trade 
                Representative-led interagency programs during the 
                preceding year and for the year in which the report is 
                submitted.''; and
          (2) by adding at the end the following:
          ``(4) The report shall include, with respect to the matters 
        referred to in paragraph (1)(C), information regarding--
                  ``(A) the objectives and priorities of all United 
                States Trade Representative-led interagency programs 
                for the year, and the reasons therefor;
                  ``(B) the actions proposed, or anticipated, to be 
                undertaken during the year to achieve such objectives 
                and priorities, including actions authorized under the 
                trade laws and negotiations with foreign countries;
                  ``(C) the role of each Federal agency participating 
                in the interagency program in achieving such objectives 
                and priorities and activities of each agency with 
                respect to their participation in the program;
                  ``(D) the United States Trade Representative's 
                coordination of each participating Federal agency to 
                more effectively achieve such objectives and 
                priorities;
                  ``(E) any proposed legislation necessary or 
                appropriate to achieve any of such objectives or 
                priorities; and
                  ``(F) the progress that was made during the preceding 
                year in achieving such objectives and priorities and 
                coordination activities included in the statement 
                provided for such year under this paragraph.''.
  (b) Resource Management and Staffing Plans.--
          (1) Annual plan.--
                  (A) In general.--The United States Trade 
                Representative shall on an annual basis develop a 
                plan--
                          (i) to match available resources of the 
                        Office of the United States Trade 
                        Representative to projected workload and 
                        provide a detailed analysis of how the funds 
                        allocated from the prior fiscal year to date 
                        have been spent;
                          (ii) to identify existing staff of the Office 
                        and new staff that will be necessary to support 
                        the trade negotiation and enforcement functions 
                        and powers of the Office (including those of 
                        the Trade Policy Staff Committee) as described 
                        in section 141 of the Trade Act of 1974 (19 
                        U.S.C. 2171) and section 301 of the Trade Act 
                        of 1974 (19 U.S.C. 2411);
                          (iii) to identify existing staff of the 
                        Office and staff of other Federal agencies who 
                        will be required to be detailed to support 
                        United States Trade Representative-led 
                        interagency programs, including any associated 
                        expenses; and
                          (iv) to provide a detailed analysis of the 
                        budgetary requirements of United States Trade 
                        Representative-led interagency programs for the 
                        next fiscal year and provide a detailed 
                        analysis of how the funds allocated from the 
                        prior fiscal year to date have been spent.
                  (B) Report.--The United States Trade Representative 
                shall submit to the Committee on Ways and Means and the 
                Committee on Appropriations of the House of 
                Representatives and the Committee on Finance and the 
                Committee on Appropriations of the Senate a report that 
                contains the plan required under subparagraph (A). The 
                report required under this subparagraph shall be 
                submitted in conjunction with the annual budget of the 
                United States Government required to be submitted to 
                Congress under section 1105 of title 31, United States 
                Code.
          (2) Quadrennial plan.--
                  (A) In general.--Pursuant to the goals and objectives 
                of the strategic plan of the Office of the United 
                States Trade Representative as required under section 
                306 of title 5, United States Code, the United States 
                Trade Representative shall every 4 years develop a 
                plan--
                          (i) to analyze internal quality controls and 
                        record management of the Office;
                          (ii) to identify existing staff of the Office 
                        and new staff that will be necessary to support 
                        the trade negotiation and enforcement functions 
                        and powers of the Office (including those of 
                        the Trade Policy Staff Committee) as described 
                        in section 141 of the Trade Act of 1974 (19 
                        U.S.C. 2171) and section 301 of the Trade Act 
                        of 1974 (19 U.S.C. 2411);
                          (iii) to identify existing staff of the 
                        Office and staff in other Federal agencies who 
                        will be required to be detailed to support 
                        United States Trade Representative-led 
                        interagency programs, including any associated 
                        expenses;
                          (iv) to provide an outline of budget 
                        justifications, including salaries and expenses 
                        as well as non-personnel administrative 
                        expenses, for the fiscal years required under 
                        the strategic plan; and
                          (v) to provide an outline of budget 
                        justifications, including salaries and expenses 
                        as well as non-personnel administrative 
                        expenses, for United States Trade 
                        Representative-led interagency programs for the 
                        fiscal years required under the strategic plan.
                  (B) Report.--
                          (i) In general.--The United States Trade 
                        Representative shall submit to the Committee on 
                        Ways and Means and the Committee on 
                        Appropriations of the House of Representatives 
                        and the Committee on Finance and the Committee 
                        on Appropriations of the Senate a report that 
                        contains the plan required under subparagraph 
                        (A). Except as provided in clause (ii), the 
                        report required under this clause shall be 
                        submitted in conjunction with the strategic 
                        plan of the Office as required under section 
                        306 of title 5, United States Code.
                          (ii) Exception.--The United States Trade 
                        Representative shall submit to the 
                        congressional committees specified in clause 
                        (i) an initial report that contains the plan 
                        required under subparagraph (A) not later than 
                        February 1, 2016.

SEC. 608. UNITED STATES-ISRAEL TRADE AND COMMERCIAL ENHANCEMENT.

  (a) Findings.--Congress finds the following:
          (1) Israel is America's dependable, democratic ally in the 
        Middle East--an area of paramount strategic importance to the 
        United States.
          (2) The United States-Israel Free Trade Agreement formed the 
        modern foundation of the bilateral commercial relationship 
        between the two countries and was the first such agreement 
        signed by the United States with a foreign country.
          (3) The United States-Israel Free Trade Agreement has been 
        instrumental in expanding commerce and the strategic 
        relationship between the United States and Israel.
          (4) More than $45 billion in goods and services is traded 
        annually between the two countries in addition to roughly $10 
        billion in United States foreign direct investment in Israel.
          (5) The United States continues to look for and find new 
        opportunities to enhance cooperation with Israel, including 
        through the enactment of the United States-Israel Enhanced 
        Security Cooperation Act of 2012 (Public Law 112-150) and the 
        United States-Israel Strategic Partnership Act of 2014 (Public 
        Law 113-296).
          (6) It has been the policy of the United States Government to 
        combat all elements of the Arab League Boycott of Israel by--
                  (A) public statements of Administration officials;
                  (B) enactment of relevant sections of the Export 
                Administration Act of 1979 (as continued in effect 
                pursuant to the International Emergency Economic Powers 
                Act), including sections to ensure foreign persons 
                comply with applicable reporting requirements relating 
                to the boycott;
                  (C) enactment of the 1976 Tax Reform Act (Public Law 
                94-455) that denies certain tax benefits to entities 
                abiding by the boycott;
                  (D) ensuring through free trade agreements with 
                Bahrain and Oman that such countries no longer 
                participate in the boycott; and
                  (E) ensuring as a condition of membership in the 
                World Trade Organization that Saudi Arabia no longer 
                enforces the secondary or tertiary elements of the 
                boycott.
  (b) Statements of Policy.--Congress--
          (1) supports the strengthening of United States-Israel 
        economic cooperation and recognizes the tremendous strategic, 
        economic, and technological value of cooperation with Israel;
          (2) recognizes the benefit of cooperation with Israel to 
        United States companies, including by improving American 
        competitiveness in global markets;
          (3) recognizes the importance of trade and commercial 
        relations to the pursuit and sustainability of peace, and 
        supports efforts to bring together the United States, Israel, 
        the Palestinian territories, and others in enhanced commerce;
          (4) opposes politically motivated actions that penalize or 
        otherwise limit commercial relations specifically with Israel 
        such as boycotts, divestment or sanctions;
          (5) notes that the boycott, divestment, and sanctioning of 
        Israel by governments, governmental bodies, quasi-governmental 
        bodies, international organizations, and other such entities is 
        contrary to the General Agreement on Tariffs and Trade (GATT) 
        principle of non-discrimination;
          (6) encourages the inclusion of politically motivated actions 
        that penalize or otherwise limit commercial relations 
        specifically with Israel such as boycotts, divestment from, or 
        sanctions against Israel as a topic of discussion at the U.S.-
        Israel Joint Economic Development Group (JEDG) and other areas 
        to support the strengthening of the United States-Israel 
        commercial relationship and combat any commercial 
        discrimination against Israel;
          (7) supports efforts to prevent investigations or 
        prosecutions by governments or international organizations of 
        United States persons on the sole basis of such persons doing 
        business with Israel, with Israeli entities, or in Israeli-
        controlled territories; and
          (8) supports American States examining a company's promotion 
        or compliance with unsanctioned boycotts, divestment from, or 
        sanctions against Israel as part of its consideration in 
        awarding grants and contracts and supports the divestment of 
        State assets from companies that support or promote actions to 
        boycott, divest from, or sanction Israel.
  (c) Principal Trade Negotiating Objectives of the United States.--
          (1) Commercial partnerships.--Among the principal trade 
        negotiating objectives of the United States for proposed trade 
        agreements with foreign countries regarding commercial 
        partnerships are the following:
                  (A) To discourage actions by potential trading 
                partners that directly or indirectly prejudice or 
                otherwise discourage commercial activity solely between 
                the United States and Israel.
                  (B) To discourage politically motivated actions to 
                boycott, divest from, or sanction Israel and to seek 
                the elimination of politically motivated non-tariff 
                barriers on Israeli goods, services, or other commerce 
                imposed on the State of Israel.
                  (C) To seek the elimination of state-sponsored 
                unsanctioned foreign boycotts against Israel or 
                compliance with the Arab League Boycott of Israel by 
                prospective trading partners.
          (2) Effective date.--This subsection takes effect on the date 
        of the enactment of this Act and applies with respect to 
        negotiations commenced before, on, or after the date of the 
        enactment of this Act.
  (d) Report on Politically Motivated Acts of Boycott, Divestment From, 
and Sanctions Against Israel.--
          (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and annually thereafter, the 
        President shall submit to Congress a report on politically 
        motivated acts of boycott, divestment from, and sanctions 
        against Israel.
          (2) Matters to be included.--The report required by paragraph 
        (1) shall include the following:
                  (A) A description of the establishment of barriers to 
                trade, including non-tariff barriers, investment, or 
                commerce by foreign countries or international 
                organizations against United States persons operating 
                or doing business in Israel, with Israeli entities, or 
                in Israeli-controlled territories.
                  (B) A description of specific steps being taken by 
                the United States to encourage foreign countries and 
                international organizations to cease creating such 
                barriers and to dismantle measures already in place and 
                an assessment of the effectiveness of such steps.
                  (C) A description of specific steps being taken by 
                the United States to prevent investigations or 
                prosecutions by governments or international 
                organizations of United States persons on the sole 
                basis of such persons doing business with Israel, with 
                Israeli entities, or in Israeli-controlled territories.
                  (D) Decisions by foreign persons, including corporate 
                entities and state-affiliated financial institutions, 
                that limit or prohibit economic relations with Israel 
                or persons doing business in Israel or in Israeli 
                controlled territories.
  (e) Israel Trade and Commerce Boycott Reporting.--Section 13 of the 
Securities Exchange Act of 1934 (15 U.S.C. 78m) is amended by adding at 
the end the following:
  ``(s) Israel Trade and Commerce Boycott Reporting.--
          ``(1) In general.--Each foreign issuer required to file an 
        annual or quarterly report under subsection (a) shall disclose 
        in that report--
                  ``(A) whether the issuer has discriminated against 
                doing business with Israel in the last calendar year 
                and in such cases an issuer shall provide a description 
                of the discrimination.
                  ``(B) whether the issuer has been advised by a 
                foreign government or a non-member state of the United 
                Nations to discriminate against doing business with 
                Israel, entities owned or controlled by the government 
                of Israel, or entities operating in Israel or Israeli-
                controlled territory; and
                  ``(C) any instances where the issuer has learned that 
                a person, foreign government, or a non-member state of 
                the United Nations is boycotting the issuer, divesting 
                themselves of an ownership interest in the issuer, or 
                placing sanctions on the issuer because of the issuer's 
                relationship with Israel, entities owned or controlled 
                by the government of Israel, or entities operating in 
                Israel or Israeli-controlled territory.
          ``(2) Definitions.--For purposes of this subsection:
                  ``(A) Foreign issuer.--The term `foreign issuer' 
                means an issuer that is not incorporated in the United 
                States.
                  ``(B) Non-member states of the united nations.--The 
                term `non-member states of the United Nations' has the 
                meaning given such term by the United Nations.''.
  (f) Foreign Judgments Against United States Persons.--No court in the 
United States may recognize or enforce any judgment which is entered by 
a foreign court against a United States person carrying out business 
operations in Israel or in any territory controlled by Israel and on 
which is based a determination by the foreign court that the location 
in Israel, or in any territory controlled by Israel, of the facilities 
at which the business operations are carried out is sufficient to 
constitute a violation of law.
  (g) Definitions.--In this section:
          (1) Boycott, divestment from, and sanctions against israel.--
        The term ``boycott, divestment from, and sanctions against 
        Israel'' means actions by states, non-member states of the 
        United Nations, international organizations, or affiliated 
        agencies of international organizations that are politically 
        motivated and are intended to penalize or otherwise limit 
        commercial relations specifically with Israel or persons doing 
        business in Israel or in Israeli-controlled territories.
          (2) Foreign person.--The term ``foreign person'' means--
                  (A) any natural person who is not lawfully admitted 
                for permanent residence (as defined in section 
                101(a)(20) of the Immigration and Nationality Act (8 
                U.S.C. 1101(a)(20)) or who is not a protected 
                individual (as defined in section 274B(a)(3) of such 
                Act (8 U.S.C. 1324b(a)(3)); and
                  (B) any foreign corporation, business association, 
                partnership, trust, society or any other entity or 
                group that is not incorporated or organized to do 
                business in the United States, as well as any 
                international organization, foreign government and any 
                agency or subdivision of foreign government, including 
                a diplomatic mission.
          (3) Person.--
                  (A) In general.--The term ``person'' means--
                          (i) a natural person;
                          (ii) a corporation, business association, 
                        partnership, society, trust, financial 
                        institution, insurer, underwriter, guarantor, 
                        and any other business organization, any other 
                        nongovernmental entity, organization, or group, 
                        and any governmental entity operating as a 
                        business enterprise; and
                          (iii) any successor to any entity described 
                        in clause (ii).
                  (B) Application to governmental entities.--The term 
                ``person'' does not include a government or 
                governmental entity that is not operating as a business 
                enterprise.
          (4) United states person.--The term ``United States person'' 
        means--
                  (A) a natural person who is a national of the United 
                States (as defined in section 101(a)(22) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1101(a)(22))); and
                  (B) a corporation or other legal entity which is 
                organized under the laws of the United States, any 
                State or territory thereof, or the District of 
                Columbia, if natural persons described in subparagraph 
                (A) own, directly or indirectly, more than 50 percent 
                of the outstanding capital stock or other beneficial 
                interest in such legal entity.

SEC. 609. ELIMINATION OF CONSUMPTIVE DEMAND EXCEPTION TO PROHIBITION ON 
                    IMPORTATION OF GOODS MADE WITH CONVICT LABOR, 
                    FORCED LABOR, OR INDENTURED LABOR; REPORT.

  (a) Elimination of Consumptive Demand Exception.--
          (1) In general.--Section 307 of the Tariff Act of 1930 (19 
        U.S.C. 1307) is amended by striking ``The provisions of this 
        section'' and all that follows through ``of the United 
        States.''.
          (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date that is 15 days after the date of 
        the enactment of this Act.
  (b) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter, the Commissioner shall 
submit to the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives a report on compliance 
with section 307 of the Tariff Act of 1930 (19 U.S.C. 1307) that 
includes the following:
          (1) The number of instances in which merchandise was denied 
        entry pursuant to that section during the 1-year period 
        preceding the submission of the report.
          (2) A description of the merchandise denied entry pursuant to 
        that section.
          (3) Such other information as the Commissioner considers 
        appropriate with respect to monitoring and enforcing compliance 
        with that section.

SEC. 610. CUSTOMS USER FEES.

  (a) In General.--Section 13031(j)(3) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended by 
adding at the end the following:
  ``(C) Fees may be charged under paragraphs (9) and (10) of subsection 
(a) during the period beginning on July 8, 2025, and ending on July 28, 
2025.''.
  (b) Rate for Merchandise Processing Fees.--Section 503 of the United 
States-Korea Free Trade Agreement Implementation Act (Public Law 112-
41; 125 Stat. 460) is amended--
          (1) by striking ``For the period'' and inserting ``(a) In 
        General.--For the period''; and
          (2) by adding at the end the following:
  ``(b) Additional Period.--For the period beginning on July 1, 2025, 
and ending on July 14, 2025, section 13031(a)(9) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) shall 
be applied and administered--
          ``(1) in subparagraph (A), by substituting `0.3464' for 
        `0.21'; and
          ``(2) in subparagraph (B)(i), by substituting `0.3464' for 
        `0.21'.''.

SEC. 611. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER PROTECTION 
                    AGREEMENTS.

  (a) In General.--Not later than one year after entering into an 
agreement under a program specified in subsection (b), and annually 
thereafter until the termination of the program, the Commissioner shall 
submit to the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives a report that includes 
the following:
          (1) A description of the development of the program.
          (2) A description of the type of entity with which U.S. 
        Customs and Border Protection entered into the agreement and 
        the amount that entity reimbursed U.S. Customs and Border 
        Protection under the agreement.
          (3) An identification of the type of port of entry to which 
        the agreement relates and an assessment of how the agreement 
        provides economic benefits at the port of entry.
          (4) A description of the services provided by U.S. Customs 
        and Border Protection under the agreement during the year 
        preceding the submission of the report.
          (5) The amount of fees collected under the agreement during 
        that year.
          (6) A detailed accounting of how the fees collected under the 
        agreement have been spent during that year.
          (7) A summary of any complaints or criticism received by U.S. 
        Customs and Border Protection during that year regarding the 
        agreement.
          (8) An assessment of the compliance of the entity described 
        in paragraph (2) with the terms of the agreement.
          (9) Recommendations with respect to how activities conducted 
        pursuant to the agreement could function more effectively or 
        better produce economic benefits.
          (10) A summary of the benefits to and challenges faced by 
        U.S. Customs and Border Protection and the entity described in 
        paragraph (2) under the agreement.
  (b) Program Specified.--A program specified in this subsection is--
          (1) the program for entering into reimbursable fee agreements 
        for the provision of U.S. Customs and Border Protection 
        services established by section 560 of the Department of 
        Homeland Security Appropriations Act, 2013 (division D of 
        Public Law 113-6; 127 Stat. 378); or
          (2) the pilot program authorizing U.S. Customs and Border 
        Protection to enter into partnerships with private sector and 
        government entities at ports of entry established by section 
        559 of the Department of Homeland Security Appropriations Act, 
        2014 (division F of Public Law 113-76; 6 U.S.C. 211 note).

SEC. 612. CERTAIN INTEREST TO BE INCLUDED IN DISTRIBUTIONS UNDER 
                    CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000.

  (a) In General.--Notwithstanding any other provision of law, the 
Commissioner shall include in all distributions of collected 
antidumping and countervailing duties described in subsection (b) all 
interest earned on such duties, including--
          (1) interest accrued under section 778 of the Tariff Act of 
        1930 (19 U.S.C. 1677g),
          (2) interest accrued under section 505(d) of the Tariff Act 
        of 1930 (19 U.S.C. 1505(d)), and
          (3) common-law equitable interest, and all interest under 
        section 963 of the Revised Statutes of the United States (19 
        U.S.C. 580), awarded by a court against a surety's late payment 
        of antidumping or countervailing duties and interest described 
        in paragraph (1) or (2), under its bond,
which is, or was, realized through application of any payment received 
on or after October 1, 2014, by U.S. Customs and Border Protection 
under, or in connection with, any customs bond pursuant to a court 
order or judgment, or any settlement for any such bond.
  (b) Distributions Described.--The distributions described in 
subsection (a) are all distributions made on or after the date of the 
enactment of this Act pursuant to section 754 of the Tariff Act of 1930 
(19 U.S.C. 1675c) (as such section was in effect on February 7, 2006) 
of collected antidumping and countervailing duties assessed on or after 
October 1, 2000, on entries made through September 30, 2007.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    The Trade Facilitation and Trade Enforcement Act of 2015 
focuses on several critical aspects of the mission of U.S. 
Customs and Border Protection (CBP) such as trade facilitation, 
trade enforcement, security, and modernization, as well as 
enhancing transparency and accountability within the agency.
    Title I reaffirms CBP's trade facilitation and trade 
enforcement missions through the establishment and 
reauthorization of programs intended to streamline trade, 
improve trade enforcement, and measure progress within CBP in 
order to move the ever-increasing volume of legitimate trade 
more efficiently and halt trade that does not comply with U.S. 
laws.
    CBP has existing partnership programs, such as the Customs-
Trade Partnership Against Terrorism (C-TPAT), a customs-trade 
partnership program that allows for better risk assessment and 
targeting. The partnership establishes supply chain criteria 
for members to meet and in return, provides benefits like 
expedited trade processing. To advance the security, trade 
enforcement, and trade facilitation missions of CBP, this bill 
requires CBP to ensure that any existing and future partnership 
programs will provide meaningful trade benefits to members.
    To increase accountability, the bill has numerous reporting 
requirements for CBP on its trade enforcement, trade 
facilitation, and revenue functions; establishes performance 
measures for key CBP programs; and requires consultations with 
Congress and the private sector to improve transparency.
    The bill strengthens and establishes reporting requirements 
for existing CBP trade facilitation and enforcement programs, 
such as the Centers for Excellence and Expertise, the Automated 
Commercial Environment (ACE), and the government-wide 
International Trade Data System (ITDS).
    To improve internal controls over importers and 
accountability of brokers, the bill requires CBP to develop 
criteria for assigning importer-of-record numbers, imposes 
requirements on new importers, and requires brokers to collect 
additional information on the identity of importers, with 
penalties for failure to comply.
    Title II would establish an interagency import safety 
working group, led by the Department of Homeland Security, that 
is tasked with developing an import safety rapid response plan 
that establishes protocols and practices CBP should use when 
responding to cargo that poses a threat to the health or safety 
of U.S. consumers.
    To strengthen CBP's enforcement of intellectual property 
rights, Title III would authorize and direct CBP to share 
information with right holders to quickly ascertain whether a 
suspect good crossing the U.S. border at a port of entry 
violates a copyright or trademark. It also authorizes a seizure 
if CBP determines suspect merchandise is a circumvention device 
and directs CBP to notify an injured right holder of this 
seizure under certain circumstances. The bill further 
establishes the National Intellectual Property Rights 
Coordination Center within U.S. Immigration and Customs 
Enforcement (ICE), imposes reporting requirements on CBP 
enforcement efforts, and requires coordination with foreign and 
domestic law enforcement.
    Title IV establishes tools for CBP and holds the agency 
accountable to effectively act against evasion of antidumping 
and countervailing duties, and grants the U.S. Department of 
Commerce authority to use its product, industry, and 
investigatory expertise to investigate evasion of antidumping 
and countervailing duties.
    Title V provides additional enforcement tools for the 
Administration. The bill would require the Administration to 
identify enforcement priorities and more regularly consult with 
Congress on its overall enforcement strategy. It would also 
allow the Administration to reinstate a retaliatory action 
under the auspices of the World Trade Organization, if such 
action has previously terminated, under certain conditions. To 
assist in tracking import volumes, the bill would require the 
U.S. International Trade Commission to create a web-based 
import-monitoring tool to provide data on the volume and value 
of imports.
    Title VI reduces paperwork burdens for low value shipments, 
U.S. goods returned, residue of bulk cargo contained in 
instruments of international traffic, and drawback. The bill 
requires notification to Congress prior to the finalization of 
any U.S. Department of Homeland Security (DHS) polices, 
initiatives, or actions that will have a major impact on trade 
and customs revenue functions, adds committing or conspiring to 
commit an act of terrorism to the list of offenses as grounds 
for removal of a broker license, establishes reporting 
requirements for interagency programs led by the Office of the 
United States Trade Representative (USTR), sets out U.S. policy 
identifying the importance of the bilateral U.S.-Israel trade 
relationship, eliminates the ``consumptive demand'' exception 
to the prohibition on importing merchandise made by convict, 
forced or indentured labor, and requires CBP to report annually 
to Congress on each reimbursable fee agreement and public-
private partnership agreement entered into by CBP.

                 B. Background and Need for Legislation

    Congress last reauthorized CBP's customs and trade 
functions in the Trade Act of 2002. Pursuant to the Homeland 
Security Act of 2002, which passed soon thereafter, the U.S. 
Customs Service was placed under the new Department of Homeland 
Security (DHS) and renamed ``United States Customs and Border 
Protection.'' In this new structure, CBP was expanded to 
include Border Patrol (formerly part of the Immigration and 
Naturalization Service) and certain agricultural inspectors. 
The investigative functions for enforcement of the customs laws 
were put within the jurisdiction of the new Immigration and 
Customs Enforcement (ICE) unit of DHS.
    Prior to 2003, the Department of the Treasury chiefly 
administered Title 19 of the United States Codes, which governs 
customs revenue functions. Then-Secretary of the Treasury John 
Snow issued Treasury Order 100-16 on May 15, 2003, which 
delegated the majority of Title 19 customs revenue functions to 
CBP. Treasury retained supervision of certain ``customs revenue 
functions,'' as well as participation in advisory committees 
concerning customs revenue functions.
    Today CBP is responsible for ensuring cargo and passenger 
clearance, compliance of imports and exports with U.S. laws, 
collection of revenue, and prevention against the smuggling of 
contraband and the illegal entry of persons. Since the attacks 
of September 11, 2001, CBP has been managing a growing and 
expansive set of security initiatives to screen and, as needed, 
examine cargo with the principal objective of preventing the 
introduction of weapons of mass destruction into the United 
States. CBP has also significantly increased its vetting of 
cargo and persons prior to arrival in the United States, based 
on an analysis of risk posed, otherwise known as targeting. 
Much of the risk-based targeting is done for security purposes, 
but a growing volume is done for trade enforcement purposes. 
CBP, tasked with securing our borders, also assists in 
enforcing the import-related requirements of other Federal 
agencies, including the U.S. Department of Agriculture (USDA), 
Food and Drug Administration (FDA), Environmental Protection 
Agency (EPA), and Consumer Product Safety Commission (CPSC).
    With so much focus on security and trade enforcement, CBP 
cannot lose sight of its function as an international trade 
agency with the responsibility to facilitate trade to help U.S. 
companies compete globally. The importance of striking this 
critical balance between trade facilitation, trade enforcement, 
and security leads to the need for legislation.

                         C. Legislative History


Background

    H.R. 1907, to reauthorize trade facilitation and trade 
enforcement functions and activities, and for other purposes, 
was introduced on April 21, 2015, by Chairman Pat Tiberi, 
Representative Kevin Brady, and Representative Charles Boustany 
and was referred to the Committee on Ways and Means, Committee 
on Homeland Security, Committee on Foreign Affairs, Committee 
on Financial Services, and Committee on the Judiciary.

Committee hearings

    On May 17, 2012, the Committee held a hearing on Customs 
Trade Modernization, Facilitation and Enforcement. The hearing 
focused on efforts to enhance economic growth and job creation 
by facilitating legitimate trade, modernizing customs 
procedures, and enforcing U.S. customs and trade laws. The 
hearing was intended to help the Committee develop customs 
reauthorization legislation.

Committee action

    The Committee on Ways and Means marked up H.R. 1907, to 
reauthorize trade facilitation and trade enforcement functions 
and activities, and for other purposes, on April 23, 2015 and 
ordered the bill, as amended, favorably reported by voice vote 
(with a quorum being present).

                      II. EXPLANATION OF THE BILL


        A. Trade Facilitation and Trade Enforcement Act of 2015


           TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT


              SECTION 101. IMPROVING PARTNERSHIP PROGRAMS

Present law

    The Customs-Trade Partnership Against Terrorism (C-TPAT), 
codified in the Security and Accountability for Every Port Act 
(SAFE Port Act) of 2006 (6 U.S.C. 961 et seq.), is a voluntary 
trade partnership program in which CBP and members of the trade 
community work together to secure and facilitate the movement 
of legitimate trade. Companies that are members of C-TPAT are 
considered low-risk, which expedites cargo clearance based on 
the company's security profile and compliance history.

Explanation of provisions

    Section 101 requires the Commissioner of CBP to work with 
the private sector and other Federal agencies to ensure that 
all Agency partnership programs provide trade benefits to 
participants. This would apply to partnership programs 
established before enactment of this bill, and any programs 
established after enactment. It establishes elements for the 
development and operation of any such partnership programs, 
which require the Commissioner to: 1) consult with private 
sector entities, the public, and other Federal agencies when 
appropriate, to ensure that participants receive commercially 
significant and measurable trade benefits; 2) ensure an 
integrated and transparent system of trade benefits and 
compliance requirements for all CBP partnership programs; 3) 
consider consolidating partnership programs in situations in 
which doing so would support the objectives of such programs, 
increase participation, enhance trade benefits, and enhance the 
allocation of resources of CBP; 4) coordinate with the Director 
of ICE, and other Federal agencies with authority to detain and 
release merchandise; and 5) ensure that trade benefits are 
provided to participants in partnership programs.
    It further requires the Commissioner to submit to the 
Committee on Finance of the Senate and the Committee on Ways 
and Means of the House of Representatives a report that: 1) 
identifies each partnership program; 2) for each program, 
identifies the requirements for participation, benefits 
provided to participants, the number of participants, and in 
the case of a program that provides for participation at 
multiple tiers, the number of participants at each such tier; 
3) identifies the number of participants enrolled in more than 
one program; 4) assesses the effectiveness of each program in 
advancing the security, trade enforcement, and trade 
facilitation missions of CBP; 5) summarizes CBP's efforts to 
work with other Federal agencies to detain and release 
merchandise entering the United States to ensure that 
partnership programs of those agencies are compatible with CBP 
partnership programs; 6) summarizes criteria developed with 
those agencies for authorizing the release, on an expedited 
basis, for merchandise for which documentation is required from 
one or more of those agencies to clear or license the 
merchandise for entry into the United States; 7) summarizes CBP 
efforts to work with the private sector and the public to 
develop partnership programs; 8) describes measures taken by 
CBP to make the private sector aware of trade benefits 
available to participants in partnership programs; and 9) 
summarizes CBP's plans, targets, and goals with respect to 
partnership programs for the two years following submission of 
the report.

Reasons for change

    This section reinforces that any voluntary partnership 
programs that require participants to dedicate significant time 
and resources to provide CBP with the ability to conduct risk-
based targeting to secure supply chains must provide meaningful 
trade benefits to participants, such as expedited clearance of 
merchandise.
    The Committee believes that close and continuous 
consultation with private sector entities, other Federal 
agencies when appropriate, and Congress will help to ensure 
that participants in partnership programs receive commercially 
significant and measurable trade benefits, including pre-
clearance of merchandise for qualified persons that demonstrate 
the highest levels of compliance with the customs and trade 
laws of the United States, and other requirements deemed 
necessary by the Commissioner. Through such incentives, 
companies are encouraged to join, saving considerable CBP 
resources while improving security because CBP is able to 
dedicate those resources to traders who have not been pre-
cleared.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

  SECTION 102. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT ACTIVITIES

Present law

    No provision.

Explanation of provisions

    Section 102(a) requires the Comptroller General of the 
United States to submit a report on the effectiveness of trade 
enforcement activities of CBP to the Senate Committee on 
Finance and the House Committee on Ways and Means, no later 
than one year after the date of enactment the bill.
    Section 102(b) establishes that the report shall include 1) 
a description of the use of resources, results of audits and 
verifications, targeting, organization, and training of CBP 
personnel; and 2) a description of trade enforcement activities 
to address undervaluation, transshipment, legitimacy of 
entities making entry, protection of revenue, fraud prevention 
and detection, and penalties, including intentional 
misclassification, inadequate bonding, and other 
misrepresentations.

Reasons for change

    The Committee believes that an independent review of the 
effectiveness of CBP's trade enforcement activities will allow 
the Committee to better understand the resources within CBP 
that could be more effectively utilized to enhance the trade 
enforcement activities of CBP.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

     SECTION 103. PRIORITIES AND PERFORMANCE STANDARDS FOR CUSTOMS 
MODERNIZATION, TRADE FACILITATION, AND TRADE ENFORCEMENT FUNCTIONS AND 
                                PROGRAMS

Present law

    No provision.

Explanation of provisions

    Section 103(a) directs the Commissioner of Customs to 
consult with the Senate Committee on Finance and the House 
Committee on Ways and Means to establish priorities and 
performance standards to measure the development and levels of 
achievement of the customs modernization, trade facilitation, 
and trade enforcement functions of the programs described in 
section 103(b). The bill requires that the priorities and 
performance standards shall, at a minimum, include priorities 
and performance standards relating to efficiency, outcome, 
output, and other types of applicable measures.
    Section 103(b) establishes the functions and programs to 
which section 103(a) applies: 1) the Automated Commercial 
Environment; 2) each of the priority trade issues described in 
section 111(a) of this Act; 3) the Centers of Excellence and 
Expertise; 4) drawback; 5) transactions relating to imported 
merchandise in bond; 6) the collection of antidumping and 
countervailing duties assessed; 7) the expedited clearance of 
cargo; 8) the issuance of regulations and rulings; and 9) the 
issuance of Regulatory Audit Reports.
    Section 103(c) requires that the consultations with the 
Senate Committee on Finance and the House Committee on Ways and 
Means occur, at a minimum, on an annual basis, and requires the 
Commissioner to notify the Committees of any changes to the 
priorities referred to in Section 103(a) no later than 30 days 
before such changes are to take effect.

Reasons for change

    The Committee believes that requiring CBP to regularly 
consult with Congress on priority trade programs, issues, and 
functions is critical to maintaining a high level of 
transparency and achievement in customs modernization, trade 
facilitation, and trade enforcement.

Effective date

    The amendments made by this section shall take effect the 
date of enactment of this Act.

 SECTION 104. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS TO CLASSIFY AND 
APPRAISE IMPORTED ARTICLES TO IMPROVE TRADE ENFORCEMENT EFFORTS, AND TO 
          OTHERWISE FACILITATE LEGITIMATE INTERNATIONAL TRADE

Present law

    No provision.

Explanation of provisions

    Section 104(a) requires the Commissioner of CBP and the 
Director of ICE to establish and carry out educational seminars 
for CBP port personnel and ICE agents to improve their ability 
to classify and appraise imported merchandise, improve trade 
enforcement efforts, and otherwise improve the ability and 
effectiveness of CBP and ICE to facilitate legitimate trade.
    Section 104(b) establishes that these seminars shall 
include instruction on conducting physical inspections of 
merchandise, including testing of samples; reviewing the 
manifest and accompanying documentation to determine country of 
origin; customs valuation; industry supply chains; collection 
of antidumping and countervailing duties; addressing evasion of 
duties on imports of textiles; protection of intellectual 
property rights; and the enforcement of child labor laws.
    Section 104(c) directs the Commissioner to establish a 
process to solicit, evaluate and select interested parties in 
the private sector to assist in providing instruction.
    Section 104(d) directs the Commissioner to give special 
consideration to carrying out educational seminars dedicated to 
improving the ability of CBP to enforce antidumping and 
countervailing duty orders upon the request of a petitioner.
    Section 104(e) requires the Commissioner and the Director 
to establish performance standards to measure the development 
and level of achievement of educational seminars under this 
section.
    Section 104(f) requires the Commissioner and the Director 
to submit an annual report to the Senate Committee on Finance 
and the House Committee on Ways and Means on the effectiveness 
of the educational seminars.

Reasons for change

    The Committee believes that these particular trade 
enforcement and trade facilitation functions within CBP and ICE 
require continuous education due to the evolving nature of 
trade. CBP officers at the border are on the front lines and 
require the most current information and trade developments at 
their fingertips. The Committee further believes CBP and ICE 
have worked well together to provide education when possible, 
but notes that valuable private sector expertise can and should 
be utilized to reinforce this education.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

                   SECTION 105. JOINT STRATEGIC PLAN

Present law

    No provision.

Explanation of provisions

    Section 105(a) requires the Commissioner of CBP and the 
Director of ICE to create and submit to the Senate Committee on 
Finance and the House Committee on Ways and Means a biennial 
joint strategic plan on trade facilitation and trade 
enforcement.
    Section 105(b) requires the joint strategic plan to contain 
a comprehensive plan for trade facilitation and trade 
enforcement that includes: 1) a summary of the actions taken 
during the 2-year period preceding submission of the plan to 
improve trade facilitation and trade enforcement; 2) a 
statement of objectives and plans for further improving trade 
facilitation and trade enforcement; 3) a specific 
identification of priority trade issues that can be addressed 
to enhance trade enforcement and trade facilitation; 4) a 
description of efforts made to improve consultation and 
coordination among and within Federal agencies; 5) a 
description of training that has occurred within CBP and ICE to 
improve trade enforcement and trade facilitation; 6) a 
description of efforts to work with the World Customs 
Organization and other international organizations with respect 
to enhancing trade facilitation and trade enforcement; 7) a 
description of CBP organizational benchmarks for optimizing 
staffing and wait times at ports of entry; 8) a specific 
identification of any domestic or international best practices 
that may further improve trade enforcement and trade 
facilitation; 9) any legislative recommendations to further 
improve trade facilitation and trade enforcements; and 10) a 
description of efforts to improve consultation and coordination 
with the private sector to enhance trade facilitation and trade 
enforcement.
    Section 105(c) requires the Commissioner and the Director 
to consult with the appropriate Federal agencies and 
appropriate officials from relevant law enforcement agencies, 
international organizations, and interested parties in the 
private sector.

Reasons for change

    The Committee believes that a biennial joint strategic plan 
co-produced by CBP and ICE on efforts to enhance trade 
facilitation and trade enforcement functions will foster 
accountability to Congress and the private sector in these 
critical areas.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

             SECTION 106. AUTOMATED COMMERCIAL ENVIRONMENT

Present law

    Section 411 of the Tariff Act of 1930 requires the 
Secretary of Treasury to establish the National Customs 
Automation Program, an automated and electronic system for 
processing commercial importations.
    Section 13031(f)(4)(B) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 provides an authorization for 
appropriations from the Customs Commercial and Homeland 
Security Automation Account in fiscal years 2003 through 2005 
such amounts as are available in that Account for the 
development, establishment, and implementation of the Automated 
Commercial Environment (ACE) computer system for the processing 
of merchandise that is entered or released and for other 
purposes related to the functions of the Department of Homeland 
Security.
    Section 311(b)(3) of the Customs Border Security Act of 
2002 requires the Commissioner of Customs to prepare and submit 
to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a 
report demonstrating that the development and establishment of 
the Automated Commercial Environment computer system is being 
carried out in a cost-effective manner and meets the 
modernization requirements of title VI of the North American 
Free Trade Agreement Implementation Act.

Explanation of provisions

    Section 106(a) amends Section 13031(f)(4)(B) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 to 
update fiscal years 2003 through 2005 to fiscal years 2016 
through 2018, to update the amount to be allocated to ACE to 
``not less than $153,736,000,'' and to make clear that these 
funds shall be used to complete the development and 
implementation of ACE.
    Section 106(b) amends Section 311(b)(3) of the Customs 
Border Security Act of 2002 to require two reports from the 
Commissioner in regards to ACE. The Commissioner is required to 
submit a report no later than December 31, 2016 to the Senate 
Appropriations Committee and Finance Committee, and the House 
of Representatives Appropriations Committee and Ways and Means 
Committee, updates on the implementation of ACE, incorporation 
of all core trade processing capabilities, components that have 
not been implemented, and additional components needed to 
realize the full implementation and operation of the program. 
The Commissioner is required to submit a second report no later 
than September 30, 2017 providing updates to the relevant 
Congressional committees from the prior report, as well as 
evaluations on the effectiveness of implementation of ACE and 
details of the percentage of trade processed in ACE every month 
since September 30, 2016.
    Section 106(c) directs the Comptroller General of the 
United States to submit a report to the Senate Appropriations 
Committee and Finance Committee, and House of Representatives 
Appropriations Committee and Ways and Means Committee, 
assessing the progress of other Federal agencies in accessing 
and utilizing ACE and identifying potential cost savings to the 
U.S. government, importers, and exporters upon full 
implementation and utilization of ACE.

Reasons for change

    ACE has been under development for many years, and the 
Committee notes with approval that CBP has greatly improved its 
development and implementation efforts, establishing a deadline 
for completing the development and implementation of the 
program. The Committee believes it is important for CBP to have 
the funds necessary to complete the development and that it 
should have these funds available through the implementation 
stage. Further, despite recent progress in the development of 
ACE core processing capabilities, the Committee believes that a 
reporting requirement will make CBP accountable to the 
Committee, and other relevant committees, to fully implement 
ACE with the funds that are authorized, and to provide a 
detailed explanation of components, if any, that are incomplete 
and the reasons why.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

              SECTION 107. INTERNATIONAL TRADE DATA SYSTEM

Present law

    Section 411(d) of the Tariff Act of 1930 requires the 
Secretary of the Treasury to oversee the establishment of an 
electronic trade data interchange system, known as the 
International Trade Data System (ITDS). It further requires 
ITDS to be implemented no later than the date that ACE is fully 
implemented and mandates the participation of all federal 
agencies that require documentation for clearing or licensing 
cargo imports or exports.

Explanation of provisions

    Section 107 amends section 411(d) of the Tariff Act of 1930 
to require the Secretary of Homeland Security to work with the 
head of each Federal agency participating in ITDS and the 
Interagency Steering Committee to ensure that each agency: 1) 
develops and maintains the necessary information technology 
infrastructure to support the operation of ITDS and to submit 
all data to ITDS electronically; 2) enters into a memorandum of 
understanding to provide information sharing between the agency 
and CBP for the operation and maintenance of ITDS; 3) 
identifies and transmits admissibility criteria and data 
elements required by the agency to authorize the release of 
cargo by CBP for incorporation into ACE, no later than June 30, 
2016; and 4) utilizes ITDS as the primary means of receiving 
the standard set of data and other relevant documentation from 
users, no later than December 31, 2016.

Reasons for change

    The Committee believes that customs is the engine of trade, 
and therefore the engine of a prosperous economy. To most 
efficiently facilitate legitimate trade and effectively enforce 
the trade laws of the United States, relevant agencies across 
the government must improve the technologies and policies 
governing the movement of goods across our borders. In 
particular, the Committee believes that these agencies must 
improve efforts to complete the development of ITDS to expedite 
the flow of information between agencies and modernize agency 
interaction with traders.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

     SECTION 108. CONSULTATIONS WITH RESPECT TO MUTUAL RECOGNITION 
                              ARRANGEMENTS

Present law

    No provision.

Explanation of provisions

    Section 108(a) requires the Secretary of Homeland Security 
to consult with the Senate Committee on Finance and the House 
Committee on Ways and Means at least thirty days before the 
initiation of mutual recognition arrangement negotiations and 
at least thirty days before entering into any mutual 
recognition arrangement.
    Section 108(b) requires that the United States have as a 
negotiating objective in any negotiation for a mutual 
recognition arrangement with a foreign country on partnership 
programs to seek to ensure the compatibility of the foreign 
country's partnership program with the partnership programs of 
CBP in order to enhance trade facilitation and trade 
enforcement.

Reasons for change

    Mutual recognition arrangements of customs partnership 
programs have historically been entered into with minimal, if 
any, consultations with Congress. The Committee believes it is 
important that it be apprised of any plans to enter into 
negotiations with foreign countries given the Committee's 
oversight responsibilities.
    Furthermore, mutual recognition arrangements have primarily 
been based on security components, and have not delivered trade 
facilitation benefits to participants in the partnership 
programs. This section will make it a requirement for mutual 
recognition arrangements to enhance security, trade 
enforcement, and trade facilitation.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

     SECTION 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE

Present law

    The Advisory Committee on Commercial Operations (COAC) of 
the United States Customs Service was established in the 
Omnibus Budget Reconciliation Act of 1987. The Department of 
the Treasury Order No. 100-16, effective May 23, 2003, 
specified that COAC would be administered jointly by the 
Department of the Treasury and Department of Homeland Security.

Explanation of provisions

    Section 109(a) requires the Secretary of the Treasury and 
the Secretary of Homeland Security to jointly establish a 
Commercial Customs Operations Advisory Committee (COAC).
    Section 109(b) requires that COAC be comprised of 20 
appointed individuals from the private sector, appointed 
without regard to political affiliation; the Commissioner of 
CBP and the Assistant Secretary of Treasury for Tax Policy, who 
shall co-chair meetings; and the Assistant Secretary for Policy 
of the Department of Homeland Security and the ICE Director, 
who shall serve as deputy co-chairs of meetings. Section 109(b) 
further requires that appointed private sector individuals be 
representative of individuals and firms affected by the 
commercial operations of CBP, and provides that individuals may 
be appointed to multiple 3-year terms but cannot serve more 
than two terms sequentially. The Secretaries of the Treasury 
and Homeland Security are authorized to transfer members to the 
COAC who are currently serving on the Advisory Committee on 
Commercial Operations of the United States Customs Service.
    Section 109(c) establishes the duties of COAC, which shall 
be to: 1) advise the Secretaries of the Treasury and Homeland 
Security on all matters involving the commercial operations of 
CBP and the investigations of ICE; 2) provide recommendations 
to the Secretaries on improvements that CBP and ICE should make 
to their commercial operations and investigations; 3) 
collaborate in developing the agenda for COAC meetings; and 4) 
perform other functions relating to the commercial operations 
of CBP and the investigations of ICE as prescribed by law or as 
directed by the Secretaries.
    Section 109(d) establishes that 1) COAC shall meet at the 
call of the Secretary of the Treasury, the Secretary of 
Homeland Security, or two-thirds of the membership of COAC; 2) 
COAC shall meet at least four times each calendar year; and 3) 
that COAC meetings shall be open to the public unless the 
Secretary of the Treasury or the Secretary of Homeland Security 
determines that the meeting will include matters the disclosure 
of which would compromise the development of policies, 
priorities, or negotiating objectives or positions that could 
impact the commercial operations of CBP of the operations or 
investigations of ICE.
    Section 109(e) requires COAC to submit an annual report to 
the Senate Committee on Finance and the House Committee on Ways 
and Means that describes the activities of COAC during the 
preceding fiscal year and sets forth any recommendations of 
COAC regarding the commercial operations of CBP.
    Section 109(f) establishes that Section 14(a)(2) of the 
Federal Advisory Committee Act, relating to the termination of 
advisory committees, shall not apply to COAC.

Reasons for change

    This section codifies and expands the role of COAC, which 
the Committee believes to be a valuable entity. As expert 
advisors to the Secretaries of the Treasury and Homeland 
Security on all matters involving the commercial operations of 
CBP and the investigations of ICE, COAC provides 
recommendations to the Secretaries on improvements that CBP and 
ICE should make to their commercial operations and 
investigations. COAC is an established mechanism through which 
CBP and ICE can receive critical input from the business 
community, and the Committee believes that it is important for 
the agencies to have a structured system for receiving such 
input from their customers.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

           SECTION 110. CENTERS FOR EXCELLENCE AND EXPERTISE

Present law

    No provision.

Explanation of provisions

    Section 110(a) requires the Commissioner to develop and 
implement, in consultation with the Senate Committee on 
Finance, the House Committee on Ways and Means, and the COAC 
established by section 109(a), Centers of Excellence and 
Expertise (CEE) throughout CBP that: 1) enhance the economic 
competitiveness of the United States; 2) improve enforcement 
efforts; 3) build upon CBP expertise in particular industry 
operations, supply chains, and compliance requirements; 4) 
promote the uniform implementation at each port of entry of 
policies and regulations relating to imports; 5) centralize the 
trade enforcement and trade facilitation efforts of CBP; 6) 
formalize an account-based approach to the importation of 
merchandise into the United States; 7) foster partnerships 
through the expansion of trade programs and other trusted 
trader programs; 8) develop applicable performance measures to 
meet internal efficiency and effectiveness goals; and 9) when 
feasible, facilitate a more efficient flow of information 
between Federal agencies.
    Section 110(b) requires the Commissioner to submit a report 
to the Senate Committee on Finance and the House Committee on 
Ways and Means no later than December 31, 2016 describing the 
scope, functions and structure of the CEEs; the effectiveness 
of the CEEs in improving enforcement efforts; the benefits to 
the trade community; applicable performance measurements; the 
performance of each CEE in facilitating trade; and any planned 
changes to the CEEs.

Reasons for change

    The Committee believes that security and facilitation are 
two sides of the same coin. CBP is able to secure and 
facilitate legitimate trade, while taking a risk-based approach 
to enforcement, allowing it to focus on security and 
enforcement without compromising trade facilitation. The 
Committee believes that the CEEs allow CBP to focus on 
accounts, rather than transactions, and segment risk 
accordingly.
    The CEEs also allow CBP to increase industry-specific 
knowledge to build upon CBP expertise in particular industry 
operations and supply chains. Not only does this facilitate 
trade, but it also equips CBP with the knowledge needed to 
target illegitimate trade. The Committee believes that the CEEs 
will improve CBP's enforcement efforts and centralize CBP 
decision-making. All of these improvements are necessary to 
support the ever-increasing volume of trade without draining 
CBP resources.
    Another critical value-added of the CEEs is that they will 
help to prevent so-called ``port shopping,'' in which importers 
whose shipments are rejected by one port simply ship their 
products to another port of entry. The existence of 
centralized, industry and account-focused centers throughout 
CBP will raise awareness and ability to target such behavior 
more effectively.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

 SECTION 111. COMMERCIAL TARGETING DIVISION AND NATIONAL TARGETING AND 
                            ANALYSIS GROUPS

Present law

    No provision.

Explanation of provisions

    Section 111(a) requires the Secretary of Homeland Security 
to establish and maintain a Commercial Targeting Division (CTD) 
within CBP's Office of International Trade. The CTD shall be 
comprised of headquarters staff led by an Executive Director, 
and individual National Targeting and Analysis Groups (NTAGs) 
led by Directors reporting to the Executive Director. The CTD 
shall develop and conduct commercial targeting with respect to 
cargo destined for the United States.
    At a minimum, there shall be an NTAG established for the 
following priority trade issues (PTI): 1) agricultural 
programs; 2) antidumping and countervailing duties; 3) import 
safety; 4) intellectual property rights; 5) revenue; 6) 
textiles and wearing apparel; and 7) trade agreements and 
preference programs. The Commissioner may modify the PTIs in 
consultation with the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of 
Representatives. The duties of each NTAG shall include 
directing trade enforcement and compliance assessments of 
activities of CBP and serving as the primary liaison between 
CBP and the public for issues that relate to the PTIs.
    Section 111(a) also requires the CTD to establish 
methodologies for assessing the risk that imports may violate 
U.S. customs and trade laws and to issue trade alerts when the 
CTD determines cargo may violate such laws; assess the risk of 
cargo based on all information available to CBP through the 
Automated Targeting System, ACE, the Automated Entry System, 
ITDS, and TECS (formerly known as the ``Treasury Enforcement 
Communications System'') or any successor systems and publicly 
available information; and, use information provided by private 
sector entities and coordinate targeting efforts with other 
Federal agencies.
    Section 111(a) further authorizes the Executive Director of 
the CTD and NTAG Directors to issue trade alerts to port 
directors when such person determines cargo may violate U.S. 
customs and trade laws. The trade alert may direct further 
inspection or physical examination or testing of merchandise by 
the port personnel if certain risk-assessment thresholds are 
met. A port director may determine not to carry out the 
direction of the trade alerts if the port director finds 
security interests justify such determination, and the port 
director notifies the Assistant Commissioners of the Office of 
Field Operations and the Office of International Trade of such 
determination. The Assistant Commissioner of the Office of 
Field Operations must compile an annual report of all 
determinations by port directors to override trade alerts and 
include an evaluation of the utilization of trade alerts. This 
report must be submitted to the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House of 
Representatives not later than December 31 each year.
    Section 111(b) amends section 343(a)(3)(F) of the Trade Act 
of 2002 to establish that the information collected pursuant to 
regulations shall be used exclusively for ensuring cargo safety 
and security, prevent smuggling, and commercial risk assessment 
targeting, and shall not be used for any commercial enforcement 
purposes, including for determining merchandise entry.

Reasons for change

    The Committee believes that effective commercial targeting 
is critical to CBP's overall targeting and enforcement efforts. 
Targeting undoubtedly has a security angle, but it has a 
crucial trade enforcement angle as well. The codification of 
the priority trade issues in this section makes this clear, by 
establishing agricultural programs, antidumping and 
countervailing duties, import safety, intellectual property 
rights, revenue, textiles and wearing apparel, and trade 
agreements, and preference programs as key areas in which CBP 
must focus its trade targeting efforts. Targeting for trade 
enforcement purposes allows CBP to develop knowledge of 
patterns and issues that arise in the flow of importations into 
the United States in order to sufficiently target high-risk 
trade that is dangerous, infringing, or otherwise failing to 
comply with the customs and trade laws of the United States, 
and to protect the revenue of the United States.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

SECTION 112. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND ENFORCEMENT 
                                MEASURES

Present law

    No provision.

Explanation of provisions

    Section 112(a) requires the Inspector General of the 
Department of the Treasury to submit a report, not later than 
March 31, 2016 and biennially thereafter, to the Senate 
Committee on Finance and the House Committee on Ways and Means 
that assesses the effectives of the measures taken by CBP with 
respect to protection of the revenue and to measure 
accountability and performance with respect to protection of 
the revenue.
    Section 112(b) establishes that each report required by 
section 112(a) shall cover the period of two fiscal years 
ending on September 30 of the calendar year preceding the 
submission of the report.

Reasons for change

    This report will keep the Committee apprised of measures 
taken by CBP to protect the revenue, particularly with regard 
to efforts to collect antidumping and countervailing duties 
owed. The Committee believes that a regular report of this 
nature will serve to improve CBP's collection efforts and 
educate the Committee on CBP's efforts.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

 SECTION 113. REPORT ON SECURITY AND REVENUE MEASURES WITH RESPECT TO 
                    MERCHANDISE TRANSPORTED IN BOND

Present law

    No provision.

Explanation of provisions

    Section 113(a) requires the Secretaries of Homeland 
Security and the Treasury to jointly submit a report to the 
Senate Committee on Finance and the House Committee on Ways and 
Means on efforts undertaken by CBP to ensure the secure 
transportation of merchandise in bond through the United States 
and the collection of revenue owed upon the entry of such 
merchandise into the United States for consumption. The report 
must be submitted no later than December 31 of 2016, 2017, and 
2018.
    Section 113(b) requires that each report required by 
section 113(a) shall include information on: 1) the overall 
number of entries of merchandise for transportation in bond 
through the United States; 2) the ports at which merchandise 
arrives in the United States for transportation in bond and at 
which records of arrival of such merchandise are generated; 3) 
the average time taken to reconcile such records with the 
records at the final destination of merchandise in the United 
States to demonstrate that the merchandise reaches its final 
destination or is re-exported; 4) the average time taken to 
transport merchandise in bond from the port at which the 
merchandise arrives in the United States to its final 
destination in the United States; 5) the total amount of 
duties, taxes, and fees owed with respect to shipments of 
merchandise transported in bond and the total of such duties, 
taxes, and fees paid; 6) the total number of notifications by 
carriers of merchandise being transported in bond that the 
destination of merchandise has changed; and 7) the number of 
entries that remain unreconciled.

Reasons for change

    In bond shipments to and within the United States are 
shipments that are not to enter into the United States for 
consumption. Because they are not to enter into the commerce of 
the United States, duties and taxes are not owed upon these 
shipments. Given the nature of in bond shipments transported 
through the United States, there has historically been little 
to no monitoring of these shipments to determine whether they 
in fact do enter the commerce of the United States. The lack of 
oversight and heightened risk for fraud has been a source of 
concern for the Committee. This report will keep the Committee 
apprised of measures taken by CBP to collect revenue owed upon 
entry of merchandise transported in bond through the United 
States and encourage a higher level of CBP oversight over 
merchandise transported in bond.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

                SECTION 114. IMPORTER OF RECORD PROGRAM

Present law

    No provision.

Explanation of provisions

    Section 114(a) requires the Secretary of Homeland Security 
to establish an importer of record program to assign and 
maintain importer of record numbers.
    Section 114(b) requires the Secretary to ensure that CBP 
develops criteria that importers must meet in order to obtain 
an importer of record number, provides a process by which 
importers are assigned importer of record numbers, maintains a 
centralized database of importer of record numbers, evaluates 
and maintains accuracy of the database if importer information 
changes, and takes measures to ensure that duplicate importer 
of record numbers are not issued.
    Section 114(c) requires the Secretary of Homeland Security 
to submit a report to the Senate Committee on Finance and the 
House Committee on Ways and Means on the establishment of the 
importer of record program no later than one year after 
enactment of the Trade Facilitation and Trade Enforcement Act 
of 2015.

Reasons for change

    The Committee believes that CBP must do a better job of 
creating and maintaining records of importers. A new program 
dedicated to recording and tracking importers will allow CBP to 
improve its enforcement and facilitation efforts by giving it 
the knowledge needed to effectively pursue a risk-based 
strategy for enforcement.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

           SECTION 115. ESTABLISHMENT OF NEW IMPORTER PROGRAM

Present law

    No provision.

Explanation of provisions

    Section 115(a) requires the Commissioner to establish a new 
importer program that directs CBP to adjust bond amounts for 
new importers based on the level of risk assessed by CBP for 
revenue protection.
    In establishing this program, section 115(b) requires CBP 
to 1) develop risk-based criteria to assess new importers; 2) 
develop risk assessment guidelines for new importers to 
determine if and to what extent to adjust the bond amounts and 
increase screening of imports of new importers; 3) develop 
procedures to ensure increased oversight of imported products 
of new importers relating to the enforcement of priority trade 
issues; 4) develop procedures to ensure increased oversight by 
Centers of Excellence and Expertise; and 5) establish a 
centralized database of new importers to ensure the accuracy of 
information provided by new importers pursuant to the 
requirements of this section.

Reasons for change

    The Committee believes that CBP can do a better job of 
knowing its customers in order to more effectively enforce the 
customs and trade laws of the United States. A new importer 
program will give CBP the tools to increase oversight of new 
importers, and to develop risk-based criteria to assess threat 
levels of new importers. The Committee believes that these 
steps will streamline CBP's trade facilitation and trade 
enforcement efforts. By developing guidelines to screen higher 
risk new importers, CBP can more effectively facilitate 
legitimate trade.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

        SECTION 116. CUSTOMS BROKER IDENTIFICATION OF IMPORTERS

Present law

    Section 641 of the Tariff Act of 1930 establishes 
requirements and procedures for customs brokers in acquiring a 
license or permit, disciplinary proceedings, and judicial 
appeals of revocation or suspension of a broker's license.

Explanation of provisions

    Section 116(a) amends section 641 of the Tariff Act of 1930 
by inserting a new provision that requires the Secretary of 
Homeland Security to prescribe regulations setting minimum 
standards for customs brokers and importers regarding the 
identity of the importer. The regulations shall, at a minimum, 
require customs brokers and importers, upon adequate notice, to 
comply with procedures for collecting the identity of 
importers, including nonresident importers, seeking to import 
merchandise into the United States, and maintain records of the 
information used to substantiate a person's identity. This 
section further provides that a customs broker will be 
penalized, at the discretion of the Secretary, in an amount not 
exceeding $10,000 for each violation of the regulations 
concerning the collection and maintenance of importer's 
identity and identifying information, and the broker's license 
or permit will be subject to revocation or suspension, pursuant 
to procedures established in section 641(d) of the Tariff Act 
of 1930.
    Section 116(b) requires the Commissioner to submit a report 
to Congress no later than 180 days after enactment of this bill 
containing recommendations for determining the most timely and 
effective way to require foreign nationals to provide customs 
brokers with appropriate and accurate information (comparable 
to that which is required of United States nationals concerning 
the identity, address and other related information), and for 
establishing a system for customs brokers to review information 
maintained by relevant Federal agencies for purposes of 
verifying the identities of importers, including nonresident 
importers, seeking to import merchandise into the United 
States.

Reasons for change

    Much like CBP should know its customers, a customs broker 
must know its customer. This provision requires the Department 
of Homeland Security to write regulations that would require 
customs brokers to collect information on the identity of 
importers, with penalties for failure to comply. The Committee 
believes that it is incumbent on a broker to know exactly on 
whose behalf it is acting, and to be held accountable for 
failure to substantiate a customer's identity. While the 
Committee is cognizant that this will require due diligence by 
the broker and could potentially impact a broker's business, 
the Committee believes that the benefit to the broker and the 
government is far outweighed by any change in business 
practices. Furthermore, the Committee believes that the penalty 
for a violation of this section is necessary to hold brokers 
accountable to the requirements of this section, and that it is 
equitable because the Secretary of Homeland Security has the 
discretion to impose such a penalty under circumstances deemed 
appropriate.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

     SECTION 117. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS

Present law

    No provision.

Explanation of provisions

    Section 117 amends Part III of title IV of the Tariff Act 
of 1930 to insert a new provision (section 484c) on 
requirements applicable to non-resident importers. If an 
importer of record is not a resident of the United States, CBP 
shall require the non-resident importer to designate a resident 
agent in the United States that shall be authorized to accept 
service of process against the non-resident importer in 
connection with the importation of merchandise. CBP shall 
require the non-resident importer to establish power of 
attorney with the resident agent in connection with the 
importation of merchandise. The requirements of this section 
shall in no case apply to a non-resident importer who is a 
validated Tier 2 or Tier 3 C-TPAT member. This section further 
establishes that any person who violates the requirements of 
this section shall be liable for a civil penalty of $50,000 for 
each such violation, and that any violation of this section 
that violates any other customs and trade laws of the United 
States shall be subject to any applicable civil and criminal 
penalty, including seizure and forfeiture, that may be imposed 
under such customs or trade laws or Title 18 of the United 
States Code.

Reasons for change

    This section requires CBP to collect additional information 
and levy financial requirements on ``nonresident importers'' to 
increase revenue protection. The Committee believes that the 
imposition of strict requirements on non-resident importers is 
necessary to combat the problems posed by foreign importers 
that disappear when the time comes to pay duties or penalties 
owed. The Committee also takes into account that some non-
resident importers are validated members of C-TPAT, and 
therefore should not be subject to the requirements of this 
section.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act and apply with respect to the 
importation of merchandise of an importer of record under 
section 484 of the Tariff Act of 1930 who is not resident of 
the United States on or after the date that is 180 days after 
such date of enactment.

                   TITLE II--IMPORT HEALTH AND SAFETY


          SECTION 201. INTERAGENCY IMPORT SAFETY WORKING GROUP

Present law

    No provision.

Explanation of provisions

    Section 201(a) establishes an Interagency Import Safety 
Working Group.
    Section 201(b) sets forth the membership of the Working 
Group and designates the Secretary of Homeland Security as the 
Chair and the Secretary of Health and Human Services as the 
Vice-Chair. The membership of the Working Group also shall 
include the Secretaries of the Treasury, Commerce and 
Agriculture; the United States Trade Representative; the 
Director of the Office of Management and Budget; the 
Commissioners of CBP and the Food and Drug Administration; the 
Chairman of the Consumer Product Safety Commission; the 
Director of ICE; and the head of any other Federal agency 
designated by the President to participate.
    Section 201(c) requires the Working Group to (1) consult on 
the development of a joint import safety rapid response plan 
required under section 202 of the bill; (2) evaluate federal 
government and agency resources, plans, and practices to ensure 
the safety of U.S. imports and the expeditious entry of such 
merchandise; (3) review the engagement and cooperation of 
foreign governments and foreign manufacturers; (4) identify 
best practices, in consultation with the private sector, to 
assist U.S. importers in ensuring import health and safety of 
imported merchandise; (5) identify best practices to improve 
Federal, state, and local coordination in responding to import 
health and safety threats; and (6) identify appropriate steps 
to improve domestic accountability and foreign government 
engagement with respect to imports.

Reasons for change

    The Committee believes that addressing import health and 
safety concerns requires pooling the resources and expertise of 
the numerous Federal agencies designated to participate in the 
import safety working group.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

          SECTION 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN

Present law

    No provision.

Explanation of provisions

    Section 202(a) requires the Secretary of Homeland Security, 
in consultation with the Working Group, to develop and review a 
joint import safety rapid response plan (the Plan) that 
establishes protocols and practices CBP should use when 
responding to cargo that poses a threat to the health or safety 
of U.S. consumers.
    Section 202(b) sets forth the contents of the Plan, which 
must define (1) the responsibilities of CBP and other Federal 
agencies in responding to an import health and safety threat; 
(2) the protocols and practices used in responding to such 
threats; (3) the mitigation measures CBP must take when 
responding to such threats after the incident to ensure the 
resumption of the entry of merchandise into the United States; 
and (4) exercises CBP should take with Federal, State, and 
local agencies as well as the private sector to simulate 
responses to such threats.
    Section 202(c) requires the Secretary of Homeland Security 
to review and update the joint import safety rapid response 
plan, as appropriate, after conducting exercises under 
subsection (d).
    Section 202(d) requires the Commissioner, in conjunction 
with Federal, state, and local agencies, to conduct exercises 
to test the Plan. When conducting exercises, the Commissioner 
must make allowances for the specific needs of the port where 
the exercise is occurring, base evaluations on current import 
risk assessments, and ensure that the exercises are conducted 
consistent with other national preparedness plans. The 
Secretary of Homeland Security and Commissioner must ensure 
that the testing and evaluations use performance measures in 
order to identify best practices and recommendations in 
responding to import health and safety threats and develop 
metrics with respect to the resumption of the entry of 
merchandise into the United States. Best practices and 
recommendations should then be shared among relevant 
stakeholders and incorporated into the Plan.

Reasons for change

    The Committee believes that CBP should have an established 
plan and protocols in place, prepared with the expertise and 
resources of partner Federal agencies, to use when responding 
to cargo that poses a threat to the health and safety of U.S. 
consumers. The Committee further believes that testing this 
plan with Federal, state, and local agencies will ensure that 
CBP is prepared to address threats immediately and effectively 
as they arise.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

                         SECTION 203. TRAINING

Present law

    No provision.

Explanation of provisions

    Section 203 requires the Commissioner to ensure that CBP 
port personnel are trained to effectively enforce U.S. import 
health and safety laws.

Reasons for change

    The Committee believes that CBP personnel should be 
educated and trained to effectively enforce U.S. import health 
and safety laws.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

  TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS


        SECTION 301. DEFINITION OF INTELLECTUAL PROPERTY RIGHTS

Present law

    No provision.

Explanation of provisions

    Section 301 defines ``intellectual property rights'' as 
copyrights, trademarks, and other forms of intellectual 
property rights that are enforced by CBP and ICE.

Reasons for change

    The Committee believes that the definition of intellectual 
property rights should be clear for the purposes of customs 
enforcement.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

   SECTION 302. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT

Present law

    Section 818(g) of the 2012 National Defense Authorization 
Act (NDAA) authorizes, but does not require, CBP to share 
unredacted images and samples with right holders if CBP 
suspects a product of infringing a trademark.

Explanation of provisions

    Section 302 amends the Tariff Act of 1930 to create Section 
628A, which requires CBP to share certain information about 
merchandise suspected of violating intellectual property rights 
(IPR) prior to seizure if CBP determines that examination or 
testing of the merchandise by the right holder would assist in 
determining if there is a violation, except in such cases as 
would compromise an ongoing law enforcement investigation or 
national security.

Reasons for change

    This section supersedes section 818(g) of the 2012 National 
Defense Authorization Act (NDAA), Public Law 112-81 (125 Stat. 
1496), which authorized, but did not require, CBP to share 
unredacted images and samples with right holders for violations 
of trademark rights. In addition to violations of trademark 
rights, this section also applies to violations of copyright 
law, including certain violations of the Digital Millennium 
Copyright Act (DMCA) prohibiting unlawful circumvention 
devices.
    This section is intended to eliminate any doubt about CBP's 
ability to lawfully share information with a right holder for 
the sole purpose of making a final determination if goods are 
being imported illegally and therefore subject to seizure. For 
the purpose of making a determination about such goods, the 
Commissioner is specifically authorized to provide unredacted 
information that appears on the merchandise, packaging, and 
labels, as well as unredacted images. Information may be shared 
with regard to only those trademarks and copyrights that are 
recorded with CBP. Such information may not be shared if doing 
so would compromise national security or an ongoing law 
enforcement investigation.
    This section also identifies the parties who are eligible 
for such consultations. For trademark and copyright violations, 
consultations may take place with the owner of the trademark 
suspected of being infringed, or the owner of the copyright 
suspected of being infringed, respectively. For DMCA 
violations, consultations may take place with the owner of the 
copyright that is subject to infringement due to the 
circumvention, including but not limited to copyrights on code 
that has been imbedded in hardware devices for the purpose of 
protection from circumvention. Publishers of copyrighted 
material that is subject to piracy through the circumvention 
may also be consulted by CBP.
    Effective customs enforcement of IPR is critical to the 
United States economy and the health and safety of individuals. 
The Committee believes that CBP's implementation of section 
818(g) of the 2012 NDAA has resulted in a process that does not 
provide effective enforcement for copyright and trademark 
holders, and the Committee intends for CBP to implement this 
section in a manner that ensures effective customs enforcement 
of IPR.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

             SECTION 303. SEIZURE OF CIRCUMVENTION DEVICES

Present law

    Section 596(c)(2) of the Tariff Act of 1930 specifies a 
number of items that are to be seized by CBP when presented for 
importation, including ``merchandise or packaging in which 
copyright, trademark, or trade name protection violations are 
involved.''

Explanation of provisions

    Section 303(a) expands CBP's seizure and forfeiture 
authority to explicitly include unlawful circumvention devices, 
as defined under subsection (a)(2) or (b)(1) of section 1201 of 
title 17, United States Code.
    Section 303(b) directs CBP to disclose certain information 
to right holders about the seized merchandise within 30 days of 
seizure, if the right holder is included on a list maintained 
by CBP. The information that must be provided is the same 
information provided to copyright owners under CBP regulations 
for merchandise seized under copyright laws. CBP must prescribe 
regulations establishing procedures that implement this process 
within one year of the date of enactment of this bill.

Reasons for change

    Section 303 adds a new subsection (G) to the list of items 
which are to be seized under section 596(c)(2) of the Tariff 
Act of 1930: ``a technology, product, service, device, 
component or part thereof'' that is imported in violation of 
subsection (a)(2) or (b)(1) of section 1201 of title 17, United 
States Code.
    The Committee intends that goods violating section 1201 of 
title 17 be subject to seizure under this new provision, rather 
than other provisions of law, and that the goods seized under 
new subsection (G) receive the same priority for inspection and 
potential seizure as other items in section 596(c)(2) of the 
Tariff Act of 1930.
    Section 303 further requires the Commissioner to notify any 
person injured by the attempted importation of goods seized 
under section 596(c)(2)(G) of the Tariff Act of 1930, as added 
by this section, of the seizure within 30 business days. 
Information to be provided to such person is to be equivalent 
to that provided by CBP, pursuant to regulations, to a 
copyright owner when goods are seized under other provisions of 
Title 17.
    The Committee believes persons injured by importation of 
merchandise in violation of section 1201 of title 17 may 
include, but are not limited to, the producer of a hardware 
device that includes the technological means of protection that 
the seized merchandise is designed to circumvent, the publisher 
of copyrighted material that is designed for use on the same 
device, or both.
    To minimize the notification burden on the Commissioner, 
Section 303 requires CBP to publish a notice in the Federal 
Register asking that potentially injured parties notify the 
agency that they wish to receive information about seized 
merchandise. Only those entities included on a list shall be 
eligible to receive information after a seizure. CBP shall 
annually update the list through a Federal Register notice.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

SECTION 304. ENFORCEMENT BY U.S. CUSTOMS AND BORDER PROTECTION OF WORKS 
             FOR WHICH A COPYRIGHT REGISTRATION IS PENDING

Present law

    No provision.

Explanation of provisions

    Section 304 directs the Secretary of Homeland Security to 
establish a process for the enforcement of copyrights for which 
the owner has submitted an application for registration with 
the U.S. Copyright Office to the same extent and in the same 
manner as if the copyright were registered with the Copyright 
Office.

Reasons for change

    Under current practice, a copyright owner must wait until a 
copyright is registered with the U.S. Copyright Office before 
recording the copyright with CBP, and CBP enforces only those 
copyrights that have been recorded with the agency. During the 
time for processing an application at the U.S. Copyright 
Office, many right holders may suffer significant damage due to 
a lack of CBP enforcement. The Committee believes this 
provision would eliminate the danger posed by the time gap that 
results after submission of application for registration but 
before recordation, when copyright infringing products may be 
imported without CBP enforcement.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

 SECTION 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS COORDINATION CENTER

Present law

    No provision.

Explanation of provisions

    Section 305(a) establishes within ICE the National 
Intellectual Property Rights Coordination Center (IPR Center), 
which shall be headed by an Assistant Director.
    Section 305(b) assigns the Assistant Director duties, 
including (1) coordinating the investigation of sources of 
merchandise that infringes intellectual property rights (IPR); 
(2) conducting and coordinating training with other domestic 
and international law enforcement agencies to improve IPR 
enforcement; (3) coordinating, with CBP, U.S. activities to 
prevent the importation or exportation of IPR infringing 
merchandise; (4) supporting the international interdiction of 
merchandise destined for the U.S. that infringe IPR; (5) 
collecting and integrating information regarding infringements; 
(6) developing a means to receive and organize information 
regarding infringement of IPR; (7) disseminating information 
regarding infringement of IPR to other Federal agencies; (8) 
developing risk-based alert systems in coordination with CBP; 
and (9) coordinating with U.S. Attorneys' offices to 
investigate and prosecute IPR crime.
    Section 305(c) requires the Assistant Director to 
coordinate with federal, state, local and international law 
enforcement, intellectual property, and trade agencies, as 
appropriate, in carrying out the IPR Center's duties.
    Section 305(d) requires the Assistant Director to (1) 
conduct outreach to the private sector to determine trends in 
and methods of infringing IPR; and (2) coordinate public and 
private-sector efforts to combat the infringement of IPR.

Reasons for change

    The National Intellectual Property Rights Coordination 
Center (NIPRCC) was created in 2000, under the U.S. Customs 
Service, as part of the implementation of the 1998 
International Crime Control Strategy. The NIPRCC was created as 
a direct response to congressional criticism of federal 
enforcement efforts in the 1990s of IPR, but was never codified 
by Congress.
    Today, the NIPRCC is led by ICE. The center leverages 
resources from 23 partner agencies to combat intellectual 
property theft. NIPRCC's duties include: investigation, 
including identifying and prosecuting criminal organizations 
involved in the distribution of counterfeit products; 
interdiction, by using focused targeting and inspections to 
keep infringing products out of U.S. supply chains; and 
outreach and training domestically and internationally for law 
enforcement officials.
    Infringement of intellectual property rights (IPR) causes 
significant harm to the U.S. economy, hurts American workers, 
and negatively impacts the health and safety of the American 
people. U.S. law enforcement agencies must provide effective 
enforcement of IPR, especially to stop the flow of infringing 
goods crossing U.S. borders. Effective border enforcement 
requires investigating the sources of IPR infringement. To do 
this effectively, federal law enforcement agencies must 
coordinate with each other, with state, local, and 
international law enforcement agencies, and with the private 
sector to bring together all the resources available to combat 
the infringement of intellectual property rights. The Committee 
believes that codifying and expanding the duties of the NIPRCC 
will achieve these goals.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

 SECTION 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT OF INTELLECTUAL 
                            PROPERTY RIGHTS

Present law

    No provision.

Explanation of provisions

    Section 306 requires the Commissioner and Director to 
include in the joint strategic plan on trade facilitation and 
enforcement required under section 105 of the bill the 
following: (1) a description of DHS's IPR enforcement efforts; 
(2) a list of the top 10 ports, by volume and value, where CBP 
seized IPR infringing goods in the preceding two years; and (3) 
a recommendation of the optimal allocation of personnel to 
ensure CBP and ICE are effectively enforcing IPR.

Reasons for change

    The Committee believes that effective enforcement of 
intellectual property rights requires our border enforcement 
agencies to communicate with Congress and the public regarding 
efforts to stop the flow of infringing merchandise across U.S. 
borders.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

  SECTION 307. PERSONNEL DEDICATED TO THE ENFORCEMENT OF INTELLECTUAL 
                            PROPERTY RIGHTS

Present law

    No provision.

Explanation of provisions

    Section 307(a) requires the Commissioner to ensure 
sufficient personnel are assigned throughout CBP with 
responsibility to enforce intellectual property rights with 
respect to U.S. imports.
    Section 307(b) requires the Commissioner to assign at least 
three full-time CBP employees to the IPR Coordination Center 
established under Section 305 and to ensure that sufficient 
personnel are assigned to U.S. ports of entry to carry out the 
directives of the IPR Coordination Center established under 
section 305.

Reasons for change

    The Committee believes that CBP should dedicate adequate 
personnel to the effort to halt the flow of infringing imports 
into the United States.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

 SECTION 308. TRAINING WITH RESPECT TO THE ENFORCEMENT OF INTELLECTUAL 
                            PROPERTY RIGHTS

Present law

    No provision.

Explanation of provisions

    Section 308(a) requires the Commissioner to effectively 
train CBP port personnel to detect and identify IPR infringing 
imported goods.
    Section 308(b) requires the Commissioner to work with the 
private sector to identify opportunities for collaboration with 
respect to training for officers of the agency to enforce IPR.
    Section 308(c) requires the Commissioner to consult with 
private sector entities to identify technologies which can 
cost-effectively identify infringing merchandise, and to 
provide for cost-effective training for CBP officers with 
regard to the use of such technologies.
    Section 308(d) permits CBP to receive donations of 
technology to improve IPR enforcement.

Reasons for change

    The Committee believes that CBP should take steps to ensure 
that personnel dedicated to enforcement of intellectual 
property rights, and border patrol officers generally, are 
effectively trained to detect and identify infringing imports. 
The Committee further believes that much of the expertise in 
this area lies within in the private sector, with companies 
that are most knowledgeable about their products and can 
provide valuable training to CBP on detection.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

     SECTION 309. INTERNATIONAL COOPERATION AND INFORMATION SHARING

Present law

    Section 628 of the Tariff Act of 1930 permits CBP to 
exchange information or documents with foreign customs and law 
enforcement agencies if the Secretary of the Treasury 
reasonably believes the exchange of information is necessary to 
comply with CBP laws and regulations, to enforce a trade 
agreement to which the United States is a party, to assist in 
investigative, judicial and quasi-judicial proceedings in the 
United States, or for any similar action undertaken by a 
foreign law enforcement agency in a foreign country.

Explanation of provisions

    Section 309 requires the Secretary of Homeland Security to 
coordinate with competent foreign law enforcement agencies to 
enhance IPR enforcement, including by information sharing and 
technical assistance, and requires the Commissioner and the 
Director of ICE to lead interagency efforts to collaborate with 
law enforcement and customs authorities of foreign countries.

Reasons for change

    The Committee believes that effective enforcement of IPR 
enforcement in the United States requires coordination between 
our law enforcement agencies and competent foreign law 
enforcement agencies. This section requires the Secretary of 
Homeland Security to coordinate with competent foreign law 
enforcement agencies to enhance enforcement of IPR, including 
by information sharing and technical assistance.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

    SECTION 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT

Present law

    No provision.

Explanation of provisions

    Requires the Commissioner of CBP and the Director of ICE to 
jointly submit to the Committees a report that includes: (1) 
information regarding the number, and a description of, certain 
efforts to investigate and prosecute IPR infringements; (2) an 
estimate of the average time required by the CBP Office of 
International Trade to respond to a request from port personnel 
for advice with respect to whether merchandise detained by the 
Agency infringed IPR, distinguished by types of IPR infringed; 
(3) a summary of the outreach efforts of CBP and ICE with 
respect to interdiction, investigation and information sharing 
between certain agencies related to the infringement of IPR, 
collaboration with the private sector, and coordination with 
foreign governments; (4) a summary of the efforts of CBP and 
ICE to address the challenges with respect to the enforcement 
of IPR presented by Internet commerce and the transit of small 
packages and an identification of the volume, value, and type 
of merchandise seized for infringing IPR as a result of such 
efforts; and (5) a summary of training relating to the 
enforcement of IPR conducted under Section 308 and expenditures 
for such training.

Reasons for change

    The Committee believes that this report enhances 
accountability for United States border enforcement agencies 
regarding the enforcement of IPR. Furthermore, the information 
contained in the report will keep Congress apprised of efforts 
to enhance enforcement of IPR enforcement and assist in future 
determinations of additional measures needed to improve 
enforcement efforts.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

    SECTION 311. INFORMATION FOR TRAVELERS REGARDING VIOLATIONS OF 
                      INTELLECTUAL PROPERTY RIGHTS

Present law

    No provision.

Explanation of provisions

    Section 311(a) requires the Secretary of Homeland Security 
to develop and implement an educational campaign for travelers 
entering or departing the United States on the legal, economic, 
and public health and safety implications of importing IPR 
infringing goods into the United States.
    Section 311(b) requires the Commissioner to ensure that all 
versions, including the electronic versions, of CBP Form 6059B 
(customs declaration), or a successor form, include a written 
warning to inform travelers arriving in the United States that 
importation of merchandise that infringes IPR may subject 
travelers to civil or criminal penalties and may pose serious 
risks to health and safety.

Reasons for change

    Many U.S. citizens are unaware of the dangers presented by 
trade in infringing goods, and some may unwittingly facilitate 
this trade by acquiring illicit goods abroad. The Committee 
believes that an educational campaign devoted to travelers on 
the implications of importing IPR infringing goods will help to 
address lack of awareness.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

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


                        SECTION 401. SHORT TITLE

Present law

    No provision.

Explanation of provisions

    Section 401 sets forth the short title as the ``Preventing 
Recurring Trade Evasion and Circumvention Act.''

Reason for change

    The Committee believes that the short title reflects the 
objective of the title to prevent evasion of antidumping and 
countervailing duties owed on merchandise subject to 
antidumping and countervailing duty orders (``evasion'').

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

                        SECTION 402. DEFINITIONS

Present law

    No provision.

Explanation of provisions

    Establishes the applicable definitions for this title.

Reason for change

    The Committee believes that these definitions are required 
to ensure the accurate implementation of this title.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

             SECTION 403. APPLICATION TO CANADA AND MEXICO

Present law

    Article 1902 of the North American Free Trade Agreement 
(NAFTA), at 19 U.S.C. 3438, states that any amendments to Title 
VII of the Tariff Act of 1930, or to any other statute which 
provides for judicial review of determinations under that title 
or the standard of review to be applied, shall apply to goods 
from a NAFTA country only to the extent specified in the 
amendment.

Explanation of provisions

    Section 403 provides that this title applies to goods from 
Canada and Mexico, the current members of NAFTA.

Reason for change

    Provisions in this title amend or change Title VII of the 
Tariff Act of 1930. This section is necessary that these 
amendments and changes apply to goods from Canada and Mexico.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

    SUBTITLE A--ACTIONS RELATING TO ENFORCEMENT OF TRADE REMEDY LAWS


           SECTION 411. TRADE REMEDY LAW ENFORCEMENT DIVISION

Present law

    No provision.

Explanation of provisions

    Section 411(a) establishes within the Office of 
International Trade of CBP a Trade Law Remedy Enforcement 
Division. The Trade Law Remedy Division's duties are to: 
develop and administer policies to prevent and counter evasion; 
direct enforcement and compliance assessment activities 
concerning evasion; develop and conduct commercial risk 
assessment targeting with respect to potentially evading cargo 
destined for the United States; issuing Trade Alerts regarding 
evading imports; and develop policies for the application of 
single entry and continuous bonds to sufficiently protect the 
collection of antidumping and countervailing duties.
    Section 411(b) establishes the Director of the Trade Law 
Remedy Enforcement Division responsible for: directing the 
trade enforcement and compliance assessment activities of CBP 
regarding evasion; improving cooperation and the exchange of 
information between CBP, ICE, and other relevant agencies 
regarding evasion; notifying the Department of Commerce and the 
International Trade Commission of any findings, determinations, 
or criminal actions taken by CBP or other Federal agency 
regarding evasion; and serving as the primary liaison between 
CBP and the public regarding United States Government 
activities concerning evasion. The Director's liaison 
responsibilities include: receiving and transmitting to the 
appropriate CBP office parties' allegations of evasion; provide 
information to a party that submitted an allegation of evasion 
on the status of CBP's consideration of the allegation and 
decision to pursue or not pursue any administrative inquiries 
or other actions; request from the party that submitted an 
allegation of evasion any additional information that may be 
relevant for CBP determining whether to initiate an 
administrative inquiry or take any other action regarding the 
allegation; notify on a timely basis the party that submitted 
such an allegation of the results of any administrative, civil 
or criminal actions taken by CBP or other Federal agency 
regarding evasion as a direct or indirect result of the 
allegation; provide technical assistance and advice to eligible 
small businesses to enable such businesses to prepare and 
submit allegations of evasion; develop guidelines on the types 
and nature of information that may be provided in allegations 
of evasion; and regularly consult with relevant parties and 
organizations regarding the development and implementation of 
regulations, interpretations, and policies related to 
countering evasion.
    Section 411(c) establishes within the Trade Remedy Law 
Enforcement Division a National Targeting and Analysis Group 
(NTAG) dedicated to preventing and countering evasion through 
establishing targeted risk assessment methodologies and 
standards.
    Section 411(d) requires the Director of the Trade Remedy 
Law Enforcement Division to issue Trade Alerts to port 
directors as required to inspect imported merchandise, require 
additional bonds, and take other actions necessary to prevent 
evasion.

Reason for change

    As the agency responsible for assessing and collecting 
duties, CBP must play a significant role in preventing and 
taking action against evasion. For too long CBP gave 
insufficient priority to addressing evasion and taking action 
in response to outside allegations of evasion. CBP's dedication 
to acting against evasion and engaging with parties that submit 
evasion allegations is improving, and is certainly welcomed by 
the Committee. However, the Committee seeks to prevent CBP's 
commitment to evasion from diminishing over time. The Committee 
also believes that CBP would benefit from having an office 
devoted to preventing and combatting evasion, as would also 
other U.S. government agencies involved with evasion.
    The Trade Remedy Law Enforcement Division within CBP's 
Office of International Trade would provide dedicated focus and 
resources within CBP on evasion. The division is to develop and 
implement comprehensive strategies to proactively identify 
evading imports, take needed steps to ensure that collection of 
antidumping and countervailing duties owed on at-risk imports, 
and take enforcement and compliance actions against evasion. 
The Committee believes that it is vital to identify and act 
against evading imports before or at the time they reach the 
U.S. border, rather than acting after they have entered the 
marketplace and already undermined the effectiveness of 
antidumping and countervailing duty orders. This is why the 
division includes a National Targeting and Analysis Group 
dedicated to identifying potential evading imports, with the 
authority to issue trade alerts to ports about evasion.
    Heading the division is a director responsible and 
empowered to be the point of contact on evasion within CBP, for 
other U.S. agencies and for parties alleging evasion. Having 
these responsibilities vested in one position ensures that the 
director has full involvement and knowledge of CBP's activities 
against evasion, possesses the ability to facilitate inter-
agency cooperation on evasion, and acts as a one-stop-shop for 
not only receiving allegations of evasion, but also providing 
first-hand information to parties on the status and outcome of 
investigations or other activities resulting from evasion 
allegations.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

 SECTION 412. COLLECTION OF INFORMATION ON EVASION OF TRADE REMEDY LAWS

Present law

    No provision.

Explanation of provisions

    Section 412(a) directs CBP to exercise all existing 
information collection authorities to identify evasion and 
authorizes CBP to issue questionnaires to collect information 
on alleged evasion from persons who have information relevant 
to an allegation of evasion.
    If a person fails to cooperate to provide requested 
information, Section 412(b) authorizes CBP to apply an adverse 
inference against the interests of that party in determining if 
evasion occurred.

Reason for change

    The purpose of this provision is to underscore the 
Committee's intent that CBP use all existing information 
collection authorities to identify evasion. CBP is also 
specifically authorized to issue questionnaires to collect 
information on alleged evasion because there has been 
uncertainty about whether it currently has such authority. The 
Committee expects CBP to fully use this authority. To ensure 
that persons provide requested information, CBP is given the 
authority to make an adverse inference against a person that 
fails to cooperate in providing requested information regarding 
evasion.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

                   SECTION 413. ACCESS TO INFORMATION

Present law

    Section 777(b)(1)(A)(ii) of the Trade Act of 1930, at 19 
U.S.C. 1677f(b)(1)(A)(ii), authorizes the Department of 
Commerce and the International Trade Commission to transfer to 
CBP information that was designated proprietary by the person 
submitting the information, for purposes of conducting an 
investigation regarding fraud.

Explanation of provisions

    Section 413(a) amends Section 777(b)(1)(A)(ii) of the Trade 
Act of 1930 by allowing the Department of Commerce and the 
International Trade Commission to transfer information 
designated proprietary by the person submitting the information 
to CBP for investigations of negligence and gross negligence, 
rather than just for fraud.
    Section 413(b) authorizes the Secretary of the Treasury to 
provide to the Department of Commerce or the International 
Trade Commission any information that would enable the 
Department of Commerce or the International Trade Commission to 
assist in identifying imports evading antidumping or 
countervailing duties.

Reason for change

    Existing limitations on the ability of CBP, the Department 
of Commerce, and the International Trade Commission to exchange 
certain information hamper efforts to identify and take action 
against imports evading antidumping and countervailing duties. 
This section authorizes increased data sharing among these 
agencies to facilitate taking action against evasion.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

 SECTION 414. COOPERATION WITH FOREIGN COUNTRIES ON PREVENTING EVASION 
                          OF TRADE REMEDY LAWS

Present law

    No provision.

Explanation of provisions

    Section 414(a) requires the negotiation of bilateral 
agreements with other countries' customs authorities to 
cooperate on preventing evasion. These agreements should 
include provisions allowing the sharing of information to 
determine if evasion occurred, verification of such 
information, allowing officials from the importing country to 
participate in such verifications, and, if a country refuses to 
allow officials from an importing country to participate in a 
verification, allowing the importing country to take such lack 
of cooperation into account in its trade enforcement and 
compliance activities.
    Section 414(b) allows CBP to take into account whether a 
country is a party to a bilateral agreement regarding 
cooperation on evasion and the extent to which that country is 
cooperating under such an agreement for the purposes of trade 
enforcement and compliance assessment of that country's exports 
regarding potential evasion.
    Section 414(c) requires an annual report to Congress on the 
status of ongoing negotiations of bilateral cooperation 
agreements regarding evasion, the terms of any such completed 
agreements, and any cooperation and other activities conducted 
as a result of such agreements.

Reason for change

    A significant challenge for CBP in preventing and acting 
against evasion is that needed information is located in a 
foreign country or otherwise held by that country's government. 
The purpose of this provision is to give CBP an additional tool 
to address this challenge by requiring the negotiation of 
bilateral cooperation agreements with other countries regarding 
evasion. These agreements should allow the sharing of 
information to identify evasion, provide for the verification 
of such information and allow officials of the importing 
country to participate in such verifications.
    The Committee recognizes that some countries may not wish 
to enter into a bilateral cooperation agreement on evasion or, 
if such an agreement is in place, may refuse to allow U.S. 
government officials to participate in a verification under 
that agreement. Both actions are certainly within a country's 
sovereign right to take. However, CBP is directed to take this 
action into account in assessing the potential evasion risk of 
imports from such a country.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

               SECTION 415. TRADE NEGOTIATING OBJECTIVES

Present law

    No provision.

Explanation of provisions

    Section 415 establishes obtaining the commitments for 
cooperation on evasion described in section 414 as a 
negotiating objective for current trade agreements under 
negotiation and future agreements.

Reason for change

    This provision creates a second avenue for obtaining other 
counties' agreement to cooperate on evasion by seeking to 
include the commitments for cooperation on evasion sought in 
CBP bilateral agreements in currently negotiated and future 
trade agreements. This parallels commitments in past trade 
agreements regarding cooperation on trade in textiles.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

       SUBTITLE B--INVESTIGATION OF EVASION OF TRADE REMEDY LAWS


SECTION 421. PROCEDURES FOR INVESTIGATION OF EVASION OF ANTIDUMPING AND 
                       COUNTERVAILING DUTY ORDERS

Present law

    No provision.

Explanation of provisions

    Section 421 grants the Department of Commerce the authority 
to administratively investigate evasion and order CBP to 
collect or preserve for collection antidumping and 
countervailing duties owed on evading imports. In addition to 
defining required terms, Section 421(a) excludes from these 
investigations evasion that is the result of clerical errors 
unless the errors reflect a pattern of negligent conduct.
    Section 421(b) establishes the procedures for evasion 
investigations. The Department of Commerce may self-initiate an 
evasion investigation, or may initiate an investigation as a 
result of an adequate petition from an interested party or a 
referral from CBP. CBP is required to refer a matter to the 
Department of Commerce if CBP has information that evasion 
occurred, but cannot determine if the merchandise is in fact 
subject to an antidumping or countervailing duty order. The 
Department of Commerce has 30 days after receiving a petition 
or referral to determine whether to initiate an investigation. 
The Department of Commerce is to notify CBP if it initiates an 
evasion investigation as a result of a petition from an 
interested party.
    CBP is required to provide documents and information 
requested by the Department of Commerce for an evasion 
investigation within 10 days after the request and these 
documents and information will be available to authorized 
representatives of interested parties under an administrative 
protective order. If an authorized representative of an 
interested party has access to business proprietary information 
from another Department of Commerce proceeding under an 
administrative protective order issued in that proceeding and 
this information is relevant to an evasion investigation, the 
authorized representative may submit this information on the 
record of the evasion investigation. The Department of Commerce 
is authorized to issue questionnaires to interested parties in 
an evasion investigation and to make an adverse inference 
against a party that fails to cooperate to the best of its 
ability.
    The Department of Commerce is to issue a preliminary 
determination of whether there is a reasonable basis to believe 
or suspect evasion within 90 days after initiation of the 
investigation and a final determination of evasion within 300 
days after initiation. If the Department of Commerce makes an 
affirmative preliminary determination of evasion, CBP is to 
suspend liquidation of entries of evading merchandise on or 
after the preliminary determination and any unliquidated 
entries before that date. A cash deposit is also required for 
such entries reflecting the applicable rates previously 
determined by the Department of Commerce.
    If the Department of Commerce makes an affirmative final 
determination of evasion, CBP is to assess the applicable 
antidumping and countervailing duties on entries of evading 
merchandise, including such entries that were already 
liquidated, and to review and reassess the amount of bond or 
other security the importer must post for entries of such 
merchandise on or after the date of the final determination. 
The Department of Commerce may also instruct CBP to require a 
cash deposit or bond on entries of such merchandise on or after 
the date of the final determination in the amount of 
antidumping and countervailing duties potentially owed on the 
merchandise. If the Department of Commerce cannot determine the 
amount of the applicable antidumping and countervailing duty 
rate or cash deposit because the actual producer or exporter of 
the merchandise is unknown, then the highest amount for any 
producer or exporter will be applied. If the Department of 
Commerce makes a negative final determination of evasion, then 
any suspension of liquidation is ended and any cash deposits 
refunded. The preliminary and final determinations in an 
evasion investigation are to be published in the Federal 
Register, as well as the notice of initiation of such an 
investigation.
    If the Department of Commerce makes an affirmative 
preliminary or final determination of evasion, it is required 
to transmit the administrative record of the investigation to 
CBP and any other agency that requests the administrative 
record. After making a final determination, the Department of 
Commerce may also provide importers information discovered in 
an investigation that would help educate importers on complying 
with importing merchandise in accordance with U.S. laws and 
regulations.
    The Department of Commerce and CBP are to establish 
procedures to maximize cooperation and communication between 
the two agencies to quickly, efficiently, and accurately 
investigate allegations of evasion. The Department of Commerce 
will issue annual reports to Congress on the conduct of evasion 
investigations.
    Section 421(b) makes a technical amendment to the table of 
contents for Title VII of the Trade Act of 1930 to reflect this 
subtitle.
    Section 421(c) establishes that the Department of 
Commerce's final determination in an evasion investigation is 
subject to judicial review by the U.S. Court of International 
Trade.
    Section 421(d) instructs the Department of Commerce and CBP 
to issue regulations to implement this subtitle.
    Section 421(e) provides that the amendments in this 
subtitle are effective 180 days after enactment and applies to 
merchandise entered on or after the date of enactment.

Reason for change

    CBP has a critical role in preventing and acting against 
evasion. Evasion often involves the violation of laws and 
regulations enforced by CBP, and Congress expects CBP to fully 
enforce those laws and regulations. However, CBP sometimes 
requires time to conduct an inquiry into evasion and collect 
the evidence needed to meet the criteria to apply the relevant 
laws and regulations. The law-enforcement nature of CBP's 
actions makes it inappropriate to subject those actions to 
timelines. In a review of the challenges faced by CBP in 
investigating evasion, the Government Accountability Office 
concluded that ``verifying evasion is an inherently difficult 
and time-consuming process.'' (Antidumping and Countervailing 
Duties: Management Enhancements Needed to Improve Efforts to 
Detect and Deter Duty Evasion, GAO-12-551 (May 2012) at 19).
    In the meantime, though, evasion continues, leaving 
antidumping and countervailing duties uncollected and U.S. 
industries denied an effective remedy from unfair trade. The 
Committee has often heard from concerned domestic industries 
that timely collection of the antidumping and countervailing 
duties owed on evading imports is as important or even more 
important than having the parties involved in evasion subject 
to penalties or criminal liability.
    As a result, this provision grants the Department of 
Commerce the authority to administratively investigate evasion 
and instruct CBP to collect or preserve for collection 
antidumping and countervailing duties owed on evading imports. 
The Department of Commerce is the appropriate agency to conduct 
these investigations because it already has in-depth expertise 
concerning the products subject to antidumping and 
countervailing duties, as well as the markets, production 
processes, and distribution networks for those products. Such 
expertise would certainly be more difficult to transfer to 
another agency compared to having other agencies transfer 
relevant information for an evasion investigation that they may 
hold, such as entry data and documents. The Department of 
Commerce also already has the experience and institutional 
structure to conduct evasion investigations subject to 
timelines and in a transparent manner that allows domestic 
industries and other interested parties to meaningfully 
participate. The Committee believes that there is no agency 
better suited to effectively conduct administrative 
investigations of evasion, nor one that can as quickly and 
effectively establish the capability to conduct such 
investigations.
    This provision ensures that the Department of Commerce 
conducts these investigations subject to strict deadlines so 
that delay in collecting antidumping and countervailing duties 
on evading imports is limited. The Department of Commerce's 
procedures and tools from its other antidumping and 
countervailing duty actions are also incorporated. Authorized 
representatives of interested parties can obtain access to 
business proprietary information through an administrative 
protective order, the Department of Commerce can obtain 
information through issuing questionnaires and can verify the 
accuracy of that information through onsite verifications. The 
Department of Commerce is empowered to make an adverse 
inference against a party that does not act to the best of its 
ability to comply with a request for information. In addition, 
like the Department of Commerce's other determinations, the 
results of an evasion investigation are subject to judicial 
review.
    In sum, this provision creates a robust investigatory 
process that effectively responds to the need for relatively 
quick identification of evasion and collection of antidumping 
and countervailing duties on evading imports. The Committee 
expects that these investigations be conducted by Enforcement 
and Compliance within the Department of Commerce's 
International Trade Administration. This office is best suited 
to conduct evasion investigations because it is already 
responsible for enforcing the antidumping and countervailing 
duty laws. The Committee also expects that resources be made 
available within the Department of Commerce to enable 
Enforcement and Compliance to effectively conduct evasion 
investigations under this provision.
    Finally, the creation of this evasion investigation process 
for the Department of Commerce in no way diminishes the 
responsibility of CBP to act against evasion. CBP is also 
required by this provision to provide entry documents, records, 
and other information to the Department of Commerce within 10 
days after the request so the Department of Commerce is not 
delayed in conducting its investigations. In addition, CBP and 
the Department of Commerce are required to establish procedures 
to improve cooperation, and both agencies are required to 
notify the other of findings of potential or confirmed evasion.

Effective date

    The provision is effective 180 days after enactment and 
applies to merchandise entered on or after the date of 
enactment.

          SECTION 422. GOVERNMENT ACCOUNTABILITY OFFICE REPORT

Present law

    No provision.

Explanation of provisions

    Not later than 2 years after the enactment of this act the 
General Accountability Office is to issue a report to Congress 
on the effectiveness of this subtitle and the actions taken and 
procedures developed by the Department of Commerce and CBP 
pursuant to this subtitle to prevent evasion.

Reason for change

    The General Accountability Office report will enable 
Congress to consider the effectiveness of the Department of 
Commerce's investigations of evasion, with the aim of 
identifying any needed amendments to law or practice, as well 
as enabling Congress to provide oversight over the 
implementation of this subtitle by the Department of Commerce 
and CBP.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

                       SUBTITLE C--OTHER MATTERS


           SECTION 431. ALLOCATION AND TRAINING OF PERSONNEL

Present law

    No provision.

Explanation of provisions

    Section 431 requires CBP, to the maximum extent possible, 
to assign sufficient personnel responsible for preventing and 
investigating evasion and to provide adequate training for such 
personnel.

Reason for change

    The ability of CBP to effectively prevent and act against 
evasion depends on having a sufficient number of personnel with 
adequate training and expertise. Deploying such personnel to 
ports based on risk assessments of potential evasion ensures 
that such personnel are used in the most effective and 
efficient manner possible. The Committee expects CBP to take 
advantage of the product and market expertise of the U.S. 
industries affected by evasion in training CBP personnel. This 
training can include presentations by representatives of these 
industries on the products and markets involved in potential 
evasion.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

SECTION 432. ANNUAL REPORT ON PREVENTION OF EVASION OF ANTIDUMPING AND 
                       COUNTERVAILING DUTY ORDERS

Present law

    No provision.

Explanation of provisions

    Section 432(a) directs CBP, in consultation with the 
Department of Commerce and ICE, to provide Congress with an 
annual report on efforts to prevent and investigate evasion.
    The required contents of the report are described in 
Section 432(b). In addition to metrics on CBP's activities, 
resource allocation and training regarding evasion, the report 
must include a description of CBP's policies and practices 
regarding evasion, any changes in such policies and practices, 
and any recommended legislative or other changes to improve the 
effectiveness of CBP in preventing and identifying evasion.

Reason for change

    Annual reports from CBP on efforts to prevent and 
investigate evasion will ensure that Congress remains up to 
date on what is being done to combat the significant problem of 
evasion and can provide effective oversight. The required 
metrics on CBP's activities, resource allocation, and training 
regarding evasion will give Congress insight on the scope of 
evasion, the effectiveness of CBP's actions against evasion, 
and CBP's responsiveness to parties' allegations of evasion. 
CBP must also report on policies and practices regarding 
evasion and any changes in such policies and practices so that 
Congress is informed as to how evasion is being addressed and 
how those efforts are being improved. The Committee encourages 
CBP and all other agencies involved with stopping evasion to 
continually seek improvements in their effectiveness.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

         SECTION 433. ADDRESSING CIRCUMVENTION BY NEW SHIPPERS

Present law

    Section 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 
1675(a)(2)(B)) allows new exporters and producers to obtain an 
individual weighted average dumping margin or individual 
countervailing duty rate on an expedited basis. While the 
review to determine the individual margin or duty rate is being 
conducted, an importer of the new exporter or producer's 
merchandise may post a bond or security instead of a cash 
deposit for entries of that merchandise.

Explanation of provisions

    Section 433 strikes the ability of an importer of a new 
exporter or producer's merchandise to post a bond or security 
instead of a cash deposit for entries of that merchandise while 
the Department of Commerce is determining the exporter or 
producer's individual weighted average dumping margin or 
individual countervailing duty rate. This section also adds the 
requirement that the individual weighted average dumping margin 
or individual countervailing duty rate for a new exporter or 
producer must be based on bona fide sales in the United States 
and sets out criteria to be considered in determining if such 
sales were bona fide.

Reason for change

    The Committee is concerned that the ability of new 
exporters and producers to obtain their own individual weighted 
average dumping margins or individual countervailing duty rates 
from the Department of Commerce on an expedited basis (known as 
``new shipper reviews'') has been abused to avoid antidumping 
and countervailing duties. One area of abuse is taking 
advantage of the option to post a bond or security, rather than 
the normally required cash deposit, while the Department of 
Commerce conducts a new shipper review. This allows an importer 
to bring in large quantities of dumped or subsidized 
merchandise from the exporter or producer under review without 
having to provide in cash the full amount of estimated duties 
that could be owed on those imports. Having to put up less 
capital makes it easier for unscrupulous importers to enter 
into schemes to bring in dumped and subsidized merchandise with 
the intent of disappearing or otherwise not being available to 
pay the antidumping and countervailing duties owed on the 
imports. This loophole would be closed by requiring importers 
of merchandise from a producer or exporter in a new shipper 
review to provide a cash deposit of estimated duties.
    Another area of abuse in new shipper reviews is for an 
exporter or producer to enter into a scheme to structure a few 
sales to show little or no dumping or subsidization when those 
sales are reviewed by the Department of Commerce during a new 
shipper review, resulting in a low or zero antidumping or 
countervailing duty rate for that producer or exporter. An 
importer could then bring in that producer or exporter's 
merchandise at highly dumped or subsidized prices but with 
little or no cash deposit. The problem is further exacerbated 
if the importer disappears or otherwise becomes unavailable to 
pay the duties owed and CBP has little or no cash deposit 
against which to recover the owed duties. This provision would 
prevent such arrangements by requiring that the U.S. sales in a 
new shipper review be bona fide sales and setting out criteria 
for identifying bona fide sales, reflecting the Department of 
Commerce's current regulations and practices in this area.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

               TITLE V--ADDITIONAL ENFORCEMENT PROVISIONS


               SECTION 501. TRADE ENFORCEMENT PRIORITIES

Present law

    No provision.

Explanation of provisions

    Section 501 requires the Administration to identify, in 
close consultation with Congress, enforcement priorities and to 
more regularly consult with Congress on the Administration's 
enforcement strategy. This section also directs the 
Administration to focus its enforcement actions on addressing 
practices that, if eliminated, would likely have the most 
significant potential to increase economic growth of the United 
States.

Reason for change

    Section 501 amends the Trade Act of 1974 by adding a new 
section 310 that requires the Administration to regularly 
identify trade enforcement priorities and consult with the 
Committee about those priorities and any action taken to 
resolve the enforcement actions. The Committee intends these 
provisions to strengthen Congress's role in the identification 
of enforcement priorities and to encourage greater consultation 
with Congress about the Administration's enforcement agenda.
    Section 310(a)(1) now requires the Administration to 
consult with Congress on prioritization of government actions 
that create or maintain barriers to U.S. goods, services, or 
investment.
    Section 310(a)(2) directs USTR to identify trade 
enforcement priorities that are likely to have the most 
significant impact on U.S. economic growth and to take into 
account specific Congressional priorities.
    New Section 310(b) requires the Administration to engage in 
semi-annual enforcement consultations with the Committee. These 
consultations shall include acts, policies, or practices of 
concerns as well as consultation on active investigations and 
ongoing enforcement actions. The consultations will also 
address the availability and deployment of enforcement 
resources.
    New Section 310(c) directs the Administration to take 
certain action with regard to trade enforcement priorities 
identified under subsection a(2), up to initiating dispute 
resolution proceedings.
    New Section 310(d) requires the Administration to notify 
and consult with the Committee prior to the initiation of 
enforcement actions and before the announcement of any report 
of a dispute settlement panel or the Appellate Body of the WTO 
or under any other trade agreement of the United States. The 
Committee expects that consultations prior to the initiation of 
enforcement actions will be detailed and with adequate prior 
notice.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

 SECTION 502. EXERCISE OF WTO AUTHORIZATION TO SUSPEND CONCESSIONS OR 
                OTHER OBLIGATIONS UNDER TRADE AGREEMENTS

Present law

    Under section 307(c) of the Trade Act of 1974, a particular 
action taken under section 301 automatically terminates after 4 
years if neither the petitioner nor any representative of the 
domestic industry that benefits from such action has requested 
its continuation during the last 60-days of the 4-year period.

Explanation of provisions

    Section 502 allows the Administration, under certain 
conditions, to reinstate a retaliatory action if such action 
has terminated previously. To reinstate such action, the 
Administration must receive a request from an affected domestic 
industry and engage in a detailed analysis and robust 
consultations with Congress and the public.

Reason for change

    Section 502 amends the Trade Act of 1974 to address the 
situation in which the imposition of retaliatory tariffs have 
expired under Section 307(c), but the offending country has not 
yet come into compliance with its obligations and the 
Administration believes that it is once again necessary to 
reinstate retaliatory tariffs. In such a situation, any 
representative of the domestic industry that benefits from such 
action may submit a written request to reinstate the action. It 
is the Committee's intent that the Administration, upon 
receiving such a request, will complete the consultation and 
review requirements set forth in Sections 306(d) and 307(c) 
before taking any action. However, the Committee does not 
intend that the Administration reinitiate the entire Section 
301 process, but instead that such action will be taken 
pursuant to this provision only to continue an already 
initiated action that has not been resolved.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

                     SECTION 503. TRADE MONITORING

Present law

    No provision.

Explanation of provisions

    Section 503(a) requires the International Trade Commission 
to make a web-based import monitoring tool available that 
provides public access to data on the volume and value of goods 
imports for the purposes of determining if such data has 
changed over time. The data used will be from the Department of 
Commerce and any other appropriate government data, and will 
include data from the most recent quarter for which such data 
are available, plus previous quarters as practicable.
    This provision further requires the Department of Commerce 
to publish on a website monitoring reports on changes in the 
volume and value of imports and exports of goods categorized 
based on the 6-digit subheadings of the Harmonized Tariff 
Schedule of the United States. The Department of Commerce must 
also notify Congress when the reports are available. These 
reports are to be published at least quarterly and have data 
for the most recent quarter for which such data are available, 
as well as previous quarters as practicable. The Department of 
Commerce is required to solicit public comment on the 
monitoring reports through the Federal Register.
    This provision is to terminate seven years after the date 
of enactment.
    Section 503(b) makes the clerical amendment of adding the 
title of this section to the table of contents for the Trade 
Act of 1974 (19 USC 2101 et. seq.).

Reason for change

    Although the U.S. government collects and makes available 
U.S. import and export data, it is often not in an easily 
assessable form that allows the public to determine changes in 
trade, particularly small and medium-sized businesses that want 
to identify import and export trends for their particular 
product sector. Implementation by the International Trade 
Commission of an import monitoring tool and regular publication 
of trade monitoring reports by the Department of Commerce will 
enable the public, especially those engaged in or affected by 
international trade, to more easily be aware of changes in 
trade trends.

Effective date

    The requirement for enactment of the International Trade 
Commission monitoring tool is not later than 180 days after 
enactment. The requirement for enactment of the Department of 
Commerce monitoring reports tool is not later than 270 days 
after enactment.

                   TITLE VI--MISCELLANEOUS PROVISIONS


                     SECTION 601. DE MINIMIS VALUE

Present law

    Section 321(a)(2)(C) of the Tariff Act of 1930 provides 
that individuals may import up to $200 in merchandise free of 
duties into the United States.

Explanation of provisions

    Section 601 raises the duty-free or de minimis threshold 
from $200 to $800.

Reasons for change

    The Committee believes that this section will simplify the 
customs entry process and offer significant benefits to CBP and 
the trade community. Increasing the de minimis level will 
significantly reduce paperwork burdens for low value shipments. 
Today, U.S. citizens returning from overseas are permitted to 
bring in up to $800 of purchases without having to file formal 
customs documentation or pay any duties. If the same U.S. 
citizen were to purchase the same goods overseas and ship them 
to the United States, anything over $200 would be subject to 
customs documentation requirements and duties. The Committee 
believes that this inconsistent treatment is not practical, 
especially considering the government resources that would be 
freed up to focus on high-risk shipments if these amounts were 
made to be consistent.
    This legislation will not have a negative impact on 
security, as manifest information is required for all 
shipments, regardless of value. Manifest information for each 
shipment is analyzed for security threats and subject to CBP 
risk assessment and targeting prior to arrival in the United 
States. And because this change applies only to smaller and 
low-value shipments, there is no risk of a spike in commercial 
violations as a result of the change. Simplifying and 
streamlining the entry process for these low-value shipments 
will help to stimulate the economy, facilitate legitimate 
trade, and free CBP resources to focus enforcement efforts on 
high-risk trade.

Effective date

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

    SECTION 602. CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNCTIONS

Present law

    Section 401(c) of the Safety and Accountability for Every 
Port (SAFE Port) Act requires the Secretary of Homeland 
Security to consult with the business community involved in 
international trade, including the COAC, on Department policies 
that have a significant impact on international trade and 
customs revenue functions. Furthermore, section 401(c) requires 
that the Secretary notify the appropriate congressional 
committees at least 30 days before finalizing policies or 
actions that will have a major impact on international trade 
and customs revenue functions, except if it is determined that 
it is in the interest of national security to finalize policies 
or actions prior to consultations with the business community 
and appropriate congressional committees.

Explanation of provisions

    Section 602 amends section 401(c) of the SAFE Port Act by 
requiring the Secretary of Homeland Security to consult with 
the business community involved in international trade at least 
30 days before proposing and at least 30 days before finalizing 
any Department policies or actions that will have an impact on 
international trade and customs revenue functions. The bill 
also extends the notice for appropriate congressional 
committees by requiring the Secretary of Homeland Security to 
provide at least 60 days notification before proposing and at 
least 60 days before finalizing Department policies or actions 
that have an impact on international trade.

Reasons for change

    The Committee believes that it is necessary for the 
Department of Homeland Security to consult with Congress and 
those in the business community impacted by any changes in the 
Department's trade and customs revenue functions. The Committee 
understands that businesses are often required to make changes 
to standard practices to comply with significant changes, which 
can require significant preparation, time, and resources. It 
would be more efficient for the agency to consult with impacted 
parties prior to heading down a path that may not be the most 
effective or efficient. The Committee understands that the 
Department of Homeland Security may sometimes wish to move 
ahead with policy decisions without consultations in light of 
national security concerns, but the Committee still believes 
that consultations should occur as soon as feasible without 
compromising any national security concerns.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

               SECTION 603. PENALTIES FOR CUSTOMS BROKERS

Present law

    Section 641(d)(1) of the Tariff Act of 1930 authorizes the 
Secretary of the Treasury to impose a monetary penalty or 
revoke or suspend a license or permit of any customs broker if 
the broker has acted contrary to law or regulations.

Explanation of provisions

    Section 603 amends section 641(d)(1) of the Tariff Act of 
1930 by adding to the list of offenses as grounds for a 
monetary penalty or removal of a broker license committing or 
conspiring to commit an act of terrorism.

Reasons for change

    The Committee believes that it would be contrary to public 
policy to permit an individual or organization to provide 
customs brokerage service if the individual or organization has 
committed, or conspired to commit, an act of terrorism.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

SECTION 604. AMENDMENTS TO CHAPTER 98 OF THE HARMONIZED TARIFF SCHEDULE 
                          OF THE UNITED STATES

Present law

    U.S. Note 3 to subchapter II of Chapter 98 of the 
Harmonized Tariff Schedule of the United States (HTS) allows a 
partial or complete duty exemption for articles returned to the 
United States, after having been exported to be advanced in 
value or improved in condition by means of repairs or 
alterations. It also allows goods to be entered duty free if 
the goods are a product of the United States when returned 
after having been exported, without having been advanced in 
value or improved in condition by any process of manufacture or 
other means while abroad.
    The article description for heading 9801.00.10 of the HTS 
establishes that products of the United States, when returned 
after having been exported without having been advanced in 
value or improved in condition by any process of manufacture or 
other means abroad, will be duty-free.

Explanation of provisions

    Section 604(a) amends U.S. Note 3 to subchapter II of 
Chapter 98 of the HTS by modernizing existing inventory 
management rules by subtracting the value of U.S. components 
assembled into the final product that will be entered into the 
commerce of the United States for articles exported and 
returned after being improved abroad.
    Section 604(b) amends the article description for heading 
9801.00.10 of the HTS by reducing record-keeping burdens on 
goods returned to the United States without improvement abroad 
so that duties are not assessed twice.
    Section 604(c) amends subchapter I of chapter 98 of the HTS 
by inserting new heading 9801.00.11, which provides duty-free 
treatment for certain U.S. government property returned to the 
United States.

Reasons for change

    The Committee believes that these changes will reduce 
paperwork burdens and costs for businesses, which will increase 
U.S. competitiveness in the global marketplace.

Effective date

    The amendments made by this section shall take effect 60 
days after the enactment of this Act.

SECTION 605. EXEMPTION FROM DUTY OF RESIDUE OF BULK CARGO CONTAINED IN 
   INSTRUMENTS OF INTERNATIONAL TRAFFIC PREVIOUSLY EXPORTED FROM THE 
                             UNITED STATES

Present law

    No provision.

Explanation of provisions

    Section 605 amends General Note 3(e) of the Harmonized 
Tariff Schedule of the United States (HTS) to remove from 
formal entry requirements residue of bulk cargo contained in 
instruments of international traffic (IIT) previously exported 
from the United States.

Reason for change

    When cargo containers return to the United States from 
Mexico or Canada, they often hold trace amounts of residue from 
the original product transported in the container. Typically, 
these containers are reloaded with the same product or 
completely cleaned in the United States upon return. 
Historically, CBP allowed companies to enter containers with 
residue as IITs, exempting them from formal entry requirements 
and therefore the imposition of duties. In 2009, CBP reversed 
this longstanding practice, requiring IITs with residue to be 
manifested and formally entered through a formal customs 
ruling. Due to significant concerns voiced by businesses 
affected by this ruling, CBP has delayed the implementation 
date of this decision.
    The Committee has consulted with CBP on this matter and 
understands that any exemption from formal entry requirements 
would in no way impact CBP's requirement for imports to be 
manifested. It is critical for CBP to receive manifest 
information from importers to conduct security targeting on all 
imports into the United States. The Committee believes that 
this section firmly leaves any manifesting requirements in 
place, but clearly exempts from formal entry requirements, and 
therefore the payment of customs duties, residue of bulk cargo 
contained in IITs previously exported from the United States.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

                   SECTION 606. DRAWBACK AND REFUNDS

Present law

    Section 313 of the Tariff Act of 1930 authorizes a refund, 
known as drawback, of certain duties, internal revenue taxes, 
and certain fees collected upon the importation of goods. Such 
refunds are allowed only upon the exportation or destruction of 
goods under CBP supervision.

Explanation of provisions

    Section 606(a) amends section 313(a) of the Tariff Act of 
1930 by establishing that the amount of drawback claimed must 
be calculated pursuant to section 313(l) of the Tariff Act of 
1930, as amended by this bill.
    Section 606(b) amends section 313(b) of the Tariff Act of 
1930 by allowing substitution drawback for imported merchandise 
or merchandise classifiable under the same 8-digit HTS used in 
the manufacture or production of articles; establishes that the 
amount of drawback claimed must be calculated pursuant to 
section 313(l) of the Tariff Act of 1930, as amended by this 
bill, and such claim must be filed within 5 years of the 
importation of the merchandise. This subsection further allows 
records kept in the normal course of business to be used to 
demonstrate the transfer of merchandise, requires a drawback 
claimant to submit a bill of materials to demonstrate the 
merchandise was incorporated into an exported article, and 
provides a special exemption for sought chemical elements.
    Section 606(c) amends section 313(c) of the Tariff Act of 
1930 by extending the filing deadline for drawback claims for 
merchandise not conforming to sample or specifications to 5 
years from the date of importation. This subsection further 
establishes that the amount of drawback claimed must be 
calculated pursuant to section 313(l) of the Tariff Act of 
1930, as amended by this bill, and allows records kept in the 
normal course of business to be used to demonstrate the 
transfer of merchandise.
    Section 606(d) amends section 313(i) of the Tariff Act of 
1930 to require that a person claiming drawback shall provide 
proof of the exportation of the article, that such proof shall 
fully establish the date and fact of exportation and identity 
of the exporter, and may be established either by records kept 
in the normal course of business or through an electronic 
export system of the United States Government.
    Section 606(e) amends section 313(j) of the Tariff Act of 
1930 by allowing unused drawback claims for merchandise 
classifiable under the same 8-digit HTS subheading number as 
such imported merchandise. Merchandise may not be substituted 
for imported merchandise for drawback purposes based on the 8-
digit HTS if the article description for the 8-digit HTS begins 
with the term ``other.'' In these instances, merchandise may be 
substituted for imported merchandise if such imported 
merchandise is classifiable under the same 10-digit HTS. If the 
10-digit HTS begins with the term ``other,'' then substitution 
drawback is not permissible and the drawback claimant must use 
direct identification under section 313(a) of the Tariff Act of 
1930, as amended by this Act. For unused merchandise that is 
either exported or destroyed, the Department of Commerce 
Schedule B number may be used to demonstrate that an article 
and merchandise are classifiable under the same 8-digit HTS 
without regard to whether or not the Schedule B number 
corresponds to more than one 8-digit HTS number. Furthermore, 
this subsection amends the filing deadline for drawback claims 
to be 5 years from the date of importation and establishes that 
the amount of drawback claimed must be calculated pursuant to 
section 313(l) of the Tariff Act of 1930, as amended by this 
bill.
    Section 606(f) amends section 313(k) of the Tariff Act of 
1930 by providing that any person making a drawback claim is 
liable for the full amount of the drawback claimed. Any person 
claiming drawback shall be jointly and severally liable with 
the importer for the lesser of the amount of drawback claimed 
or the amount the importer authorized the other person to 
claim.
    Section 606(g) amends section 313(l) of the Tariff Act of 
1930 to require the Secretary of the Treasury to prescribe 
regulations for the calculation of drawback that cannot exceed 
99 percent of the lesser of the amount of duties, taxes, and 
fees paid with respect to the imported merchandise or the 
amount of duties, taxes, and fees that would apply to the 
exported article if the exported article were imported. This 
section requires the promulgation of the necessary regulations 
within 2 years. Additionally, one year after the enactment of 
this Act, and annually thereafter until the regulations 
required under this subsection are promulgated, the Secretary 
shall submit to Congress a report on the status of the 
regulations.
    Section 606(h) amends section 313(p) of the Tariff Act of 
1930 to require evidence of transfer to be demonstrated with 
records kept in the normal course of business.
    Section 606(i) amends section 313(q) of the Tariff Act of 
1930 to require the amount of drawback shall be calculated 
pursuant to section 313(l) of the Tariff Act of 1930, as 
amended by this bill.
    Section 606(j) amends section 313(r) of the Tariff Act of 
1930 to establish that a drawback entry shall be filed or 
applied for, as applicable, no later than 5 years after the 
date on which merchandise on which drawback is claimed was 
filed. This section also requires drawback claims to be filed 
electronically no later than 2 years after the date of the 
enactment of this Act.
    Section 606(k) amends section 313(s) of the Tariff Act of 
1930 by allowing a drawback successor to designate unused 
imported merchandise, other merchandise classifiable under the 
same 8-digit HTS subheading number as such imported 
merchandise, or any combination of such imported merchandise 
and such other merchandise, that the predecessor received, 
before the date of succession, from the person who imported and 
paid any duties, taxes, and fees due on the imported 
merchandise as the basis for drawback on merchandise possessed 
by the drawback successor after the date of succession.
    Section 606(l) strikes section 313(t) of the Tariff Act of 
1930.
    Section 606(m) amends section 313(x) of the Tariff Act of 
1930 by requiring the amount of drawback claimed pursuant to 
section 313(l) of the Tariff Act of 1930, as amended by this 
bill, to be reduced by the value of any materials reclaimed 
during the destruction of unused merchandise.
    Section 606(n) defines key terms.
    Section 606(o) amends section 508(c)(3) of the Tariff Act 
of 1930 by requiring records for drawback claims to be 
maintained for 5 years after the date of liquidation.
    Section 606(p) requires the Government Accountability 
Office (GAO) to provide the Senate Committee on Finance and the 
House Committee on Ways and Means with a report that shall 
include: 1) an assessment of the modernization of drawback and 
refunds; 2) a description of drawback claims that were 
permissible before the enactment of the bill that are not 
permissible after, and an identification of industries most 
affected; and 3) a description of drawback claims that were not 
permissible before the enactment of this bill that are after, 
and an identification of industries most affected.
    Section 606(q) provides that the amendments made by this 
section shall take effect upon enactment of this bill and apply 
to drawback claims filed on or after the date that is 2 years 
after such enactment. This section also requires the Secretary 
of the Treasury to submit a report to Congress, no later than 
two years after enactment of this bill, on the date on which 
the Automated Commercial Environment (ACE) will be ready to 
process claims and the date on which the Automated Export 
System (AES) will be ready to accept proof of exportation. 
Lastly, this section provides for a one-year transition for 
filing drawback claims under section 313 as amended by this 
section, or under section 313 in effect before the enactment of 
this bill.

Reason for change

    Drawback was initially authorized by the Second Act of 
Congress in 1789, and has been a critical export program even 
since. The rationale for duty drawback has always been to 
increase U.S. competitiveness in the global marketplace, 
encourage U.S. manufacturing by enabling manufacturers to take 
advantage of economical raw materials, and promote U.S. exports 
and jobs. As business practices have modernized, and continue 
to do so, CBP has been unable to modernize its drawback 
practices due to constraints posed by current law.
    Under current law, CBP is required to issue rulings on 
commercial interchangeability, which is paper-heavy, time-
consuming, and resource-intensive. Current law also prescribes 
multiple timeframes for drawback eligibility and paper 
certifications. In fact, the entire drawback process is very 
paper-heavy. In an era when the rest of CBP is being pushed by 
the business community and Congress to streamline its 
processing and fully automate, the Committee believes it is 
senseless to maintain a burdensome paper-heavy process in such 
a key area of CBP operations.
    This section initiates drawback modernization by allowing 
use of eight-digit Harmonized Tariff System (HTS) 
classifications for determining eligibility for drawback 
claims, makes time-frames for filing drawback claims 
consistent, and requires the Secretary of the Treasury to 
promulgate regulations on the calculation of drawback 
consistent with this section. These changes, very importantly, 
require CBP to automate drawback processing through utilization 
of the Automated Commercial Environment.

Effective date

    The amendments made by this section shall take effect upon 
enactment of this Act and apply to drawback claims filed on or 
after the date that is 2 years after such date of enactment.

     SECTION 607. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

Present law

    The Office of the United States Trade Representative (USTR) 
is required to submit to Congress an Annual Report on Trade 
Agreements Program and National Trade Policy Agenda, pursuant 
to 19 U.S.C. 2213; a budget justification, pursuant to 31 
U.S.C. 1105; and an agency strategic plan, pursuant to 5 U.S.C. 
306.

Explanation of provision

    The section requires that, in its Annual Report on Trade 
Agreements Program and National Trade Policy Agenda to 
Congress, USTR must submit additional information regarding 
USTR-led interagency programs, including the Interagency Trade 
Enforcement Center. Specifically, the section requires that 
USTR report on the objectives and priorities of all USTR-led 
interagency programs; the actions proposed, or anticipated, to 
be undertaken to achieve such objectives and priorities, 
including actions authorized under the trade laws and 
negotiations with foreign countries; the role of each Federal 
agency participating in the interagency program in achieving 
such objectives and priorities and activities of each agency 
with respect to their participation in the program; USTR's 
coordination of each participating Federal agency to more 
effectively achieve such objectives and priorities; any 
proposed legislation necessary or appropriate to achieve such 
objectives or priorities; and prior progress made in achieving 
such objectives and priorities and coordination activities.
    The section also requires that USTR submit a report to 
Congress, in conjunction with the President's budget, regarding 
its annual plan to match available agency resources with 
projected workload and provide a detailed analysis of how the 
prior year's funds were spent; identify existing and new staff 
necessary to support the functions and powers of USTR; identify 
USTR and other Federal agency staff who will be required to be 
detailed to support USTR-led interagency programs; and provide 
detailed analysis of the budgetary requirements of USTR-led 
interagency programs.
    In addition, the section requires that USTR submit to 
Congress a quadrennial plan, in conjunction with agency 
strategic plans already required under statute, with some 
additional requirements: analyzing internal quality controls 
and record management; identifying existing and new staff 
necessary to support the functions and powers of USTR; 
identifying existing USTR and other Federal agency staff who 
will be required to be detailed to support USTR-led interagency 
programs; providing an outline of budget justifications, 
including salaries, expenses, and non-personnel administrative 
costs, required under the strategic plan; providing an outline 
of budget justifications for USTR-led interagency programs. 
This quadrennial plan is required in conjunction with the 
agency strategic plan produced at the beginning of every new 
Presidential Administration; this section requires USTR to 
submit the initial report separately, on February 1, 2016.

Reasons for change

    The Committee is statutorily requiring that USTR provide 
more information to Congress in conjunction with existing 
required reports because USTR has been insufficiently 
responsive to various Congressional requests on the covered 
issues over the past few years. With respect to USTR-led 
interagency activities, in February 2012, through Executive 
Order 13601, the President created the Interagency Trade 
Enforcement Center (ITEC), without any prior consultation with 
Congress. The Committee notes that USTR was ill-prepared to 
handle the budgetary and staffing impacts of creating the ITEC, 
which ended up constituting nearly two percent of USTR's FY 
2013 budget. Since the ITEC's creation in 2012, USTR has been 
unable to provide to the Committee a clear description and 
accounting of the ITEC's actual duties and activities. While 
the Committee supports strong enforcement efforts by USTR, it 
expects that USTR provide information concerning the ITEC to 
Congress with the greatest degree of transparency possible.
    The Committee notes that USTR's handling of the budgetary 
impacts of the ITEC exposed the agency's insufficient long- and 
short-term planning with regard to allocation of its resources 
and existing and future staffing needs. The Committee believes 
that additional reporting requirements in conjunction with 
USTR's budgetary filings and agency strategic plans will 
require USTR to focus more on resource allocation and allow the 
agency to better plan ahead, particularly in the face of 
simultaneous negotiation of the Trans-Pacific Partnership, the 
Trans-Atlantic Trade and Investment Partnership, the Trade in 
Services Agreement, and other trade negotiations, as well as 
significant monitoring and enforcement activity.

Effective date

    The amendments made by this section shall take effect upon 
enactment of this Act.

   SECTION 608. UNITED STATES-ISRAEL TRADE AND COMMERCIAL ENHANCEMENT

Present law

    No provision.

Explanation of provision

    This section sets out U.S. policy identifying the 
importance of the bilateral U.S.-Israel trade relationship. 
This section states that among the principal U.S. trade 
negotiating objectives for trade agreements with foreign 
countries is to discourage actions to boycott, divest from, or 
sanction Israel. The section requires the President to report 
annually to Congress on politically motivated acts of boycott, 
divestment from, and sanctions against Israel. This section 
also amends the Securities Exchange Act of 1934 to require 
reporting by a foreign issuer of such acts. In addition, this 
section requires that no U.S. court may recognize or enforce 
any judgment by a foreign court against a U.S. person doing 
business with Israel, and on which is based a determination by 
the foreign court that the location in Israel, or in any 
territory controlled by Israel, of the facilities at which the 
business operations are carried out is sufficient to constitute 
a violation of law.

Reasons for change

    The Committee recognizes that the boycott, divestment, and 
sanction (BDS) Israel movement globally is of significant 
concern. The Committee has therefore included negotiating 
objectives for proposed trade agreements that specifically 
direct the United States to discourage and eliminate such 
actions by U.S. trading partners. However, the Committee also 
expects the Administration to explore addressing these actions 
in other fora, including other bilateral and multilateral 
programs or activities of international engagement including 
but not limited to the World Trade Organization (WTO), Group of 
20 (G20), the Organization for Economic Cooperation and 
Development (OECD), and the Asia-Pacific Economic Cooperation 
(APEC). The Committee believes that the report the President is 
required to submit to Congress as well as the Securities 
Exchange Act reporting requirements for foreign issuers will be 
critical to exposing, weakening, and diminishing the BDS 
movement. Finally, the requirement that no U.S. court may 
recognize or enforce a foreign judgment based on a U.S. 
person's business operations in Israel protects U.S. persons 
from unwarranted legal actions based on BDS principles in 
foreign jurisdictions. The Committee supports continuing to 
strengthen United States-Israel economic cooperation and 
recognizes the tremendous strategic, economic, and 
technological value of cooperation with Israel.

Effective date

    The amendments made by this section are effective upon 
enactment of this Act.

SECTION 609. ELIMINATION OF CONSUMPTIVE DEMAND EXCEPTION TO PROHIBITION 
   ON IMPORTATION OF GOODS MADE WITH CONVICT LABOR, FORCED LABOR, OR 
                        INDENTURED LABOR; REPORT

Present law

    Section 307 of the Tariff Act of 1930 prohibits the 
importation of foreign-made goods that were manufactured or 
produced by convict, forced, or indentured labor, except in 
such quantities as necessary to meet the consumptive demands of 
the United States.

Explanation of provisions

    Section 609 eliminates the ``consumptive demand'' exception 
to the prohibition on importing goods made by convict, forced, 
or indentured labor, and requires the Commissioner to provide a 
report to Congress that includes: 1) the number of instances in 
which merchandise was denied entry pursuant to this section 
during the preceding 1-year period; 2) a description of the 
merchandise denied entry pursuant to this section; and 3) such 
other information the Commissioner considers appropriate with 
respect to monitoring and enforcing compliance with this 
section.

Reason for change

    This section removes a provision that permitted the 
importation of goods that otherwise would have been prohibited, 
but for the fact that they were not available in quantities to 
meet consumptive demand of the United States. Removing this 
provision ensures that goods, wares, articles, and merchandise 
made under such conditions may not legally enter the United 
States.
    The Committee does recognize, however, that the problem of 
coerced labor in developing countries is a complex and 
intractable one. To this point, the Committee further 
recognizes that some industries have implemented extensive 
programs to assist foreign governments in their efforts to 
develop and implement policies aimed at eliminating coercive 
labor practices within their borders. The elimination of the 
consumptive demand provision is not intended to discourage such 
efforts to address wide-scale social problems that contribute 
to the conditions in which convict, forced, or indentured labor 
exists in particular countries. Moreover, the Committee does 
not intend that the elimination of the consumptive demand 
exception permit, without substantiation of facts, the 
application of broad import bans that may also indirectly 
interfere with such efforts.
    It is further the sense of the Committee that, consistent 
with current practice, determinations to prohibit a particular 
shipment may not be based solely on country of origin, or a 
finding that coercive labor practices are known to be used in a 
certain industry. Rather, the Secretary may take action under 
section 307 only after conducting an investigation of the 
allegations and determining that there is evidence that a 
particular shipment of covered goods was produced using 
coercive labor practices.
    Finally, the Committee wishes to express support for the 
continuation of collaborative efforts aimed at addressing the 
problem of coercive labor practices, and also wishes to 
encourage foreign governments to take an active role in 
combating these practices within their borders.

Effective date

    The amendments made by this section shall take effect 15 
days after the date of enactment of this Act.

                     SECTION 610. CUSTOMS USER FEES

Present law

    Under Section 13031(a) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985, the Secretary of the Treasury is 
authorized to charge and collect fees for the provision of 
certain customs services. Pursuant to Section 13031(j)(3), the 
Secretary of the Treasury may not charge fees for the provision 
of certain customs services after September 30, 2024.

Explanation of provisions

    Section 610 amends Section 13031(j)(3)(A) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 to 
extend the period that the Secretary of the Treasury may charge 
for certain customs services for imported goods from July 8, 
2025 to July 28, 2025, and extends the ad valorem rate for the 
Merchandise Processing Fee collected by CBP that offsets the 
costs incurred in processing and inspecting imports from July 
1, 2025 to July 14, 2025.

Reason for change

    The Committee believes it is appropriate to extend the 
merchandise processing fees for budgetary offset purposes.

Effective date

    The amendments made by this section shall take effect upon 
enactment of this Act.

   SECTION 611. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER PROTECTION 
                               AGREEMENTS

Present law

    Section 560 of the Department of Homeland Security 
Appropriations Act of 2013 authorizes CBP to enter into certain 
reimbursable fee agreements for the provision of CBP services.
    Section 559 of the Department of Homeland Security 
Appropriations Act of 2014 establishes a pilot program 
authorizing CBP to enter into partnerships with private sector 
and government entities at ports of entry.

Explanation of provisions

    Section 611 requires the Commissioner to submit to Congress 
a detailed annual report on each reimbursable agreement and 
public-private partnership agreement into which CBP enters. 
Each report must include: 1) a description of the development 
of the program; 2) a description of the type of entity with 
which CBP entered into the agreement and the amount that entity 
reimbursed CBP under the agreement; 3) an identification of the 
type of port of entry to which the agreement relates and an 
assessment of how the agreement provides economic benefits at 
the port of entry; 4) a description of the services provided by 
CBP under the agreement during the year preceding the 
submission of the report; 5) the amount of fees collected under 
the agreement during that year; 6) a detailed accounting of how 
the fees collected under the agreement have been spent during 
that year; 7) a summary of any complaints or criticism received 
by CBP during that year regarding the agreement; 8) an 
assessment of the compliance with the terms of the agreement of 
the entity that entered into an agreement with CBP; 9) 
recommendations with respect to how activities conducted 
pursuant to the agreement could function more effectively or 
better produce economic benefits; and 10) a summary of the 
benefits to and challenges faced by CBP and the entity that 
entered into an agreement with CBP.

Reason for change

    The Committee believes it is important for CBP to 
communicate openly with Congress about the details of each 
reimbursable agreement and public-private partnership into 
which it enters. Though great progress has been made since the 
first agreement, CBP's lack of communication with Congress 
prior to entering into a partnership with the Abu Dhabi 
International Airport in 2013 led to a great deal of concern in 
the Committee and in the private sector, particularly from 
United States air carriers, about the nature of this agreement 
and its impact on our security and competitiveness. Regular 
communication after the fact shed light on the significant 
value of this partnership, and to this end, the Committee 
recognizes the benefit of such partnerships to CBP and to the 
public going forward. However, the Committee feels strongly 
that CBP must keep Congress apprised of these agreements to 
ensure that they are operating as intended, delivering valuable 
benefits, serving as a valuable resource to CBP and the public, 
and in no way harming United States interests and 
competitiveness.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

  SECTION 612. CERTAIN INTEREST TO BE INCLUDED IN DISTRIBUTIONS UNDER 
            CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000

Present law

    No provision.

Explanation of provisions

    Section 612(a) directs CBP to include in all distributions 
of collected antidumping and countervailing duties any and all 
interest earned on such duties that is, or was, realized 
through any payments received on or after October 1, 2014 
under, or in connection with, any customs bond pursuant to a 
court order or judgment, or settlement.
    Section 612(b) describes the distributions in subsection 
(a) as all distributions made on or after enactment pursuant to 
section 754 of the Trade Act of 1930 (19 U.S.C. 1675c) (as that 
section was in effect on February 7, 2006) of collected 
antidumping and countervailing duties assessed on or after 
October 1, 2000 on entries made through September 30, 2007.

Reason for change

    The section is intended to ensure that CBP complies with 
the law by distributing all interest payments to appropriate 
domestic producers. Specifically, the amendment requires that 
all interest collected by CBP in connection with any customs 
bond pursuant to a court order or judgment, or any settlement 
for such bond, related to antidumping and countervailing duties 
be distributed consistent with the provisions of the Continued 
Dumping and Subsidy Offset Act of 2000, as repealed by subtitle 
F of title VII of the Deficit Reduction Act of 2005. The 
section is prospective and applies only to future 
distributions, but does not affect or limit domestic 
industries' right to seek redress for past CBP actions.

Effective date

    The amendments made by this section shall take effect on 
the date of enactment of this Act.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 1907, to reauthorize trade facilitation 
and trade enforcement functions and activities, and for other 
purposes, on April 23, 2015.
    The bill, H.R. 1907, was ordered favorably reported as 
amended by voice vote (with a quorum being present).
    The vote on the amendment by Mr. Boustany to H.R. 1907, 
which would ensure that post-liquidation interest received from 
payments collected under a customs bond is available, where 
eligible, for the distribution to domestic producers in 
accordance with Continued Dumping and Subsidy Offset Act 
(CDSOA) was agreed to by voice vote (with a quorum being 
present). This amendment prohibits Customs from transferring to 
the General Treasury any payment received under a bond so that 
it is available to be distributed to domestic producers, where 
applicable.

                    IV. BUDGET EFFECTS OF THE BILL 


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 1907, as 
reported. The Committee believes the Congressional Budget 
Office (CBO) over-estimated the cost of the amendment by Mr. 
Boustany, and will continue to review the provision and 
estimate with CBO.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority. The 
Committee states further that the bill involves no new or 
increased 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 CBO, the following statement by CBO is 
provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 4, 2015.
Hon. Paul Ryan,
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. 1907, the Trade 
Facilitation and Trade Enforcement Act of 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 1907--Trade Facilitation and Trade Enforcement Act of 2015

    Summary: H.R. 1907 would amend various trade statutes with 
the goal of strengthening agency enforcement efforts and 
improving the efficiency of the regulatory process. The bill 
would:
         Authorize the appropriation of $154 million 
        annually over the 2016-2018 period for the Automated 
        Commercial Environment program in Customs and Border 
        Protection (CBP);
         Require the International Trade Administration 
        (ITA) to develop a system to investigate allegations of 
        antidumping and countervailing duty evasion and would 
        require CBP to improve and expand several trade 
        regulation programs;
         Extend the authority to collect and increase 
        the rate of certain customs user fees;
         Improve the claims process for refunds on 
        duties paid for certain imported merchandise and 
        increase the minimum value of goods for which duties 
        must be paid; and
         Increase the amount available for distribution 
        to eligible parties under the Continued Dumping and 
        Subsidy Offset Act (CDSOA).
    CBO estimates that enacting the bill would reduce revenues 
by $203 million over the 2015-2025 period and reduce direct 
spending by $4 million over the same period, resulting in a net 
increase in deficits over the 11-year period of $199 million. 
Pay-as-you-go procedures apply because enacting the legislation 
would affect direct spending and revenues. In addition, 
assuming appropriation of the necessary amounts, CBO estimates 
that implementing H.R. 1907 would cost $944 million over the 
2016-2020 period.
    H.R. 1907 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA), and would impose no 
costs on state, local, or tribal governments.
    H.R. 1907 contains private-sector mandates on entities 
required to pay merchandise processing fees. CBO estimates the 
aggregate cost of the mandates would exceed the annual 
threshold established in UMRA for private-sector mandates ($154 
million in 2015, adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 1907 is shown in the following table. 
The costs of this legislation fall within budget functions 370 
(advancement of commerce) and 750 (administration of justice).

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           By fiscal year, in millions of dollars--
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                2015      2016      2017      2018      2019      2020      2021      2022      2023      2024      2025    2015-2020  2015-2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   CHANGES IN DIRECT SPENDINGa
Customs User Fees:
    Estimated Budget Authority..............................         0         0         0         0         0         0         0         0         0         0      -204          0       -204
    Estimated Outlays.......................................         0        20        21        22        23        25        27        21        17        13        11        111        200
Payment of Interest on Certain Distributions Under the
 Continued Dumping and Subsidy Offset Act:
        Estimated Budget Authority..........................         0        20        21        22        23        25        27        21        17        13      -193        111         -4
        Estimated Outlays...................................         0        20        21        22        23        25        27        21        17        13      -193        111         -4
    Total Changes:
        Estimated Budget Authority..........................         0        20        21        22        23        25        27        21        17        13      -193        111         -4
        Estimated Outlays...................................         0        20        21        22        23        25        27        21        17        13      -193        111         -4
                                                                                       CHANGES IN REVENUES
 
Change in De Minimis Value..................................        -3       -14       -15       -15       -16       -17       -17       -18       -19       -20       -22        -80       -176
Drawback Procedures.........................................         0         0        -2        -3        -3        -3        -3        -3        -3        -3        -4        -11        -27
    Total Changes...........................................        -3       -14       -17       -18       -19       -20       -20       -21       -22       -23       -26        -91       -203
 
                                                    NET INCREASE OR DECREASE (-) IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
 
Impact on Deficit...........................................         3        34        38        40        42        45        47        42        39        36      -167        202        199
 
                                                                          CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Automated Commercial Environment:
    Authorization Level.....................................         0       154       154       154         0         0         0         0         0         0         0        461        461
    Estimated Outlays.......................................         0       108       154       154        46         0         0         0         0         0         0        461        461
CBP Trade Programs and Reports:
    Estimated Authorization Level...........................         0        48        88        90        93        96        98       101       104       107       110        415        936
    Estimated Outlays.......................................         0        43        84        90        93        95        98       101       104       107       110        405        925
Investigation of Evasion of Trade Remedy Laws:
    Estimated Authorization Level...........................         0         9        18        19        19        19        20        20        21        21        22         84        188
    Estimated Outlays.......................................         0         7        15        18        19        19        20        20        21        21        22         78        180
    Total Changes
        Estimated Authorization Level.......................         0       210       260       263       112       115       118       121       125       128       132        960      1,585
        Estimated Outlays...................................         0       157       253       261       158       114       118       121       124       128       131        944      1,566
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: This estimate assumes H.R. 1907 is enacted by July 1, 2015; * = between zero and $500,000. For direct spending, negative numbers indicate a decrease in outlays; for revenues, negative
  numbers indicate a reduction in revenues. Components may not sum to totals because of rounding.
CBP = Customs and Border Protection.
a On April 23, 2015, the House Committee on Ways and Means approved a package of three trade bills: H.R. 1891, H.R. 1907, and H.R. 1892. For the purposes of this estimate, CBO assumes that
  H.R. 1891 will be enacted before H.R. 1907. (H.R. 1891 would extend the authority to charge merchandise processing fees from September 30, 2024, through July 7, 2025.)

    Basis of estimate: For this estimate, CBO assumes that H.R. 
1907 will be enacted by July 1, 2015.

Direct spending

    CBO estimates that enacting H.R. 1907 would increase direct 
spending by $111 million over the 2015-2020 period and would 
decrease spending by $4 million over the 2015-2025 period.
    Customs User Fees. Under current law, the authority to 
charge merchandise processing fees collected by CBP will expire 
after September 30, 2024. H.R. 1907 would permit those fees to 
be collected during the period beginning July 8, 2025, and 
ending July 28, 2025. The bill also would raise the rate of the 
merchandise processing fee from 0.21 percent to 0.3464 percent 
of the value of goods entering the U.S. for the period 
beginning July 1, 2025, and ending July 14, 2025. CBO estimates 
those actions would increase offsetting receipts (certain 
collections that are treated as reductions in direct spending) 
by $204 million in fiscal year 2025. To project collections of 
merchandise processing fees, CBO assumes that the fees 
collected in future years will grow at the same rate seen in 
recent years--about 5 percent. In 2014 collections from the 
merchandise processing fee totaled $2.3 billion. By 2024 CBO 
estimates those collections will total about $2.7 billion under 
current law. CBO expects that the proposed increase in the fee 
rate would have a very minor effect on the value of goods 
entering the U.S.
    Payment of Interest on Certain Distributions Under the 
Continued Dumping and Subsidy Offset Act. H.R. 1907 would 
increase the amount available for distribution to eligible 
parties under CDSOA. Under current law, CBP distributes 
antidumping and countervailing (ADCV) duties that were assessed 
on or after October 1, 2000, on goods that entered the United 
States before October 1, 2007, to domestic parties that meet 
the program's eligibility requirements. Based on information 
from CBP, CBO estimates that enacting this provision would 
increase direct spending by $200 million over the 2015-2025 
period.
    H.R. 1907 would direct CBP to include in the amount 
distributed to eligible parties interest earned on certain 
delinquent accounts. Specifically, in cases where CBP pursues 
payment of ADCV duties through litigation with sureties that 
provided customs bonds to guarantee payment, court-ordered 
interest received above the bond amount would be added to the 
distribution. This additional amount would apply only to cases 
where distributions are made on or after enactment of H.R. 
1907, from court-ordered payments received from sureties after 
October 1, 2014.
    Under current law, upon receipt of a court-ordered 
settlement in CDSOA cases, CBP first deposits into the Treasury 
any interest that accrued during the period of delinquency and 
litigation; any amounts that remain after that are available 
for distribution to eligible parties. Under H.R. 1907, those 
interest amounts currently deposited in the Treasury would 
instead be spent.
    The CBP has 30 cases currently in litigation for delinquent 
ADCV duties due from sureties, dating as far back as 2009; 
based on the agency's experience with similar litigation, we 
expect it will take about six years for all of those cases to 
conclude. Further, we expect that CBP will bring an additional 
15 cases against sureties for payment of delinquent duties over 
the next five years and that CBP will receive payment for those 
additional cases by the end of 2025.
    Based on the average amount of delinquent ADCV duties and 
the average amount of bond coverage associated with those 30 
cases, CBO estimates that CBP will collect about $250 million 
from sureties over the 2015-2025 period from court-ordered 
awards. Further, based on the length of time that typically 
elapses between the point when duties become delinquent until 
completion of the judicial proceedings, we estimate that about 
80 percent of that amount, $200 million, will represent accrued 
interest that will be deposited into the Treasury. By making 
interest collections payable to entities that are eligible to 
receive distributions, CBO estimates that enacting H.R 1907 
would increase direct spending by that amount.

Revenues

    CBO estimates that enacting H.R. 1907 would decrease 
revenues by $91 million over the 2015-2020 period and by $203 
million over the 2015-2025 period.
    Change in De Minimis Value. Under current law, importers 
are not required to pay duties on shipments with a total value 
of $200 or less. H.R. 1907 would increase that de minimis value 
to $800. According to the U.S. Customs and Border Patrol, in 
recent years duties collected on goods where each shipment was 
valued between $200 and $800, averaged $17 million a year. 
Considering that history and including anticipated growth in 
the value of imported goods, CBO estimates that raising the de 
minimis level to $800 would result in a revenue loss of $176 
million over the 2015-2025 period, net of income and payroll 
tax offsets.
    Drawback Procedures. When goods imported into the country 
are later exported or destroyed, the import duties originally 
paid for those goods may be refunded. In addition, the 
exporting or destroying of substitute goods--goods that are 
comparable to such imports--may also qualify for such refunds. 
H.R. 1907 would modify the claims process for such refunds--
which are known as ``drawbacks''--with the goal of simplifying 
the process. The most notable changes to the claims process 
include the following:
           Requiring the use of existing category codes 
        to identify which goods may qualify as substitutes for 
        the purposes of drawbacks,
           Standardizing and, in some cases, extending 
        the period during which drawback claims may be filed, 
        and
           Eliminating the requirement for paper 
        documentation in certain drawback claims.
    In 2014, roughly $470 million in duties on imported 
merchandise was refunded in cases where substitutable goods 
were later exported. Based on information from CBP, and 
allowing for an initial period to write new regulations, CBO 
estimates that enacting H.R. 1907 would increase refunds, and 
therefore decrease revenues, by $27 million over the 2015-2025 
period.
    Penalties. H.R. 1907 would require customs brokers to 
maintain records of the identity of their clients. It would 
also require non-resident importers to designate an agent in 
the United States with the power of attorney. The bill would 
prescribe monetary penalties for violations of those 
requirements. Under current law, CBP has broad authority to 
regulate the activities of customs brokers and importers, as 
well as assess monetary penalties for statutory or regulatory 
violations. Based on information from CBP, CBO expects that any 
additional monetary penalties resulting from enforcement of the 
new requirements would be insignificant. Similarly, CBO 
estimates that any change in customs duties that could result 
from those requirements would also be insignificant.

Spending subject to appropriation

    For this estimate, CBO assumes that the necessary 
appropriations will be provided each year and that spending 
will follow historical patterns for these programs. Under those 
assumptions we estimate that implementing H.R. 1907 would cost 
$944 million over the 2015-2020 period.
    Automated Commercial Environment. H.R. 1907 would authorize 
the appropriation of $154 million annually over the 2016-2018 
period for the Automated Commercial Environment (ACE), a trade 
management system operated by CBP. For fiscal year 2014, $141 
million was appropriated for ACE. CBO estimates that 
implementing this provision would cost $461 million over the 
2016-2019 period.
    CBP Trade Programs and Reports. H.R. 1907 would direct CBP 
to improve and expand several trade enforcement and 
facilitation programs, including validation of new importers 
and protection of copyrights and intellectual property rights. 
The bill also would require about a dozen new reports to the 
Congress relating to trade issues, mostly from CBP and the 
Government Accountability Office. Based on preliminary 
information from Customs and the costs of similar activities, 
we estimate that the additional programs and reports would cost 
$405 million over the 2015-2020 period, mostly to hire new CBP 
employees.
    Investigation of Evasion of Trade Remedy Laws. Title IV 
would require the ITA to develop a system to investigate 
allegations of antidumping and countervailing duty evasion. 
Those investigations would be opened based on reports that are 
supported by reasonable evidence, and must be completed within 
300 days of initiation. Based on information from the ITA, CBO 
expects that the agency would establish a new unit to carry out 
the investigations, which are separate from current efforts to 
administer antidumping and countervailing duty laws.
    CBO assumes that the agency would ultimately add 82 staff 
positions, at an average cost of about $240,000 per year 
including salaries, benefits, and overhead, to carry out the 
new requirements. CBO estimates that implementing these 
provisions of H.R. 1907 would cost $78 million over the 2015-
2020 period.
    Pay-as-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in the 
following table.

                               CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 1907, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON APRIL 23, 2015
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             By fiscal year, in millions of dollars--
                                                                --------------------------------------------------------------------------------------------------------------------------------
                                                                  2015    2016      2017      2018      2019      2020      2021      2022      2023      2024      2025    2015-2020  2015-2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           NET INCREASE OR DECREASE (-) IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact.................................      3        34        38        40        42        45        47        42        39        36      -167        202        199
Memorandum:
    Changes in Outlays.........................................      0        20        21        22        23        25        27        21        17        13      -193        111         -4
    Changes in Revenues........................................     -3       -14       -17       -18       -19       -20       -20       -21       -22       -23       -26        -91       -203
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated impact on state, local, and tribal governments: 
H.R. 1907 contains no intergovernmental mandates as defined in 
UMRA, and would impose no costs on state, local, or tribal 
governments.
    Estimated impact on the private sector: H.R. 1907 would 
impose private-sector mandates, as defined in UMRA, on entities 
required to pay merchandise processing fees. The bill would 
extend those fees for the period July 8, 2025, through July 28, 
2025, and raise the fee rate beginning July 1, 2025, and ending 
July 14, 2025. CBO estimates that the incremental cost of the 
fees would amount to $204 million in 2025. Thus, the aggregate 
cost of the mandates would exceed the annual threshold 
established in UMRA for private-sector mandates in that year 
($154 million in 2015, adjusted annually for inflation).
    Estimate prepared by: Federal costs: Mark Grabowicz and 
Susan Willie; Federal revenues: Ann Futrell and Nate Frentz; 
Impact on state, local, and tribal governments: Jon Sperl; 
Impact on the private sector: Paige Piper/Bach.
    Estimate approved by: Theresa Gullo, 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 advises that it was as a result of the 
Committee's review of the provisions of H.R. 1907 that the 
Committee concluded that it is appropriate to report the bill, 
as amended, favorably to the House of Representatives with the 
recommendation that the bill do pass.

       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 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act (UMRA) of 1995 (Pub. L. No. 
104-4).
    The Committee states that, according to the Congressional 
Budget Office (CBO), the provision related to Customs user fees 
would impose a private sector mandate, as defined by UMRA, but 
would not impose intergovernmental mandates or costs on state, 
local, or tribal governments.

  D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                               Benefits 

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   E. Duplication of Federal Programs

    In compliance with Sec. 3(g)(2) of H. Res. 5 (114th 
Congress), the Committee states that no provision of the bill 
establishes or reauthorizes: (1) a program of the Federal 
Government known to be duplicative of another Federal program; 
(2) a program included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139; or (3) a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                 F. Disclosure of Directed Rule Makings

    In compliance with Sec. 3(i) of H. Res. 5 (114th Congress), 
the following statement is made concerning directed rule 
makings: The Committee estimates that the bill requires no 
directed rule makings within the meaning of such section.

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


  A. Text of Existing Law Amended or Repealed by the Bill, as Reported

    In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT OF 1985

           *       *       *       *       *       *       *



SEC. 13031. FEES FOR CERTAIN CUSTOMS SERVICES.

  (a) Schedule of Fees.--In addition to any other fee 
authorized by law, the Secretary of the Treasury shall charge 
and collect the following fees for the provision of customs 
services in connection with the following:
          (1) For the arrival of a commercial vessel of 100 net 
        tons or more, $397.
          (2) For the arrival of a commercial truck, $5.
          (3) For the arrival of each railroad car carrying 
        passengers or commercial freight, $7.50.
          (4) For all arrivals made during a calendar year by a 
        private vessel or private aircraft, $25.
          (5)(A) Subject to subparagraph (B), for the arrival 
        of each passenger aboard a commercial vessel or 
        commercial aircraft from a place outside the United 
        States (other than a place referred to in subsection 
        (b)(1)(A)(i) of this section), $5.
          (B) For the arrival of each passenger aboard a 
        commercial vessel from a place referred to in 
        subsection (b)(1)(A)(i) of this section, $1.75.
          (6) For each item of dutiable mail for which a 
        document is prepared by a customs officer, $5.
          (7) For each customs broker permit held by an 
        individual, partnership, association, or corporate 
        customs broker, $125 per year.
          (8) For the arrival of a barge or other bulk carrier 
        from Canada or Mexico, $100.
          (9)(A) For the processing of merchandise that is 
        formally entered or released during any fiscal year, a 
        fee in an amount equal to 0.21 percent ad valorem, 
        unless adjusted under subparagraph (B).
          (B)(i) The Secretary of the Treasury may adjust the 
        ad valorem rate specified in subparagraph (A) to an ad 
        valorem rate (but not to a rate of more than 0.21 
        percent nor less than 0.15 percent) and the amounts 
        specified in subsection (b)(8)(A)(i) (but not to more 
        than $485 nor less than $21) to rates and amounts which 
        would, if charged, offset the salaries and expenses 
        that will likely be incurred by the Customs Service in 
        the processing of such entries and releases during the 
        fiscal year in which such costs are incurred.
          (ii) In determining the amount of any adjustment 
        under clause (i), the Secretary of the Treasury shall 
        take into account whether there is a surplus or deficit 
        in the fund established under subsection (f) with 
        respect to the provision of customs services for the 
        processing of formal entries and releases of 
        merchandise.
          (iii) An adjustment may not be made under clause (i) 
        with respect to the fee charged during any fiscal year 
        unless the Secretary of the Treasury--
                  (I) not later than 45 days after the date of 
                the enactment of the Act providing full-year 
                appropriations for the Customs Service for that 
                fiscal year, publishes in the Federal Register 
                a notice of intent to adjust the fee under this 
                paragraph and the amount of such adjustment;
                  (II) provides a period of not less than 30 
                days following publication of the notice 
                described in subclause (I) for public comment 
                and consultation with the Committee on Finance 
                of the Senate and the Committee on Ways and 
                Means of the House of Representatives regarding 
                the proposed adjustment and the methodology 
                used to determine such adjustment;
                  (III) upon the expiration of the period 
                provided under subclause (II), notifies such 
                committees in writing regarding the final 
                determination to adjust the fee, the amount of 
                such adjustment, and the methodology used to 
                determine such adjustment; and
                  (IV) upon the expiration of the 15-day period 
                following the written notification described in 
                subclause (III), submits for publication in the 
                Federal Register notice of the final 
                determination regarding the adjustment of the 
                fee.
          (iv) The 15-day period referred to in clause 
        (iii)(IV) shall be computed by excluding--
                  (I) the days on which either House is not in 
                session because of an adjournment of more than 
                3 days to a day certain or an adjournment of 
                the Congress sine die; and
                  (II) any Saturday and Sunday, not excluded 
                under subclause (I), when either House is not 
                in session.
          (v) An adjustment made under this subparagraph shall 
        become effective with respect to formal entries and 
        releases made on or after the 15th calendar day after 
        the date of publication of the notice described in 
        clause (iii)(IV) and shall remain in effect until 
        adjusted under this subparagraph.
          (C) Any fee charged under this paragraph, whether or 
        not adjusted under subparagraph (B), is subject to the 
        limitations in subsection (b)(8)(A).
          (10) For the processing of merchandise that is 
        informally entered or released, other than at--
                  (A) a centralized hub facility,
                  (B) an express consignment carrier facility, 
                or
                  (C) a small airport or other facility to 
                which section 236 of the Trade and Tariff Act 
                of 1984 applies, if more than 25,000 informal 
                entries were cleared through such airport or 
                facility during the fiscal year preceding such 
                entry or release, a fee of--
                          (i) $2 if the entry or release is 
                        automated and not prepared by customs 
                        personnel;
                          (ii) $6 if the entry or release is 
                        manual and not prepared by customs 
                        personnel; or
                          (iii) $9 if the entry or release, 
                        whether automated or manual, is 
                        prepared by customs personnel.
                For provisions relating to the informal entry 
                or release of merchandise at facilities 
                referred to in subparagraphs (A), (B), and (C), 
                see subsection (b)(9).
  (b) Limitations on Fees.--(1)(A) Except as provided in 
subsection (a)(5)(B) of this section, no fee may be charged 
under subsection (a) of this section for customs services 
provided in connection with--
          (i) the arrival of any passenger whose journey--
                  (I) originated in a territory or possession 
                of the United States; or
                  (II) originated in the United States and was 
                limited to territories and possessions of the 
                United States;
          (ii) the arrival of any railroad car the journey of 
        which originates and terminates in the same country, 
        but only if no passengers board or disembark from the 
        train and no cargo is loaded or unloaded from such car 
        while the car is within any country other than the 
        country in which such car originates and terminates;
          (iii) the arrival of a ferry, except for a ferry 
        whose operations begin on or after August 1, 1999, and 
        that operates south of 27 degrees latitude and east of 
        89 degrees longitude; or
          (iv) the arrival of any passenger on board a 
        commercial vessel traveling only between ports which 
        are within the customs territory of the United States.
  (B) The exemption provided for in subparagraph (A) shall not 
apply in the case of the arrival of any passenger on board a 
commercial vessel whose journey originates and terminates at 
the same place in the United States if there are no intervening 
stops.
  (C) The exemption provided for in subparagraph (A)(i) shall 
not apply to fiscal years 1994, 1995, 1996, and 1997.
  (2) No fee may be charged under subsection (a)(2) for the 
arrival of a commercial truck during any calendar year after a 
total of $100 in fees has been paid to the Secretary of the 
Treasury for the provision of customs services for all arrivals 
of such commercial truck during such calendar year.
  (3) No fee may be charged under subsection (a)(3) for the 
arrival of a railroad car whether passenger or freight during 
any calendar year after a total of $100 in fees has been paid 
to the Secretary of the Treasury for the provision of customs 
services for all arrivals of such passenger or freight rail car 
during such calendar year.
  (4)(A) No fee may be charged under subsection (a)(5) with 
respect to the arrival of any passenger--
          (i) who is in transit to a destination outside the 
        customs territory of the United States, and
          (ii) for whom customs inspectional services are not 
        provided.
  (B) In the case of a commercial vessel making a single voyage 
involving 2 or more United States ports with respect to which 
the passengers would otherwise be charged a fee pursuant to 
subsection (a)(5), such fee shall be charged only 1 time for 
each passenger.
  (5) No fee may be charged under subsection (a)(1) for the 
arrival of--
          (A) a vessel during a calendar year after a total of 
        $5,955 in fees charged under paragraph (1) or (8) of 
        subsection (a) has been paid to the Secretary of the 
        Treasury for the provision of customs services for all 
        arrivals of such vessel during such calendar year,
          (B) any vessel which, at the time of the arrival, is 
        being used solely as a tugboat, or
          (C) any barge or other bulk carrier from Canada or 
        Mexico.
  (6) No fee may be charged under subsection (a)(8) for the 
arrival of a barge or other bulk carrier during a calendar year 
after a total of $1,500 in fees charged under paragraph (1) or 
(8) of subsection (a) has been paid to the Secretary of the 
Treasury for the provision of customs services for all arrivals 
of such barge or other bulk carrier during such calendar year.
  (7) No fee may be charged under paragraph (2), (3), or (4) of 
subsection (a) for the arrival of any--
          (A) commercial truck,
          (B) railroad car, or
          (C) private vessel,
that is being transported, at the time of the arrival, by any 
vessel that is not a ferry.
  (8)(A)(i) Subject to clause (ii), the fee charged under 
subsection (a)(9) for the formal entry or release of 
merchandise may not exceed $485 or be less than $25, unless 
adjusted pursuant to subsection (a)(9)(B).
  (ii) A surcharge of $3 shall be added to the fee determined 
after application of clause (i) for any manual entry or release 
of merchandise.
  (B) No fee may be charged under subsection (a) (9) or (10) 
for the processing of any article that is--
          (i) provided for under any item in chapter 98 of the 
        Harmonized Tariff Schedule of the United States, except 
        subheading 9802.00.60 or 9802.00.80,
          (ii) a product of an insular possession of the United 
        States, or
          (iii) a product of any country listed in subdivision 
        (c)(ii)(B) or (c)(v) of general note 3 to such 
        Schedule.
  (C) For purposes of applying subsection (a) (9) or (10)--
          (i) expenses incurred by the Secretary of the 
        Treasury in the processing of merchandise do not 
        include costs incurred in--
                  (I) air passenger processing,
                  (II) export control, or
                  (III) international affairs, and
          (ii) any reference to a manual formal or informal 
        entry or release includes any entry or release filed by 
        a broker or importer that requires the inputting of 
        cargo selectivity data into the Automated Commercial 
        System by customs personnel, except when--
                  (I) the broker or importer is certified as an 
                ABI cargo release filer under the Automated 
                Commercial System at any port within the United 
                States, or
                  (II) the entry or release is filed at ports 
                prior to the full implementation of the cargo 
                selectivity data system by the Customs Service 
                at such ports.
  (D) The fee charged under subsection (a)(9) or (10) with 
respect to the processing of merchandise shall--
          (i) be paid by the importer of record of the 
        merchandise;
          (ii) except as otherwise provided in this paragraph, 
        be based on the value of the merchandise as determined 
        under section 402 of the Tariff Act of 1930;
          (iii) in the case of merchandise classified under 
        subheading 9802.00.60 of the Harmonized Tariff Schedule 
        of the United States, be applied to the value of the 
        foreign repairs or alterations to the merchandise;
          (iv) in the case of merchandise classified under 
        heading 9802.00.80 of such Schedule, be applied to the 
        full value of the merchandise, less the cost or value 
        of the component United States products;
          (v) in the case of agricultural products of the 
        United States that are processed and packed in a 
        foreign trade zone, be applied only to the value of 
        material used to make the container for such 
        merchandise, if such merchandise is subject to entry 
        and the container is of a kind normally used for 
        packing such merchandise; and
          (vi) in the case of merchandise entered from a 
        foreign trade zone (other than merchandise to which 
        clause (v) applies), be applied only to the value of 
        the privileged or nonprivileged foreign status 
        merchandise under section 3 of the Act of June 18, 1934 
        (commonly known as the Foreign Trade Zones Act, 19 
        U.S.C. 81c).
With respect to merchandise that is classified under subheading 
9802.00.60 or heading 9802.00.80 of such Schedule and is duty-
free, the Secretary may collect the fee charged on the 
processing of the merchandise under subsection (a) (9) or (10) 
on the basis of aggregate data derived from financial and 
manufacturing reports used by the importer in the normal course 
of business, rather than on the basis of entry-by-entry 
accounting.
  (E) For purposes of subsection (a) (9) and (10), merchandise 
is entered or released, as the case may be, if the merchandise 
is--
          (i) permitted or released under section 448(b) of the 
        Tariff Act of 1930,
          (ii) entered or released from customs custody under 
        section 484(a)(1)(A) of the Tariff Act of 1930, or
          (iii) withdrawn from warehouse for consumption.
  (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 $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) In the case of a small airport or other 
        facility--
                  (I) the reimbursement which such facility is 
                required to make during the fiscal year under 
                section 9701 of title 31, United States Code or 
                section 236 of the Trade and Tariff Act of 
                1984; and
                  (II) an annual payment by the facility to the 
                Secretary of the Treasury, which is in lieu of 
                the payment of fees under subsection (a)(10) 
                for such fiscal year, in an amount equal to the 
                reimbursement under subclause (I).
          (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) (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 be paid to the Secretary of 
                the Treasury, which is in lieu of the payment 
                of fees under subsection (a)(10) of this 
                section.
  (C) For purposes of this paragraph:
          (i) The terms ``centralized hub facility'' and 
        ``express consignment carrier facility'' have the 
        respective meanings that are applied to such terms in 
        part 128 of chapter I of title 19, Code of Federal 
        Regulations. Nothing in this paragraph shall be 
        construed as prohibiting the Secretary of the Treasury 
        from processing merchandise that is informally entered 
        or released at any centralized hub facility or express 
        consignment carrier facility during the normal 
        operating hours of the Customs Service, subject to 
        reimbursement and payment under subparagraph (A).
          (ii) The term ``small airport or other facility'' 
        means any airport or facility to which section 236 of 
        the Trade and Tariff Act of 1984 applies, if more than 
        25,000 informal entries were cleared through such 
        airport or facility during the preceding fiscal year.
  (10)(A) The fee charged under subsection (a) (9) or (10) with 
respect to goods of Canadian origin (as determined under 
section 202 of the United States-Canada Free-Trade Agreement 
Implementation Act of 1988) when the United States-Canada Free-
Trade Agreement is in force shall be in accordance with article 
403 of that Agreement.
  (B) For goods qualifying under the rules of origin set out in 
section 202 of the North American Free Trade Agreement 
Implementation Act, the fee under subsection (a) (9) or (10)--
          (i) may not be charged with respect to goods that 
        qualify to be marked as goods of Canada pursuant to 
        Annex 311 of the North American Free Trade Agreement, 
        for such time as Canada is a NAFTA country, as defined 
        in section 2(4) of such Implementation Act; and
          (ii) may not be increased after December 31, 1993, 
        and may not be charged after June 29, 1999, with 
        respect to goods that qualify to be marked as goods of 
        Mexico pursuant to such Annex 311, for such time as 
        Mexico is a NAFTA country.
Any service for which an exemption from such fee is provided by 
reason of this paragraph may not be funded with money contained 
in the Customs User Fee Account.
  (11) No fee may be charged under subsection (a) (9) or (10) 
with respect to products of Israel if an exemption with respect 
to the fee is implemented under section 112 of the Customs and 
Trade Act of 1990.
  (12) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 202 of the United States-Chile Free Trade Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (13) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 202 of the United States-Singapore Free Trade Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (14) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 203 of the United States-Australia Free Trade Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (15) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 203 of the Dominican Republic-Central America-United 
States Free Trade Agreement Implementation Act. Any service for 
which an exemption from such fee is provided by reason of this 
paragraph may not be funded with money contained in the Customs 
User Fee Account.
  (16) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 202 of the United States-Bahrain Free Trade Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (17) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 202 of the United States-Oman Free Trade Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (18) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 203 of the United States-Peru Trade Promotion Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (19) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 202 of the United States-Korea Free Trade Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (20) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 203 of the United States-Colombia Trade Promotion 
Agreement Implementation Act. Any service for which an 
exemption from such fee is provided by reason of this paragraph 
may not be funded with money contained in the Customs User Fee 
Account.
  (21) No fee may be charged under subsection (a)(9) or (10) 
with respect to goods that qualify as originating goods under 
section 203 of the United States-Panama Trade Promotion 
Agreement Implementation Act. Any service for which an 
exemption from such fee is provided by reason of this paragraph 
may not be funded with money contained in the Customs User Fee 
Account.
  (c) Definitions.--For purposes of this section--
          (1) The term ``ferry'' means any vessel which is 
        being used--
                  (A) to provide transportation only between 
                places that are no more than 300 miles apart, 
                and
                  (B) to transport only--
                          (i) passengers, or
                          (ii) vehicles, or railroad cars, 
                        which are being used, or have been 
                        used, in transporting passengers or 
                        goods.
          (2) The term ``arrival'' means arrival at a port of 
        entry in the customs territory of the United States.
          (3) The term ``customs territory of the United 
        States'' has the meaning given to such term by general 
        note 2 of the Harmonized Tariff Schedule of the United 
        States.
          (4) The term ``customs broker permit'' means a permit 
        issued under section 641(c) of the Tariff Act of 1930 
        (19 U.S.C. 1641(c)).
          (5) The term ``barge or other bulk carrier'' means 
        any vessel which--
                  (A) is not self-propelled, or
                  (B) transports fungible goods that are not 
                packaged in any form.
  (d) Collection.--(1) Each person that issues a document or 
ticket to an individual for transportation by a commercial 
vessel or commercial aircraft into the customs territory of the 
United States shall--
          (A) collect from that individual the fee charged 
        under subsection (a)(5) at the time the document or 
        ticket is issued; and
          (B) separately identify on that document or ticket 
        the fee charged under subsection (a)(5) as a Federal 
        inspection fee.
  (2) If--
          (A) a document or ticket for transportation of a 
        passenger into the customs territory of the United 
        States is issued in a foreign country; and
          (B) the fee charged under subsection (a)(5) is not 
        collected at the time such document or ticket is 
        issued;
the person providing transportation to such passenger shall 
collect such fee at the time such passenger departs from the 
customs territory of the United States and shall provide such 
passenger a receipt for the payment of such fee.
  (3) The person who collects fees under paragraph (1) or (2) 
shall remit those fees to the Secretary of the Treasury at any 
time before the date that is 31 days after the close of the 
calendar quarter in which the fees are collected.
  (4)(A) Notice of the date on which payment of the fee imposed 
by subsection (a)(7) is due shall be published by the Secretary 
of the Treasury in the Federal Register by no later than the 
date that is 60 days before such due date.
  (B) A customs broker permit may be revoked or suspended for 
nonpayment of the fee imposed by subsection (a)(7) only if 
notice of the date on which payment of such fee is due was 
published in the Federal Register at least 60 days before such 
due date.
  (C) The customs broker's license issued under section 641(b) 
of the Tariff Act of 1930 (19 U.S.C. 1641(b)) may not be 
revoked or suspended merely by reason of nonpayment of the fee 
imposed under subsection (a)(7).
  (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)), 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.
  (2)(A) This subsection shall not apply with respect to any 
airport to which section 236 of the Trade and Tariff Act of 
1984 (19 U.S.C. 58b) applies.
  (B) Subparagraph (C) of paragraph (6) shall not apply with 
respect to any foreign trade zone or subzone that is located 
at, or in the vicinity of, an airport to which section 236 of 
the Trade and Tariff Act of 1984 applies.
  (3) Notwithstanding section 451 of the Tariff Act of 1930 (19 
U.S.C. 1451) or any other provision of law--
          (A) 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 when needed at places located outside 
        the customs territory of the United States at which a 
        customs officer is stationed for the purpose of 
        providing such customs services, and
          (B) other than the fees imposed under subsection (a), 
        the airlines and airline passengers shall not be 
        required to reimburse the Secretary of the Treasury for 
        the costs of providing overtime customs inspectional 
        services at such places.
  (4) Notwithstanding any other provision of law, all customs 
services (including, but not limited to, normal and overtime 
clearance and preclearance services) shall be adequately 
provided, when requested, for--
          (A) the clearance of any commercial vessel, vehicle, 
        or aircraft or its passengers, crew, stores, material, 
        or cargo arriving, departing, or transiting the United 
        States;
          (B) the preclearance at any customs facility outside 
        the United States of any commercial vessel, vehicle or 
        aircraft or its passengers, crew, stores, material, or 
        cargo; and
          (C) the inspection or release of commercial cargo or 
        other commercial shipments being entered into, or 
        withdrawn from, the customs territory of the United 
        States.
  (5) For purposes of this subsection, customs services shall 
be treated as being ``adequately provided'' if such of those 
services that are necessary to meet the needs of parties 
subject to customs inspection are provided in a timely manner 
taking into account factors such as--
          (A) the unavoidability of weather, mechanical, and 
        other delays;
          (B) the necessity for prompt and efficient passenger 
        and baggage clearance;
          (C) the perishability of cargo;
          (D) the desirability or unavoidability of late night 
        and early morning arrivals from various time zones;
          (E) the availability (in accordance with regulations 
        prescribed under subsection (g)(2)) of customs 
        personnel and resources; and
          (F) the need for specific enforcement checks.
  (6) Notwithstanding any other provision of law except 
paragraph (2), during any period when fees are authorized under 
subsection (a), no charges, other than such fees, may be 
collected--
          (A) for any--
                  (i) cargo inspection, clearance, or other 
                customs activity, expense, or service performed 
                (regardless whether performed outside of normal 
                business hours on an overtime basis), or
                  (ii) customs personnel provided,
        in connection with the arrival or departure of any 
        commercial vessel, vehicle, or aircraft, or its 
        passengers, crew, stores, material, or cargo, in the 
        United States;
          (B) for any preclearance or other customs activity, 
        expense, or service performed, and any customs 
        personnel provided, outside the United States in 
        connection with the departure of any commercial vessel, 
        vehicle, or aircraft, or its passengers, crew, stores, 
        material, or cargo, for the United States; or
          (C) in connection with--
                  (i) the activation or operation (including 
                Customs Service supervision) of any foreign 
                trade zone or subzone established under the Act 
                of June 18, 1934 (commonly known as the Foreign 
                Trade Zones Act, 19 U.S.C. 81a et seq.), or
                  (ii) the designation or operation (including 
                Customs Service supervision) of any bonded 
                warehouse under section 555 of the Tariff Act 
                of 1930 (19 U.S.C. 1555).
  (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) the portion of such fees that is required under 
        paragraph (3) for the direct reimbursement of 
        appropriations, and
          (B) amounts deposited into the Customs Commercial and 
        Homeland Security Automation Account under paragraph 
        (4).
  (2) Except as otherwise provided in this subsection, all 
funds in the Customs User Fee Account shall be available, to 
the extent provided for in appropriations Acts, to pay the 
costs (other than costs for which direct reimbursement under 
paragraph (3) is required) incurred by the United States 
Customs Service in conducting customs revenue functions as 
defined in section 415 of the Homeland Security Act of 2002 
(other than functions performed by the Office of International 
Affairs referred to in section 415(8) of that Act), and for 
automation (including the Automation Commercial Environment 
computer system), and for no other purpose. To the extent that 
funds in the Customs User Fee Account are insufficient to pay 
the costs of such customs revenue functions, customs duties in 
an amount equal to the amount of such insufficiency shall be 
available, to the extent provided for in appropriations Acts, 
to pay the costs of such customs revenue functions in the 
amount of such insufficiency, and shall be available for no 
other purpose. The provisions of the first and second sentences 
of this paragraph specifying the purposes for which amounts in 
the Customs User Fee Account may be made available shall not be 
superseded except by a provision of law which specifically 
modifies or supersedes such provisions. So long as there is a 
surplus of funds in the Customs User Fee Account, the Secretary 
of the Treasury may not reduce personnel staffing levels for 
providing commercial clearance and preclearance services.
  (3)(A) The Secretary of the Treasury, in accordance with 
section 524 of the Tariff Act of 1930 and subject to 
subparagraph (B), shall directly reimburse, from the fees 
collected under subsection (a) (other than the fees under 
subsection (a) (9) and (10) and the excess fees determined by 
the Secretary under paragraph (4)), each appropriation for the 
amount paid out of that appropriation for the costs incurred by 
the Secretary--
          (i) in--
                  (I) paying overtime compensation under 
                section 5(a) of the Act of February 13, 1911,
                  (II) paying premium pay under section 5(b) of 
                the Act of February 13, 1911, but the amount 
                for which reimbursement may be made under this 
                subclause may not, for any fiscal year, exceed 
                the difference between the total cost of all 
                the premium pay for such year calculated under 
                section 5(b) and the cost of the night and 
                holiday premium pay that the Customs Service 
                would have incurred for the same inspectional 
                work on the day before the effective date of 
                section 13813 of the Omnibus Budget 
                Reconciliation Act of 1993,
                  (III) paying agency contributions to the 
                Civil Service Retirement and Disability Fund to 
                match deductions from the overtime compensation 
                paid under subclause (I),
                  (IV) providing all preclearance services for 
                which the recipients of such services are not 
                required to reimburse the Secretary of the 
                Treasury, and
                  (V) paying foreign language proficiency 
                awards under section 13812(b) of the Omnibus 
                Budget Reconciliation Act of 1993,
          (ii) to the extent funds remain available after 
        making reimbursements under clause (i), in providing 
        salaries for full-time and part-time inspectional 
        personnel and equipment that enhance customs services 
        for those persons or entities that are required to pay 
        fees under paragraphs (1) through (8) of subsection (a) 
        (distributed on a basis proportionate to the fees 
        collected under paragraphs (1) through (8) of 
        subsection (a), and
          (iii) to the extent funds remain available after 
        making reimbursements under clause (ii), in providing 
        salaries for up to 50 full-time equivalent inspectional 
        positions to provide preclearance services.
The transfer of funds required under subparagraph (C)(iii) has 
priority over reimbursements under this subparagraph to carry 
out subclauses (II), (III), (IV), and (V) of clause (i). Funds 
described in clause (ii) shall only be available to reimburse 
costs in excess of the highest amount appropriated for such 
costs during the period beginning with fiscal year 1990 and 
ending with the current fiscal year.
  (B) Reimbursement of appropriations under this paragraph--
          (i) shall be subject to apportionment or similar 
        administrative practices;
          (ii) shall be made at least quarterly; and
          (iii) to the extent necessary, may be made on the 
        basis of estimates made by the Secretary of the 
        Treasury and adjustments shall be made in subsequent 
        reimbursements to the extent that the estimates were in 
        excess of, or less than, the amounts required to be 
        reimbursed.
  (C)(i) For fiscal year 1991 and subsequent fiscal years, the 
amount required to reimburse costs described in subparagraph 
(A)(i) shall be projected from actual requirements, and only 
the excess of collections over such projected costs for such 
fiscal year shall be used as provided in subparagraph (A)(ii).
  (ii) The excess of collections over inspectional overtime and 
preclearance costs (under subparagraph (A)(i)) reimbursed for 
fiscal years 1989 and 1990 shall be available in fiscal year 
1991 and subsequent fiscal years for the purposes described in 
subparagraph (A)(ii), except that $30,000,000 of such excess 
shall remain without fiscal year limitation in a contingency 
fund and, in any fiscal year in which receipts are insufficient 
to cover the costs described in subparagraph (A) (i) and (ii), 
shall be used for--
          (I) the costs of providing the services described in 
        subparagraph (A)(i), and
          (II) after the costs described in subclause (I) are 
        paid, the costs of providing the personnel and 
        equipment described in subparagraph (A)(ii) at the 
        preceding fiscal year level.
  (iii) For each fiscal year, the Secretary of the Treasury 
shall calculate the difference between--
          (I) the estimated cost for overtime compensation that 
        would have been incurred during that fiscal year for 
        inspectional services if section 5 of the Act of 
        February 13, 1911 (19 U.S.C. 261 and 267), as in effect 
        before the enactment of section 13811 of the Omnibus 
        Budget Reconciliation Act of 1993, had governed such 
        costs, and
          (II) the actual cost for overtime compensation, 
        premium pay, and agency retirement contributions that 
        is incurred during that fiscal year in regard to 
        inspectional services under section 5 of the Act of 
        February 13, 1911, as amended by section 13811 of the 
        Omnibus Budget Reconciliation Act of 1993, and under 
        section 8331(3) of title 5, United States Code, as 
        amended by section 13812(a)(1) of such Act of 1993, 
        plus the actual cost that is incurred during that 
        fiscal year for foreign language proficiency awards 
        under section 13812(b) of such Act of 1993,
and shall transfer from the Customs User Fee Account to the 
General Fund of the Treasury an amount equal to the difference 
calculated under this clause, or $18,000,000, whichever amount 
is less. Transfers shall be made under this clause at least 
quarterly and on the basis of estimates to the same extent as 
are reimbursements under subparagraph (B)(iii).
  (D) Nothing in this paragraph shall be construed to preclude 
the use of appropriated funds, from sources other than the fees 
collected under subsection (a), to pay the costs set forth in 
clauses (i), (ii), and (iii) of subparagraph (A).
  (4)(A) There is created within the general fund of the 
Treasury a separate account that shall be known as the 
``Customs Commercial and Homeland Security Automation 
Account''. In each of fiscal years 2003, 2004, and 2005 there 
shall be deposited into the Account from fees collected under 
subsection (a)(9)(A), $350,000,000.
  (B) There is authorized to be appropriated from the Account 
in fiscal years 2003 through 2005 such amounts as are available 
in that Account for the development, establishment, and 
implementation of the Automated Commercial Environment computer 
system for the processing of merchandise that is entered or 
released and for other purposes related to the functions of the 
Department of Homeland Security. Amounts appropriated pursuant 
to this subparagraph are authorized to remain available until 
expended.
  (C) In adjusting the fee imposed by subsection (a)(9)(A) for 
fiscal year 2006, the Secretary of the Treasury shall reduce 
the amount estimated to be collected in fiscal year 2006 by the 
amount by which total fees deposited to the Account during 
fiscal years 2003, 2004, and 2005 exceed total appropriations 
from that Account.
  (5) Of the amounts collected in fiscal year 1999 under 
paragraphs (9) and (10) of subsection (a), $50,000,000 shall be 
available to the Customs Service, subject to appropriations 
Acts, for automated commercial systems. Amounts made available 
under this paragraph shall remain available until expended.
  (g) Regulations and Enforcement.--(1) The Secretary of the 
Treasury may prescribe such rules and regulations as may be 
necessary to carry out the provisions of this section. 
Regulations issued by the Secretary of the Treasury under this 
subsection with respect to the collection of the fees charged 
under subsection (a)(5) and the remittance of such fees to the 
Treasury of the United States shall be consistent with the 
regulations issued by the Secretary of the Treasury for the 
collection and remittance of the taxes imposed by subchapter C 
of chapter 33 of the Internal Revenue Code of 1954, but only to 
the extent the regulations issued with respect to such taxes do 
not conflict with the provisions of this section.
  (2) Except to the extent otherwise provided in regulations, 
all administrative and enforcement provisions of customs laws 
and regulations, other than those laws and regulations relating 
to drawback, shall apply with respect to any fee prescribed 
under subsection (a) of this section, and with respect to 
persons liable therefor, as if such fee is a customs duty. For 
purposes of the preceding sentence, any penalty expressed in 
terms of a relationship to the amount of the duty shall be 
treated as not less than the amount which bears a similar 
relationship to the amount of the fee assessed. For purposes of 
determining the jurisdiction of any court of the United States 
or any agency of the United States, any fee prescribed under 
subsection (a) of this section shall be treated as if such fee 
is a customs duty.
  (h) Conforming Amendments.--(1) Subsection (i) of section 305 
of the Rail Passenger Service Act (45 U.S.C. 545(i)) is amended 
by striking out the last sentence thereof.
  (2) Subsection (e) of section 53 of the Airport and Airway 
Development Act of 1970 (49 U.S.C. 1741(e)) is repealed.
  (i) Effect on Other Authority.--Except with respect to 
customs services for which fees are imposed under subsection 
(a), nothing in this section shall be construed as affecting 
the authority of the Secretary of the Treasury to charge fees 
under section 214(b) of the Customs Procedural Reform and 
Simplification Act of 1978 (19 U.S.C. 58a).
  (j) Effective Dates.--(1) Except as otherwise provided in 
this subsection, the provisions of this section, and the 
amendments and repeals made by this section, shall apply with 
respect to customs services rendered after the date that is 90 
days after the date of enactment of this Act.
  (2) Fees may be charged under subsection (a)(5) only with 
respect to customs services rendered in regard to arriving 
passengers using transportation for which documents or tickets 
were issued after the date that is 90 days after such date of 
enactment.
  (3)(A) Fees may not be charged under paragraphs (9) and (10) 
of subsection (a) after September 30, 2024.
  (B)(i) Subject to clause (ii), Fees may not be charged under 
paragraphs (1) through (8) of subsection (a) after September 
30, 2024.
  (ii) In fiscal year 2006 and in each succeeding fiscal year 
for which fees under paragraphs (1) through (8) of subsection 
(a) are authorized--
          (I) the Secretary of the Treasury shall charge fees 
        under each such paragraph in amounts that are 
        reasonably related to the costs of providing customs 
        services in connection with the activity or item for 
        which the fee is charged under such paragraph, except 
        that in no case may the fee charged under any such 
        paragraph exceed by more than 10 percent the amount 
        otherwise prescribed by such paragraph;
          (II) the amount of fees collected under such 
        paragraphs may not exceed, in the aggregate, the 
        amounts paid in that fiscal year for the costs 
        described in subsection (f)(3)(A) incurred in providing 
        customs services in connection with the activity or 
        item for which the fees are charged under such 
        paragraphs;
          (III) a fee may not be collected under any such 
        paragraph except to the extent such fee will be 
        expended to pay the costs described in subsection 
        (f)(3)(A) incurred in providing customs services in 
        connection with the activity or item for which the fee 
        is charged under such paragraph; and
          (IV) any fee collected under any such paragraph shall 
        be available for expenditure only to pay the costs 
        described in subsection (f)(3)(A) incurred in providing 
        customs services in connection with the activity or 
        item for which the fee is charged under such paragraph.
  (k) Advisory Committee.--The Commissioner of Customs shall 
establish an advisory committee whose membership shall consist 
of representatives from the airline, cruise ship, and other 
transportation industries who may be subject to fees under 
subsection (a). The advisory committee shall not be subject to 
termination under section 14 of the Federal Advisory Committee 
Act. The advisory committee shall meet on a periodic basis and 
shall advise the Commissioner on issues related to the 
performance of the inspectional services of the United States 
Customs Service. Such advice shall include, but not be limited 
to, such issues as the time periods during which such services 
should be performed, the proper number and deployment of 
inspection officers, the level of fees, and the appropriateness 
of any proposed fee. The Commissioner shall give consideration 
to the views of the advisory committee in the exercise of his 
or her duties.

           *       *       *       *       *       *       *

                              ----------                              


         SECTION 311 OF THE CUSTOMS BORDER SECURITY ACT OF 2002


SEC. 311. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMERCIAL OPERATIONS, 
                    COMMERCIAL OPERATIONS, AND AIR AND MARINE 
                    INTERDICTION

  (a) Noncommercial Operations. --Section 301(b)(1) of the 
Customs Procedural Reform and Simplification Act of 1978 (19 
U.S.C. 2075(b)(1)) is amended--
          (1) by striking subparagraph (A), and inserting the 
        following:
                  ``(A) $1,365,456,000 for fiscal year 2003.''; 
                and
          (2) by striking subparagraph (B), and inserting the 
        following:
                  ``(B) $1,399,592,400 for fiscal year 2004.''.
  (b) Commercial Operations.--
          (1) In general. --Section 301(b)(2)(A) of the Customs 
        Procedural Reform and Simplification Act of 1978 (19 
        U.S.C. 2075(b)(2)(A)) is amended--
                  (A) by striking clause (i), and inserting the 
                following:
                  ``(i) $1,642,602,000 for fiscal year 2003.''; 
                and
                  (B) by striking clause (ii), and inserting 
                the following:
                  ``(ii) $1,683,667,050 for fiscal year 
                2004.''.
          (3) Reports.--Not later than 90 days after the date 
        of the enactment of this Act, and not later than the 
        end of each subsequent 90-day period, the Commissioner 
        of Customs shall prepare and submit to the Committee on 
        Ways and Means of the House of Representatives and the 
        Committee on Finance of the Senate a report 
        demonstrating that the development and establishment of 
        the Automated Commercial Environment computer system is 
        being carried out in a cost-effective manner and meets 
        the modernization requirements of title VI of the North 
        American Free Trade Agreement Implementation Act.
  (c) Air and Marine Interdiction. Section 301(b)(3) of the 
Customs Procedural Reform and Simplification Act of 1978 (19 
U.S.C. 2075(b)(3)) is amended--
          (1) by striking subparagraph (A), and inserting the 
        following:
                  ``(A) $170,829,000 for fiscal year 2003.''; 
                and
          (2) by striking subparagraph (B), and inserting the 
        following:
                  ``(B) $175,099,725 for fiscal year 2004.''.
  (d) Submission of Out-Year Budget Projections. Section 301(a) 
of the Customs Procedural Reform and Simplification Act of 1978 
(19 U.S.C. 2075(a)) is amended by adding at the end the 
following:
  ``(3) 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 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 as provided for in 
subsection (b).''.
                              ----------                              


TARIFF ACT OF 1930

           *       *       *       *       *       *       *



TITLE III--SPECIAL PROVISIONS

           *       *       *       *       *       *       *


Part II--United States Tariff Commission

           *       *       *       *       *       *       *



SEC. 307. CONVICT MADE GOODS--IMPORTATION PROHIBITED.

  All goods, wares, articles, and merchandise mined, produced 
or manufactured wholly or in part in any foreign country by 
convict labor or/and forced labor or/and indentured labor under 
penal sanctions shall not be entitled to entry at any of the 
ports of the United States, and the importation thereof is 
hereby prohibited, and the Secretary of the Treasury is 
authorized and directed to prescribe such regulations as may be 
necessary for the enforcement of this provision. The provisions 
of this section relating to goods, wares, articles, and 
merchandise mined, produced, or manufactured by forced labor 
or/and indentured labor, shall take effect on January 1, 1932; 
but in no case shall such provisions be applicable to goods, 
wares, articles, or merchandise so mined, produced, or 
manufactured which are not mined, produced, or manufactured in 
such quantities in the United States as to meet the consumptive 
demands of the United States.
    ``Forced labor,'' as herein used, shall mean all work or 
service which is exacted from any person under the menace of 
any penalty for its nonperformance and for which the worker 
does not offer himself voluntarily. For purposes of this 
section, the term ``forced labor or/and indentured labor'' 
includes forced or indentured child labor.

           *       *       *       *       *       *       *


SEC. 313. DRAWBACK AND REFUNDS.

  (a) Articles Made From Imported Merchandise.--Upon the 
exportation or destruction under customs supervision of 
articles manufactured or produced in the United States with the 
use of imported merchandise, provided that those articles have 
not been used prior to such exportation or destruction, the 
full amount of the duties paid upon the merchandise so used 
shall be refunded as drawback, less 1 per centum of such 
duties, except that such duties shall not be so refunded upon 
the exportation or destruction of flour or by-products produced 
from imported wheat. Where two or more products result from the 
manipulation of imported merchandise, the drawback shall be 
distributed to the several products in accordance with their 
relative values at the time of separation.
  (b) Substitution For Drawback Purposes.--If imported duty-
paid merchandise and any other merchandise (whether imported or 
domestic) of the same kind and quality are used in the 
manufacture or production of articles within a period not to 
exceed three years from the receipt of such imported 
merchandise by the manufacturer or producer of such articles, 
there shall be allowed upon the exportation, or destruction 
under customs supervision, of any such articles, 
notwithstanding the fact that none of the imported merchandise 
may actually have been used in the manufacture or production of 
the exported or destroyed articles, an amount of drawback equal 
to that which would have been allowable had the merchandise 
used therein been imported, but only if those articles have not 
been used prior to such exportation or destruction; but the 
total amount of drawback allowed upon the exportation or 
destruction under customs supervision of such articles, 
together with the total amount of drawback allowed in respect 
of such imported merchandise under any other provision of law, 
shall not exceed 99 per centum of the duty paid on such 
imported merchandise.
  (c) Merchandise Not Conforming to Sample or Specifications.--
          (1) Conditions for drawback.--Upon the exportation or 
        destruction under the supervision of the Customs 
        Service of articles or merchandise--
                  (A) upon which the duties have been paid,
                  (B) which has been entered or withdrawn for 
                consumption,
                  (C) which is--
                          (i) not conforming to sample or 
                        specifications, shipped without the 
                        consent of the consignee, or determined 
                        to be defective as of the time of 
                        importation, or
                          (ii) ultimately sold at retail by the 
                        importer, or the person who received 
                        the merchandise from the importer under 
                        a certificate of delivery, and for any 
                        reason returned to and accepted by the 
                        importer, or the person who received 
                        the merchandise from the importer under 
                        a certificate of delivery, and
                  (D) which, within 3 years after the date of 
                importation or withdrawal, as applicable, has 
                been exported or destroyed under the 
                supervision of the Customs Service,
         the full amount of the duties paid upon such 
        merchandise, less 1 percent, shall be refunded as 
        drawback.
          (2) Designation of import entries.--For purposes of 
        paragraph (1)(C)(ii), drawback may be claimed by 
        designating an entry of merchandise that was imported 
        within 1 year before the date of exportation or 
        destruction of the merchandise described in paragraph 
        (1) (A) and (B) under the supervision of the Customs 
        Service. The merchandise designated for drawback must 
        be identified in the import documentation with the same 
        eight-digit classification number and specific product 
        identifier (such as part number, SKU, or product code) 
        as the returned merchandise.
          (3) When drawback certificates not required.--For 
        purposes of this subsection, drawback certificates are 
        not required if the drawback claimant and the importer 
        are the same party, or if the drawback claimant is a 
        drawback successor to the importer as defined in 
        subsection (s)(3).
  (d) Flavoring Extracts and Medicinal, or Toilet 
Preparations.--Upon the exportation of flavoring extracts, 
medicinal or toilet preparations (including perfumery) 
manufactured or produced in the United States in part from 
domestic alcohol on which an internal-revenue tax has been 
paid, there shall be allowed a drawback equal in amount to the 
tax found to have been paid on the alcohol so used.
  Upon the exportation of bottled distilled spirits and wines 
manufactured or produced in the United States on which an 
internal-revenue tax has been paid or determined, there shall 
be allowed, under regulations to be prescribed by the 
Commissioner of Internal Revenue, with the approval of the 
Secretary of the Treasury, a drawback equal in amount to the 
tax found to have been paid or determined on such bottled 
distilled spirits and wines. In the case of distilled spirits, 
the preceding sentence shall not apply unless the claim for 
drawback is filed by the bottler or packager of the spirits and 
unless such spirits have been stamped or restamped, and marked, 
especially for export, under regulations prescribed by the 
Commissioner of Internal Revenue, with the approval of the 
Secretary of the Treasury.
  (e) Imported Salt for Curing Fish.--Imported salt in bond may 
be used in curing fish taken by vessels licensed to engage in 
the fisheries, and in curing fish on the shores of the 
navigable waters of the United States, whether such fish are 
taken by licensed or unlicensed vessels, and upon proof that 
the salt has been used for either of such purposes, the duties 
on the same shall be remitted.
  (f) Exportation of Meats Cured with Imported Salt.--Upon the 
exportation of meats, whether packed or smoked, which have been 
cured in the United States with imported salt, there shall be 
refunded, upon satisfactory proof that such meats have been 
cured with imported salt, the duties paid on the salt so used 
in curing such exported meats, in amounts not less than $100.
  (g) Materials for Construction and Equipment or Vessels Built 
for Foreigners.--The provisions of this section shall apply to 
materials imported and used in the construction and equipment 
of vessels built for foreign account and ownership, or for the 
government of any foreign country, notwithstanding that such 
vessels may not within the strict meaning of the term be 
articles exported.
  (h) Upon the exportation of jet aircraft engines manufactured 
or produced abroad that have been overhauled, repaired, 
rebuilt, or reconditioned in the United States with the use of 
imported merchandise, including parts, there shall be refunded, 
upon satisfactory proof that such imported merchandise has been 
so used, the duties which have been paid thereon, in amounts 
not less than $100.
  (i) Time Limitation on Exportation.--Unless otherwise 
provided for in this section, no drawback shall be allowed 
under the provisions of this section unless the completed 
article is exported, or destroyed under the supervision of the 
Customs Service, within five years after importation of the 
imported merchandise.
  (j) Unused Merchandise Drawback.--
          (1) If imported merchandise, on which was paid any 
        duty, tax, or fee imposed under Federal law upon entry 
        or importation--
                  (A) is, before the close of the 3-year period 
                beginning on the date of importation--
                          (i) exported, or
                          (ii) destroyed under customs 
                        supervision; and
                  (B) is not used within the United States 
                before such exportation or destruction;
        then upon such exportation or destruction 99 percent of 
        the amount of each duty, tax, or fee so paid shall be 
        refunded as drawback. The exporter (or destroyer) has 
        the right to claim drawback under this paragraph, but 
        may endorse such right to the importer or any 
        intermediate party.
          (2) Subject to paragraph (4), if there is, with 
        respect to imported merchandise on which was paid any 
        duty, tax, or fee imposed under Federal law upon entry 
        or importation, any other merchandise (whether imported 
        or domestic), that--
                  (A) is commercially interchangeable with such 
                imported merchandise;
                  (B) is, before the close of the 3-year period 
                beginning on the date of importation of the 
                imported merchandise, either exported or 
                destroyed under customs supervision; and
                  (C) before such exportation or destruction--
                          (i) is not used within the United 
                        States, and
                          (ii) is in the possession of, 
                        including ownership while in bailment, 
                        in leased facilities, in transit to, or 
                        in any other manner under the 
                        operational control of, the party 
                        claiming drawback under this paragraph, 
                        if that party--
                                  (I) is the importer of the 
                                imported merchandise, or
                                  (II) received from the person 
                                who imported and paid any duty 
                                due on the imported merchandise 
                                a certificate of delivery 
                                transferring to the party the 
                                imported merchandise, 
                                commercially interchangeable 
                                merchandise, or any combination 
                                of imported and commercially 
                                interchangeable merchandise 
                                (and any such transferred 
                                merchandise, regardless of its 
                                origin, will be treated as the 
                                imported merchandise and any 
                                retained merchandise will be 
                                treated as domestic 
                                merchandise);
        then, notwithstanding any other provision of law, upon 
        the exportation or destruction of such other 
        merchandise the amount of each such duty, tax, and fee 
        paid regarding the imported merchandise shall be 
        refunded as drawback under this subsection, but in no 
        case may the total drawback on the imported 
        merchandise, whether available under this paragraph or 
        any other provision of law or any combination thereof, 
        exceed 99 percent of that duty, tax, or fee. For 
        purposes of subparagraph (A) of this paragraph, wine of 
        the same color having a price variation not to exceed 
        50 percent between the imported wine and the exported 
        wine shall be deemed to be commercially 
        interchangeable.
          (3) The performing of any operation or combination of 
        operations (including, but not limited to, testing, 
        cleaning, repacking, inspecting, sorting, refurbishing, 
        freezing, blending, repairing, reworking, cutting, 
        slitting, adjusting, replacing components, relabeling, 
        disassembling, and unpacking), not amounting to 
        manufacture or production for drawback purposes under 
        the preceding provisions of this section on--
                  (A) the imported merchandise itself in cases 
                to which paragraph (1) applies, or
                  (B) the commercially interchangeable 
                merchandise in cases to which paragraph (2) 
                applies,
        shall not be treated as a use of that merchandise for 
        purposes of applying paragraph (1)(B) or (2)(C).
          (4)(A) Effective upon the entry into force of the 
        North American Free Trade Agreement, the exportation to 
        a NAFTA country, as defined in section 2(4) of the 
        North American Free Trade Agreement Implementation Act, 
        of merchandise that is fungible with and substituted 
        for imported merchandise, other than merchandise 
        described in paragraphs (1) through (8) of section 
        203(a) of that Act, shall not constitute an exportation 
        for purposes of paragraph (2).
          (B) Beginning on January 1, 2015, the exportation to 
        Chile of merchandise that is fungible with and 
        substituted for imported merchandise, other than 
        merchandise described in paragraphs (1) through (5) of 
        section 203(a) of the United States-Chile Free Trade 
        Agreement Implementation Act, shall not constitute an 
        exportation for purposes of paragraph (2). The 
        preceding sentence shall not be construed to permit the 
        substitution of unused drawback under paragraph (2) of 
        this subsection with respect to merchandise described 
        in paragraph (2) of section 203(a) of the United 
        States-Chile Free Trade Agreement Implementation Act.
  (k)(1) For purposes of subsections (a) and (b), the use of 
any domestic merchandise acquired in exchange for imported 
merchandise of the same kind and quality shall be treated as 
the use of such imported merchandise if no certificate of 
delivery is issued with respect to such imported merchandise.
  (2) For purposes of subsections (a) and (b), the use of any 
domestic merchandise acquired in exchange for a drawback 
product of the same kind and quality shall be treated as the 
use of such drawback product if no certificate of delivery or 
certificate of manufacture and delivery pertaining to such 
drawback product is issued, other than that which documents the 
product's manufacture and delivery. As used in this paragraph, 
the term ``drawback product'' means any domestically produced 
product, manufactured with imported merchandise or any other 
merchandise (whether imported or domestic) of the same kind and 
quality, that is subject to drawback.
  (l) Regulations.--Allowance of the privileges provided for in 
this section shall be subject to compliance with such rules and 
regulations as the Secretary of the Treasury shall prescribe, 
which may include, but need not be limited to, the authority 
for the electronic submission of drawback entries and the 
designation of the person to whom any refund or payment of 
drawback shall be made.
  (m) Source of Payment.--Any drawback of duties that may be 
authorized under the provisions of this Act shall be paid from 
the customs receipts of Puerto Rico, if the duties were 
originally paid into the Treasury of Puerto Rico.
  (n) Refunds, Waivers, or Reductions Under Certain Free Trade 
Agreements.--(1) For purposes of this subsection and subsection 
(o)--
          (A) the term ``NAFTA Act'' means the North American 
        Free Trade Agreement Implementation Act;
          (B) the terms ``NAFTA country'' and ``good subject to 
        NAFTA drawback'' have the same respective meanings that 
        are given such terms in sections 2(4) and 203(a) of the 
        NAFTA Act;
          (C) a refund, waiver, or reduction of duty under 
        paragraph (2) of this subsection or paragraph (1) of 
        subsection (o) is subject to section 508(b)(2)(B); and
          (D) the term ``good subject to Chile FTA drawback'' 
        has the meaning given that term in section 203(a) of 
        the United States-Chile Free Trade Agreement 
        Implementation Act.
  (2) For purposes of subsections (a), (b), (f), (h), (p), and 
(q), if an article that is exported to a NAFTA country is a 
good subject to NAFTA drawback, no customs duties on the good 
may be refunded, waived, or reduced in an amount that exceeds 
the lesser of--
          (A) the total amount of customs duties paid or owed 
        on the good on importation into the United States, or
          (B) the total amount of customs duties paid on the 
        good to the NAFTA country.
  (3) If Canada ceases to be a NAFTA country and the suspension 
of the operation of the United States-Canada Free-Trade 
Agreement thereafter terminates, then for purposes of 
subsections (a), (b), (f), (h), (j)(2), and (q), the shipment 
to Canada during the period such Agreement is in operation of 
an article made from or substituted for, as appropriate, a 
drawback eligible good under section 204(a) of the United 
States-Canada Free-Trade Implementation Act of 1988 does not 
constitute an exportation.
  (4)(A) For purposes of subsections (a), (b), (f), (h), 
(j)(2), (p), and (q), if an article that is exported to Chile 
is a good subject to Chile FTA drawback, no customs duties on 
the good may be refunded, waived, or reduced, except as 
provided in subparagraph (B).
  (B) The customs duties referred to in subparagraph (A) may be 
refunded, waived, or reduced by--
          (i) 100 percent during the 8-year period beginning on 
        January 1, 2004;
          (ii) 75 percent during the 1-year period beginning on 
        January 1, 2012;
          (iii) 50 percent during the 1-year period beginning 
        on January 1, 2013; and
          (iv) 25 percent during the 1-year period beginning on 
        January 1, 2014.
  (o) Special Rules for Certain Vessels and Imported 
Materials.--(1) For purposes of subsection (g), if--
          (A) a vessel is built for the account and ownership 
        of a resident of a NAFTA country or the government of a 
        NAFTA country, and
          (B) imported materials that are used in the 
        construction and equipment of the vessel are goods 
        subject to NAFTA drawback,
the amount of customs duties refunded, waived, or reduced on 
such materials may not exceed the lesser of the total amount of 
customs duties paid or owed on the materials on importation 
into the United States or the total amount of customs duties 
paid on the vessel to the NAFTA country.
  (2) If Canada ceases to be a NAFTA country and the suspension 
of the operation of the United States-Canada Free-Trade 
Agreement thereafter terminates, then for purposes of 
subsection (g), vessels built for Canadian account and 
ownership, or for the Government of Canada, may not be 
considered to be built for any foreign account and ownership, 
or for the government of any foreign country, except to the 
extent that the materials in such vessels are drawback eligible 
goods under section 204(a) of the United States-Canada Free-
Trade Implementation Act of 1988.
  (3) For purposes of subsection (g), if--
          (A) a vessel is built for the account and ownership 
        of a resident of Chile or the Government of Chile, and
          (B) imported materials that are used in the 
        construction and equipment of the vessel are goods 
        subject to Chile FTA drawback, as defined in section 
        203(a) of the United States-Chile Free Trade Agreement 
        Implementation Act,
no customs duties on such materials may be refunded, waived, or 
reduced, except as provided in paragraph (4).
  (4) The customs duties referred to in paragraph (3) may be 
refunded, waived or reduced by--
          (A) 100 percent during the 8-year period beginning on 
        January 1, 2004;
          (B) 75 percent during the 1-year period beginning on 
        January 1, 2012;
          (C) 50 percent during the 1-year period beginning on 
        January 1, 2013; and
          (D) 25 percent during the 1-year period beginning on 
        January 1, 2014.
  (p) Substitution of Finished Petroleum Derivatives.--
          (1) In general.--Notwithstanding any other provision 
        of this section, if--
                  (A) an article (hereafter referred to in this 
                subsection as the ``exported article'') of the 
                same kind and quality as a qualified article is 
                exported;
                  (B) the requirements set forth in paragraph 
                (2) are met; and
                  (C) a drawback claim is filed regarding the 
                exported article;
        drawback shall be allowed as described in paragraph 
        (4).
          (2) Requirements.--The requirements referred to in 
        paragraph (1) are as follows:
                  (A) The exporter of the exported article--
                          (i) manufactured or produced a 
                        qualified article in a quantity equal 
                        to or greater than the quantity of the 
                        exported article,
                          (ii) purchased or exchanged, directly 
                        or indirectly, a qualified article from 
                        a manufacturer or producer described in 
                        subsection (a) or (b) in a quantity 
                        equal to or greater than the quantity 
                        of the exported article,
                          (iii) imported a qualified article in 
                        a quantity equal to or greater than the 
                        quantity of the exported article, or
                          (iv) purchased or exchanged, directly 
                        or indirectly, a qualified article from 
                        an importer in a quantity equal to or 
                        greater than the quantity of the 
                        exported article.
                  (B) In the case of the requirement described 
                in subparagraph (A)(ii), the manufacturer or 
                producer produced the qualified article in a 
                quantity equal to or greater than the quantity 
                of the exported article.
                  (C) In the case of the requirement of 
                subparagraph (A)(i) or (A)(ii), the exported 
                article is exported during the period that the 
                qualified article described in subparagraph 
                (A)(i) or (A)(ii) (whichever is applicable) is 
                manufactured or produced, or within 180 days 
                after the close of such period.
                  (D) In the case of the requirement of 
                subparagraph (A)(i) or (A)(ii), the specific 
                petroleum refinery or production facility which 
                made the qualified article concerned is 
                identified.
                  (E) In the case of the requirement of 
                subparagraph (A)(iii) or (A)(iv), the exported 
                article is exported within 180 days after the 
                date of entry of an imported qualified article 
                described in subparagraph (A)(iii) or (A)(iv) 
                (whichever is applicable).
                  (F) Except as otherwise specifically provided 
                in this subsection, the drawback claimant 
                complies with all requirements of this section, 
                including providing certificates which 
                establish the drawback eligibility of articles 
                for which drawback is claimed.
                  (G) The manufacturer, producer, importer, 
                transferor, exporter, and drawback claimant of 
                the qualified article and the exported article 
                maintain all records required by regulation.
          (3) Definition of qualified article, etc.--For 
        purposes of this subsection--
                  (A) The term ``qualified article'' means an 
                article--
                          (i) described in--
                                  (I) headings 2707, 2708, 
                                2709.00, 2710, 2711, 2712, 
                                2713, 2714, 2715, 2901, and 
                                2902, and subheadings 
                                2903.21.00, 2909.19.14, 
                                2917.36, 2917.39.04, 
                                2917.39.15, 2926.10.00, 
                                3811.21.00, and 3811.90.00 of 
                                the Harmonized Tariff Schedule 
                                of the United States, or
                                  (II) headings 3901 through 
                                3914 of such Schedule (as such 
                                headings apply to the primary 
                                forms provided under Note 6 to 
                                chapter 39 of the Harmonized 
                                Tariff Schedule of the United 
                                States), and
                          (ii) which is--
                                  (I) manufactured or produced 
                                as described in subsection (a) 
                                or (b) from crude petroleum or 
                                a petroleum derivative,
                                  (II) imported duty-paid, or
                                  (III) an article of the same 
                                kind and quality as described 
                                in subparagraph (B), or any 
                                combination thereof, that is 
                                transferred, as so certified in 
                                a certificate of delivery or 
                                certificate of manufacture and 
                                delivery in a quantity not 
                                greater than the quantity of 
                                articles purchased or 
                                exchanged.
                        The transferred merchandise described 
                        in subclause (III), regardless of its 
                        origin, so designated on the 
                        certificate of delivery or certificate 
                        of manufacture and delivery shall be 
                        the qualified article for purposes of 
                        this section. A party who issues a 
                        certificate of delivery, or certificate 
                        of manufacture and delivery, shall also 
                        certify to the Commissioner of Customs 
                        that it has not, and will not, issue 
                        such certificates for a quantity 
                        greater than the amount eligible for 
                        drawback and that appropriate records 
                        will be maintained to demonstrate that 
                        fact.
                  (B) An article, including an imported, 
                manufactured, substituted, or exported article, 
                is of the same kind and quality as the 
                qualified article for which it is substituted 
                under this subsection if it is a product that 
                is commercially interchangeable with or 
                referred to under the same eight-digit 
                classification of the Harmonized Tariff 
                Schedule of the United States as the qualified 
                article. If an article is referred to under the 
                same eight-digit classification of the 
                Harmonized Tariff Schedule of the United States 
                as the qualified article on January 1, 2000, 
                then whether or not the article has been 
                reclassified under another eight-digit 
                classification after January 1, 2000, the 
                article shall be deemed to be an article that 
                is referred to under the same eight-digit 
                classification of such Schedule as the 
                qualified article for purposes of the preceding 
                sentence.
                  (C) The term ``drawback claimant'' means the 
                exporter of the exported article or the 
                refiner, producer, or importer of either the 
                qualified article or the exported article. Any 
                person eligible to file a drawback claim under 
                this subparagraph may designate another person 
                to file such claim.
          (4) Limitation on drawback.--The amount of drawback 
        payable under this subsection shall not exceed the 
        amount of drawback that would be attributable to the 
        article--
                  (A) manufactured or produced under subsection 
                (a) or (b) by the manufacturer or producer 
                described in clause (i) or (ii) of paragraph 
                (2)(A), or
                  (B) imported under clause (iii) or (iv) of 
                paragraph (2)(A) had the claim qualified for 
                drawback under subsection (j).
          (5) Special rules for ethyl alcohol.--For purposes of 
        this subsection, any duty paid under subheading 
        9901.00.50 of the Harmonized Tariff Schedule of the 
        United States on imports of ethyl alcohol or a mixture 
        of ethyl alcohol may not be refunded if the exported 
        article upon which a drawback claim is based does not 
        contain ethyl alcohol or a mixture of ethyl alcohol.
  (q) Packaging Material.--
          (1) Packaging material under subsections (c) and 
        (j).--Packaging material, whether imported and duty 
        paid, and claimed for drawback under either subsection 
        (c) or (j)(1), or imported and duty paid, or 
        substituted, and claimed for drawback under subsection 
        (j)(2), shall be eligible for drawback, upon 
        exportation, of 99 percent of any duty, tax, or fee 
        imposed under Federal law on such imported material.
          (2) Packaging material under subsections (a) and 
        (b).--Packaging material that is manufactured or 
        produced under subsection (a) or (b) shall be eligible 
        for drawback, upon exportation, of 99 percent of any 
        duty, tax, or fee imposed under Federal law on the 
        imported or substituted merchandise used to manufacture 
        or produce such material.
          (3) Contents.--Packaging material described in 
        paragraphs (1) and (2) shall be eligible for drawback 
        whether or not they contain articles or merchandise, 
        and whether or not any articles or merchandise they 
        contain are eligible for drawback.
          (4) Employing packaging material for its intended 
        purpose prior to exportation.--The use of any packaging 
        material for its intended purpose prior to exportation 
        shall not be treated as a use of such material prior to 
        exportation for purposes of applying subsection (a), 
        (b), or (c), or paragraph (1)(B) or (2)(C)(i) of 
        subsection (j).
  (r) Filing Drawback Claims.--
          (1) A drawback entry and all documents necessary to 
        complete a drawback claim, including those issued by 
        the Customs Service, shall be filed or applied for, as 
        applicable, within 3 years after the date of 
        exportation or destruction of the articles on which 
        drawback is claimed, except that any landing 
        certificate required by regulation shall be filed 
        within the time limit prescribed in such regulation. 
        Claims not completed within the 3-year period shall be 
        considered abandoned. No extension will be granted 
        unless it is established that the Customs Service was 
        responsible for the untimely filing.
          (2) A drawback entry for refund filed pursuant to any 
        subsection of this section shall be deemed filed 
        pursuant to any other subsection of this section should 
        it be determined that drawback is not allowable under 
        the entry as originally filed but is allowable under 
        such other subsection.
          (3)(A) The Customs Service may, notwithstanding the 
        limitation set forth in paragraph (1), extend the time 
        for filing a drawback claim for a period not to exceed 
        18 months, if--
                  (i) the claimant establishes to the 
                satisfaction of the Customs Service that the 
                claimant was unable to file the drawback claim 
                because of an event declared by the 
                President to be a major disaster on or after 
                January 1, 1994; and
                  (ii) the claimant files a request for such 
                extension with the Customs Service--
                          (I) within 1 year from the last day 
                        of the 3-year period referred to in 
                        paragraph (1), or
                          (II) within 1 year after the date of 
                        the enactment of this paragraph,
                whichever is later.
          (B) If an extension is granted with respect to a 
        request filed under this paragraph, the periods of time 
        for retaining records set forth in subsection (t) of 
        this section and section 508(c)(3) shall be extended 
        for an additional 18 months or, in a case to which 
        subparagraph (A)(ii) applies, for a period not to 
        exceed 1 year from the date the claim is filed.
          (C) For purposes of this paragraph, the term ``major 
        disaster'' has the meaning given that term in section 
        102(2) of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5122(2)).
  (s) Designation of Merchandise by Successor.--
          (1) For purposes of subsection (b), a drawback 
        successor may designate imported merchandise used by 
        the predecessor before the date of succession as the 
        basis for drawback on articles manufactured by the 
        drawback successor after the date of succession.
          (2) For purposes of subsection (j)(2), a drawback 
        successor may designate--
                  (A) imported merchandise which the 
                predecessor, before the date of succession, 
                imported; or
                  (B) imported merchandise, commercially 
                interchangeable merchandise, or any combination 
                of imported and commercially interchangeable 
                merchandise for which the predecessor received, 
                before the date of succession, from the person 
                who imported and paid any duty due on the 
                imported merchandise a certificate of delivery 
                transferring to the predecessor such 
                merchandise;
        as the basis for drawback on merchandise possessed by 
        the drawback predecessor after the date of succession.
          (3) For purposes of this subsection, the term 
        ``drawback successor'' means an entity to which another 
        entity (in this subsection referred to as the 
        ``predecessor'') has transferred by written agreement, 
        merger, or corporate resolution--
                  (A) all or substantially all of the rights, 
                privileges, immunities, powers, duties, and 
                liabilities of the predecessor; or
                  (B) the assets and other business interests 
                of a division, plant, or other business unit of 
                such predecessor, but only if in such transfer 
                the value of the transferred realty, 
                personalty, and intangibles (other than 
                drawback rights, inchoate or otherwise) exceeds 
                the value of all transferred drawback rights, 
                inchoate or otherwise.
          (4) No drawback shall be paid under this subsection 
        until either the predecessor or the drawback successor 
        (who shall also certify that it has the predecessor's 
        records) certifies that--
                  (A) the transferred merchandise was not and 
                will not be claimed by the predecessor, and
                  (B) the predecessor did not and will not 
                issue any certificate to any other person that 
                would enable that person to claim drawback.
  (t) Drawback Certificates.--Any person who issues a 
certificate which would enable another person to claim drawback 
shall be subject to the recordkeeping provisions of this Act, 
with the retention period beginning on the date that such 
certificate is issued.
  (u) Eligibility of Entered or Withdrawn Merchandise.--
Imported merchandise that has not been regularly entered or 
withdrawn for consumption shall not satisfy any requirement for 
use, exportation, or destruction under this section.
  (v) Multiple Drawback Claims.--Merchandise that is exported 
or destroyed to satisfy any claim for drawback shall not be the 
basis of any other claim for drawback; except that appropriate 
credit and deductions for claims covering components or 
ingredients of such merchandise shall be made in computing 
drawback payments.
  (w) Limited Applicability for Certain Agricultural 
Products.--
          (1) In general.--No drawback shall be available with 
        respect to an agricultural product subject to the over-
        quota rate of duty established under a tariff-rate 
        quota, except pursuant to subsection (j)(1).
          (2) Application to tobacco.--Notwithstanding 
        paragraph (1), drawback shall also be available 
        pursuant to subsection (a) with respect to any tobacco 
        subject to the over-quota rate of duty established 
        under a tariff-rate quota.
  (x) Drawbacks for Recovered Materials.--For purposes of 
subsections (a), (b), and (c), the term ``destruction'' 
includes a process by which materials are recovered from 
imported merchandise or from an article manufactured from 
imported merchandise. In determining the amount of duties to be 
refunded as drawback to a claimant under this subsection, the 
value of recovered materials (including the value of any tax 
benefit or royalty payment) that accrues to the drawback 
claimant shall be deducted from the value of the imported 
merchandise that is destroyed, or from the value of the 
merchandise used, or designated as used, in the manufacture of 
the article.
  (y) Articles Shipped to the United States Insular 
Possessions.--Articles described in subsection (j)(1) shall be 
eligible for drawback under this section if duty was paid on 
the merchandise upon importation into the United States and the 
person claiming the drawback demonstrates that the merchandise 
has entered the customs territory of the United States Virgin 
Islands, American Samoa, Wake Island, Midway Islands, Kingman 
Reef, Guam, Canton Island, Enderbury Island, Johnston Island, 
or Palmyra Island.
  (4)(A) For purposes of subsections (a), (b), (f), (h), 
(j)(2), (p), and (q), if an article that is exported to Chile 
is a good subject to Chile FTA drawback, no customs duties on 
the good may be refunded, waived, or reduced, except as 
provided in subparagraph (B).
  (B) The customs duties referred to in subparagraph (A) may be 
refunded, waived, or reduced by--
          (i) 100 percent during the 8-year period beginning on 
        January 1, 2004;
          (ii) 75 percent during the 1-year period beginning on 
        January 1, 2012;
          (iii) 50 percent during the 1-year period beginning 
        on January 1, 2013; and
          (iv) 25 percent during the 1-year period beginning on 
        January 1, 2014.

           *       *       *       *       *       *       *


SEC. 321. ADMINISTRATIVE EXEMPTIONS.

  (a) The Secretary of the Treasury, in order to avoid expense 
and inconvenience to the Government disproportionate to the 
amount of revenue that would otherwise be collected, is hereby 
authorized, under such regulations as he shall prescribe, to--
          (1) disregard a difference of an amount specified by 
        the Secretary by regulation, but not less than $20, 
        between the total estimated duties, fees, and taxes 
        deposited, or the total duties fees, and taxes 
        tentatively assessed, with respect to any entry of 
        merchandise and the total amount of duties, fees, 
        taxes, and interest actually accruing thereon;
          (2) admit articles free of duty and of any tax 
        imposed on or by reason of importation, but the 
        aggregate fair retail value in the country of shipment 
        of articles imported by one person on one day and 
        exempted from the payment of duty shall not exceed an 
        amount specified by the Secretary by regulation, but 
        not less than--
                  (A) $100 in the case of articles sent as bona 
                fide gifts from persons in foreign countries to 
                persons in the United States $200, in the case 
                of articles sent as bona fide gifts from 
                persons in the Virgin Islands, Guam, and 
                America Samoa), or
                  (B) $200 in the case of articles 
                accompanying, and for the personal or household 
                use of, persons arriving in the United States 
                who are not entitled to any exemption from duty 
                under subheading 9804.00.30, 9804.00.65, or 
                9804.00.70 of this Act, or
                  (C) $200 in any other case.
        The privilege of this subdivision (2) shall not be 
        granted in any case in which merchandise covered by a 
        single order or contract is forwarded in separate lots 
        to secure the benefit of this subdivision (2); and
          (3) waive the collection of duties, fees, taxes, and 
        interest due on entered merchandise when such duties, 
        fees, taxes, or interest are less than $20 or such 
        greater amount as may be specified by the Secretary by 
        regulation.
  (b) The Secretary of the Treasury is authorized by 
regulations to prescribe exceptions to any exemption provided 
for in subsection (a) whenever he finds that such action is 
consistent with the purpose of subsection (a) or is necessary 
for any reason to protect the revenue or to prevent unlawful 
importations.

           *       *       *       *       *       *       *


                  TITLE IV--ADMINISTRATIVE PROVISIONS

PART I--DEFINITIONS AND NATIONAL CUSTOMS AUTOMATION PROGRAM

           *       *       *       *       *       *       *



             Subpart B--National Customs Automation Program


SEC. 411. NATIONAL CUSTOMS AUTOMATION PROGRAM.

  (a) Establishment.--The Secretary shall establish the 
National Customs Automation Program (hereinafter in this 
subpart referred to as the ``Program'') which shall be an 
automated and electronic system for processing commercial 
importations and shall include the following existing and 
planned components:
          (1) Existing components:
                  (A) The electronic entry of merchandise.
                  (B) The electronic entry summary of required 
                information.
                  (C) The electronic transmission of invoice 
                information.
                  (D) The electronic transmission of manifest 
                information.
                  (E) Electronic payments of duties, fees, and 
                taxes.
                  (F) The electronic status of liquidation and 
                reliquidation.
                  (G) The electronic selection of high risk 
                entries for examination (cargo selectivity and 
                entry summary selectivity).
          (2) Planned components:
                  (A) The electronic filing and status of 
                protests.
                  (B) The electronic filing (including remote 
                filing under section 414) of entry information 
                with the Customs Service at any location.
                  (C) The electronic filing of import activity 
                summary statements and reconciliation.
                  (D) The electronic filing of bonds.
                  (E) The electronic penalty process.
                  (F) The electronic filing of drawback claims, 
                records, or entries.
                  (G) Any other component initiated by the 
                Customs Service to carry out the goals of this 
                subpart.
  (b) Participation in Program.--The Secretary shall by 
regulation prescribe the eligibility criteria for participation 
in the Program. The Secretary may, by regulation, require the 
electronic submission of information described in subsection 
(a) or any other information required to be submitted to the 
Customs Service separately pursuant to this subpart.
  (c) Foreign-Trade Zones.--Not later than January 1, 2000, the 
Secretary shall provide for the inclusion of commercial 
importation data from foreign-trade zones under the Program.
  (d) International Trade Data System.--
          (1) Establishment.--
                  (A) In general.--The Secretary of the 
                Treasury (in this subsection, referred to as 
                the ``Secretary'') shall oversee the 
                establishment of an electronic trade data 
                interchange system to be known as the 
                ``International Trade Data System'' (ITDS). The 
                ITDS shall be implemented not later than the 
                date that the Automated Commercial Environment 
                (commonly referred to as ``ACE'') is fully 
                implemented.
                  (B) Purpose.--The purpose of the ITDS is to 
                eliminate redundant information requirements, 
                to efficiently regulate the flow of commerce, 
                and to effectively enforce laws and regulations 
                relating to international trade, by 
                establishing a single portal system, operated 
                by the United States Customs and Border 
                Protection, for the collection and distribution 
                of standard electronic import and export data 
                required by all participating Federal agencies.
                  (C) Participation.--
                          (i) In general.--All Federal agencies 
                        that require documentation for clearing 
                        or licensing the importation and 
                        exportation of cargo shall participate 
                        in the ITDS.
                          (ii) Waiver.--The Director of the 
                        Office of Management and Budget may 
                        waive, in whole or in part, the 
                        requirement for participation for any 
                        Federal agency based on the vital 
                        national interest of the United States.
                  (D) Consultation.--The Secretary shall 
                consult with and assist the United States 
                Customs and Border Protection and other 
                agencies in the transition from paper to 
                electronic format for the submission, issuance, 
                and storage of documents relating to data 
                required to enter cargo into the United States. 
                In so doing, the Secretary shall also consult 
                with private sector stakeholders, including the 
                Commercial Operations Advisory Committee, in 
                developing uniform data submission 
                requirements, procedures, and schedules, for 
                the ITDS.
                  (E) Coordination.--The Secretary shall be 
                responsible for coordinating the operation of 
                the ITDS among the participating agencies and 
                the office within the United States Customs and 
                Border Protection that is responsible for 
                maintaining the ITDS.
          (2) Data elements.--
                  (A) In general.--The Interagency Steering 
                Committee (established under paragraph (3)) 
                shall, in consultation with the agencies 
                participating in the ITDS, define the standard 
                set of data elements to be collected, stored, 
                and shared in the ITDS, consistent with laws 
                applicable to the collection and protection of 
                import and export information. The Interagency 
                Steering Committee shall periodically review 
                the data elements in order to update the 
                standard set of data elements, as necessary.
                  (B) Commitments and obligations.--The 
                Interagency Steering Committee shall ensure 
                that the ITDS data requirements are compatible 
                with the commitments and obligations of the 
                United States as a member of the World Customs 
                Organization (WCO) and the World Trade 
                Organization (WTO) for the entry and movement 
                of cargo.
          (3) Interagency steering committee.--There is 
        established an Interagency Steering Committee (in this 
        section, referred to as the ``Committee''). The members 
        of the Committee shall include the Secretary (who shall 
        serve as the chairperson of the Committee), the 
        Director of the Office of Management and Budget, and 
        the head of each agency participating in the ITDS. The 
        Committee shall assist the Secretary in overseeing the 
        implementation of, and participation in, the ITDS.
          (4) Report.--The President shall submit a report 
        before the end of each fiscal year to the Committee on 
        Finance of the Senate and the Committee on Ways and 
        Means of the House of Representatives. Each report 
        shall include information on--
                  (A) the status of the ITDS implementation;
                  (B) the extent of participation in the ITDS 
                by Federal agencies;
                  (C) the remaining barriers to any agency's 
                participation;
                  (D) the consistency of the ITDS with 
                applicable standards established by the World 
                Customs Organization and the World Trade 
                Organization;
                  (E) recommendations for technological and 
                other improvements to the ITDS; and
                  (F) the status of the development, 
                implementation, and management of the Automated 
                Commercial Environment within the United States 
                Customs and Border Protection.
          (5) Sense of congress.--It is the sense of Congress 
        that agency participation in the ITDS is an important 
        priority of the Federal Government and that the 
        Secretary shall coordinate the operation of the ITDS 
        closely among the participating agencies and the office 
        within the United States Customs and Border Protection 
        that is responsible for maintaining the ITDS.
          (6) Construction.--Nothing in this section shall be 
        construed as amending or modifying subsection (g) of 
        section 301 of title 13, United States Code.
          (7) Definition.--The term ``Commercial Operations 
        Advisory Committee'' means the Advisory Committee 
        established pursuant to section 9503(c) of the Omnibus 
        Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) 
        or any successor committee.

           *       *       *       *       *       *       *


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

           *       *       *       *       *       *       *



SEC. 508. RECORDKEEPING.

  (a) Requirements.--Any--
          (1) owner, importer, consignee, importer of record, 
        entry filer, or other party who--
                  (A) imports merchandise into the customs 
                territory of the United States, files a 
                drawback claim, or transports or stores 
                merchandise carried or held under bond, or
                  (B) knowingly causes the importation or 
                transportation or storage of merchandise 
                carried or held under bond into or from the 
                customs territory of the United States;
          (2) agent of any party described in paragraph (1); or
          (3) person whose activities require the filing of a 
        declaration or entry, or both;
shall make, keep, and render for examination and inspection 
records (which for purposes of this section include, but are 
not limited to, statements, declarations, documents and 
electronically generated or machine readable data) which--
          (A) pertain to any such activity, or to the 
        information contained in the records required by this 
        Act in connection with any such activity; and
          (B) are normally kept in the ordinary course of 
        business.
  (b) Exportations to NAFTA Countries.--
          (1) Definitions.--As used in this subsection--
                  (A) The term ``associated records'' means, in 
                regard to an exported good under paragraph (2), 
                records associated with--
                          (i) the purchase of, cost of, value 
                        of, and payment for, the good;
                          (ii) the purchase of, cost of, value 
                        of, and payment for, all material, 
                        including indirect materials, used in 
                        the production of the good; and
                          (iii) the production of the good.
                For purposes of this subparagraph, the terms 
                ``indirect 
                material,''``material,''``preferential tariff 
                treatment,''``used,'' and ``value'' have the 
                respective meanings given them in articles 415 
                and 514 of the North American Free Trade 
                Agreement.
                  (B) The term ``NAFTA Certificate of Origin'' 
                means the certification, established under 
                article 501 of the North American Free Trade 
                Agreement, that a good qualifies as an 
                originating good under such Agreement.
          (2) Exports to nafta countries.--
                  (A) In general.--Any person who completes and 
                signs a NAFTA Certificate of Origin for a good 
                for which preferential treatment under the 
                North American Free Trade Agreement is claimed 
                shall make, keep, and render for examination 
                and inspection all records relating to the 
                origin of the good (including the Certificate 
                or copies thereof) and the associated records.
                  (B) Claims for certain waivers, reductions, 
                or refunds of duties or for credit against 
                bonds.--
                          (i) In general.--Any person that 
                        claims with respect to an article--
                                  (I) a waiver or reduction of 
                                duty under the eleventh 
                                paragraph of section 311, 
                                section 312(b)(1) or (4), 
                                section 562(2), or the proviso 
                                preceding the last proviso to 
                                section 3(a) of the Foreign 
                                Trade Zones Act;
                                  (II) a credit against a bond 
                                under section 312(d); or
                                  (III) a refund, waiver, or 
                                reduction of duty under section 
                                313(n)(2) or (o)(1);
                        must disclose to the Customs Service 
                        the information described in clause 
                        (ii).
                          (ii) Information required.--Within 30 
                        days after making a claim described in 
                        clause (i) with respect to an article, 
                        the person making the claim must 
                        disclose to the Customs Service whether 
                        that person has prepared, or has 
                        knowledge that another person has 
                        prepared, a NAFTA Certificate of Origin 
                        for the article. If after such 30-day 
                        period the person making the claim 
                        either--
                                  (I) prepares a NAFTA 
                                Certificate of Origin for the 
                                article; or
                                  (II) learns of the existence 
                                of such a Certificate for the 
                                article;
                        that person, within 30 days after the 
                        occurrence described in subclause (I) 
                        or (II), must disclose the occurrence 
                        to the Customs Service.
                          (iii) Action on claim.--If the 
                        Customs Service determines that a NAFTA 
                        Certificate of Origin has been prepared 
                        with respect to an article for which a 
                        claim described in clause (i) is made, 
                        the Customs Service may make such 
                        adjustments regarding the previous 
                        customs treatment of the article as may 
                        be warranted under the claim.
          (3) Exports under the canadian agreement.--Any person 
        who exports, or who knowingly causes to be exported, 
        any merchandise to Canada during such time as the 
        United States-Canada Free-Trade Agreement is in force 
        with respect to, and the United States applies that 
        Agreement to, Canada shall make, keep, and render for 
        examination and inspection such records (including 
        certifications of origin or copies thereof) which 
        pertain to the exportations.
  (c) Period of Time.--The records required by subsections (a) 
and (b) shall be kept for such periods of time as the Secretary 
shall prescribe; except that--
          (1) no period of time for the retention of the 
        records required under subsection (a) or (b)(3) may 
        exceed 5 years from the date of entry, filing of a 
        reconciliation, or exportation, as appropriate;
          (2) the period of time for the retention of the 
        records required under subsection (b)(2) shall be at 
        least 5 years from the date of signature of the NAFTA 
        Certificate of Origin; and
          (3) records for any drawback claim shall be kept 
        until the 3rd anniversary of the date of payment of the 
        claim.
  (d) Limitation.--For the purposes of this section and section 
509, a person ordering merchandise from an importer in a 
domestic transaction does not knowingly cause merchandise to be 
imported unless--
          (1) the terms and conditions of the importation are 
        controlled by the person placing the order; or
          (2) technical data, molds, equipment, other 
        production assistance, material, components, or parts 
        are furnished by the person placing the order with 
        knowledge that they will be used in the manufacture or 
        production of the imported merchandise.
  (e) Subsection (b) Penalties.--
          (1) Relating to nafta exports.--Any person who fails 
        to retain records required by paragraph (2) of 
        subsection (b) or the regulations issued to implement 
        that paragraph shall be liable for--
                  (A) a civil penalty not to exceed $10,000; or
                  (B) the general recordkeeping penalty that 
                applies under the customs laws;
        whichever penalty is higher.
          (2) Relating to canadian agreement exports.--Any 
        person who fails to retain the records required by 
        paragraph (3) of subsection (b) or the regulations 
        issued to implement that paragraph shall be liable for 
        a civil penalty not to exceed $10,000.
  (f) Certificates of Origin for Goods Exported Under the 
United States-Chile Free Trade Agreement.--
          (1) Definitions.--In this subsection:
                  (A) Records and supporting documents.--The 
                term ``records and supporting documents'' 
                means, with respect to an exported good under 
                paragraph (2), records and documents related to 
                the origin of the good, including--
                          (i) the purchase, cost, and value of, 
                        and payment for, the good;
                          (ii) if applicable, the purchase, 
                        cost, and value of, and payment for, 
                        all materials, including recovered 
                        goods, used in the production of the 
                        good; and
                          (iii) if applicable, the production 
                        of the good in the form in which it was 
                        exported.
                  (B) Chile fta certificate of origin.--The 
                term ``Chile FTA Certificate of Origin'' means 
                the certification, established under article 
                4.13 of the United States-Chile Free Trade 
                Agreement, that a good qualifies as an 
                originating good under such Agreement.
          (2) Exports to chile.--Any person who completes and 
        issues a Chile FTA Certificate of Origin for a good 
        exported from the United States shall make, keep, and, 
        pursuant to rules and regulations promulgated by the 
        Secretary of the Treasury, render for examination and 
        inspection all records and supporting documents related 
        to the origin of the good (including the Certificate or 
        copies thereof).
          (3) Retention period.--Records and supporting 
        documents shall be kept by the person who issued a 
        Chile FTA Certificate of Origin for at least 5 years 
        after the date on which the certificate was issued.
  (g) Certifications of Origin for Goods Exported Under the 
Dominican Republic-Central America-United States Free Trade 
Agreement.--
          (1) Definitions.--In this subsection:
                  (A) Records and supporting documents.--The 
                term ``records and supporting documents'' 
                means, with respect to an exported good under 
                paragraph (2), records and documents related to 
                the origin of the good, including--
                          (i) the purchase, cost, and value of, 
                        and payment for, the good;
                          (ii) the purchase, cost, and value 
                        of, and payment for, all materials, 
                        including indirect materials, used in 
                        the production of the good; and
                          (iii) the production of the good in 
                        the form in which it was exported.
                  (B) CAFTA-DR certification of origin.--The 
                term ``CAFTA-DR certification of origin'' means 
                the certification established under article 
                4.16 of the Dominican Republic-Central America-
                United States Free Trade Agreement that a good 
                qualifies as an originating good under such 
                Agreement.
          (2) Exports to cafta-dr countries.--Any person who 
        completes and issues a CAFTA-DR certification of origin 
        for a good exported from the United States shall make, 
        keep, and, pursuant to rules and regulations 
        promulgated by the Secretary of the Treasury, render 
        for examination and inspection all records and 
        supporting documents related to the origin of the good 
        (including the certification or copies thereof).
          (3) Retention period.--Records and supporting 
        documents shall be kept by the person who issued a 
        CAFTA-DR certification of origin for at least 5 years 
        after the date on which the certification was issued.
  (h) Certifications of Origin for Goods Exported Under the 
United States-Peru Trade Promotion Agreement.--
          (1) Definitions.--In this subsection:
                  (A) Records and supporting documents.--The 
                term ``records and supporting documents'' 
                means, with respect to an exported good under 
                paragraph (2), records and documents related to 
                the origin of the good, including--
                          (i) the purchase, cost, and value of, 
                        and payment for, the good;
                          (ii) the purchase, cost, and value 
                        of, and payment for, all materials, 
                        including indirect materials, used in 
                        the production of the good; and
                          (iii) the production of the good in 
                        the form in which it was exported.
                  (B) PTPA certification of origin.--The term 
                ``PTPA certification of origin'' means the 
                certification established under article 4.15 of 
                the United States-Peru Trade Promotion 
                Agreement that a good qualifies as an 
                originating good under such Agreement.
          (2) Exports to peru.--Any person who completes and 
        issues a PTPA certification of origin for a good 
        exported from the United States shall make, keep, and, 
        pursuant to rules and regulations promulgated by the 
        Secretary of the Treasury, render for examination and 
        inspection all records and supporting documents related 
        to the origin of the good (including the certification 
        or copies thereof).
          (3) Retention period.--The person who issues a PTPA 
        certification of origin shall keep the records and 
        supporting documents relating to that certification of 
        origin for a period of at least 5 years after the date 
        on which the certification is issued.
  (i) Certifications of Origin for Goods Exported Under the 
United States-Korea Free Trade Agreement.--
          (1) Definitions.--In this subsection:
                  (A) Records and supporting documents.--The 
                term ``records and supporting documents'' 
                means, with respect to an exported good under 
                paragraph (2), records and documents related to 
                the origin of the good, including--
                          (i) the purchase, cost, and value of, 
                        and payment for, the good;
                          (ii) the purchase, cost, and value 
                        of, and payment for, all materials, 
                        including indirect materials, used in 
                        the production of the good; and
                          (iii) the production of the good in 
                        the form in which it was exported.
                  (B) KFTA certification of origin.--The term 
                ``KFTA certification of origin'' means the 
                certification established under article 6.15 of 
                the United States-Korea Free Trade Agreement 
                that a good qualifies as an originating good 
                under such Agreement.
          (2) Exports to korea.--Any person who completes and 
        issues a KFTA certification of origin for a good 
        exported from the United States shall make, keep, and, 
        pursuant to rules and regulations promulgated by the 
        Secretary of the Treasury, render for examination and 
        inspection all records and supporting documents related 
        to the origin of the good (including the certification 
        or copies thereof).
          (3) Retention period.--The person who issues a KFTA 
        certification of origin shall keep the records and 
        supporting documents relating to that certification of 
        origin for a period of at least 5 years after the date 
        on which the certification is issued.
  (j) Certifications of Origin for Goods Exported Under the 
United States-Colombia Trade Promotion Agreement.--
          (1) Definitions.--In this subsection:
                  (A) Records and supporting documents.--The 
                term ``records and supporting documents'' 
                means, with respect to an exported good under 
                paragraph (2), records and documents related to 
                the origin of the good, including--
                          (i) the purchase, cost, and value of, 
                        and payment for, the good;
                          (ii) the purchase, cost, and value 
                        of, and payment for, all materials, 
                        including indirect materials, used in 
                        the production of the good; and
                          (iii) the production of the good in 
                        the form in which it was exported.
                  (B) CTPA certification of origin.--The term 
                ``CTPA certification of origin'' means the 
                certification established under article 4.15 of 
                the United States-Colombia Trade Promotion 
                Agreement that a good qualifies as an 
                originating good under such Agreement.
          (2) Exports to colombia.--Any person who completes 
        and issues a CTPA certification of origin for a good 
        exported from the United States shall make, keep, and, 
        pursuant to rules and regulations promulgated by the 
        Secretary of the Treasury, render for examination and 
        inspection all records and supporting documents related 
        to the origin of the good (including the certification 
        or copies thereof).
          (3) Retention period.--The person who issues a CTPA 
        certification of origin shall keep the records and 
        supporting documents relating to that certification of 
        origin for a period of at least 5 years after the date 
        on which the certification is issued.
  (k) Certifications of Origin for Goods Exported Under the 
United States-panama Trade Promotion Agreement.--
          (1) Definitions.--In this subsection:
                  (A) Records and supporting documents.--The 
                term ``records and supporting documents'' 
                means, with respect to an exported good under 
                paragraph (2), records and documents related to 
                the origin of the good, including--
                          (i) the purchase, cost, and value of, 
                        and payment for, the good;
                          (ii) the purchase, cost, and value 
                        of, and payment for, all materials, 
                        including indirect materials, used in 
                        the production of the good; and
                          (iii) the production of the good in 
                        the form in which it was exported.
                  (B) Panama tpa certification of origin.--The 
                term ``Panama TPA certification of origin'' 
                means the certification established under 
                article 4.15 of the United States-Panama Trade 
                Promotion Agreement that a good qualifies as an 
                originating good under such Agreement.
          (2) Exports to panama.--Any person who completes and 
        issues a Panama TPA certification of origin for a good 
        exported from the United States shall make, keep, and, 
        pursuant to rules and regulations promulgated by the 
        Secretary of the Treasury, render for examination and 
        inspection all records and supporting documents related 
        to the origin of the good (including the certification 
        or copies thereof).
          (3) Retention period.--The person who issues a Panama 
        TPA certification of origin shall keep the records and 
        supporting documents relating to that certification of 
        origin for a period of at least 5 years after the date 
        on which the certification is issued.
  (l) Penalties.--Any person who fails to retain records and 
supporting documents required by subsection (f), (g), (h), (i), 
(j), or (k) or the regulations issued to implement any such 
subsection shall be liable for the greater of--
          (1) a civil penalty not to exceed $10,000; or
          (2) the general record keeping penalty that applies 
        under the customs laws of the United States.

           *       *       *       *       *       *       *


SEC. 516A. JUDICIAL REVIEW IN COUNTERVAILING DUTY AND ANTI-DUMPING DUTY 
                    PROCEEDINGS.

  (a) Review of Determination.--
          (1) Review of certain determinations.--Within 30 days 
        after the date of publication in the Federal Register 
        of--
                  (A) a determination by the administering 
                authority, under 702(c) or 732(c) of this Act, 
                not to initiate an investigation,
                  (B) a determination by the Commission, under 
                section 751(b) of this Act, not to review a 
                determination based upon changed circumstances,
                  (C) a negative determination by the 
                Commission, under section 703(a) or 733(a) of 
                this Act, as to whether there is reasonable 
                indication or material injury, threat of 
                material injury, or material retardation, or
                  (D) a final determination by the 
                administering authority or the Commission under 
                section 751(c)(3),
        an interested party who is a party to the proceeding in 
        connection with which the matter arises may commence an 
        action in the United States Court of International 
        Trade by filing concurrently a summons and complaint, 
        each with the content and in the form, manner, and 
        style prescribed by the rules of that court, contesting 
        any factual findings or legal conclusions upon which 
        the determination is based.
          (2) Review of determinations on record.--
                  (A) In general.--Within thirty days after--
                          (i) the date of publication in the 
                        Federal Register of--
                                  (I) notice of any 
                                determination described in 
                                clause (ii), (iii), (iv), (v), 
                                or (viii) of subparagraph (B),
                                  (II) an antidumping or 
                                countervailing duty order based 
                                upon any determination 
                                described in clause (i) of 
                                subparagraph (B), or
                                  (III) notice of the 
                                implementation of any 
                                determination described in 
                                clause (vii) of subparagraph 
                                (B), or
                          (ii) the date of mailing of a 
                        determination described in clause (vi) 
                        of subparagraph (B),
                an interested party who is a party to the 
                proceeding in connection with which the matter 
                arises may commence an action in the United 
                States Court of International Trade by filing a 
                summons, and within thirty days thereafter a 
                complaint, each with the content and in the 
                form, manner, and style prescribed by the rules 
                of that court, contesting any factual findings 
                or legal conclusions upon which the 
                determination is based.
                  (B) Reviewable determinations.--The 
                determinations which may be contested under 
                subparagraph (A) are as follows:
                          (i) Final affirmative determinations 
                        by the administering authority and by 
                        the Commission under section 705 or 735 
                        of this Act, including any negative 
                        part of such a determination (other 
                        than a part referred to in clause 
                        (ii)).
                          (ii) A final negative determination 
                        by the administering authority or the 
                        Commission under section 705 or 735 of 
                        this Act, including, at the option of 
                        the appellant, any part of a final 
                        affirmative determination which 
                        specifically excludes any company or 
                        product.
                          (iii) A final determination, other 
                        than a determination reviewable under 
                        paragraph (1), by the administering 
                        authority or the Commission under 
                        section 751 of this Act.
                          (iv) A determination by the 
                        administering authority, under section 
                        704 or 734 of this Act, to suspend an 
                        antidumping duty or a countervailing 
                        duty investigation, including any final 
                        determination resulting from a 
                        continued investigation which changes 
                        the size of the dumping margin or net 
                        countervailable subsidy calculated, or 
                        the reasoning underlying such 
                        calculations, at the time the 
                        suspension agreement was concluded.
                          (v) An injurious effect determination 
                        by the Commission under section 704(h) 
                        or 734(h) of this Act.
                          (vi) A determination by the 
                        administering authority as to whether a 
                        particular type of merchandise is 
                        within the class or kind of merchandise 
                        described in an existing finding of 
                        dumping or antidumping or 
                        countervailing duty order.
                          (vii) A determination by the 
                        administering authority or the 
                        Commission under section 129 of the 
                        Uruguay Round Agreements Act concerning 
                        a determination under title VII of the 
                        Tariff Act of 1930.
                          (viii) A determination by the 
                        Commission under section 753(a)(1).
          (3) Exception.--Notwithstanding the limitation 
        imposed by paragraph (2)(A)(i)(II) of this subsection, 
        a final affirmative determination by the administering 
        authority under section 705 or 735 of this Act may be 
        contested by commencing an action, in accordance with 
        the provisions of paragraph (2)(A), within thirty days 
        after the date of publication in the Federal Register 
        of a final negative determination by the Commission 
        under section 705 or 735 of this Act.
          (4) Procedures and fees.--The procedures and fees set 
        forth in chapter 169 of title 28, United States Code, 
        apply to an action under this section.
          (5) Time limits in cases involving merchandise from 
        free trade area countries.--Notwithstanding any other 
        provision of this subsection, in the case of a 
        determination to which the provisions of subsection (g) 
        apply, an action under this subsection may not be 
        commenced, and the time limits for commencing an action 
        under this subsection shall not begin to run, until the 
        day specified in whichever of the following 
        subparagraphs applies:
                  (A) For a determination described in 
                paragraph (1)(B) or clause (i), (ii) or (iii) 
                of paragraph (2)(B), the 31st day after the 
                date on which notice of the determination is 
                published in the Federal Register.
                  (B) For a determination described in clause 
                (vi) of paragraph (2)(B), the 31st day after 
                the date on which the government of the 
                relevant FTA country receives notice of the 
                determination.
                  (C) For a determination with respect to which 
                binational panel review has commenced in 
                accordance with subsection (g)(8), the day 
                after the date as of which--
                          (i) the binational panel has 
                        dismissed binational panel review of 
                        the determination for lack of 
                        jurisdiction, and
                          (ii) any interested party seeking 
                        review of the determination under 
                        paragraph (1), (2), or (3) of this 
                        subsection has provided timely notice 
                        under subsection (g)(3)(B).
                If such an interested party files a summons and 
                complaint under this subsection after dismissal 
                by the binational panel, and if a request for 
                an extraordinary challenge committee is made 
                with respect to the decision by the binational 
                panel to dismiss--
                          (I) judicial review under this 
                        subsection shall be stayed during 
                        consideration by the committee of the 
                        request, and
                          (II) the United States Court of 
                        International Trade shall dismiss the 
                        action if the committee vacates or 
                        remands the binational panel decision 
                        to dismiss.
                  (D) For a determination for which review by 
                the United States Court of International Trade 
                is provided for--
                          (i) under subsection (g)(12)(B), the 
                        day after the date of publication in 
                        the Federal Register of notice that 
                        article 1904 of the NAFTA has been 
                        suspended, or
                          (ii) under subsection (g)(12)(D), the 
                        day after the date that notice of 
                        settlement is published in the Federal 
                        Register.
                  (E) For a determination described in clause 
                (vii) of paragraph (2)(B), the 31st day after 
                the date on which notice of the implementation 
                of the determination is published in the 
                Federal Register.
  (b) Standards of Review.--
          (1) Remedy.--The court shall hold unlawful any 
        determination, finding, or conclusion found--
                  (A) in an action brought under subparagraph 
                (A), (B), or (C) of subsection (a)(1), to be 
                arbitrary, capricious, an abuse of discretion, 
                or otherwise not in accordance with law, or
                  (B)(i) in an action brought under paragraph 
                (2) of subsection (a), to be unsupported by 
                substantial evidence on the record, or 
                otherwise not in accordance with law, or
                          (ii) in an action brought under 
                        paragraph (1)(D) of subsection (a), to 
                        be arbitrary, capricious, an abuse of 
                        discretion, or otherwise not in 
                        accordance with law.
          (2) Record for review.--
                  (A) In general.--For the purposes of this 
                subsection, the record, unless otherwise 
                stipulated by the parties, shall consist of--
                          (i) a copy of all information 
                        presented to or obtained by the 
                        Secretary, the administering authority, 
                        or the Commission during the course of 
                        the administrative proceeding, 
                        including all governmental memoranda 
                        pertaining to the case and the record 
                        of ex parte meetings required to be 
                        kept by section 777(a)(3); and
                          (ii) a copy of the determination, all 
                        transcripts or records of conferences 
                        or hearings, and all notices published 
                        in the Federal Register.
                  (B) Confidential or privileged material.--The 
                confidential or privileged status accorded to 
                any documents, comments, or information shall 
                be preserved in any action under this section. 
                Notwithstanding the preceding sentence, the 
                court may examine, in camera, the confidential 
                or privileged material, and may disclose such 
                material under such terms and conditions as it 
                may order.
          (3) Effect of decisions by nafta or united states-
        canada binational panels.--In making a decision in any 
        action brought under subsection (a), a court of the 
        United States is not bound by, but may take into 
        consideration, a final decision of a binational panel 
        or extraordinary challenge committee convened pursuant 
        to article 1904 of the NAFTA or of the Agreement.
  (c) Liquidation of Entries.--
          (1) Liquidation in accordance with determination.--
        Unless such liquidation is enjoined by the court under 
        paragraph (2) of this subsection, entries of 
        merchandise of the character covered by a determination 
        of the Secretary, the administering authority, or the 
        Commission contested under subsection (a) shall be 
        liquidated in accordance with the determination of the 
        Secretary, the administering authority, or the 
        Commission, if they are entered, or withdrawn from 
        warehouse, for consumption on or before the date of 
        publication in the Federal Register by the Secretary or 
        the administering authority of a notice of a decision 
        of the United States Court of International Trade, or 
        of the United States Court of Appeals for the Federal 
        Circuit, not in harmony with that determination. Such 
        notice of a decision shall be published within ten days 
        from the date of the issuance of the court decision.
          (2) Injunctive relief.--In the case of a 
        determination described in paragraph (2) of subsection 
        (a) by the Secretary, the administering authority, or 
        the Commission, the United States Court of 
        International Trade may enjoin the liquidation of some 
        or all entries of merchandise covered by a 
        determination of the Secretary, the administering 
        authority, or the Commission, upon a request by an 
        interested party for such relief and a proper showing 
        that the requested relief should be granted under the 
        circumstances.
          (3) Remand for final disposition.--If the final 
        disposition of an action brought under this section is 
        not in harmony with the published determination of the 
        Secretary, the administering authority, or the 
        Commission, the matter shall be remanded to the 
        Secretary, the administering authority, or the 
        Commission, an appropriate, for disposition consistent 
        with the final disposition of the court.
  (d) Standing.--Any interested party who was a party to the 
proceeding under section 303 of this Act or title VII of this 
Act shall have the right to appear and be heard as a party in 
interest before the United States Court of International Trade. 
The party filing the action shall notify all such interested 
parties of the filing of an action under this section, in the 
form, manner, style, and within the time prescribed by rules of 
the court.
  (e) Liquidation in Accordance With Final Decision.--If the 
cause of action is sustained in whole or in part by a decision 
of the United States Court of International Trade or of the 
United States Court of Appeals for the Federal Circuit--
          (1) entries of merchandise of the character covered 
        by the published determination of the Secretary, the 
        administering authority, or the Commission, which is 
        entered, or withdrawn from warehouse, for consumption 
        after the date of publication in the Federal Register 
        by the Secretary or the administering authority of a 
        notice of the court decision, and
          (2) entries, the liquidation of which was enjoined 
        under subsection (c)(2),
shall be liquidated in accordance with the final court decision 
in the action. Such notice of the court decision shall be 
published within ten days from the date of the issuance of the 
court decision.
  (f) Definitions.--For purposes of this section--
          (1) Administering authority.--The term 
        ``administering authority'' means the administering 
        authority described in section 771(1) of this Act.
          (2) Commission.--The term ``Commission'' means the 
        United States International Trade Commission.
          (3) Interested party.--The term ``interested party'' 
        means any person described in section 771(9) of this 
        Act.
          (4) Secretary.--The term ``Secretary'' means the 
        Secretary of the Treasury.
          (5) Agreement.--The term ``Agreement'' means the 
        United States-Canada Free-Trade Agreement.
          (6) United states secretary.--The term ``United 
        States Secretary'' means--
                  (A) the secretary for the United States 
                Section referred to in article 1908 of the 
                NAFTA, and
                  (B) the secretary of the United States 
                Section provided for in article 1909 of the 
                Agreement.
          (7) Relevant fta secretary.--The term ``relevant FTA 
        Secretary'' means the Secretary--
                  (A) referred to in article 1908 of the NAFTA, 
                or
                  (B) provided for in paragraph 5 of article 
                1909 of the Agreement,
        of the relevant FTA country.
          (8) NAFTA.--The term ``NAFTA'' means the North 
        American Free Trade Agreement.
          (9) Relevant fta country.--The term ``relevant FTA 
        country'' means the free trade area country to which an 
        antidumping or countervailing duty proceeding pertains.
          (10) Free trade area country.--The term ``free trade 
        area country'' means the following:
                  (A) Canada for such time as the NAFTA is in 
                force with respect to, and the United States 
                applies the NAFTA to, Canada.
                  (B) Mexico for such time as the NAFTA is in 
                force with respect to, and the United States 
                applies the NAFTA to, Mexico.
                  (C) Canada for such time as--
                          (i) it is not a free trade area 
                        country under subparagraph (A); and
                          (ii) the Agreement is in force with 
                        respect to, and the United States 
                        applies the Agreement to, Canada.
  (g) Review of Countervailing Duty and Antidumping Duty 
Determinations Involving Free Trade Area Country Merchandise.--
          (1) Definition of determination.--For purposes of 
        this subsection, the term ``determination'' means a 
        determination described in--
                  (A) paragraph (1)(B) of subsection (a), or
                  (B) clause (i), (ii), (iii), (vi), or (vii) 
                or paragraph (2)(B) of subsection (a),
        if made in connection with a proceeding regarding a 
        class or kind of free trade area country merchandise, 
        as determined by the administering authority.
          (2) Exclusive review of determination by binational 
        panels.--If binational panel review of a determination 
        is requested pursuant to article 1904 of the NAFTA or 
        of the Agreement, then, except as provided in 
        paragraphs (3) and (4)--
                  (A) the determination is not reviewable under 
                subsection (a), and
                  (B) no court of the United States has power 
                or jurisdiction to review the determination on 
                any question of law or fact by an action in the 
                nature of mandamus or otherwise.
          (3) Exception to exclusive binational panel review.--
                  (A) In general.--A determination is 
                reviewable under subsection (a) if the 
                determination sought to be reviewed is--
                          (i) a determination as to which 
                        neither the United States nor the 
                        relevant FTA country requested review 
                        by a binational panel pursuant to 
                        article 1904 of the NAFTA or of the 
                        Agreement.
                          (ii) a revised determination issued 
                        as a direct result of judicial review, 
                        commenced pursuant to subsection (a), 
                        if neither the United States nor the 
                        relevant FTA country requested review 
                        of the original determination,
                          (iii) a determination issued as a 
                        direct result of judicial review that 
                        was commenced pursuant to subsection 
                        (a) prior to the entry into force of 
                        the NAFTA or of the Agreement,
                          (iv) a determination which a 
                        binational panel has determined is not 
                        reviewable by the binational panel,
                          (v) a determination as to which 
                        binational panel review has terminated 
                        pursuant to paragraph 12 of article 
                        1905 of the NAFTA, or
                          (vi) a determination as to which 
                        extraordinary challenge committee 
                        review has terminated pursuant to 
                        paragraph 12 of article 1905 of the 
                        NAFTA.
                  (B) Special rule.--A determination described 
                in subparagraph (A)(i) or (iv) is reviewable 
                under subsection (a) of this section only if 
                the party seeking to commence review has 
                provided timely notice of its intent to 
                commence such review to--
                          (i) the United States Secretary and 
                        the relevant FTA Secretary;
                          (ii) all interested parties who were 
                        parties to the proceeding in connection 
                        with which the matter arises; and
                          (iii) the administering authority or 
                        the Commission, as appropriate.
                Such notice is timely provided if the notice is 
                delivered no later than the date that is 20 
                days after the date described in subparagraph 
                (A) or (B) of subsection (a)(5) that is 
                applicable to such determination, except that, 
                if the time for requesting binational panel 
                review is suspended under paragraph (8)(A)(ii) 
                of this subsection, any unexpired time for 
                providing notice of intent to commence judicial 
                review shall, during the pendency of any such 
                suspension, also be suspended. Such notice 
                shall contain such information, and be in such 
                form, manner, and style, as the administering 
                authority, in consultation with the Commission, 
                shall prescribe by regulations.
          (4) Exception to exclusive binational panel review 
        for constitutional issues.--
                  (A) Constitutionality of binational panel 
                review system.--An action for declaratory 
                judgment or injunctive relief, or both, 
                regarding a determination on the grounds that 
                any provision of, or amendment made by, the 
                North American Free Trade Agreement 
                Implementation Act implementing the binational 
                dispute settlement system under chapter 19 of 
                the NAFTA, or the United States-Canada Free-
                Trade Agreement Implementation Act of 1988 
                implementing the binational panel dispute 
                settlement system under chapter 19 of the 
                Agreement, violates the Constitution may be 
                brought only in the United States Court of 
                Appeals for the District of Columbia Circuit, 
                which shall have jurisdiction of such action.
                  (B) Other constitutional review.--Review is 
                available under subsection (a) with respect to 
                a determination solely concerning a 
                constitutional issue (other than an issue to 
                which subparagraph (A) applies) arising under 
                any law of the United States as enacted or 
                applied. An action for review under this 
                subparagraph shall be assigned to a 3-judge 
                panel of the United States Court of 
                International Trade.
                  (C) Commencement of review.--Notwithstanding 
                the time limits in subsection (a), within 30 
                days after the date of publication in the 
                Federal Register of notice that binational 
                panel review has been completed, an interested 
                party who is a party to the proceeding in 
                connection with which the matter arises may 
                commence an action under subparagraph (A) or 
                (B) by filing an action in accordance with the 
                rules of the court.
                  (D) Transfer of actions to appropriate 
                court.--Whenever an action is filed in a court 
                under subparagraph (A) or (B) and that court 
                finds that the action should have been filed in 
                the other court, the court in which the action 
                was filed shall transfer the action to the 
                other court and the action shall proceed as if 
                it had been filed in the court to which it is 
                transferred on the date upon which it was 
                actually filed in the court from which it is 
                transferred.
                  (E) Frivolous claims.--Frivolous claims 
                brought under subparagraph (A) or (B) are 
                subject to dismissal and sanctions as provided 
                under section 1927 of title 28, United States 
                Code, and the Federal Rules of Civil Procedure.
                  (F) Security.--
                          (i) Subparagraph (a) actions.--The 
                        security requirements of rule 65(c) of 
                        the Federal Rules of Civil Procedure 
                        apply with respect to actions commenced 
                        under subparagraph (A).
                          (ii) Subparagraph (b) actions.--No 
                        claim shall be heard, and no temporary 
                        restraining order or temporary or 
                        permanent injunction shall be issued, 
                        under an action commenced under 
                        subparagraph (B), unless the party 
                        seeking review first files an 
                        undertaking with adequate security in 
                        an amount to be fixed by the court 
                        sufficient to recompense parties 
                        affected for any loss, expense, or 
                        damage caused by the improvident or 
                        erroneous issuance of such order or 
                        injunction. If a court upholds the 
                        constitutionality of the determination 
                        in question in such action, the court 
                        shall award to a prevailing party fees 
                        and expenses, in addition to any costs 
                        incurred by that party, unless the 
                        court finds that the position of the 
                        other party was substantially justified 
                        or that special circumstances make an 
                        award unjust.
                  (G) Panel record.--The record of proceedings 
                before the binational panel shall not be 
                considered part of the record for review 
                pursuant to subparagraph (A) or (B).
                  (H) Appeal to supreme court of court orders 
                issued in subparagraph (a) actions.--
                Notwithstanding any other provision of law, any 
                final judgment of the United States Court of 
                Appeals for the District of Columbia Circuit 
                which is issued pursuant to an action brought 
                under subparagraph (A) shall be reviewable by 
                appeal directly to the Supreme Court of the 
                United States. Any such appeal shall be taken 
                by a notice of appeal filed within 10 days 
                after such order is entered; and the 
                jurisdictional statement shall be filed within 
                30 days after such order is entered. No stay of 
                an order issued pursuant to an action brought 
                under subparagraph (A) may be issued by a 
                single Justice of the Supreme Court.
          (5) Liquidation of entries.--
                  (A) Application.--In the case of a 
                determination for which binational panel review 
                is requested pursuant to article 1904 of the 
                NAFTA or of the Agreement, the rules provided 
                in this paragraph shall apply, notwithstanding 
                the provisions of subsection (c).
                  (B) General rule.--In the case of a 
                determination for which binational panel review 
                is requested pursuant to article 1904 of the 
                NAFTA or of the Agreement, entries of 
                merchandise covered by such determination shall 
                be liquidated in accordance with the 
                determination of the administering authority or 
                the Commission, if they are entered, or 
                withdrawn from warehouse, for consumption on or 
                before the date of publication in the Federal 
                Register by the administering authority of 
                notice of a final decision of a binational 
                panel, or of an extraordinary challenge 
                committee, not in harmony with that 
                determination. Such notice of a decision shall 
                be published within 10 days of the date of the 
                issuance of the panel or committee decision.
                  (C) Suspension of liquidation.--
                          (i) In general.--Notwithstanding the 
                        provisions of subparagraph (B), in the 
                        case of a determination described in 
                        clause (iii) or (vi) of subsection 
                        (a)(2)(B) for which binational panel 
                        review is requested pursuant to article 
                        1904 of the NAFTA or of the Agreement, 
                        the administering authority, upon 
                        request of an interested party who was 
                        a party to the proceeding in connection 
                        with which the matter arises and who is 
                        a participant in the binational panel 
                        review, shall order the continued 
                        suspension of liquidation of those 
                        entries of merchandise covered by the 
                        determination that are involved in the 
                        review pending the final disposition of 
                        the review.
                          (ii) Notice.--At the same time as the 
                        interested party makes its request to 
                        the administering authority under 
                        clause (i), that party shall serve a 
                        copy of its request on the United 
                        States Secretary, the relevant FTA 
                        Secretary, and all interested parties 
                        who were parties to the proceeding in 
                        connection with which the matter 
                        arises.
                          (iii) Application of suspension.--If 
                        the interested party requesting 
                        continued suspension of liquidation 
                        under clause (i) is a foreign 
                        manufacturer, producer, or exporter, or 
                        a United States importer, the continued 
                        suspension of liquidation shall apply 
                        only to entries of merchandise 
                        manufactured, produced, exported, or 
                        imported by that particular 
                        manufacturer, producer, exporter, or 
                        importer. If the interested party 
                        requesting the continued suspension of 
                        liquidation under clause (i) is an 
                        interested party described in 
                        subparagraph (C), (D), (E) or (F) of 
                        section 771(9), the continued 
                        suspension of liquidation shall apply 
                        only to entries which could be affected 
                        by a decision of the binational panel 
                        convened under chapter 19 of the NAFTA 
                        or of the Agreement.
                          (iv) Judicial review.--Any action 
                        taken by the administering authority or 
                        the United States Customs Service under 
                        this subparagraph shall not be subject 
                        to judicial review, and no court of the 
                        United States shall have power or 
                        jurisdiction to review such action on 
                        any question of law or fact by an 
                        action in the nature of mandamus or 
                        otherwise.
          (6) Injunctive relief.--Except for cases under 
        paragraph (4)(B), in the case of a determination for 
        which binational panel review is requested pursuant to 
        article 1904 of the NAFTA or of the Agreement, the 
        provisions of subsection (c)(2) shall not apply.
          (7) Implementation of international obligations under 
        article 1904 of the nafta or the agreement.--
                  (A) Action upon remand.--If a determination 
                is referred to a binational panel or 
                extraordinary challenge committee under the 
                NAFTA or the Agreement and the panel or 
                committee makes a decision remanding the 
                determination to the administering authority or 
                the Commission, the administering authority or 
                the Commission shall, within the period 
                specified by the panel or committee, take 
                action not inconsistent with the decision of 
                the panel or committee. Any action taken by the 
                administering authority or the Commission under 
                this paragraph shall not be subject to judicial 
                review, and no court of the United States shall 
                have power or jurisdiction to review such 
                action on any question of law or fact by an 
                action in the nature of mandamus or otherwise.
                  (B) Application if subparagraph (a) held 
                unconstitutional.--In the event that the 
                provisions of subparagraph (A) are held 
                unconstitutional under the provisions of 
                subparagraphs (A) and (H) of paragraph (4), the 
                provisions of this subparagraph shall take 
                effect. In such event, the President is 
                authorized on behalf of the United States to 
                accept, as a whole, the decision of a 
                binational panel or extraordinary challenge 
                committee remanding the determination to the 
                administering authority or the Commission 
                within the period specified by the panel or 
                committee. Upon acceptance by the President of 
                such a decision, the administering authority or 
                the Commission shall, within the period 
                specified by the panel or committee, take 
                action not inconsistent with such decision. Any 
                action taken by the President, the 
                administering authority, or the Commission 
                under this subparagraph shall not be subject to 
                judicial review, and no court of the United 
                States shall have power or jurisdiction to 
                review such action on any question of law or 
                fact by an action in the nature of mandamus or 
                otherwise.
          (8) Requests for binational panel review.--
                  (A) Interested party requests for binational 
                panel review.--
                          (i) General rule.--An interested 
                        party who was a party to the proceeding 
                        in which a determination is made may 
                        request binational panel review of such 
                        determination by filing a request with 
                        the United States Secretary by no later 
                        than the date that is 30 days after the 
                        date described in subparagraph (A), 
                        (B), or (E) of subsection (a)(5) that 
                        is applicable to such determination. 
                        Receipt of such request by the United 
                        States Secretary shall be deemed to be 
                        a request for binational panel review 
                        within the meaning of article 1904(4) 
                        of the NAFTA or of the Agreement. Such 
                        request shall contain such information 
                        and be in such form, manner, and style 
                        as the administering authority, in 
                        consultation with the Commission, shall 
                        prescribe by regulations.
                          (ii) Suspension of time to request 
                        binational panel review under the 
                        nafta.--Notwithstanding clause (i), the 
                        time for requesting binational panel 
                        review shall be suspended during the 
                        pendency of any stay of binational 
                        panel review that is issued pursuant to 
                        paragraph 11(a) of article 1905 of the 
                        NAFTA.
                  (B) Service of request for binational panel 
                review.--
                          (i) Service by interested party.--If 
                        a request for binational panel review 
                        of a determination is filed under 
                        subparagraph (A), the party making the 
                        request shall serve a copy, by mail or 
                        personal service, on any other 
                        interested party who was a party to the 
                        proceeding in connection with which the 
                        matter arises, and on the administering 
                        authority or the Commission, as 
                        appropriate.
                          (ii) Service by united states 
                        secretary.--If an interested party to 
                        the proceeding requests binational 
                        panel review of a determination by 
                        filing a request with the relevant FTA 
                        Secretary, the United States Secretary 
                        shall serve a copy of the request by 
                        mail on any other interested party who 
                        was a party to the proceeding in 
                        connection with which the matter 
                        arises, and on the administering 
                        authority or the Commission, as 
                        appropriate.
                  (C) Limitation on request for binational 
                panel review.--Absent a request by an 
                interested party under subparagraph (A), the 
                United States may not request binational panel 
                review of a determination under article 1904 of 
                the NAFTA or the Agreement.
          (9) Representation in panel proceedings.--In the case 
        of binational panel proceedings convened under chapter 
        19 of the NAFTA or of the Agreement, the administering 
        authority and the Commission shall be represented by 
        attorneys who are employees of the administering 
        authority or the Commission, respectively. Interested 
        parties who were parties to the proceeding in 
        connection with which the matter arises shall have the 
        right to appear and be represented by counsel before 
        the binational panel.
          (10) Notification of class or kind rulings.--In the 
        case of a determination which is described in paragraph 
        (2)(B)(vi) of subsection (a) and which is subject to 
        the provisions of paragraph (2), the administering 
        authority, upon request, shall inform any interested 
        person of the date on which the Government of the 
        relevant FTA country received notice of the 
        determination under paragraph 4 of article 1904 of the 
        NAFTA or the Agreement.
          (11) Suspension and termination of suspension of 
        article 1904 of the nafta.--
                  (A) Suspension of article 1904.--If a special 
                committee established under article 1905 of the 
                NAFTA issues an affirmative finding, the Trade 
                Representative may, in accordance with 
                paragraph 8(a) or 9, as appropriate, of article 
                1905 of the NAFTA, suspend the operation of 
                article 1904 of the NAFTA.
                  (B) Termination of suspension of article 
                1904.--If a special committee is reconvened and 
                makes an affirmative determination described in 
                paragraph 10(b) of article 1905 of the NAFTA, 
                any suspension of the operation of article 1904 
                of the NAFTA shall terminate.
          (12) Judicial review upon termination of binational 
        panel or committee review under the nafta.--
                  (A) Notice of suspension or termination of 
                suspension of article 1904.--
                          (i) Upon notification by the Trade 
                        Representative or the Government of a 
                        country described in subsection 
                        (f)(10)(A) or (B) that the operation of 
                        article 1904 of the NAFTA has been 
                        suspended in accordance with paragraph 
                        8(a) or 9 of article 1905 of the NAFTA, 
                        the United States Secretary shall 
                        publish in the Federal Register a 
                        notice of suspension of article 1904 of 
                        the NAFTA.
                          (ii) Upon notification by the Trade 
                        Representative or the Government of a 
                        country described in subsection 
                        (f)(10)(A) or (B) that the suspension 
                        of the operation of article 1904 of the 
                        NAFTA is terminated in accordance with 
                        paragraph 10 of article 1905 of the 
                        NAFTA, the United States Secretary 
                        shall publish in the Federal Register a 
                        notice of termination of suspension of 
                        article 1904 of the NAFTA.
                  (B) Transfer of final determinations for 
                judicial review upon suspension of article 
                1904.--If the operation of article 1904 of the 
                NAFTA is suspended in accordance with paragraph 
                8(a) or 9 of article 1905 of the NAFTA--
                          (i) upon the request of an authorized 
                        person described in subparagraph (C), 
                        any final determination that is the 
                        subject of a binational panel review or 
                        an extraordinary challenge committee 
                        review shall be transferred to the 
                        United States Court of International 
                        Trade (in accordance with rules issued 
                        by the Court) for review under 
                        subsection (a); or
                          (ii) in a case in which--
                                  (I) a binational panel review 
                                was completed fewer than 30 
                                days before the suspension, and
                                  (II) extraordinary challenge 
                                committee review has not been 
                                requested,
                        upon the request of an authorized 
                        person described in subparagraph (C) 
                        which is made within 60 days after the 
                        completion of the binational panel 
                        review, the final determination that 
                        was the subject of the binational panel 
                        review shall be transferred to the 
                        United States Court of International 
                        Trade (in accordance with rules issued 
                        by the Court) for review under 
                        subsection (a).
                  (C) Persons authorized to request transfer of 
                final determinations for judicial review.--A 
                request that a final determination be 
                transferred to the Court of International Trade 
                under subparagraph (B) may be made by--
                          (i) if the United States made an 
                        allegation under paragraph 1 of article 
                        1905 of the NAFTA and the operation of 
                        article 1904 of the NAFTA was suspended 
                        pursuant to paragraph 8(a) of article 
                        1905 of the NAFTA--
                                  (I) the government of the 
                                relevant country described in 
                                subsection (f)(10)(A) or (B),
                                  (II) an interested party that 
                                was a party to the panel or 
                                committee review, or
                                  (III) an interested party 
                                that was a party to the 
                                proceeding in connection with 
                                which panel review was 
                                requested, but only if the time 
                                period for filing notices of 
                                appearance in the panel review 
                                has not expired, or
                          (ii) if a country described in 
                        subsection (f)(10)(A) or (B) made an 
                        allegation under paragraph 1 of article 
                        1905 of the NAFTA and the operation of 
                        article 1904 of the NAFTA was suspended 
                        pursuant to paragraph 9 of article 1905 
                        of the NAFTA--
                                  (I) the government of that 
                                country,
                                  (II) an interested party that 
                                is a person of that country and 
                                that was a party to the panel 
                                or committee review, or
                                  (III) an interested party 
                                that is a person of that 
                                country and that was a party to 
                                the proceeding in connection 
                                with which panel review was 
                                requested, but only if the time 
                                period for filing notices of 
                                appearance in the panel review 
                                has not expired.
                  (D) Transfer for judicial review upon 
                settlement.--(i) If the Trade Representative 
                achieves a settlement with the government of a 
                country described in subsection (f)(10)(A) or 
                (B) pursuant to paragraph 7 of article 1905 of 
                the NAFTA, and referral for judicial review is 
                among the terms of such settlement, any final 
                determination that is the subject of a 
                binational panel review or an extraordinary 
                challenge committee review shall, upon a 
                request described in clause (ii), be 
                transferred to the United States Court of 
                International Trade (in accordance with rules 
                issued by the Court) for review under 
                subsection (a).
                  (ii) A request referred to in clause (i) is a 
                request made by--
                          (I) the country referred to in clause 
                        (i),
                          (II) an interested party that was a 
                        party to the panel or committee review, 
                        or
                          (III) an interested party that was a 
                        party to the proceeding in connection 
                        with which panel review was requested, 
                        but only if the time for filing notices 
                        of appearance in the panel review has 
                        not expired.

           *       *       *       *       *       *       *


Part V--Enforcement Provisions

           *       *       *       *       *       *       *



SEC. 596. AIDING UNLAWFUL IMPORTATION.

  (a) Except as specified in subsection (b) or (c) of section 
594 of this Act, every vessel, vehicle, animal, aircraft, or 
other thing used in, to aid in, or to facilitate, by obtaining 
information or in any other way, the importation, bringing in, 
unlading, landing, removal, concealing, harboring, or 
subsequent transportation of any article which is being or has 
been introduced, or attempted to be introduced, into the United 
States contrary to law, whether upon such vessel, vehicle, 
animal, aircraft, or other thing or otherwise, may be seized 
and forfeited together with its tackle, apparel, furniture, 
harness, or equipment.
  (b) Every person who directs, assists financially or 
otherwise, or is in any way concerned in any unlawful activity 
mentioned in the preceding subsection shall be liable to a 
penalty equal to the value of the article or articles 
introduced or attempted to be introduced.
  (c) Merchandise which is introduced or attempted to be 
introduced into the United States contrary to law shall be 
treated as follows:
          (1) The merchandise shall be seized and forfeited if 
        it--
                  (A) is stolen, smuggled, or clandestinely 
                imported or introduced;
                  (B) is a controlled substance, as defined in 
                the Controlled Substances Act (21 U.S.C. 801 et 
                seq.), and is not imported in accordance with 
                applicable law;
                  (C) is a contraband article, as defined in 
                section 1 of the Act of August 9, 1939 (49 
                U.S.C. App. 781); or
                  (D) is a plastic explosive, as defined in 
                section 841(q) of title 18, United States Code, 
                which does not contain a detection agent, as 
                defined in section 841(p) of such title.
          (2) The merchandise may be seized and forfeited if--
                  (A) its importation or entry is subject to 
                any restriction or prohibition which is imposed 
                by law relating to health, safety, or 
                conservation and the merchandise is not in 
                compliance with the applicable rule, 
                regulation, or statute;
                  (B) its importation or entry requires a 
                license, permit or other authorization of an 
                agency of the United States Government and the 
                merchandise is not accompanied by such license, 
                permit, or authorization;
                  (C) it is merchandise or packaging in which 
                copyright, trademark, or trade name protection 
                violations are involved (including, but not 
                limited to, violations of section 42, 43, or 45 
                of the Act of July 5, 1946 (15 U.S.C. 1124, 
                1125, or 1127), section 506 or 509 of title 17, 
                United States Code, or section 2318 or 2320 of 
                title 18, United States Code);
                  (D) it is trade dress merchandise involved in 
                the violation of a court order citing section 
                43 of such Act of July 5, 1946 (15 U.S.C. 
                1125);
                  (E) it is merchandise which is marked 
                intentionally in violation of section 304; or
                  (F) it is merchandise for which the importer 
                has received written notices that previous 
                importations of identical merchandise from the 
                same supplier were found to have been marked in 
                violation of section 304.
          (3) If the importation or entry of the merchandise is 
        subject to quantitative restrictions requiring a visa, 
        permit, license, or other similar document, or stamp 
        from the United States Government or from a foreign 
        government or issuing authority pursuant to a bilateral 
        or multilateral agreement, the merchandise shall be 
        subject to detention in accordance with section 499 
        unless the appropriate visa, license, permit, or 
        similar document or stamp is presented to the Customs 
        Service; but if the visa, permit, license, or similar 
        document or stamp which is presented in connection with 
        the importation or entry of the merchandise is 
        counterfeit, the merchandise may be seized and 
        forfeited.
          (4) If the merchandise is imported or introduced 
        contrary to a provision of law which governs the 
        classification of value of merchandise and there are no 
        issues as to the admissibility of the merchandise into 
        the United States, it shall not be seized except in 
        accordance with section 592.
          (5) In any case where the seizure and forfeiture of 
        merchandise are required or authorized by this section, 
        the Secretary may--
                  (A) remit the forfeiture under section 618, 
                or
                  (B) permit the exportation of the 
                merchandise, unless its release would adversely 
                affect health, safety, or conservation or be in 
                contravention of a bilateral or multilateral 
                agreement or treaty.
  (d) Merchandise exported or sent from the United States or 
attempted to be exported or sent from the United States 
contrary to law, or the proceeds or value thereof, and property 
used to facilitate the exporting or sending of such 
merchandise, the attempted exporting or sending of such 
merchandise, or the receipt, purchase, transportation, 
concealment, or sale of such merchandise prior to exportation 
shall be seized and forfeited to the United States.

           *       *       *       *       *       *       *


                   Part VI--Miscellaneous Provisions


SEC. 641. CUSTOMS BROKERS.

  (a) Definitions.--As used in this section:
          (1) The term ``customs broker'' means any person 
        granted a customs broker's license by the Secretary 
        under subsection (b).
          (2) The term ``customs business'' means those 
        activities involving transaction with the Customs 
        Service concerning the entry and admissibility of 
        merchandise, its classification and valuation, the 
        payment of duties, taxes, or other charges assessed or 
        collected by the Customs Service upon merchandise by 
        reason of its importation, or the refund, rebate, or 
        drawback thereof. It also includes the preparation of 
        documents or forms in any format and the electronic 
        transmission of documents, invoices, bills, or parts 
        thereof, intended to be filed with the Customs Service 
        in furtherance of such activities, whether or not 
        signed or filed by the preparer, or activities relating 
        to such preparation, but does not include the mere 
        electronic transmission of data received for 
        transmission to Customs.
          (3) The term ``Secretary'' means the Secretary of the 
        Treasury.
  (b) Custom Broker's Licenses.--
          (1) In general.--No person may conduct customs 
        business (other than solely on behalf of that person) 
        unless that person holds a valid customs broker's 
        license issued by the Secretary under paragraph (2) or 
        (3).
          (2) Licenses for individuals.--The Secretary may 
        grant an individual a customs broker's license only if 
        that individual is a citizen of the United States. 
        Before granting the license, the Secretary may require 
        an applicant to show any facts deemed necessary to 
        establish that the applicant is of good moral character 
        and qualified to render valuable service to others in 
        the conduct of customs business. In assessing the 
        qualifications of an applicant, the Secretary may 
        conduct an examination to determine the applicant's 
        knowledge of customs and related laws, regulations and 
        procedures, bookkeeping, accounting, and all other 
        appropriate matters.
          (3) Licenses for corporations, etc.--The Secretary 
        may grant a customs broker's license to any 
        corporation, association, or partnership that is 
        organized or existing under the laws of any of the 
        several States of the United States if at least one 
        officer of the corporation or association, or one 
        member of the partnership, holds a valid customs 
        broker's license granted under paragraph (2).
          (4) Duties.--A customs broker shall exercise 
        responsible supervision and control over the customs 
        business that it conducts.
          (5) Lapse of license.--The failure of a customs 
        broker that is licensed as a corporation, association, 
        or partnership under paragraph (3) to have, for any 
        continuous period of 120 days, at least one officer of 
        the corporation or association, or at least one member 
        of the partnership, validly licensed under paragraph 
        (2) shall, in addition to causing the broker to be 
        subject to any other sanction under this section 
        (including paragraph (6)), result in the revocation by 
        operation of law of its license.
          (6) Prohibited acts.--Any person who intentionally 
        transacts customs business, other than solely on the 
        behalf of that person, without holding a valid customs 
        broker's license granted to that person under this 
        subsection shall be liable to the United States for a 
        monetary penalty not to exceed $10,000 for each such 
        transaction as well as for each violation of any other 
        provision of this section. This penalty shall be 
        assessed in the same manner and under the same 
        procedures as the monetary penalties provided for in 
        subsection (d)(2)(A).
  (c) Customs Broker's Permits.--
          (1) In general.--Each person granted a customs 
        broker's license under subsection (b) shall be issued, 
        in accordance with such regulations as the Secretary 
        shall prescribe, either or both of the following:
                  (A) A national permit for the conduct of such 
                customs business as the Secretary prescribes by 
                regulation.
                  (B) A permit for each customs district in 
                which that person conducts customs business 
                and, except as provided in paragraph (2), 
                regularly employs at least 1 individual who is 
                licensed under subsection (b)(2) to exercise 
                responsible supervision and control over the 
                customs business conducted by that person in 
                that district.
          (2) Exception.--If a person granted a customs 
        broker's license under subsection (b) can demonstrate 
        to the satisfaction of the Secretary that--
                  (A) he regularly employs in the region in 
                which that district is located at least one 
                individual who is licensed under subsection 
                (b)(2), and
                  (B) that sufficient procedures exist within 
                the company for the person employed in that 
                region to exercise responsible supervision and 
                control over the customs business conducted by 
                that person in that district,
        the Secretary may waive the requirement in paragraph 
        (1)(B).
          (3) Lapse of permit.--The failure of a customs broker 
        granted a permit under paragraph (1) to employ, for any 
        continuous period of 180 days, at least one individual 
        who is licensed under subsection (b)(2) within the 
        district or region (if paragraph (2) applies) for which 
        a permit was issued shall, in addition to causing the 
        broker to be subject to any other sanction under this 
        section (including any in subsection (d)), result in 
        the revocation by operation of law of the permit.
          (4) Appointment of subagents.--Notwithstanding 
        subsection (c)(1), upon the implementation by the 
        Secretary under section 413(b)(2) of the component of 
        the National Customs Automation Program referred to in 
        section 411(a)(2)(B), a licensed broker may appoint 
        another licensed broker holding a permit in a customs 
        district to act on its behalf as its subagent in that 
        district if such activity relates to the filing of 
        information that is permitted by law or regulation to 
        be filed electronically. A licensed broker appointing a 
        subagent pursuant to this paragraph shall remain liable 
        for any and all obligations arising under bond and any 
        and all duties, taxes, and fees, as well as any other 
        liabilities imposed by law, and shall be precluded from 
        delegating to a subagent such liability.
  (d) Disciplinary Proceedings.--
          (1) General rule.--The Secretary may impose a 
        monetary penalty in all cases with the exception of the 
        infractions described in clause (iii) of subparagraph 
        (B) of this subsection, or revoke or suspend a license 
        or permit of any customs broker, if it is shown that 
        the broker--
                  (A) has made or caused to be made in any 
                application for any license or permit under 
                this section, or report filed with the Customs 
                Service, any statement which was, at the time 
                and in light of the circumstances under which 
                it was made, false or misleading with respect 
                to any material fact, or has omitted to state 
                in any such application or report any material 
                fact which was required to be stated therein;
                  (B) has been convicted at any time after the 
                filing of an application for license under 
                subsection (b) of any felony or misdemeanor 
                which the Secretary finds--
                          (i) involved the importation or 
                        exportation of merchandise;
                          (ii) arose out of the conduct of its 
                        customs business; or
                          (iii) involved larceny, theft, 
                        robbery, extortion, forgery, 
                        counterfeiting, fraudulent concealment, 
                        embezzlement, fraudulent conversion, or 
                        misappropriation of funds;
                  (C) has violated any provision of any law 
                enforced by the Customs Service or the rules or 
                regulations issued under any such provision;
                  (D) has counseled, commanded, induced, 
                procured, or knowingly aided or abetted the 
                violations by any other person of any provision 
                of any law enforced by the Customs Service, or 
                the rules or regulations issued under any such 
                provision;
                  (E) has knowingly employed, or continues to 
                employ, any person who has been convicted of a 
                felony, without written approval of such 
                employment from the Secretary; or
                  (F) has, in the course of its customs 
                business, with intent to defraud, in any manner 
                willfully and knowingly deceived, misled or 
                threatened any client or prospective client.
          (2) Procedures.--
                  (A) Monetary penalty.--Unless action has been 
                taken under subparagraph (B), the appropriate 
                customs officer shall serve notice in writing 
                upon any customs broker to show cause why the 
                broker should not be subject to a monetary 
                penalty not to exceed $30,000 in total for a 
                violation or violations of this section. The 
                notice shall advise the customs broker of the 
                allegations or complaints against him and shall 
                explain that the broker has a right to respond 
                to the allegations or complaints in writing 
                within 30 days of the date of the notice. 
                Before imposing a monetary penalty, the customs 
                officer shall consider the allegations or 
                complaints and any timely response made by the 
                customs broker and issue a written decision. A 
                customs broker against whom a monetary penalty 
                has been issued under this section shall have a 
                reasonable opportunity under section 618 to 
                make representations seeking remission or 
                mitigation of the monetary penalty. Following 
                the conclusion of any proceeding under section 
                618, the appropriate customs officer shall 
                provide to the customs broker a written 
                statement which sets forth the final 
                determination and the findings of fact and 
                conclusions of law on which such determination 
                is based.
                  (B) Revocation or suspension.--The Customs 
                Service may, for good and sufficient reason, 
                serve notice in writing upon any customs broker 
                to show cause why a license or permit issued 
                under this section should not be revoked or 
                suspended. The notice shall be in the form of a 
                statement specifically setting forth the 
                grounds of the complaint, and shall allow the 
                customs broker 30 days to respond. If no 
                response is filed, or the Customs Service 
                determines that the revocation or suspension is 
                still warranted, it shall notify the customs 
                broker in writing of a hearing to be held 
                within 30 days, or at a later date if the 
                broker requests an extension and shows good 
                cause therefor, before an administrative law 
                judge appointed pursuant to section 3105 of 
                title 5, United States Code, who shall serve as 
                the hearing officer. If the customs broker 
                waives the hearing, or the broker or his 
                designated representative fails to appear at 
                the appointed time and place, the hearing 
                officer shall make findings and recommendations 
                based on the record submitted by the parties. 
                At the hearing, the customs broker may be 
                represented by counsel, and all proceedings, 
                including the proof of the charges and the 
                response thereto shall be presented with 
                testimony taken under oath and the right of 
                cross-examination accorded to both parties. A 
                transcript of the hearing shall be made and a 
                copy will be provided to the Customs Service 
                and the customs broker; which shall thereafter 
                be provided reasonable opportunity to file a 
                post-hearing brief. Following the conclusion of 
                the hearing, the hearing officer shall transmit 
                promptly the record of the hearing along with 
                the findings of fact and recommendations to the 
                Secretary for decision. The Secretary will 
                issue a written decision, based solely on the 
                record, setting forth the findings of fact and 
                the reasons for the decision. Such decision may 
                provide for the sanction contained in the 
                notice to show cause or any lesser sanction 
                authorized by this subsection, including a 
                monetary penalty not to exceed $30,000, then 
                was contained in the notice to show cause.
          (3) Settlement and compromise.--The Secretary may 
        settle and compromise any disciplinary proceeding which 
        has been instituted under this subsection according to 
        the terms and conditions agreed to by the parties, 
        including but not limited to the reduction of any 
        proposed suspension or revocation to a monetary 
        penalty.
          (4) Limitation of actions.--Notwithstanding section 
        621, no proceeding under this subsection or subsection 
        (b)(6) shall be commenced unless such proceeding is 
        instituted by the appropriate service of written notice 
        within 5 years from the date the alleged violation was 
        committed; except that if the alleged violation 
        consists of fraud, the 5-year period of limitation 
        shall commence running from the time such alleged 
        violation was discovered.
  (e) Judicial Appeal.--
          (1) In general.--A customs broker, applicant, or 
        other person directly affected may appeal any decision 
        of the Secretary denying or revoking a license or 
        permit under subsection (b) or (c), or revoking or 
        suspending a license or permit or imposing a monetary 
        penalty in lieu thereof under subsection (d)(2)(B), by 
        filing in the Court of International Trade, within 60 
        days after the issuance of the decision or order, a 
        written petition requesting that the decision or order 
        be modified or set aside in whole or in part. A copy of 
        the petition shall be transmitted promptly by the clerk 
        of the court to the Secretary or his designee. In cases 
        involving revocation or suspension of a license or 
        permit or imposition of a monetary penalty in lieu 
        thereof under subsection (d)(2)(B), after receipt of 
        the petition, the Secretary shall file in court the 
        record upon which the decision or order complained of 
        was entered, a provided in section 2635(d) of title 28, 
        United States Code.
          (2) Consideration of objections.--The court shall not 
        consider any objection to the decision or order of the 
        Secretary, or to the introduction of evidence or 
        testimony, unless that objection was raised before the 
        hearing officer in suspension or revocation proceedings 
        unless there were reasonable grounds for failure to do 
        so.
          (3) Conclusiveness of findings.--The findings of the 
        Secretary as to the facts, if supported by substantial 
        evidence, shall be conclusive.
          (4) Additional evidence.--If any party applies to the 
        court for leave to present additional evidence and the 
        court is satisfied that the additional evidence is 
        material and that reasonable grounds existed for the 
        failure to present the evidence in the proceedings 
        before the hearing officer, the court may order the 
        additional evidence to be taken before the hearing 
        officer and to be presented in a manner and upon the 
        terms and conditions prescribed in a manner and upon 
        the terms and conditions prescribed by the court. The 
        Secretary may modify the findings of facts on the basis 
        of the additional evidence presented. The Secretary 
        shall then file with the court any new or modified 
        findings of fact which shall be conclusive if supported 
        by substantial evidence, together with a 
        recommendation, if any, for the modification or setting 
        aside of the original decision or order.
          (5) Effect of proceedings.--The commencement of 
        proceedings under this subsection shall, unless 
        specifically ordered by the court, operate as a stay of 
        the decision of the Secretary except in the case of a 
        denial of a license or permit.
          (6) Failure to appeal.--If an appeal is not filed 
        within the time limits specified in this section, the 
        decision by the Secretary shall be final and 
        conclusive. In the case of a monetary penalty imposed 
        under subsection (d)(2)(B) of this section, if the 
        amount is not tendered within 60 days after the 
        decision becomes final, the license shall automatically 
        be suspended until payment is made to the Customs 
        Service.
  (f) Regulations by the Secretary.--The Secretary may 
prescribe such rules and regulations relating to the customs 
business of customs brokers as the Secretary considers 
necessary to protect importers and the revenue of the United 
States, and to carry out the provisions of this section, 
including rules and regulations governing the licensing of or 
issuance of permits to customs brokers, the keeping of books, 
accounts, and records by customs brokers, and documents and 
correspondence, and the furnishing by customs brokers of any 
other information relating to their customs business to any 
duly accredited officer or employee of the Customs Service. The 
Secretary may not prohibit customs brokers from limiting their 
liability to other persons in the conduct of customs business. 
For purposes of this subsection or any other provision of this 
Act pertaining to recordkeeping, all data required to be 
retained by a customs broker may be kept on microfilm, optical 
disc, magnetic tapes, disks or drums, video files or any other 
electrically generated medium. Pursuant to such regulations as 
the Secretary shall prescribe, the conversion of data to such 
storage medium may be accomplished at any time subsequent to 
the relevant customs transaction and the data may be retained 
in a centralized basis according to such broker's business 
system.
  (g) Triennial Reports by Customs Brokers.--
          (1) In general.--On February 1, 1985, and on February 
        1 of each third year thereafter, each person who is 
        licensed under subsection (b) shall file with the 
        Secretary of the Treasury a report as to--
                  (A) whether such person is actively engaged 
                in business as a customs broker; and
                  (B) the name under, and the address at, which 
                such business is being transacted.
          (2) Suspension and revocation.--If a person licensed 
        under subsection (b) fails to file the required report 
        by March 1 of the reporting year, the license is 
        suspended, and may be thereafter revoked subject to the 
        following procedures:
                  (A) The Secretary shall transmit written 
                notice of suspension to the licensee no later 
                than March 31 of the reporting year.
                  (B) If the licensee files the required report 
                within 60 days of receipt of the Secretary's 
                notice, the license shall be reinstated.
                  (C) In the event the required report is not 
                filed within the 60-day period, the license 
                shall be revoked without prejudice to the 
                filing of an application for a new license.
  (h) Fees and Charges.--The Secretary may prescribe reasonable 
fees and charges to defray the costs of the Customs Service in 
carrying out the provisions of this section, including, but not 
limited to, a fee for licenses issued under subsection (b) and 
fees for any test administered by him or under his direction; 
except that no separate fees shall be imposed to defray the 
costs of an individual audit or of individual disciplinary 
proceedings of any nature.

           *       *       *       *       *       *       *


TITLE VII--COUNTERVAILING AND ANTIDUMPING DUTIES

           *       *       *       *       *       *       *



        Subtitle C--Reviews; Other Actions Regarding Agreements


     CHAPTER 1--REVIEW OF AMOUNT OF DUTY AND AGREEMENTS OTHER THAN 
                  QUANTITATIVE RESTRICTION AGREEMENTS


SEC. 751. ADMINISTRATIVE REVIEW OF DETERMINATIONS.

  (a) Periodic Review of Amount of Duty.--
          (1) In general.--At least once during each 12-month 
        period beginning on the anniversary of the date of 
        publication of a countervailing duty order under this 
        title or under section 303 of this Act, an antidumping 
        duty order under this title or a finding under the 
        Antidumping Act, 1921, or a notice of the suspension of 
        an investigation, the administering authority, if a 
        request for such a review has been received and after 
        publication of notice of such review in the Federal 
        Register, shall--
                  (A) review and determine the amount of any 
                net countervailable subsidy,
                  (B) review, and determine (in accordance with 
                paragraph (2)), the amount of any antidumping 
                duty, and
                  (C) review the current status of, and 
                compliance with, any agreement by reason of 
                which an investigation was suspended, and 
                review the amount of any net countervailable 
                subsidy or dumping margin involved in the 
                agreement,
        and shall publish in the Federal Register the results 
        of such review, together with notice of any duty to be 
        assessed, estimated duty to be deposited, or 
        investigation to be resumed.
          (2) Determination of antidumping duties.--
                  (A) In general.--For the purpose of paragraph 
                (1)(B), the administering authority shall 
                determine--
                          (i) the normal value and export price 
                        (or constructed export price) of each 
                        entry of the subject merchandise, and
                          (ii) the dumping margin for each such 
                        entry.
                  (B) Determination of antidumping or 
                countervailing duties for new exporters and 
                producers.--
                          (i) In general.--If the administering 
                        authority receives a request from an 
                        exporter or producer of the subject 
                        merchandise establishing that--
                                  (I) such exporter or producer 
                                did not export the merchandise 
                                that was the subject of an 
                                antidumping duty or 
                                countervailing duty order to 
                                the United States (or, in the 
                                case of a regional industry, 
                                did not export the subject 
                                merchandise for sale in the 
                                region concerned) during the 
                                period of investigation, and
                                  (II) such exporter or 
                                producer is not affiliated 
                                (within the meaning of section 
                                771(33)) with any exporter or 
                                producer who exported the 
                                subject merchandise to the 
                                United States (or in the case 
                                of a regional industry, who 
                                exported the subject 
                                merchandise for sale in the 
                                region concerned) during that 
                                period,
                        the administering authority shall 
                        conduct a review under this subsection 
                        to establish an individual weighted 
                        average dumping margin or an individual 
                        countervailing duty rate (as the case 
                        may be) for such exporter or producer.
                          (ii) Time for review under clause 
                        (i).--The administering authority shall 
                        commence a review under clause (i) in 
                        the calendar month beginning after--
                                  (I) the end of the 6-month 
                                period beginning on the date of 
                                the countervailing duty or 
                                antidumping duty order under 
                                review, or
                                  (II) the end of any 6-month 
                                period occurring thereafter,
                        if the request for the review is made 
                        during that 6-month period.
                          (iii) Posting bond or security.--The 
                        administering authority shall, at the 
                        time a review under this subparagraph 
                        is initiated, direct the Customs 
                        Service to allow, at the option of the 
                        importer, the posting, until the 
                        completion of the review, of a bond or 
                        security in lieu of a cash deposit for 
                        each entry of the subject merchandise.
                          (iv) Time limits.--The administering 
                        authority shall make a preliminary 
                        determination in a review conducted 
                        under this subparagraph within 180 days 
                        after the date on which the review is 
                        initiated, and a final determination 
                        within 90 days after the date the 
                        preliminary determination is issued, 
                        except that if the administering 
                        authority concludes that the case is 
                        extraordinarily complicated, it may 
                        extend the 180-day period to 300 days 
                        and may extend the 90-day period to 150 
                        days.
                  (C) Results of determinations.--The 
                determination under this paragraph shall be the 
                basis for the assessment of countervailing or 
                antidumping duties on entries of merchandise 
                covered by the determination and for deposits 
                of estimated duties.
          (3) Time limits.--
                  (A) Preliminary and final determinations.--
                The administering authority shall make a 
                preliminary determination under subparagraph 
                (A), (B), or (C) of paragraph (1) within 245 
                days after the last day of the month in which 
                occurs the anniversary of the date of 
                publication of the order, finding, or 
                suspension agreement for which the review under 
                paragraph (1) is requested, and a final 
                determination under paragraph (1) within 120 
                days after the date on which the preliminary 
                determination is published. If it is not 
                practicable to complete the review within the 
                foregoing time, the administering authority may 
                extend that 245-day period to 365 days and may 
                extend that 120-day period to 180 days. The 
                administering authority may extend the time for 
                making a final determination without extending 
                the time for making a preliminary 
                determination, if such final determination is 
                made not later than 300 days after the date on 
                which the preliminary determination is 
                published.
                  (B) Liquidation of entries.--If the 
                administering authority orders any liquidation 
                of entries pursuant to a review under paragraph 
                (1), such liquidation shall be made promptly 
                and, to the greatest extent practicable, within 
                90 days after the instructions to Customs are 
                issued. In any case in which liquidation has 
                not occurred within that 90-day period, the 
                Secretary of the Treasury shall, upon the 
                request of the affected party, provide an 
                explanation thereof.
                  (C) Effect of pending review under section 
                516a.--In a case in which a final determination 
                under paragraph (1) is under review under 
                section 516A and a liquidation of entries 
                covered by the determination is enjoined under 
                section 516A(c)(2) or suspended under section 
                516A(g)(5)(C), the administering authority 
                shall, within 10 days after the final 
                disposition of the review under section 516A, 
                transmit to the Federal Register for 
                publication the final disposition and issue 
                instructions to the Customs Service with 
                respect to the liquidation of entries pursuant 
                to the review. In such a case, the 90-day 
                period referred to in subparagraph (B) shall 
                begin on the day on which the administering 
                authority issues such instructions.
          (4) Absorption of antidumping duties.--During any 
        review under this subsection initiated 2 years or 4 
        years after the publication of an antidumping duty 
        order under section 736(a), the administering 
        authority, if requested, shall determine whether 
        antidumping duties have been absorbed by a foreign 
        producer or exporter subject to the order if the 
        subject merchandise is sold in the United States 
        through an importer who is affiliated with such foreign 
        producer or exporter. The administering authority shall 
        notify the Commission of its findings regarding such 
        duty absorption for the Commission to consider in 
        conducting a review under subsection (c).
  (b) Reviews Based on Changed Circumstances.--
          (1) In general.--Whenever the administering authority 
        or the Commission receives information concerning, or a 
        request from an interested party for a review of--
                  (A) a final affirmative determination that 
                resulted in an antidumping duty order under 
                this title or a finding under the Antidumping 
                Act, 1921, or in a countervailing duty order 
                under this title or section 303,
                  (B) a suspension agreement accepted under 
                section 704 or 734, or
                  (C) a final affirmative determination 
                resulting from an investigation continued 
                pursuant to section 704(g) or 734(g),
        which shows changed circumstances sufficient to warrant 
        a review of such determination or agreement, the 
        administering authority or the Commission (as the case 
        may be) shall conduct a review of the determination or 
        agreement after publishing notice of the review in the 
        Federal Register.
          (2) Commission review.--In conducting a review under 
        this subsection, the Commission shall--
                  (A) in the case of a countervailing duty 
                order or antidumping duty order or finding, 
                determine whether revocation of the order or 
                finding is likely to lead to continuation or 
                recurrence of material injury,
                  (B) in the case of a determination made 
                pursuant to section 704(h)(2) or 734(h)(2), 
                determine whether the suspension agreement 
                continues to eliminate completely the injurious 
                effects of imports of the subject merchandise, 
                and
                  (C) in the case of an affirmative 
                determination resulting from an investigation 
                continued under section 704(g) or 734(g), 
                determine whether termination of the suspended 
                investigation is likely to lead to continuation 
                or recurrence of material injury.
          (3) Burden of persuasion.--During a review conducted 
        by the Commission under this subsection--
                  (A) the party seeking revocation of an order 
                or finding described in paragraph (1)(A) shall 
                have the burden of persuasion with respect to 
                whether there are changed circumstances 
                sufficient to warrant such revocation, and
                  (B) the party seeking termination of a 
                suspended investigation or a suspension 
                agreement shall have the burden of persuasion 
                with respect to whether there are changed 
                circumstances sufficient to warrant such 
                termination.
          (4) Limitation on period for review.--In the absence 
        of good cause shown--
                  (A) the Commission may not review a 
                determination made under section 705(b) or 
                735(b), or an investigation suspended under 
                section 704 or 734, and
                  (B) the administering authority may not 
                review a determination made under section 
                705(a) or 735(a), or an investigation suspended 
                under section 704 or 734,
        less than 24 months after the date of publication of 
        notice of that determination or suspension.
  (c) Five-Year Review.--
          (1) In general.--Notwithstanding subsection (b) and 
        except in the case of a transition order defined in 
        paragraph (6), 5 years after the date of publication 
        of--
                  (A) a countervailing duty order (other than a 
                countervailing duty order to which subparagraph 
                (B) applies or which was issued without an 
                affirmative determination of injury by the 
                Commission under section 303), an antidumping 
                duty order, or a notice of suspension of an 
                investigation, described in subsection (a)(1),
                  (B) a notice of injury determination under 
                section 753 with respect to a countervailing 
                duty order, or
                  (C) a determination under this section to 
                continue an order or suspension agreement,
        the administering authority and the Commission shall 
        conduct a review to determine, in accordance with 
        section 752, whether revocation of the countervailing 
        or antidumping duty order or termination of the 
        investigation suspended under section 704 or 734 would 
        be likely to lead to continuation or recurrence of 
        dumping or a countervailable subsidy (as the case may 
        be) and of material injury.
          (2) Notice of initiation of review.--Not later than 
        30 days before the fifth anniversary of the date 
        described in paragraph (1), the administering authority 
        shall publish in the Federal Register a notice of 
        initiation of a review under this subsection and 
        request that interested parties submit--
                  (A) a statement expressing their willingness 
                to participate in the review by providing 
                information requested by the administering 
                authority and the Commission,
                  (B) a statement regarding the likely effects 
                of revocation of the order or termination of 
                the suspended investigation, and
                  (C) such other information or industry data 
                as the administering authority or the 
                Commission may specify.
          (3) Responses to notice of initiation.--
                  (A) No response.--If no interested party 
                responds to the notice of initiation under this 
                subsection, the administering authority shall 
                issue a final determination, within 90 days 
                after the initiation of a review, revoking the 
                order or terminating the suspended 
                investigation to which such notice relates. For 
                purposes of this paragraph, an interested party 
                means a party described in section 771(9) (C), 
                (D), (E), (F), or (G).
                  (B) Inadequate response.--If interested 
                parties provide inadequate responses to a 
                notice of initiation, the administering 
                authority, within 120 days after the initiation 
                of the review, or the Commission, within 150 
                days after such initiation, may issue, without 
                further investigation, a final determination 
                based on the facts available, in accordance 
                with section 776.
          (4) Waiver of participation by certain interested 
        parties.--
                  (A) In general.--An interested party 
                described in section 771(9) (A) or (B) may 
                elect not to participate in a review conducted 
                by the administering authority under this 
                subsection and to participate only in the 
                review conducted by the Commission under this 
                subsection.
                  (B) Effect of waiver.--In a review in which 
                an interested party waives its participation 
                pursuant to this paragraph, the administering 
                authority shall conclude that revocation of the 
                order or termination of the investigation would 
                be likely to lead to continuation or recurrence 
                of dumping or a countervailable subsidy (as the 
                case may be) with respect to that interested 
                party.
          (5) Conduct of review.--
                  (A) Time limits for completion of review.--
                Unless the review has been completed pursuant 
                to paragraph (3) or paragraph (4) applies, the 
                administering authority shall make its final 
                determination pursuant to section 752 (b) or 
                (c) within 240 days after the date on which a 
                review is initiated under this subsection. If 
                the administering authority makes a final 
                affirmative determination, the Commission shall 
                make its final determination pursuant to 
                section 752(a) within 360 days after the date 
                on which a review is initiated under this 
                subsection.
                  (B) Extension of time limit.--The 
                administering authority or the Commission (as 
                the case may be) may extend the period of time 
                for making their respective determinations 
                under this subsection by not more than 90 days, 
                if the administering authority or the 
                Commission (as the case may be) determines that 
                the review is extraordinarily complicated. In a 
                review in which the administering authority 
                extends the time for making a final 
                determination, but the Commission does not 
                extend the time for making a determination, the 
                Commission's determination shall be made not 
                later than 120 days after the date on which the 
                final determination of the administering 
                authority is published.
                  (C) Extraordinarily complicated.--For 
                purposes of this subsection, the administering 
                authority or the Commission (as the case may 
                be) may treat a review as extraordinarily 
                complicated if--
                          (i) there is a large number of 
                        issues,
                          (ii) the issues to be considered are 
                        complex,
                          (iii) there is a large number of 
                        firms involved,
                          (iv) the orders or suspended 
                        investigations have been grouped as 
                        described in subparagraph (D), or
                          (v) it is a review of a transition 
                        order.
                  (D) Grouped reviews.--The Commission, in 
                consultation with the administering authority, 
                may group orders or suspended investigations 
                for review if it considers that such grouping 
                is appropriate and will promote administrative 
                efficiency. Where orders or suspended 
                investigations have been grouped, the 
                Commission shall, subject to subparagraph (B), 
                make its final determination under this 
                subsection not later than 120 days after the 
                date that the administering authority publishes 
                notice of its final determination with respect 
                to the last order or agreement in the group.
          (6) Special transition rules.--
                  (A) Schedule for reviews of transition 
                orders.--
                          (i) Initiation.--The administering 
                        authority shall begin its review of 
                        transition orders in the 42d calendar 
                        month after the date such orders are 
                        issued. A review of all transition 
                        orders shall be initiated not later 
                        than the 5th anniversary after the date 
                        such orders are issued.
                          (ii) Completion.--A review of a 
                        transition order shall be completed not 
                        later than 18 months after the date 
                        such review is initiated. Reviews of 
                        all transition orders shall be 
                        completed not later than 18 months 
                        after the 5th anniversary of the date 
                        such orders are issued.
                          (iii) Subsequent reviews.--The time 
                        limits set forth in clauses (i) and 
                        (ii) shall be applied to all subsequent 
                        5-year reviews of transition orders by 
                        substituting ``date of the 
                        determination to continue such orders'' 
                        for ``date such orders are issued''.
                          (iv) Revocation and termination.--No 
                        transition order may be revoked under 
                        this subsection before the date that is 
                        5 years after the date the WTO 
                        Agreement enters into force with 
                        respect to the United States.
                  (B) Sequence of transition reviews.--The 
                administering authority, in consultation with 
                the Commission, shall determine such sequence 
                of review of transition orders as it deems 
                appropriate to promote administrative 
                efficiency. To the extent practicable, older 
                orders shall be reviewed first.
                  (C) Definition of transition order.--For 
                purposes of this section, the term ``transition 
                order'' means--
                          (i) a countervailing duty order under 
                        this title or under section 303,
                          (ii) an antidumping duty order under 
                        this title or a finding under the 
                        Antidumping Act, 1921, or
                          (iii) a suspension of an 
                        investigation under section 704 or 734,
                which is in effect on the date the WTO 
                Agreement enters into force with respect to the 
                United States.
                  (D) Issue date for transition orders.--For 
                purposes of this subsection, a transition order 
                shall be treated as issued on the date the WTO 
                Agreement enters into force with respect to the 
                United States, if such order is based on an 
                investigation conducted by both the 
                administering authority and the Commission.
          (7) Exclusions from computations.--
                  (A) In general.--Subject to subparagraph (B), 
                there shall be excluded from the computation of 
                the 5-year period described in paragraph (1) 
                and the periods described in paragraph (6) any 
                period during which the importation of the 
                subject merchandise is prohibited on account of 
                the imposition, under the International 
                Emergency Economic Powers Act or other 
                provision of law, of sanctions by the United 
                States against the country in which the subject 
                merchandise originates.
                  (B) Application of exclusion.--Subparagraph 
                (A) shall apply only with respect to subject 
                merchandise which originates in a country that 
                is not a WTO member.
  (d) Revocation of Order or Finding; Termination of Suspended 
Investigation.--
          (1) In general.--The administering authority may 
        revoke, in whole or in part, a countervailing duty 
        order or an antidumping duty order or finding, or 
        terminate a suspended investigation, after review under 
        subsection (a) or (b). The administering authority 
        shall not revoke, in whole or in part, a countervailing 
        duty order or terminate a suspended investigation on 
        the basis of any export taxes, duties, or other charges 
        levied on the export of the subject merchandise to the 
        United States which are specifically intended to offset 
        the countervailable subsidy received.
          (2) Five-year reviews.--In the case of a review 
        conducted under subsection (c), the administering 
        authority shall revoke a countervailing duty order or 
        an antidumping duty order or finding, or terminate a 
        suspended investigation, unless--
                  (A) the administering authority makes a 
                determination that dumping or a countervailable 
                subsidy, as the case may be, would be likely to 
                continue or recur, and
                  (B) the Commission makes a determination that 
                material injury would be likely to continue or 
                recur as described in section 752(a).
          (3) Application of revocation or termination.--A 
        determination under this section to revoke an order or 
        finding or terminate a suspended investigation shall 
        apply with respect to unliquidated entries of the 
        subject merchandise which are entered, or withdrawn 
        from warehouse, for consumption on or after the date 
        determined by the administering authority.
  (e) Hearings.--Whenever the administering authority or the 
Commission conducts a review under this section, it shall, upon 
the request of an interested party, hold a hearing in 
accordance with section 774(b) in connection with that review.
  (f) Determination That Basis for Suspension No Longer 
Exists.--If the determination of the Commission under 
subsection (b)(2)(B) is negative, the suspension agreement 
shall be treated as not accepted, beginning on the date of 
publication of the Commission's determination, and the 
administering authority and the Commission shall proceed, under 
section 704(i) or 734(i), as if the suspension agreement had 
been violated on that date, except that no duty under any order 
subsequently issued shall be assessed on merchandise entered, 
or withdrawn from warehouse, for consumption before that date.
  (g) Reviews To Implement Results of Subsidies Enforcement 
Proceeding.--
          (1) Violations of article 8 of the subsidies 
        agreement.--If--
                  (A) the administering authority receives 
                notice from the Trade Representative of a 
                violation of Article 8 of the Subsidies 
                Agreement,
                  (B) the administering authority has reason to 
                believe that merchandise subject to an existing 
                countervailing duty order or suspended 
                investigation is benefiting from the subsidy or 
                subsidy program found to have been in violation 
                of Article 8 of the Subsidies Agreement, and
                  (C) no review pursuant to subsection (a)(1) 
                is in progress,
        the administering authority shall conduct a review of 
        the order or suspended investigation to determine 
        whether the subject merchandise benefits from the 
        subsidy or subsidy program found to have been in 
        violation of Article 8 of the Subsidies Agreement. If 
        the administering authority determines that the subject 
        merchandise is benefiting from the subsidy or subsidy 
        program, it shall make appropriate adjustments in the 
        estimated duty to be deposited or appropriate revisions 
        to the terms of the suspension agreement.
          (2) Withdrawal of subsidy or imposition of 
        countermeasures.--If the Trade Representative notifies 
        the administering authority that, pursuant to Article 4 
        or Article 7 of the Subsidies Agreement--
                  (A)(i) the United States has imposed 
                countermeasures, and
                  (ii) such countermeasures are based on the 
                effects in the United States of imports of 
                merchandise that is the subject of a 
                countervailing duty order, or
                  (B) a WTO member country has withdrawn a 
                countervailable subsidy provided with respect 
                to merchandise subject to a countervailing duty 
                order,
        the administering authority shall conduct a review to 
        determine if the amount of the estimated duty to be 
        deposited should be adjusted or the order should be 
        revoked.
          (3) Expedited review.--The administering authority 
        shall conduct reviews under this subsection on an 
        expedited basis, and shall publish the results of such 
        reviews in the Federal Register.
  (h) Correction of Ministerial Errors.--The administering 
authority shall establish procedures for the correction of 
ministerial errors in final determinations within a reasonable 
time after the determinations are issued under this section. 
Such procedures shall ensure opportunity for interested parties 
to present their views regarding any such errors. As used in 
this subsection, the term ``ministerial error'' includes errors 
in addition, subtraction, or other arithmetic function, 
clerical errors resulting from inaccurate copying, duplication, 
or the like, and any other type of unintentional error which 
the administering authority considers ministerial.

           *       *       *       *       *       *       *


Subtitle D--General Provisions

           *       *       *       *       *       *       *



SEC. 777. ACCESS TO INFORMATION.

  (a) Information Generally Made Available.--
          (1) Public information function.--There shall be 
        established a library of information relating to 
        foreign subsidy practices and countervailing measures. 
        Copies of material in the library shall be made 
        available to the public upon payment of the costs of 
        preparing such copies.
          (2) Progress of investigation reports.--The 
        administering authority and the Commission shall, from 
        time to time upon request, inform the parties to an 
        investigation of the progress of that investigation.
          (3) Ex parte meetings.--The administering authority 
        and the Commission shall maintain a record of any ex 
        parte meeting between--
                  (A) interested parties or other persons 
                providing factual information in connection 
                with a proceeding, and
                  (B) the person charged with making the 
                determination, or any person charged with 
                making a final recommendation to that person, 
                in connection with that proceeding,
        if information relating to that proceeding was 
        presented or discussed at such meeting. The record of 
        such an ex parte meeting shall include the identity of 
        the persons present at the meeting, the date, time, and 
        place of the meeting, and a summary of the matters 
        discussed or submitted. The record of the ex parte 
        meeting shall be included in the record of the 
        proceeding.
          (4) Summaries; non-proprietary submissions.--The 
        administering authority and the Commission shall 
        disclose--
                  (A) any proprietary information received in 
                the course of a proceeding if it is disclosed 
                in a form which cannot be associated with, or 
                otherwise be used to identify, operations of a 
                particular person, and
                  (B) any information submitted in connection 
                with a proceeding which is not designated as 
                proprietary by the person submitting it.
  (b) Proprietary Information.--
          (1) Proprietary status maintained.--
                  (A) In general.--Except as provided in 
                subsection (a)(4)(A) and subsection (c), 
                information submitted to the administering 
                authority or the Commission which is designated 
                as proprietary by the person submitting the 
                information shall not be disclosed to any 
                person without the consent of the person 
                submitting the information, other than--
                          (i) to an officer or employee of the 
                        administering authority or the 
                        Commission who is directly concerned 
                        with carrying out the investigation in 
                        connection with which the information 
                        is submitted or any review under this 
                        title covering the same subject 
                        merchandise, or
                          (ii) to an officer or employee of the 
                        United States Customs Service who is 
                        directly involved in conducting an 
                        investigation regarding fraud under 
                        this title.
                  (B) Additional requirements.--The 
                administering authority and the Commission 
                shall require that information for which 
                proprietary treatment is requested be 
                accompanied by--
                          (i) either--
                                  (I) a non-proprietary summary 
                                in sufficient detail to permit 
                                a reasonable understanding of 
                                the substance of the 
                                information submitted in 
                                confidence, or
                                  (II) a statement that the 
                                information is not susceptible 
                                to summary accompanied by a 
                                statement of the reasons in 
                                support of the contention, and
                          (ii) either--
                                  (I) a statement which permits 
                                the administering authority or 
                                the Commission to release under 
                                administrative protective 
                                order, in accordance with 
                                subsection (c), the information 
                                submitted in confidence, or
                                  (II) a statement to the 
                                administering authority or the 
                                Commission that the business 
                                proprietary information is of a 
                                type that should not be 
                                released under administrative 
                                protective order.
          (2) Unwarranted designation.--If the administering 
        authority or the Commission determines, on the basis of 
        the nature and extent of the information or its 
        availability from public sources, that designation of 
        any information as proprietary is unwarranted, then it 
        shall notify the person who submitted it and ask for an 
        explanation of the reasons for the designation. Unless 
        that person persuades the administering authority or 
        the Commission that the designation is warranted, or 
        withdraws the designation, the administering authority 
        or the Commission, as the case may be, shall return it 
        to the party submitting it. In a case in which the 
        administering authority or the Commission returns the 
        information to the person submitting it, the person may 
        thereafter submit other material concerning the subject 
        matter of the returned information if the submission is 
        made within the time otherwise provided for submitting 
        such material.
          (3) Section 751 reviews.--Notwithstanding the 
        provisions of paragraph (1), information submitted to 
        the administering authority or the Commission in 
        connection with a review under section 751(b) or 751(c) 
        which is designated as proprietary by the person 
        submitting the information may, if the review results 
        in the revocation of an order or finding (or 
        termination of a suspended investigation) under section 
        751(d), be used by the agency to which the information 
        was originally submitted in any investigation initiated 
        within 2 years after the date of the revocation or 
        termination pursuant to a petition covering the same 
        subject merchandise.
  (c) Limited Disclosure of Certain Proprietary Information 
Under Protective Order.--
          (1) Disclosure by administering authority or 
        commission.--
                  (A) In general.--Upon receipt of an 
                application (before or after receipt of the 
                information requested) which describes in 
                general terms the information requested and 
                sets forth the reasons for the request, the 
                administering authority or the Commission shall 
                make all business proprietary information 
                presented to, or obtained by it, during a 
                proceeding (except privileged information, 
                classified information, and specific 
                information of a type for which there is a 
                clear and compelling need to withhold from 
                disclosure) available to interested parties who 
                are parties to the proceeding under a 
                protective order described in subparagraph (B), 
                regardless of when the information is submitted 
                during a proceeding. Customer names obtained 
                during any investigation which requires a 
                determination under section 705(b) or 735(b) 
                may not be disclosed by the administering 
                authority under protective order until either 
                an order is published under section 706(a) or 
                736(a) as a result of the investigation or the 
                investigation is suspended or terminated. The 
                Commission may delay disclosure of customer 
                names under protective order during any such 
                investigation until a reasonable time prior to 
                any hearing provided under section 774.
                  (B) Protective order.--The protective order 
                under which information is made available shall 
                contain such requirements as the administering 
                authority or the Commission may determine by 
                regulation to be appropriate. The administering 
                authority and the Commission shall provide by 
                regulation for such sanctions as the 
                administering authority and the Commission 
                determine to be appropriate, including 
                disbarment from practice before the agency.
                  (C) Time limitation on determinations.--The 
                administering authority or the Commission, as 
                the case may be, shall determine whether to 
                make information available under this 
                paragraph--
                          (i) not later than 14 days (7 days if 
                        the submission pertains to a proceeding 
                        under section 703(a) or 733(a)) after 
                        the date on which the information is 
                        submitted, or
                          (ii) if--
                                  (I) the person that submitted 
                                the information raises 
                                objection to its release, or
                                  (II) the information is 
                                unusually voluminous or 
                                complex,
                        not later than 30 days (10 days if the 
                        submission pertains to a proceeding 
                        under section 703(a) or 733(a)) after 
                        the date on which the information is 
                        submitted.
                  (D) Availability after determination.--If the 
                determination under subparagraph (C) is 
                affirmative, then--
                          (i) the business proprietary 
                        information submitted to the 
                        administering authority or the 
                        Commission on or before the date of the 
                        determination shall be made available, 
                        subject to the terms and conditions of 
                        the protective order, on such date; and
                          (ii) the business proprietary 
                        information submitted to the 
                        administering authority or the 
                        Commission after the date of the 
                        determination shall be served as 
                        required by subsection (d).
                  (E) Failure to disclose.--If a person 
                submitting information to the administering 
                authority refuses to disclose business 
                proprietary information which the administering 
                authority determines should be released under a 
                protective order described in subparagraph (B), 
                the administering authority shall return the 
                information, and any nonconfidential summary 
                thereof, to the person submitting the 
                information and summary and shall not consider 
                either.
          (2) Disclosure under court order.--If the 
        administering authority denies a request for 
        information under paragraph (1), then application may 
        be made to the United States Customs Court for an order 
        directing the administering authority or the Commission 
        to make the information available. After notification 
        of all parties to the investigation and after an 
        opportunity for a hearing on the record, the court may 
        issue an order, under such conditions as the court 
        deems appropriate, which shall not have the effect of 
        stopping or suspending the investigation, directing the 
        administering authority or the Commission to make all 
        or a portion of the requested information described in 
        the preceding sentence available under a protective 
        order and setting forth sanctions for violation of such 
        order if the court finds that, under the standards 
        applicable in proceedings of the court, such an order 
        is warranted, and that--
                  (A) the administering authority or the 
                Commission has denied access to the information 
                under subsection (b)(1),
                  (B) the person on whose behalf the 
                information is requested is an interested party 
                who is a party to the investigation in 
                connection with which the information was 
                obtained or developed, and
                  (C) the party which submitted the information 
                to which the request relates has been notified, 
                in advance of the hearing, of the request made 
                under this section and of its right to appear 
                and be heard.
  (d) Service.--Any party submitting written information, 
including business proprietary information, to the 
administering authority or the Commission during a proceeding 
shall, at the same time, serve the information upon all 
interested parties who are parties to the proceeding, if the 
information is covered by a protective order. The administering 
authority or the Commission shall not accept any such 
information that is not accompanied by a certificate of service 
and a copy of the protective order version of the document 
containing the information. Business proprietary information 
shall only be served upon interested parties who are parties to 
the proceeding that are subject to protective order; however, a 
nonconfidential summary thereof shall be served upon all other 
interested parties who are parties to the proceeding.
  (f) Disclosure of Proprietary Information Under Protective 
Orders Issued Pursuant to the North American Free Trade 
Agreement or the United States-Canada Agreement.--
          (1) Issuance of protective orders.--
                  (A) In general.--If binational panel review 
                of a determination under this title is 
                requested pursuant to article 1904 of the NAFTA 
                or the United States-Canada Agreement, or an 
                extraordinary challenge committee is convened 
                under Annex 1904.13 of the NAFTA or the United 
                States-Canada Agreement, the administering 
                authority or the Commission, as appropriate, 
                may make available to authorized persons, under 
                a protective order described in paragraph (2), 
                a copy of all proprietary material in the 
                administrative record made during the 
                proceeding in question. If the administrating 
                authority or the Commission claims a privilege 
                as to a document or portion of a document in 
                the administrative record of the proceeding in 
                question and a binational panel or 
                extraordinary challenge committee finds that in 
                camera inspection or limited disclosure of that 
                document or portion thereof is required by 
                United States law, the administering authority 
                or the Commission, as appropriate, may restrict 
                access to such document or portion thereof to 
                the authorized persons identified by the panel 
                or committee as requiring access and may 
                require such persons to obtain access under a 
                protective order described in paragraph (2).
                  (B) Authorized persons.--For purposes of this 
                subsection, the term ``authorized persons'' 
                means--
                          (i) the members of, and the 
                        appropriate staff of, the binational 
                        panel or the extraordinary challenge 
                        committee, as the case may be, and the 
                        Secretariat,
                          (ii) counsel for parties to such 
                        panel or committee proceeding, and 
                        employees, and persons under the 
                        direction and control, of such counsel,
                          (iii) any officer or employee of the 
                        United States Government designated by 
                        the administering authority or the 
                        Commission, as appropriate, to whom 
                        disclosure is necessary in order to 
                        make recommendations to the Trade 
                        Representative regarding the convening 
                        of extraordinary challenge committees 
                        under chapter 19 of the NAFTA or the 
                        Agreement, and
                          (iv) any officer or employee of the 
                        Government of a free trade area country 
                        (as defined in section 516A(f)(10)) 
                        designated by an authorized agency of 
                        such country to whom disclosure is 
                        necessary in order to make decisions 
                        regarding the convening of 
                        extraordinary challenge committees 
                        under chapter 19 of the NAFTA or the 
                        Agreement.
                  (C) Review.--A decision concerning the 
                disclosure or nondisclosure of material under 
                protective order by the administering authority 
                or the Commission shall not be subject to 
                judicial review, and no court of the United 
                States shall have power or jurisdiction to 
                review such decision on any question of law or 
                fact by an action in the nature of mandamus or 
                otherwise.
          (2) Contents of protective order.--Each protective 
        order issued under this subsection shall be in such 
        form and contain such requirements as the administering 
        authority or the Commission may determine by regulation 
        to be appropriate. The administering authority and the 
        Commission shall ensure that regulations issued 
        pursuant to this paragraph shall be designed to provide 
        an opportunity for participation in the binational 
        panel proceeding, including any extraordinary 
        challenge, equivalent to that available for judicial 
        review of determinations by the administering authority 
        or the Commission that are not subject to review by a 
        binational panel.
          (3) Prohibited acts.--It is unlawful for any person 
        to violate, to induce the violation of, or knowingly to 
        receive information the receipt of which constitutes a 
        violation of, any provision of a protective order 
        issued under this subsection or to violate, to induce 
        the violation of, or knowingly to receive information 
        the receipt of which constitutes a violation of, any 
        provision of an undertaking entered into with an 
        authorized agency of a free trade area country (as 
        defined in section 516A(f)(10)) to protect proprietary 
        material during binational panel or extraordinary 
        challenge committee review pursuant to article 1904 of 
        the NAFTA or the United States-Canada Agreement.
          (4) Sanctions for violation of protective orders.--
        Any person, except a judge appointed to a binational 
        panel or an extraordinary challenge committee under 
        section 402(b) of the North American Free Trade 
        Agreement Implementation Act, who is found by the 
        administering authority or the Commission, as 
        appropriate, after notice and an opportunity for a 
        hearing in accordance with section 554 of title 5, 
        United States Code, to have committed an act prohibited 
        by paragraph (3) shall be liable to the United States 
        for a civil penalty and shall be subject to such other 
        administrative sanctions, including, but not limited 
        to, debarment from practice before the administering 
        authority or the Commission, as the administering 
        authority or the Commission determines to be 
        appropriate. The amount of the civil penalty shall not 
        exceed $100,000 for each violation. Each day of a 
        continuing violation shall constitute a separate 
        violation. The amount of such civil penalty and other 
        sanctions shall be assessed by the administering 
        authority or the Commission by written notice, except 
        that assessment shall be made by the administering 
        authority for violation, or inducement of a violation 
        or receipt of information with reason to know that such 
        information was disclosed in violation, of an 
        undertaking entered into by any person with an 
        authorized agency of a free trade area country (as 
        defined in section 516A(f)(10)).
          (5) Review of sanctions.--Any person against whom 
        sanctions are imposed under paragraph (4) may obtain 
        review of such sanctions by filing a notice of appeal 
        in the United States Court of International Trade 
        within 30 days from the date of the order imposing the 
        sanction and by simultaneously sending a copy of such 
        notice by certified mail to the administering authority 
        or the Commission, as appropriate. The administering 
        authority or the Commission shall promptly file in such 
        court a certified copy of the record upon which such 
        violation was found or such sanction imposed, as 
        provided in section 2112 of title 28, United States 
        Code. The findings and order of the administering 
        authority or the Commission shall be set aside by the 
        court only if the court finds that such findings and 
        order are not supported by substantial evidence, as 
        provided in section 706(2) of title 5, United States 
        Code.
          (6) Enforcement of sanctions.--If any person fails to 
        pay an assessment of a civil penalty or to comply with 
        other administrative sanctions after the order imposing 
        such sanctions becomes a final and unappealable order, 
        or after the United States Court of International Trade 
        has entered final judgment in favor of the 
        administering authority or the Commission, an action 
        may be filed in such court to enforce the sanctions. In 
        such action, the validity and appropriateness of the 
        final order imposing the sanctions shall not be subject 
        to review.
          (7) Testimony and production of papers.--
                  (A) Authority to obtain information.--For the 
                purpose of conducting any hearing and carrying 
                out other functions and duties under this 
                subsection, the administering authority and the 
                Commission, or their duly authorized agents--
                          (i) shall have access to and the 
                        right to copy any pertinent document, 
                        paper, or record in the possession of 
                        any individual, partnership, 
                        corporation, association, organization, 
                        or other entity,
                          (ii) may summon witnesses, take 
                        testimony, and administer oaths,
                          (iii) and may require any individual 
                        or entity to produce pertinent 
                        documents, books, or records.
                Any member of the Commission, and any person so 
                designated by the administering authority, may 
                sign subpoenas, and members and agents of the 
                administering authority and the Commission, 
                when authorized by the administering authority 
                or the Commission, as appropriate, may 
                administer oaths and affirmations, examine 
                witnesses, take testimony, and receive 
                evidence.
                  (B) Witnesses and evidence.--The attendance 
                of witnesses who are authorized to be summoned, 
                and the production of documentary evidence 
                authorized to be ordered, under subparagraph 
                (A) may be required from any place in the 
                United States at any designated place of 
                hearing. In the case of disobedience to a 
                subpoena issued under subparagraph (A), an 
                action may be filed in any district or 
                territorial court of the United States to 
                require the attendance and testimony of 
                witnesses and the production of documentary 
                evidence. Such court, within the jurisdiction 
                of which such inquiry is carried on, may, in 
                case of contumacy or refusal to obey a subpoena 
                issued to any individual, partnership, 
                corporation, association, organization or other 
                entity, issue any order requiring such 
                individual or entity to appear before the 
                administering authority or the Commission, or 
                to produce documentary evidence if so ordered 
                or to give evidence concerning the matter in 
                question. Any failure to obey such order of the 
                court may be punished by the court as a 
                contempt thereof.
                  (C) Mandamus.--Any court referred to in 
                subparagraph (B) shall have jurisdiction to 
                issue writs of mandamus commanding compliance 
                with the provisions of this subsection or any 
                order of the administering authority or the 
                Commission made in pursuance thereof.
                  (D) Depositions.--For purposes of carrying 
                out any functions or duties under this 
                subsection, the administering authority or the 
                Commission may order testimony to be taken by 
                deposition. Such deposition may be taken before 
                any person designated by the administering 
                authority or Commission and having power to 
                administer oaths. Such testimony shall be 
                reduced to writing by the person taking the 
                deposition, or under the direction of such 
                person, and shall then be subscribed by the 
                deponent. Any individual, partnership, 
                corporation, association, organization or other 
                entity may be compelled to appear and depose 
                and to produce documentary evidence in the same 
                manner as witnesses may be compelled to appear 
                and testify and produce documentary evidence 
                before the administering authority or 
                Commission, as provided in this paragraph.
                  (E) Fees and mileage of witnesses.--Witnesses 
                summoned before the administering authority or 
                the Commission shall be paid the same fees and 
                mileage that are paid witnesses in the courts 
                of the United States.
  (g) Information Relating to Violations of Protective Orders 
and Sanctions.--The administering authority and the Commission 
may withhold from disclosure any correspondence, private 
letters of reprimand, settlement agreements, and documents and 
files compiled in relation to investigations and actions 
involving a violation or possible violation of a protective 
order issued under subsection (c) or (d), and such information 
shall be treated as information described in section 552(b)(3) 
of title 5, United States Code.
  (h) Opportunity for Comment by Consumers and Industrial 
Users.--The administering authority and the Commission shall 
provide an opportunity for industrial users of the subject 
merchandise and, if the merchandise is sold at the retail 
level, for representative consumer organizations, to submit 
relevant information to the administering authority concerning 
dumping or a countervailable subsidy, and to the Commission 
concerning material injury by reason of dumped or subsidized 
imports.
  (i) Publication of Determinations; Requirements for Final 
Determinations.--
          (1) In general.--Whenever the administering authority 
        makes a determination under section 702 or 732 whether 
        to initiate an investigation, or the administering 
        authority or the Commission makes a preliminary 
        determination under section 703 or 733, a final 
        determination under section 705 or section 735, a 
        preliminary or final determination in a review under 
        section 751, a determination to suspend an 
        investigation under this title, or a determination 
        under section 753, the administering authority or the 
        Commission, as the case may be, shall publish the facts 
        and conclusions supporting that determination, and 
        shall publish notice of that determination in the 
        Federal Register.
          (2) Contents of notice or determination.--The notice 
        or determination published under paragraph (1) shall 
        include, to the extent applicable--
                  (A) in the case of a determination of the 
                administering authority--
                          (i) the names of the exporters or 
                        producers of the subject merchandise 
                        or, when providing such names is 
                        impracticable, the countries exporting 
                        the subject merchandise to the United 
                        States,
                          (ii) a description of the subject 
                        merchandise that is sufficient to 
                        identify the subject merchandise for 
                        customs purposes,
                          (iii)(I) with respect to a 
                        determination in an investigation under 
                        subtitle A or section 753 or in a 
                        review of a countervailing duty order, 
                        the amount of the countervailable 
                        subsidy established and a full 
                        explanation of the methodology used in 
                        establishing the amount, and
                          (II) with respect to a determination 
                        in an investigation under subtitle B or 
                        in a review of an antidumping duty 
                        order, the weighted average dumping 
                        margins established and a full 
                        explanation of the methodology used in 
                        establishing such margins, and
                          (iv) the primary reasons for the 
                        determination; and
                  (B) in the case of a determination of the 
                Commission--
                          (i) considerations relevant to the 
                        determination of injury, and
                          (ii) the primary reasons for the 
                        determination.
          (3) Additional requirements for final 
        determinations.--In addition to the requirements set 
        forth in paragraph (2)--
                  (A) the administering authority shall include 
                in a final determination described in paragraph 
                (1) an explanation of the basis for its 
                determination that addresses relevant 
                arguments, made by interested parties who are 
                parties to the investigation or review (as the 
                case may be), concerning the establishment of 
                dumping or a countervailable subsidy, or the 
                suspension of the investigation, with respect 
                to which the determination is made; and
                  (B) the Commission shall include in a final 
                determination of injury an explanation of the 
                basis for its determination that addresses 
                relevant arguments that are made by interested 
                parties who are parties to the investigation or 
                review (as the case may be) concerning volume, 
                price effects, and impact on the industry of 
                imports of the subject merchandise.

           *       *       *       *       *       *       *

                              ----------                              


     SECTION 9503 OF THE OMNIBUS BUDGET RECONCILIATION ACT OF 1987


SEC. 9503. UNITED STATES CUSTOMS SERVICE AUTHORIZATIONS.

  (a) [Omitted amendatory text]
  (b) [Omitted amendatory text]
  (c) Advisory Committee on Commercial Operations of United 
States Customs Service.--
          (1) The Secretary of the Treasury shall establish an 
        advisory committee which shall be known as the 
        ``Advisory Committee on Commercial Operations of the 
        United States Customs Service''(hereafter in this 
        subsection referred to as the ``Advisory Committee'').
          (2)(A) The Advisory Committee shall consist of 20 
        members appointed by the Secretary of the Treasury.
          (B) In making appointments under subparagraph (A), 
        the Secretary of the Treasury shall ensure that--
                  (i) the membership of the Advisory Committee 
                is representative of the individuals and firms 
                affected by the commercial operations of the 
                United States Customs Service; and
                  (ii) a majority of the members of the 
                Advisory Committee do not belong to the same 
                political party.
          (3) The Advisory Committee shall--
                  (A) provide advice to the Secretary of the 
                Treasury on all matters involving the 
                commercial operations of the United States 
                Customs Service; and
                  (B) submit an annual report to the Committee 
                on Finance of the Senate and the Committee on 
                Ways and Means of the House of Representatives 
                that shall--
                          (i) describe the operations of the 
                        Advisory Committee during the preceding 
                        year, and
                          (ii) set forth any recommendations of 
                        the Advisory Committee regarding the 
                        commercial operations of the United 
                        States Customs Service.
          (4) The Assistant Secretary of the Treasury for 
        Enforcement shall preside over meetings of the Advisory 
        Committee.
  (d) [Omitted amendatory text]
                              ----------                              


                 SECTION 2 OF THE ACT OF MARCH 3, 1927


                          (Public Law 69-348)

AN ACT To create a Bureau of Customs and a Bureau of Prohibition in the 
                      Department of the Treasury.



  Section 2. (a) The Secretary of the Treasury is authorized to 
appoint, in each of the bureaus established by section 1, one 
assistant commissioner, two deputy commissioners, one chief 
clerk, and such attorneys customs and other officers and 
employees as he may deem necessary. One of the deputy 
commissioners of the Bureau of Customs shall have charge of 
investigations. Appointments under this subdivision shall be 
subject to the provisions of the civil service laws, and the 
salaries shall be fixed in accordance with the Classification 
Act of 1923.
  (b) The Secretary of the Treasury is authorized to designate 
an officer of the Bureau of Customs to act as Commissioner of 
Customs, during the absence or disability of the Commissioner 
of Customs, or in the event that there is no Commissioner of 
Customs; and to designate an officer of the Bureau of 
Prohibition to act as Commissioner of Prohibition during the 
absence or disability of the Commissioner of Prohibition, or in 
the event that there is no Commissioner of Prohibition.
  (c) The personnel of the Bureau of Customs shall perform such 
duties as the Secretary of the Treasury may prescribe.
  (d)  Office of International Trade.--
          (1) Establishment.--There is established within the 
        United States Customs and Border Protection an Office 
        of International Trade that shall be headed by an 
        Assistant Commissioner.
          (2) Transfer of assets, functions, and personnel; 
        elimination of offices.--
                  (A) Office of strategic trade.--
                          (i) In general.--Not later than 90 
                        days after the date of the enactment of 
                        the SAFE Port Act, the Commissioner 
                        shall transfer the assets, functions, 
                        and personnel of the Office of 
                        Strategic Trade to the Office of 
                        International Trade established 
                        pursuant to paragraph (1) and the 
                        Office of Strategic Trade shall be 
                        abolished.
                          (ii) Limitation on funds.--No funds 
                        appropriated to the United States 
                        Customs and Border Protection may be 
                        used to transfer the assets, functions, 
                        or personnel of the Office of Strategic 
                        Trade, to an office other than the 
                        office established pursuant to 
                        paragraph (1) of this subsection.
                  (B) Office of regulations and rulings.--
                          (i) In general.--Not later than 90 
                        days after the date of the enactment of 
                        the SAFE Port Act, the Commissioner 
                        shall transfer the assets, functions, 
                        and personnel of the Office of 
                        Regulations and Rulings to the Office 
                        of International Trade established 
                        pursuant to paragraph (1) and the 
                        Office of Regulations and Rulings shall 
                        be abolished.
                          (ii) Limitation on funds.--No funds 
                        appropriated to the United States 
                        Customs and Border Protection may be 
                        used to transfer the assets, functions, 
                        or personnel of the Office of 
                        Regulations and Rulings, to an office 
                        other than the office established 
                        pursuant to paragraph (1) of this 
                        subsection.
                  (C) Other transfers.--The Commissioner is 
                authorized to transfer any other assets, 
                functions, or personnel within the United 
                States Customs and Border Protection to the 
                Office of International Trade established 
                pursuant to paragraph (1). Not less than 45 
                days prior to each such transfer, the 
                Commissioner shall notify the Committee on 
                Appropriations, the Committee on Finance, and 
                the Committee on Homeland Security and 
                Governmental Affairs of the Senate and the 
                Committee on Appropriations, the Committee on 
                Homeland Security, and the Committee on Ways 
                and Means of the House of Representatives of 
                the specific assets, functions, or personnel to 
                be transferred, and the reason for such 
                transfer. Such notification shall also 
                include--
                          (i) an explanation of how trade 
                        enforcement functions will be impacted 
                        by the reorganization;
                          (ii) an explanation of how the 
                        reorganization meets the requirements 
                        of section 412(b) of the Homeland 
                        Security Act of 2002 that the 
                        Department of Homeland Security not 
                        diminish the customs revenue and trade 
                        facilitation functions formerly 
                        performed by the United States Customs 
                        Service; and
                          (iii) any comments or recommendations 
                        provided by the Commercial Operations 
                        Advisory Committee regarding such 
                        reorganization.
                  (D) Report.-- Not later than 1 year after any 
                reorganization pursuant to subparagraph (C) 
                takes place, the Commissioner, in consultation 
                with the Commercial Operations Advisory 
                Committee, shall report to the Committee on 
                Finance of the Senate and the Committee on Ways 
                and Means of the House of Representatives. Such 
                report shall include an assessment of the 
                impact of, and any suggested modifications to, 
                such reorganization.
                  (E) Limitation on authority.--Notwithstanding 
                any other provision of law, the Commissioner 
                shall not transfer any assets, functions, or 
                personnel from United States ports of entry, 
                associated with the enforcement of laws 
                relating to trade in textiles and apparel, to 
                the Office of International Trade established 
                pursuant to paragraph (1), until the following 
                conditions are met:
                          (i) The Commissioner submits the 
                        initial Resource Allocation Model 
                        required by section 301(h) of the 
                        Customs and Procedural Reform and 
                        Simplification Act of 1978 and includes 
                        in such Resource Allocation Model a 
                        section addressing the allocation of 
                        assets, functions, and personnel 
                        associated with the enforcement of laws 
                        relating to trade in textiles and 
                        apparel.
                          (ii) The Commissioner consults with 
                        the Committee on Finance of the Senate 
                        and the Committee on Ways and Means of 
                        the House of Representatives regarding 
                        any subsequent transfer of assets, 
                        functions, or personnel associated with 
                        the enforcement of laws relating to 
                        trade in textiles and apparel, not less 
                        than 45 days prior to such transfer.
                  (F)  Limitation on appropriations.--No funds 
                appropriated to the United States Customs and 
                Border Protection may be used to transfer the 
                assets, functions, or personnel associated with 
                the enforcement of laws relating to trade in 
                textiles and apparel, before the Commissioner 
                consults with the congressional committees 
                pursuant to subparagraph (E)(ii).
  (e) International Trade Committee.--
          (1) Establishment.-- The Commissioner shall establish 
        an International Trade Committee, to be chaired by the 
        Commissioner, and to include the Deputy Commissioner, 
        the Assistant Commissioner in the Office of Field 
        Operations, the Assistant Commissioner in the Office of 
        Finance, the Assistant Commissioner in the Office of 
        International Affairs, the Assistant Commissioner in 
        the Office of International Trade, the Director of the 
        Office of Trade Relations, and any other official 
        determined by the Commissioner to be important to the 
        work of the Committee.
          (2) Responsibilities.--The International Trade 
        Committee shall--
                  (A) be responsible for advising the 
                Commissioner with respect to the commercial 
                customs and trade facilitation functions of the 
                United States Customs and Border Protection;
                  (B) assist the Commissioner in coordinating 
                with the Secretary regarding commercial customs 
                and trade facilitation functions; and
                  (C) oversee the operation of all programs and 
                systems that are involved in the assessment and 
                collection of duties, bonds, and other charges 
                or penalties associated with the entry of cargo 
                into the United States, or the export of cargo 
                from the United States, including the 
                administration of duty drawback and the 
                collection of antidumping and countervailing 
                duties.
          (3) Annual report.--Not later than 30 days after the 
        end of each fiscal year, the International Trade 
        Committee shall submit a report to the Committee on 
        Finance of the Senate and the Committee on Ways and 
        Means of the House of Representatives. The report 
        shall--
                  (A) detail the activities of the 
                International Trade Committee during the 
                preceding fiscal year; and
                  (B) identify the priorities of the 
                International Trade Committee for the fiscal 
                year in which the report is filed.
  (f) Definition.--In this section:
          (1)  Commissioner.--The term `Commissioner' means the 
        Commissioner responsible for the United States Customs 
        and Border Protection in the Department of Homeland 
        Security.
          (2) Commercial operations advisory committee.--The 
        term `Commercial Operations Advisory Committee' means 
        the Advisory Committee established pursuant to section 
        9503(c) of the Omnibus Budget Reconciliation Act of 
        1987 or any successor committee.
                              ----------                              


                  SECTION 343 OF THE TRADE ACT OF 2002


SEC. 343. MANDATORY ADVANCED ELECTRONIC INFORMATION FOR CARGO AND OTHER 
                    IMPROVED CUSTOMS REPORTING PROCEDURES

  (a) Cargo Information.
          (1) In general.--(A) Subject to paragraphs (2) and 
        (3), the Secretary is authorized to promulgate 
        regulations providing for the transmission to the 
        Customs Service, through an electronic data interchange 
        system, of information pertaining to cargo to be 
        brought into the United States or to be sent from the 
        United States, prior to the arrival or departure of the 
        cargo.
          (B) The Secretary shall endeavor to promulgate an 
        initial set of regulations under subparagraph (A) not 
        later than October 1, 2003.
          (2) Information required.--The cargo information 
        required by the regulations promulgated pursuant to 
        paragraph (1) under the parameters set forth in 
        paragraph (3) shall be such information on cargo as the 
        Secretary determines to be reasonably necessary to 
        ensure cargo safety and security pursuant to those laws 
        enforced and administered by the Customs Service. The 
        Secretary shall provide to appropriate Federal 
        departments and agencies cargo information obtained 
        pursuant to paragraph (1).
          (3) Parameters.--In developing regulations pursuant 
        to paragraph (1), the Secretary shall adhere to the 
        following parameters:
                  (A) The Secretary shall solicit comments from 
                and consult with a broad range of parties 
                likely to be affected by the regulations, 
                including importers, exporters, carriers, 
                customs brokers, and freight forwarders, among 
                other interested parties.
                  (B) In general, the requirement to provide 
                particular information shall be imposed on the 
                party most likely to have direct knowledge of 
                that information. Where requiring information 
                from the party with direct knowledge of that 
                information is not practicable, the regulations 
                shall take into account how, under ordinary 
                commercial practices, information is acquired 
                by the party on which the requirement is 
                imposed, and whether and how such party is able 
                to verify the information. Where information is 
                not reasonably verifiable by the party on which 
                a requirement is imposed, the regulations shall 
                permit that party to transmit information on 
                the basis of what it reasonably believes to be 
                true.
                  (C) The Secretary shall take into account the 
                existence of competitive relationships among 
                the parties on which requirements to provide 
                particular information are imposed.
                  (D) Where the regulations impose requirements 
                on carriers of cargo, they shall take into 
                account differences among different modes of 
                transportation, including differences in 
                commercial practices, operational 
                characteristics, and technological capacity to 
                collect and transmit information 
                electronically.
                  (E) The regulations shall take into account 
                the extent to which the technology necessary 
                for parties to transmit and the Customs Service 
                to receive and analyze data in a timely fashion 
                is available. To the extent that the Secretary 
                determines that the necessary technology will 
                not be widely available to particular modes of 
                transportation or other affected parties until 
                after promulgation of the regulations, the 
                regulations shall provide interim requirements 
                appropriate for the technology that is 
                available at the time of promulgation.
                  (F) The information collected pursuant to the 
                regulations shall be used exclusively for 
                ensuring cargo safety and security and 
                preventing smuggling, and shall not be used for 
                determining merchandise entry or for any other 
                commercial enforcement purposes. 
                Notwithstanding the preceding sentence, nothing 
                in this section shall be treated as amending, 
                repealing, or otherwise modifying title IV of 
                the Tariff Act of 1930 or regulations 
                promulgated thereunder.
                  (G) The regulations shall protect the privacy 
                of business proprietary and any other 
                confidential cargo information provided to the 
                Customs Service pursuant to such regulations, 
                except for the manifest information collected 
                pursuant to section 431 of the Tariff Act of 
                1930 and required to be available for public 
                disclosure pursuant to section 431(c) of such 
                Act.
                  (H) In determining the timing for transmittal 
                of any information, the Secretary shall balance 
                likely impact on flow of commerce with impact 
                on cargo safety and security. With respect to 
                requirements that may be imposed on carriers of 
                cargo, the timing for transmittal of 
                information shall take into account differences 
                among different modes of transportation, as 
                described in subparagraph (D).
                  (I) Where practicable, the regulations shall 
                avoid imposing requirements that are redundant 
                with one another or that are redundant with 
                requirements in other provisions of law.
                  (J) The Secretary shall determine whether it 
                is appropriate to provide transition periods 
                between promulgation of the regulations and the 
                effective date of the regulations and shall 
                prescribe such transition periods in the 
                regulations, as appropriate. The Secretary may 
                determine that different transition periods are 
                appropriate for different classes of affected 
                parties.
                  (K) With respect to requirements imposed on 
                carriers, the Secretary, in consultation with 
                the Postmaster General, shall determine whether 
                it is appropriate to impose the same or similar 
                requirements on shipments by the United States 
                Postal Service. If the Secretary determines 
                that such requirements are appropriate, then 
                they shall be set forth in the regulations.
                  (L) Not later than 15 days prior to 
                publication of a final rule pursuant to this 
                section, the Secretary shall transmit to the 
                Committees on Finance and Commerce, Science, 
                and Transportation of the Senate and the 
                Committees on Ways and Means and Transportation 
                and Infrastructure of the House of 
                Representatives a report setting forth--
                          (i) the proposed regulations;
                          (ii) an explanation of how particular 
                        requirements in the proposed 
                        regulations meet the needs of cargo 
                        safety and security;
                          (iii) an explanation of how the 
                        Secretary expects the proposed 
                        regulations to affect the commercial 
                        practices of affected parties;
                          (iv) an explanation of how the 
                        proposed regulations address particular 
                        comments received from interested 
                        parties; and
                          (v) if the Secretary determines to 
                        amend the proposed regulations after 
                        they have been transmitted to the 
                        Committees pursuant to this 
                        subparagraph, the Secretary shall 
                        transmit the amended regulations to 
                        such Committees no later than 5 days 
                        prior to the publication of the final 
                        rule.
          (4) Transmission of data.--Pursuant to paragraph (2), 
        not later than 1 year after the date of enactment of 
        this paragraph, the Secretary of Homeland Security, 
        after consultation with the Secretary of the Treasury, 
        shall establish an electronic data interchange system 
        through which the United States Customs and Border 
        Protection shall transmit to the Internal Revenue 
        Service information pertaining to cargoes of any 
        taxable fuel (as defined in section 4083 of the 
        Internal Revenue Code of 1986) that the United States 
        Customs and Border Protection has obtained 
        electronically under its regulations adopted in 
        accordance with paragraph (1). For this purpose, not 
        later than 1 year after the date of enactment of this 
        paragraph, all filers of required cargo information for 
        such taxable fuels (as so defined) must provide such 
        information to the United States Customs and Border 
        Protection through such electronic data interchange 
        system.
  (b) Documentation of Waterborne Cargo.--Part II of title IV 
of the Tariff Act of 1930 is amended by inserting after section 
431 the following new section:

``SEC. 431A. DOCUMENTATION OF WATERBORNE CARGO.

  ``(a) Applicability.--This section shall apply to all cargo 
to be exported that is moved by a vessel carrier from a port in 
the United States.
  ``(b) Documentation Required.--(1) No shipper of cargo 
subject to this section (including an ocean transportation 
intermediary that is a non-vessel-operating common carrier (as 
defined in section 3(17)(B) of the Shipping Act of 1984 (46 
U.S.C. App. 1702(17)(B)) may tender or cause to be tendered to 
a vessel carrier cargo subject to this section for loading on a 
vessel in a United States port, unless such cargo is properly 
documented pursuant to this subsection.
  ``(2) For the purposes of this subsection, cargo shall be 
considered properly documented if the shipper submits to the 
vessel carrier or its agent a complete set of shipping 
documents no later than 24 hours after the cargo is delivered 
to the marine terminal operator, but under no circumstances 
later than 24 hours prior to departure of the vessel.
  ``(3) A complete set of shipping documents shall include--
          ``(A) for shipments for which a shipper's export 
        declaration is required, a copy of the export 
        declaration or, if the shipper files such declarations 
        electronically in the Automated Export System, the 
        complete bill of lading, and the master or equivalent 
        shipping instructions, including the Internal 
        Transaction Number (ITN); or
          ``(B) for shipments for which a shipper's export 
        declaration is not required, a shipper's export 
        declaration exemption statement and such other 
        documents or information as the Secretary may by 
        regulation prescribe.
  ``(4) The Secretary shall by regulation prescribe the time, 
manner, and form by which shippers shall transmit documents or 
information required under this subsection to the Customs 
Service.
  ``(c) Loading Undocumented Cargo Prohibited.--
          ``(1) No marine terminal operator (as defined in 
        section 3(14) of the Shipping Act of 1984 (46 U.S.C. 
        App. 1702(14))) may load, or cause to be loaded, any 
        cargo subject to this section on a vessel unless 
        instructed by the vessel carrier operating the vessel 
        that such cargo has been properly documented in 
        accordance with this section.
          ``(2) When cargo is booked by 1 vessel carrier to be 
        transported on the vessel of another vessel carrier, 
        the booking carrier shall notify the operator of the 
        vessel that the cargo has been properly documented in 
        accordance with this section. The operator of the 
        vessel may rely on such notification in releasing the 
        cargo for loading aboard the vessel.
  ``(d) Reporting of Undocumented Cargo.--A vessel carrier 
shall notify the Customs Service of any cargo tendered to such 
carrier that is not properly documented pursuant to this 
section and that has remained in the marine terminal for more 
than 48 hours after being delivered to the marine terminal, and 
the location of the cargo in the marine terminal. For vessel 
carriers that are members of vessel sharing agreements (or any 
other arrangement whereby a carrier moves cargo on another 
carrier's vessel), the vessel carrier accepting the booking 
shall be responsible for reporting undocumented cargo, without 
regard to whether it operates the vessel on which the 
transportation is to be made.
  ``(e) Assessment of Penalties.--Whoever is found to have 
violated subsection (b) of this section shall be liable to the 
United States for civil penalties in a monetary amount up to 
the value of the cargo, or the actual cost of the 
transportation, whichever is greater.
  ``(f) Seizure of Undocumented Cargo.--
          ``(1) Any cargo that is not properly documented 
        pursuant to this section and has remained in the marine 
        terminal for more than 48 hours after being delivered 
        to the marine terminal operator shall be subject to 
        search, seizure, and forfeiture.
          ``(2) The shipper of any such cargo is liable to the 
        marine terminal operator and to the ocean carrier for 
        demurrage and other applicable charges for any 
        undocumented cargo which has been notified to or 
        searched or seized by the Customs Service for the 
        entire period the cargo remains under the order and 
        direction of the Customs Service. Unless the cargo is 
        seized by the Customs Service and forfeited, the marine 
        terminal operator and the ocean carrier shall have a 
        lien on the cargo for the amount of the demurrage and 
        other charges.
  ``(g) Effect on Other Provisions. --Nothing in this section 
shall be construed, interpreted, or applied to relieve or 
excuse any party from compliance with any obligation or 
requirement arising under any other law, regulation, or order 
with regard to the documentation or carriage of cargo.''.
  (c) Secretary.--For purposes of this section, the term 
``Secretary'' means the Secretary of the Treasury. If, at the 
time the regulations required by subsection (a)(1) are 
promulgated, the Customs Service is no longer located in the 
Department of the Treasury, then the Secretary of the Treasury 
shall exercise the authority under subsection (a) jointly with 
the Secretary of the Department in which the Customs Service is 
located.
                              ----------                              


                           TRADE ACT OF 1974

   Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act, with the following table of contents, may be cited as the 
``Trade Act of 1974''.

     * * * * * * *

        TITLE II--RELIEF FROM INJURY CAUSED BY IMPORT COMPETITION

     Chapter 1--Positive Adjustment by Industries Injured by Imports

     * * * * * * *

              TITLE III--RELIEF FROM UNFAIR TRADE PRACTICES

 Chapter 1--Enforcement of United States Rights Under Trade Agreements 
                 and Response to Foreign Trade Practices

     * * * * * * *
Sec. 310. Identification of trade liberalization priorities.

           *       *       *       *       *       *       *


TITLE I--NEGOTIATING AND OTHER AUTHORITY

           *       *       *       *       *       *       *


CHAPTER 6--CONGRESSIONAL LIAISON AND REPORTS

           *       *       *       *       *       *       *


SEC. 163. REPORTS.

  (a) Annual Report on Trade Agreements Program and National 
Trade Policy Agenda.--
          (1) The President shall submit to the Congress during 
        each calendar year (but not later than March 1 of that 
        year) a report on--
                  (A) the operation of the trade agreements 
                program, and the provision of import relief and 
                adjustment assistance to workers and firms, 
                under this Act during the preceding calendar 
                year; and
                  (B) the national trade policy agenda for the 
                year in which the report is submitted.
          (2) The report shall include, with respect to the 
        matters referred to in paragraph (1)(A), information 
        regarding--
                  (A) new trade negotiations;
                  (B) changes made in duties and nontariff 
                barriers and other distortions of trade of the 
                United States;
                  (C) reciprocal concessions obtained;
                  (D) changes in trade agreements (including 
                the incorporation therein of actions taken for 
                import relief and compensation provided 
                therefor);
                  (E) the extension or withdrawal of 
                nondiscriminatory treatment by the United 
                States with respect to the products of foreign 
                countries;
                  (F) the extension, modification, withdrawal, 
                suspension, or limitation of preferential 
                treatment to exports of developing countries;
                  (G) the results of actions to obtain the 
                removal of foreign trade restrictions 
                (including discriminatory restrictions) against 
                United States exports and the removal of 
                foreign practices which discriminate against 
                United States service industries (including 
                transportation and tourism) and investment;
                  (H) the measures being taken to seek the 
                removal of other significant foreign import 
                restrictions;
                  (I) each of the referrals made under section 
                141(d)(1)(B) and any action taken with respect 
                to such referral;
                  (J) other information relating to the trade 
                agreements program and to the agreements 
                entered into thereunder; and
                  (K) the number of applications filed for 
                adjustment assistance for workers and firms, 
                the number of such applications which were 
                approved, and the extent to which adjustment 
                assistance has been provided under such 
                approved applications.
          (3)(A) The national trade policy agenda required 
        under paragraph (1)(B) for the year in which a report 
        is submitted shall be in the form of a statement of--
                  (i) the trade policy objectives and 
                priorities of the United States for the year, 
                and the reasons therefor;
                  (ii) the actions proposed, or anticipated, to 
                be undertaken during the year to achieve such 
                objectives and priorities, including, but not 
                limited to, actions authorized under the trade 
                laws and negotiations with foreign countries;
                  (iii) any proposed legislation necessary or 
                appropriate to achieve any of such objectives 
                or priorities; and
                  (iv) the progress that was made during the 
                preceding year in achieving the trade policy 
                objectives and priorities included in the 
                statement provided for that year under this 
                paragraph.
          (B) The President may separately submit any 
        information referred to in subparagraph (A) to the 
        Congress in confidence if the President considers 
        confidentiality appropriate.
          (C) Before submitting the national trade policy 
        agenda for any year, the President shall seek advice 
        from the appropriate advisory committees established 
        under section 135 and shall consult with the 
        appropriate committees of the Congress.
          (D) The United States Trade Representative (hereafter 
        referred to in this section as the ``Trade 
        Representative``'') and other appropriate officials of 
        the United States Government shall consult periodically 
        with the appropriate committees of the Congress 
        regarding the annual objectives and priorities set 
        forth in each national trade policy agenda with respect 
        to--
                  (i) the status and results of the actions 
                that have been undertaken to achieve the 
                objectives and priorities; and
                  (ii) any development which may require, or 
                result in, changes to any of such objectives or 
                priorities.
  (b) Annual Trade Projection Report.--
          (1) In order for the Congress to be informed of the 
        impact of foreign trade barriers and macroeconomic 
        factors on the balance of trade of the United States, 
        the Trade Representative and the Secretary of the 
        Treasury shall jointly prepare and submit to the 
        Committee on Finance of the Senate and the Committee on 
        Ways and Means of the House of Representatives 
        (hereafter referred to in this subsection as the 
        ``Committees'') on or before March 1 of each year a 
        report which consists of--
                  (A) a review and analysis of--
                          (i) the merchandise balance of trade,
                          (ii) the goods and services balance 
                        of trade,
                          (iii) the balance on the current 
                        account,
                          (iv) the external debt position,
                          (v) the exchange rates,
                          (vi) the economic growth rates,
                          (vii) the deficit or surplus in the 
                        fiscal budget, and
                          (viii) the impact on United States 
                        trade of market barriers and other 
                        unfair practices,
                of countries that are major trading partners of 
                the United States, including, as appropriate, 
                groupings of such countries;
                  (B) projections for each of the economic 
                factors described in subparagraph (A) (except 
                those described in clauses (v) and (viii)) for 
                each of the countries and groups of countries 
                referred to in subparagraph (A) for the year in 
                which the report is submitted and for the 
                succeeding year; and
                  (C) conclusions and recommendations, based 
                upon the projections referred to in 
                subparagraph (B), for policy changes, including 
                trade policy, exchange rate policy, fiscal 
                policy, and other policies that should be 
                implemented to improve the outlook.
          (2) To the extent that subjects referred to in 
        paragraph (1) (A), (B), or (C) are covered in the 
        national trade policy agenda required under subsection 
        (a)(1)(B) or in other reports required by this Act or 
        other law, the Trade Representative and the Secretary 
        of the Treasury may, as appropriate, draw on the 
        information, analysis, and conclusions, if any, in 
        those reports for the purposes of preparing the report 
        required by this subsection.
          (3) The Trade Representative and the Secretary of the 
        Treasury shall consult with the Chairman of the Board 
        of Governors of the Federal Reserve System in the 
        preparation of each report required under this 
        subsection.
          (4) The Trade Representative and the Secretary of the 
        Treasury may separately submit any information, 
        analysis, or conclusion referred to in paragraph (1) to 
        the Committees in confidence if the Trade 
        Representative and the Secretary consider 
        confidentiality appropriate.
          (5) After submission of each report required under 
        paragraph (1), the Trade Representative and the 
        Secretary of the Treasury shall consult with each of 
        the Committees with respect to the report.
  (c) ITC Reports.--The United States International Trade 
Commission shall submit to the Congress, at least once a year, 
a factual report on the operation of the trade agreements 
program.

           *       *       *       *       *       *       *


             TITLE III--RELIEF FROM UNFAIR TRADE PRACTICES

 CHAPTER 1--ENFORCEMENT OF UNITED STATES RIGHTS UNDER TRADE AGREEMENTS 
            AND RESPONSE TO CERTAIN FOREIGN TRADE PRACTICES

SEC. 301. ACTIONS BY UNITED STATES TRADE REPRESENTATIVE.

  (a) Mandatory Action.--
          (1) If the United States Trade Representative 
        determines under section 304(a)(1) that--
                  (A) the rights of the United States under any 
                trade agreement are being denied; or
                  (B) an act, policy, or practice of a foreign 
                country--
                          (i) violates, or is inconsistent 
                        with, the provisions of, or otherwise 
                        denies benefits to the United States 
                        under, any trade agreement, or
                          (ii) is unjustifiable and burdens or 
                        restricts United States commerce;
        the Trade Representative shall take action authorized 
        in subsection (c), subject to the specific direction, 
        if any, of the President regarding any such action, and 
        shall take all other appropriate and feasible action 
        within the power of the President that the President 
        may direct the Trade Representative to take under this 
        subsection, to enforce such rights or to obtain the 
        elimination of such act, policy, or practice.
Actions may be taken that are within the power of the President 
with respect to trade in any goods or services, or with respect 
to any other area of pertinent relations with the foreign 
country.
          (2) The Trade Representative is not required to take 
        action under paragraph (1) in any case in which--
                  (A) the Dispute Settlement Body (as defined 
                in section 121(5) of the Uruguay Round 
                Agreements Act) has adopted a report, or a 
                ruling issued under the formal dispute 
                settlement proceeding provided under any other 
                trade agreement finds, that--
                          (i) the rights of the United States 
                        under a trade agreement are not being 
                        denied, or
                          (ii) the act, policy, or practice--
                                  (I) is not a violation of, or 
                                inconsistent with, the rights 
                                of the United States, or
                                  (II) does not deny, nullify, 
                                or impair benefits to the 
                                United States under any trade 
                                agreement; or
                  (B) the Trade Representative finds that--
                          (i) the foreign country is taking 
                        satisfactory measures to grant the 
                        rights of the United States under a 
                        trade agreement,
                          (ii) the foreign country has--
                                  (I) agreed to eliminate or 
                                phase out the act, policy, or 
                                practice, or
                                  (II) agreed to an imminent 
                                solution to the burden or 
                                restriction on United States 
                                commerce that is satisfactory 
                                to the Trade Representative,
                          (iii) it is impossible for the 
                        foreign country to achieve the results 
                        described in clause (i) or (ii), as 
                        appropriate, but the foreign country 
                        agrees to provide to the United States 
                        compensatory trade benefits that are 
                        satisfactory to the Trade 
                        Representative,
                          (iv) in extraordinary cases, where 
                        the taking of action under this 
                        subsection would have an adverse impact 
                        on the United States economy 
                        substantially out of proportion to the 
                        benefits of such action, taking into 
                        account the impact of not taking such 
                        action on the credibility of the 
                        provisions of this chapter, or
                          (v) the taking of action under this 
                        subsection would cause serious harm to 
                        the national security of the United 
                        States.
          (3) Any action taken under paragraph (1) to eliminate 
        an act, policy, or practice shall be devised so as to 
        affect goods or services of the foreign country in an 
        amount that is equivalent in value to the burden or 
        restriction being imposed by that country on United 
        States commerce.
  (b) Discretionary Action.--If the Trade Representative 
determines under section 304(a)(1) that--
          (1) an act, policy, or practice of a foreign country 
        is unreasonable or discriminatory and burdens or 
        restricts United States commerce, and
          (2) action by the United States is appropriate, the 
        Trade Representative shall take all appropriate and 
        feasible action authorized under subsection (c), 
        subject to the specific direction, if any, of the 
        President regarding any such action, and all other 
        appropriate and feasible action within the power of the 
        President that the President may direct the Trade 
        Representative to take under this subsection, to obtain 
        the elimination of that act, policy, or practice.
Actions may be taken that are within the power of the President 
with respect to trade in any goods or services, or with respect 
to any other area of pertinent relations with the foreign 
country.
  (c) Scope of Authority.--
          (1) For purposes of carrying out the provisions of 
        subsection (a) or (b), the Trade Representative is 
        authorized to--
                  (A) suspend, withdraw, or prevent the 
                application of, benefits of trade agreement 
                concessions to carry out a trade agreement with 
                the foreign country referred to in such 
                subsection;
                  (B) impose duties or other import 
                restrictions on the goods of, and, 
                notwithstanding any other provision of law, 
                fees or restrictions on the services of, such 
                foreign country for such time as the Trade 
                Representative determines appropriate;
                  (C) in a case in which the act, policy, or 
                practice also fails to meet the eligibility 
                criteria for receiving duty-free treatment 
                under subsections (b) and (c) of section 502 of 
                this Act, subsections (b) and (c) of section 
                212 of the Caribbean Basin Economic Recovery 
                Act (19 U.S.C. 2702(b) and (c)), or subsections 
                (c) and (d) of section 203 of the Andean Trade 
                Preference Act (19 U.S.C. 3202(c) and (d)), 
                withdraw, limit, or suspend such treatment 
                under such provisions, notwithstanding the 
                provisions of subsection (a)(3) of this 
                section; or
                  (D) enter into binding agreements with such 
                foreign country that commit such foreign 
                country to--
                          (i) eliminate, or phase out, the act, 
                        policy, or practice that is the subject 
                        of the action to be taken under 
                        subsection (a) or (b),
                          (ii) eliminate any burden or 
                        restriction on United States commerce 
                        resulting from such act, policy, or 
                        practice, or
                          (iii) provide the United States with 
                        compensatory trade benefits that--
                                  (I) are satisfactory to the 
                                Trade Representative, and
                                  (II) meet the requirements of 
                                paragraph (4).
          (2)(A) Notwithstanding any other provision of law 
        governing any service sector access authorization, and 
        in addition to the authority conferred in paragraph 
        (1), the Trade Representative may, for purposes of 
        carrying out the provisions of subsection (a) or (b)--
                  (i) restrict, in the manner and to the extent 
                the Trade Representative determines 
                appropriate, the terms and conditions of any 
                such authorization, or
                  (ii) deny the issuance of any such 
                authorization.
          (B) Actions described in subparagraph (A) may only be 
        taken under this section with respect to service sector 
        access authorizations granted, or applications therefor 
        pending, on or after the date on which--
                  (i) a petition is filed under section 302(a), 
                or
                  (ii) a determination to initiate an 
                investigation is made by the Trade 
                Representative under section 302(b).
          (C) Before the Trade Representative takes any action 
        under this section involving the imposition of fees or 
        other restrictions on the services of a foreign 
        country, the Trade Representative shall, if the 
        services involved are subject to regulation by any 
        agency of the Federal Government or of any State, 
        consult, as appropriate, with the head of the agency 
        concerned.
          (3) The actions the Trade Representative is 
        authorized to take under subsection (a) or (b) may be 
        taken against any goods or economic sector--
                  (A) on a nondiscriminatory basis or solely 
                against the foreign country described in such 
                subsection, and
                  (B) without regard to whether or not such 
                goods or economic sector were involved in the 
                act, policy, or practice that is the subject of 
                such action.
          (4) Any trade agreement described in paragraph 
        (1)(D)(iii) shall provide compensatory trade benefits 
        that benefit the economic sector which includes the 
        domestic industry that would benefit from the 
        elimination of the act, policy, or practice that is the 
        subject of the action to be taken under subsection (a) 
        or (b), or benefit the economic sector as closely 
        related as possible to such economic sector, unless--
                  (A) the provision of such trade benefits is 
                not feasible, or
                  (B) trade benefits that benefit any other 
                economic sector would be more satisfactory than 
                such trade benefits.
          (5) If the Trade Representative determines that 
        actions to be taken under subsection (a) or (b) are to 
        be in the form of import restrictions, the Trade 
        Representative shall--
                  (A) give preference to the imposition of 
                duties over the imposition of other import 
                restrictions, and
                  (B) if an import restriction other than a 
                duty is imposed, consider substituting, on an 
                incremental basis, an equivalent duty for such 
                other import restriction.
          (6) Any action taken by the Trade Representative 
        under this section with respect to export targeting 
        shall, to the extent possible, reflect the full benefit 
        level of the export targeting to the beneficiary over 
        the period during which the action taken has an effect.
  (d) Definitions and Special Rules.--For purposes of this 
chapter--
          (1) The term ``commerce'' includes, but is not 
        limited to--
                  (A) services (including transfers of 
                information) associated with international 
                trade, whether or not such services are related 
                to specific goods, and
                  (B) foreign direct investment by United 
                States persons with implications for trade in 
                goods or services.
          (2) An act, policy, or practice of a foreign country 
        that burdens or restricts United States commerce may 
        include the provision, directly or indirectly, by that 
        foreign country of subsidies for the construction of 
        vessels used in the commercial transportation by water 
        of goods between foreign countries and the United 
        States.
          (3)(A) An act, policy, or practice is unreasonable if 
        the act, policy, or practice, while not necessarily in 
        violation of, or inconsistent with, the international 
        legal rights of the United States, is otherwise unfair 
        and inequitable.
          (B) Acts, policies, and practices that are 
        unreasonable include, but are not limited to, any act, 
        policy, or practice, or any combination of acts, 
        policies, or practices, which--
                  (i) denies fair and equitable--
                          (I) opportunities for the 
                        establishment of an enterprise,
                          (II) provision of adequate and 
                        effective protection of intellectual 
                        property rights notwithstanding the 
                        fact that the foreign country may be in 
                        compliance with the specific 
                        obligations of the Agreement on Trade-
                        Related Aspects of Intellectual 
                        Property Rights referred to in section 
                        101(d)(15) of the Uruguay Round 
                        Agreements Act,
                          (III) nondiscriminatory market access 
                        opportunities for United States persons 
                        that rely upon intellectual property 
                        protection, or
                          (IV) market opportunities, including 
                        the toleration by a foreign government 
                        of systematic anticompetitive 
                        activities by enterprises or among 
                        enterprises in the foreign country that 
                        have the effect of restricting, on a 
                        basis that is inconsistent with 
                        commercial considerations, access of 
                        United States goods or services to a 
                        foreign market,
                  (ii) constitutes export targeting, or
                  (iii) constitutes a persistent pattern of 
                conduct that--
                          (I) denies workers the right of 
                        association,
                          (II) denies workers the right to 
                        organize and bargain collectively,
                          (III) permits any form of forced or 
                        compulsory labor,
                          (IV) fails to provide a minimum age 
                        for the employment of children, or
                          (V) fails to provide standards for 
                        minimum wages, hours of work, and 
                        occupational safety and health of 
                        workers.
          (C)(i) Acts, policies, and practices of a foreign 
        country described in subparagraph (B)(iii) shall not be 
        treated as being unreasonable if the Trade 
        Representative determines that--
                  (I) the foreign country has taken, or is 
                taking, actions that demonstrate a significant 
                and tangible overall advancement in providing 
                throughout the foreign country (including any 
                designated zone within the foreign country) the 
                rights and other standards described in the 
                subclauses of subparagraph (B)(iii), or
                  (II) such acts, policies, and practices are 
                not inconsistent with the level of economic 
                development of the foreign country.
          (ii) The Trade Representative shall publish in the 
        Federal Register any determination made under clause 
        (i), together with a description of the facts on which 
        such determination is based.
          (D) For purposes of determining whether any act, 
        policy, or practice is unreasonable, reciprocal 
        opportunities in the United States for foreign 
        nationals and firms shall be taken into account, to the 
        extent appropriate.
          (E) The term ``export targeting'' means any 
        government plan or scheme consisting of a combination 
        of coordinated actions (whether carried out severally 
        or jointly) that are bestowed on a specific enterprise, 
        industry, or group thereof, the effect of which is to 
        assist the enterprise, industry, or group to become 
        more competitive in the export of a class or kind of 
        merchandise.
          (F)(i) For the purposes of subparagraph (B)(i)(II), 
        adequate and effective protection of intellectual 
        property rights includes adequate and effective means 
        under the laws of the foreign country for persons who 
        are not citizens or nationals of such country to 
        secure, exercise, and enforce rights and enjoy 
        commercial benefits relating to patents, trademarks, 
        copyrights and related rights, mask works, trade 
        secrets, and plant breeder's rights.
          (ii) For purposes of subparagraph (B)(i)(IV), the 
        denial of fair and equitable nondiscriminatory market 
        access opportunities includes restrictions on market 
        access related to the use, exploitation, or enjoyment 
        of commercial benefits derived from exercising 
        intellectual property rights in protected works or 
        fixations or products embodying protected works.
          (4)(A) An act, policy, or practice is unjustifiable 
        if the act, policy, or practice is in violation of, or 
        inconsistent with, the international legal rights of 
        the United States.
          (B) Acts, policies, and practices that are 
        unjustifiable include, but are not limited to, any act, 
        policy, or practice described in subparagraph (A) which 
        denies national or most-favored-nation treatment or the 
        right of establishment or protection of intellectual 
        property rights.
          (5) Acts, policies, and practices that are 
        discriminatory include, when appropriate, any act, 
        policy, and practice which denies national or most-
        favored-nation treatment to United States goods, 
        services, or investment.
          (6) The term ``service sector access authorization'' 
        means any license, permit, order, or other 
        authorization, issued under the authority of Federal 
        law, that permits a foreign supplier of services access 
        to the United States market in a service sector 
        concerned.
          (7) The term ``foreign country'' includes any foreign 
        instrumentality. Any possession or territory of a 
        foreign country that is administered separately for 
        customs purposes shall be treated as a separate foreign 
        country.
          (8) The term ``Trade Representative'' means the 
        United States Trade Representative.
          (9) The term ``interested persons'', only for 
        purposes of sections 302(a)(4)(B), 304(b)(1)(A), 
        306(c)(2), and 307(a)(2), includes, but is not limited 
        to, domestic firms and workers, representatives of 
        consumer interests, United States product exporters, 
        and any industrial user of any goods or services that 
        may be affected by actions taken under subsection (a) 
        or (b).

           *       *       *       *       *       *       *


SEC. 306. MONITORING OF FOREIGN COMPLIANCE.

  (a) In General.--The Trade Representative shall monitor the 
implementation of each measure undertaken, or agreement that is 
entered into, by a foreign country to provide a satisfactory 
resolution of a matter subject to investigation under this 
chapter or subject to dispute settlement proceedings to enforce 
the rights of the United States under a trade agreement 
providing for such proceedings.
  (b) Further Action.--
          (1) In general.--If, on the basis of the monitoring 
        carried out under subsection (a), the Trade 
        Representative considers that a foreign country is not 
        satisfactorily implementing a measure or agreement 
        referred to in subsection (a), the Trade Representative 
        shall determine what further action the Trade 
        Representative shall take under section 301(a). For 
        purposes of section 301, any such determination shall 
        be treated as a determination made under section 
        304(a)(1).
          (2) WTO dispute settlement recommendations.--
                  (A) Failure to implement recommendation.--If 
                the measure or agreement referred to in 
                subsection (a) concerns the implementation of a 
                recommendation made pursuant to dispute 
                settlement proceedings under the World Trade 
                Organization, and the Trade Representative 
                considers that the foreign country has failed 
                to implement it, the Trade Representative shall 
                make the determination in paragraph (1) no 
                later than 30 days after the expiration of the 
                reasonable period of time provided for such 
                implementation under paragraph 21 of the 
                Understanding on Rules and Procedures Governing 
                the Settlement of Disputes that is referred to 
                in section 101(d)(16) of the Uruguay Round 
                Agreements Act.
                  (B) Revision of retaliation list and 
                action.--
                          (i) In general.--Except as provided 
                        in clause (ii), in the event that the 
                        United States initiates a retaliation 
                        list or takes any other action 
                        described in section 301(c)(1)(A) or 
                        (B) against the goods of a foreign 
                        country or countries because of the 
                        failure of such country or countries to 
                        implement the recommendation made 
                        pursuant to a dispute settlement 
                        proceeding under the World Trade 
                        Organization, the Trade Representative 
                        shall periodically revise the list or 
                        action to affect other goods of the 
                        country or countries that have failed 
                        to implement the recommendation.
                          (ii) Exception.--The Trade 
                        Representative is not required to 
                        revise the retaliation list or the 
                        action described in clause (i) with 
                        respect to a country, if--
                                  (I) the Trade Representative 
                                determines that implementation 
                                of a recommendation made 
                                pursuant to a dispute 
                                settlement proceeding described 
                                in clause (i) by the country is 
                                imminent; or
                                  (II) the Trade Representative 
                                together with the petitioner 
                                involved in the initial 
                                investigation under this 
                                chapter (or if no petition was 
                                filed, the affected United 
                                States industry) agree that it 
                                is unnecessary to revise the 
                                retaliation list.
                  (C) Schedule for revising list or action.--
                The Trade Representative shall, 120 days after 
                the date the retaliation list or other section 
                301(a) action is first taken, and every 180 
                days thereafter, review the list or action 
                taken and revise, in whole or in part, the list 
                or action to affect other goods of the subject 
                country or countries.
                  (D) Standards for revising list or action.--
                In revising any list or action against a 
                country or countries under this subsection, the 
                Trade Representative shall act in a manner that 
                is most likely to result in the country or 
                countries implementing the recommendations 
                adopted in the dispute settlement proceeding or 
                in achieving a mutually satisfactory solution 
                to the issue that gave rise to the dispute 
                settlement proceeding. The Trade Representative 
                shall consult with the petitioner, if any, 
                involved in the initial investigation under 
                this chapter.
                  (E) Retaliation list.--The term ``retaliation 
                list'' means the list of products of a foreign 
                country or countries that have failed to comply 
                with the report of the panel or Appellate Body 
                of the WTO and with respect to which the Trade 
                Representative is imposing duties above the 
                level that would otherwise be imposed under the 
                Harmonized Tariff Schedule of the United 
                States.
                  (F) Requirement to include reciprocal goods 
                on retaliation list.--The Trade Representative 
                shall include on the retaliation list, and on 
                any revised lists, reciprocal goods of the 
                industries affected by the failure of the 
                foreign country or countries to implement the 
                recommendation made pursuant to a dispute 
                settlement proceeding under the World Trade 
                Organization, except in cases where existing 
                retaliation and its corresponding preliminary 
                retaliation list do not already meet this 
                requirement.
  (c) Consultations.--Before making any determination under 
subsection (b), the Trade Representative shall--
          (1) consult with the petitioner, if any, involved in 
        the initial investigation under this chapter and with 
        representatives of the domestic industry concerned; and
          (2) provide an opportunity for the presentation of 
        views by interested persons.

SEC. 307. MODIFICATION AND TERMINATION OF ACTIONS.

  (a) In General.--
          (1) The Trade Representative may modify or terminate 
        any action, subject to the specific direction, if any, 
        of the President with respect to such action, that is 
        being taken under section 301 if--
                  (A) any of the conditions described in 
                section 301(a)(2) exist,
                  (B) the burden or restriction on United 
                States commerce of the denial rights, or of the 
                acts, policies, and practices, that are the 
                subject of such action has increased or 
                decreased, or
                  (C) such action is being taken under section 
                301(b) and is no longer appropriate.
          (2) Before taking any action under paragraph (1) to 
        modify or terminate any action taken under section 301, 
        the Trade Representative shall consult with the 
        petitioner, if any, and with representatives of the 
        domestic industry concerned, and shall provide 
        opportunity for the presentation of views by other 
        interested persons affected by the proposed 
        modification or termination concerning the effects of 
        the modification or termination and whether any 
        modification or termination of the action is 
        appropriate.
  (b) Notice; Report to Congress.--The Trade Representative 
shall promptly publish in the Federal Register notice of, and 
report in writing to the Congress with respect to, any 
modification or termination of any action taken under section 
301 and the reasons therefor.
  (c) Review of Necessity.--
          (1) If--
                  (A) a particular action has been taken under 
                section 301 during any 4-year period, and
                  (B) neither the petitioner nor any 
                representative of the domestic industry which 
                benefits from such action has submitted to the 
                Trade Representative during the last 60 days of 
                such 4-year period a written request for the 
                continuation of such action,
        such action shall terminate at the close of such 4-year 
        period.
          (2) The Trade Representative shall notify by mail the 
        petitioner and representatives of the domestic industry 
        described in paragraph (1)(B) of any termination of 
        action by reason of paragraph (1) at least 60 days 
        before the date of such termination.
          (3) If a request is submitted to the Trade 
        Representative under paragraph (1)(B) to continue 
        taking a particular action under section 301, the Trade 
        Representative shall conduct a review of--
                  (A) the effectiveness in achieving the 
                objectives of section 301 of--
                          (i) such action, and
                          (ii) other actions that could be 
                        taken (including actions against other 
                        products or services), and
                  (B) the effects of such actions on the United 
                States economy, including consumers.

           *       *       *       *       *       *       *


SEC. 310. IDENTIFICATION OF TRADE EXPANSION PRIORITIES.

  (a) Identification.--
          (1) Within 180 days after the submission in calendar 
        year 1995 of the report required by section 181(b), the 
        Trade Representative shall--
                  (A) review United States trade expansion 
                priorities,
                  (B) identify priority foreign country 
                practices, the elimination of which is likely 
                to have the most significant potential to 
                increase United States exports, either directly 
                or through the establishment of a beneficial 
                precedent, and
                  (C) submit to the Committee on Finance of the 
                Senate and the Committee on Ways and Means of 
                the House of Representatives and publish in the 
                Federal Register a report on the priority 
                foreign country practices identified.
          (2) In identifying priority foreign country practices 
        under paragraph (1) of this section, the Trade 
        Representative shall take into account all relevant 
        factors, including--
                  (A) the major barriers and trade distorting 
                practices described in the National Trade 
                Estimate Report required under section 181(b);
                  (B) the trade agreements to which a foreign 
                country is a party and its compliance with 
                those agreements;
                  (C) the medium- and long-term implications of 
                foreign government procurement plans; and
                  (D) the international competitive position 
                and export potential of United States products 
                and services.
          (3) The Trade Representative may include in the 
        report, if appropriate--
                  (A) a description of foreign country 
                practices that may in the future warrant 
                identification as priority foreign country 
                practices; and
                  (B) a statement about other foreign country 
                practices that were not identified because they 
                are already being addressed by provisions of 
                United States trade law, by existing bilateral 
                trade agreements, or as part of trade 
                negotiations with other countries and progress 
                is being made toward the elimination of such 
                practices.
  (b) Initiation of Investigations.--By no later than the date 
which is 21 days after the date on which a report is submitted 
to the appropriate congressional committees under subsection 
(a)(1), the Trade Representative shall initiate under section 
302(b)(1) investigations under this chapter with respect to all 
of the priority foreign country practices identified.
  (c) Agreements for the Elimination of Barriers.--In the 
consultations with a foreign country that the Trade 
Representative is required to request under section 303(a) with 
respect to an investigation initiated by reason of subsection 
(b), the Trade Representative shall seek to negotiate an 
agreement that provides for the elimination of the practices 
that are the subject of the investigation as quickly as 
possible or, if elimination of the practices is not feasible, 
an agreement that provides for compensatory trade benefits.
  (d) Reports.--The Trade Representative shall include in the 
semiannual report required by section 309 a report on the 
status of any investigations initiated pursuant to subsection 
(b) and, where appropriate, the extent to which such 
investigations have led to increased opportunities for the 
export of products and services of the United States.

           *       *       *       *       *       *       *

                              ----------                              


    SECTION 401 OF THE SAFETY AND ACCOUNTABILITY FOR EVERY PORT ACT


SEC. 401. TRADE AND CUSTOMS REVENUE FUNCTIONS OF THE DEPARTMENT.

  (a) Trade and Customs Revenue Functions.--
          (1) Designation of appropriate official.--The 
        Secretary shall designate an appropriate senior 
        official in the office of the Secretary who shall--
                  (A) ensure that the trade and customs revenue 
                functions of the Department are coordinated 
                within the Department and with other Federal 
                departments and agencies, and that the impact 
                on legitimate trade is taken into account in 
                any action impacting the functions; and
                  (B) monitor and report to Congress on the 
                Department's mandate to ensure that the trade 
                and customs revenue functions of the Department 
                are not diminished, including how spending, 
                operations, and personnel related to these 
                functions have kept pace with the level of 
                trade entering the United States.
          (2) Director of trade policy.--There shall be a 
        Director of Trade Policy (in this subsection referred 
        to as the ``Director''), who shall be subject to the 
        direction and control of the official designated 
        pursuant to paragraph (1). The Director shall--
                  (A) advise the official designated pursuant 
                to paragraph (1) regarding all aspects of 
                Department policies relating to the trade and 
                customs revenue functions of the Department;
                  (B) coordinate the development of Department-
                wide policies regarding trade and customs 
                revenue functions and trade facilitation; and
                  (C) coordinate the trade and customs revenue-
                related policies of the Department with the 
                policies of other Federal departments and 
                agencies.
  (b) Study; Report.--
          (1) In general.--The Comptroller General of the 
        United States shall conduct a study evaluating the 
        extent to which the Department of Homeland Security is 
        meeting its obligations under section 412(b) of the 
        Homeland Security Act of 2002 (6 U.S.C. 212(b)) with 
        respect to the maintenance of customs revenue 
        functions.
          (2) Analysis.--The study shall include an analysis 
        of--
                  (A) the extent to which the customs revenue 
                functions carried out by the former United 
                States Customs Service have been consolidated 
                with other functions of the Department 
                (including the assignment of noncustoms revenue 
                functions to personnel responsible for customs 
                revenue collection), discontinued, or 
                diminished following the transfer of the United 
                States Customs Service to the Department;
                  (B) the extent to which staffing levels or 
                resources attributable to customs revenue 
                functions have decreased since the transfer of 
                the United States Customs Service to the 
                Department; and
                  (C) the extent to which the management 
                structure created by the Department ensures 
                effective trade facilitation and customs 
                revenue collection.
          (3) Report.--Not later than 180 days after the date 
        of the enactment of this Act, the Comptroller General 
        shall submit to the appropriate congressional 
        committees a report on the results of the study 
        conducted under subsection (a).
          (4) Maintenance of functions.--Not later than 
        September 30, 2007, the Secretary shall ensure that the 
        requirements of section 412(b) of the Homeland Security 
        Act of 2002 (6 U.S.C. 212(b)) are fully satisfied and 
        shall report to the Committee on Finance of the Senate 
        and the Committee on Ways and Means of the House of 
        Representatives regarding implementation of this 
        paragraph.
          (5) Definition.--In this section, the term ``customs 
        revenue functions'' means the functions described in 
        section 412(b)(2) of the Homeland Security Act of 2002 
        (6 U.S.C. 212(b)(2)).
  (c) Consultation on Trade and Customs Revenue Functions.--
          (1) Business community consultations.--The Secretary 
        shall consult with representatives of the business 
        community involved in international trade, including 
        seeking the advice and recommendations of the 
        Commercial Operations Advisory Committee, on Department 
        policies and actions that have a significant impact on 
        international trade and customs revenue functions.
          (2) Congressional consultation and notification.--
                  (A) In general.--Subject to subparagraph (B), 
                the Secretary shall notify the appropriate 
                congressional committees not later than 30 days 
                prior to the finalization of any Department 
                policies, initiatives, or actions that will 
                have a major impact on trade and customs 
                revenue functions. Such notifications shall 
                include a description of the proposed policies, 
                initiatives, or actions and any comments or 
                recommendations provided by the Commercial 
                Operations Advisory Committee and other 
                relevant groups regarding the proposed 
                policies, initiatives, or actions.
                  (B) Exception.--If the Secretary determines 
                that it is important to the national security 
                interest of the United States to finalize any 
                Department policies, initiatives, or actions 
                prior to the consultation described in 
                subparagraph (A), the Secretary shall--
                          (i) notify and provide any 
                        recommendations of the Commercial 
                        Operations Advisory Committee received 
                        to the appropriate congressional 
                        committees not later than 45 days after 
                        the date on which the policies, 
                        initiatives, or actions are finalized; 
                        and
                          (ii) to the extent appropriate, 
                        modify the policies, initiatives, or 
                        actions based upon the consultations 
                        with the appropriate congressional 
                        committees.
  (d) Notification of Reorganization of Customs Revenue 
Functions.--
          (1) In general.--Not less than 45 days prior to any 
        change in the organization of any of the customs 
        revenue functions of the Department, the Secretary 
        shall notify the Committee on Appropriations, the 
        Committee on Finance, and the Committee on Homeland 
        Security and Governmental Affairs of the Senate, and 
        the Committee on Appropriations, the Committee on 
        Homeland Security, and the Committee on Ways and Means 
        of the House of Representatives of the specific assets, 
        functions, or personnel to be transferred as part of 
        such reorganization, and the reason for such transfer. 
        The notification shall also include--
                  (A) an explanation of how trade enforcement 
                functions will be impacted by the 
                reorganization;
                  (B) an explanation of how the reorganization 
                meets the requirements of section 412(b) of the 
                Homeland Security Act of 2002 (6 U.S.C. 212(b)) 
                that the Department not diminish the customs 
                revenue and trade facilitation functions 
                formerly performed by the United States Customs 
                Service; and
                  (C) any comments or recommendations provided 
                by the Commercial Operations Advisory Committee 
                regarding such reorganization.
          (2) Analysis.--Any congressional committee referred 
        to in paragraph (1) may request that the Commercial 
        Operations Advisory Committee provide a report to the 
        committee analyzing the impact of the reorganization 
        and providing any recommendations for modifying the 
        reorganization.
          (3) Report.--Not later than 1 year after any 
        reorganization referred to in paragraph (1) takes 
        place, the Secretary, in consultation with the 
        Commercial Operations Advisory Committee, shall submit 
        a report to the Committee on Finance of the Senate and 
        the Committee on Ways and Means of the House of 
        Representatives. Such report shall include an 
        assessment of the impact of, and any suggested 
        modifications to, such reorganization.
                              ----------                              


                    SECURITIES EXCHANGE ACT OF 1934


TITLE I--REGULATION OF SECURITIES EXCHANGES

           *       *       *       *       *       *       *



                      periodical and other reports

  Sec. 13. (a) Every issuer of a security registered pursuant 
to section 12 of this title shall file with the Commission, in 
accordance with such rules and regulations as the Commission 
may prescribe as necessary or appropriate for the proper 
protection of investors and to insure fair dealing in the 
security--
          (1) such information and documents (and such copies 
        thereof) as the Commission shall require to keep 
        reasonably current the information and documents 
        required to be included in or filed with an application 
        or registration statement filed pursuant to section 12, 
        except that the Commission may not require the filing 
        of any material contract wholly executed before July 1, 
        1962.
          (2) such annual reports (and such copies thereof), 
        certified if required by the rules and regulations of 
        the Commission by independent public accountants, and 
        such quarterly reports (and such copies thereof), as 
        the Commission may prescribe.
Every issuer of a security registered on a national securities 
exchange shall also file a duplicate original of such 
information, documents, and reports with the exchange. In any 
registration statement, periodic report, or other reports to be 
filed with the Commission, an emerging growth company need not 
present selected financial data in accordance with section 
229.301 of title 17, Code of Federal Regulations, for any 
period prior to the earliest audited period presented in 
connection with its first registration statement that became 
effective under this Act or the Securities Act of 1933 and, 
with respect to any such statement or reports, an emerging 
growth company may not be required to comply with any new or 
revised financial accounting standard until such date that a 
company that is not an issuer (as defined under section 2(a) of 
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(a))) is required 
to comply with such new or revised accounting standard, if such 
standard applies to companies that are not issuers.
  (b)(1) The Commission may prescribe, in regard to reports 
made pursuant to this title, the form or forms in which the 
required information shall be set forth, the items or details 
to be shown in the balance sheet and the earnings statement, 
and the methods to be followed in the preparation of reports, 
in the appraisal or valuation of assets and liabilities, in the 
determination of depreciation and depletion, in the 
differentiation of recurring and nonrecurring income, in the 
differentiation of investment and operating income, and in the 
preparation, where the Commission deems it necessary or 
desirable, of separate and/or consolidated balance sheets or 
income accounts of any person directly or indirectly 
controlling or controlled by the issuer, or any person under 
direct or indirect common control with the issuer; but in the 
case of the reports of any person whose methods of accounting 
are prescribed under the provisions of any law of the United 
States, or any rule or regulation thereunder, the rules and 
regulations of the Commission with respect to reports shall not 
be inconsistent with the requirements imposed by such law or 
rule or regulation in respect of the same subject matter 
(except that such rules and regulations of the Commission may 
be inconsistent with such requirements to the extent that the 
Commission determines that the public interest or the 
protection of investors so requires).
  (2) Every issuer which has a class of securities registered 
pursuant to section 12 of this title and every issuer which is 
required to file reports pursuant to section 15(d) of this 
title shall--
          (A) make and keep books, records, and accounts, 
        which, in reasonable detail, accurately and fairly 
        reflect the transactions and dispositions of the assets 
        of the issuer;
          (B) devise and maintain a system of internal 
        accounting controls sufficient to provide reasonable 
        assurances that--
                  (i) transactions are executed in accordance 
                with management's general or specific 
                authorization;
                  (ii) transactions are recorded as necessary 
                (I) to permit preparation of financial 
                statements in conformity with generally 
                accepted accounting principles or any other 
                criteria applicable to such statements, and 
                (II) to maintain accountability for assets;
                  (iii) access to assets is permitted only in 
                accordance with management's general or 
                specific authorization; and
                  (iv) the recorded accountability for assets 
                is compared with the existing assets at 
                reasonable intervals and appropriate action is 
                taken with respect to any differences; and
          (C) notwithstanding any other provision of law, pay 
        the allocable share of such issuer of a reasonable 
        annual accounting support fee or fees, determined in 
        accordance with section 109 of the Sarbanes-Oxley Act 
        of 2002.
  (3)(A) With respect to matters concerning the national 
security of the United States, no duty or liability under 
paragraph (2) of this subsection shall be imposed upon any 
person acting in cooperation with the head of any Federal 
department or agency responsible for such matters if such act 
in cooperation with such head of a department or agency was 
done upon the specific, written directive of the head of such 
department or agency pursuant to Presidential authority to 
issue such directives. Each directive issued under this 
paragraph shall set forth the specific facts and circumstances 
with respect to which the provisions of this paragraph are to 
be invoked. Each such directive shall, unless renewed in 
writing, expire one year after the date of issuance.
  (B) Each head of a Federal department or agency of the United 
States who issues a directive pursuant to this paragraph shall 
maintain a complete file of all such directives and shall, on 
October 1 of each year, transmit a summary of matters covered 
by such directives in force at any time during the previous 
year to the Permanent Select Committee on Intelligence of the 
House of Representatives and the Select Committee on 
Intelligence of the Senate.
  (4) No criminal liability shall be imposed for failing to 
comply with the requirements of paragraph (2) of this 
subsection except as provided in paragraph (5) of this 
subsection.
  (5) No person shall knowingly circumvent or knowingly fail to 
implement a system of internal accounting controls or knowingly 
falsify any book, record, or account described in paragraph 
(2).
  (6) Where an issuer which has a class of securities 
registered pursuant to section 12 of this title or an issuer 
which is required to file reports pursuant to section 15(d) of 
this title holds 50 per centum or less of the voting power with 
respect to a domestic or foreign firm, the provisions of 
paragraph (2) require only that the issuer proceed in good 
faith to use its influence, to the extent reasonable under the 
issuer's circumstances, to cause such domestic or foreign firm 
to devise and maintain a system of internal accounting controls 
consistent with paragraph (2). Such circumstances include the 
relative degree of the issuer's ownership of the domestic or 
foreign firm and the laws and practices governing the business 
operations of the country in which such firm is located. An 
issuer which demonstrates good faith efforts to use such 
influence shall be conclusively presumed to have complied with 
the requirements of paragraph (2).
  (7) For the purpose of paragraph (2) of this subsection, the 
terms ``reasonable assurances'' and ``reasonable detail'' mean 
such level of detail and degree of assurance as would satisfy 
prudent officials in the conduct of their own affairs.
  (c) If in the judgment of the Commission any report required 
under subsection (a) is inapplicable to any specified class or 
classes of issuers, the Commission shall require in lieu 
thereof the submission of such reports of comparable character 
as it may deem applicable to such class or classes of issuers.
  (d)(1) Any person who, after acquiring directly or indirectly 
the beneficial ownership of any equity security of a class 
which is registered pursuant to section 12 of this title, or 
any equity security of an insurance company which would have 
been required to be so registered except for the exemption 
contained in section 12(g)(2)(G) of this title, or any equity 
security issued by a closed-end investment company registered 
under the Investment Company Act of 1940 or any equity security 
issued by a Native Corporation pursuant to section 37(d)(6) of 
the Alaska Native Claims Settlement Act, or otherwise becomes 
or is deemed to become a beneficial owner of any of the 
foregoing upon the purchase or sale of a security-based swap 
that the Commission may define by rule, and is directly or 
indirectly the beneficial owner of more than 5 per centum of 
such class shall, within ten days after such acquisition or 
within such shorter time as the Commission may establish by 
rule, file with the Commission, a statement containing such of 
the following information, and such additional information, as 
the Commission may by rules and regulations, prescribe as 
necessary or appropriate in the public interest or for the 
protection of investors--
          (A) the background, and identity, residence, and 
        citizenship of, and the nature of such beneficial 
        ownership by, such person and all other persons by whom 
        or on whose behalf the purchases have been or are to be 
        effected;
          (B) the source and amount of the funds or other 
        consideration used or to be used in making the 
        purchases, and if any part of the purchase price is 
        represented or is to be represented by funds or other 
        consideration borrowed or otherwise obtained for the 
        purpose of acquiring, holding, or trading such 
        security, a description of the transaction and the 
        names of the parties thereto, except that where a 
        source of funds is a loan made in the ordinary course 
        of business by a bank, as defined in section 3(a)(6) of 
        this title, if the person filing such statement so 
        requests, the name of the bank shall not be made 
        available to the public;
          (C) if the purpose of the purchases or prospective 
        purchases is to acquire control of the business of the 
        issuer of the securities any plans or proposals which 
        such persons may have to liquidate such issuer, to sell 
        its assets to or merge it with any other persons, or to 
        make any other major change in its business or 
        corporate structure;
          (D) the number of shares of such security which are 
        beneficially owned, and the number of shares concerning 
        which there is a right to acquire, directly or 
        indirectly, by (i) such person, and (ii) by each 
        associate of such person, giving the background, 
        identity, residence, and citizenship of each such 
        associate; and
          (E) information as to any contracts, arrangements, or 
        understandings with any person with respect to any 
        securities of the issuer, including but not limited to 
        transfer of any of the securities, joint ventures, loan 
        or option arrangements, puts or calls, guaranties of 
        loans, guaranties against loss or guaranties of 
        profits, division of losses or profits, or the giving 
        or withholding of proxies, naming the persons with whom 
        such contracts, arrangements, or understandings have 
        been entered into, and giving the details thereof.
  (2) If any material change occurs in the facts set forth in 
the statement filed with the Commission, an amendment shall be 
filed with the Commission, in accordance with such rules and 
regulations as the Commission may prescribe as necessary or 
appropriate in the public interest or for the protection of 
investors.
  (3) When two or more persons act as a partnership, limited 
partnership, syndicate, or other group for the purpose of 
acquiring, holding, or disposing of securities of an issuer, 
such syndicate or group shall be deemed a ``person'' for the 
purposes of this subsection.
  (4) In determining, for purposes of this subsection, any 
percentage of a class of any security, such class shall be 
deemed to consist of the amount of the outstanding securities 
of such class, exclusive of any securities of such class held 
by or for the account of the issuer or a subsidiary of the 
issuer.
  (5) The Commission, by rule or regulation or by order, may 
permit any person to file in lieu of the statement required by 
paragraph (1) of this subsection or the rules and regulations 
thereunder, a notice stating the name of such person, the 
number of shares of any equity securities subject to paragraph 
(1) which are owned by him, the date of their acquisition and 
such other information as the Commission may specify, if it 
appears to the Commission that such securities were acquired by 
such person in the ordinary course of his business and were not 
acquired for the purpose of and do not have the effect of 
changing or influencing the control of the issuer nor in 
connection with or as a participant in any transaction having 
such purpose or effect.
  (6) The provisions of this subsection shall not apply to--
          (A) any acquisition or offer to acquire securities 
        made or proposed to be made by means of a registration 
        statement under the Securities Act of 1933;
          (B) any acquisition of the beneficial ownership of a 
        security which, together with all other acquisitions by 
        the same person of securities of the same class during 
        the preceding twelve months, does not exceed 2 per 
        centum of that class;
          (C) any acquisition of an equity security by the 
        issuer of such security;
          (D) any acquisition or proposed acquisition of a 
        security which the Commission, by rules or regulations 
        or by order, shall exempt from the provisions of this 
        subsection as not entered into for the purpose of, and 
        not having the effect of, changing or influencing the 
        control of the issuer or otherwise as not comprehended 
        within the purposes of this subsection.
  (e)(1) It shall be unlawful for an issuer which has a class 
of equity securities registered pursuant to section 12 of this 
title, or which is a closed-end investment company registered 
under the Investment Company Act of 1940, to purchase any 
equity security issued by it if such purchase is in 
contravention of such rules and regulations as the Commission, 
in the public interest or for the protection of investors, may 
adopt (A) to define acts and practices which are fraudulent, 
deceptive, or manipulative, and (B) to prescribe means 
reasonably designed to prevent such acts and practices. Such 
rules and regulations may require such issuer to provide 
holders of equity securities of such class with such 
information relating to the reasons for such purchase, the 
source of funds, the number of shares to be purchased, the 
price to be paid for such securities, the method of purchase, 
and such additional information, as the Commission deems 
necessary or appropriate in the public interest or for the 
protection of investors, or which the Commission deems to be 
material to a determination whether such security should be 
sold.
  (2) For the purpose of this subsection, a purchase by or for 
the issuer or any person controlling, controlled by, or under 
common control with the issuer, or a purchase subject to 
control of the issuer or any such person, shall be deemed to be 
a purchase by the issuer. The Commission shall have power to 
make rules and regulations implementing this paragraph in the 
public interest and for the protection of investors, including 
exemptive rules and regulations covering situations in which 
the Commission deems it unnecessary or inappropriate that a 
purchase of the type described in this paragraph shall be 
deemed to be a purchase by the issuer for purposes of some or 
all of the provisions of paragraph (1) of this subsection.
  (3) At the time of filing such statement as the Commission 
may require by rule pursuant to paragraph (1) of this 
subsection, the person making the filing shall pay to the 
Commission a fee at a rate that, subject to paragraph (4), is 
equal to $92 per $1,000,000 of the value of securities proposed 
to be purchased. The fee shall be reduced with respect to 
securities in an amount equal to any fee paid with respect to 
any securities issued in connection with the proposed 
transaction under section 6(b) of the Securities Act of 1933, 
or the fee paid under that section shall be reduced in an 
amount equal to the fee paid to the Commission in connection 
with such transaction under this paragraph.
          (4) Annual adjustment.--For each fiscal year, the 
        Commission shall by order adjust the rate required by 
        paragraph (3) for such fiscal year to a rate that is 
        equal to the rate (expressed in dollars per million) 
        that is applicable under section 6(b) of the Securities 
        Act of 1933 for such fiscal year.
          (5) Fee collections.--Fees collected pursuant to this 
        subsection for fiscal year 2012 and each fiscal year 
        thereafter shall be deposited and credited as general 
        revenue of the Treasury and shall not be available for 
        obligation.
          (6) Effective date; publication.--In exercising its 
        authority under this subsection, the Commission shall 
        not be required to comply with the provisions of 
        section 553 of title 5, United States Code. An adjusted 
        rate prescribed under paragraph (4) shall be published 
        and take effect in accordance with section 6(b) of the 
        Securities Act of 1933 (15 U.S.C. 77f(b)).
          (7) Pro rata application.--The rates per $1,000,000 
        required by this subsection shall be applied pro rata 
        to amounts and balances of less than $1,000,000.
  (f)(1) Every institutional investment manager which uses the 
mails, or any means or instrumentality of interstate commerce 
in the course of its business as an institutional investment 
manager and which exercises investment discretion with respect 
to accounts holding equity securities of a class described in 
section 13(d)(1) of this title having an aggregate fair market 
value on the last trading day in any of the preceding twelve 
months of at least $100,000,000 or such lesser amount (but in 
no case less than $10,000,000) as the Commission, by rule, may 
determine, shall file reports with the Commission in such form, 
for such periods, and at such times after the end of such 
periods as the Commission, by rule, may prescribe, but in no 
event shall such reports be filed for periods longer than one 
year or shorter than one quarter. Such reports shall include 
for each such equity security held on the last day of the 
reporting period by accounts (in aggregate or by type as the 
Commission, by rule, may prescribe) with respect to which the 
institutional investment manager exercises investment 
discretion (other than securities held in amounts which the 
Commission, by rule, determines to be insignificant for 
purposes of this subsection), the name of the issuer and the 
title, class, CUSIP number, number of shares or principal 
amount, and aggregate fair market value of each such security. 
Such reports may also include for accounts (in aggregate or by 
type) with respect to which the institutional investment 
manager exercises investment discretion such of the following 
information as the Commission, by rule, prescribes--
          (A) the name of the issuer and the title, class, 
        CUSIP number, number of shares or principal amount, and 
        aggregate fair market value or cost or amortized cost 
        of each other security (other than an exempted 
        security) held on the last day of the reporting period 
        by such accounts;
          (B) the aggregate fair market value or cost or 
        amortized cost of exempted securities (in aggregate or 
        by class) held on the last day of the reporting period 
        by such accounts;
          (C) the number of shares of each equity security of a 
        class described in section 13(d)(1) of this title held 
        on the last day of the reporting period by such 
        accounts with respect to which the institutional 
        investment manager possesses sole or shared authority 
        to exercise the voting rights evidenced by such 
        securities;
          (D) the aggregate purchases and aggregate sales 
        during the reporting period of each security (other 
        than an exempted security) effected by or for such 
        accounts; and
          (E) with respect to any transaction or series of 
        transactions having a market value of at least $500,000 
        or such other amount as the Commission, by rule, may 
        determine, effected during the reporting period by or 
        for such accounts in any equity security of a class 
        described in section 13(d)(1) of this title--
                  (i) the name of the issuer and the title, 
                class, and CUSIP number of the security;
                  (ii) the number of shares or principal amount 
                of the security involved in the transaction;
                  (iii) whether the transaction was a purchase 
                or sale;
                  (iv) the per share price or prices at which 
                the transaction was effected;
                  (v) the date or dates of the transaction;
                  (vi) the date or dates of the settlement of 
                the transaction;
                  (vii) the broker or dealer through whom the 
                transaction was effected;
                  (viii) the market or markets in which the 
                transaction was effected; and
                  (ix) such other related information as the 
                Commission, by rule, may prescribe.
          (2) The Commission shall prescribe rules providing 
        for the public disclosure of the name of the issuer and 
        the title, class, CUSIP number, aggregate amount of the 
        number of short sales of each security, and any 
        additional information determined by the Commission 
        following the end of the reporting period. At a 
        minimum, such public disclosure shall occur every 
        month.
  (3) The Commission, by rule or order, may exempt, 
conditionally or unconditionally, any institutional investment 
manager or security or any class of institutional investment 
managers or securities from any or all of the provisions of 
this subsection or the rules thereunder.
  (4) The Commission shall make available to the public for a 
reasonable fee a list of all equity securities of a class 
described in section 13(d)(1) of this title, updated no less 
frequently than reports are required to be filed pursuant to 
paragraph (1) of this subsection. The Commission shall tabulate 
the information contained in any report filed pursuant to this 
subsection in a manner which will, in the view of the 
Commission, maximize the usefulness of the information to other 
Federal and State authorities and the public. Promptly after 
the filing of any such report, the Commission shall make the 
information contained therein conveniently available to the 
public for a reasonable fee in such form as the Commission, by 
rule, may prescribe, except that the Commission, as it 
determines to be necessary or appropriate in the public 
interest or for the protection of investors, may delay or 
prevent public disclosure of any such information in accordance 
with section 552 of title 5, United States Code. 
Notwithstanding the preceding sentence, any such information 
identifying the securities held by the account of a natural 
person or an estate or trust (other than a business trust or 
investment company) shall not be disclosed to the public.
  (5) In exercising its authority under this subsection, the 
Commission shall determine (and so state) that its action is 
necessary or appropriate in the public interest and for the 
protection of investors or to maintain fair and orderly markets 
or, in granting an exemption, that its action is consistent 
with the protection of investors and the purposes of this 
subsection. In exercising such authority the Commission shall 
take such steps as are within its power, including consulting 
with the Comptroller General of the United States, the Director 
of the Office of Management and Budget, the appropriate 
regulatory agencies, Federal and State authorities which, 
directly or indirectly, require reports from institutional 
investment managers of information substantially similar to 
that called for by this subsection, national securities 
exchanges, and registered securities associations, (A) to 
achieve uniform, centralized reporting of information 
concerning the securities holdings of and transactions by or 
for accounts with respect to which institutional investment 
managers exercise investment discretion, and (B) consistently 
with the objective set forth in the preceding subparagraph, to 
avoid unnecessarily duplicative reporting by, and minimize the 
compliance burden on, institutional investment managers. 
Federal authorities which, directly or indirectly, require 
reports from institutional investment managers of information 
substantially similar to that called for by this subsection 
shall cooperate with the Commission in the performance of its 
responsibilities under the preceding sentence. An institutional 
investment manager which is a bank, the deposits of which are 
insured in accordance with the Federal Deposit Insurance Act, 
shall file with the appropriate regulatory agency a copy of 
every report filed with the Commission pursuant to this 
subsection.
  (6)(A) For purposes of this subsection the term 
``institutional investment manager'' includes any person, other 
than a natural person, investing in or buying and selling 
securities for its own account, and any person exercising 
investment discretion with respect to the account of any other 
person.
  (B) The Commission shall adopt such rules as it deems 
necessary or appropriate to prevent duplicative reporting 
pursuant to this subsection by two or more institutional 
investment managers exercising investment discretion with 
respect to the same amount.
  (g)(1) Any person who is directly or indirectly the 
beneficial owner of more than 5 per centum of any security of a 
class described in subsection (d)(1) of this section or 
otherwise becomes or is deemed to become a beneficial owner of 
any security of a class described in subsection (d)(1) upon the 
purchase or sale of a security-based swap that the Commission 
may define by ruleshall file with the Commission a statement 
setting forth, in such form and at such time as the Commission 
may, by rule, prescribe--
          (A) such person's identity, residence, and 
        citizenship; and
          (B) the number and description of the shares in which 
        such person has an interest and the nature of such 
        interest.
  (2) If any material change occurs in the facts set forth in 
the statement filed with the Commission, an amendment shall be 
filed with the Commission, in accordance with such rules and 
regulations as the Commission may prescribe as necessary or 
appropriate in the public interest or for the protection of 
investors.
  (3) When two or more persons act as a partnership, limited 
partnership, syndicate, or other group for the purpose of 
acquiring, holding, or disposing of securities of an issuer, 
such syndicate or group shall be deemed a ``person'' for the 
purposes of this subsection.
  (4) In determining, for purposes of this subsection, any 
percentage of a class of any security, such class shall be 
deemed to consist of the amount of the outstanding securities 
of such class, exclusive of any securities of such class held 
by or for the account of the issuer or a subsidiary of the 
issuer.
  (5) In exercising its authority under this subsection, the 
Commission shall take such steps as it deems necessary or 
appropriate in the public interest or for the protection of 
investors (A) to achieve centralized reporting of information 
regarding ownership, (B) to avoid unnecessarily duplicative 
reporting by and minimize the compliance burden on persons 
required to report, and (C) to tabulate and promptly make 
available the information contained in any report filed 
pursuant to this subsection in a manner which will, in the view 
of the Commission, maximize the usefulness of the information 
to other Federal and State agencies and the public.
  (6) The Commission may, by rule or order, exempt, in whole or 
in part, any person or class of persons from any or all of the 
reporting requirements of this subsection as it deems necessary 
or appropriate in the public interest or for the protection of 
investors.
  (h) Large Trader Reporting.--
          (1) Identification requirements for large traders.--
        For the purpose of monitoring the impact on the 
        securities markets of securities transactions involving 
        a substantial volume or a large fair market value or 
        exercise value and for the purpose of otherwise 
        assisting the Commission in the enforcement of this 
        title, each large trader shall--
                  (A) provide such information to the 
                Commission as the Commission may by rule or 
                regulation prescribe as necessary or 
                appropriate, identifying such large trader and 
                all accounts in or through which such large 
                trader effects such transactions; and
                  (B) identify, in accordance with such rules 
                or regulations as the Commission may prescribe 
                as necessary or appropriate, to any registered 
                broker or dealer by or through whom such large 
                trader directly or indirectly effects 
                securities transactions, such large trader and 
                all accounts directly or indirectly maintained 
                with such broker or dealer by such large trader 
                in or through which such transactions are 
                effected.
          (2) Recordkeeping and reporting requirements for 
        brokers and dealers.--Every registered broker or dealer 
        shall make and keep for prescribed periods such records 
        as the Commission by rule or regulation prescribes as 
        necessary or appropriate in the public interest, for 
        the protection of investors, or otherwise in 
        furtherance of the purposes of this title, with respect 
        to securities transactions that equal or exceed the 
        reporting activity level effected directly or 
        indirectly by or through such registered broker or 
        dealer of or for any person that such broker or dealer 
        knows is a large trader, or any person that such broker 
        or dealer has reason to know is a large trader on the 
        basis of transactions in securities effected by or 
        through such broker or dealer. Such records shall be 
        available for reporting to the Commission, or any self-
        regulatory organization that the Commission shall 
        designate to receive such reports, on the morning of 
        the day following the day the transactions were 
        effected, and shall be reported to the Commission or a 
        self-regulatory organization designated by the 
        Commission immediately upon request by the Commission 
        or such a self-regulatory organization. Such records 
        and reports shall be in a format and transmitted in a 
        manner prescribed by the Commission (including, but not 
        limited to, machine readable form).
          (3) Aggregation rules.--The Commission may prescribe 
        rules or regulations governing the manner in which 
        transactions and accounts shall be aggregated for the 
        purpose of this subsection, including aggregation on 
        the basis of common ownership or control.
          (4) Examination of broker and dealer records.--All 
        records required to be made and kept by registered 
        brokers and dealers pursuant to this subsection with 
        respect to transactions effected by large traders are 
        subject at any time, or from time to time, to such 
        reasonable periodic, special, or other examinations by 
        representatives of the Commission as the Commission 
        deems necessary or appropriate in the public interest, 
        for the protection of investors, or otherwise in 
        furtherance of the purposes of this title.
          (5) Factors to be considered in commission actions.--
        In exercising its authority under this subsection, the 
        Commission shall take into account--
                  (A) existing reporting systems;
                  (B) the costs associated with maintaining 
                information with respect to transactions 
                effected by large traders and reporting such 
                information to the Commission or self-
                regulatory organizations; and
                  (C) the relationship between the United 
                States and international securities markets.
          (6) Exemptions.--The Commission, by rule, regulation, 
        or order, consistent with the purposes of this title, 
        may exempt any person or class of persons or any 
        transaction or class of transactions, either 
        conditionally or upon specified terms and conditions or 
        for stated periods, from the operation of this 
        subsection, and the rules and regulations thereunder.
          (7) Authority of commission to limit disclosure of 
        information.--Notwithstanding any other provision of 
        law, the Commission shall not be compelled to disclose 
        any information required to be kept or reported under 
        this subsection. Nothing in this subsection shall 
        authorize the Commission to withhold information from 
        Congress, or prevent the Commission from complying with 
        a request for information from any other Federal 
        department or agency requesting information for 
        purposes within the scope of its jurisdiction, or 
        complying with an order of a court of the United States 
        in an action brought by the United States or the 
        Commission. For purposes of section 552 of title 5, 
        United States Code, this subsection shall be considered 
        a statute described in subsection (b)(3)(B) of such 
        section 552.
          (8) Definitions.--For purposes of this subsection--
                  (A) the term ``large trader'' means every 
                person who, for his own account or an account 
                for which he exercises investment discretion, 
                effects transactions for the purchase or sale 
                of any publicly traded security or securities 
                by use of any means or instrumentality of 
                interstate commerce or of the mails, or of any 
                facility of a national securities exchange, 
                directly or indirectly by or through a 
                registered broker or dealer in an aggregate 
                amount equal to or in excess of the identifying 
                activity level;
                  (B) the term ``publicly traded security'' 
                means any equity security (including an option 
                on individual equity securities, and an option 
                on a group or index of such securities) listed, 
                or admitted to unlisted trading privileges, on 
                a national securities exchange, or quoted in an 
                automated interdealer quotation system;
                  (C) the term ``identifying activity level'' 
                means transactions in publicly traded 
                securities at or above a level of volume, fair 
                market value, or exercise value as shall be 
                fixed from time to time by the Commission by 
                rule or regulation, specifying the time 
                interval during which such transactions shall 
                be aggregated;
                  (D) the term ``reporting activity level'' 
                means transactions in publicly traded 
                securities at or above a level of volume, fair 
                market value, or exercise value as shall be 
                fixed from time to time by the Commission by 
                rule, regulation, or order, specifying the time 
                interval during which such transactions shall 
                be aggregated; and
                  (E) the term ``person'' has the meaning given 
                in section 3(a)(9) of this title and also 
                includes two or more persons acting as a 
                partnership, limited partnership, syndicate, or 
                other group, but does not include a foreign 
                central bank.
  (i) Accuracy of Financial Reports.--Each financial report 
that contains financial statements, and that is required to be 
prepared in accordance with (or reconciled to) generally 
accepted accounting principles under this title and filed with 
the Commission shall reflect all material correcting 
adjustments that have been identified by a registered public 
accounting firm in accordance with generally accepted 
accounting principles and the rules and regulations of the 
Commission.
  (j) Off-Balance Sheet Transactions.--Not later than 180 days 
after the date of enactment of the Sarbanes-Oxley Act of 2002, 
the Commission shall issue final rules providing that each 
annual and quarterly financial report required to be filed with 
the Commission shall disclose all material off-balance sheet 
transactions, arrangements, obligations (including contingent 
obligations), and other relationships of the issuer with 
unconsolidated entities or other persons, that may have a 
material current or future effect on financial condition, 
changes in financial condition, results of operations, 
liquidity, capital expenditures, capital resources, or 
significant components of revenues or expenses.
  (k) Prohibition on Personal Loans to Executives.--
          (1) In general.--It shall be unlawful for any issuer 
        (as defined in section 2 of the Sarbanes-Oxley Act of 
        2002), directly or indirectly, including through any 
        subsidiary, to extend or maintain credit, to arrange 
        for the extension of credit, or to renew an extension 
        of credit, in the form of a personal loan to or for any 
        director or executive officer (or equivalent thereof) 
        of that issuer. An extension of credit maintained by 
        the issuer on the date of enactment of this subsection 
        shall not be subject to the provisions of this 
        subsection, provided that there is no material 
        modification to any term of any such extension of 
        credit or any renewal of any such extension of credit 
        on or after that date of enactment.
          (2) Limitation.--Paragraph (1) does not preclude any 
        home improvement and manufactured home loans (as that 
        term is defined in section 5 of the Home Owners' Loan 
        Act (12 U.S.C. 1464)), consumer credit (as defined in 
        section 103 of the Truth in Lending Act (15 U.S.C. 
        1602)), or any extension of credit under an open end 
        credit plan (as defined in section 103 of the Truth in 
        Lending Act (15 U.S.C. 1602)), or a charge card (as 
        defined in section 127(c)(4)(e) of the Truth in Lending 
        Act (15 U.S.C. 1637(c)(4)(e)), or any extension of 
        credit by a broker or dealer registered under section 
        15 of this title to an employee of that broker or 
        dealer to buy, trade, or carry securities, that is 
        permitted under rules or regulations of the Board of 
        Governors of the Federal Reserve System pursuant to 
        section 7 of this title (other than an extension of 
        credit that would be used to purchase the stock of that 
        issuer), that is--
                  (A) made or provided in the ordinary course 
                of the consumer credit business of such issuer;
                  (B) of a type that is generally made 
                available by such issuer to the public; and
                  (C) made by such issuer on market terms, or 
                terms that are no more favorable than those 
                offered by the issuer to the general public for 
                such extensions of credit.
          (3) Rule of construction for certain loans.--
        Paragraph (1) does not apply to any loan made or 
        maintained by an insured depository institution (as 
        defined in section 3 of the Federal Deposit Insurance 
        Act (12 U.S.C. 1813)), if the loan is subject to the 
        insider lending restrictions of section 22(h) of the 
        Federal Reserve Act (12 U.S.C. 375b).
  (l) Real Time Issuer Disclosures.--Each issuer reporting 
under section 13(a) or 15(d) shall disclose to the public on a 
rapid and current basis such additional information concerning 
material changes in the financial condition or operations of 
the issuer, in plain English, which may include trend and 
qualitative information and graphic presentations, as the 
Commission determines, by rule, is necessary or useful for the 
protection of investors and in the public interest.
  (m) Public Availability of Security-based Swap Transaction 
Data.--
          (1) In general.--
                  (A) Definition of real-time public 
                reporting.--In this paragraph, the term ``real-
                time public reporting'' means to report data 
                relating to a security-based swap transaction, 
                including price and volume, as soon as 
                technologically practicable after the time at 
                which the security-based swap transaction has 
                been executed.
                  (B) Purpose.--The purpose of this subsection 
                is to authorize the Commission to make 
                security-based swap transaction and pricing 
                data available to the public in such form and 
                at such times as the Commission determines 
                appropriate to enhance price discovery.
                  (C) General rule.--The Commission is 
                authorized to provide by rule for the public 
                availability of security-based swap 
                transaction, volume, and pricing data as 
                follows:
                          (i) With respect to those security-
                        based swaps that are subject to the 
                        mandatory clearing requirement 
                        described in section 3C(a)(1) 
                        (including those security-based swaps 
                        that are excepted from the requirement 
                        pursuant to section 3C(g)), the 
                        Commission shall require real-time 
                        public reporting for such transactions.
                          (ii) With respect to those security-
                        based swaps that are not subject to the 
                        mandatory clearing requirement 
                        described in section 3C(a)(1), but are 
                        cleared at a registered clearing 
                        agency, the Commission shall require 
                        real-time public reporting for such 
                        transactions.
                          (iii) With respect to security-based 
                        swaps that are not cleared at a 
                        registered clearing agency and which 
                        are reported to a security-based swap 
                        data repository or the Commission under 
                        section 3C(a)(6), the Commission shall 
                        require real-time public reporting for 
                        such transactions, in a manner that 
                        does not disclose the business 
                        transactions and market positions of 
                        any person.
                          (iv) With respect to security-based 
                        swaps that are determined to be 
                        required to be cleared under section 
                        3C(b) but are not cleared, the 
                        Commission shall require real-time 
                        public reporting for such transactions.
                  (D) Registered entities and public 
                reporting.--The Commission may require 
                registered entities to publicly disseminate the 
                security-based swap transaction and pricing 
                data required to be reported under this 
                paragraph.
                  (E) Rulemaking required.--With respect to the 
                rule providing for the public availability of 
                transaction and pricing data for security-based 
                swaps described in clauses (i) and (ii) of 
                subparagraph (C), the rule promulgated by the 
                Commission shall contain provisions--
                          (i) to ensure such information does 
                        not identify the participants;
                          (ii) to specify the criteria for 
                        determining what constitutes a large 
                        notional security-based swap 
                        transaction (block trade) for 
                        particular markets and contracts;
                          (iii) to specify the appropriate time 
                        delay for reporting large notional 
                        security-based swap transactions (block 
                        trades) to the public; and
                          (iv) that take into account whether 
                        the public disclosure will materially 
                        reduce market liquidity.
                  (F) Timeliness of reporting.--Parties to a 
                security-based swap (including agents of the 
                parties to a security-based swap) shall be 
                responsible for reporting security-based swap 
                transaction information to the appropriate 
                registered entity in a timely manner as may be 
                prescribed by the Commission.
                  (G) Reporting of swaps to registered 
                security-based swap data repositories.--Each 
                security-based swap (whether cleared or 
                uncleared) shall be reported to a registered 
                security-based swap data repository.
                  (H) Registration of clearing agencies.--A 
                clearing agency may register as a security-
                based swap data repository.
          (2) Semiannual and annual public reporting of 
        aggregate security-based swap data.--
                  (A) In general.--In accordance with 
                subparagraph (B), the Commission shall issue a 
                written report on a semiannual and annual basis 
                to make available to the public information 
                relating to--
                          (i) the trading and clearing in the 
                        major security-based swap categories; 
                        and
                          (ii) the market participants and 
                        developments in new products.
                  (B) Use; consultation.--In preparing a report 
                under subparagraph (A), the Commission shall--
                          (i) use information from security-
                        based swap data repositories and 
                        clearing agencies; and
                          (ii) consult with the Office of the 
                        Comptroller of the Currency, the Bank 
                        for International Settlements, and such 
                        other regulatory bodies as may be 
                        necessary.
                  (C) Authority of commission.--The Commission 
                may, by rule, regulation, or order, delegate 
                the public reporting responsibilities of the 
                Commission under this paragraph in accordance 
                with such terms and conditions as the 
                Commission determines to be appropriate and in 
                the public interest.
  (n) Security-based Swap Data Repositories.--
          (1) Registration requirement.--It shall be unlawful 
        for any person, unless registered with the Commission, 
        directly or indirectly, to make use of the mails or any 
        means or instrumentality of interstate commerce to 
        perform the functions of a security-based swap data 
        repository.
          (2) Inspection and examination.--Each registered 
        security-based swap data repository shall be subject to 
        inspection and examination by any representative of the 
        Commission.
          (3) Compliance with core principles.--
                  (A) In general.--To be registered, and 
                maintain registration, as a security-based swap 
                data repository, the security-based swap data 
                repository shall comply with--
                          (i) the requirements and core 
                        principles described in this 
                        subsection; and
                          (ii) any requirement that the 
                        Commission may impose by rule or 
                        regulation.
                  (B) Reasonable discretion of security-based 
                swap data repository.--Unless otherwise 
                determined by the Commission, by rule or 
                regulation, a security-based swap data 
                repository described in subparagraph (A) shall 
                have reasonable discretion in establishing the 
                manner in which the security-based swap data 
                repository complies with the core principles 
                described in this subsection.
          (4) Standard setting.--
                  (A) Data identification.--
                          (i) In general.--In accordance with 
                        clause (ii), the Commission shall 
                        prescribe standards that specify the 
                        data elements for each security-based 
                        swap that shall be collected and 
                        maintained by each registered security-
                        based swap data repository.
                          (ii) Requirement.--In carrying out 
                        clause (i), the Commission shall 
                        prescribe consistent data element 
                        standards applicable to registered 
                        entities and reporting counterparties.
                  (B) Data collection and maintenance.--The 
                Commission shall prescribe data collection and 
                data maintenance standards for security-based 
                swap data repositories.
                  (C) Comparability.--The standards prescribed 
                by the Commission under this subsection shall 
                be comparable to the data standards imposed by 
                the Commission on clearing agencies in 
                connection with their clearing of security-
                based swaps.
          (5) Duties.--A security-based swap data repository 
        shall--
                  (A) accept data prescribed by the Commission 
                for each security-based swap under subsection 
                (b);
                  (B) confirm with both counterparties to the 
                security-based swap the accuracy of the data 
                that was submitted;
                  (C) maintain the data described in 
                subparagraph (A) in such form, in such manner, 
                and for such period as may be required by the 
                Commission;
                  (D)(i) provide direct electronic access to 
                the Commission (or any designee of the 
                Commission, including another registered 
                entity); and
                  (ii) provide the information described in 
                subparagraph (A) in such form and at such 
                frequency as the Commission may require to 
                comply with the public reporting requirements 
                set forth in subsection (m);
                  (E) at the direction of the Commission, 
                establish automated systems for monitoring, 
                screening, and analyzing security-based swap 
                data;
                  (F) maintain the privacy of any and all 
                security-based swap transaction information 
                that the security-based swap data repository 
                receives from a security-based swap dealer, 
                counterparty, or any other registered entity; 
                and
                  (G) on a confidential basis pursuant to 
                section 24, upon request, and after notifying 
                the Commission of the request, make available 
                all data obtained by the security-based swap 
                data repository, including individual 
                counterparty trade and position data, to--
                          (i) each appropriate prudential 
                        regulator;
                          (ii) the Financial Stability 
                        Oversight Council;
                          (iii) the Commodity Futures Trading 
                        Commission;
                          (iv) the Department of Justice; and
                          (v) any other person that the 
                        Commission determines to be 
                        appropriate, including--
                                  (I) foreign financial 
                                supervisors (including foreign 
                                futures authorities);
                                  (II) foreign central banks; 
                                and
                                  (III) foreign ministries.
                  (H) Confidentiality and indemnification 
                agreement.--Before the security-based swap data 
                repository may share information with any 
                entity described in subparagraph (G)--
                          (i) the security-based swap data 
                        repository shall receive a written 
                        agreement from each entity stating that 
                        the entity shall abide by the 
                        confidentiality requirements described 
                        in section 24 relating to the 
                        information on security-based swap 
                        transactions that is provided; and
                          (ii) each entity shall agree to 
                        indemnify the security-based swap data 
                        repository and the Commission for any 
                        expenses arising from litigation 
                        relating to the information provided 
                        under section 24.
          (6) Designation of chief compliance officer.--
                  (A) In general.--Each security-based swap 
                data repository shall designate an individual 
                to serve as a chief compliance officer.
                  (B) Duties.--The chief compliance officer 
                shall--
                          (i) report directly to the board or 
                        to the senior officer of the security-
                        based swap data repository;
                          (ii) review the compliance of the 
                        security-based swap data repository 
                        with respect to the requirements and 
                        core principles described in this 
                        subsection;
                          (iii) in consultation with the board 
                        of the security-based swap data 
                        repository, a body performing a 
                        function similar to the board of the 
                        security-based swap data repository, or 
                        the senior officer of the security-
                        based swap data repository, resolve any 
                        conflicts of interest that may arise;
                          (iv) be responsible for administering 
                        each policy and procedure that is 
                        required to be established pursuant to 
                        this section;
                          (v) ensure compliance with this title 
                        (including regulations) relating to 
                        agreements, contracts, or transactions, 
                        including each rule prescribed by the 
                        Commission under this section;
                          (vi) establish procedures for the 
                        remediation of noncompliance issues 
                        identified by the chief compliance 
                        officer through any--
                                  (I) compliance office review;
                                  (II) look-back;
                                  (III) internal or external 
                                audit finding;
                                  (IV) self-reported error; or
                                  (V) validated complaint; and
                          (vii) establish and follow 
                        appropriate procedures for the 
                        handling, management response, 
                        remediation, retesting, and closing of 
                        noncompliance issues.
                  (C) Annual reports.--
                          (i) In general.--In accordance with 
                        rules prescribed by the Commission, the 
                        chief compliance officer shall annually 
                        prepare and sign a report that contains 
                        a description of--
                                  (I) the compliance of the 
                                security-based swap data 
                                repository of the chief 
                                compliance officer with respect 
                                to this title (including 
                                regulations); and
                                  (II) each policy and 
                                procedure of the security-based 
                                swap data repository of the 
                                chief compliance officer 
                                (including the code of ethics 
                                and conflict of interest 
                                policies of the security-based 
                                swap data repository).
                          (ii) Requirements.--A compliance 
                        report under clause (i) shall--
                                  (I) accompany each 
                                appropriate financial report of 
                                the security-based swap data 
                                repository that is required to 
                                be furnished to the Commission 
                                pursuant to this section; and
                                  (II) include a certification 
                                that, under penalty of law, the 
                                compliance report is accurate 
                                and complete.
          (7) Core principles applicable to security-based swap 
        data repositories.--
                  (A) Antitrust considerations.--Unless 
                necessary or appropriate to achieve the 
                purposes of this title, the swap data 
                repository shall not--
                          (i) adopt any rule or take any action 
                        that results in any unreasonable 
                        restraint of trade; or
                          (ii) impose any material 
                        anticompetitive burden on the trading, 
                        clearing, or reporting of transactions.
                  (B) Governance arrangements.--Each security-
                based swap data repository shall establish 
                governance arrangements that are transparent--
                          (i) to fulfill public interest 
                        requirements; and
                          (ii) to support the objectives of the 
                        Federal Government, owners, and 
                        participants.
                  (C) Conflicts of interest.--Each security-
                based swap data repository shall--
                          (i) establish and enforce rules to 
                        minimize conflicts of interest in the 
                        decision-making process of the 
                        security-based swap data repository; 
                        and
                          (ii) establish a process for 
                        resolving any conflicts of interest 
                        described in clause (i).
                  (D) Additional duties developed by 
                commission.--
                          (i) In general.--The Commission may 
                        develop 1 or more additional duties 
                        applicable to security-based swap data 
                        repositories.
                          (ii) Consideration of evolving 
                        standards.--In developing additional 
                        duties under subparagraph (A), the 
                        Commission may take into consideration 
                        any evolving standard of the United 
                        States or the international community.
                          (iii) Additional duties for 
                        commission designees.--The Commission 
                        shall establish additional duties for 
                        any registrant described in section 
                        13(m)(2)(C) in order to minimize 
                        conflicts of interest, protect data, 
                        ensure compliance, and guarantee the 
                        safety and security of the security-
                        based swap data repository.
          (8) Required registration for security-based swap 
        data repositories.--Any person that is required to be 
        registered as a security-based swap data repository 
        under this subsection shall register with the 
        Commission, regardless of whether that person is also 
        licensed under the Commodity Exchange Act as a swap 
        data repository.
          (9) Rules.--The Commission shall adopt rules 
        governing persons that are registered under this 
        subsection.
  (o) Beneficial ownership.--For purposes ofthis section and 
section 16, a person shall be deemed to acquire beneficial 
ownership of an equity security based on the purchase or sale 
of a security-based swap, only to the extent that the 
Commission, by rule, determines after consultation with the 
prudential regulators and the Secretary of the Treasury, that 
the purchase or sale of the security-based swap, or class of 
security-based swap, provides incidents of ownership comparable 
to direct ownership of the equity security, and that it is 
necessary to achieve the purposes of this section that the 
purchase or sale of the security-based swaps, or class of 
security-based swap, be deemed the acquisition of beneficial 
ownership of the equity security.
  (p) Disclosures Relating to Conflict Minerals Originating in 
the Democratic Republic of the Congo.--
          (1) Regulations.--
                  (A) In general.--Not later than 270 days 
                after the date of the enactment of this 
                subsection, the Commission shall promulgate 
                regulations requiring any person described in 
                paragraph (2) to disclose annually, beginning 
                with the person's first full fiscal year that 
                begins after the date of promulgation of such 
                regulations, whether conflict minerals that are 
                necessary as described in paragraph (2)(B), in 
                the year for which such reporting is required, 
                did originate in the Democratic Republic of the 
                Congo or an adjoining country and, in cases in 
                which such conflict minerals did originate in 
                any such country, submit to the Commission a 
                report that includes, with respect to the 
                period covered by the report--
                          (i) a description of the measures 
                        taken by the person to exercise due 
                        diligence on the source and chain of 
                        custody of such minerals, which 
                        measures shall include an independent 
                        private sector audit of such report 
                        submitted through the Commission that 
                        is conducted in accordance with 
                        standards established by the 
                        Comptroller General of the United 
                        States, in accordance with rules 
                        promulgated by the Commission, in 
                        consultation with the Secretary of 
                        State; and
                          (ii) a description of the products 
                        manufactured or contracted to be 
                        manufactured that are not DRC conflict 
                        free (``DRC conflict free'' is defined 
                        to mean the products that do not 
                        contain minerals that directly or 
                        indirectly finance or benefit armed 
                        groups in the Democratic Republic of 
                        the Congo or an adjoining country), the 
                        entity that conducted the independent 
                        private sector audit in accordance with 
                        clause (i), the facilities used to 
                        process the conflict minerals, the 
                        country of origin of the conflict 
                        minerals, and the efforts to determine 
                        the mine or location of origin with the 
                        greatest possible specificity.
                  (B) Certification.--The person submitting a 
                report under subparagraph (A) shall certify the 
                audit described in clause (i) of such 
                subparagraph that is included in such report. 
                Such a certified audit shall constitute a 
                critical component of due diligence in 
                establishing the source and chain of custody of 
                such minerals.
                  (C) Unreliable determination.--If a report 
                required to be submitted by a person under 
                subparagraph (A) relies on a determination of 
                an independent private sector audit, as 
                described under subparagraph (A)(i), or other 
                due diligence processes previously determined 
                by the Commission to be unreliable, the report 
                shall not satisfy the requirements of the 
                regulations promulgated under subparagraph 
                (A)(i).
                  (D) DRC conflict free.--For purposes of this 
                paragraph, a product may be labeled as ``DRC 
                conflict free'' if the product does not contain 
                conflict minerals that directly or indirectly 
                finance or benefit armed groups in the 
                Democratic Republic of the Congo or an 
                adjoining country.
                  (E) Information available to the public.--
                Each person described under paragraph (2) shall 
                make available to the public on the Internet 
                website of such person the information 
                disclosed by such person under subparagraph 
                (A).
          (2) Person described.--A person is described in this 
        paragraph if--
                  (A) the person is required to file reports 
                with the Commission pursuant to paragraph 
                (1)(A); and
                  (B) conflict minerals are necessary to the 
                functionality or production of a product 
                manufactured by such person.
          (3) Revisions and waivers.--The Commission shall 
        revise or temporarily waive the requirements described 
        in paragraph (1) if the President transmits to the 
        Commission a determination that--
                  (A) such revision or waiver is in the 
                national security interest of the United States 
                and the President includes the reasons 
                therefor; and
                  (B) establishes a date, not later than 2 
                years after the initial publication of such 
                exemption, on which such exemption shall 
                expire.
          (4) Termination of disclosure requirements.--The 
        requirements of paragraph (1) shall terminate on the 
        date on which the President determines and certifies to 
        the appropriate congressional committees, but in no 
        case earlier than the date that is one day after the 
        end of the 5-year period beginning on the date of the 
        enactment of this subsection, that no armed groups 
        continue to be directly involved and benefitting from 
        commercial activity involving conflict minerals.
          (5) Definitions.--For purposes of this subsection, 
        the terms ``adjoining country'', ``appropriate 
        congressional committees'', ``armed group'', and 
        ``conflict mineral'' have the meaning given those terms 
        under section 1502 of the Dodd-Frank Wall Street Reform 
        and Consumer Protection Act.
  (q) Disclosure of Payments by Resource Extraction Issuers.--
          (1) Definitions.--In this subsection--
                  (A) the term ``commercial development of oil, 
                natural gas, or minerals'' includes 
                exploration, extraction, processing, export, 
                and other significant actions relating to oil, 
                natural gas, or minerals, or the acquisition of 
                a license for any such activity, as determined 
                by the Commission;
                  (B) the term ``foreign government'' means a 
                foreign government, a department, agency, or 
                instrumentality of a foreign government, or a 
                company owned by a foreign government, as 
                determined by the Commission;
                  (C) the term ``payment''--
                          (i) means a payment that is--
                                  (I) made to further the 
                                commercial development of oil, 
                                natural gas, or minerals; and
                                  (II) not de minimis; and
                          (ii) includes taxes, royalties, fees 
                        (including license fees), production 
                        entitlements, bonuses, and other 
                        material benefits, that the Commission, 
                        consistent with the guidelines of the 
                        Extractive Industries Transparency 
                        Initiative (to the extent practicable), 
                        determines are part of the commonly 
                        recognized revenue stream for the 
                        commercial development of oil, natural 
                        gas, or minerals;
                  (D) the term ``resource extraction issuer'' 
                means an issuer that--
                          (i) is required to file an annual 
                        report with the Commission; and
                          (ii) engages in the commercial 
                        development of oil, natural gas, or 
                        minerals;
                  (E) the term ``interactive data format'' 
                means an electronic data format in which pieces 
                of information are identified using an 
                interactive data standard; and
                  (F) the term ``interactive data standard'' 
                means standardized list of electronic tags that 
                mark information included in the annual report 
                of a resource extraction issuer.
          (2) Disclosure.--
                  (A) Information required.--Not later than 270 
                days after the date of enactment of the Dodd-
                Frank Wall Street Reform and Consumer 
                Protection Act, the Commission shall issue 
                final rules that require each resource 
                extraction issuer to include in an annual 
                report of the resource extraction issuer 
                information relating to any payment made by the 
                resource extraction issuer, a subsidiary of the 
                resource extraction issuer, or an entity under 
                the control of the resource extraction issuer 
                to a foreign government or the Federal 
                Government for the purpose of the commercial 
                development of oil, natural gas, or minerals, 
                including--
                          (i) the type and total amount of such 
                        payments made for each project of the 
                        resource extraction issuer relating to 
                        the commercial development of oil, 
                        natural gas, or minerals; and
                          (ii) the type and total amount of 
                        such payments made to each government.
                  (B) Consultation in rulemaking.--In issuing 
                rules under subparagraph (A), the Commission 
                may consult with any agency or entity that the 
                Commission determines is relevant.
                  (C) Interactive data format.--The rules 
                issued under subparagraph (A) shall require 
                that the information included in the annual 
                report of a resource extraction issuer be 
                submitted in an interactive data format.
                  (D) Interactive data standard.--
                          (i) In general.--The rules issued 
                        under subparagraph (A) shall establish 
                        an interactive data standard for the 
                        information included in the annual 
                        report of a resource extraction issuer.
                          (ii) Electronic tags.--The 
                        interactive data standard shall include 
                        electronic tags that identify, for any 
                        payments made by a resource extraction 
                        issuer to a foreign government or the 
                        Federal Government--
                                  (I) the total amounts of the 
                                payments, by category;
                                  (II) the currency used to 
                                make the payments;
                                  (III) the financial period in 
                                which the payments were made;
                                  (IV) the business segment of 
                                the resource extraction issuer 
                                that made the payments;
                                  (V) the government that 
                                received the payments, and the 
                                country in which the government 
                                is located;
                                  (VI) the project of the 
                                resource extraction issuer to 
                                which the payments relate; and
                                  (VII) such other information 
                                as the Commission may determine 
                                is necessary or appropriate in 
                                the public interest or for the 
                                protection of investors.
                  (E) International transparency efforts.--To 
                the extent practicable, the rules issued under 
                subparagraph (A) shall support the commitment 
                of the Federal Government to international 
                transparency promotion efforts relating to the 
                commercial development of oil, natural gas, or 
                minerals.
                  (F) Effective date.--With respect to each 
                resource extraction issuer, the final rules 
                issued under subparagraph (A) shall take effect 
                on the date on which the resource extraction 
                issuer is required to submit an annual report 
                relating to the fiscal year of the resource 
                extraction issuer that ends not earlier than 1 
                year after the date on which the Commission 
                issues final rules under subparagraph (A).
          (3) Public availability of information.--
                  (A) In general.--To the extent practicable, 
                the Commission shall make available online, to 
                the public, a compilation of the information 
                required to be submitted under the rules issued 
                under paragraph (2)(A).
                  (B) Other information.--Nothing in this 
                paragraph shall require the Commission to make 
                available online information other than the 
                information required to be submitted under the 
                rules issued under paragraph (2)(A).
          (4) Authorization of appropriations.--There are 
        authorized to be appropriated to the Commission such 
        sums as may be necessary to carry out this subsection.
  (r) Disclosure of Certain Activities Relating to Iran.--
          (1) In general.--Each issuer required to file an 
        annual or quarterly report under subsection (a) shall 
        disclose in that report the information required by 
        paragraph (2) if, during the period covered by the 
        report, the issuer or any affiliate of the issuer--
                  (A) knowingly engaged in an activity 
                described in subsection (a) or (b) of section 5 
                of the Iran Sanctions Act of 1996 (Public Law 
                104-172; 50 U.S.C. 1701 note);
                  (B) knowingly engaged in an activity 
                described in subsection (c)(2) of section 104 
                of the Comprehensive Iran Sanctions, 
                Accountability, and Divestment Act of 2010 (22 
                U.S.C. 8513) or a transaction described in 
                subsection (d)(1) of that section;
                  (C) knowingly engaged in an activity 
                described in section 105A(b)(2) of that Act; or
                  (D) knowingly conducted any transaction or 
                dealing with--
                          (i) any person the property and 
                        interests in property of which are 
                        blocked pursuant to Executive Order No. 
                        13224 (66 Fed. Reg. 49079; relating to 
                        blocking property and prohibiting 
                        transactions with persons who commit, 
                        threaten to commit, or support 
                        terrorism);
                          (ii) any person the property and 
                        interests in property of which are 
                        blocked pursuant to Executive Order No. 
                        13382 (70 Fed. Reg. 38567; relating to 
                        blocking of property of weapons of mass 
                        destruction proliferators and their 
                        supporters); or
                          (iii) any person or entity identified 
                        under section 560.304 of title 31, Code 
                        of Federal Regulations (relating to the 
                        definition of the Government of Iran) 
                        without the specific authorization of a 
                        Federal department or agency.
          (2) Information required.--If an issuer or an 
        affiliate of the issuer has engaged in any activity 
        described in paragraph (1), the issuer shall disclose a 
        detailed description of each such activity, including--
                  (A) the nature and extent of the activity;
                  (B) the gross revenues and net profits, if 
                any, attributable to the activity; and
                  (C) whether the issuer or the affiliate of 
                the issuer (as the case may be) intends to 
                continue the activity.
          (3) Notice of disclosures.--If an issuer reports 
        under paragraph (1) that the issuer or an affiliate of 
        the issuer has knowingly engaged in any activity 
        described in that paragraph, the issuer shall 
        separately file with the Commission, concurrently with 
        the annual or quarterly report under subsection (a), a 
        notice that the disclosure of that activity has been 
        included in that annual or quarterly report that 
        identifies the issuer and contains the information 
        required by paragraph (2).
          (4) Public disclosure of information.--Upon receiving 
        a notice under paragraph (3) that an annual or 
        quarterly report includes a disclosure of an activity 
        described in paragraph (1), the Commission shall 
        promptly--
                  (A) transmit the report to--
                          (i) the President;
                          (ii) the Committee on Foreign Affairs 
                        and the Committee on Financial Services 
                        of the House of Representatives; and
                          (iii) the Committee on Foreign 
                        Relations and the Committee on Banking, 
                        Housing, and Urban Affairs of the 
                        Senate; and
                  (B) make the information provided in the 
                disclosure and the notice available to the 
                public by posting the information on the 
                Internet website of the Commission.
          (5) Investigations.--Upon receiving a report under 
        paragraph (4) that includes a disclosure of an activity 
        described in paragraph (1) (other than an activity 
        described in subparagraph (D)(iii) of that paragraph), 
        the President shall--
                  (A) initiate an investigation into the 
                possible imposition of sanctions under the Iran 
                Sanctions Act of 1996 (Public Law 104-172; 50 
                U.S.C. 1701 note), section 104 or 105A of the 
                Comprehensive Iran Sanctions, Accountability, 
                and Divestment Act of 2010, an Executive order 
                specified in clause (i) or (ii) of paragraph 
                (1)(D), or any other provision of law relating 
                to the imposition of sanctions with respect to 
                Iran, as applicable; and
                  (B) not later than 180 days after initiating 
                such an investigation, make a determination 
                with respect to whether sanctions should be 
                imposed with respect to the issuer or the 
                affiliate of the issuer (as the case may be).
          (6) Sunset.--The provisions of this subsection shall 
        terminate on the date that is 30 days after the date on 
        which the President makes the certification described 
        in section 401(a) of the Comprehensive Iran Sanctions, 
        Accountability, and Divestment Act of 2010 (22 U.S.C. 
        8551(a)).

           *       *       *       *       *       *       *

                              ----------                              


      SECTION 503 OF THE UNITED STATES-KOREA FREE TRADE AGREEMENT 
                           IMPLEMENTATION ACT


SEC. 503. RATE FOR MERCHANDISE PROCESSING FEES.

   For the period beginning on December 1, 2015, and ending on 
June 30, 2021, section 13031(a)(9) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) shall 
be applied and administered--
          (1) in subparagraph (A), by substituting ``0.3464'' 
        for ``0.21''; and
          (2) in subparagraph (B)(i), by substituting 
        ``0.3464'' for ``0.21''.

      B. Changes in Existing Law Proposed by the Bill, as Reported

    In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed 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):

CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT OF 1985

           *       *       *       *       *       *       *



SEC. 13031. FEES FOR CERTAIN CUSTOMS SERVICES.

  (a) Schedule of Fees.--In addition to any other fee 
authorized by law, the Secretary of the Treasury shall charge 
and collect the following fees for the provision of customs 
services in connection with the following:
          (1) For the arrival of a commercial vessel of 100 net 
        tons or more, $397.
          (2) For the arrival of a commercial truck, $5.
          (3) For the arrival of each railroad car carrying 
        passengers or commercial freight, $7.50.
          (4) For all arrivals made during a calendar year by a 
        private vessel or private aircraft, $25.
          (5)(A) Subject to subparagraph (B), for the arrival 
        of each passenger aboard a commercial vessel or 
        commercial aircraft from a place outside the United 
        States (other than a place referred to in subsection 
        (b)(1)(A)(i) of this section), $5.
          (B) For the arrival of each passenger aboard a 
        commercial vessel from a place referred to in 
        subsection (b)(1)(A)(i) of this section, $1.75.
          (6) For each item of dutiable mail for which a 
        document is prepared by a customs officer, $5.
          (7) For each customs broker permit held by an 
        individual, partnership, association, or corporate 
        customs broker, $125 per year.
          (8) For the arrival of a barge or other bulk carrier 
        from Canada or Mexico, $100.
          (9)(A) For the processing of merchandise that is 
        formally entered or released during any fiscal year, a 
        fee in an amount equal to 0.21 percent ad valorem, 
        unless adjusted under subparagraph (B).
          (B)(i) The Secretary of the Treasury may adjust the 
        ad valorem rate specified in subparagraph (A) to an ad 
        valorem rate (but not to a rate of more than 0.21 
        percent nor less than 0.15 percent) and the amounts 
        specified in subsection (b)(8)(A)(i) (but not to more 
        than $485 nor less than $21) to rates and amounts which 
        would, if charged, offset the salaries and expenses 
        that will likely be incurred by the Customs Service in 
        the processing of such entries and releases during the 
        fiscal year in which such costs are incurred.
          (ii) In determining the amount of any adjustment 
        under clause (i), the Secretary of the Treasury shall 
        take into account whether there is a surplus or deficit 
        in the fund established under subsection (f) with 
        respect to the provision of customs services for the 
        processing of formal entries and releases of 
        merchandise.
          (iii) An adjustment may not be made under clause (i) 
        with respect to the fee charged during any fiscal year 
        unless the Secretary of the Treasury--
                  (I) not later than 45 days after the date of 
                the enactment of the Act providing full-year 
                appropriations for the Customs Service for that 
                fiscal year, publishes in the Federal Register 
                a notice of intent to adjust the fee under this 
                paragraph and the amount of such adjustment;
                  (II) provides a period of not less than 30 
                days following publication of the notice 
                described in subclause (I) for public comment 
                and consultation with the Committee on Finance 
                of the Senate and the Committee on Ways and 
                Means of the House of Representatives regarding 
                the proposed adjustment and the methodology 
                used to determine such adjustment;
                  (III) upon the expiration of the period 
                provided under subclause (II), notifies such 
                committees in writing regarding the final 
                determination to adjust the fee, the amount of 
                such adjustment, and the methodology used to 
                determine such adjustment; and
                  (IV) upon the expiration of the 15-day period 
                following the written notification described in 
                subclause (III), submits for publication in the 
                Federal Register notice of the final 
                determination regarding the adjustment of the 
                fee.
          (iv) The 15-day period referred to in clause 
        (iii)(IV) shall be computed by excluding--
                  (I) the days on which either House is not in 
                session because of an adjournment of more than 
                3 days to a day certain or an adjournment of 
                the Congress sine die; and
                  (II) any Saturday and Sunday, not excluded 
                under subclause (I), when either House is not 
                in session.
          (v) An adjustment made under this subparagraph shall 
        become effective with respect to formal entries and 
        releases made on or after the 15th calendar day after 
        the date of publication of the notice described in 
        clause (iii)(IV) and shall remain in effect until 
        adjusted under this subparagraph.
          (C) Any fee charged under this paragraph, whether or 
        not adjusted under subparagraph (B), is subject to the 
        limitations in subsection (b)(8)(A).
          (10) For the processing of merchandise that is 
        informally entered or released, other than at--
                  (A) a centralized hub facility,
                  (B) an express consignment carrier facility, 
                or
                  (C) a small airport or other facility to 
                which section 236 of the Trade and Tariff Act 
                of 1984 applies, if more than 25,000 informal 
                entries were cleared through such airport or 
                facility during the fiscal year preceding such 
                entry or release, a fee of--
                          (i) $2 if the entry or release is 
                        automated and not prepared by customs 
                        personnel;
                          (ii) $6 if the entry or release is 
                        manual and not prepared by customs 
                        personnel; or
                          (iii) $9 if the entry or release, 
                        whether automated or manual, is 
                        prepared by customs personnel.
                For provisions relating to the informal entry 
                or release of merchandise at facilities 
                referred to in subparagraphs (A), (B), and (C), 
                see subsection (b)(9).
  (b) Limitations on Fees.--(1)(A) Except as provided in 
subsection (a)(5)(B) of this section, no fee may be charged 
under subsection (a) of this section for customs services 
provided in connection with--
          (i) the arrival of any passenger whose journey--
                  (I) originated in a territory or possession 
                of the United States; or
                  (II) originated in the United States and was 
                limited to territories and possessions of the 
                United States;
          (ii) the arrival of any railroad car the journey of 
        which originates and terminates in the same country, 
        but only if no passengers board or disembark from the 
        train and no cargo is loaded or unloaded from such car 
        while the car is within any country other than the 
        country in which such car originates and terminates;
          (iii) the arrival of a ferry, except for a ferry 
        whose operations begin on or after August 1, 1999, and 
        that operates south of 27 degrees latitude and east of 
        89 degrees longitude; or
          (iv) the arrival of any passenger on board a 
        commercial vessel traveling only between ports which 
        are within the customs territory of the United States.
  (B) The exemption provided for in subparagraph (A) shall not 
apply in the case of the arrival of any passenger on board a 
commercial vessel whose journey originates and terminates at 
the same place in the United States if there are no intervening 
stops.
  (C) The exemption provided for in subparagraph (A)(i) shall 
not apply to fiscal years 1994, 1995, 1996, and 1997.
  (2) No fee may be charged under subsection (a)(2) for the 
arrival of a commercial truck during any calendar year after a 
total of $100 in fees has been paid to the Secretary of the 
Treasury for the provision of customs services for all arrivals 
of such commercial truck during such calendar year.
  (3) No fee may be charged under subsection (a)(3) for the 
arrival of a railroad car whether passenger or freight during 
any calendar year after a total of $100 in fees has been paid 
to the Secretary of the Treasury for the provision of customs 
services for all arrivals of such passenger or freight rail car 
during such calendar year.
  (4)(A) No fee may be charged under subsection (a)(5) with 
respect to the arrival of any passenger--
          (i) who is in transit to a destination outside the 
        customs territory of the United States, and
          (ii) for whom customs inspectional services are not 
        provided.
  (B) In the case of a commercial vessel making a single voyage 
involving 2 or more United States ports with respect to which 
the passengers would otherwise be charged a fee pursuant to 
subsection (a)(5), such fee shall be charged only 1 time for 
each passenger.
  (5) No fee may be charged under subsection (a)(1) for the 
arrival of--
          (A) a vessel during a calendar year after a total of 
        $5,955 in fees charged under paragraph (1) or (8) of 
        subsection (a) has been paid to the Secretary of the 
        Treasury for the provision of customs services for all 
        arrivals of such vessel during such calendar year,
          (B) any vessel which, at the time of the arrival, is 
        being used solely as a tugboat, or
          (C) any barge or other bulk carrier from Canada or 
        Mexico.
  (6) No fee may be charged under subsection (a)(8) for the 
arrival of a barge or other bulk carrier during a calendar year 
after a total of $1,500 in fees charged under paragraph (1) or 
(8) of subsection (a) has been paid to the Secretary of the 
Treasury for the provision of customs services for all arrivals 
of such barge or other bulk carrier during such calendar year.
  (7) No fee may be charged under paragraph (2), (3), or (4) of 
subsection (a) for the arrival of any--
          (A) commercial truck,
          (B) railroad car, or
          (C) private vessel,
that is being transported, at the time of the arrival, by any 
vessel that is not a ferry.
  (8)(A)(i) Subject to clause (ii), the fee charged under 
subsection (a)(9) for the formal entry or release of 
merchandise may not exceed $485 or be less than $25, unless 
adjusted pursuant to subsection (a)(9)(B).
  (ii) A surcharge of $3 shall be added to the fee determined 
after application of clause (i) for any manual entry or release 
of merchandise.
  (B) No fee may be charged under subsection (a) (9) or (10) 
for the processing of any article that is--
          (i) provided for under any item in chapter 98 of the 
        Harmonized Tariff Schedule of the United States, except 
        subheading 9802.00.60 or 9802.00.80,
          (ii) a product of an insular possession of the United 
        States, or
          (iii) a product of any country listed in subdivision 
        (c)(ii)(B) or (c)(v) of general note 3 to such 
        Schedule.
  (C) For purposes of applying subsection (a) (9) or (10)--
          (i) expenses incurred by the Secretary of the 
        Treasury in the processing of merchandise do not 
        include costs incurred in--
                  (I) air passenger processing,
                  (II) export control, or
                  (III) international affairs, and
          (ii) any reference to a manual formal or informal 
        entry or release includes any entry or release filed by 
        a broker or importer that requires the inputting of 
        cargo selectivity data into the Automated Commercial 
        System by customs personnel, except when--
                  (I) the broker or importer is certified as an 
                ABI cargo release filer under the Automated 
                Commercial System at any port within the United 
                States, or
                  (II) the entry or release is filed at ports 
                prior to the full implementation of the cargo 
                selectivity data system by the Customs Service 
                at such ports.
  (D) The fee charged under subsection (a)(9) or (10) with 
respect to the processing of merchandise shall--
          (i) be paid by the importer of record of the 
        merchandise;
          (ii) except as otherwise provided in this paragraph, 
        be based on the value of the merchandise as determined 
        under section 402 of the Tariff Act of 1930;
          (iii) in the case of merchandise classified under 
        subheading 9802.00.60 of the Harmonized Tariff Schedule 
        of the United States, be applied to the value of the 
        foreign repairs or alterations to the merchandise;
          (iv) in the case of merchandise classified under 
        heading 9802.00.80 of such Schedule, be applied to the 
        full value of the merchandise, less the cost or value 
        of the component United States products;
          (v) in the case of agricultural products of the 
        United States that are processed and packed in a 
        foreign trade zone, be applied only to the value of 
        material used to make the container for such 
        merchandise, if such merchandise is subject to entry 
        and the container is of a kind normally used for 
        packing such merchandise; and
          (vi) in the case of merchandise entered from a 
        foreign trade zone (other than merchandise to which 
        clause (v) applies), be applied only to the value of 
        the privileged or nonprivileged foreign status 
        merchandise under section 3 of the Act of June 18, 1934 
        (commonly known as the Foreign Trade Zones Act, 19 
        U.S.C. 81c).
With respect to merchandise that is classified under subheading 
9802.00.60 or heading 9802.00.80 of such Schedule and is duty-
free, the Secretary may collect the fee charged on the 
processing of the merchandise under subsection (a) (9) or (10) 
on the basis of aggregate data derived from financial and 
manufacturing reports used by the importer in the normal course 
of business, rather than on the basis of entry-by-entry 
accounting.
  (E) For purposes of subsection (a) (9) and (10), merchandise 
is entered or released, as the case may be, if the merchandise 
is--
          (i) permitted or released under section 448(b) of the 
        Tariff Act of 1930,
          (ii) entered or released from customs custody under 
        section 484(a)(1)(A) of the Tariff Act of 1930, or
          (iii) withdrawn from warehouse for consumption.
  (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 $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) In the case of a small airport or other 
        facility--
                  (I) the reimbursement which such facility is 
                required to make during the fiscal year under 
                section 9701 of title 31, United States Code or 
                section 236 of the Trade and Tariff Act of 
                1984; and
                  (II) an annual payment by the facility to the 
                Secretary of the Treasury, which is in lieu of 
                the payment of fees under subsection (a)(10) 
                for such fiscal year, in an amount equal to the 
                reimbursement under subclause (I).
          (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) (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 be paid to the Secretary of 
                the Treasury, which is in lieu of the payment 
                of fees under subsection (a)(10) of this 
                section.
  (C) For purposes of this paragraph:
          (i) The terms ``centralized hub facility'' and 
        ``express consignment carrier facility'' have the 
        respective meanings that are applied to such terms in 
        part 128 of chapter I of title 19, Code of Federal 
        Regulations. Nothing in this paragraph shall be 
        construed as prohibiting the Secretary of the Treasury 
        from processing merchandise that is informally entered 
        or released at any centralized hub facility or express 
        consignment carrier facility during the normal 
        operating hours of the Customs Service, subject to 
        reimbursement and payment under subparagraph (A).
          (ii) The term ``small airport or other facility'' 
        means any airport or facility to which section 236 of 
        the Trade and Tariff Act of 1984 applies, if more than 
        25,000 informal entries were cleared through such 
        airport or facility during the preceding fiscal year.
  (10)(A) The fee charged under subsection (a) (9) or (10) with 
respect to goods of Canadian origin (as determined under 
section 202 of the United States-Canada Free-Trade Agreement 
Implementation Act of 1988) when the United States-Canada Free-
Trade Agreement is in force shall be in accordance with article 
403 of that Agreement.
  (B) For goods qualifying under the rules of origin set out in 
section 202 of the North American Free Trade Agreement 
Implementation Act, the fee under subsection (a) (9) or (10)--
          (i) may not be charged with respect to goods that 
        qualify to be marked as goods of Canada pursuant to 
        Annex 311 of the North American Free Trade Agreement, 
        for such time as Canada is a NAFTA country, as defined 
        in section 2(4) of such Implementation Act; and
          (ii) may not be increased after December 31, 1993, 
        and may not be charged after June 29, 1999, with 
        respect to goods that qualify to be marked as goods of 
        Mexico pursuant to such Annex 311, for such time as 
        Mexico is a NAFTA country.
Any service for which an exemption from such fee is provided by 
reason of this paragraph may not be funded with money contained 
in the Customs User Fee Account.
  (11) No fee may be charged under subsection (a) (9) or (10) 
with respect to products of Israel if an exemption with respect 
to the fee is implemented under section 112 of the Customs and 
Trade Act of 1990.
  (12) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 202 of the United States-Chile Free Trade Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (13) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 202 of the United States-Singapore Free Trade Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (14) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 203 of the United States-Australia Free Trade Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (15) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 203 of the Dominican Republic-Central America-United 
States Free Trade Agreement Implementation Act. Any service for 
which an exemption from such fee is provided by reason of this 
paragraph may not be funded with money contained in the Customs 
User Fee Account.
  (16) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 202 of the United States-Bahrain Free Trade Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (17) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 202 of the United States-Oman Free Trade Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (18) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 203 of the United States-Peru Trade Promotion Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (19) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 202 of the United States-Korea Free Trade Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be 
funded with money contained in the Customs User Fee Account.
  (20) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under 
section 203 of the United States-Colombia Trade Promotion 
Agreement Implementation Act. Any service for which an 
exemption from such fee is provided by reason of this paragraph 
may not be funded with money contained in the Customs User Fee 
Account.
  (21) No fee may be charged under subsection (a)(9) or (10) 
with respect to goods that qualify as originating goods under 
section 203 of the United States-Panama Trade Promotion 
Agreement Implementation Act. Any service for which an 
exemption from such fee is provided by reason of this paragraph 
may not be funded with money contained in the Customs User Fee 
Account.
  (c) Definitions.--For purposes of this section--
          (1) The term ``ferry'' means any vessel which is 
        being used--
                  (A) to provide transportation only between 
                places that are no more than 300 miles apart, 
                and
                  (B) to transport only--
                          (i) passengers, or
                          (ii) vehicles, or railroad cars, 
                        which are being used, or have been 
                        used, in transporting passengers or 
                        goods.
          (2) The term ``arrival'' means arrival at a port of 
        entry in the customs territory of the United States.
          (3) The term ``customs territory of the United 
        States'' has the meaning given to such term by general 
        note 2 of the Harmonized Tariff Schedule of the United 
        States.
          (4) The term ``customs broker permit'' means a permit 
        issued under section 641(c) of the Tariff Act of 1930 
        (19 U.S.C. 1641(c)).
          (5) The term ``barge or other bulk carrier'' means 
        any vessel which--
                  (A) is not self-propelled, or
                  (B) transports fungible goods that are not 
                packaged in any form.
  (d) Collection.--(1) Each person that issues a document or 
ticket to an individual for transportation by a commercial 
vessel or commercial aircraft into the customs territory of the 
United States shall--
          (A) collect from that individual the fee charged 
        under subsection (a)(5) at the time the document or 
        ticket is issued; and
          (B) separately identify on that document or ticket 
        the fee charged under subsection (a)(5) as a Federal 
        inspection fee.
  (2) If--
          (A) a document or ticket for transportation of a 
        passenger into the customs territory of the United 
        States is issued in a foreign country; and
          (B) the fee charged under subsection (a)(5) is not 
        collected at the time such document or ticket is 
        issued;
the person providing transportation to such passenger shall 
collect such fee at the time such passenger departs from the 
customs territory of the United States and shall provide such 
passenger a receipt for the payment of such fee.
  (3) The person who collects fees under paragraph (1) or (2) 
shall remit those fees to the Secretary of the Treasury at any 
time before the date that is 31 days after the close of the 
calendar quarter in which the fees are collected.
  (4)(A) Notice of the date on which payment of the fee imposed 
by subsection (a)(7) is due shall be published by the Secretary 
of the Treasury in the Federal Register by no later than the 
date that is 60 days before such due date.
  (B) A customs broker permit may be revoked or suspended for 
nonpayment of the fee imposed by subsection (a)(7) only if 
notice of the date on which payment of such fee is due was 
published in the Federal Register at least 60 days before such 
due date.
  (C) The customs broker's license issued under section 641(b) 
of the Tariff Act of 1930 (19 U.S.C. 1641(b)) may not be 
revoked or suspended merely by reason of nonpayment of the fee 
imposed under subsection (a)(7).
  (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)), 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.
  (2)(A) This subsection shall not apply with respect to any 
airport to which section 236 of the Trade and Tariff Act of 
1984 (19 U.S.C. 58b) applies.
  (B) Subparagraph (C) of paragraph (6) shall not apply with 
respect to any foreign trade zone or subzone that is located 
at, or in the vicinity of, an airport to which section 236 of 
the Trade and Tariff Act of 1984 applies.
  (3) Notwithstanding section 451 of the Tariff Act of 1930 (19 
U.S.C. 1451) or any other provision of law--
          (A) 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 when needed at places located outside 
        the customs territory of the United States at which a 
        customs officer is stationed for the purpose of 
        providing such customs services, and
          (B) other than the fees imposed under subsection (a), 
        the airlines and airline passengers shall not be 
        required to reimburse the Secretary of the Treasury for 
        the costs of providing overtime customs inspectional 
        services at such places.
  (4) Notwithstanding any other provision of law, all customs 
services (including, but not limited to, normal and overtime 
clearance and preclearance services) shall be adequately 
provided, when requested, for--
          (A) the clearance of any commercial vessel, vehicle, 
        or aircraft or its passengers, crew, stores, material, 
        or cargo arriving, departing, or transiting the United 
        States;
          (B) the preclearance at any customs facility outside 
        the United States of any commercial vessel, vehicle or 
        aircraft or its passengers, crew, stores, material, or 
        cargo; and
          (C) the inspection or release of commercial cargo or 
        other commercial shipments being entered into, or 
        withdrawn from, the customs territory of the United 
        States.
  (5) For purposes of this subsection, customs services shall 
be treated as being ``adequately provided'' if such of those 
services that are necessary to meet the needs of parties 
subject to customs inspection are provided in a timely manner 
taking into account factors such as--
          (A) the unavoidability of weather, mechanical, and 
        other delays;
          (B) the necessity for prompt and efficient passenger 
        and baggage clearance;
          (C) the perishability of cargo;
          (D) the desirability or unavoidability of late night 
        and early morning arrivals from various time zones;
          (E) the availability (in accordance with regulations 
        prescribed under subsection (g)(2)) of customs 
        personnel and resources; and
          (F) the need for specific enforcement checks.
  (6) Notwithstanding any other provision of law except 
paragraph (2), during any period when fees are authorized under 
subsection (a), no charges, other than such fees, may be 
collected--
          (A) for any--
                  (i) cargo inspection, clearance, or other 
                customs activity, expense, or service performed 
                (regardless whether performed outside of normal 
                business hours on an overtime basis), or
                  (ii) customs personnel provided,
        in connection with the arrival or departure of any 
        commercial vessel, vehicle, or aircraft, or its 
        passengers, crew, stores, material, or cargo, in the 
        United States;
          (B) for any preclearance or other customs activity, 
        expense, or service performed, and any customs 
        personnel provided, outside the United States in 
        connection with the departure of any commercial vessel, 
        vehicle, or aircraft, or its passengers, crew, stores, 
        material, or cargo, for the United States; or
          (C) in connection with--
                  (i) the activation or operation (including 
                Customs Service supervision) of any foreign 
                trade zone or subzone established under the Act 
                of June 18, 1934 (commonly known as the Foreign 
                Trade Zones Act, 19 U.S.C. 81a et seq.), or
                  (ii) the designation or operation (including 
                Customs Service supervision) of any bonded 
                warehouse under section 555 of the Tariff Act 
                of 1930 (19 U.S.C. 1555).
  (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) the portion of such fees that is required under 
        paragraph (3) for the direct reimbursement of 
        appropriations, and
          (B) amounts deposited into the Customs Commercial and 
        Homeland Security Automation Account under paragraph 
        (4).
  (2) Except as otherwise provided in this subsection, all 
funds in the Customs User Fee Account shall be available, to 
the extent provided for in appropriations Acts, to pay the 
costs (other than costs for which direct reimbursement under 
paragraph (3) is required) incurred by the United States 
Customs Service in conducting customs revenue functions as 
defined in section 415 of the Homeland Security Act of 2002 
(other than functions performed by the Office of International 
Affairs referred to in section 415(8) of that Act), and for 
automation (including the Automation Commercial Environment 
computer system), and for no other purpose. To the extent that 
funds in the Customs User Fee Account are insufficient to pay 
the costs of such customs revenue functions, customs duties in 
an amount equal to the amount of such insufficiency shall be 
available, to the extent provided for in appropriations Acts, 
to pay the costs of such customs revenue functions in the 
amount of such insufficiency, and shall be available for no 
other purpose. The provisions of the first and second sentences 
of this paragraph specifying the purposes for which amounts in 
the Customs User Fee Account may be made available shall not be 
superseded except by a provision of law which specifically 
modifies or supersedes such provisions. So long as there is a 
surplus of funds in the Customs User Fee Account, the Secretary 
of the Treasury may not reduce personnel staffing levels for 
providing commercial clearance and preclearance services.
  (3)(A) The Secretary of the Treasury, in accordance with 
section 524 of the Tariff Act of 1930 and subject to 
subparagraph (B), shall directly reimburse, from the fees 
collected under subsection (a) (other than the fees under 
subsection (a) (9) and (10) and the excess fees determined by 
the Secretary under paragraph (4)), each appropriation for the 
amount paid out of that appropriation for the costs incurred by 
the Secretary--
          (i) in--
                  (I) paying overtime compensation under 
                section 5(a) of the Act of February 13, 1911,
                  (II) paying premium pay under section 5(b) of 
                the Act of February 13, 1911, but the amount 
                for which reimbursement may be made under this 
                subclause may not, for any fiscal year, exceed 
                the difference between the total cost of all 
                the premium pay for such year calculated under 
                section 5(b) and the cost of the night and 
                holiday premium pay that the Customs Service 
                would have incurred for the same inspectional 
                work on the day before the effective date of 
                section 13813 of the Omnibus Budget 
                Reconciliation Act of 1993,
                  (III) paying agency contributions to the 
                Civil Service Retirement and Disability Fund to 
                match deductions from the overtime compensation 
                paid under subclause (I),
                  (IV) providing all preclearance services for 
                which the recipients of such services are not 
                required to reimburse the Secretary of the 
                Treasury, and
                  (V) paying foreign language proficiency 
                awards under section 13812(b) of the Omnibus 
                Budget Reconciliation Act of 1993,
          (ii) to the extent funds remain available after 
        making reimbursements under clause (i), in providing 
        salaries for full-time and part-time inspectional 
        personnel and equipment that enhance customs services 
        for those persons or entities that are required to pay 
        fees under paragraphs (1) through (8) of subsection (a) 
        (distributed on a basis proportionate to the fees 
        collected under paragraphs (1) through (8) of 
        subsection (a), and
          (iii) to the extent funds remain available after 
        making reimbursements under clause (ii), in providing 
        salaries for up to 50 full-time equivalent inspectional 
        positions to provide preclearance services.
The transfer of funds required under subparagraph (C)(iii) has 
priority over reimbursements under this subparagraph to carry 
out subclauses (II), (III), (IV), and (V) of clause (i). Funds 
described in clause (ii) shall only be available to reimburse 
costs in excess of the highest amount appropriated for such 
costs during the period beginning with fiscal year 1990 and 
ending with the current fiscal year.
  (B) Reimbursement of appropriations under this paragraph--
          (i) shall be subject to apportionment or similar 
        administrative practices;
          (ii) shall be made at least quarterly; and
          (iii) to the extent necessary, may be made on the 
        basis of estimates made by the Secretary of the 
        Treasury and adjustments shall be made in subsequent 
        reimbursements to the extent that the estimates were in 
        excess of, or less than, the amounts required to be 
        reimbursed.
  (C)(i) For fiscal year 1991 and subsequent fiscal years, the 
amount required to reimburse costs described in subparagraph 
(A)(i) shall be projected from actual requirements, and only 
the excess of collections over such projected costs for such 
fiscal year shall be used as provided in subparagraph (A)(ii).
  (ii) The excess of collections over inspectional overtime and 
preclearance costs (under subparagraph (A)(i)) reimbursed for 
fiscal years 1989 and 1990 shall be available in fiscal year 
1991 and subsequent fiscal years for the purposes described in 
subparagraph (A)(ii), except that $30,000,000 of such excess 
shall remain without fiscal year limitation in a contingency 
fund and, in any fiscal year in which receipts are insufficient 
to cover the costs described in subparagraph (A) (i) and (ii), 
shall be used for--
          (I) the costs of providing the services described in 
        subparagraph (A)(i), and
          (II) after the costs described in subclause (I) are 
        paid, the costs of providing the personnel and 
        equipment described in subparagraph (A)(ii) at the 
        preceding fiscal year level.
  (iii) For each fiscal year, the Secretary of the Treasury 
shall calculate the difference between--
          (I) the estimated cost for overtime compensation that 
        would have been incurred during that fiscal year for 
        inspectional services if section 5 of the Act of 
        February 13, 1911 (19 U.S.C. 261 and 267), as in effect 
        before the enactment of section 13811 of the Omnibus 
        Budget Reconciliation Act of 1993, had governed such 
        costs, and
          (II) the actual cost for overtime compensation, 
        premium pay, and agency retirement contributions that 
        is incurred during that fiscal year in regard to 
        inspectional services under section 5 of the Act of 
        February 13, 1911, as amended by section 13811 of the 
        Omnibus Budget Reconciliation Act of 1993, and under 
        section 8331(3) of title 5, United States Code, as 
        amended by section 13812(a)(1) of such Act of 1993, 
        plus the actual cost that is incurred during that 
        fiscal year for foreign language proficiency awards 
        under section 13812(b) of such Act of 1993,
and shall transfer from the Customs User Fee Account to the 
General Fund of the Treasury an amount equal to the difference 
calculated under this clause, or $18,000,000, whichever amount 
is less. Transfers shall be made under this clause at least 
quarterly and on the basis of estimates to the same extent as 
are reimbursements under subparagraph (B)(iii).
  (D) Nothing in this paragraph shall be construed to preclude 
the use of appropriated funds, from sources other than the fees 
collected under subsection (a), to pay the costs set forth in 
clauses (i), (ii), and (iii) of subparagraph (A).
  (4)(A) There is created within the general fund of the 
Treasury a separate account that shall be known as the 
``Customs Commercial and Homeland Security Automation 
Account''. In each of fiscal years 2003, 2004, and 2005 there 
shall be deposited into the Account from fees collected under 
subsection (a)(9)(A), $350,000,000.
  (B) There is authorized to be appropriated from the Account 
in fiscal years [2003 through 2005 such amounts as are 
available in that Account for the development] 2016 through 
2018 not less than $153,736,000 to complete the development and 
implementation, establishment, and implementation of the 
Automated Commercial Environment computer system for the 
processing of merchandise that is entered or released and for 
other purposes related to the functions of the Department of 
Homeland Security. Amounts appropriated pursuant to this 
subparagraph are authorized to remain available until expended.
  (C) In adjusting the fee imposed by subsection (a)(9)(A) for 
fiscal year 2006, the Secretary of the Treasury shall reduce 
the amount estimated to be collected in fiscal year 2006 by the 
amount by which total fees deposited to the Account during 
fiscal years 2003, 2004, and 2005 exceed total appropriations 
from that Account.
  (5) Of the amounts collected in fiscal year 1999 under 
paragraphs (9) and (10) of subsection (a), $50,000,000 shall be 
available to the Customs Service, subject to appropriations 
Acts, for automated commercial systems. Amounts made available 
under this paragraph shall remain available until expended.
  (g) Regulations and Enforcement.--(1) The Secretary of the 
Treasury may prescribe such rules and regulations as may be 
necessary to carry out the provisions of this section. 
Regulations issued by the Secretary of the Treasury under this 
subsection with respect to the collection of the fees charged 
under subsection (a)(5) and the remittance of such fees to the 
Treasury of the United States shall be consistent with the 
regulations issued by the Secretary of the Treasury for the 
collection and remittance of the taxes imposed by subchapter C 
of chapter 33 of the Internal Revenue Code of 1954, but only to 
the extent the regulations issued with respect to such taxes do 
not conflict with the provisions of this section.
  (2) Except to the extent otherwise provided in regulations, 
all administrative and enforcement provisions of customs laws 
and regulations, other than those laws and regulations relating 
to drawback, shall apply with respect to any fee prescribed 
under subsection (a) of this section, and with respect to 
persons liable therefor, as if such fee is a customs duty. For 
purposes of the preceding sentence, any penalty expressed in 
terms of a relationship to the amount of the duty shall be 
treated as not less than the amount which bears a similar 
relationship to the amount of the fee assessed. For purposes of 
determining the jurisdiction of any court of the United States 
or any agency of the United States, any fee prescribed under 
subsection (a) of this section shall be treated as if such fee 
is a customs duty.
  (h) Conforming Amendments.--(1) Subsection (i) of section 305 
of the Rail Passenger Service Act (45 U.S.C. 545(i)) is amended 
by striking out the last sentence thereof.
  (2) Subsection (e) of section 53 of the Airport and Airway 
Development Act of 1970 (49 U.S.C. 1741(e)) is repealed.
  (i) Effect on Other Authority.--Except with respect to 
customs services for which fees are imposed under subsection 
(a), nothing in this section shall be construed as affecting 
the authority of the Secretary of the Treasury to charge fees 
under section 214(b) of the Customs Procedural Reform and 
Simplification Act of 1978 (19 U.S.C. 58a).
  (j) Effective Dates.--(1) Except as otherwise provided in 
this subsection, the provisions of this section, and the 
amendments and repeals made by this section, shall apply with 
respect to customs services rendered after the date that is 90 
days after the date of enactment of this Act.
  (2) Fees may be charged under subsection (a)(5) only with 
respect to customs services rendered in regard to arriving 
passengers using transportation for which documents or tickets 
were issued after the date that is 90 days after such date of 
enactment.
  (3)(A) Fees may not be charged under paragraphs (9) and (10) 
of subsection (a) after September 30, 2024.
  (B)(i) Subject to clause (ii), Fees may not be charged under 
paragraphs (1) through (8) of subsection (a) after September 
30, 2024.
  (ii) In fiscal year 2006 and in each succeeding fiscal year 
for which fees under paragraphs (1) through (8) of subsection 
(a) are authorized--
          (I) the Secretary of the Treasury shall charge fees 
        under each such paragraph in amounts that are 
        reasonably related to the costs of providing customs 
        services in connection with the activity or item for 
        which the fee is charged under such paragraph, except 
        that in no case may the fee charged under any such 
        paragraph exceed by more than 10 percent the amount 
        otherwise prescribed by such paragraph;
          (II) the amount of fees collected under such 
        paragraphs may not exceed, in the aggregate, the 
        amounts paid in that fiscal year for the costs 
        described in subsection (f)(3)(A) incurred in providing 
        customs services in connection with the activity or 
        item for which the fees are charged under such 
        paragraphs;
          (III) a fee may not be collected under any such 
        paragraph except to the extent such fee will be 
        expended to pay the costs described in subsection 
        (f)(3)(A) incurred in providing customs services in 
        connection with the activity or item for which the fee 
        is charged under such paragraph; and
          (IV) any fee collected under any such paragraph shall 
        be available for expenditure only to pay the costs 
        described in subsection (f)(3)(A) incurred in providing 
        customs services in connection with the activity or 
        item for which the fee is charged under such paragraph.
  (C) Fees may be charged under paragraphs (9) and (10) of 
subsection (a) during the period beginning on July 8, 2025, and 
ending on July 28, 2025.
  (k) Advisory Committee.--The Commissioner of Customs shall 
establish an advisory committee whose membership shall consist 
of representatives from the airline, cruise ship, and other 
transportation industries who may be subject to fees under 
subsection (a). The advisory committee shall not be subject to 
termination under section 14 of the Federal Advisory Committee 
Act. The advisory committee shall meet on a periodic basis and 
shall advise the Commissioner on issues related to the 
performance of the inspectional services of the United States 
Customs Service. Such advice shall include, but not be limited 
to, such issues as the time periods during which such services 
should be performed, the proper number and deployment of 
inspection officers, the level of fees, and the appropriateness 
of any proposed fee. The Commissioner shall give consideration 
to the views of the advisory committee in the exercise of his 
or her duties.

           *       *       *       *       *       *       *

                              ----------                              


         SECTION 311 OF THE CUSTOMS BORDER SECURITY ACT OF 2002


SEC. 311. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMERCIAL OPERATIONS, 
                    COMMERCIAL OPERATIONS, AND AIR AND MARINE 
                    INTERDICTION

  (a) Noncommercial Operations. --Section 301(b)(1) of the 
Customs Procedural Reform and Simplification Act of 1978 (19 
U.S.C. 2075(b)(1)) is amended--
          (1) by striking subparagraph (A), and inserting the 
        following:
                  ``(A) $1,365,456,000 for fiscal year 2003.''; 
                and
          (2) by striking subparagraph (B), and inserting the 
        following:
                  ``(B) $1,399,592,400 for fiscal year 2004.''.
  (b) Commercial Operations.--
          (1) In general. --Section 301(b)(2)(A) of the Customs 
        Procedural Reform and Simplification Act of 1978 (19 
        U.S.C. 2075(b)(2)(A)) is amended--
                  (A) by striking clause (i), and inserting the 
                following:
                  ``(i) $1,642,602,000 for fiscal year 2003.''; 
                and
                  (B) by striking clause (ii), and inserting 
                the following:
                  ``(ii) $1,683,667,050 for fiscal year 
                2004.''.
          [(3) Reports.--Not later than 90 days after the date 
        of the enactment of this Act, and not later than the 
        end of each subsequent 90-day period, the Commissioner 
        of Customs shall prepare and submit to the Committee on 
        Ways and Means of the House of Representatives and the 
        Committee on Finance of the Senate a report 
        demonstrating that the development and establishment of 
        the Automated Commercial Environment computer system is 
        being carried out in a cost-effective manner and meets 
        the modernization requirements of title VI of the North 
        American Free Trade Agreement Implementation Act.]
          (3) Report.--
                  (A) In general.--Not later than December 31, 
                2016, the Commissioner responsible for U.S. 
                Customs and Border Protection shall submit to 
                the Committee on Appropriations and the 
                Committee on Finance of the Senate and the 
                Committee on Appropriations and the Committee 
                on Ways and Means of the House of 
                Representatives a report detailing--
                          (i) U.S. Customs and Border 
                        Protection's incorporation of all core 
                        trade processing capabilities, 
                        including cargo release, entry summary, 
                        cargo manifest, cargo financial data, 
                        and export data elements into the 
                        Automated Commercial Environment 
                        computer system authorized under 
                        section 13031(f)(4) of the Consolidated 
                        Omnibus Budget and Reconciliation Act 
                        of 1985 (19 U.S.C. 58c(f)(4)) not later 
                        than September 30, 2016, to conform 
                        with the admissibility criteria of 
                        agencies participating in the 
                        International Trade Data System 
                        identified pursuant to section 
                        411(d)(4)(A)(iii) of the Tariff Act of 
                        1930;
                          (ii) U.S. Customs and Border 
                        Protection's remaining priorities for 
                        processing entry summary data elements, 
                        cargo manifest data elements, cargo 
                        financial data elements, and export 
                        elements in the Automated Commercial 
                        Environment computer system, and the 
                        objectives and plans for implementing 
                        these remaining priorities;
                          (iii) the components of the National 
                        Customs Automation Program specified in 
                        subsection (a)(2) of section 411 of the 
                        Tariff Act of 1930 that have not been 
                        implemented; and
                          (iv) any additional components of the 
                        National Customs Automation Program 
                        initiated by the Commissioner to 
                        complete the development, 
                        establishment, and implementation of 
                        the Automated Commercial Environment 
                        computer system.
                  (B) Update of reports.--Not later than 
                September 30, 2017, the Commissioner shall 
                submit to the Committee on Appropriations and 
                the Committee on Finance of the Senate and the 
                Committee on Appropriations and the Committee 
                on Ways and Means of the House of 
                Representatives an updated report addressing 
                each of the matters referred to in subparagraph 
                (A), and--
                          (i) evaluating the effectiveness of 
                        the implementation of the Automated 
                        Commercial Environment computer system; 
                        and
                          (ii) detailing the percentage of 
                        trade processed in the Automated 
                        Commercial Environment every month 
                        since September 30, 2016.
  (c) Air and Marine Interdiction. Section 301(b)(3) of the 
Customs Procedural Reform and Simplification Act of 1978 (19 
U.S.C. 2075(b)(3)) is amended--
          (1) by striking subparagraph (A), and inserting the 
        following:
                  ``(A) $170,829,000 for fiscal year 2003.''; 
                and
          (2) by striking subparagraph (B), and inserting the 
        following:
                  ``(B) $175,099,725 for fiscal year 2004.''.
  (d) Submission of Out-Year Budget Projections. Section 301(a) 
of the Customs Procedural Reform and Simplification Act of 1978 
(19 U.S.C. 2075(a)) is amended by adding at the end the 
following:
  ``(3) 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 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 as provided for in 
subsection (b).''.
                              ----------                              


TARIFF ACT OF 1930

           *       *       *       *       *       *       *



TITLE III--SPECIAL PROVISIONS

           *       *       *       *       *       *       *


Part II--United States Tariff Commission

           *       *       *       *       *       *       *



SEC. 307. CONVICT MADE GOODS--IMPORTATION PROHIBITED.

  All goods, wares, articles, and merchandise mined, produced 
or manufactured wholly or in part in any foreign country by 
convict labor or/and forced labor or/and indentured labor under 
penal sanctions shall not be entitled to entry at any of the 
ports of the United States, and the importation thereof is 
hereby prohibited, and the Secretary of the Treasury is 
authorized and directed to prescribe such regulations as may be 
necessary for the enforcement of this provision. [The 
provisions of this section relating to goods, wares, articles, 
and merchandise mined, produced, or manufactured by forced 
labor or/and indentured labor, shall take effect on January 1, 
1932; but in no case shall such provisions be applicable to 
goods, wares, articles, or merchandise so mined, produced, or 
manufactured which are not mined, produced, or manufactured in 
such quantities in the United States as to meet the consumptive 
demands of the United States.]
    ``Forced labor,'' as herein used, shall mean all work or 
service which is exacted from any person under the menace of 
any penalty for its nonperformance and for which the worker 
does not offer himself voluntarily. For purposes of this 
section, the term ``forced labor or/and indentured labor'' 
includes forced or indentured child labor.

           *       *       *       *       *       *       *


SEC. 313. DRAWBACK AND REFUNDS.

  (a) Articles Made From Imported Merchandise.--Upon the 
exportation or destruction under customs supervision of 
articles manufactured or produced in the United States with the 
use of imported merchandise, provided that those articles have 
not been used prior to such exportation or destruction, [the 
full amount of the duties paid upon the merchandise so used 
shall be refunded as drawback, less 1 per centum of such 
duties, except that such] an amount calculated pursuant to 
regulations prescribed by the Secretary of the Treasury under 
subsection (l) shall be refunded as drawback, except that 
duties shall not be so refunded upon the exportation or 
destruction of flour or by-products produced from imported 
wheat. Where two or more products result from the manipulation 
of imported merchandise, the drawback shall be distributed to 
the several products in accordance with their relative values 
at the time of separation.
  (b) Substitution For Drawback Purposes.--
          (1) In general._ If imported duty-paid merchandise 
        [and any other merchandise (whether imported or 
        domestic) of the same kind and quality are] or 
        merchandise classifiable under the same 8-digit HTS 
        subheading number as such imported merchandise is used 
        in the manufacture or production of articles within a 
        period not to exceed [three years] 5 years from [the 
        receipt of such imported merchandise by the 
        manufacturer or producer of such articles] the date of 
        importation of such imported merchandise, there shall 
        be allowed upon the exportation, or destruction under 
        customs supervision, of any such articles, or articles 
        classifiable under the same 8-digit HTS subheading 
        number as such articles, notwithstanding the fact that 
        none of the imported merchandise may actually have been 
        used in the manufacture or production of the exported 
        or destroyed articles, [an amount of drawback equal to 
        that which would have been allowable had the 
        merchandise used therein been imported, but only if 
        those articles have not been used prior to such 
        exportation or destruction; but the total amount of 
        drawback allowed upon the exportation or destruction 
        under customs supervision of such articles, together 
        with the total amount of drawback allowed in respect of 
        such imported merchandise under any other provision of 
        law, shall not exceed 99 per centum of the duty paid on 
        such imported merchandise.] an amount calculated 
        pursuant to regulations prescribed by the Secretary of 
        the Treasury under subsection (l), but only if those 
        articles have not been used prior to such exportation 
        or destruction.
          (2) Requirements relating to transfer of 
        merchandise.--
                  (A) Manufacturers and producers.--Drawback 
                shall be allowed under paragraph (1) with 
                respect to an article manufactured or produced 
                using imported merchandise or other merchandise 
                classifiable under the same 8-digit HTS 
                subheading number as such imported merchandise 
                only if the manufacturer or producer of the 
                article received such imported merchandise or 
                such other merchandise, directly or indirectly, 
                from the importer.
                  (B) Exporters and destroyers.--Drawback shall 
                be allowed under paragraph (1) with respect to 
                a manufactured or produced article that is 
                exported or destroyed only if the exporter or 
                destroyer received that article or an article 
                classifiable under the same 8-digit HTS 
                subheading number as that article, directly or 
                indirectly, from the manufacturer or producer.
                  (C) Evidence of transfer.--Transfers of 
                merchandise under subparagraph (A) and 
                transfers of articles under subparagraph (B) 
                may be evidenced by business records kept in 
                the normal course of business and no additional 
                certificates of transfer or manufacture shall 
                be required.
          (3) Submission of bill of materials or formula.--
                  (A) In general.--Drawback shall be allowed 
                under paragraph (1) with respect to an article 
                manufactured or produced using imported 
                merchandise or other merchandise classifiable 
                under the same 8-digit HTS subheading number as 
                such imported merchandise only if the person 
                making the drawback claim submits with the 
                claim a bill of materials or formula 
                identifying the merchandise and article by the 
                8-digit HTS subheading number and the quantity 
                of the merchandise.
                  (B) Bill of materials and formula defined.--
                In this paragraph, the terms ``bill of 
                materials'' and ``formula'' mean records kept 
                in the normal course of business that identify 
                each component incorporated into a manufactured 
                or produced article or that identify the 
                quantity of each element, material, chemical, 
                mixture, or other substance incorporated into a 
                manufactured article.
          (4) Special rule for sought chemical elements.--
                  (A) In general.--For purposes of paragraph 
                (1), a sought chemical element may be--
                          (i) considered imported merchandise, 
                        or merchandise classifiable under the 
                        same 8-digit HTS subheading number as 
                        such imported merchandise, used in the 
                        manufacture or production of an article 
                        as described in paragraph (1); and
                          (ii) substituted for source material 
                        containing that sought chemical 
                        element, without regard to whether the 
                        sought chemical element and the source 
                        material are classifiable under the 
                        same 8-digit HTS subheading number, and 
                        apportioned quantitatively, as 
                        appropriate.
                  (B) Sought chemical element defined.--In this 
                paragraph, the term ``sought chemical element'' 
                means an element listed in the Periodic Table 
                of Elements that is imported into the United 
                States or a chemical compound consisting of 
                those elements, either separately in elemental 
                form or contained in source material.
  (c) Merchandise Not Conforming to Sample or Specifications.--
          (1) Conditions for drawback.--Upon the exportation or 
        destruction under the supervision of the Customs 
        Service of articles or merchandise--
                  (A) upon which the duties have been paid,
                  (B) which has been entered or withdrawn for 
                consumption,
                  (C) which is--
                          (i) not conforming to sample or 
                        specifications, shipped without the 
                        consent of the consignee, or determined 
                        to be defective as of the time of 
                        importation, or
                          (ii) ultimately sold at retail by the 
                        importer, or the person who received 
                        the merchandise from the importer 
                        [under a certificate of delivery], and 
                        for any reason returned to and accepted 
                        by the importer, or the person who 
                        received the merchandise from the 
                        importer [under a certificate of 
                        delivery], and
                  (D) which, within [3] 5 years after the date 
                of importation or withdrawal, as applicable, 
                has been exported or destroyed under the 
                supervision of [the Customs Service] U.S. 
                Customs and Border Protection,
         [the full amount of the duties paid upon such 
        merchandise, less 1 percent,] an amount calculated 
        pursuant to regulations prescribed by the Secretary of 
        the Treasury under subsection (l) shall be refunded as 
        drawback.
          (2) Designation of import entries.--For purposes of 
        paragraph (1)(C)(ii), drawback may be claimed by 
        designating an entry of merchandise that was imported 
        within 1 year before the date of exportation or 
        destruction of the merchandise described in paragraph 
        (1) (A) and (B) under the supervision of [the Customs 
        Service] U.S. Customs and Border Protection. The 
        merchandise designated for drawback must be identified 
        in the import documentation with the same eight-digit 
        classification number and specific product identifier 
        (such as part number, SKU, or product code) as the 
        returned merchandise.
          [(3) When drawback certificates not required.--For 
        purposes of this subsection, drawback certificates are 
        not required if the drawback claimant and the importer 
        are the same party, or if the drawback claimant is a 
        drawback successor to the importer as defined in 
        subsection (s)(3).]
          (3) Evidence of transfers.--Transfers of merchandise 
        under paragraph (1) may be evidenced by business 
        records kept in the normal course of business and no 
        additional certificates of transfer shall be required.
  (d) Flavoring Extracts and Medicinal, or Toilet 
Preparations.--Upon the exportation of flavoring extracts, 
medicinal or toilet preparations (including perfumery) 
manufactured or produced in the United States in part from 
domestic alcohol on which an internal-revenue tax has been 
paid, there shall be allowed a drawback equal in amount to the 
tax found to have been paid on the alcohol so used.
  Upon the exportation of bottled distilled spirits and wines 
manufactured or produced in the United States on which an 
internal-revenue tax has been paid or determined, there shall 
be allowed, under regulations to be prescribed by the 
Commissioner of Internal Revenue, with the approval of the 
Secretary of the Treasury, a drawback equal in amount to the 
tax found to have been paid or determined on such bottled 
distilled spirits and wines. In the case of distilled spirits, 
the preceding sentence shall not apply unless the claim for 
drawback is filed by the bottler or packager of the spirits and 
unless such spirits have been stamped or restamped, and marked, 
especially for export, under regulations prescribed by the 
Commissioner of Internal Revenue, with the approval of the 
Secretary of the Treasury.
  (e) Imported Salt for Curing Fish.--Imported salt in bond may 
be used in curing fish taken by vessels licensed to engage in 
the fisheries, and in curing fish on the shores of the 
navigable waters of the United States, whether such fish are 
taken by licensed or unlicensed vessels, and upon proof that 
the salt has been used for either of such purposes, the duties 
on the same shall be remitted.
  (f) Exportation of Meats Cured with Imported Salt.--Upon the 
exportation of meats, whether packed or smoked, which have been 
cured in the United States with imported salt, there shall be 
refunded, upon satisfactory proof that such meats have been 
cured with imported salt, the duties paid on the salt so used 
in curing such exported meats, in amounts not less than $100.
  (g) Materials for Construction and Equipment or Vessels Built 
for Foreigners.--The provisions of this section shall apply to 
materials imported and used in the construction and equipment 
of vessels built for foreign account and ownership, or for the 
government of any foreign country, notwithstanding that such 
vessels may not within the strict meaning of the term be 
articles exported.
  (h) Upon the exportation of jet aircraft engines manufactured 
or produced abroad that have been overhauled, repaired, 
rebuilt, or reconditioned in the United States with the use of 
imported merchandise, including parts, there shall be refunded, 
upon satisfactory proof that such imported merchandise has been 
so used, the duties which have been paid thereon, in amounts 
not less than $100.
  [(i) Time Limitation on Exportation.--Unless otherwise 
provided for in this section, no drawback shall be allowed 
under the provisions of this section unless the completed 
article is exported, or destroyed under the supervision of the 
Customs Service, within five years after importation of the 
imported merchandise.]
  (i) Proof of Exportation.--A person claiming drawback under 
this section based on the exportation of an article shall 
provide proof of the exportation of the article. Such proof of 
exportation--
          (1) shall establish fully the date and fact of 
        exportation and the identity of the exporter; and
          (2) may be established through the use of records 
        kept in the normal course of business or through an 
        electronic export system of the United States 
        Government, as determined by the Commissioner 
        responsible for U.S. Customs and Border Protection.
  (j) Unused Merchandise Drawback.--
          (1) If imported merchandise, on which was paid any 
        duty, tax, or fee imposed under Federal law upon entry 
        or importation--
                  (A) is, before the close of the [3-year] 5-
                year period beginning on the date of 
                importation and before the drawback claim is 
                filed--
                          (i) exported, or
                          (ii) destroyed under customs 
                        supervision; and
                  (B) is not used within the United States 
                before such exportation or destruction;
        then upon such exportation or destruction [99 percent 
        of the amount of each duty, tax, or fee so paid] an 
        amount calculated pursuant to regulations prescribed by 
        the Secretary of the Treasury under subsection (l) 
        shall be refunded as drawback. The exporter (or 
        destroyer) has the right to claim drawback under this 
        paragraph, but may endorse such right to the importer 
        or any intermediate party.
          (2) Subject to [paragraph (4)] paragraphs (4), (5), 
        and (6), if there is, with respect to imported 
        merchandise on which was paid any duty, tax, or fee 
        imposed under Federal law upon entry or importation, 
        any other merchandise (whether imported or domestic), 
        that--
                  (A) is [commercially interchangeable with] 
                classifiable under the same 8-digit HTS 
                subheading number as such imported merchandise;
                  (B) is, before the close of the [3-year] 5-
                year period beginning on the date of 
                importation of the imported merchandise and 
                before the drawback claim is filed, either 
                exported or destroyed under customs 
                supervision; and
                  (C) before such exportation or destruction--
                          (i) is not used within the United 
                        States, and
                          (ii) is in the possession of, 
                        including ownership while in bailment, 
                        in leased facilities, in transit to, or 
                        in any other manner under the 
                        operational control of, the party 
                        claiming drawback under this paragraph, 
                        if that party--
                                  (I) is the importer of the 
                                imported merchandise, or
                                  [(II) received from the 
                                person who imported and paid 
                                any duty due on the imported 
                                merchandise a certificate of 
                                delivery transferring to the 
                                party the imported merchandise, 
                                commercially interchangeable 
                                merchandise, or any combination 
                                of imported and commercially 
                                interchangeable merchandise 
                                (and any such transferred 
                                merchandise, regardless of its 
                                origin, will be treated as the 
                                imported merchandise and any 
                                retained merchandise will be 
                                treated as domestic 
                                merchandise);]
                                  (II) received the imported 
                                merchandise, other merchandise 
                                classifiable under the same 8-
                                digit HTS subheading number as 
                                such imported merchandise, or 
                                any combination of such 
                                imported merchandise and such 
                                other merchandise, directly or 
                                indirectly from the person who 
                                imported and paid any duties, 
                                taxes, and fees imposed under 
                                Federal law upon importation or 
                                entry and due on the imported 
                                merchandise (and any such 
                                transferred merchandise, 
                                regardless of its origin, will 
                                be treated as the imported 
                                merchandise and any retained 
                                merchandise will be treated as 
                                domestic merchandise);
        then, notwithstanding any other provision of law, upon 
        the exportation or destruction of such other 
        merchandise [the amount of each such duty, tax, and fee 
        paid regarding the imported merchandise shall be 
        refunded as drawback under this subsection, but in no 
        case may the total drawback on the imported 
        merchandise, whether available under this paragraph or 
        any other provision of law or any combination thereof, 
        exceed 99 percent of that duty, tax, or fee] an amount 
        calculated pursuant to regulations prescribed by the 
        Secretary of the Treasury under subsection (l) shall be 
        refunded as drawback. [For purposes of subparagraph (A) 
        of this paragraph, wine of the same color having a 
        price variation not to exceed 50 percent between the 
        imported wine and the exported wine shall be deemed to 
        be commercially interchangeable.] Notwithstanding 
        subparagraph (A), drawback shall be allowed under this 
        paragraph with respect to wine if the imported wine and 
        the exported wine are of the same color and the price 
        variation between the imported wine and the exported 
        wine does not exceed 50 percent. Transfers of 
        merchandise may be evidenced by business records kept 
        in the normal course of business and no additional 
        certificates of transfer shall be required.
          (3) The performing of any operation or combination of 
        operations (including, but not limited to, testing, 
        cleaning, repacking, inspecting, sorting, refurbishing, 
        freezing, blending, repairing, reworking, cutting, 
        slitting, adjusting, replacing components, relabeling, 
        disassembling, and unpacking), not amounting to 
        manufacture or production for drawback purposes under 
        the preceding provisions of this section on--
                  (A) the imported merchandise itself in cases 
                to which paragraph (1) applies, or
                  (B) [the commercially interchangeable 
                merchandise] merchandise classifiable under the 
                same 8-digit HTS subheading number as such 
                imported merchandise in cases to which 
                paragraph (2) applies,
        shall not be treated as a use of that merchandise for 
        purposes of applying paragraph (1)(B) or (2)(C).
          (4)(A) Effective upon the entry into force of the 
        North American Free Trade Agreement, the exportation to 
        a NAFTA country, as defined in section 2(4) of the 
        North American Free Trade Agreement Implementation Act, 
        of merchandise that is fungible with and substituted 
        for imported merchandise, other than merchandise 
        described in paragraphs (1) through (8) of section 
        203(a) of that Act, shall not constitute an exportation 
        for purposes of paragraph (2).
          (B) Beginning on January 1, 2015, the exportation to 
        Chile of merchandise that is fungible with and 
        substituted for imported merchandise, other than 
        merchandise described in paragraphs (1) through (5) of 
        section 203(a) of the United States-Chile Free Trade 
        Agreement Implementation Act, shall not constitute an 
        exportation for purposes of paragraph (2). The 
        preceding sentence shall not be construed to permit the 
        substitution of unused drawback under paragraph (2) of 
        this subsection with respect to merchandise described 
        in paragraph (2) of section 203(a) of the United 
        States-Chile Free Trade Agreement Implementation Act.
          (5)(A) For purposes of paragraph (2) and except as 
        provided in subparagraph (B), merchandise may not be 
        substituted for imported merchandise for drawback 
        purposes based on the 8-digit HTS subheading number if 
        the article description for the 8-digit HTS subheading 
        number under which the imported merchandise is 
        classified begins with the term ``other''.
          (B) In cases described in subparagraph (A), 
        merchandise may be substituted for imported merchandise 
        for drawback purposes if--
                  (i) the other merchandise and such imported 
                merchandise are classifiable under the same 10-
                digit HTS statistical reporting number; and
                  (ii) the article description for that 10-
                digit HTS statistical reporting number does not 
                begin with the term ``other''.
          (6)(A) For purposes of paragraph (2), a drawback 
        claimant may use the first 8 digits of the 10-digit 
        Schedule B number for merchandise or an article to 
        determine if the merchandise or article is classifiable 
        under the same 8-digit HTS subheading number as the 
        imported merchandise, without regard to whether the 
        Schedule B number corresponds to more than one 8-digit 
        HTS subheading number.
          (B) In this paragraph, the term ``Schedule B'' means 
        the Department of Commerce Schedule B, Statistical 
        Classification of Domestic and Foreign Commodities 
        Exported from the United States.
  [(k)(1) For purposes of subsections (a) and (b), the use of 
any domestic merchandise acquired in exchange for imported 
merchandise of the same kind and quality shall be treated as 
the use of such imported merchandise if no certificate of 
delivery is issued with respect to such imported merchandise.
  [(2) For purposes of subsections (a) and (b), the use of any 
domestic merchandise acquired in exchange for a drawback 
product of the same kind and quality shall be treated as the 
use of such drawback product if no certificate of delivery or 
certificate of manufacture and delivery pertaining to such 
drawback product is issued, other than that which documents the 
product's manufacture and delivery. As used in this paragraph, 
the term ``drawback product'' means any domestically produced 
product, manufactured with imported merchandise or any other 
merchandise (whether imported or domestic) of the same kind and 
quality, that is subject to drawback.
  [(l) Regulations.--Allowance of the privileges provided for 
in this section shall be subject to compliance with such rules 
and regulations as the Secretary of the Treasury shall 
prescribe, which may include, but need not be limited to, the 
authority for the electronic submission of drawback entries and 
the designation of the person to whom any refund or payment of 
drawback shall be made.]
  (k) Liability for Drawback Claims.--
          (1) In general.--Any person making a claim for 
        drawback under this section shall be liable for the 
        full amount of the drawback claimed.
          (2) Liability of importers.--An importer shall be 
        liable for any drawback claim made by another person 
        with respect to merchandise imported by the importer in 
        an amount equal to the lesser of--
                  (A) the amount of duties, taxes, and fees 
                that the person claimed with respect to the 
                imported merchandise; or
                  (B) the amount of duties, taxes, and fees 
                that the importer authorized the other person 
                to claim with respect to the imported 
                merchandise.
          (3) Joint and several liability.--Persons described 
        in paragraphs (1) and (2) shall be jointly and 
        severally liable for the amount described in paragraph 
        (2).
  (l) Regulations.--
          (1) In general.--Allowance of the privileges provided 
        for in this section shall be subject to compliance with 
        such rules and regulations as the Secretary of the 
        Treasury shall prescribe.
          (2) Calculation of drawback.--
                  (A) In general.--Not later than the date that 
                is 2 years after the date of the enactment of 
                the Trade Facilitation and Trade Enforcement 
                Act of 2015 (or, if later, the effective date 
                provided for in section 406(q)(2)(B) of that 
                Act), the Secretary shall prescribe regulations 
                for determining the calculation of amounts 
                refunded as drawback under this section.
                  (B) Requirements.--The regulations required 
                by subparagraph (A) for determining the 
                calculation of amounts refunded as drawback 
                under this section shall provide for a refund 
                of equal to 99 percent of the duties, taxes, 
                and fees paid with respect to the imported 
                merchandise, except that where there is 
                substitution of the merchandise or article, 
                then--
                          (i) in the case of an article that is 
                        exported, the amount of the refund 
                        shall be equal to 99 percent of the 
                        lesser of--
                                  (I) the amount of duties, 
                                taxes, and fees paid with 
                                respect to the imported 
                                merchandise; or
                                  (II) the amount of duties, 
                                taxes, and fees that would 
                                apply to the exported article 
                                if the exported article were 
                                imported; and
                          (ii) in the case of an article that 
                        is destroyed, the amount of the refund 
                        shall be an amount that is--
                                  (I) equal to 99 percent of 
                                the lesser of--
                                          (aa) the amount of 
                                        duties, taxes, and fees 
                                        paid with respect to 
                                        the imported 
                                        merchandise; and
                                          (bb) the amount of 
                                        duties, taxes, and fees 
                                        that would apply to the 
                                        destroyed article if 
                                        the destroyed article 
                                        were imported; and
                                  (II) reduced by the value of 
                                materials recovered during 
                                destruction as provided in 
                                subsection (x).
          (3) Status reports on regulations.--Not later than 
        the date that is one year after the date of the 
        enactment of the Trade Facilitation and Trade 
        Enforcement Act of 2015, and annually thereafter until 
        the regulations required by paragraph (2) are final, 
        the Secretary shall submit to Congress a report on the 
        status of those regulations.
  (m) Source of Payment.--Any drawback of duties that may be 
authorized under the provisions of this Act shall be paid from 
the customs receipts of Puerto Rico, if the duties were 
originally paid into the Treasury of Puerto Rico.
  (n) Refunds, Waivers, or Reductions Under Certain Free Trade 
Agreements.--(1) For purposes of this subsection and subsection 
(o)--
          (A) the term ``NAFTA Act'' means the North American 
        Free Trade Agreement Implementation Act;
          (B) the terms ``NAFTA country'' and ``good subject to 
        NAFTA drawback'' have the same respective meanings that 
        are given such terms in sections 2(4) and 203(a) of the 
        NAFTA Act;
          (C) a refund, waiver, or reduction of duty under 
        paragraph (2) of this subsection or paragraph (1) of 
        subsection (o) is subject to section 508(b)(2)(B); and
          (D) the term ``good subject to Chile FTA drawback'' 
        has the meaning given that term in section 203(a) of 
        the United States-Chile Free Trade Agreement 
        Implementation Act.
  (2) For purposes of subsections (a), (b), (f), (h), (p), and 
(q), if an article that is exported to a NAFTA country is a 
good subject to NAFTA drawback, no customs duties on the good 
may be refunded, waived, or reduced in an amount that exceeds 
the lesser of--
          (A) the total amount of customs duties paid or owed 
        on the good on importation into the United States, or
          (B) the total amount of customs duties paid on the 
        good to the NAFTA country.
  (3) If Canada ceases to be a NAFTA country and the suspension 
of the operation of the United States-Canada Free-Trade 
Agreement thereafter terminates, then for purposes of 
subsections (a), (b), (f), (h), (j)(2), and (q), the shipment 
to Canada during the period such Agreement is in operation of 
an article made from or substituted for, as appropriate, a 
drawback eligible good under section 204(a) of the United 
States-Canada Free-Trade Implementation Act of 1988 does not 
constitute an exportation.
  (4)(A) For purposes of subsections (a), (b), (f), (h), 
(j)(2), (p), and (q), if an article that is exported to Chile 
is a good subject to Chile FTA drawback, no customs duties on 
the good may be refunded, waived, or reduced, except as 
provided in subparagraph (B).
  (B) The customs duties referred to in subparagraph (A) may be 
refunded, waived, or reduced by--
          (i) 100 percent during the 8-year period beginning on 
        January 1, 2004;
          (ii) 75 percent during the 1-year period beginning on 
        January 1, 2012;
          (iii) 50 percent during the 1-year period beginning 
        on January 1, 2013; and
          (iv) 25 percent during the 1-year period beginning on 
        January 1, 2014.
  (o) Special Rules for Certain Vessels and Imported 
Materials.--(1) For purposes of subsection (g), if--
          (A) a vessel is built for the account and ownership 
        of a resident of a NAFTA country or the government of a 
        NAFTA country, and
          (B) imported materials that are used in the 
        construction and equipment of the vessel are goods 
        subject to NAFTA drawback,
the amount of customs duties refunded, waived, or reduced on 
such materials may not exceed the lesser of the total amount of 
customs duties paid or owed on the materials on importation 
into the United States or the total amount of customs duties 
paid on the vessel to the NAFTA country.
  (2) If Canada ceases to be a NAFTA country and the suspension 
of the operation of the United States-Canada Free-Trade 
Agreement thereafter terminates, then for purposes of 
subsection (g), vessels built for Canadian account and 
ownership, or for the Government of Canada, may not be 
considered to be built for any foreign account and ownership, 
or for the government of any foreign country, except to the 
extent that the materials in such vessels are drawback eligible 
goods under section 204(a) of the United States-Canada Free-
Trade Implementation Act of 1988.
  (3) For purposes of subsection (g), if--
          (A) a vessel is built for the account and ownership 
        of a resident of Chile or the Government of Chile, and
          (B) imported materials that are used in the 
        construction and equipment of the vessel are goods 
        subject to Chile FTA drawback, as defined in section 
        203(a) of the United States-Chile Free Trade Agreement 
        Implementation Act,
no customs duties on such materials may be refunded, waived, or 
reduced, except as provided in paragraph (4).
  (4) The customs duties referred to in paragraph (3) may be 
refunded, waived or reduced by--
          (A) 100 percent during the 8-year period beginning on 
        January 1, 2004;
          (B) 75 percent during the 1-year period beginning on 
        January 1, 2012;
          (C) 50 percent during the 1-year period beginning on 
        January 1, 2013; and
          (D) 25 percent during the 1-year period beginning on 
        January 1, 2014.
  (p) Substitution of Finished Petroleum Derivatives.--
          (1) In general.--Notwithstanding any other provision 
        of this section, if--
                  (A) an article (hereafter referred to in this 
                subsection as the ``exported article'') of the 
                same kind and quality as a qualified article is 
                exported;
                  (B) the requirements set forth in paragraph 
                (2) are met; and
                  (C) a drawback claim is filed regarding the 
                exported article;
        drawback shall be allowed as described in paragraph 
        (4).
          (2) Requirements.--The requirements referred to in 
        paragraph (1) are as follows:
                  (A) The exporter of the exported article--
                          (i) manufactured or produced a 
                        qualified article in a quantity equal 
                        to or greater than the quantity of the 
                        exported article,
                          (ii) purchased or exchanged, directly 
                        or indirectly, a qualified article from 
                        a manufacturer or producer described in 
                        subsection (a) or (b) in a quantity 
                        equal to or greater than the quantity 
                        of the exported article,
                          (iii) imported a qualified article in 
                        a quantity equal to or greater than the 
                        quantity of the exported article, or
                          (iv) purchased or exchanged, directly 
                        or indirectly, a qualified article from 
                        an importer in a quantity equal to or 
                        greater than the quantity of the 
                        exported article.
                  (B) In the case of the requirement described 
                in subparagraph (A)(ii), the manufacturer or 
                producer produced the qualified article in a 
                quantity equal to or greater than the quantity 
                of the exported article.
                  (C) In the case of the requirement of 
                subparagraph (A)(i) or (A)(ii), the exported 
                article is exported during the period that the 
                qualified article described in subparagraph 
                (A)(i) or (A)(ii) (whichever is applicable) is 
                manufactured or produced, or within 180 days 
                after the close of such period.
                  (D) In the case of the requirement of 
                subparagraph (A)(i) or (A)(ii), the specific 
                petroleum refinery or production facility which 
                made the qualified article concerned is 
                identified.
                  (E) In the case of the requirement of 
                subparagraph (A)(iii) or (A)(iv), the exported 
                article is exported within 180 days after the 
                date of entry of an imported qualified article 
                described in subparagraph (A)(iii) or (A)(iv) 
                (whichever is applicable).
                  (F) Except as otherwise specifically provided 
                in this subsection, the drawback claimant 
                complies with all requirements of this section, 
                including providing certificates which 
                establish the drawback eligibility of articles 
                for which drawback is claimed.
                  (G) The manufacturer, producer, importer, 
                transferor, exporter, and drawback claimant of 
                the qualified article and the exported article 
                maintain all records required by regulation.
          (3) Definition of qualified article, etc.--For 
        purposes of this subsection--
                  (A) The term ``qualified article'' means an 
                article--
                          (i) described in--
                                  (I) headings 2707, 2708, 
                                2709.00, 2710, 2711, 2712, 
                                2713, 2714, 2715, 2901, and 
                                2902, and subheadings 
                                2903.21.00, 2909.19.14, 
                                2917.36, 2917.39.04, 
                                2917.39.15, 2926.10.00, 
                                3811.21.00, and 3811.90.00 of 
                                the [Harmonized Tariff Schedule 
                                of the United States] HTS, or
                                  (II) headings 3901 through 
                                3914 of such Schedule (as such 
                                headings apply to the primary 
                                forms provided under Note 6 to 
                                chapter 39 of the [Harmonized 
                                Tariff Schedule of the United 
                                States] HTS), and
                          (ii) which is--
                                  (I) manufactured or produced 
                                as described in subsection (a) 
                                or (b) from crude petroleum or 
                                a petroleum derivative,
                                  (II) imported duty-paid, or
                                  (III) an article of the same 
                                kind and quality as described 
                                in subparagraph (B), or any 
                                combination thereof, that is 
                                transferred[, as so certified 
                                in a certificate of delivery or 
                                certificate of manufacture and 
                                delivery] in a quantity not 
                                greater than the quantity of 
                                articles purchased or 
                                exchanged.
                        The transferred merchandise described 
                        in subclause (III), regardless of its 
                        origin[, so designated on the 
                        certificate of delivery or certificate 
                        of manufacture and delivery] shall be 
                        the qualified article for purposes of 
                        this section. [A party who issues a 
                        certificate of delivery, or certificate 
                        of manufacture and delivery, shall also 
                        certify to the Commissioner of Customs 
                        that it has not, and will not, issue 
                        such certificates for a quantity 
                        greater than the amount eligible for 
                        drawback and that appropriate records 
                        will be maintained to demonstrate that 
                        fact.] The party transferring the 
                        merchandise shall maintain records kept 
                        in the normal course of business to 
                        demonstrate the transfer.
                  (B) An article, including an imported, 
                manufactured, substituted, or exported article, 
                is of the same kind and quality as the 
                qualified article for which it is substituted 
                under this subsection if it is a product that 
                is commercially interchangeable with or 
                referred to under the same eight-digit 
                classification of the [Harmonized Tariff 
                Schedule of the United States] HTS as the 
                qualified article. If an article is referred to 
                under the same eight-digit classification of 
                the [Harmonized Tariff Schedule of the United 
                States] HTS as the qualified article on January 
                1, 2000, then whether or not the article has 
                been reclassified under another eight-digit 
                classification after January 1, 2000, the 
                article shall be deemed to be an article that 
                is referred to under the same eight-digit 
                classification of such Schedule as the 
                qualified article for purposes of the preceding 
                sentence.
                  (C) The term ``drawback claimant'' means the 
                exporter of the exported article or the 
                refiner, producer, or importer of either the 
                qualified article or the exported article. Any 
                person eligible to file a drawback claim under 
                this subparagraph may designate another person 
                to file such claim.
          (4) Limitation on drawback.--The amount of drawback 
        payable under this subsection shall not exceed the 
        amount of drawback that would be attributable to the 
        article--
                  (A) manufactured or produced under subsection 
                (a) or (b) by the manufacturer or producer 
                described in clause (i) or (ii) of paragraph 
                (2)(A), or
                  (B) imported under clause (iii) or (iv) of 
                paragraph (2)(A) had the claim qualified for 
                drawback under subsection (j).
          (5) Special rules for ethyl alcohol.--For purposes of 
        this subsection, any duty paid under subheading 
        9901.00.50 of the [Harmonized Tariff Schedule of the 
        United States] HTS on imports of ethyl alcohol or a 
        mixture of ethyl alcohol may not be refunded if the 
        exported article upon which a drawback claim is based 
        does not contain ethyl alcohol or a mixture of ethyl 
        alcohol.
  (q) Packaging Material.--
          (1) Packaging material under subsections (c) and 
        (j).--Packaging material, whether imported and duty 
        paid, and claimed for drawback under either subsection 
        (c) or (j)(1), or imported and duty paid, or 
        substituted, and claimed for drawback under subsection 
        (j)(2), shall be eligible for drawback, upon 
        exportation, [of 99 percent of any duty, tax, or fee 
        imposed under Federal law on such imported material] in 
        an amount calculated pursuant to regulations prescribed 
        by the Secretary of the Treasury under subsection (l).
          (2) Packaging material under subsections (a) and 
        (b).--Packaging material that is manufactured or 
        produced under subsection (a) or (b) shall be eligible 
        for drawback, upon exportation, [of 99 percent of any 
        duty, tax, or fee imposed under Federal law on the 
        imported or substituted merchandise used to manufacture 
        or produce such material] in an amount calculated 
        pursuant to regulations prescribed by the Secretary of 
        the Treasury under subsection (l).
          (3) Contents.--Packaging material described in 
        paragraphs (1) and (2) shall be eligible for drawback 
        whether or not [they contain] it contains articles or 
        merchandise, and whether or not any articles or 
        merchandise they contain are eligible for drawback.
          (4) Employing packaging material for its intended 
        purpose prior to exportation.--The use of any packaging 
        material for its intended purpose prior to exportation 
        shall not be treated as a use of such material prior to 
        exportation for purposes of applying subsection (a), 
        (b), or (c), or paragraph (1)(B) or (2)(C)(i) of 
        subsection (j).
  (r) Filing Drawback Claims.--
          (1) [A drawback entry and all documents necessary to 
        complete a drawback claim, including those issued by 
        the Customs Service, shall be filed or applied for, as 
        applicable, within 3 years after the date of 
        exportation or destruction of the articles on which 
        drawback is claimed, except that any landing 
        certificate required by regulation shall be filed 
        within the time limit prescribed in such regulation.] A 
        drawback entry shall be filed or applied for, as 
        applicable, not later than 5 years after the date on 
        which merchandise on which drawback is claimed was 
        imported. Claims not completed within the [3-year] 5-
        year period shall be considered abandoned. No extension 
        will be granted unless it is established that [the 
        Customs Service] U.S. Customs and Border Protection was 
        responsible for the untimely filing.
          (2) A drawback entry for refund filed pursuant to any 
        subsection of this section shall be deemed filed 
        pursuant to any other subsection of this section should 
        it be determined that drawback is not allowable under 
        the entry as originally filed but is allowable under 
        such other subsection.
          (3)(A) [The Customs Service] U.S. Customs and Border 
        Protection may, notwithstanding the limitation set 
        forth in paragraph (1), extend the time for filing a 
        drawback claim for a period not to exceed 18 months, 
        if--
                  (i) the claimant establishes to the 
                satisfaction of [the Customs Service] U.S. 
                Customs and Border Protection that the claimant 
                was unable to file the drawback claim because 
                of an event declared by the 
                President to be a major disaster on or after 
                January 1, 1994; and
                  (ii) the claimant files a request for such 
                extension with [the Customs Service] U.S. 
                Customs and Border Protection--
                          (I) within 1 year from the last day 
                        of the [3-year] 5-year period referred 
                        to in paragraph (1), or
                          (II) within 1 year after the date of 
                        the enactment of this paragraph,
                whichever is later.
          (B) If an extension is granted with respect to a 
        request filed under this paragraph, [the periods of 
        time for retaining records set forth in subsection (t) 
        of this section and] the period of time for retaining 
        records set forth in section 508(c)(3) shall be 
        extended for an additional 18 months or, in a case to 
        which subparagraph (A)(ii) applies, for a period not to 
        exceed 1 year from the date the claim is filed.
          (C) For purposes of this paragraph, the term ``major 
        disaster'' has the meaning given that term in section 
        102(2) of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5122(2)).
          (4) All drawback claims filed on and after the date 
        that is 2 years after the date of the enactment of the 
        Trade Facilitation and Trade Enforcement Act of 2015 
        (or, if later, the effective date provided for in 
        section 406(q)(2)(B) of that Act) shall be filed 
        electronically.
  (s) Designation of Merchandise by Successor.--
          (1) For purposes of subsection (b), a drawback 
        successor may designate imported merchandise used by 
        the predecessor before the date of succession as the 
        basis for drawback on articles manufactured by the 
        drawback successor after the date of succession.
          (2) For purposes of subsection (j)(2), a drawback 
        successor may designate--
                  (A) imported merchandise which the 
                predecessor, before the date of succession, 
                imported; or
                  [(B) imported merchandise, commercially 
                interchangeable merchandise, or any combination 
                of imported and commercially interchangeable 
                merchandise for which the predecessor received, 
                before the date of succession, from the person 
                who imported and paid any duty due on the 
                imported merchandise a certificate of delivery 
                transferring to the predecessor such 
                merchandise;]
                  (B) subject to paragraphs (5) and (6) of 
                subsection (j), imported merchandise, other 
                merchandise classifiable under the same 8-digit 
                HTS subheading number as such imported 
                merchandise, or any combination of such 
                imported merchandise and such other 
                merchandise, that the predecessor received, 
                before the date of succession, from the person 
                who imported and paid any duties, taxes, and 
                fees due on the imported merchandise;
        as the basis for drawback on merchandise possessed by 
        the drawback predecessor after the date of succession.
          (3) For purposes of this subsection, the term 
        ``drawback successor'' means an entity to which another 
        entity (in this subsection referred to as the 
        ``predecessor'') has transferred by written agreement, 
        merger, or corporate resolution--
                  (A) all or substantially all of the rights, 
                privileges, immunities, powers, duties, and 
                liabilities of the predecessor; or
                  (B) the assets and other business interests 
                of a division, plant, or other business unit of 
                such predecessor, but only if in such transfer 
                the value of the transferred realty, 
                personalty, and intangibles (other than 
                drawback rights, inchoate or otherwise) exceeds 
                the value of all transferred drawback rights, 
                inchoate or otherwise.
          (4) No drawback shall be paid under this subsection 
        until either the predecessor or the drawback successor 
        (who shall also certify that it has the predecessor's 
        records) [certifies that--]
                  [(A) the transferred merchandise was not and 
                will not be claimed by the predecessor, and
                  [(B) the predecessor did not and will not 
                issue any certificate to any other person that 
                would enable that person to claim drawback.]  
                certifies that the transferred merchandise was 
                not and will not be claimed by the predecessor.
  [(t) Drawback Certificates.--Any person who issues a 
certificate which would enable another person to claim drawback 
shall be subject to the recordkeeping provisions of this Act, 
with the retention period beginning on the date that such 
certificate is issued.]
  (u) Eligibility of Entered or Withdrawn Merchandise.--
Imported merchandise that has not been regularly entered or 
withdrawn for consumption shall not satisfy any requirement for 
use, exportation, or destruction under this section.
  (v) Multiple Drawback Claims.--Merchandise that is exported 
or destroyed to satisfy any claim for drawback shall not be the 
basis of any other claim for drawback; except that appropriate 
credit and deductions for claims covering components or 
ingredients of such merchandise shall be made in computing 
drawback payments.
  (w) Limited Applicability for Certain Agricultural 
Products.--
          (1) In general.--No drawback shall be available with 
        respect to an agricultural product subject to the over-
        quota rate of duty established under a tariff-rate 
        quota, except pursuant to subsection (j)(1).
          (2) Application to tobacco.--Notwithstanding 
        paragraph (1), drawback shall also be available 
        pursuant to subsection (a) with respect to any tobacco 
        subject to the over-quota rate of duty established 
        under a tariff-rate quota.
  (x) Drawbacks for Recovered Materials.--For purposes of 
subsections (a), (b), [and (c)] (c), and (j), the term 
``destruction'' includes a process by which materials are 
recovered from imported merchandise or from an article 
manufactured from imported merchandise. In determining the 
amount of duties to be refunded as drawback to a claimant under 
this subsection, the value of recovered materials (including 
the value of any tax benefit or royalty payment) that accrues 
to the drawback claimant shall be deducted from the value of 
the imported merchandise that is destroyed, or from the value 
of the merchandise used, or designated as used, in the 
manufacture of the article.
  (y) Articles Shipped to the United States Insular 
Possessions.--Articles described in subsection (j)(1) shall be 
eligible for drawback under this section if duty was paid on 
the merchandise upon importation into the United States and the 
person claiming the drawback demonstrates that the merchandise 
has entered the customs territory of the United States Virgin 
Islands, American Samoa, Wake Island, Midway Islands, Kingman 
Reef, Guam, Canton Island, Enderbury Island, Johnston Island, 
or Palmyra Island.
  (4)(A) For purposes of subsections (a), (b), (f), (h), 
(j)(2), (p), and (q), if an article that is exported to Chile 
is a good subject to Chile FTA drawback, no customs duties on 
the good may be refunded, waived, or reduced, except as 
provided in subparagraph (B).
  (B) The customs duties referred to in subparagraph (A) may be 
refunded, waived, or reduced by--
          (i) 100 percent during the 8-year period beginning on 
        January 1, 2004;
          (ii) 75 percent during the 1-year period beginning on 
        January 1, 2012;
          (iii) 50 percent during the 1-year period beginning 
        on January 1, 2013; and
          (iv) 25 percent during the 1-year period beginning on 
        January 1, 2014.
  (z) Definitions.--In this section:
          (1) Directly.--The term ``directly'' means a transfer 
        of merchandise or an article from one person to another 
        person without any intermediate transfer.
          (2) HTS.--The term ``HTS'' means the Harmonized 
        Tariff Schedule of the United States.
          (3) Indirectly.--The term ``indirectly'' means a 
        transfer of merchandise or an article from one person 
        to another person with one or more intermediate 
        transfers.

           *       *       *       *       *       *       *


SEC. 321. ADMINISTRATIVE EXEMPTIONS.

  (a) The Secretary of the Treasury, in order to avoid expense 
and inconvenience to the Government disproportionate to the 
amount of revenue that would otherwise be collected, is hereby 
authorized, under such regulations as he shall prescribe, to--
          (1) disregard a difference of an amount specified by 
        the Secretary by regulation, but not less than $20, 
        between the total estimated duties, fees, and taxes 
        deposited, or the total duties fees, and taxes 
        tentatively assessed, with respect to any entry of 
        merchandise and the total amount of duties, fees, 
        taxes, and interest actually accruing thereon;
          (2) admit articles free of duty and of any tax 
        imposed on or by reason of importation, but the 
        aggregate fair retail value in the country of shipment 
        of articles imported by one person on one day and 
        exempted from the payment of duty shall not exceed an 
        amount specified by the Secretary by regulation, but 
        not less than--
                  (A) $100 in the case of articles sent as bona 
                fide gifts from persons in foreign countries to 
                persons in the United States $200, in the case 
                of articles sent as bona fide gifts from 
                persons in the Virgin Islands, Guam, and 
                America Samoa), or
                  (B) $200 in the case of articles 
                accompanying, and for the personal or household 
                use of, persons arriving in the United States 
                who are not entitled to any exemption from duty 
                under subheading 9804.00.30, 9804.00.65, or 
                9804.00.70 of this Act, or
                  (C) [$200] $800 in any other case.
        The privilege of this subdivision (2) shall not be 
        granted in any case in which merchandise covered by a 
        single order or contract is forwarded in separate lots 
        to secure the benefit of this subdivision (2); and
          (3) waive the collection of duties, fees, taxes, and 
        interest due on entered merchandise when such duties, 
        fees, taxes, or interest are less than $20 or such 
        greater amount as may be specified by the Secretary by 
        regulation.
  (b) The Secretary of the Treasury is authorized by 
regulations to prescribe exceptions to any exemption provided 
for in subsection (a) whenever he finds that such action is 
consistent with the purpose of subsection (a) or is necessary 
for any reason to protect the revenue or to prevent unlawful 
importations.

           *       *       *       *       *       *       *


                  TITLE IV--ADMINISTRATIVE PROVISIONS

PART I--DEFINITIONS AND NATIONAL CUSTOMS AUTOMATION PROGRAM

           *       *       *       *       *       *       *



             Subpart B--National Customs Automation Program


SEC. 411. NATIONAL CUSTOMS AUTOMATION PROGRAM.

  (a) Establishment.--The Secretary shall establish the 
National Customs Automation Program (hereinafter in this 
subpart referred to as the ``Program'') which shall be an 
automated and electronic system for processing commercial 
importations and shall include the following existing and 
planned components:
          (1) Existing components:
                  (A) The electronic entry of merchandise.
                  (B) The electronic entry summary of required 
                information.
                  (C) The electronic transmission of invoice 
                information.
                  (D) The electronic transmission of manifest 
                information.
                  (E) Electronic payments of duties, fees, and 
                taxes.
                  (F) The electronic status of liquidation and 
                reliquidation.
                  (G) The electronic selection of high risk 
                entries for examination (cargo selectivity and 
                entry summary selectivity).
          (2) Planned components:
                  (A) The electronic filing and status of 
                protests.
                  (B) The electronic filing (including remote 
                filing under section 414) of entry information 
                with the Customs Service at any location.
                  (C) The electronic filing of import activity 
                summary statements and reconciliation.
                  (D) The electronic filing of bonds.
                  (E) The electronic penalty process.
                  (F) The electronic filing of drawback claims, 
                records, or entries.
                  (G) Any other component initiated by the 
                Customs Service to carry out the goals of this 
                subpart.
  (b) Participation in Program.--The Secretary shall by 
regulation prescribe the eligibility criteria for participation 
in the Program. The Secretary may, by regulation, require the 
electronic submission of information described in subsection 
(a) or any other information required to be submitted to the 
Customs Service separately pursuant to this subpart.
  (c) Foreign-Trade Zones.--Not later than January 1, 2000, the 
Secretary shall provide for the inclusion of commercial 
importation data from foreign-trade zones under the Program.
  (d) International Trade Data System.--
          (1) Establishment.--
                  (A) In general.--The Secretary of the 
                Treasury (in this subsection, referred to as 
                the ``Secretary'') shall oversee the 
                establishment of an electronic trade data 
                interchange system to be known as the 
                ``International Trade Data System'' (ITDS). The 
                ITDS shall be implemented not later than the 
                date that the Automated Commercial Environment 
                (commonly referred to as ``ACE'') is fully 
                implemented.
                  (B) Purpose.--The purpose of the ITDS is to 
                eliminate redundant information requirements, 
                to efficiently regulate the flow of commerce, 
                and to effectively enforce laws and regulations 
                relating to international trade, by 
                establishing a single portal system, operated 
                by the United States Customs and Border 
                Protection, for the collection and distribution 
                of standard electronic import and export data 
                required by all participating Federal agencies.
                  (C) Participation.--
                          (i) In general.--All Federal agencies 
                        that require documentation for clearing 
                        or licensing the importation and 
                        exportation of cargo shall participate 
                        in the ITDS.
                          (ii) Waiver.--The Director of the 
                        Office of Management and Budget may 
                        waive, in whole or in part, the 
                        requirement for participation for any 
                        Federal agency based on the vital 
                        national interest of the United States.
                  (D) Consultation.--The Secretary shall 
                consult with and assist the United States 
                Customs and Border Protection and other 
                agencies in the transition from paper to 
                electronic format for the submission, issuance, 
                and storage of documents relating to data 
                required to enter cargo into the United States. 
                In so doing, the Secretary shall also consult 
                with private sector stakeholders, including the 
                Commercial Operations Advisory Committee, in 
                developing uniform data submission 
                requirements, procedures, and schedules, for 
                the ITDS.
                  (E) Coordination.--The Secretary shall be 
                responsible for coordinating the operation of 
                the ITDS among the participating agencies and 
                the office within the United States Customs and 
                Border Protection that is responsible for 
                maintaining the ITDS.
          (2) Data elements.--
                  (A) In general.--The Interagency Steering 
                Committee (established under paragraph (3)) 
                shall, in consultation with the agencies 
                participating in the ITDS, define the standard 
                set of data elements to be collected, stored, 
                and shared in the ITDS, consistent with laws 
                applicable to the collection and protection of 
                import and export information. The Interagency 
                Steering Committee shall periodically review 
                the data elements in order to update the 
                standard set of data elements, as necessary.
                  (B) Commitments and obligations.--The 
                Interagency Steering Committee shall ensure 
                that the ITDS data requirements are compatible 
                with the commitments and obligations of the 
                United States as a member of the World Customs 
                Organization (WCO) and the World Trade 
                Organization (WTO) for the entry and movement 
                of cargo.
          (3) Interagency steering committee.--There is 
        established an Interagency Steering Committee (in this 
        section, referred to as the ``Committee''). The members 
        of the Committee shall include the Secretary (who shall 
        serve as the chairperson of the Committee), the 
        Director of the Office of Management and Budget, and 
        the head of each agency participating in the ITDS. The 
        Committee shall assist the Secretary in overseeing the 
        implementation of, and participation in, the ITDS.
          (4) Information technology infrastructure.--
                  (A) In general.--The Secretary shall work 
                with the head of each agency participating in 
                the ITDS and the Interagency Steering Committee 
                to ensure that each agency--
                          (i) develops and maintains the 
                        necessary information technology 
                        infrastructure to support the operation 
                        of the ITDS and to submit all data to 
                        the ITDS electronically;
                          (ii) enters into a memorandum of 
                        understanding, or takes such other 
                        action as is necessary, to provide for 
                        the information sharing between the 
                        agency and U.S. Customs and Border 
                        Protection necessary for the operation 
                        and maintenance of the ITDS;
                          (iii) not later than June 30, 2016, 
                        identifies and transmits to the 
                        Commissioner responsible for U.S. 
                        Customs and Border Protection the 
                        admissibility criteria and data 
                        elements required by the agency to 
                        authorize the release of cargo by U.S. 
                        Customs and Border Protection for 
                        incorporation into the operational 
                        functionality of the Automated 
                        Commercial Environment computer system 
                        authorized under section 13031(f)(4) of 
                        the Consolidated Omnibus Budget and 
                        Reconciliation Act of 1985 (19 U.S.C. 
                        58c(f)(4)); and
                          (iv) not later than December 31, 
                        2016, utilizes the ITDS as the primary 
                        means of receiving from users the 
                        standard set of data and other relevant 
                        documentation, exclusive of 
                        applications for permits, licenses, or 
                        certifications required for the release 
                        of imported cargo and clearance of 
                        cargo for export.
                  (B) Rule of construction.--Nothing in this 
                paragraph shall be construed to require any 
                action to be taken that would compromise an 
                ongoing law enforcement investigation or 
                national security.
          [(4)] (5) Report.--The President shall submit a 
        report before the end of each fiscal year to the 
        Committee on Finance of the Senate and the Committee on 
        Ways and Means of the House of Representatives. Each 
        report shall include information on--
                  (A) the status of the ITDS implementation;
                  (B) the extent of participation in the ITDS 
                by Federal agencies;
                  (C) the remaining barriers to any agency's 
                participation;
                  (D) the consistency of the ITDS with 
                applicable standards established by the World 
                Customs Organization and the World Trade 
                Organization;
                  (E) recommendations for technological and 
                other improvements to the ITDS; and
                  (F) the status of the development, 
                implementation, and management of the Automated 
                Commercial Environment within the United States 
                Customs and Border Protection.
          [(5)] (6) Sense of congress.--It is the sense of 
        Congress that agency participation in the ITDS is an 
        important priority of the Federal Government and that 
        the Secretary shall coordinate the operation of the 
        ITDS closely among the participating agencies and the 
        office within the United States Customs and Border 
        Protection that is responsible for maintaining the 
        ITDS.
          [(6)] (7) Construction.--Nothing in this section 
        shall be construed as amending or modifying subsection 
        (g) of section 301 of title 13, United States Code.
          [(7)] (8) Definition.--The term ``Commercial 
        Operations Advisory Committee'' means the Advisory 
        Committee established pursuant to [section 9503(c) of 
        the Omnibus Budget Reconciliation Act of 1987 (19 
        U.S.C. 2071 note)] section 109 of the Trade 
        Facilitation and Trade Enforcement Act of 2015 or any 
        successor committee.

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

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SEC. 484C. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.

  (a) In General.--Except as provided in subsection (c), if an 
importer of record under section 484 of this Act is not a 
resident of the United States, the Commissioner of U.S. Customs 
and Border Protection shall require the non-resident importer 
to designate a resident agent in the United States subject to 
the requirements described in subsection (b).
  (b) Requirements.--The requirements described in this 
subsection are the following:
          (1) The resident agent shall be authorized to accept 
        service of process against the non-resident importer in 
        connection with the importation of merchandise.
          (2) The Commissioner of U.S. Customs and Border 
        Protection shall require the non-resident importer to 
        establish a power of attorney with the resident agent 
        in connection with the importation of merchandise.
  (c) Non-applicability.--The requirements of this section 
shall not apply with respect to a non-resident importer who is 
a validated Tier 2 or Tier 3 participant in the Customs-Trade 
Partnership Against Terrorism program established under 
subtitle B of title II of the SAFE Port Act (6 U.S.C. 961 et 
seq.).
  (d) Penalties.--
          (1) In general.--It shall be unlawful for any person 
        to import into the United States any merchandise in 
        violation of this section.
          (2) Civil penalties.--Any person who violates 
        paragraph (1) shall be liable for a civil penalty of 
        $50,000 for each such violation.
          (3) Other penalties.--In addition to the penalties 
        specified in paragraph (2), any violation of this 
        section that violates any other customs and trade laws 
        of the United States shall be subject to any applicable 
        civil and criminal penalty, including seizure and 
        forfeiture, that may be imposed under such customs or 
        trade law or title 18, United States Code, with respect 
        to the importation of merchandise.
          (4) Definition.--In this subsection, the term 
        ``customs and trade laws of the United States'' has the 
        meaning given such term in section 2 of the Customs 
        Trade Facilitation and Enforcement Act of 2015.

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SEC. 508. RECORDKEEPING.

  (a) Requirements.--Any--
          (1) owner, importer, consignee, importer of record, 
        entry filer, or other party who--
                  (A) imports merchandise into the customs 
                territory of the United States, files a 
                drawback claim, or transports or stores 
                merchandise carried or held under bond, or
                  (B) knowingly causes the importation or 
                transportation or storage of merchandise 
                carried or held under bond into or from the 
                customs territory of the United States;
          (2) agent of any party described in paragraph (1); or
          (3) person whose activities require the filing of a 
        declaration or entry, or both;
shall make, keep, and render for examination and inspection 
records (which for purposes of this section include, but are 
not limited to, statements, declarations, documents and 
electronically generated or machine readable data) which--
          (A) pertain to any such activity, or to the 
        information contained in the records required by this 
        Act in connection with any such activity; and
          (B) are normally kept in the ordinary course of 
        business.
  (b) Exportations to NAFTA Countries.--
          (1) Definitions.--As used in this subsection--
                  (A) The term ``associated records'' means, in 
                regard to an exported good under paragraph (2), 
                records associated with--
                          (i) the purchase of, cost of, value 
                        of, and payment for, the good;
                          (ii) the purchase of, cost of, value 
                        of, and payment for, all material, 
                        including indirect materials, used in 
                        the production of the good; and
                          (iii) the production of the good.
                For purposes of this subparagraph, the terms 
                ``indirect 
                material,''``material,''``preferential tariff 
                treatment,''``used,'' and ``value'' have the 
                respective meanings given them in articles 415 
                and 514 of the North American Free Trade 
                Agreement.
                  (B) The term ``NAFTA Certificate of Origin'' 
                means the certification, established under 
                article 501 of the North American Free Trade 
                Agreement, that a good qualifies as an 
                originating good under such Agreement.
          (2) Exports to nafta countries.--
                  (A) In general.--Any person who completes and 
                signs a NAFTA Certificate of Origin for a good 
                for which preferential treatment under the 
                North American Free Trade Agreement is claimed 
                shall make, keep, and render for examination 
                and inspection all records relating to the 
                origin of the good (including the Certificate 
                or copies thereof) and the associated records.
                  (B) Claims for certain waivers, reductions, 
                or refunds of duties or for credit against 
                bonds.--
                          (i) In general.--Any person that 
                        claims with respect to an article--
                                  (I) a waiver or reduction of 
                                duty under the eleventh 
                                paragraph of section 311, 
                                section 312(b)(1) or (4), 
                                section 562(2), or the proviso 
                                preceding the last proviso to 
                                section 3(a) of the Foreign 
                                Trade Zones Act;
                                  (II) a credit against a bond 
                                under section 312(d); or
                                  (III) a refund, waiver, or 
                                reduction of duty under section 
                                313(n)(2) or (o)(1);
                        must disclose to the Customs Service 
                        the information described in clause 
                        (ii).
                          (ii) Information required.--Within 30 
                        days after making a claim described in 
                        clause (i) with respect to an article, 
                        the person making the claim must 
                        disclose to the Customs Service whether 
                        that person has prepared, or has 
                        knowledge that another person has 
                        prepared, a NAFTA Certificate of Origin 
                        for the article. If after such 30-day 
                        period the person making the claim 
                        either--
                                  (I) prepares a NAFTA 
                                Certificate of Origin for the 
                                article; or
                                  (II) learns of the existence 
                                of such a Certificate for the 
                                article;
                        that person, within 30 days after the 
                        occurrence described in subclause (I) 
                        or (II), must disclose the occurrence 
                        to the Customs Service.
                          (iii) Action on claim.--If the 
                        Customs Service determines that a NAFTA 
                        Certificate of Origin has been prepared 
                        with respect to an article for which a 
                        claim described in clause (i) is made, 
                        the Customs Service may make such 
                        adjustments regarding the previous 
                        customs treatment of the article as may 
                        be warranted under the claim.
          (3) Exports under the canadian agreement.--Any person 
        who exports, or who knowingly causes to be exported, 
        any merchandise to Canada during such time as the 
        United States-Canada Free-Trade Agreement is in force 
        with respect to, and the United States applies that 
        Agreement to, Canada shall make, keep, and render for 
        examination and inspection such records (including 
        certifications of origin or copies thereof) which 
        pertain to the exportations.
  (c) Period of Time.--The records required by subsections (a) 
and (b) shall be kept for such periods of time as the Secretary 
shall prescribe; except that--
          (1) no period of time for the retention of the 
        records required unde