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115th Congress   }                                 {     Rept. 115-722
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                 {            Part 1

======================================================================



 
      SECURING THE INTERNATIONAL MAIL AGAINST OPIOIDS ACT OF 2018

                                _______
                                

                  June 8, 2018.--Ordered to be printed

                                _______
                                

Mr. Brady of Texas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5788]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 5788) to provide for the processing by U.S. Customs 
and Border Protection of certain international mail shipments 
and to require the provision of advance electronic information 
on international mail shipments of mail, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
II. SUMMARY AND BACKGROUND............................................7
          A. Purpose and Summary.................................     7
          B. Background and Need for Legislation.................     7
          C. Legislative History.................................     8
III.EXPLANATION OF THE BILL...........................................8

III.VOTES OF THE COMMITTEE...........................................14

IV. BUDGET EFFECTS OF THE BILL.......................................14
          A. Committee Estimate of Budgetary Effects.............    14
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................    14
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................    15
 V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.......22
          A. Committee Oversight Findings and Recommendations....    22
          B. Statement of General Performance Goals and 
              Objectives.........................................    22
          C. Information Relating to Unfunded Mandates...........    22
          D. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................    22
          E. Duplication of Federal Programs.....................    22
          F. Disclosure of Directed Rule Makings.................    22
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED............23
          A. Text of Existing Law Amended or Repealed by the 
              Bill, as Reported..................................
          B. Changes in Existing Law Proposed by the Bill, as 
              Reported...........................................    23


    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 ``Securing the 
International Mail Against Opioids Act of 2018''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Customs fees.
Sec. 3. Mandatory advance electronic information for postal shipments.
Sec. 4. International postal agreements.
Sec. 5. Cost recoupment.
Sec. 6. Development of technology to detect illicit narcotics.
Sec. 7. Effective date; regulations.

SEC. 2. CUSTOMS FEES.

  (a) In General.--Section 13031(b)(9) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)) is amended by 
adding at the end the following:
          ``(D)(i) With respect to the processing of items that are 
        sent to the United States through the international postal 
        network by `Inbound Express Mail service' or `Inbound EMS' (as 
        that service is described in the mail classification schedule 
        referred to in section 3631 of title 39, United States Code), 
        the following payments are required:
                  ``(I) $1 per Inbound EMS item.
                  ``(II) If an Inbound EMS item is formally entered, 
                the fee provided for under subsection (a)(9), if 
                applicable.
          ``(ii) Notwithstanding section 451 of the Tariff Act of 1930 
        (19 U.S.C. 1451), the payments required by clause (i), as 
        allocated pursuant to clause (iii)(I), shall be the only 
        payments required for reimbursement of U.S. Customs and Border 
        Protection for customs services provided in connection with the 
        processing of an Inbound EMS item.
          ``(iii)(I) The payments required by clause (i) shall be 
        allocated as follows:
                  ``(aa) 50 percent of the amount of the payments shall 
                be paid on a quarterly basis by the United States 
                Postal Service to the Commissioner of U.S. Customs and 
                Border Protection in accordance with regulations 
                prescribed by the Secretary of the Treasury to 
                reimburse U.S. Customs and Border Protection for 
                customs services provided in connection with the 
                processing of Inbound EMS items.
                  ``(bb) 50 percent of the amount of the payments shall 
                be retained by the Postal Service to reimburse the 
                Postal Service for services provided in connection with 
                the customs processing of Inbound EMS items.
          ``(II) Payments received by U.S. Customs and Border 
        Protection under subclause (I)(aa) shall, in accordance with 
        section 524 of the Tariff Act of 1930 (19 U.S.C. 1524), be 
        deposited in the Customs User Fee Account and used to directly 
        reimburse each appropriation for the amount paid out of that 
        appropriation for the costs incurred in providing services to 
        international mail facilities. Amounts deposited in accordance 
        with the preceding sentence shall be available until expended 
        for the provision of such services.
          ``(III) Payments retained by the Postal Service under 
        subclause (I)(bb) shall be used to directly reimburse the 
        Postal Service for the costs incurred in providing services in 
        connection with the customs processing of Inbound EMS items.
          ``(iv) Beginning in fiscal year 2021, the Secretary, in 
        consultation with the Postmaster General, may adjust, not more 
        frequently than once each fiscal year, the amount described in 
        clause (i)(I) to an amount commensurate with the costs of 
        services provided in connection with the customs processing of 
        Inbound EMS items, consistent with the obligations of the 
        United States under international agreements.''.
  (b) Conforming Amendments.--Section 13031(a) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)) is 
amended--
          (1) in paragraph (6), by inserting ``(other than an item 
        subject to a fee under subsection (b)(9)(D))'' after ``customs 
        officer''; and
          (2) in paragraph (10)--
                  (A) in subparagraph (C), in the matter preceding 
                clause (i), by inserting ``(other than Inbound EMS 
                items described in subsection (b)(9)(D))'' after 
                ``release''; and
                  (B) in the flush at the end, by inserting ``or of 
                Inbound EMS items described in subsection (b)(9)(D),'' 
                after ``(C),''.
  (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2020.

SEC. 3. MANDATORY ADVANCE ELECTRONIC INFORMATION FOR POSTAL SHIPMENTS.

  (a) Mandatory Advance Electronic Information.--
          (1) In general.--Section 343(a)(3)(K) of the Trade Act of 
        2002 (Public Law 107-210; 19 U.S.C. 2071 note) is amended to 
        read as follows:
                  ``(K)(i) The Secretary, with the concurrence of the 
                Secretary of State, shall prescribe regulations 
                requiring the United States Postal Service to transmit 
                the information described in paragraphs (1) and (2) to 
                the Commissioner of U.S. Customs and Border Protection 
                for international mail shipments by the Postal Service 
                (including shipments to the Postal Service from foreign 
                postal operators that are transported by private 
                carrier) consistent with the requirements of this 
                subparagraph.
                  ``(ii) In prescribing regulations under clause (i), 
                the Secretary shall impose requirements for the 
                transmission to the Commissioner of information 
                described in paragraphs (1) and (2) for mail shipments 
                described in clause (i) that are comparable to the 
                requirements for the transmission of such information 
                imposed on similar non-mail shipments of cargo, taking 
                into account the parameters set forth in subparagraphs 
                (A) through (J).
                  ``(iii) The regulations prescribed under clause (i) 
                shall require the transmission of the information 
                described in paragraphs (1) and (2) with respect to a 
                shipment as soon as practicable in relation to the 
                transportation of the shipment, consistent with 
                subparagraph (H).
                  ``(iv) Regulations prescribed under clause (i) shall 
                allow for the requirements for the transmission to the 
                Commissioner of information described in paragraphs (1) 
                and (2) for mail shipments described in clause (i) to 
                be implemented in phases, as appropriate, by--
                          ``(I) setting incremental targets for 
                        increasing the percentage of such shipments for 
                        which information is required to be transmitted 
                        to the Commissioner; and
                          ``(II) taking into consideration--
                                  ``(aa) the risk posed by such 
                                shipments;
                                  ``(bb) the volume of mail shipped to 
                                the United States by or through a 
                                particular country; and
                                  ``(cc) the capacities of foreign 
                                postal operators to provide that 
                                information to the Postal Service.
                  ``(v)(I) Notwithstanding clause (iv) and except as 
                provided in subclause (II), the Postal Service shall, 
                not later than December 31, 2018, arrange for the 
                transmission to the Commissioner of the information 
                described in paragraphs (1) and (2) for not less than 
                70 percent of the aggregate number of mail shipments 
                described in clause (i).
                  ``(II)(aa) The requirements of subclause (I) may be 
                waived for a period of not more than 180 days if, not 
                later than December 31, 2018--
                          ``(AA) the Secretary and the Postmaster 
                        General, with the concurrence of the Secretary 
                        of State, determine that meeting those 
                        requirements is not feasible because of the 
                        lack of capacity of foreign postal operators to 
                        provide the Postal Service with the information 
                        described in paragraphs (1) and (2);
                          ``(BB) the Secretary and the Postmaster 
                        General, with the concurrence of the Secretary 
                        of State, determine that meeting those 
                        requirements is not feasible because of 
                        extraordinary reasons other than lack of 
                        capacity of foreign postal operators that are 
                        outside the control of the Postal Service; or
                          ``(CC) the Secretary of State determines that 
                        such a waiver is in the national security 
                        interests of the United States.
                  ``(bb) A waiver under item (aa) may be renewed for 
                one additional period of not more than 180 days if a 
                determination described in item (aa) is made for that 
                period.
                  ``(III) If the requirements of subclause (I) are not 
                met, the Comptroller General of the United States shall 
                submit to the appropriate congressional committees, not 
                later than January 31, 2020, a report--
                          ``(aa) assessing the reasons for the failure 
                        to meet those requirements; and
                          ``(bb) identifying recommendations to improve 
                        the collection by the Postal Service of the 
                        information described in paragraphs (1) and 
                        (2).
                  ``(vi)(I) Notwithstanding clause (iv) and except as 
                provided in subclause (II), the Postal Service shall, 
                not later than December 31, 2022, arrange for the 
                transmission to the Commissioner of the information 
                described in paragraphs (1) and (2) for not less than 
                95 percent of the aggregate number of mail shipments 
                described in clause (i).
                  ``(II) The requirements of subclause (I) may be 
                waived for a period of not more than one year if, not 
                later than December 31, 2022--
                          ``(aa) the Secretary and the Postmaster 
                        General, with the concurrence of the Secretary 
                        of State, determine that meeting those 
                        requirements is not feasible because of--
                                  ``(AA) the lack of capacity of 
                                foreign postal operators to provide the 
                                Postal Service with the information 
                                described in paragraphs (1) and (2); or
                                  ``(BB) extraordinary reasons other 
                                than lack of capacity of foreign postal 
                                operators that are outside the control 
                                of the Postal Service; or
                          ``(bb) the Secretary of State determines that 
                        such a waiver is in the national security 
                        interests of the United States.
                  ``(vii) Not later than 15 days before making a 
                determination under clause (v) or (vi) that meeting the 
                requirements of that clause is not feasible, the 
                Secretary and the Postmaster General shall submit to 
                the appropriate congressional committees a notification 
                of the determination. The notification shall include--
                          ``(I) in the case of a determination under 
                        clause (v)(II)(aa)(AA) or (vi)(II)(aa)(AA)--
                                  ``(aa) a list of which foreign postal 
                                operators lack the capacity to provide 
                                the information described in paragraphs 
                                (1) and (2) to the Postal Service;
                                  ``(bb) a description of the efforts 
                                by the Postal Service made to obtain 
                                that information from those operators; 
                                and
                                  ``(cc) a plan for obtaining that 
                                information from those operators; and
                          ``(II) in the case of a determination under 
                        clause (v)(II)(aa)(BB) or (vi)(II)(aa)(BB)--
                                  ``(aa) a description of the 
                                extraordinary reasons outside the 
                                control of the Postal Service; and
                                  ``(bb) a plan for obtaining the 
                                transmission of information described 
                                in paragraphs (1) and (2) as required 
                                by clause (v) or (vi), as applicable.
                  ``(viii) The Secretary and the Postmaster General 
                may, in consultation with the Secretary of State, as 
                necessary, take all appropriate remedial measures 
                necessary to ensure compliance with regulations 
                prescribed under clause (i) and consistent with the 
                obligations of the United States under international 
                agreements, including refusal of shipments for which 
                the information described in paragraphs (1) and (2) is 
                not transmitted as required under this subparagraph.
                  ``(ix) Nothing in this subparagraph shall be 
                construed to limit the authority of the Secretary to 
                obtain information relating to international mail 
                shipments from private carriers or other appropriate 
                parties.
                  ``(x) In this subparagraph, the term `appropriate 
                congressional committees' means--
                          ``(I) the Committee on Finance and the 
                        Committee on Homeland Security and Governmental 
                        Affairs of the Senate; and
                          ``(II) the Committee on Ways and Means and 
                        the Committee on Oversight and Government 
                        Reform of the House of Representatives.''.
          (2) Joint strategic plan on mandatory advance information.--
        Not later than 60 days after the date of the enactment of this 
        Act, the Secretary of Homeland Security and the Postmaster 
        General shall develop and submit to the appropriate 
        congressional committees a joint strategic plan detailing 
        specific performance measures for achieving--
                  (A) the transmission of information as required by 
                section 343(a)(3)(K) of the Trade Act of 2002, as 
                amended by paragraph (1); and
                  (B) the presentation by the Postal Service to U.S. 
                Customs and Border Protection of all mail targeted by 
                U.S. Customs and Border Protection for inspection.
  (b) Capacity Building.--
          (1) In general.--Section 343(a) of the Trade Act of 2002 
        (Public Law 107-210; 19 U.S.C. 2071 note) is amended by adding 
        at the end the following:
          ``(5) Capacity building.--
                  ``(A) In general.--The Secretary, with the 
                concurrence of the Secretary of State, and in 
                coordination with the Postmaster General and the heads 
                of other Federal agencies, as appropriate, may provide 
                technical assistance, equipment, technology, and 
                training to enhance the capacity of foreign postal 
                operators--
                          ``(i) to gather and provide the information 
                        required by paragraph (3)(K); and
                          ``(ii) to otherwise gather and provide postal 
                        shipment information related to--
                                  ``(I) terrorism;
                                  ``(II) items the importation or 
                                introduction of which into the United 
                                States is prohibited or restricted, 
                                including controlled substances; and
                                  ``(III) such other concerns as the 
                                Secretary determines appropriate.
                  ``(B) Provision of equipment and technology.--With 
                respect to the provision of equipment and technology 
                under subparagraph (A), the Secretary may lease, loan, 
                provide, or otherwise assist in the deployment of such 
                equipment and technology under such terms and 
                conditions as the Secretary may prescribe, including 
                nonreimbursable loans or the transfer of ownership of 
                equipment and technology.''.
          (2) Joint strategic plan on capacity building.--Not later 
        than one year after the date of the enactment of this Act, the 
        Secretary of Homeland Security and the Postmaster General 
        shall, in consultation with the Secretary of State, jointly 
        develop and submit to the appropriate congressional committees 
        a joint strategic plan--
                  (A) detailing the extent to which U.S. Customs and 
                Border Protection and the United States Postal Service 
                are engaged in capacity building efforts under section 
                343(a)(5) of the Trade Act of 2002, as added by 
                paragraph (1);
                  (B) describing plans for future capacity building 
                efforts; and
                  (C) assessing how capacity building has increased the 
                ability of U.S. Customs and Border Protection and the 
                Postal Service to advance the goals of this Act and the 
                amendments made by this Act.
  (c) Report and Consultations by Secretary of Homeland Security and 
Postmaster General.--
          (1) Report.--Not later than 180 days after the date of the 
        enactment of this Act, and annually thereafter until 3 years 
        after the Postmaster General has met the requirement under 
        clause (vi) of subparagraph (K) of section 343(a)(3) of the 
        Trade Act of 2002, as amended by subsection (a)(1), the 
        Secretary of Homeland Security and the Postmaster General 
        shall, in consultation with the Secretary of State, jointly 
        submit to the appropriate congressional committees a report on 
        compliance with that subparagraph that includes the following:
                  (A) An assessment of the status of the regulations 
                required to be promulgated under that subparagraph.
                  (B) An update regarding new and existing agreements 
                reached with foreign postal operators for the 
                transmission of the information required by that 
                subparagraph.
                  (C) A summary of deliberations between the United 
                States Postal Service and foreign postal operators with 
                respect to issues relating to the transmission of that 
                information.
                  (D) A summary of the progress made in achieving the 
                transmission of that information for the percentage of 
                shipments required by that subparagraph.
                  (E) An assessment of the quality of that information 
                being received by foreign postal operators, as 
                determined by the Secretary of Homeland Security, and 
                actions taken to improve the quality of that 
                information.
                  (F) A summary of policies established by the 
                Universal Postal Union that may affect the ability of 
                the Postmaster General to obtain the transmission of 
                that information.
                  (G) A summary of the use of technology to detect 
                illicit synthetic opioids and other illegal substances 
                in international mail parcels and planned acquisitions 
                and advancements in such technology.
                  (H) Such other information as the Secretary of 
                Homeland Security and the Postmaster General consider 
                appropriate with respect to obtaining the transmission 
                of information required by that subparagraph.
          (2) Consultations.--Not later than 180 days after the date of 
        the enactment of this Act, and every 180 days thereafter until 
        the Postmaster General has met the requirement under clause 
        (vi) of section 343(a)(3)(K) of the Trade Act of 2002, as 
        amended by subsection (a)(1), to arrange for the transmission 
        of information with respect to not less than 95 percent of the 
        aggregate number of mail shipments described in clause (i) of 
        that section, the Secretary of Homeland Security and the 
        Postmaster General shall provide briefings to the appropriate 
        congressional committees on the progress made in achieving the 
        transmission of that information for that percentage of 
        shipments.
  (d) Government Accountability Office Report.--Not later than December 
31, 2020, the Comptroller General of the United States shall submit to 
the appropriate congressional committees a report--
          (1) assessing the progress of the United States Postal 
        Service in achieving the transmission of the information 
        required by subparagraph (K) of section 343(a)(3) of the Trade 
        Act of 2002, as amended by subsection (a)(1), for the 
        percentage of shipments required by that subparagraph;
          (2) assessing the quality of the information received from 
        foreign postal operators for targeting purposes;
          (3) assessing the specific percentage of targeted mail 
        presented by the Postal Service to U.S. Customs and Border 
        Protection for inspection;
          (4) describing the costs of collecting the information 
        required by such subparagraph (K) from foreign postal operators 
        and the costs of implementing the use of that information;
          (5) assessing the benefits of receiving that information with 
        respect to international mail shipments;
          (6) assessing the feasibility of assessing a customs fee 
        under section 13031(b)(9) of the Consolidated Omnibus Budget 
        Reconciliation Act of 1985, as amended by section 2, on 
        international mail shipments other than Inbound Express Mail 
        service in a manner consistent with the obligations of the 
        United States under international agreements; and
          (7) identifying recommendations, including recommendations 
        for legislation, to improve the compliance of the Postal 
        Service with such subparagraph (K), including an assessment of 
        whether the detection of illicit synthetic opioids in the 
        international mail would be improved by--
                  (A) requiring the Postal Service to serve as the 
                consignee for international mail shipments containing 
                goods; or
                  (B) designating a customs broker to act as an 
                importer of record for international mail shipments 
                containing goods.
  (e) Technical Correction.--Section 343 of the Trade Act of 2002 
(Public Law 107-210; 19 U.S.C. 2071 note) is amended in the section 
heading by striking ``advanced'' and inserting ``advance''.
  (f) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
          (1) the Committee on Finance and the Committee on Homeland 
        Security and Governmental Affairs of the Senate; and
          (2) the Committee on Ways and Means and the Committee on 
        Oversight and Government Reform of the House of 
        Representatives.

SEC. 4. INTERNATIONAL POSTAL AGREEMENTS.

  (a) Existing Agreements.--Any regulations prescribed under section 
343(a)(3)(K) of the Trade Act of 2002, as amended by section 3(a)(1), 
shall be consistent with the obligations of the United States under 
international agreements.
  (b) Future Agreements.--
          (1) Consultations.--Before entering into, on or after the 
        date of the enactment of this Act, any postal treaty, 
        convention, or other international agreement related to 
        international postal services, or any amendment to such an 
        agreement, that could restrict the ability of the United States 
        to secure the provision of advance electronic information by 
        foreign postal operators, the Secretary of State should consult 
        with the appropriate congressional committees (as defined in 
        section 3(f)).
          (2) Expedited negotiation of new agreement.--To the extent 
        that any new postal treaty, convention, or other international 
        agreement related to international postal services is necessary 
        to secure the provision of advance electronic information by 
        foreign postal operators as required by regulations prescribed 
        under section 343(a)(3)(K) of the Trade Act of 2002, as amended 
        by section 3(a)(1), the Secretary of State should expeditiously 
        conclude such an agreement.

SEC. 5. COST RECOUPMENT.

  (a) In General.--The United States Postal Service shall, to the 
extent practicable and otherwise recoverable by law, ensure that all 
costs associated with complying with this Act and amendments made by 
this Act are charged directly to foreign shippers or foreign postal 
operators.
  (b) Costs Not Considered Revenue.--The recovery of costs under 
subsection (a) shall not be deemed revenue for purposes of subchapter I 
and II of chapter 36 of title 39, United States Code, or regulations 
prescribed under that chapter.

SEC. 6. DEVELOPMENT OF TECHNOLOGY TO DETECT ILLICIT NARCOTICS.

  (a) In General.--The Postmaster General and the Commissioner of U.S. 
Customs and Border Protection, in coordination with the heads of other 
agencies as appropriate, shall collaborate to identify and develop 
technology for the detection of illicit fentanyl, other synthetic 
opioids, and other narcotics and psychoactive substances entering the 
United States by mail.
  (b) Outreach to Private Sector.--The Postmaster General and the 
Commissioner shall conduct outreach to private sector entities to 
gather information regarding the current state of technology to 
identify areas for innovation relating to the detection of illicit 
fentanyl, other synthetic opioids, and other narcotics and psychoactive 
substances entering the United States.

SEC. 7. EFFECTIVE DATE; REGULATIONS.

  (a) Effective Date.--This Act and the amendments made by this Act 
(other than the amendments made by section 2) shall take effect on the 
date of the enactment of this Act.
  (b) Regulations.--Not later than one year after the date of the 
enactment of this Act, such regulations as are necessary to carry out 
this Act and the amendments made by this Act shall be prescribed.

                       II. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    The Securing the International Mail Against Opioids Act of 
2018 prevents dangerous and illegal contraband such as 
synthetic opioids from entering the United States through the 
international mail. This legislation amends the Trade Act of 
2002 and mandates that the U.S. Postal Service (USPS) obtain 
advance electronic data (AED) on international mail shipments, 
allowing U.S. Customs and Border Protection (CBP) to target 
opioid shipments and other illegal imports and prevent their 
entry into the United States.

                 B. Background and Need for Legislation

    The Trade Act of 2002 directed the Secretary of the 
Treasury--now delegated to the Secretary of Homeland Security--
to promulgate regulations requiring private carriers to 
electronically transmit information to CBP prior to the arrival 
of cargo into the United States or its departure from the 
United States. The advance information required includes 
information that CBP uses to ensure cargo safety and security, 
such as the name and address of the shipper and recipient, as 
well as the package contents. Having this advance information 
enables CBP to target high-risk shipments for inspection and 
seizure. While the Trade Act required advance data for all 
shipments by private carriers, including express delivery 
carriers, it did not require advance data for international 
mail shipments through USPS. As a result, international mail 
shipments arrive in the United States with no information, 
making it difficult for CBP to target high-risk shipments, 
including those containing synthetic opioids. This lack of 
information has created a significant vulnerability that allows 
criminals to ship synthetic opioids into the United States with 
ease. This problem has given rise to the need for legislative 
solutions to improve the detection of synthetic opioids in the 
international mail.

                         C. Legislative History


Background

    H.R. 5788, the Securing the International Mail Against 
Opioids Act of 2018, which provides for the processing by CBP 
of certain international mail shipments and requires the 
provision of advance electronic information on international 
mail shipments of mail, was introduced on May 15, 2018 by 
Representative Mike Bishop (R-MI) and Trade Subcommittee 
Ranking Member Bill Pascrell, Jr. (D-NJ) and was referred to 
the Committee on Ways and Means and sequentially to the 
Committee on Oversight and Government Reform and the Committee 
on Homeland Security.

Committee action

    The Committee on Ways and Means marked up H.R. 5788 on May 
16, 2018, and ordered the bill, as amended, favorably reported 
(with a quorum being present).

                      III. EXPLANATION OF THE BILL


                         Section 1: Short Title


Present Law

    No provision.

Explanation of provision

    This Act may be cited as ``Securing the International Mail 
Against Opioids Act of 2018.''

Reason for change

    The Committee believes that the short title accurately 
reflects the policy actions included in the legislation.

Effective date

    The provision is effective on the date of the enactment of 
this Act.

                        Section 2: Customs Fees


Present Law

    No provision.

Explanation of Provision

    Section 2(a) amends section 13031(b)(9) of the Consolidated 
Omnibus Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)) to 
establish a new $1.00 fee on Inbound Express Mail Service (EMS) 
items, to be split between CBP and USPS, for the provision of 
customs processing of Inbound EMS items. Section 2(a) also 
authorizes the fee to be adjusted, beginning in fiscal year 
2021, to an amount commensurate with the costs of services 
provided.
    Section 2(b) makes conforming amendments within section 
13031(b)(9) of the Consolidated Omnibus Reconciliation Act of 
1985 (19 U.S.C. 58c(b)(9)) to account for the new fee 
established by Section 2(a).
    Section 2(c) provides an effective date of January 1, 2020, 
for the amendments made by this section.

Reason for Change

    The Committee believes that it is appropriate to establish 
a customs processing fee for Inbound EMS items to align these 
products with the $1.00 fee charged on imported letters, 
documents, shipments, and other merchandise arriving to the 
United States through an express consignment carrier. In 
addition, the $1.00 fee will allow CBP and USPS to recover 
costs associated with the customs processing of Inbound EMS 
items arriving through the international mail. The Committee 
understands that USPS must provide adequate notice of the new 
fee to foreign postal operators and believes that an effective 
date of January 1, 2020, provides ample time for USPS to notify 
the appropriate parties, consistent with its obligations.

Effective Date

    The provision is effective on January 1, 2020.

    Section 3: Mandatory Advance Electronic Information for Postal 
                               Shipments


Present Law

    Section 343(a) of the Trade Act of 2002 directs the 
Secretary of the Treasury to promulgate regulations requiring 
private carriers to electronically transmit information to CBP 
prior to the arrival of cargo into the United States or its 
departure from the United States. The information required 
includes ``information on cargo as the Secretary determines to 
be reasonably necessary to ensure cargo safety and security 
pursuant to those laws enforced by [CBP].'' Section 343(a) 
requires advance data for all private carriers, but it gives 
CBP, in consultation with the Postmaster General, the 
discretion to ``determine whether it is appropriate to impose 
the same or similar requirements on shipments by the United 
States Postal Service.'' This discretion has not been exercised 
in the implementing regulations.

Explanation of provision

    Section 3(a) amends section 343(a)(3)(K) of the Trade Act 
of 2002 to require USPS to transmit AED to CBP on merchandise 
arriving to the United States through the international mail 
and mandates that the agencies meet specific and detailed 
requirements regarding the transmission of AED--including that 
USPS transmit AED on at least 70 percent of international mail 
shipments by December 31, 2018, and on at least 95 percent by 
December 31, 2022. If these requirements are not met, the 
Government Accountability Office (GAO) is required to provide 
the appropriate congressional committees with a report 
assessing the reasons for the failure to meet these 
requirements and identifying recommendations to improve the 
collection of AED by USPS. Section 3(a) authorizes the 
Secretary of Homeland Security and the Postmaster General, with 
the concurrence of the Secretary of State, to waive these 
requirements for a limited period of time only (1) where the 
lack of capacity by foreign postal operators to provide AED to 
USPS causes it to miss the thresholds; (2) due to 
``extraordinary reasons'' outside of USPS's control; or (3) 
where the Secretary of State determines that such a waiver is 
in the national security interests of the United States. In 
exercising a waiver under this section, the Secretary and 
Postmaster General must provide at least 15 days advance notice 
to the appropriate committees regarding the determination and 
plans to obtain the transmission of AED required by the Act.
    Section 3(a) requires USPS to transmit AED to CBP as soon 
as practicable, in keeping with CBP's Air Cargo Advance 
Screening program and comparable to the requirements placed on 
private carriers. It also authorizes the Secretary and 
Postmaster General to take appropriate remedial measures 
necessary to ensure compliance with the AED requirements of 
this Act consistent with international obligations, up to and 
including refusal of shipments for which the information is not 
furnished as required.
    Section 3(a) further requires the Secretary and the 
Postmaster General to develop and submit to the appropriate 
congressional committees, not later than 60 days after 
enactment of the Act, a joint strategic plan detailing specific 
performance measures for achieving transmission of AED and for 
the percentage of targeted mail presented by USPS to CBP for 
inspection.
    Section 3(b) authorizes the Secretary, with the concurrence 
of the Secretary of State, and in coordination with the 
Postmaster General and the heads of other Federal agencies, as 
appropriate, to undertake capacity building to enhance the 
capacity of foreign postal operators to gather and provide AED 
to the United States. The Secretary and the Postmaster General, 
in consultation with the Secretary of State, are required to 
jointly develop and submit to the appropriate congressional 
committees a joint strategic plan detailing the extent to which 
the agencies are engaged in capacity building, describing 
future plans for capacity building, and assessing how capacity 
building increases the ability of CBP and USPS to obtain AED.
    Section 3(c) requires the Secretary and the Postmaster 
General, in consultation with the Secretary of State, to 
jointly submit to the appropriate congressional committees not 
later than 180 days after the date of the enactment of this Act 
and annually thereafter a report on compliance with this Act's 
requirements, including the status of regulations, progress 
made in achieving the transmission of AED, agreements reached 
with foreign postal operators for AED transmission, an 
assessment of AED quality and actions to improve it, and a 
summary of international postal policies that may affect the 
ability of USPS to obtain AED. This provision also requires the 
Secretary and the Postmaster General to provide briefings to 
the appropriate congressional committees every 180 days on the 
progress made in achieving the transmission of AED required by 
the Act.
    Section 3(d) requires the GAO to: (1) report on the 
agencies' progress in achieving the legislative mandates, 
including an assessment of the quality of AED transmitted to 
CBP and the ability of USPS to present targeted shipments to 
CBP for inspection; and (2) make recommendations to improve 
USPS's compliance with the new requirements, including whether 
requiring USPS to serve as a consignee for international mail 
shipments and to designate a customs broker to act as the 
importer of record would improve the detection of synthetic 
opioids in the international mail.
    Section 3(e) makes a technical correction to Section 343 of 
the Trade Act of 2002 in the section heading by striking 
``Advanced'' and inserting ``Advance.''
    Section 3(f) defines the term ``appropriate congressional 
committees'' as the Committee on Finance and the Committee on 
Homeland Security and Governmental Affairs of the Senate and 
the Committee on Ways and Means and the Committee on Oversight 
and Government Reform of the House of Representatives.

Reason for change

    The Committee believes that CBP and USPS must considerably 
improve the detection of synthetic opioids in the international 
mail and that requiring the transmission of AED--in keeping 
with what is required of private carriers--is essential to 
achieving this goal. The Committee is aware, however, that 
unlike private carriers, which operate closed, fully integrated 
networks in which they can establish the prices and policies 
they place on foreign shippers, USPS must rely on foreign 
postal operators to provide it with information. For this 
reason, the Committee believes it is appropriate to provide a 
limited phase-in period to allow USPS time to reach agreements 
with foreign postal operators for the provision of AED. In 
addition, the Committee believes it is appropriate to provide 
specific and limited waivers from the requirement for 
transmitting data on at least 70 percent of international mail 
shipments by December 31, 2018, and on at least 95 percent by 
December 31, 2022, given USPS's dependence on foreign postal 
operators. The Committee does not intend this waiver authority 
to be used for countries that have the ability to provide AED 
and simply refuse to do so for internal policy reasons. For 
example, the Committee does not intend the waiver to be 
available for China or member countries of the European Union. 
In addition, the Committee believes it is appropriate to 
require the agencies to provide advance notice that it intends 
to exercise a waiver so that the Committee can exercise its 
oversight functions and ensure that the requirements of this 
Act are met.
    The Committee believes it is important to empower the 
agencies to secure AED from foreign postal operators and to 
provide them with the tools to enforce this requirement. For 
this reason, the legislation authorizes the agencies to take 
appropriate remedial measures up to and including refusal of 
international mail shipments for which AED is required but not 
transmitted.
    The Committee believes that it is appropriate to include 
robust oversight mechanisms to ensure that the agencies are 
held accountable for the mandates required in this Act. The 
Committee also believes it is important for the GAO to provide 
a report on the agencies' progress in achieving the legislative 
mandates and make recommendations to improve USPS's compliance 
with the new requirements. The Committee is aware that some 
stakeholders believe additional measures required by the 
private sector should be imposed on USPS. The Committee 
believes it would be valuable for the GAO to analyze these 
measures, including requiring USPS to serve as a consignee for 
international mail shipments, to determine whether such a 
requirement would be feasible and whether it would improve the 
detection of synthetic opioids in the international mail. This 
analysis will assist the Committee in determining whether 
additional action is needed to effectively secure the 
international mail.

Effective date

    The provision is effective on the date of the enactment of 
this Act.

               Section 4: International Postal Agreements


Present Law

    No provision.

Explanation of provision

    Section 4(a) requires that any regulations prescribed under 
Section 343(a)(3)(K) of the Trade Act, as amended by Section 
3(a)(1), shall be consistent with the obligations of the United 
States under international agreements.
    Section 4(b) directs the Secretary of State to consult with 
the appropriate congressional committees before entering into 
any postal treaty, convention, or other international agreement 
related to international postal services that could restrict 
the ability of the United States to require and obtain AED from 
foreign postal operators. This provision also directs the 
Secretary of State to expeditiously conclude any international 
agreement related to international postal services that is 
necessary to secure the provision of AED as required by this 
Act.

Reason for change

    The Committee believes is it important that the United 
States uphold its obligations under international agreements, 
including those under the Universal Postal Union (UPU). 
However, the Committee is aware that the UPU has been grappling 
with the question of AED for years and that progress has been 
unacceptably slow. The Committee is concerned that continued 
delay in the implementation of AED requirements for 
international mail shipments is a significant security risk 
that must be addressed. The Committee believes that the State 
Department should seek to expeditiously conclude any 
international agreements related to international postal 
services that are necessary to advance the goals of this Act by 
improving the United States' ability to secure the provision of 
AED. The Committee also believes it is important for the 
Secretary of State to consult with the appropriate 
congressional committees on any agreement that could restrict 
the ability of the United States to require the transmission of 
AED.

Effective date

    The provision is effective on the date of the enactment of 
this Act.

                       Section 5: Cost Recoupment


Present Law

    No provision.

Explanation of provision

    Section 5(a) requires USPS, to the extent practicable and 
otherwise recoverable by law, to ensure that all costs 
associated with complying with this Act are charged directly to 
foreign shippers or foreign postal operators.
    Section 5(b) clarifies that any recovery of costs under 
this section shall not be considered revenue for purposes of 
subchapter I and II of chapter 36 of title 39, United States 
Code.

Reason for change

    The Committee recognizes that USPS may incur additional 
costs associated with complying with this Act beyond what it 
will recover through the new fee established under Section 2. 
The Committee believes it is appropriate for the Postal Service 
to use any and all existing authorities to recover remaining 
costs associated with complying with this Act from foreign 
shippers and foreign postal operators.

Effective date

    The provision is effective on the date of the enactment of 
this Act.

    Section 6: Development of Technology to Detect Illicit Narcotics


Present Law

    No provision.

Explanation of provision

    Section 6(a) directs the Commissioner of CBP and the 
Postmaster General, in coordination with the heads of other 
Federal agencies as appropriate, to collaborate to identify and 
develop technology that will improve the detection of synthetic 
opioids, as well as other narcotics and psychoactive 
substances, entering the United States by mail.
    Section 6(b) requires the Commissioner and Postmaster 
General to conduct outreach to private sector entities 
regarding existing technology and areas for innovation related 
to the detection of synthetic opioids, as well as other 
narcotics and psychoactive substances, entering the United 
States.

Reason for change

    The Committee believes that CBP and USPS need every tool 
available to detect and identify synthetic opioids and other 
harmful substances that may be contained in international mail 
shipments and pose a threat to the American people. The 
Committee supports and encourages the development of technology 
that will improve the detection of these substances and will 
reduce the risk for CBP and USPS employees who could come into 
direct contact with these substances.

Effective date

    The provision is effective on the date of the enactment of 
this Act.

                 Section 7: Effective Date; Regulations


Present Law

    No provision.

Explanation of provision

    Section 7(a) provides that the changes made by this Act, 
other than amendments made by Section 2 (relating to fees), 
shall take effect on the date of the enactment of this Act.
    Section 7(b) requires the agencies to promulgate 
regulations necessary to carry out this Act not later than one 
year after the date of enactment of this Act.

Reason for change

    Given the severity of the opioid crisis and the compelling 
need to address the vulnerabilities in the international mail 
system, the Committee believes it is appropriate to require the 
provisions of this Act--other than Section 2--to be effective 
immediately upon enactment. The Committee also believes that 
one year from the date of enactment of the Act is the 
appropriate amount of time for the agencies to develop and 
promulgate any regulations necessary to carry out this Act.

Effective date

    The provision is effective on the date of the 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. 5788, the Securing the International Mail 
Against Opioids Act, on May 15, 2018.
    The Chairman's amendment in the nature of a substitute was 
adopted by a voice vote (with a quorum being present).
    The bill, H.R. 5788, was ordered favorably reported as 
amended by voice vote (with a quorum being present).

                     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. 5788, as 
reported. The Committee agrees with the estimate prepared by 
the Congressional Budget Office (CBO), which is included below.

B. Statement Regarding New Budget Authority and Tax Expenditures 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, June 6, 2018.
Hon. Kevin Brady,
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 the opioid-related 
legislation ordered to be reported on May 16, 2018.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Tom Bradley.
            Sincerely,
                                             Mark P. Hadley
                                        (For Keith Hall, Director).
    Enclosure.

Opioid Legislation

    Summary: On May 16, 2018, the House Committee on Ways and 
Means ordered seven bills to be reported related to the 
nation's response to the opioid epidemic. Generally, the bills 
would:
           Expand Medicare coverage of treatment for 
        opioid use disorder;
           Give Medicare providers and health plans 
        additional tools to curtail inappropriate prescribing 
        and use of opioids;
           Require the completion of studies and 
        reports related to opioid use and misuse in Medicare; 
        and
           Require the United States Postal Service and 
        Customs and Border Protection (CBP) to reduce illegal 
        shipment of opioids across international borders.
    Because the bills are related, CBO is publishing a single 
comprehensive document that includes estimates for each piece 
of legislation.
    CBO estimates that enacting four of the bills would affect 
direct spending; therefore, pay-as-you-go procedures apply for 
those bills. None of the bills would affect revenues.
    CBO estimates that although enacting one bill of the seven 
included in this document (H.R. 5776) would increase net direct 
spending and on-budget deficits over the four consecutive 10-
year periods beginning in 2029, those effects would not exceed 
the threshold established by the Congress for long-term costs. 
CBO estimates that none of the remaining bills would increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    None of the bills contain intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA).
    Estimated cost to the Federal Government: The estimates in 
this document do not include the effects of interactions among 
the bills. If all seven bills were combined and enacted as one 
piece of legislation, the budgetary effects would be different 
from the sum of the estimates in this document, although CBO 
expects that those differences would be small. The effects of 
this legislation fall within functions 550 (health), 570 
(Medicare), and 750 (administration of justice).
    Basis of estimate: For this estimate, CBO assumes that all 
of the legislation will be enacted late in 2018 and that 
authorized and estimated amounts will be appropriated each 
year. Outlays for discretionary programs are estimated based on 
historical spending patterns for similar programs.

Uncertainty

    CBO aims to produce estimates that generally reflect the 
middle of a range of the most likely budgetary outcomes that 
would result if the legislation was enacted. Because data on 
the utilization of mental health and substance abuse treatment 
under Medicaid and Medicare is scarce, CBO cannot precisely 
predict how patients or providers would respond to some policy 
changes or what budgetary effects would result. In addition, 
several of the bills would give the Department of Health and 
Human Services (HHS) considerable latitude in designing and 
implementing policies. Budgetary effects could differ from 
those provided in CBO's analyses depending on those decisions.

Direct Spending

    Table 1 lists the four bills included in this estimate that 
would affect direct spending.
    H.R. 5676, the Stop Excessive Narcotics in our Retirement 
Communities Protection Act of 2018, would allow prescription 
drug plans to suspend payments to pharmacies while fraud 
investigations are pending. CBO expects that enacting the 
legislation would reduce payments by those plans to pharmacies 
and result in lower premiums for benefits under Medicare's Part 
D. CBO estimates that the reduction in premiums would lower 
federal spending for Part D by $9 million over the 2019-2028 
period.

                                                    TABLE 1. ESTIMATED CHANGES IN MANDATORY SPENDING
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               By fiscal year, in millions of dollars--
                                             -----------------------------------------------------------------------------------------------------------
                                               2018   2019   2020    2021    2022    2023    2024    2025    2026    2027    2028   2019-2023  2019-2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      INCREASES OR DECREASES (-) IN DIRECT SPENDING
 
H.R. 5676, Stop Excessive Narcotics in our
 Retirement Communities Protection Act of
 2018
    Budget Authority........................      0      0      -1      -1      -1      -1      -1      -1      -1      -1      -1        -4         -9
    Outlays.................................      0      0      -1      -1      -1      -1      -1      -1      -1      -1      -1        -4         -9
H.R. 5773, Preventing Addiction for
 Susceptible Senior Act of 2018a
    Budget Authority........................      0      0       0      -6      -7      -7      -7      -8      -9      -9      -1       -20        -64
    Outlays.................................      0      0       0      -6      -7      -7      -7      -8      -9      -9      -1       -20        -64
H.R. 5676, the Medicare and Opioid Safe
 Treatment Act of 2018a
    Budget Authority........................      0      8       0      20      20      25      30      30      35      35      40        73        243
    Outlays.................................      0      2       4      22      20      25      30      30      35      35      40        73        243
H.R. 5788, Securing the International Mail
 Against Opioids Act of 2018 a
    Budget Authority........................      0      0       *       *       *       *       *       *       *       *       *         *          *
    Outlays.................................      0      0       *       *       *       *       *       *       *       *       *         *          *
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual counts may not sum to totals because of rounding. * = between -$500,000 and $500,000
aThis bill also would affect spending subject to appropriation.

    H.R. 5773, the Preventing Addiction for Susceptible Seniors 
Act of 2018, would require Part D prescription drug plans to 
provide drug management programs for Medicare beneficiaries who 
are at risk for prescription drug abuse. (Under current law, 
Part D plans permitted but not required to establish such 
programs as of 2019.) Based on an analysis of the number of 
plans currently providing those programs, CBO estimates that 
enacting H.R. 5773 would lower federal spending by $64 million 
over the 2019-2028 period by reducing the number of 
prescriptions filled and Medicare's payments for controlled 
substances.
    Two provisions of H.R. 5773 would have no significant 
budgetary effect; they are described later in this document.
    H.R. 5776, the Medicare and Opioid Safe Treatment Act of 
2018, would appropriate $8 million in 2019, which would be 
available until expended, for Federally Qualified Health 
Centers and Rural Health Clinics to support training in the 
treatment of opioid use disorder. CBO expects that $8 million 
would be spent between 2019 and 2021.
    H.R. 5776 also would expand the availability of medication-
assisted treatment (MAT) for Medicare beneficiaries with opioid 
use disorder. The bill would allow treatment programs certified 
by the Substance Abuse and Mental Health Services 
Administration (SAMHSA) to become Medicare-participating 
providers.\1\ H.R. 5776 also would direct the Secretary of HHS 
to create a new schedule of bundled payments for MAT through 
certified programs and grant the Secretary considerable 
discretion for defining bundles and establishing payment rates.
---------------------------------------------------------------------------
    \1\MAT combines behavioral therapy and pharmaceutical treatment for 
substance use disorders. Under current law, methadone (an opioid used 
to treat and manage dependence on other drugs, such as heroin) can be 
dispensed only by SAMHSA-certified treatment programs, which do not 
participate in Medicare. Other drugs used in MAT, including 
buprenorphine and naltrexone, can be dispensed more widely.
---------------------------------------------------------------------------
    CBO projects that, beginning in 2021, about 3,000 Medicare 
beneficiaries who would not be treated for opioid abuse under 
current law would newly enroll each year in treatment offered 
by SAMHSA-certified programs and that the annual cost per 
participant would range from about $6,000 to about $10,000, 
depending largely on the medications dispensed and the period 
for which beneficiaries adhered to the protocol. CBO's 
projection of the number of beneficiaries who would receive 
treatment takes into consideration the number of beneficiaries 
estimated to have opioid-use disorder, the number already 
receiving some form of treatment, and the availability of 
providers to treat those who newly enroll in MAT. To develop a 
per capita treatment cost, CBO analyzed rates for MAT paid by 
other payers, as well as Medicare spending for health care 
services typically used by people receiving MAT. CBO estimates 
that the new MAT benefit would increase direct spending by $235 
million over the 2019-2028 period.
    CBO estimates that enacting H.R. 5776 would increase net 
Medicare spending by $243 million over the 2019-2028 period. 
(If enacted, H.R. 5776 would also affect spending subject to 
appropriation; CBO has not completed an estimate of that 
amount.)
    H.R. 5788, the Securing the International Mail Against 
Opioids Act of 2018, would establish a new fee for certain 
items mailed to the United States from overseas, beginning 
January 1, 2020. Initially, the fee for most such items would 
be one dollar, but the amount could be adjusted annually 
thereafter. Using information provided by CBP, CBO estimates 
that about $100 million in new fees would be collected over the 
2020-2028 period. The collections would be divided equally 
between CBP and the Postal Service and spent by those agencies 
on activities related to the processing of inbound mail. CBO 
estimates that the net effect on federal spending in each year 
would be insignificant. (If enacted, H.R. 5788 would also 
affect spending subject to appropriation; those effects are 
described below.)

Spending Subject to Appropriation

    For this document, CBO has grouped bills with spending that 
would be subject to appropriation into three general 
categories:
           Bills with provisions that would have no 
        budgetary effect;
           Bills with provisions for which CBO has 
        estimated an authorization of appropriations (see Table 
        2); and
           Bills with provisions that would affect 
        spending subject to appropriation for which CBO has not 
        yet completed an estimate.
    No Budgetary Effect. CBO estimates that three of the bills 
have provisions that would not significantly affect direct 
spending, revenues, or spending subject to appropriation.
    H.R. 5773, the Preventing Addiction for Susceptible Seniors 
Act of 2018, would require care professionals to submit prior 
authorization requests electronically, starting on January 1, 
2021, for drugs covered under Medicare Part D. Taking into 
account that prescribers already use electronic methods to 
submit such requests, CBO estimates acting that Section 3 of 
H.R. 5773 would not significantly affect direct spending for 
Part D.
    Section 5 of that bill would expand medication therapy 
management programs under Medicare Part D to include 
beneficiaries who are at risk for prescription drug abuse. 
Because relatively few beneficiaries would be affected by this 
provision, CBO estimates that its enactment would not 
significantly affect direct spending for Part D.
    Section 6 of that bill would require the Secretary of HHS 
on an annual basis to identify prescribers of opioids and 
furnish them with information about proper prescribing methods. 
Because HHS already has the capacity to meet those 
requirements, CBO estimates that enacting that provision would 
not impose additional administrative costs on the agency.
    H.R. 5775, the Providing Reliable Options for Patients and 
Educational Resources Act of 2018, would require prescription 
drug plans that provide coverage under Medicare Part D to 
furnish information to beneficiaries about the risks of opioid 
use and the availability of alternative treatments for pain. 
The bill also would require Medicare Advantage plans and 
prescription drug plans to provide information regarding safe 
disposal of controlled substances in home health risk 
assessments and medication therapy management programs, 
respectively. In CBO's estimation, neither proposal would have 
a budgetary effect because those activities would not impose 
significant administrative costs on plans or federal agencies.
    In addition, H.R. 5775 would restrict the use of certain 
pain-related questions on the Hospital Consumer Assessment of 
Healthcare Providers and Systems (HCAHPS) survey, which is 
administered by the Centers for Medicare & Medicaid Services 
(CMS). The survey is one measure used in CMS's Hospital Value-
Based Purchasing (VBP) Program, which adjusts payments to acute 
care hospitals on the basis of the quality of care they provide 
to Medicare beneficiaries. Because the VBP program is funded by 
reducing base payments to all hospitals, CBO estimates that 
changing the HCAHPS survey would not affect the total amount 
paid by Medicare.
    H.R. 5776, the Medicare and Opioid Safe Treatment Act of 
2018, in section 3, would require CMS, beginning on January 1, 
2020, to review and possibly modify payments made through 
Medicare's Hospital Outpatient Prospective Payment System for 
certain opioid and nonopioid pain management treatments and 
technologies. CMS could revise payments if the Secretary of HHS 
determined that there was a financial incentive to use opioids 
in place of nonopioid medications. The budget neutrality 
requirement under current law would apply to such revisions, 
and the rest of the payment rates within the system would be 
subject to offsetting adjustments. Because the changes would be 
made in a budget-neutral manner, CBO estimates that this 
provision would have no budgetary effect.
    Section 6 of H.R. 5776 would explicitly authorize the 
Center for Medicare and Medicaid Innovation (CMMI) to test 
approaches for expanding beneficiaries' awareness of 
psychological services and to help those beneficiaries curtail 
use of hospital-based mental or behavioral health services. 
Because CMMI already has that authority, CBO estimates that 
enacting the legislation would not affect federal spending.
    Estimated Authorizations. Table 2 shows CBO's estimates of 
the authorization of appropriations for provisions in four 
bills. For those estimates, CBO assumes that appropriated funds 
would be available to implement those provisions.
    H.R. 5723, the Expanding Oversight of Opioid Prescribing 
and Payment Act of 2018, would require the Medicare Payment 
Advisory Commission to report to the Congress on payments for 
pain treatment, incentives for prescribing opioids in inpatient 
and outpatient settings, and documented tracking of opioid use 
from Medicare claims data. CBO estimates that producing such a 
report would cost less than $500,000 over the 2019-2023 period.

          TABLE 2. ESTIMATED SPENDING SUBJECT TO APPROPRIATION FOR BILLS WITH ESTIMATED AUTHORIZATIONS
----------------------------------------------------------------------------------------------------------------
                                                                   By fiscal year, in millions of dollars--
                                                            ----------------------------------------------------
                                                              2018   2019   2020   2021   2022   2023  2019-2023
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
H.R. 5723, Expanding Oversight of Opioid Prescribing and
 Payment Act of 2018
    Estimated Authorization Level..........................      0      *      0      0      0      0         *
    Estimated Outlays......................................      0      *      0      0      0      0         *
H.R. 5773, Preventing Addiction for Susceptible Seniors Act
 of 2018a
    Estimated Authorization Level..........................      0      2      2      2      2      2         9
    Estimated Outlays......................................      0      2      2      2      2      2         9
H.R. 5776, Medicare and Opioid Safe Treatment Act of 2018a
    Estimated Authorization Level..........................      0      1      0      0      0      0         1
    Estimated Outlays......................................      0      1      0      0      0      0         1
H.R. 5788, Securing the International Mail Against Opioids
 Act of 2018a
    Estimated Authorization Level..........................      0    100      0      0      0      0       100
    Estimated Outlays......................................      0     40     40     20      0      0       100
----------------------------------------------------------------------------------------------------------------
Annual amounts may not sum to totals because of rounding.
* = between zero and $500,000
aThis bill also would affect mandatory spending.

    H.R. 5773, the Preventing Addiction for Susceptible Seniors 
Act of 2018, would require the Secretary of HHS to establish a 
secure Internet portal to allow HHS, Medicare Advantage plans, 
and Medicare Part D plans to exchange information about fraud, 
waste, and abuse among providers and suppliers no later than 
two years after enactment. H.R. 5773 also would require 
organizations with Medicare Advantage contracts to submit 
information on investigations related to providers suspected of 
prescribing large volumes of opioids through a process 
established by the Secretary no later than January 2021. Based 
on historical spending patterns for similar activities, CBO 
estimates that implementing H.R. 5773 would cost approximately 
$9 million over the 2019-2023 period.
    H.R. 5776, the Medicare and Opioid Safe Treatment Act of 
2018, would direct the Secretary of HHS to report to the 
Congress on the availability of supplemental benefits to pay 
for treatment or prevention of substance abuse among enrollees 
in Medicare Advantage plans. The Secretary also would report on 
coverage of and payment for pain treatment and substance use 
disorders under Medicare. CBO estimates that producing those 
reports would cost $1 million over five years.
    H.R. 788, the Securing the International Mail Against 
Opioids Act of 2018, would direct the Postal Service, CBP, and 
other federal agencies to collaborate to develop technology to 
detect opioids and other drugs that enter the United States in 
the mail. Using information provided by CBP, CBO estimates that 
it would cost roughly $100 million over the 2019-2021 period to 
deploy drug detection systems at international mail facilities.
    Other Authorizations. CBO has determined that provisions in 
two bills--H.R. 5774, Combating Opioid Abuse for Care in 
Hospitals Act of 2018; and H.R. 5776, the Medicare and Safe 
Opioid Treatment Act of 2018--would increase authorization 
levels, but has not completed estimates of amounts. Any 
spending that would result from those authorizations would be 
subject to future appropriation action.
    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. Four of the bills discussed in this document contain 
direct spending and are subject to pay-as-you-go procedures. 
Details about the amount of direct spending in those bills can 
be found in Table 1.
    Increase in long-term direct spending and deficits: CBO 
estimates that although enacting H.R. 5776, the Medicare and 
Opioid Safe Treatment Act of 2018, would increase net direct 
spending and on-budget deficits over the four consecutive 10-
year periods beginning in 2029, those effects would not exceed 
the threshold established by the Congress for long-term costs 
($2.5 billion for net direct spending and $5 billion for on-
budget deficits). CBO estimates that none of the remaining 
bills would increase net direct spending or on-budget deficits 
in any of the four consecutive 10-year periods beginning in 
2029.
    Mandates: None of the bills contains intergovernmental or 
private-sector mandates as defined in UMRA.
    Prevous CBO estimate: On June 6, 2018, CBO issued an 
estimate for 59 opioid-related bills ordered reported by the 
House Committee on Energy and Commerce on May 9 and May 17, 
2018. Several of those bills contain provisions that are 
identical or similar to those in the legislation ordered 
reported by the Committee on Ways and Means, and for those 
provisions, CBO's estimates are the same.
    In particular, several sections in H.R. 5773, the 
Preventing Addiction for Susceptible Seniors Act of 2018, 
contain provisions that are identical or similar to those in 
five bills listed in the other estimate:
           Section 2, which would require prescription 
        drug plans to implement drug management programs, is 
        identical to a provision in H.R. 5675.
           Section 3, regarding electronic prior 
        authorization for prescriptions under Medicare's Part 
        D, is similar to a provision in H.R. 4841.
           Section 4, which would mandate the creation 
        of a new Internet portal to allow various stakeholders 
        to exchange information, is identical to a provision in 
        H.R. 5715.
           Section 5, which would expand medication 
        therapy management, is the same as a provision in H.R. 
        5684.
           Section 6, regarding prescriber 
        notification, is identical to H.R. 5716.
    In addition, in this estimate, a provision related to 
Medicare beneficiary education in section 2 of H.R. 5775, the 
Providing Reliable Options for Patients and Educational 
Resources Act of 2018, is the same as a provision in H.R. 5686, 
the Medicare Clear Health Options in Care for Enrollees Act of 
2018, in CBO's estimate for the Committee on Energy and 
Commerce.
    Estimate prepared by: Federal Costs Medicare: Philippa 
Haven, Lori Housman, Jamease Kowalczyk, Lara Robillard, Sarah 
Sajewski, Colin Yee, and Rebecca Yip; U.S. Postal Service and 
Customs and Border Protection: Mark Grabowicz; Mandates: Andrew 
Laughlin; Fact Checking: Zachary Byrum and Kate Kelly.
    Estimate reviewed by: Tom Bradley, Chief, Health Systems 
and Medicare Cost Estimates Unit; Kim P. Cawley, Chief, Natural 
Resources Cost Estimates Unit; Susan Willie, Chief, Mandates 
Unit; Leo Lex, Deputy Assistant Director for Budget Analysis; 
Theresa A. 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, the Committee made findings and 
recommendations that are reflected in this report.

        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 does not authorize funding, so no statement of general 
performance goals and objectives is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate 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 clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, 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 (115th Congress), 
the following statement is made concerning directed rule 
makings: The Committee advises that the bill requires no 
directed rulemakings within the meaning of such section.

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


      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):

         Changes in Existing Law Made by the Bill, as Reported

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

SECTION 13031 OF THE 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 (subject to adjustment under 
subsection (l)) 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 (other than 
        an item subject to a fee under subsection (b)(9)(D)), 
        $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(other than Inbound EMS items 
                described in subsection (b)(9)(D)),
  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), or of Inbound EMS 
        items described in subsection (b)(9)(D), 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 (subject to adjustment under subsection 
(l)) 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 (subject to 
adjustment under subsection (l)) 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 (subject to adjustment under subsection 
        (l)) 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 (subject to adjustment under 
subsection (l)) 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) or (l).
  (ii) A surcharge of $3 (subject to adjustment under 
subsection (l)) 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 and subject 
to adjustment under subsection (l)), 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 (subject to adjustment under 
                subsection (l)); 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 (subject to adjustment under 
subsection (l)). 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.
  (D)(i) With respect to the processing of items that are sent 
to the United States through the international postal network 
by ``Inbound Express Mail service'' or ``Inbound EMS'' (as that 
service is described in the mail classification schedule 
referred to in section 3631 of title 39, United States Code), 
the following payments are required:
          (I) $1 per Inbound EMS item.
          (II) If an Inbound EMS item is formally entered, the 
        fee provided for under subsection (a)(9), if 
        applicable.
  (ii) Notwithstanding section 451 of the Tariff Act of 1930 
(19 U.S.C. 1451), the payments required by clause (i), as 
allocated pursuant to clause (iii)(I), shall be the only 
payments required for reimbursement of U.S. Customs and Border 
Protection for customs services provided in connection with the 
processing of an Inbound EMS item.
  (iii)(I) The payments required by clause (i) shall be 
allocated as follows:
          (aa) 50 percent of the amount of the payments shall 
        be paid on a quarterly basis by the United States 
        Postal Service to the Commissioner of U.S. Customs and 
        Border Protection in accordance with regulations 
        prescribed by the Secretary of the Treasury to 
        reimburse U.S. Customs and Border Protection for 
        customs services provided in connection with the 
        processing of Inbound EMS items.
          (bb) 50 percent of the amount of the payments shall 
        be retained by the Postal Service to reimburse the 
        Postal Service for services provided in connection with 
        the customs processing of Inbound EMS items.
  (II) Payments received by U.S. Customs and Border Protection 
under subclause (I)(aa) shall, in accordance with section 524 
of the Tariff Act of 1930 (19 U.S.C. 1524), be deposited in the 
Customs User Fee Account and used to directly reimburse each 
appropriation for the amount paid out of that appropriation for 
the costs incurred in providing services to international mail 
facilities. Amounts deposited in accordance with the preceding 
sentence shall be available until expended for the provision of 
such services.
  (III) Payments retained by the Postal Service under subclause 
(I)(bb) shall be used to directly reimburse the Postal Service 
for the costs incurred in providing services in connection with 
the customs processing of Inbound EMS items.
  (iv) Beginning in fiscal year 2021, the Secretary, in 
consultation with the Postmaster General, may adjust, not more 
frequently than once each fiscal year, the amount described in 
clause (i)(I) to an amount commensurate with the costs of 
services provided in connection with the customs processing of 
Inbound EMS items, consistent with the obligations of the 
United States under international agreements.
  (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)(A) Notwithstanding section 451 of the Tariff Act of 1930 
(19 U.S.C. 1451) or any other provision of law (other than 
subparagraph (B) and paragraph (2)), the customs services 
required to be provided to passengers upon arrival in the 
United States shall be adequately provided in connection with 
scheduled airline flights at customs serviced airports when 
needed and at no cost (other than the fees imposed under 
subsection (a)) to airlines and airline passengers.
  (B)(i) An appropriate officer of U.S. Customs and Border 
Protection may assign a sufficient number of employees of U.S. 
Customs and Border Protection (if available) to perform 
services described in clause (ii) for a charter air carrier (as 
defined in section 40102 of title 49, United States Code) for a 
charter flight arriving after normal operating hours at an 
airport that is an established port of entry serviced by U.S. 
Customs and Border Protection, notwithstanding that overtime 
funds for those services are not available, if the charter air 
carrier--
          (I) not later than 4 hours before the flight arrives, 
        specifically requests that such services be provided; 
        and
          (II) pays any overtime fees incurred in connection 
        with such services.
  (ii) Services described in this clause are customs services 
for passengers and their baggage or any other similar service 
that could lawfully be performed during regular hours of 
operation.
  (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 2016 through 2018not less than $153,736,000to 
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 July 21, 2027.
  (B)(i) Subject to clause (ii), Fees may not be charged under 
paragraphs (1) through (8) of subsection (a) after September 
30, 2027.
  (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.
  (l) Adjustment of Fees for Inflation.--
          (1) In general.--The Secretary of the Treasury shall 
        adjust the fees established under subsection (a), and 
        the limitations on such fees under paragraphs (2), (3), 
        (5), (6), (8), and (9) of subsection (b), on April 1, 
        2016, and at the beginning of each fiscal year 
        thereafter, to reflect the percentage (if any) of the 
        increase in the average of the Consumer Price Index for 
        the preceding 12-month period compared to the Consumer 
        Price Index for fiscal year 2014.
          (2) Special rules for calculation of adjustment.--In 
        adjusting under paragraph (1) the amount of the fees 
        established under subsection (a), and the limitations 
        on such fees under paragraphs (2), (3), (5), (6), (8), 
        and (9) of subsection (b), the Secretary--
                  (A) shall round the amount of any increase in 
                the Consumer Price Index to the nearest dollar; 
                and
                  (B) may ignore any such increase of less than 
                1 percent.
          (3) Consumer price index defined.--For purposes of 
        this subsection, the term ``Consumer Price Index'' 
        means the Consumer Price Index for All Urban Consumers 
        published by the Bureau of Labor Statistics of the 
        Department of Labor.
                              ----------                              


                           TRADE ACT OF 2002



           *       *       *       *       *       *       *
DIVISION A--TRADE ADJUSTMENT ASSISTANCE

           *       *       *       *       *       *       *


TITLE III--CUSTOMS REAUTHORIZATION

           *       *       *       *       *       *       *


Subtitle A--United States Customs Service

           *       *       *       *       *       *       *


CHAPTER 4--ANTITERRORISM PROVISIONS

           *       *       *       *       *       *       *


SEC. 343. MANDATORY [ADVANCED] ADVANCE 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 providingfor the transmission to the 
        Customs Service, through an electronicdata interchange 
        system, of information pertaining tocargo to be brought 
        into the United States or to be sent fromthe United 
        States, prior to the arrival or departure of thecargo.
                  (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 
        informationrequired by the regulations promulgated 
        pursuant to paragraph(1) under the parameters set forth 
        in paragraph (3) shall besuch information on cargo as 
        the Secretary determines to bereasonably necessary to 
        ensure cargo safety and security pursuantto those laws 
        enforced and administered by the CustomsService. The 
        Secretary shall provide to appropriate 
        Federaldepartments and agencies cargo information 
        obtained pursuantto 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, 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 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, 
                exceptfor the manifest information collected 
                pursuantto section 431 of the Tariff Act of 
                1930 and requiredto be available for public 
                disclosure pursuant tosection 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.]
                  (K)(i) The Secretary, with the concurrence of 
                the Secretary of State, shall prescribe 
                regulations requiring the United States Postal 
                Service to transmit the information described 
                in paragraphs (1) and (2) to the Commissioner 
                of U.S. Customs and Border Protection for 
                international mail shipments by the Postal 
                Service (including shipments to the Postal 
                Service from foreign postal operators that are 
                transported by private carrier) consistent with 
                the requirements of this subparagraph.
                  (ii) In prescribing regulations under clause 
                (i), the Secretary shall impose requirements 
                for the transmission to the Commissioner of 
                information described in paragraphs (1) and (2) 
                for mail shipments described in clause (i) that 
                are comparable to the requirements for the 
                transmission of such information imposed on 
                similar non-mail shipments of cargo, taking 
                into account the parameters set forth in 
                subparagraphs (A) through (J).
                  (iii) The regulations prescribed under clause 
                (i) shall require the transmission of the 
                information described in paragraphs (1) and (2) 
                with respect to a shipment as soon as 
                practicable in relation to the transportation 
                of the shipment, consistent with subparagraph 
                (H).
                  (iv) Regulations prescribed under clause (i) 
                shall allow for the requirements for the 
                transmission to the Commissioner of information 
                described in paragraphs (1) and (2) for mail 
                shipments described in clause (i) to be 
                implemented in phases, as appropriate, by--
                          (I) setting incremental targets for 
                        increasing the percentage of such 
                        shipments for which information is 
                        required to be transmitted to the 
                        Commissioner; and
                          (II) taking into consideration--
                                  (aa) the risk posed by such 
                                shipments;
                                  (bb) the volume of mail 
                                shipped to the United States by 
                                or through a particular 
                                country; and
                                  (cc) the capacities of 
                                foreign postal operators to 
                                provide that information to the 
                                Postal Service.
                  (v)(I) Notwithstanding clause (iv) and except 
                as provided in subclause (II), the Postal 
                Service shall, not later than December 31, 
                2018, arrange for the transmission to the 
                Commissioner of the information described in 
                paragraphs (1) and (2) for not less than 70 
                percent of the aggregate number of mail 
                shipments described in clause (i).
                  (II)(aa) The requirements of subclause (I) 
                may be waived for a period of not more than 180 
                days if, not later than December 31, 2018--
                          (AA) the Secretary and the Postmaster 
                        General, with the concurrence of the 
                        Secretary of State, determine that 
                        meeting those requirements is not 
                        feasible because of the lack of 
                        capacity of foreign postal operators to 
                        provide the Postal Service with the 
                        information described in paragraphs (1) 
                        and (2);
                          (BB) the Secretary and the Postmaster 
                        General, with the concurrence of the 
                        Secretary of State, determine that 
                        meeting those requirements is not 
                        feasible because of extraordinary 
                        reasons other than lack of capacity of 
                        foreign postal operators that are 
                        outside the control of the Postal 
                        Service; or
                          (CC) the Secretary of State 
                        determines that such a waiver is in the 
                        national security interests of the 
                        United States.
                  (bb) A waiver under item (aa) may be renewed 
                for one additional period of not more than 180 
                days if a determination described in item (aa) 
                is made for that period.
                  (III) If the requirements of subclause (I) 
                are not met, the Comptroller General of the 
                United States shall submit to the appropriate 
                congressional committees, not later than 
                January 31, 2020, a report--
                          (aa) assessing the reasons for the 
                        failure to meet those requirements; and
                          (bb) identifying recommendations to 
                        improve the collection by the Postal 
                        Service of the information described in 
                        paragraphs (1) and (2).
                  (vi)(I) Notwithstanding clause (iv) and 
                except as provided in subclause (II), the 
                Postal Service shall, not later than December 
                31, 2022, arrange for the transmission to the 
                Commissioner of the information described in 
                paragraphs (1) and (2) for not less than 95 
                percent of the aggregate number of mail 
                shipments described in clause (i).
                  (II) The requirements of subclause (I) may be 
                waived for a period of not more than one year 
                if, not later than December 31, 2022--
                          (aa) the Secretary and the Postmaster 
                        General, with the concurrence of the 
                        Secretary of State, determine that 
                        meeting those requirements is not 
                        feasible because of--
                                  (AA) the lack of capacity of 
                                foreign postal operators to 
                                provide the Postal Service with 
                                the information described in 
                                paragraphs (1) and (2); or
                                  (BB) extraordinary reasons 
                                other than lack of capacity of 
                                foreign postal operators that 
                                are outside the control of the 
                                Postal Service; or
                          (bb) the Secretary of State 
                        determines that such a waiver is in the 
                        national security interests of the 
                        United States.
                  (vii) Not later than 15 days before making a 
                determination under clause (v) or (vi) that 
                meeting the requirements of that clause is not 
                feasible, the Secretary and the Postmaster 
                General shall submit to the appropriate 
                congressional committees a notification of the 
                determination. The notification shall include--
                          (I) in the case of a determination 
                        under clause (v)(II)(aa)(AA) or 
                        (vi)(II)(aa)(AA)--
                                  (aa) a list of which foreign 
                                postal operators lack the 
                                capacity to provide the 
                                information described in 
                                paragraphs (1) and (2) to the 
                                Postal Service;
                                  (bb) a description of the 
                                efforts by the Postal Service 
                                made to obtain that information 
                                from those operators; and
                                  (cc) a plan for obtaining 
                                that information from those 
                                operators; and
                          (II) in the case of a determination 
                        under clause (v)(II)(aa)(BB) or 
                        (vi)(II)(aa)(BB)--
                                  (aa) a description of the 
                                extraordinary reasons outside 
                                the control of the Postal 
                                Service; and
                                  (bb) a plan for obtaining the 
                                transmission of information 
                                described in paragraphs (1) and 
                                (2) as required by clause (v) 
                                or (vi), as applicable.
                  (viii) The Secretary and the Postmaster 
                General may, in consultation with the Secretary 
                of State, as necessary, take all appropriate 
                remedial measures necessary to ensure 
                compliance with regulations prescribed under 
                clause (i) and consistent with the obligations 
                of the United States under international 
                agreements, including refusal of shipments for 
                which the information described in paragraphs 
                (1) and (2) is not transmitted as required 
                under this subparagraph.
                  (ix) Nothing in this subparagraph shall be 
                construed to limit the authority of the 
                Secretary to obtain information relating to 
                international mail shipments from private 
                carriers or other appropriate parties.
                  (x) In this subparagraph, the term 
                ``appropriate congressional committees'' 
                means--
                          (I) the Committee on Finance and the 
                        Committee on Homeland Security and 
                        Governmental Affairs of the Senate; and
                          (II) the Committee on Ways and Means 
                        and the Committee on Oversight and 
                        Government Reform of the House of 
                        Representatives.
                  (L) Not later than 15 days prior to 
                publication of a final rule pursuantto 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 proposedregulations after 
                        they have been transmittedto the 
                        Committees pursuant to this 
                        subparagraph, theSecretary shall 
                        transmit the amended regulations tosuch 
                        Committees no later than 5 days prior 
                        to thepublication 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 consultationwith the Secretary of the Treasury, 
        shall establish an electronicdata interchange system 
        through which the United States Customsand Border 
        Protection shall transmit to the Internal 
        RevenueService information pertaining to cargoes of any 
        taxablefuel (as defined in section 4083 of the Internal 
        Revenue Codeof 1986) that the United States Customs and 
        Border Protectionhas obtained electronically under its 
        regulations adopted inaccordance with paragraph (1). 
        For this purpose, not laterthan 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 UnitedStates 
        Customs and Border Protection through such 
        electronicdata interchange system.
          (5) Capacity building.--
                  (A) In general.--The Secretary, with the 
                concurrence of the Secretary of State, and in 
                coordination with the Postmaster General and 
                the heads of other Federal agencies, as 
                appropriate, may provide technical assistance, 
                equipment, technology, and training to enhance 
                the capacity of foreign postal operators--
                          (i) to gather and provide the 
                        information required by paragraph 
                        (3)(K); and
                          (ii) to otherwise gather and provide 
                        postal shipment information related 
                        to--
                                  (I) terrorism;
                                  (II) items the importation or 
                                introduction of which into the 
                                United States is prohibited or 
                                restricted, including 
                                controlled substances; and
                                  (III) such other concerns as 
                                the Secretary determines 
                                appropriate.
                  (B) Provision of equipment and technology.--
                With respect to the provision of equipment and 
                technology under subparagraph (A), the 
                Secretary may lease, loan, provide, or 
                otherwise assist in the deployment of such 
                equipment and technology under such terms and 
                conditions as the Secretary may prescribe, 
                including nonreimbursable loans or the transfer 
                of ownership of equipment and technology.
  (b) [omitted - amendatory]

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  (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.

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