Customs Trade Facilitation and Enforcement Act of 2012 - Establishes U.S. Customs and Border Protection (CBP), in the Department of Homeland Security (DHS), as the U.S. Customs and Border Protection Agency (CBPA), headed by the Commissioner of U.S. Customs and Border Protection. Transfers specified functions, assets, liabilities, and duties of the U.S. Customs Service formally to the CBPA.
Establishes an interagency Customs Review Board.
Requires the President to separate budget requests for CBPA commercial operations and for the enforcement of U.S. customs and trade laws by the U.S. Immigration and Customs Enforcement (ICE).
Amends the Customs Procedural Reform and Simplification Act of 1978 to authorize appropriations to ICE for FY2013-FY2015.
Directs the CBPA Commissioner and the Director of ICE to develop jointly and submit to Congress a Joint Strategic Plan for enforcing U.S. customs and trade laws and for facilitating U.S. international trade.
Requires the DHS Secretary to consult with specified congressional committees before negotiating and before entering Mutual Recognition Arrangements or similar agreements between the United States and and a foreign government providing for mutual recognition of supply chain security programs and customs revenue functions.
Directs the Secretary of the Treasury and the DHS Secretary to establish jointly a Commercial Customs Operations Advisory Committee.
Amends the Consolidated Omnibus Budget Reconciliation Act of 1985 to extend through FY2015 the requirement for deposit of customs user fees in the Customs Commercial and Homeland Security Automation Account. Increases the annual amount of such deposits. Specifies a certain amount of appropriations authorized through FY2015 to complete the development, establishment, and implementation of the Automated Commercial Environment computer system for the processing of entered or released merchandise and for other DHS purposes.
Amends the Tariff Act of 1930 to require the Secretary of the Treasury to ensure that each agency participating in the International Trade Data System (ITDS) uses it to collect and distribute data and documentation for clearing or licensing the importation or exportation of cargo, and does not use any other system for such purposes.
Requires the head of each federal agency that requires documentation for clearing or licensing the importation and exportation of cargo to develop the necessary information technology infrastructure to support the operation of the ITDS.
Directs the DHS Secretary to establish within the Office of International Trade (OIT) a Commercial Targeting Division containing individual National Targeting and Analysis Groups set up for each of several specified priority trade issues.
Amends the Trade Act of 2002 to repeal the prohibition against use by the Secretary of the Treasury of certain trade data for merchandise entry or commercial enforcement determinations.
Authorizes the DHS Secretary to establish within OIT Centers of Excellence and Expertise to facilitate legitimate trade through increasing specific industry knowledge and uniformity of cargo clearance procedures.
Requires the DHS Inspector General (IG) to report to Congress on CBPA oversight of revenue protection and enforcement measures.
Requires the DHS Secretary and the Secretary of the Treasury to report jointly to Congress on CBPA efforts to ensure the secure transportation of merchandise in bond through the United States and the collection of revenue owed upon the entry of such merchandise into the United States for consumption.
Directs the Comptroller General (GAO) to report to Congress on the effectiveness of CBPA trade enforcement activities.
Directs the CBPA Commissioner to establish priorities and performance standards to measure the development and levels of achievement of specified CBPA modernization, trade facilitation, and trade enforcement functions and programs.
Directs the CBPA Commissioner to establish educational seminars to improve the ability of CBPA personnel to classify and appraise articles imported into the United States in accordance with U.S. customs laws.
Directs the DHS Secretary to establish an importer of record program to assign and maintain importer of record numbers. Requires the CBPA to maintain a centralized database of importer of record numbers, including a history of numbers associated with each importer.
Directs the Secretary of the Treasury to prescribe minimum standards to require customs brokers to implement, and importers (including nonresident importers) to comply with, reasonable procedures for collecting information to identify U.S. and non-resident importers seeking to import merchandise into the United States.
Directs the CBPA Commissioner to report to Congress recommendations for: (1) determining the most effective way to require foreign nationals to provide customs brokers with accurate information, comparable to that required of U.S. nationals, on the identity of foreign nationals seeking to import merchandise into the United States; and (2) establishing a system for such brokers and agencies to review information maintained by relevant federal agencies to verify the identity of importers, including nonresident importers, seeking to import merchandise into the United States.
Requires the CBPA Commissioner to: (1) establish a new importer program that directs CBPA to adjust bond amounts for new importers based on the level of risk assessed by CBPA for protection of federal revenue, and (2) require a non-resident importer of record to designate a resident agent in the United States.
Establishes an interagency committee composed of representatives of each covered federal agency to set up a certified importer program meeting specified requirements.
Amends the Tariff Act of 1930 to authorize the Secretary of the Treasury, at the time merchandise is presented for examination, to give the owner of a copyright or a registered mark: (1) any information appearing on the merchandise or its retail packaging; (2) a sample, or digital image, of the merchandise and its retail packaging; or (3) any packing material accompanying a sample, if a sample is provided, that bears either a mark suspected of being a counterfeit mark of the registered mark, or a work suspected of infringing the copyright.
Preventing Recurring Trade Evasion and Circumvention Act or PROTECT Act - Directs the DHS Secretary to establish within the CBPA Office of International Trade a Trade Remedy Law Enforcement Division (including a National Targeting and Analysis Group) to prevent and counter evasion of antidumping or countervailing duty orders with respect to covered merchandise entered into the United States.
Directs the National Targeting and Analysis Group dedicated to preventing and countering evasion to establish targeted risk assessment methodologies and standards for: (1) evaluating the risk that cargo destined for the United States may constitute evading covered merchandise, and (2) issuing Trade Alerts to U.S. ports of entry directing further inspection of specific merchandise to ensure compliance with U.S. trade remedy laws. Requires the Group also to use information available from the Automated Targeting System, the Automated Entry System, the International Trade Data System, and the Treasury Enforcement Communications System to administer such methodologies and standards.
Requires the DHS Secretary, acting through the CBPA Commissioner, to exercise all authorities to collect information needed to determine whether merchandise is entered into the United States through evasion.
Amends the Tariff Act of 1930 to permit access to proprietary information submitted to the administering authority or the U.S. International Trade Commission (ITC) to a CBPA officer or employee who is conducting an investigation regarding negligence or gross negligence with respect to covered merchandise entered into the United States.
Directs the Secretary of the Treasury to negotiate and enter into bilateral agreements with customs authorities of foreign countries to prevent evasion of U.S. and foreign trade remedy laws.
Directs the CBPA Commissioner to employ sufficient personnel who have expertise in and responsibility for preventing and investigating the entry of covered merchandise into the United States through evasion.
Amends the Tariff Act of 1930 to eliminate the option of an importer to post a bond or security in lieu of a cash deposit for each entry of merchandise exported into the United States by a new exporter (shipper) and producer that is the subject of a review by the administering authority as to whether antidumping or countervailing duties shall be imposed on such merchandise.
Requires the weighted average dumping margin or individual countervailing duty rate determined for a new exporter (shipper) or producer of merchandise in a review by the administering authority as to whether antidumping or countervailing duties shall be imposed to be based solely on the bona fide U.S. sales made by the exporter or producer during the period of review.
Amends the Tariff Act of 1930 authorizes imposition of a monetary penalty on, or revocation or suspension of a license or permit of, any customs broker convicted of committing or conspiring to commit an act of terrorism.
Raises from $200 to $800 the general de minimus aggregate fair retail value in the country of shipment of duty-free articles imported by one person on one day.
Amends the Consolidated Omnibus Budget Reconciliation Act of 1985 to change from quarterly to monthly the periodic remittance of collected customs user fees to the Secretary of the Treasury. Subjects to an administrative penalty of double the amount of such fees for any failure to remit them. Prohibits any refund of collected fees from the Customs User Fee Account.
Allows drawback (refund of paid customs duties) in a specified amount only if: (1) the manufacturer or producer of articles has received the imported, duty-paid merchandise or substitute merchandise, directly or indirectly; and (2) the exporter or destroyer of articles has received the manufactured or produced article or substitute article, directly or indirectly.
Extends from 3 years to 5 years the period from the date of receipt by a manufacturer or producer of imported, duty-paid merchandise during which, for purposes of allowing a drawback of paid duties, the imported duty-paid merchandise and any other merchandise (whether imported or domestic) of the same kind and quality are used in the manufacture or production of articles.
Requires any person claiming drawback to maintain, as proof of exportation, the record of exportation entered in the automated export system of the U.S. government or, if the exporter is unable to use that system, records kept in the normal course of business similar to the information contained in such record of exportation.
Revises other specified drawback requirements.
Amends the Harmonized Tariff Schedule of the United States with respect to duties on warranty repairs or alterations of articles exported from and then returned to the United States. Allows commingling of fungible goods exported from the United States for such purposes. Allows use of an inventory management method to account for the origin, value, and classification of such goods. Declares that, if a person chooses to use an inventory management method with respect to fungible goods, that person shall use the same inventory management method for any other goods with respect to which the person claims fungibility.
Allows duty-free treatment for certain federal property returned to the United States.
Authorizes appropriations for FY2013 for the salaries and expenses of the ITC and of the Office of the United States Trade Representative (USTR). Authorizes appropriations to the ITC for necessary expenses for FY2014-FY2015.
Requires the President's annual report to Congress on the trade agreements program and the national trade policy agenda to address the operation of all USTR-led interagency programs during the preceding year and for the year in which the report is submitted as well as pertinent additional matters.
Directs the USTR to develop annual and quadrennial resource management and staffing plans.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6642 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 6642
To reauthorize customs trade facilitation and enforcement functions and
programs, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 7, 2012
Mr. Brady of Texas introduced the following bill; which was referred to
the Committee on Ways and Means, and in addition to the Committees on
Homeland Security and the Budget, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To reauthorize customs trade facilitation and enforcement functions and
programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Customs Trade
Facilitation and Enforcement Act of 2012''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--CUSTOMS FACILITATION
Subtitle A--Functions Other Than Investigative Functions
Sec. 101. Establishment of Agency; Commissioner.
Sec. 102. Officers and employees.
Sec. 103. Separate budget for U.S. Customs and Border Protection
Agency.
Sec. 104. Revolving fund.
Sec. 105. Advances in foreign countries.
Sec. 106. Advances for enforcement of customs provisions.
Sec. 107. Certification of reason for advance.
Sec. 108. Payments in foreign countries; claims for reimbursement.
Sec. 109. Customs administration.
Sec. 110. Designation of trade oversight personnel.
Sec. 111. Consultation on trade and customs revenue functions.
Sec. 112. Authorization of appropriations.
Subtitle B--Investigative Functions
Sec. 121. Separate budget for U.S. Immigration and Customs Enforcement.
Sec. 122. Authorization of appropriations.
Subtitle C--Joint Strategic Plan
Sec. 131. Joint Strategic Plan.
TITLE II--CUSTOMS FACILITATION, TRADE ENFORCEMENT, AND TRANSPARENCY
Subtitle A--Customs Facilitation and Transparency
Sec. 201. Consultations with respect to mutual recognition agreements.
Sec. 202. Commercial Customs Operations Advisory Committee.
Sec. 203. Automated Commercial Environment computer system.
Sec. 204. International Trade Data System.
Subtitle B--Trade Enforcement
Chapter 1--Commercial Risk Assessment Targeting
Sec. 211. Commercial Targeting Division and National Targeting and
Analysis Groups.
Sec. 212. Centers of Excellence and Expertise.
Sec. 213. Report on oversight of revenue protection and enforcement
measures.
Sec. 214. Report on security and revenue measures with respect to
merchandise transported in bond.
Sec. 215. Report on effectiveness of trade enforcement activities.
Sec. 216. Priorities and performance standards for Customs
modernization, trade facilitation, and
trade enforcement functions and programs.
Sec. 217. Educational seminars to improve efforts to classify and
appraise imported articles and to improve
trade enforcement efforts.
Chapter 2--Importer Requirements
Sec. 221. Importer of record program.
Sec. 222. Customs broker identification of importers.
Sec. 223. Establishment of ``new importer'' program.
Sec. 224. Requirements applicable to non-resident importers.
Sec. 225. Certified importer program.
Chapter 3--Import-Related Protection of Intellectual Property Rights
Sec. 231. Exchange of information related to trade enforcement.
TITLE III--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY
ORDERS
Sec. 301. Short title.
Sec. 302. Definitions.
Sec. 303. Application to Canada and Mexico.
Subtitle A--Actions Relating to Enforcement of Trade Remedy Laws
Sec. 311. Trade Remedy Law Enforcement Division.
Sec. 312. Collection of information on evasion of trade remedy laws.
Sec. 313. Access to information.
Sec. 314. Cooperation with foreign countries on preventing evasion of
trade remedy laws.
Sec. 315. Trade negotiating objectives.
Subtitle B--Other Matters
Sec. 321. Allocation and training of personnel.
Sec. 322. Annual report on prevention of evasion of antidumping and
countervailing duty orders.
Sec. 323. Addressing circumvention by new shippers.
TITLE IV--MISCELLANEOUS PROVISIONS
Sec. 401. Penalties for customs brokers.
Sec. 402. De minimis value and entry under regulations.
Sec. 403. Collection and remittance of certain Customs User Fees.
Sec. 404. Drawback and refunds.
Sec. 405. Amendments to chapter 98 of the Harmonized Tariff Schedule of
the United States.
TITLE V--OTHER TRADE AGENCIES
Sec. 501. United States International Trade Commission.
Sec. 502. Office of the United States Trade Representative.
SEC. 2. DEFINITIONS.
In this Act:
(1) Commercial customs operations advisory committee.--The
term ``Commercial Customs Operations Advisory Committee'' means
the Advisory Committee established pursuant to section 202 of
this Act or any successor committee.
(2) Commercial operations.--The term ``commercial
operations'', with respect to the U.S. Customs and Border
Protection Agency, includes--
(A) administering any customs revenue function
delegated by the Secretary of the Treasury to the
Secretary of Homeland Security pursuant to section 412
of the Homeland Security Act of 2002 (6 U.S.C. 212);
(B) facilitating legitimate international trade,
and enforcing the customs and trade laws of the United
States to the extent of the authority of the
Commissioner under such laws;
(C) coordinating all efforts of the Department of
Homeland Security to facilitate legitimate
international trade and to enforce the customs and
trade laws of the United States;
(D) coordinating, on behalf of the Department of
Homeland Security, efforts among executive branch
agencies to facilitate legitimate trade and to enforce
the customs and trade laws of the United States,
including--
(i) representing the Department of Homeland
Security in interagency fora addressing such
efforts; and
(ii) coordinating with the Director of U.S.
Immigration and Customs Enforcement to develop
and implement the Joint Strategic Plan;
(E) coordinating, on behalf of the United States,
efforts with foreign customs agencies to facilitate
legitimate international trade and to enforce the
customs and trade laws of the United States and of
foreign countries;
(F) collecting, assessing, and disseminating
information as appropriate and in accordance with law,
regarding cargo destined for the United States, to
ensure that such cargo complies with the customs and
trade laws of the United States and to facilitate the
legitimate international trade of such cargo;
(G) soliciting and considering on a regular basis
input from the private sector, including the Commercial
Customs Operations Advisory Committee, the Trade
Support Network, and other entities affected by the
efforts of the Federal Government to facilitate
legitimate international trade and to enforce the
customs and trade laws of the United States, with
respect to--
(i) the implementation of new or amended
customs and trade laws of the United States;
and
(ii) the development, implementation, or
revision of policies or regulations
administered by the U.S. Customs and Border
Protection Agency; and
(H) otherwise advising the Secretary of Homeland
Security with respect to the development of policies
associated with facilitating legitimate international
trade and enforcing the customs and trade laws of the
United States.
(3) Customs and trade laws of the united states.--The term
``customs and trade laws of the United States'' includes the
following:
(A) The Tariff Act of 1930.
(B) Section 249 of the Revised Statutes of the
United States (19 U.S.C. 3).
(C) Section 2 of the Act of March 4, 1923 (19
U.S.C. 6).
(D) Section 13031 of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c).
(E) Section 251 of the Revised Statutes of the
United States (19 U.S.C. 66).
(F) Section 1 of the Act of June 26, 1930 (19
U.S.C. 68).
(G) The Foreign Trade Zones Act (19 U.S.C. 81a et
seq.).
(H) Section 1 of the Act of March 2, 1911 (19
U.S.C. 198).
(I) The Trade Act of 1974.
(J) The Trade Agreements Act of 1979.
(K) The North American Free Trade Area
Implementation Act.
(L) The Uruguay Round Agreements Act.
(M) The Caribbean Basin Economic Recovery Act.
(N) The Andean Trade Preference Act.
(O) The African Growth and Opportunity Act.
(P) The Act of March 3, 1927 (44 Stat. 1381,
chapter 348; 19 U.S.C. 2071 et seq.).
(Q) The Customs Enforcement Act of 1986 (Public Law
99-570; 100 Stat. 3207-79).
(R) The Customs and Trade Act of 1990 (Public Law
101-382; 104 Stat. 629).
(S) The Customs Procedural Reform and
Simplification Act of 1978 (Public Law 95-410; 92 Stat.
888).
(T) The Trade Act of 2002 (Public Law 107-210; 116
Stat. 933).
(U) The Convention on Cultural Property
Implementation Act (19 U.S.C. 2601 et seq.).
(V) The Act of August 7, 1939 (53 Stat. 1263,
chapter 566; 19 U.S.C. 2077 et seq.).
(W) Any other provision of law vesting customs
revenue functions in the Secretary of the Treasury.
(X) Any other provision of law relating to customs
facilitation or trade enforcement that is administered
by the U.S. Customs and Border Protection Agency on
behalf of any Federal agency that is required to
participate in the International Trade Data System
established pursuant to section 411(d) of the Tariff
Act of 1930 (19 U.S.C. 1411(d)), as amended by section
204 of this Act.
(Y) Any other provision of customs or trade law
administered by the U.S. Customs and Border Protection
Agency.
(4) Customs revenue function.--The term ``customs revenue
function'' has the meaning given that term in section 415 of
the Homeland Security Act of 2002 (6 U.S.C. 215).
(5) Importer.--The term ``importer'' means one of the
parties qualifying as an importer of record under section
484(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C.
1484(a)(2)(B)).
(6) Nonresident importer.--The term ``nonresident
importer'' means an importer who is--
(A) an individual who is not a citizen of the
United States or an alien lawfully admitted for
permanent residence in the United States; or
(B) a partnership, corporation, or other commercial
entity that is not organized under the laws of a
jurisdiction within the customs territory of the United
States (as such term is defined in General Note 2 of
the Harmonized Tariff Schedule of the United States) or
in the Virgin Islands of the United States.
(7) Joint strategic plan.--The term ``Joint Strategic
Plan'' means the plan required by section 131 of this Act.
(8) Trade support network.--The term ``Trade Support
Network'' means representatives of the private sector that
provide input on the design and development of modernization
projects of the U.S. Customs and Border Protection Agency.
TITLE I--CUSTOMS FACILITATION
Subtitle A--Functions Other Than Investigative Functions
SEC. 101. ESTABLISHMENT OF AGENCY; COMMISSIONER.
(a) In General.--The first section of the Act of March 3, 1927 (44
Stat. 1381, chapter 348; 19 U.S.C. 2071), is amended to read as
follows:
``SEC. 1. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION AGENCY;
COMMISSIONER.
``(a) Establishment of U.S. Customs and Border Protection Agency.--
There is established in the Department of Homeland Security the U.S.
Customs and Border Protection Agency.
``(b) Establishment of Commissioner of U.S. Customs and Border
Protection.--The head of the U.S. Customs and Border Protection Agency
shall be a Commissioner of U.S. Customs and Border Protection (in this
Act referred to as the `Commissioner'), who shall--
``(1) be appointed by the President, by and with the advice
and consent of the Senate;
``(2) carry out the duties described in subsection (c); and
``(3) report directly to the Secretary of Homeland
Security.
``(c) Duties.--
``(1) In general.--The Commissioner shall--
``(A) carry out the duties and powers prescribed by
law or by the Secretary of Homeland Security;
``(B) direct the administration of the commercial
operations of the U.S. Customs and Border Protection
Agency and the enforcement of the customs and trade
laws of the United States; and
``(C) otherwise safeguard the economic and homeland
security interests of the United States at land borders
and ports of entry.
``(2) Definitions.--In this subsection, the terms
`commercial operations' and `customs and trade laws of the
United States' have the meanings given such terms in section 2
of the Customs Trade Facilitation and Enforcement Act of 2012.
``(d) Absence or Disability of Commissioner.--The Deputy
Commissioner of U.S. Customs and Border Protection, appointed pursuant
to section 2, shall act as Commissioner of U.S. Customs and Border
Protection during the absence or disability of the Commissioner of U.S.
Customs and Border Protection, or in the event that there is no
Commissioner of U.S. Customs and Border Protection.''.
(b) Administrative Continuity.--
(1) In general.--The Act of March 3, 1927 (44 Stat. 1381,
chapter 348; 19 U.S.C. 2073), is amended by striking section 3
and inserting the following:
``SEC. 3. TRANSFER OF FUNCTIONS, ASSETS, LIABILITIES, AND DUTIES.
``(a) In General.--Effective on the date of the enactment of the
Customs Trade Facilitation and Enforcement Act of 2012, the functions
and associated personnel, assets, and liabilities, identified under
section 411 of the Homeland Security Act of 2002 (6 U.S.C. 211) on the
day before such date of enactment, are transferred to the U.S. Customs
and Border Protection Agency.
``(b) Continuation in Office.--The individual serving as
Commissioner of Customs, in the Department of Homeland Security, on the
day before the date of the enactment of the Customs Trade Facilitation
and Enforcement Act of 2012 may serve as the Commissioner of the U.S.
Customs and Border Protection Agency until the earlier of--
``(1) the date on which such individual is no longer
eligible to serve as Commissioner of Customs; or
``(2) the date on which a person nominated by the President
to be the Commissioner of U.S. Customs and Border Protection is
confirmed by the Senate.''.
(2) Repeal.--Section 411 of the Homeland Security Act of
2002 (6 U.S.C. 211), and the item relating to that section in
the table of contents for that Act, are repealed.
(c) Reference.--On and after the effective date of this Act, any
reference in law or regulations to the ``Commissioner of Customs'' or
the ``Commissioner of the Customs Service'' shall be deemed to be a
reference to the Commissioner of U.S. Customs and Border Protection
established pursuant to section 1 of the Act of March 3, 1927, as
amended by subsection (a) of this section.
(d) Compensation.--Section 5314 of title 5, United States Code, is
amended by striking ``Commissioner of Customs, Department of Homeland
Security'' and inserting ``Commissioner of U.S. Customs and Border
Protection, Department of Homeland Security''.
SEC. 102. OFFICERS AND EMPLOYEES.
(a) Deputy Commissioner.--Section 2 of the Act of March 3, 1927 (44
Stat. 1381, chapter 348; 19 U.S.C. 2072), is amended by striking
subsection (a) and inserting the following:
``(a) Deputy Commissioner.--
``(1) In general.--There shall be in the U.S. Customs and
Border Protection Agency established by the first section, 1
Deputy Commissioner who shall be appointed by the President, by
and with the advice and consent of the Senate.
``(2) Qualifications.--A person appointed to be the Deputy
Commissioner of U.S. Customs and Border Protection shall have a
minimum of 10 years of professional experience in the operation
of the customs and trade laws of the United States.
``(3) Duties.--The duties of the Deputy Commissioner shall
include--
``(A) overseeing the commercial operations of the
U.S. Customs and Border Protection Agency, including
the operations of the Office of International Trade and
all other offices of the Agency whose duties primarily
relate to the commercial operations of the Agency;
``(B) resolving issues relating to the commercial
operations of the U.S. Customs and Border Protection
Agency, including liaising between offices primarily
charged with carrying out the commercial operations of
the Agency and any operational or port level office,
including the Office of Field Operations or any
successor office, in the administration of duties
relating to the commercial operations of the Agency;
``(C) overseeing the development and implementation
information technology, research, and communication
functions of the U.S. Border and Protection Agency that
affect the commercial operations of the Agency,
including modernization strategies, that support the
commercial operations of the Agency, including the
implementation of the Automated Commercial Environment
computer system authorized under section 13031(f)(5) of
the Consolidated Omnibus Budget and Reconciliation Act
of 1985 (19 U.S.C. 58c(f)(5));
``(D) overseeing the customs revenue functions of
the U.S. Customs and Border Protection Agency in
consultation, as appropriate, with the Deputy Assistant
Secretary for Tax, Trade, and Tariff Policy of the
Department of the Treasury or any successor position;
``(E) overseeing the administration of customs
revenue functions of the U.S. Customs and Border
Protection Agency; and
``(F) consulting with the Committee on Finance of
the Senate and the Committee on Ways and Means of the
House of Representatives on a regular and timely basis
regarding the administration of the commercial
operations of the U.S. Customs and Border Protection
Agency, including--
``(i) the status and substance of
international negotiations relating to the
customs and trade laws of the United States, or
of foreign countries, in which personnel of the
Agency are participating;
``(ii) the resource needs of the Agency in
relation to the commercial operations of the
Agency;
``(iii) any proposed changes to policy,
regulations, interpretations, or practices that
relate to commercial operations;
``(iv) any legislative proposals that the
Agency or the Department of Homeland Security
provides to other committees of the Senate or
the House of Representatives or individual
members of such committees that relate to the
commercial operations of the Agency; and
``(v) the implementation of new or amended
customs and trade laws of the United States.
``(4) Absence or disability of deputy commissioner.--The
Assistant Commissioner of the Office of International Trade
shall act as the Deputy Commissioner during the disability of
the Deputy Commissioner, or in the event that there is no
Deputy Commissioner.''.
(b) Trade Advocate.--Section 2 of the Act of March 3, 1927 (44
Stat. 1381, chapter 348; 19 U.S.C. 2072), as amended by subsection (a)
of this section, is further amended by striking subsection (b) and
inserting the following:
``(b) Trade Advocate.--
``(1) In general.--The Commissioner shall appoint within
the U.S. Customs and Border Protection Agency, a Trade
Advocate, who shall report directly to the Commissioner.
``(2) Qualifications.--A person appointed to be Trade
Advocate shall have not less than 5 years experience working in
international trade in the private sector.
``(3) Duties.--The Trade Advocate shall--
``(A) serve as the primary liaison between the U.S.
Customs and Border Protection Agency and the public
with respect to the Agency's administration of customs
facilitation and trade enforcement functions;
``(B) assist the Commissioner in resolving issues
relating to the commercial operations of the Agency by
effectively communicating the perspectives held by
interested parties in the private sector and other
private commercial interests;
``(C) consult with interested parties in the
private sector, the Commercial Customs Operations
Advisory Committee, and the Trade Support Network, for
their input with respect to the Agency's--
``(i) development and implementation of
rules, regulations, decisions, and notices
related to the customs and trade laws of the
United States administered by the Agency;
``(ii) development of the Joint Strategic
Plan required under section 131 of the Customs
Trade Facilitation and Enforcement Act of 2012;
``(iii) assessment of the effectiveness of
customs facilitation and trade enforcement
efforts; and
``(iv) trade modernization activities,
including the development and implementation of
the Automated Commercial Environment computer
system authorized under section 13031(f)(5) of
the Consolidated Omnibus Budget and
Reconciliation Act of 1985 (19 U.S.C.
58c(f)(5)) and support for the establishment of
the International Trade Data System under the
oversight of the Department of the Treasury
pursuant to section 411(d) of the Tariff Act of
1930 (19 U.S.C. 1411(d));
``(D) advise the Commissioner with respect to the
consultations described in subparagraph (C); and
``(E) otherwise consult with the public as directed
by the Commissioner or by law.''.
(c) Other Officers.--Section 2 of the Act of March 3, 1927 (44
Stat. 1381, chapter 348; 19 U.S.C. 2072), as amended by subsections (a)
and (b) of this section, is further amended by striking subsection (c)
and inserting the following:
``(c) Other Officers.--The Secretary of Homeland Security may
appoint such other officers as are necessary to manage the individual
offices within the U.S. Customs and Border Protection Agency. Any
appointment of personnel under this subsection shall be subject to the
provisions of the civil service laws, and the salaries of such
personnel shall be fixed in accordance with chapter 51 and subchapter
III of chapter 53 of title 5, United States Code.''.
(d) Office of International Trade.--Section 2(d) of the Act of
March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), is
amended--
(1) in paragraph (1), by striking ``United States Customs
and Border Protection'' and inserting ``U.S. Customs and Border
Protection Agency''; and
(2) in paragraph (2)--
(A) in the heading, by striking ``; elimination of
offices'';
(B) by striking subparagraph (A) and inserting the
following:
``(A) Office of field operations.--
``(i) Transfer.--
``(I) In general.--Not later than
90 days after the date of enactment of
the Customs Trade Enforcement and
Facilitation Act of 2012, the
Commissioner shall transfer to the
Office of International Trade
established pursuant to paragraph (1)
the assets, functions (other than
administrative functions), and
personnel described in subclause (II)
of the Office of Field Operations.
``(II) Personnel described.--The
personnel of the Office of Field
Operations referred to in subclause (I)
are the following:
``(aa) Personnel having the
statutory authority to classify
and appraise goods entering the
United States.
``(bb) Personnel having the
responsibility to act as
principal point of contact and
technical experts with respect
to goods entering the United
States, including
responsibilities relating to
collection and deposit of
duties, taxes, and fees.
``(cc) Such other personnel
as the Commissioner determines
to be necessary.
``(ii) Assistant commissioner in the office
of international trade.--The assets, functions,
and personnel transferred to the Office of
International Trade pursuant to clause (i)
shall be under the authority of the Assistant
Commissioner in the Office of International
Trade.
``(iii) Training.--Not later than 18 months
after the date of the enactment of the Customs
Trade Enforcement and Facilitation Act of 2012,
the Commissioner shall ensure that sufficient
training with respect to facilitating
legitimate international trade and enforcing
the customs and trade laws of the United States
has been provided to personnel transferred to
the Office of International Trade pursuant to
clause (i).
``(iv) Limitation on funds.--No funds
appropriated to the U.S. Customs and Border
Protection Agency may be used to transfer the
assets, functions, or personnel of the Office
of Field Operations to an office other than the
Office of International Trade.''.
(C) by striking subparagraph (B);
(D) by redesignating subparagraphs (C) through (F)
as subparagraphs (B) through (E), respectively;
(E) in subparagraph (B), as redesignated by
subparagraph (D) of this paragraph, by striking
``United States Customs and Border Protection'' and
inserting ``U.S. Customs and Border Protection
Agency''; and
(F) in subparagraph (E), as redesignated by
subparagraph (D) of this paragraph--
(i) by striking ``United States Customs and
Border Protection'' and inserting ``U.S.
Customs and Border Protection Agency''; and
(ii) by striking ``subparagraph (E)(ii)''
and inserting ``subparagraph (D)(ii)''.
(e) Definitions.--Section 2(f) of the Act of March 3, 1927 (44
Stat. 1381, chapter 348; 19 U.S.C. 2072) is amended to read as follows:
``(f) Definitions.--In this section--
``(1) the term `Commissioner' means the Commissioner of
U.S. Customs and Border Protection; and
``(2) the terms `Commercial Customs Operations Advisory
Committee', `commercial operations', `customs and trade laws of
the United States', and `Trade Support Network' have the
meaning given such terms in section 2 of the Customs Trade
Facilitation and Enforcement Act of 2012.''.
(f) Establishment of Interagency Customs Review Board.--The Act of
March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq.), is
amended by inserting after section 3 the following:
``SEC. 4. ESTABLISHMENT OF INTERAGENCY CUSTOMS REVIEW BOARD.
``(a) Establishment.--There is established an interagency Customs
Review Board.
``(b) Membership.--The interagency Customs Review Board shall be
comprised of the Commissioner, the Assistant Secretary for Policy in
the Department of Homeland Security, the Assistant Secretary for Tax
Policy in the Department of the Treasury, the Under Secretary for
International Trade in the Department of Commerce, and 1 Deputy United
States Trade Representative designated by the United States Trade
Representative to serve on the interagency Customs Review Board. The
interagency Customs Review Board shall be co-chaired by the
Commissioner and the Assistant Secretary for Tax Policy in the
Department of the Treasury.
``(c) Referral.--The Commissioner of U.S. Customs and Border
Protection shall notify and provide full documentation to the
interagency Customs Review Board not less than 30 days prior to
publically proposing any change to a regulation, interpretation, or
practice of the Agency relating to commercial operations of the Agency
that could reasonably be expected to affect compliance by the United
States Government with its international trade obligations.
``(d) Duties.--The interagency Customs Review Board shall--
``(1) review any proposed change to a regulation,
interpretation, or practice of the Agency referred to the
interagency Customs Review Board by the Commissioner under
subsection (c) to determine if the change conforms to the
international trade obligations of the United States; and
``(2) advise the Commissioner of U.S. Customs and Border
Protection, not later than 30 days after receiving notification
of a proposed change under paragraph (1), as to whether or not
and the extent to which the change conforms to the
international trade obligations of the United States and other
cross-border initiatives.
``(e) Definition.--In this section, the term `commercial
operations' has the meaning given the term in section 2 of the Customs
Trade Facilitation and Enforcement Act of 2012.''.
(g) Compensation.--Section 5315 of title 5, United States Code, is
amended by adding at the end the following:
``Deputy Commissioner of U.S. Customs and Border
Protection, Department of Homeland Security.''.
SEC. 103. SEPARATE BUDGET FOR U.S. CUSTOMS AND BORDER PROTECTION
AGENCY.
(a) In General.--The President shall include in each budget
transmitted to Congress under section 1105 of title 31, United States
Code, a separate budget request for the commercial operations of the
U.S. Customs and Border Protection Agency.
(b) Repeal.--Section 414 of the Homeland Security Act of 2002 (6
U.S.C. 214), and the item relating to that section in the table of
contents of that Act, are repealed.
SEC. 104. REVOLVING FUND.
The matter under the heading ``revolving fund, bureau of customs''
in the Treasury and Post Office Departments Appropriation Act, 1950 (63
Stat. 360, chapter 286; 19 U.S.C. 2074), is amended by striking
``Bureau of Customs'' and inserting ``U.S. Customs and Border
Protection Agency''.
SEC. 105. ADVANCES IN FOREIGN COUNTRIES.
The matter under the heading ``bureau of customs'' in title I of
the Treasury Department Appropriation Act 1940 (53 Stat. 660, chapter
115; 19 U.S.C. 2076), is amended in the last proviso by striking
``Bureau of Customs'' and inserting ``U.S. Customs and Border
Protection Agency or U.S. Immigration and Customs Enforcement''.
SEC. 106. ADVANCES FOR ENFORCEMENT OF CUSTOMS PROVISIONS.
Section 2 of the Act entitled ``An Act to provide for advances of
funds by special disbursing agents in connection with the enforcement
of Acts relating to narcotic drugs'', approved March 28, 1928 (19
U.S.C. 2077), is amended to read as follows:
``SEC. 2. ADVANCES FOR ENFORCEMENT OF CUSTOMS PROVISIONS.
``The Commissioner of U.S. Customs and Border Protection and the
Director of U.S. Immigration and Customs Enforcement, with the approval
of the Secretary of Homeland Security and the Secretary of the
Treasury, are each authorized to direct the advance of funds by the
Fiscal Service in the Department of the Treasury, in connection with
the enforcement of the customs and trade laws of the United States (as
defined in section 2 of the Customs Trade Facilitation and Enforcement
Act of 2012).''.
SEC. 107. CERTIFICATION OF REASON FOR ADVANCE.
Section 3 of the Act of March 28, 1928 (19 U.S.C. 2078), is amended
by striking ``Commissioner of Customs'' and inserting ``Commissioner of
U.S. Customs and Border Protection or the Director of U.S. Immigration
and Customs Enforcement''.
SEC. 108. PAYMENTS IN FOREIGN COUNTRIES; CLAIMS FOR REIMBURSEMENT.
Section 4 of the Act of August 7, 1939 (53 Stat. 1263, chapter 566;
19 U.S.C. 2079), is amended to read as follows:
``SEC. 4. PAYMENTS IN FOREIGN COUNTRIES; CLAIMS FOR REIMBURSEMENT.
``The provisions of this Act shall not affect payments made for the
U.S. Customs and Border Protection Agency or U.S. Immigration and
Customs Enforcement in foreign countries, or the right of any officer
or employee of such Agencies to claim reimbursement for personal funds
expended in connection with the enforcement of the customs and trade
laws of the United States (as defined in section 2 of the Customs Trade
Facilitation and Enforcement Act of 2012).''.
SEC. 109. CUSTOMS ADMINISTRATION.
Section 113 of the Customs and Trade Act of 1990 (19 U.S.C. 2082)
is amended to read as follows:
``SEC. 113. CUSTOMS ADMINISTRATION.
``(a) In General.--The Commissioner of U.S. Customs and Border
Protection and the Director of U.S. Immigration and Customs Enforcement
each shall--
``(1) develop and implement accounting systems that
accurately determine and report the allocation of the personnel
and other resources of the U.S. Customs and Border Protection
Agency and U.S. Immigration and Customs Enforcement among the
various operational functions of each Agency, including
merchandise processing and customs and trade law enforcement;
and
``(2) for fiscal year 2013 and each subsequent fiscal year,
develop and implement labor distribution surveys of major
workforce activities within the U.S. Customs and Border
Protection Agency and U.S. Immigration and Customs Enforcement
to determine the cost of the various operational functions of
each Agency and the extent to which the costs of one Agency are
covered by the other Agency.
``(b) Survey Reports.--The Commissioner of U.S. Customs and Border
Protection and the Director of U.S. Immigration and Customs Enforcement
shall each, not later than December 31, 2013, and December 31 of each
subsequent calendar year, submit to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives a report on the results of the surveys implemented
under paragraph (2) of subsection (a) for the preceding fiscal year.''.
SEC. 110. DESIGNATION OF TRADE OVERSIGHT PERSONNEL.
Subsection (c) of section 412 of the Homeland Security Act of 2002
(6 U.S.C. 212(c)) is amended to read as follows:
``(c) Designation of Trade Oversight Personnel.--Not later than 90
days after the date of the enactment of the Customs Trade Facilitation
and Enforcement Act of 2012, the Secretary of the Treasury shall
designate and dedicate not less than 5 full-time equivalent personnel
to work exclusively with the Deputy Assistant Secretary of the Treasury
for Tax, Trade, and Tariff Policy in the performance and oversight of
customs revenue functions.''.
SEC. 111. CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNCTIONS.
Section 401(c) of the Safety and Accountability for Every Port Act
(6 U.S.C. 115(c)) is amended--
(1) in paragraph (1), by striking ``on Department policies
and actions that have'' and inserting ``not later than 30 days
after proposing, and not later than 30 days before finalizing,
any Department policies, initiatives, or actions that will
have''; and
(2) in paragraph (2)(A), by striking ``not later than 30
days prior to the finalization of'' and inserting ``not later
than 60 days before proposing, and not later than 60 days
before finalizing,''.
SEC. 112. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 301 of the Customs Procedural Reform and
Simplification Act of 1978 (19 U.S.C. 2075) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``October 1, 1979'' and
inserting ``October 1, 2012''; and
(ii) by striking ``Department of the
Treasury for the United States Customs
Service'' and inserting ``Department of
Homeland Security for the U.S. Customs and
Border Protection Agency'';
(B) by striking paragraph (2) and inserting the
following:
``(2) Requirement for authorization.--The authorization of
the appropriations for the U.S. Customs and Border Protection
Agency for each fiscal year after fiscal year 2012 shall
specify the amount authorized for the fiscal year for the
salaries and expenses of the Agency in conducting commercial
operations.''; and
(C) by striking paragraph (3);
(2) by striking subsections (b), (c), and (d) and inserting
the following:
``(b) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
for the salaries and expenses of the U.S. Customs and Border
Protection Agency that are incurred in commercial operations--
``(A) not less than $1,800,000,000 for fiscal year
2013;
``(B) not less than $1,817,000,000 for fiscal year
2014; and
``(C) not less than $1,830,000,000 for fiscal year
2015.
``(2) Customs user fee account.--The monies authorized to
be appropriated pursuant to paragraph (1) for any fiscal year,
except for such sums as may be necessary for the salaries and
expenses of the U.S. Customs and Border Protection Agency that
are incurred in connection with the processing of merchandise
that is exempt from the fees imposed pursuant to section
13031(a) (9) and (10) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(a) (9) and (10)),
shall be appropriated from the Customs User Fee Account.
``(c) Mandatory 10-Day Deferment.--No part of the funds
appropriated under subsection (a) for any fiscal year may be used to
provide less time for the collection of estimated duties than the 10-
day deferment procedure in effect on January 1, 1981.
``(d) Overtime Pay Limitations; Waiver.--No part of the funds
appropriated pursuant to subsection (a) for any fiscal year may be used
for administrative expenses to pay any customs officer overtime pay in
an amount exceeding $35,000 unless the Secretary of Homeland Security
determines on an individual basis that payment of overtime pay to such
officer in an amount exceeding $35,000 is necessary for national
security purposes, to prevent excessive costs, or to meet emergency
requirements of the Agency.'';
(3) in subsection (e)--
(A) by striking ``October 1, 1982'' and inserting
``October 1, 2012'';
(B) by striking ``Department of the Treasury for
salaries of the United States Customs Service'' and
inserting ``Department of Homeland Security for
salaries of the U.S. Customs and Border Protection
Agency''; and
(C) by striking ``to reflect'' and all that follows
and inserting ``to reflect any adjustment in rates of
basic pay made in accordance with subchapter I of
chapter 53 of title 5, United States Code.'';
(4) by striking subsections (f) and (g) and inserting the
following:
``(f) Use of Savings Resulting From Administrative
Consolidations.--If savings in salaries and expenses result from the
consolidation of administrative functions within the U.S. Customs and
Border Protection Agency, the Commissioner of U.S. Customs and Border
Protection shall apply the savings, to the extent the savings are not
needed to meet emergency requirements of the Agency, to strengthening
the commercial operations of the Agency by increasing the number of
personnel dedicated to administering such commercial operations.
``(g) Allocation of Resources; Report to Congressional
Committees.--The Commissioner of U.S. Customs and Border Protection
shall notify the Committee on Finance of the Senate and the Committee
on Ways and Means of the House of Representatives at least 180 days
prior to taking any action that would--
``(1) result in any significant reduction in force of
employees of the U.S. Customs and Border Protection Agency
other than by means of attrition;
``(2) result in any significant reduction in hours of
operation or services rendered at any office of the U.S.
Customs and Border Protection Agency or any United States port
of entry;
``(3) eliminate or relocate any office of the U.S. Customs
and Border Protection Agency;
``(4) eliminate any United States port of entry; or
``(5) significantly reduce the number of employees assigned
to any office or any function of the U.S. Customs and Border
Protection Agency.''; and
(5) by adding at the end the following:
``(i) Definition.--In this section, the term `commercial
operations' has the meaning given such term in section 2 of the Customs
Trade Facilitation and Enforcement Act of 2012.''.
(b) Resource Optimization Model.--Subsection (h) of section 301 of
the Customs Procedural Reform and Simplification Act of 1978 is amended
by striking ``Resource Allocation Model'' each place it appears in the
text and in the heading and inserting ``Resource Optimization Model''.
(c) Conforming Amendment.--Subsection (c) of section 5 of the Act
of February 13, 1911 (19 U.S.C. 267(c)), is amended to read as follows:
``(c) Limitations.--
``(1) Fiscal year cap.--The aggregate of overtime pay under
subsection (a) of this section (including commuting
compensation under subsection (a)(2)(B) of this section) and
premium pay under subsection (b) of this section that a customs
officer may be paid in any fiscal year may not exceed $35,000
unless the Secretary of Homeland Security determines on an
individual basis that payment of overtime pay to such officer
in an amount exceeding $35,000 is necessary for national
security purposes, to prevent excessive costs, or to meet
emergency requirements of the Agency.
``(2) Exclusivity of pay under this section.--A customs
officer who receives overtime pay under subsection (a) of this
section, or premium pay under subsection (b) of this section
for time worked, may not receive pay or other compensation for
that work under any other provision of law.''.
Subtitle B--Investigative Functions
SEC. 121. SEPARATE BUDGET FOR U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT.
The President shall include in each budget transmitted to Congress
under section 1105 of title 31, United States Code, a separate budget
request of U.S. Immigration and Customs Enforcement for the enforcement
of the customs and trade laws of the United States.
SEC. 122. AUTHORIZATION OF APPROPRIATIONS.
Title III of the Customs Procedural Reform and Simplification Act
of 1978 (19 U.S.C. 2075) is amended by inserting after section 301 the
following:
``SEC. 302. AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN CUSTOMS
ENFORCEMENT ACTIVITIES.
``(a) In General.--
``(1) Fiscal years beginning on or after october 1, 2012.--
For the fiscal year beginning October 1, 2012, and each fiscal
year thereafter, there are authorized to be appropriated to the
U.S. Immigration and Customs Enforcement of the Department of
Homeland Security for the enforcement of the customs and trade
laws of the United States only such sums as may be authorized
by law.
``(2) Specification of amounts.--The authorization of the
appropriations for the U.S. Immigration and Customs Enforcement
for each fiscal year after fiscal year 2012 shall specify the
amount authorized for the fiscal year for the salaries and
expenses of U.S. Immigration and Customs Enforcement for the
enforcement of the customs and trade laws of the United States.
``(b) Authorization of Appropriations.--There are authorized to be
appropriated for the salaries and expenses of the U.S. Immigration and
Customs Enforcement that are incurred in enforcement of the customs and
trade laws of the United States--
``(1) not less than $86,000,000 for fiscal year 2013;
``(2) not less than $88,150,000 for fiscal year 2014; and
``(3) not less than $90,200,000 for fiscal year 2015.
``(c) Definition.--In this section, the term `customs and trade
laws of the United States' has the meaning given such term in section 2
of the Customs Trade Facilitation and Enforcement Act of 2012.''.
Subtitle C--Joint Strategic Plan
SEC. 131. JOINT STRATEGIC PLAN.
(a) In General.--Not later than June 30, 2013, and every 2 years
thereafter, the Commissioner of U.S. Customs and Border Protection and
the Director of U.S. Immigration and Customs Enforcement shall jointly
develop and submit to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives, a Joint
Strategic Plan.
(b) Contents.--The Joint Strategic Plan required under this section
shall be comprised of a comprehensive multi-year plan for enforcing the
customs and trade laws of the United States and for facilitating the
international trade of the United States, and shall include--
(1) a summary of actions taken to date to better enforce
the customs and trade laws of the United States and to better
facilitate the international trade of the United States,
including a description and analysis of specific performance
measures to evaluate the progress of the U.S. Customs and
Border Protection Agency and U.S. Immigration and Customs
Enforcement in meeting each such responsibility;
(2) a statement of objectives and plans for further
improving the enforcement of the customs and trade laws of the
United States and the facilitation of the international trade
of the United States;
(3) a specific identification of the priority trade issues
described in paragraph (3)(B)(ii) of section 2(d) of the Act of
March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)),
as added by section 211(a) of this Act;
(4) a description of efforts made to improve consultation
and coordination among Federal departments and agencies, and in
particular between the U.S. Customs and Border Protection
Agency and U.S. Immigration and Customs Enforcement, regarding
the enforcement of the customs and trade laws of the United
States and the facilitation of the international trade of the
United States;
(5) a description of the training that has occurred to date
within the U.S. Customs and Border Protection Agency and U.S.
Immigration and Customs Enforcement to improve such enforcement
and facilitation, including training under section 217 of this
Act;
(6) a specific identification of any domestic or
international best practices that may further improve such
enforcement and facilitation; and
(7) any legislative recommendations to further improve such
enforcement of the customs and trade laws of the United States
or facilitation.
(c) Consultations.--
(1) In general.--In developing the Joint Strategic Plan
required under this section, the Commissioner and the Director
shall consult with--
(A) appropriate officials from the relevant Federal
departments and agencies, including--
(i) the Department of the Treasury;
(ii) the Department of Agriculture;
(iii) the Department of Commerce;
(iv) the Department of Justice;
(v) the Department of the Interior;
(vi) the Department of Health and Human
Services;
(vii) the Food and Drug Administration;
(viii) the Consumer Product Safety
Commission; and
(ix) the Office of the United States Trade
Representative; and
(B) the Commercial Customs Operations Advisory
Committee (established in section 202 of this Act).
(2) Other consultations.--In developing the Joint Strategic
Plan required under this section, the Commissioner and the
Director shall seek to consult with--
(A) appropriate officials from relevant foreign law
enforcement agencies and international organizations,
including the World Customs Organization; and
(B) interested parties in the private sector.
TITLE II--CUSTOMS FACILITATION, TRADE ENFORCEMENT, AND TRANSPARENCY
Subtitle A--Customs Facilitation and Transparency
SEC. 201. CONSULTATIONS WITH RESPECT TO MUTUAL RECOGNITION AGREEMENTS.
The Secretary of Homeland Security, with respect to any proposed
Mutual Recognition Arrangement or similar agreement between the United
States and a foreign government providing for mutual recognition of
supply chain security programs and customs revenue functions, shall--
(1) consult, not later than 30 days before initiating
negotiations to enter into any such agreement, with the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives; and
(2) consult, not later than 30 days before entering into
any such agreement, with the Committee on Finance of the Senate
and the Committee on Ways and Means of the House of
Representatives.
SEC. 202. COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE.
(a) Establishment.--Not later than 60 days after the date of
enactment of this Act, the Secretary of the Treasury and the Secretary
of Homeland Security shall jointly establish a Commercial Customs
Operations Advisory Committee (in this section referred to as the
``Advisory Committee'').
(b) Membership.--
(1) In general.--The Advisory Committee shall be comprised
of--
(A) 20 individuals appointed under paragraph (2);
(B) the Assistant Secretary for Tax Policy of the
Department of the Treasury and the Assistant Secretary
of Policy and Planning of the Department of Homeland
Security, who shall jointly co-chair meetings of the
Advisory Committee; and
(C) the Commissioner of U.S. Customs and Border
Protection and the Director of U.S. Immigration and
Customs Enforcement, who shall serve as deputy co-
chairs of meetings of the Advisory Committee.
(2) Appointment.--
(A) In general.--The Secretary of the Treasury and
the Secretary of Homeland Security shall jointly
appoint 20 individuals from the private sector to the
Advisory Committee.
(B) Requirements.--In making appointments under
subparagraph (A), the Secretary of the Treasury and the
Secretary of Homeland Security shall appoint members--
(i) to ensure that the membership of the
Advisory Committee is representative of the
individuals and firms affected by the
commercial operations of the U.S. Customs and
Border Protection Agency; and
(ii) to ensure that a majority of the
individuals are not members of the same
political party.
(c) Duties.--The Advisory Committee established under subsection
(a) shall--
(1) advise the Secretary of the Treasury and the Secretary
of Homeland Security on matters involving the commercial
operations of the U.S. Customs and Border Protection Agency and
U.S. Immigration and Customs Enforcement, including advising
with respect to significant changes that are proposed with
respect to agency regulations, policies, or practices;
(2) provide recommendations to the Secretary of the
Treasury and the Secretary of Homeland Security on improvements
to the commercial operations of the U.S. Customs and Border
Protection Agency and U.S. Immigration and Customs Enforcement;
and
(3) perform such other functions relating to the commercial
operations of the U.S. Customs and Border Protection Agency and
U.S. Immigration and Customs Enforcement as prescribed by law
or as the Secretary of the Treasury and the Secretary of
Homeland Security jointly direct.
(d) Meetings.--The Advisory Committee shall meet at the call of the
Secretary of the Treasury and the Secretary of Homeland Security.
(e) Annual Report.--Not later than December 31 of each calendar
year, the Advisory Committee shall submit to the Committee on Finance
of the Senate and the Committee on Ways and Means of the House of
Representatives a report that--
(1) describes the activities of the Advisory Committee
during the preceding fiscal year; and
(2) sets forth any recommendations of the Advisory
Committee regarding the commercial operations of the U.S.
Customs and Border Protection Agency and U.S. Immigration and
Customs Enforcement.
(f) Termination.--Section 14(a)(2)(B) of the Federal Advisory
Committee Act (5 U.S.C. App.; relating to the termination of advisory
committees) shall not apply to the Advisory Committee.
(g) Conforming Amendment.--
(1) In general.--Effective on the date on which the
Advisory Committee is established under subsection (a), section
9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19
U.S.C. 2071 note) is repealed.
(2) Reference.--Any reference in law to the Advisory
Committee on Commercial Operations of the United States Customs
Service established under section 9503(c) of the Omnibus Budget
Reconciliation Act of 1987 (19 U.S.C. 2071 note) made on or
after the date on which the Advisory Committee is established
under subsection (a), shall be deemed a reference to the
Commercial Customs Operations Advisory Committee established
under subsection (a).
SEC. 203. AUTOMATED COMMERCIAL ENVIRONMENT COMPUTER SYSTEM.
(a) Funding.--Section 13031(f)(5) of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)(5)) is amended--
(1) in subparagraph (A)--
(A) by striking ``2003, 2004, and 2005'' and
inserting ``2013, 2014, and 2015''; and
(B) by striking ``$350,000,000'' and inserting
``$700,242,000''; and
(2) in subparagraph (B)--
(A) by striking ``2003 through 2005'' and inserting
``2013 through 2015'';
(B) by striking ``such amounts as are available in
that Account'' and inserting ``not less than
$138,794,000''; and
(C) by striking ``for the development'' and
inserting ``to complete the development''.
(b) Report.--Section 311(b)(3) of the Customs Border Security Act
of 2002 (19 U.S.C. 2075 note) is amended to read as follows:
``(3) Report.--
``(A) In general.--Not later than December 31,
2012, the Commissioner of U.S. Customs and Border
Protection shall submit to the Committee on
Appropriations and the Committee on Finance of the
Senate and the Committee on Appropriations and the
Committee on Ways and Means of the House of
Representatives a report specifying--
``(i) the plans of the U.S. Customs and
Border Protection Agency and deadlines for
incorporating all cargo release data elements
into the Automated Commercial Environment
computer system not later than September 30,
2015, to conform with the admissibility
criteria of agencies participating in the
International Trade Data System identified
pursuant to section 411(d)(4)(A)(iii) of the
Tariff Act of 1930;
``(ii) the Agency's remaining priorities
for incorporating entry summary data elements,
cargo manifest data elements, cargo financial
data elements, and export elements into the
Automated Commercial Environment computer
system; and
``(iii) the Agency's objectives, plans, and
deadlines for implementing the priorities
identified under clause (ii) not later than
September 30, 2015.
``(B) Update of reports.--Not later than December
31, 2014, and September 30, 2015, the Commissioner
shall submit to the Committee on Appropriations and the
Committee on Finance of the Senate and the Committee on
Appropriations and the Committee on Ways and Means of
the House of Representatives an updated report
addressing each of the matters referred to in
subparagraph (A).''.
(c) Government Accountability Office Report.--Not later than
December 31, 2015, the Comptroller General of the United States shall
submit to the Committee on Appropriations and the Committee on Finance
of the Senate and the Committee on Appropriations and the Committee on
Ways and Means of the House of Representatives a report--
(1) evaluating the cost and effectiveness of the efforts of
the U.S. Customs and Border Protection Agency to complete the
development, establishment, and implementation of the Automated
Commercial Environment computer system;
(2) assessing the extent to which any additional
functionality may be added into the Automated Commercial
Environment computer system at a reasonable cost; and
(3) assessing the potential cost savings to the United
States Government and importers and exporters and the potential
benefits to enforcement of the customs and trade laws of the
United States if the elements identified in clauses (i) and
(ii) of section 311(b)(3)(A) of the Customs Border Security Act
of 2002, as amended by subsection (b) of this section, are
implemented.
SEC. 204. INTERNATIONAL TRADE DATA SYSTEM.
Section 411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)) is
amended--
(1) in paragraph (1), by adding at the end the following:
``(F) Prohibition on other systems for cargo
clearance.--The Secretary shall ensure that each agency
that participates in the ITDS use the ITDS to collect
and distribute data and documentation for clearing or
licensing the importation or exportation of cargo,
including to authorize the release of cargo by the U.S.
Customs and Border Protection Agency, and does not use
any other system for such purposes.'';
(2) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively;
(3) by inserting after paragraph (3) the following:
``(4) Information technology infrastructure.--The head of
each Federal agency that requires documentation for clearing or
licensing the importation and exportation of cargo shall--
``(A) develop and maintain the necessary
information technology infrastructure to support the
operation of the ITDS;
``(B) not later than March 31, 2013, enter into a
memorandum of understanding, or take such other action
as is necessary, to provide for the information sharing
between the agency and the U.S. Customs and Border
Protection Agency necessary for the operation and
maintenance of the ITDS; and
``(C) not later than March 31, 2013, identify and
transmit to the Commissioner of U.S. Customs and Border
Protection the admissibility criteria and data elements
required by the agency to authorize the release of
cargo by the U.S. Customs and Border Protection Agency
for incorporation into the operational functionality of
the Automated Commercial Environment computer
system.'';
(4) in paragraph (5), as redesignated, by striking ``each
fiscal year'' and inserting ``each of the fiscal years 2010
through 2013''; and
(5) in paragraph (8), as redesignated, by striking
``section 9503(c) of the Omnibus Budget Reconciliation Act of
1987 (19 U.S.C. 2071 note)'' and inserting ``section 202 of the
Customs Trade Facilitation and Enforcement Act of 2012''.
Subtitle B--Trade Enforcement
CHAPTER 1--COMMERCIAL RISK ASSESSMENT TARGETING
SEC. 211. COMMERCIAL TARGETING DIVISION AND NATIONAL TARGETING AND
ANALYSIS GROUPS.
(a) In General.--Section 2(d) of the Act of March 3, 1927 (44 Stat.
1381, chapter 348; 19 U.S.C. 2072(d)), as amended by section 102(d) of
this Act, is further amended by adding at the end the following:
``(3) Commercial targeting division and national targeting
and analysis groups.--
``(A) Establishment of commercial targeting
division.--
``(i) In general.--The Secretary of
Homeland Security shall establish and maintain
within the Office of International Trade a
Commercial Targeting Division.
``(ii) Composition.--The Commercial
Targeting Division shall be composed of--
``(I) headquarters personnel led by
an Executive Director, who shall report
to the Assistant Commissioner of the
Office of International Trade; and
``(II) individual National
Targeting and Analysis Groups, each led
by a Director who shall report to the
Executive Director of the Commercial
Targeting Division.
``(iii) Duties.--The Commercial Targeting
Division shall be dedicated--
``(I) to the development and
conduct of commercial risk assessment
targeting with respect to cargo
destined for the United States in
accordance with subparagraph (C); and
``(II) to issuing Trade Alerts
described in subparagraph (D).
``(B) National targeting and analysis groups.--
``(i) In general.--A National Targeting and
Analysis Group referred to in subparagraph
(A)(ii)(II) shall, at a minimum, be established
for each priority trade issue described in
clause (ii).
``(ii) Priority trade issues.--
``(I) In general.--The priority
trade issues described in this clause
are the following:
``(aa) Agriculture
programs.
``(bb) Antidumping and
countervailing duties.
``(cc) Import safety.
``(dd) Intellectual
property rights.
``(ee) Penalties.
``(ff) Revenue.
``(gg) Textiles.
``(hh) Trade agreements.
``(II) Modification.--The
Commissioner is authorized to establish
new priority trade issues and
eliminate, consolidate, or otherwise
modify the priority trade issues
described in this paragraph if the
Commissioner--
``(aa) determines it
necessary and appropriate to do
so; and
``(bb) submits to the
Committee on Finance of the
Senate and the Committee on
Ways and Means of the House of
Representatives a summary of
the proposed changes to the
priority trade issues not later
than 60 days before such
changes are to take effect.
``(iii) Duties.--The duties of each
National Targeting and Analysis Group shall
include--
``(I) directing the trade
enforcement and compliance assessment
activities of the U.S. Customs and
Border Protection Agency that relate to
the Group's priority trade issue;
``(II) facilitating, promoting, and
coordinating cooperation and the
exchange of information between the
U.S. Customs and Border Protection
Agency, U.S. Immigration and Customs
Enforcement, and other relevant Federal
departments and agencies regarding the
Group's priority trade issue; and
``(III) serving as the primary
liaison between the U.S. Customs and
Border Protection Agency and the public
regarding United States Government
activities regarding the Group's
priority trade issue, including--
``(aa) providing for
receipt and transmission to the
appropriate U.S. Customs and
Border Protection Agency office
of allegations from interested
parties in the private sector
of violations of customs and
trade laws of the United States
of merchandise relating to the
priority trade issue;
``(bb) obtaining
information from the
appropriate U.S. Customs and
Border Protection Agency office
on the status of any activities
resulting from the submission
of any such allegation,
including any decision not to
pursue the allegation, and
providing any such information
to each interested party in the
private sector that submitted
the allegation every 90 days
after the allegation was
received by the U.S. Customs
and Border Protection Agency;
and
``(cc) notifying on a
timely basis each interested
party in the private sector
that submitted such allegation
of any civil or criminal
actions taken by the U.S.
Customs and Border Protection
Agency or other Federal
department or agency resulting
from the allegation.
``(C) Commercial risk assessment targeting.--In
carrying out its duties with respect to commercial risk
assessment targeting, the Commercial Targeting Division
shall--
``(i) establish targeted risk assessment
methodologies and standards--
``(I) for evaluating the risk that
cargo destined for the United States
may violate the customs and trade laws
of the United States, particularly
those laws applicable to merchandise
subject to the priority trade issues
described in subparagraph (B)(ii); and
``(II) for issuing, as appropriate,
Trade Alerts described in subparagraph
(D); and
``(ii) to the extent practicable and
otherwise authorized by law, use information
available from the Automated Commercial System,
the Automated Commercial Environment computer
system, the Automated Targeting System, the
Automated Export System, the International
Trade Data System, and the Treasury Enforcement
Communications System, and any successor
systems, to administer the methodologies and
standards established under clause (i).
``(D) Trade alerts.--
``(i) Issuance.--Based upon the application
of the targeted risk assessment methodologies
and standards established under subparagraph
(C), the Executive Director of the Commercial
Targeting Division and the Directors of the
National Targeting and Analysis Groups may
issue Trade Alerts to directors of United
States ports of entry directing further
inspection, or physical examination or testing,
of specific merchandise to ensure compliance
with all applicable customs and trade laws and
regulations administered by the U.S. Customs
and Border Protection Agency.
``(ii) Determinations not to implement
trade alerts.--The director of a United States
port of entry may determine not to conduct
further inspections, or physical examination or
testing, pursuant to a Trade Alert issued under
clause (i) if--
``(I) the director finds that such
a determination is justified by port
security interests; and
``(II) notifies the Assistant
Commissioner of the Office of Field
Operations of the U.S. Customs and
Border Protection Agency of the
determination and the reasons for the
determination not later than 48 hours
after making the determination.
``(iii) Summary of determinations not to
implement.--The Assistant Commissioner of the
Office of Field Operations of the U.S. Customs
and Border Protection Agency shall--
``(I) compile an annual public
summary of all determinations by
directors of United States ports of
entry under clause (ii) and the reasons
for those determinations; and
``(II) submit the summary to the
Committee on Finance of the Senate and
the Committee on Ways and Means of the
House of Representatives not later than
December 31 of each year.
``(iv) Inspection defined.--In this
subparagraph, the term `inspection' means the
comprehensive evaluation process used by the
U.S. Customs and Border Protection Agency,
other than physical examination or testing, to
permit the entry of merchandise into the United
States, or the clearance of merchandise for
transportation in bond through the United
States, for purposes of--
``(I) assessing duties;
``(II) identifying restricted or
prohibited items; and
``(III) ensuring compliance with
all applicable customs and trade laws
and regulations administered by the
Agency.''.
(b) Use of Trade Data for Commercial Enforcement Purposes.--Section
343(a) of the Trade Act of 2002 (19 U.S.C. 2071 note) is amended--
(1) in the first sentence of paragraph (2), by inserting
``and to carry out commercial risk assessment targeting (as
described in 2(d)(3)(C) of the Act of March 3, 1927 (44 Stat.
1381, chapter 348; 19 U.S.C. 2072(d)))'' after ``to ensure
cargo safety and security''; and
(2) in paragraph (3)--
(A) by striking subparagraph (F); and
(B) by redesignating subparagraphs (G) through (L)
as subparagraphs (F) through (K).
SEC. 212. CENTERS OF EXCELLENCE AND EXPERTISE.
Section 2(d) of the Act of March 3, 1927 (44 Stat. 1381, chapter
348; 19 U.S.C. 2072(d)), as amended by sections 102(d) and 211 of this
Act, is further amended by adding at the end the following:
``(4) Centers of excellence and expertise.--
``(A) Establishment.--The Secretary of Homeland
Security is authorized to establish and maintain within
the Office of International Trade Centers of Excellence
and Expertise.
``(B) Composition.--Each Center of Excellence and
Expertise shall be composed of headquarters and field
personnel of the U.S. Customs and Border Protection
Agency led by an Executive Director, who shall report
to the Assistant Commissioner of the Office of
International Trade.
``(C) Duties.--Each Center of Excellence and
Expertise shall be dedicated--
``(i) to facilitating legitimate trade
through increasing specific industry knowledge
and uniformity of cargo clearance procedures;
``(ii) to improving enforcement efforts of
priority trade issues described in paragraph
(3)(B)(ii) in specific industry sectors through
application of targeting information from the
Commercial Targeting Division established under
paragraph (3)(A) and from other means of
verifications;
``(iii) to developing and implementing
measurable benefits to the trade community;
``(iv) to fostering partnerships through
the expansion of trade programs such as
Importer Self Assessment program and other
trusted partner programs;
``(v) to developing applicable performance
measurements to meet internal efficiency and
effectiveness goals; and
``(vi) to increasing the accuracy and
completeness of international trade data and
facilitate a more efficient flow of information
between Federal departments and agencies.''.
SEC. 213. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND ENFORCEMENT
MEASURES.
(a) Contents of Report.--The Inspector General of the Department of
Homeland Security shall, at the times specified in subsection (b),
submit to the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives a report assessing the
following, with respect to the 2-fiscal-year period to which the report
applies:
(1) The effectiveness of the measures taken by the U.S.
Customs and Border Protection Agency with respect to revenue
protection, including--
(A) the collection of countervailing and
antidumping duties;
(B) the assessment and collection of commercial
fines and penalties; and
(C) the adequacy of the policies of the Agency with
respect to monitoring and tracking of merchandise
transported in bond and collecting duties, as
appropriate.
(2) The effectiveness of actions taken by the U.S. Customs
and Border Protection Agency to measure accountability and
performance with respect to revenue protection.
(3) The number and outcome of investigations instituted by
the U.S. Customs and Border Protection Agency with respect to
the underpayment of duties.
(4) The adequacy of training with respect to the collection
of duties provided for personnel of the U.S. Customs and Border
Protection Agency.
(b) Timing of Report.--The report under subsection (a) shall be
submitted not later than March 31, 2014, and not later than March 31 of
each second year thereafter, with respect to the 2-fiscal-year period
ending on September 30 of the preceding calendar year.
SEC. 214. REPORT ON SECURITY AND REVENUE MEASURES WITH RESPECT TO
MERCHANDISE TRANSPORTED IN BOND.
(a) In General.--Not later than December 31 of 2013, 2014, and 2015
the Secretary of Homeland Security and the Secretary of the Treasury
shall jointly submit to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives a report on
efforts undertaken by the U.S. Customs and Border Protection Agency to
ensure the secure transportation of merchandise in bond through the
United States and the collection of revenue owed upon the entry of such
merchandise into the United States for consumption.
(b) Contents.--The report required by subsection (a) shall include
information, for the fiscal year preceding the submission of the
report, on--
(1) the overall number of entries of merchandise for
transportation in bond through the United States;
(2) the ports at which merchandise arrives in the United
States for transportation in bond and at which records of the
arrival of such merchandise are generated;
(3) the average time taken to reconcile such records with
the records at the final destination of the merchandise in the
United States to demonstrate that the merchandise reaches its
final destination or is re-exported;
(4) the average time taken to transport merchandise in bond
from the port at which the merchandise arrives in the United
States to its final destination in the United States;
(5) the total amount of duties, taxes, and fees owed with
respect to shipments of merchandise transported in bond and the
total amount of such duties, taxes, and fees paid;
(6) the total number of notifications by carriers of
merchandise being transported in bond that the destination of
the merchandise has changed; and
(7) the number of entries that remain unreconciled.
SEC. 215. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT ACTIVITIES.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Comptroller General of the United States shall submit
to the Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives a report on the effectiveness of
trade enforcement activities of the U.S. Customs and Border Protection
Agency.
(b) Contents.--The report shall include--
(1) a description of the use of resources, results of
audits and verifications, targeting, organization, and training
of the U.S. Customs and Border Protection Agency; and
(2) a description of trade enforcement activities to
address undervaluation, transshipment, legitimacy of entities
making entry, protection of revenues, fraud prevention and
detection, and penalties, including intentional
misclassification, inadequate bonding, and other
misrepresentations.
SEC. 216. PRIORITIES AND PERFORMANCE STANDARDS FOR CUSTOMS
MODERNIZATION, TRADE FACILITATION, AND TRADE ENFORCEMENT
FUNCTIONS AND PROGRAMS.
(a) Priorities and Performance Standards.--
(1) In general.--The Commissioner of U.S. Customs and
Border Protection, in consultation with the Committee on Ways
and Means of the House of Representatives and the Committee on
Finance of the Senate, shall establish priorities and
performance standards to measure the development and levels of
achievement of the Customs modernization, trade facilitation,
and trade enforcement functions and programs described in
subsection (b).
(2) Minimum priorities and standards.--Such priorities and
performance standards shall, at a minimum, include priorities
and standards relating to efficiency, outcome, output, and
other types of applicable measures.
(b) Functions and Programs Described.--The functions and programs
referred to in subsection (a) are the following:
(1) The Automated Commercial Environment computer system
authorized under section 13031(f)(5) of the Consolidated
Omnibus Budget and Reconciliation Act of 1985 (19 U.S.C.
58c(f)(5)).
(2) Each of the priority trade issues described in
paragraph (3)(B)(ii) of section 2(d) of the Act of March 3,
1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), as added
by section 211(a) of this Act.
(3) The Centers of Excellence and Expertise described in
section 212(c) of this Act.
(4) Drawback for exported merchandise under section 313 of
the Tariff Act of 1930 (19 U.S.C. 1313), as amended by section
404 of this Act.
(5) Transactions relating to imported merchandise in bond.
(6) Collection of countervailing duties assessed under
subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C.
1671 et seq.) and antidumping duties assessed under subtitle B
of title VII of the Tariff Act of 1930 (19 U.S.C. 1673 et
seq.).
(7) The expedited clearance of cargo.
(8) The issuance of regulations and rulings.
(9) The issuance of Regulatory Audit Reports.
(c) Submission to Congress.--
(1) In general.--The Commissioner of U.S. Customs and
Border Protection shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate a description of the priorities and
performance standards referred to in subsection (a) not later
than 180 days after the date of enactment of this Act.
(2) Proposed changes.--The Commissioner of U.S. Customs and
Border Protection shall submit to the congressional committees
referred to in paragraph (1) a description of any changes to
the priorities and performance standards referred to in
subsection (a) not later than 30 days before such changes are
to take effect.
(d) Report.--Not later than December 31, 2013, and December 31 of
each year thereafter, the Commissioner of U.S. Customs and Border
Protection shall submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the Senate a report
on the implementation of this section for the previous fiscal year.
SEC. 217. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS TO CLASSIFY AND
APPRAISE IMPORTED ARTICLES AND TO IMPROVE TRADE
ENFORCEMENT EFFORTS.
(a) In General.--
(1) Establishment.--The Commissioner of U.S. Customs and
Border Protection and the Director of U.S. Immigration and
Customs Enforcement shall establish and carry out on a fiscal
year basis educational seminars to--
(A) improve the ability of U.S. Customs and Border
Protection Agency personnel to classify and appraise
articles imported into the United States in accordance
with the customs and trade laws of the United States;
and
(B) improve the trade enforcement efforts of U.S.
Customs and Border Protection Agency personnel and U.S.
Immigration and Customs Enforcement personnel.
(2) Location.--Each educational seminar under this section
shall be located at a United States port of entry or a Center
of Excellence and Expertise described in section 212(c) of this
Act.
(b) Content.--
(1) Classifying and appraising imported articles.--In
carrying out subsection (a)(1)(A), the Commissioner, the
Director, and interested parties in the private sector selected
under subsection (c) shall provide instruction and related
instructional materials at each educational seminar under this
section to U.S. Customs and Border Protection Agency personnel
and, as appropriate, to U.S. Immigration and Customs
Enforcement Agency personnel on the following:
(A) Conducting a physical inspection of an article
imported into the United States, including testing of
samples of the article, to determine if the article is
mislabeled in the manifest or other accompanying
documentation.
(B) Reviewing the manifest and other accompanying
documentation of an article imported into the United
States to determine if the country of origin of the
article listed in the manifest or other accompanying
documentation is accurate.
(C) Customs valuation.
(D) Industry supply chains and other related
matters as determined to be appropriate by the
Commissioner.
(2) Trade enforcement efforts.--In carrying out subsection
(a)(1)(B), the Commissioner, the Director, and interested
parties in the private sector selected under subsection (c)
shall provide instruction and related instructional materials
at each educational seminar under this section to U.S. Customs
and Border Protection Agency personnel and, as appropriate, to
U.S. Immigration and Customs Enforcement Agency personnel to
identify opportunities to enhance enforcement of the following:
(A) Collection of countervailing duties assessed
under subtitle A of title VII of the Tariff Act of 1930
(19 U.S.C. 1671 et seq.) and antidumping duties
assessed under subtitle B of title VII of the Tariff
Act of 1930 (19 U.S.C. 1673 et seq.).
(B) Addressing evasion of duties on imports of
textiles.
(C) Protection of intellectual property rights.
(D) Enforcement of child labor laws.
(3) Approval of commissioner and director.--The instruction
and related instructional materials at each educational seminar
under this section shall be subject to the approval of the
Commissioner and the Director.
(c) Selection Process.--
(1) In general.--The Commissioner shall establish a process
to solicit, evaluate, and select interested parties in the
private sector for purposes of assisting in providing
instruction and related instructional materials described in
subsection (b) at each educational seminar under this section.
(2) Criteria.--The Commissioner shall evaluate and select
interested parties in the private sector under the process
established under paragraph (1) based on--
(A) availability and usefulness;
(B) the volume, value, and incidence of mislabeling
or misidentification of origin of imported articles;
and
(C) other appropriate criteria established by the
Commissioner.
(3) Public availability.--The Commissioner shall publish in
the Federal Register a detailed description of the process
established under paragraph (1) and the criteria established
under paragraph (2).
(d) Special Rule for Antidumping and Countervailing Orders.--
(1) In general.--The Commissioner shall give due
consideration to carrying out an educational seminar under this
section in whole or in part to improve the ability of U.S.
Customs and Border Protection Agency personnel to enforce a
countervailing or antidumping duty order issued under section
706 or 736 of the Tariff Act of 1930 (19 U.S.C. 1671e or 1673e)
upon the request of a petitioner in an action underlying such
countervailing or antidumping duty order.
(2) Interested party.--A petitioner described in paragraph
(1) shall be treated as an interested party in the private
sector for purposes of the requirements of this section.
(e) Performance Standards.--The Commissioner and the Director shall
establish performance standards to measure the development and level of
achievement of educational seminars under this section.
(f) Reporting.--Beginning September 30, 2013, the Commissioner and
Director shall submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the Senate an annual
report on the effectiveness of educational seminars under this section.
(g) Definitions.--In this section:
(1) Commissioner.--The term ``Commissioner'' means the
Commissioner of U.S. Customs and Border Protection.
(2) Director.--The term ``Director'' means the Director of
U.S. Immigration and Customs Enforcement.
(3) United states.--The term ``United States'' means the
customs territory of the United States, as defined in General
Note 2 to the Harmonized Tariff Schedule of the United States.
(4) U.S. customs and border protection agency personnel.--
The term ``U.S. Customs and Border Protection Agency
personnel'' means import specialists, auditors, and other
appropriate employees of the U.S. Customs and Border Protection
Agency.
(5) U.S. immigration and customs enforcement agency
personnel.--The term ``U.S. Immigrations and Customs
Enforcement Agency personnel'' means Homeland Security
Investigations Directorate personnel and other appropriate
employees of the U.S. Immigrations and Customs Enforcement
Agency.
CHAPTER 2--IMPORTER REQUIREMENTS
SEC. 221. IMPORTER OF RECORD PROGRAM.
(a) Establishment.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Homeland Security shall
establish an importer of record program to assign and maintain importer
of record numbers.
(b) Requirements.--The Secretary of Homeland Security shall ensure
that, as part of the importer of record program, the U.S. Customs and
Border Protection Agency--
(1) develops criteria that importers must meet in order to
obtain an importer of record number, including--
(A) criteria to ensure sufficient information is
collected to allow the U.S. Customs and Border
Protection Agency to verify the existence of the
importer requesting the importer of record number;
(B) criteria to ensure sufficient information is
collected to allow the U.S. Customs and Border
Protection Agency to identify linkages or other
affiliations between importers that are requesting or
have been assigned importer of record numbers; and
(C) criteria to ensure sufficient information is
collected to allow the U.S. Customs and Border
Protection Agency to identify changes in address and
corporate structure of importers;
(2) provides a process by which importers are assigned
importer of record numbers;
(3) maintains a centralized database of importer of record
numbers, including a history of importer of record numbers
associated with each importer, and the information described in
subparagraphs (A), (B), and (C) of paragraph (1);
(4) evaluates the accuracy of the database; and
(5) takes measures to ensure that duplicate importer of
record numbers are not issued.
(c) Report.--Not later than 1 year after the date of the enactment
of this Act, the Secretary of Homeland Security shall submit to the
Committee on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives a report on the importer of record
program established under subsection (a).
(d) Number Defined.--In this subsection, the term ``number'', with
respect to an importer of record, means a filing identification number
described in section 24.5 of title 19, Code of Federal Regulations (as
in effect on the day before the date of the enactment of this Act).
SEC. 222. CUSTOMS BROKER IDENTIFICATION OF IMPORTERS.
(a) In General.--Section 641 of the Tariff Act of 1930 (19 U.S.C.
1641) is amended by adding at the end the following:
``(i) Identification of Importers.--
``(1) In general.--The Secretary shall prescribe
regulations setting forth the minimum standards for customs
brokers and importers, including nonresident importers,
regarding the identity of the importer that shall apply in
connection with the importation of merchandise into the United
States.
``(2) Minimum requirements.--The regulations shall, at a
minimum, require customs brokers to implement, and importers
(after being given adequate notice) to comply with, reasonable
procedures for--
``(A) collecting the identity of importers,
including nonresident importers, seeking to import
merchandise into the United States to the extent
reasonable and practicable; and
``(B) maintaining records of the information used
to substantiate a person's identity, including name,
address, and other identifying information.
``(3) Penalties.--Any customs broker who fails to collect
information required under the regulations prescribed under
this subsection shall be liable to the United States, at the
discretion of the Secretary, for a monetary penalty not to
exceed $10,000 for each violation of those regulations and
subject to revocation or suspension of a license or permit of
the customs broker pursuant to the procedures set forth in
subsection (d).
``(4) Definitions.--In this subsection, the terms
`importer' and `nonresident importer' have the meaning given
such terms in section 2 of the Customs Trade Facilitation and
Enforcement Act of 2012.''.
(b) Study and Report Required.--Not later than 180 days after the
date of enactment of this Act, the Commissioner of U.S. Customs and
Border Protection shall submit to Congress a report containing
recommendations for--
(1) determining the most timely and effective way to
require foreign nationals to provide customs brokers with
appropriate and accurate information, comparable to that which
is required of United States nationals, concerning the
identity, address, and other related information relating to
such foreign nationals necessary to enable customs brokers to
comply with the requirements of section 641(i) of the Tariff
Act of 1930 (as added by subsection (a)); and
(2) establishing a system for customs brokers to review
information maintained by relevant Federal agencies for
purposes of verifying the identities of importers, including
nonresident importers, seeking to import merchandise into the
United States.
SEC. 223. ESTABLISHMENT OF ``NEW IMPORTER'' PROGRAM.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Commissioner of U.S. Customs and Border
Protection shall establish a new importer program that directs the U.S.
Customs and Border Protection Agency to adjust bond amounts for new
importers based on the level of risk assessed by the U.S. Customs and
Border Protection Agency for protection of revenue of the Federal
Government.
(b) Requirements.--The Commissioner shall ensure that, as part of
the new importer program established under subsection (a), the U.S.
Customs and Border Protection Agency--
(1) develops risk assessment guidelines for new importers
to determine if and to what extent--
(A) to adjust bond amounts of imported products of
new importers; and
(B) to increase screening of imported products of
new importers;
(2) develops procedures to ensure increased oversight of
imported products of new importers relating to the enforcement
of the priority trade issues described in paragraph (3)(B)(ii)
of section 2(d) of the Act of March 3, 1927 (44 Stat. 1381,
chapter 348; 19 U.S.C. 2072(d)), as added by section 211(a) of
this Act;
(3) develops procedures to ensure increased oversight of
imported products of new importers by Centers of Excellence and
Expertise established under section 212; and
(4) establishes a centralized database of new importers to
ensure accuracy of information that is required to be provided
by new importers to the U.S. Customs and Border Protection
Agency.
SEC. 224. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.
(a) In General.--Part III of title IV of the Tariff Act of 1930 (19
U.S.C. 1481 et seq.) is amended by inserting after section 484b the
following new section:
``SEC. 484C. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.
``(a) In General.--Except as provided in subsection (c), if an
importer of record under section 484 of this Act is not a resident of
the United States, the Commissioner of U.S. Customs and Border
Protection shall require the non-resident importer to designate a
resident agent in the United States subject to the requirements
described in subsection (b).
``(b) Requirements.--The requirements described in this subsection
are the following:
``(1) The resident agent shall be authorized to accept
service of process against the non-resident importer in
connection with the importation of merchandise.
``(2) The resident agent shall be liable to the United
States for payment of duties and penalties or other fines
issued by the Secretary of Homeland Security or the
Commissioner if the Secretary or Commissioner is unable to
collect such duties and penalties or other fines from such non-
resident importer in connection with the importation of
merchandise.
``(3) The Secretary of the Treasury may require the
resident agent to secure a bond or other security in connection
with the importation of merchandise as the Secretary may deem
necessary for the protection of the revenue or to assure
compliance with any provision of law, regulation, or
instruction which the Secretary of the Commissioner may be
authorized to enforce.
``(4) The Commissioner of U.S. Customs and Border
Protection shall require the non-resident importer to establish
a power of attorney with the resident agent in connection with
the importation of merchandise.
``(c) Non-Applicability.--The requirements of this section shall
not apply with respect to a non-resident importer who is a validated
Tier 2 or Tier 3 participant in the Customs-Trade Partnership Against
Terrorism program established under subtitle B of title II of the SAFE
Port Act (6 U.S.C. 961 et seq.).
``(d) Penalties.--
``(1) In general.--It shall be unlawful for any person to
import into the United States any merchandise in violation of
this section.
``(2) Civil penalties.--Any person who violates paragraph
(1) shall be liable for a civil penalty of $50,000 for each
such violation.
``(3) Other penalties.--In addition to the penalties
specified in paragraph (2), any violation of this section that
violates any other customs and trade laws of the United States
shall be subject to any applicable civil and criminal penalty,
including seizure and forfeiture, that may be imposed under
such customs or trade law or title 18, United States Code, with
respect to the importation of merchandise.
``(4) Definition.--In this subsection, the term `customs
and trade laws of the United States' has the meaning given such
term in section 2 of the Customs Trade Facilitation and
Enforcement Act of 2012.''.
(b) Effective Date.--Section 484c of the Tariff Act of 1930, as
added by subsection (a), takes effect on the date of the enactment of
this Act and applies with respect to the importation of merchandise of
an importer of record under section 484 of the Tariff Act of 1930 who
is not a resident of the United States on or after the date that is 180
days after such date of enactment.
SEC. 225. CERTIFIED IMPORTER PROGRAM.
(a) Interagency Committee.--
(1) Establishment and membership.--There is established an
interagency committee composed of representatives of each
covered Federal agency.
(2) Chairperson.--The Commissioner of U.S. Customs and
Border Protection shall serve as the chairperson of the
interagency committee.
(b) Duties.--The interagency committee shall--
(1) not later than December 30, 2014, and in consultation
with interested parties in the private sector, establish a
certified importer program as described in subsection (c); and
(2) assess and make recommendations with respect to other
trade facilitation benefits for certified importers.
(c) Certified Importer Program.--
(1) In general.--The certified importer program described
in this subsection is a program to authorize the release of
cargo imported by a certified importer on an expedited basis
that is subject to documentation for clearing or licensing the
importation or exportation of such cargo by one or more covered
Federal agencies.
(2) Clearance.--Such release of cargo shall include
clearance through the Automated Commercial Environment computer
system authorized under section 13031(f)(5) of the Consolidated
Omnibus Budget and Reconciliation Act of 1985 (19 U.S.C.
58c(f)(5)), as amended by section 203 of this Act, or its
predecessor system upon transmission of data governing entry
and immediate delivery.
(d) Definitions.--In this section:
(1) Certified importer.--The term ``certified importer''
means an importer that--
(A)(i) is a validated Tier 2 or Tier 3 participant
in the Customs-Trade Partnership Against Terrorism
program established under subtitle B of title II of the
SAFE Port Act (6 U.S.C. 961 et seq.); and
(ii) is a participant in good standing of the U.S.
Customs and Border Protection Agency's importer self-
assessment program; and
(B) where applicable, participants in good standing
in one or more programs maintained by a covered Federal
agency to formally identify entities that are highly
compliant with the covered Federal agency's
requirements and which maintain a rigorous system of
internal controls and system of records to promote and
document such compliance.
(2) Covered federal agency.--The term ``covered Federal
agency'' means a Federal department or agency that requires
documentation for clearing or licensing the importation or
exportation of cargo.
(e) Report.--
(1) In general.--Not later than March 31, 2014, the
Commissioner of U.S. Customs and Border Protection shall submit
to the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives a report
assessing the progress in establishing the certified importer
program as described in subsection (c) and coordination among
the Commissioner and the heads of each covered Federal agency
in facilitating the implementation of the certified importer
program.
(2) Update.--Not later than December 31, 2015, the
Commissioner of U.S. Customs and Border Protection shall submit
to the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives an update of the
report required under paragraph (1).
CHAPTER 3--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
SEC. 231. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT.
The Tariff Act of 1930 is amended by inserting after section 628
(19 U.S.C. 1628) the following new section:
``SEC. 628A. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT.
``(a) Sharing of Information Relating to Copyrights and Registered
Marks.--
``(1) Sharing of information and samples.--Notwithstanding
any other provision of law, the Secretary is authorized, at the
time that merchandise is presented for examination and
thereafter, to provide to the owner of a copyright or a
registered mark, with notification to the importer of record--
``(A) any information appearing on the merchandise
or its retail packaging,
``(B) a sample, or digital image, of the
merchandise and its retail packaging, or
``(C) if a sample is provided under subparagraph
(B), any packing material accompanying the sample that
bears either a mark suspected of being a counterfeit
mark of the registered mark, or a work suspected of
infringing the copyright,
as presented to the United States Customs and Border Protection
Agency, without redaction, whether imported into or exported
from, or attempted to be exported from, the United States, to
assist the Secretary in determining whether the merchandise,
packaging, or packing material infringes the copyright or bears
or consists of a counterfeit mark of the registered mark.
``(2) Nondisclosure.--
``(A) In general.--Any owner of a copyright or a
registered mark to whom information, a sample, an
image, or material described in subparagraph (A), (B),
or (C) of paragraph (1) is provided under paragraph (1)
may not disclose it to any other person or use it for a
purpose other than the purpose described in paragraph
(1).
``(B) Exception.--Subparagraph (A) does not apply
in the case of information, a sample, an image, or
material that is disclosed or used in a civil action
for infringement of a copyright under title 17, United
States Code, or infringement of a registered mark under
the Lanham Act.
``(C) Use in judicial proceedings barred.--
Information, samples, images, or material described in
subparagraph (A), (B), or (C) of paragraph (1), or
information obtained from the provision of information,
samples, images, or material under any such
subparagraph, may not be used by the owner of a
copyright or registered mark in any judicial
proceeding, other than a proceeding described in
subparagraph (B).
``(3) Bonding requirements.--The Secretary may impose
bonding requirements on the owner of the copyright or
registered mark as a condition of disclosure of information and
the provision of samples under this subsection.
``(4) Implementation.--
``(A) Regulations.--Not later than the 90th day
after the date of the enactment of this section, the
Secretary shall promulgate revised regulations to carry
out this subsection. Until such time as the Secretary
promulgates the revised regulations, and
notwithstanding section 818(g)(2) of the National
Defense Authorization Act of 2012 (10 U.S.C. 2302 note;
Public Law 112-81), those regulations in effect on the
date of the enactment of this section implementing
section 818(g)(1) of the National Defense Authorization
Act of 2012 shall be in effect, except to the extent
such regulations limit the application of this
subsection.
``(B) Information sharing processes.--
``(i) For importers.--
``(I) In general.--The Secretary is
authorized to establish a clearance
process for those importers of record
who wish to participate in the process
to allow for or accelerate the release
of merchandise from the custody of the
United States Customs and Border
Protection Agency without the provision
under paragraph (1), prior to seizure
of the merchandise, of information,
samples, images, or material with
respect to the merchandise.
``(II) Limitation on sharing of
information.--In the case of an
importer of record that participates in
the process under subclause (I), no
information, samples, images, or
material described in subparagraph (A),
(B), or (C) of paragraph (1) of
merchandise of that importer may be
provided, without redaction, to the
owner of a copyright or registered mark
prior to seizure of the merchandise.
``(ii) For owners of copyrights and
registered marks.--
``(I) In general.--
``(aa) Establishment.--The
Secretary shall establish a
process or processes for those
owners of copyrights and owners
of registered marks that wish
to participate in the process
or processes, through which any
sharing of information,
samples, images, and material
under paragraph (1) will be
carried out before the
notification to the importer of
record referred to in paragraph
(1) is made, subject to the
limitation under subclause (II)
of clause (i).
``(bb) Ineligibility.--An
owner of a copyright or a
registered mark shall not be
eligible to participate in a
process described in item (aa)
if that owner of a copyright or
a registered mark has violated
the prohibitions on disclosure
under paragraph (2).
``(II) Provision of samples and
information to cbp.--The Secretary is
authorized to establish a process for
those owners of copyrights and owners
of registered marks that wish to
provide to the United States Customs
and Border Protection Agency samples
of, or information regarding, their
copyrighted merchandise or merchandise
that bears their registered marks (as
the case may be), to assist the
Secretary in determining whether
merchandise presented for examination
infringes the copyright or bears or
consists of a counterfeit mark of the
registered mark.
``(b) Merchandise in Violation of Anticircumvention Measures.--
``(1) Notification upon seizure.--
``(A) Notification of copyright owner.--Upon the
seizure of merchandise by the Secretary for a violation
of subsection (a) or (b) of section 1201 of title 17,
United States Code, the Secretary shall notify the
owner of a copyright who is included on the list
established under paragraph (4) of the seizure of the
merchandise that is capable of circumventing a
technological measure of the copyright owner under
either such subsection. The Secretary shall also
provide to any such person additional information upon
request, which shall be equivalent to information
provided pursuant to section 602(b) of title 17, United
States Code, and the regulations issued under that
section.
``(B) Notification of trademark owner.--Upon the
seizure of merchandise by the Secretary for a violation
of subsection (a) or (b) of section 1201 of title 17,
United States Code, the Secretary shall notify the
owner of a registered mark--
``(i) on hardware that contains a
technological measure that the seized
merchandise is capable of circumventing, or
``(ii) on hardware on which the use of the
seized merchandise is capable of circumventing
a technological measure of a copyright owner,
in either case in a manner that would result in injury
to the owner of a copyright under either such
subsection, if the owner of the registered mark is
included on the list established under paragraph (4).
The Secretary shall also provide to any such person
additional information upon request, which shall be
equivalent to information provided pursuant to section
602(b) of title 17, United States Code, and the
regulations issued under that section.
``(2) Pre-seizure provision of samples.--
``(A) In general.--In the case of merchandise that
the Secretary reasonably suspects may be subject to
seizure by the Secretary for a violation of subsection
(a) or (b) of section 1201 of title 17, United States
Code, the Secretary is authorized to provide a sample
of the merchandise to any person described in
subparagraph (B) in the case of merchandise that is
suspected of such a violation, when necessary in the
view of the Secretary to assist the Secretary in
determining whether such a violation has occurred.
``(B) Recipients of samples.--Persons to whom
provision of samples is authorized under subparagraph
(A) are--
``(i) the owner of a copyright whose
technological measure the merchandise is
capable of circumventing under subsection (a)
or (b) of section 1201 of title 17, United
States Code; and
``(ii) the owner of a registered mark--
``(I) on hardware that contains a
technological measure that the seized
merchandise is capable of
circumventing, or
``(II) on hardware on which the use
of the seized merchandise is capable of
circumventing a technological measure
of a copyright owner,
in either case in a manner that would result in
injury to the owner of a copyright under either
such subsection.
``(C) Nondisclosure.--
``(i) In general.--Any owner of a copyright
or a registered mark to whom a sample is
provided under subparagraph (A) before the
merchandise is seized may not disclose it to
any other person or use it for a purpose other
than the purpose described in subparagraph (A)
for such provision of samples.
``(ii) Exception.--Clause (i) does not
apply in the case of a sample that is disclosed
or used in a civil action for infringement of a
copyright under title 17, United States Code,
or infringement of a registered mark under the
Lanham Act.
``(iii) Use in judicial proceedings
barred.--A sample provided under subparagraph
(A), or information obtained from the provision
of such a sample, may not be used by the owner
of a copyright or registered mark in any
judicial proceeding, other than a proceeding
described in clause (ii).
``(D) Bonding requirements.--The Secretary may
impose bonding requirements on the owner of the
copyright or trademark as a condition of the provision
of samples under this paragraph.
``(3) Post-seizure provision of samples.--
``(A) In general.--In the case of merchandise
subject to seizure by the Secretary for a violation of
subsection (a) or (b) of section 1201 of title 17,
United States Code, the Secretary is authorized to
provide a sample of the merchandise to any person
described in subparagraph (B) if the merchandise has
been seized for such a violation.
``(B) Recipients of samples.--Persons to whom
provision of samples is authorized under subparagraph
(A) are--
``(i) the owner of a copyright whose
technological measure the merchandise is
capable of circumventing under subsection (a)
or (b) of section 1201 of title 17, United
States Code, and who is included on the list
established under paragraph (4); and
``(ii) the owner of a registered mark--
``(I) on hardware that contains a
technological measure that the seized
merchandise is capable of
circumventing, or
``(II) on hardware on which the use
of the seized merchandise is capable of
circumventing a technological measure
of a copyright owner,
in either case in a manner that would result in
injury to the owner of a copyright under either
such subsection, if the owner of the registered
mark is included on the list established under
paragraph (4). The Secretary shall also provide
to any such person additional information upon
request, which shall be equivalent to
information provided pursuant to section 602(b)
of title 17, United States Code, and the
regulations issued under that section.
``(C) Bonding requirements.--The Secretary may
impose bonding requirements on the owner of the
copyright or trademark as a condition of the provision
of samples under this paragraph.
``(4) Eligible owners of copyrights and registered marks.--
An owner of a copyright or a registered mark is eligible to
receive notification under paragraph (1) or samples under
paragraph (3) if such owner is included on a list that the
Secretary is authorized to maintain and periodically revise,
through a process of notice and comment, for purposes of
paragraphs (1) and (3) of this subsection.
``(5) Regulations.--Not later than the 90th day after the
date of the enactment of this section, the Secretary shall
promulgate regulations establishing procedures that implement
this subsection.
``(c) Notification of Parties Responsible for Initiation of Section
337 Investigations.--The Secretary is authorized to notify the party or
parties responsible for initiating an investigation under section 337
of this Act when merchandise is excluded under subsection (d) of that
section, or merchandise is seized under subsection (i) of that section,
pursuant to that investigation.
``(d) Definitions.--In this section:
``(1) The term `counterfeit mark' has the meaning given
that term in section 2320(e) of title 18, United States Code.
``(2) The term `Lanham Act' means the Act entitled `An Act
to provide for the registration and protection of trademarks
used in commerce, to carry out the provisions of certain
international conventions, and for other purposes', approved
July 5, 1946 (15 U.S.C. 1051 et seq.).
``(3) The term `mark' has the meaning given that term in
section 45 of the Lanham Act (15 U.S.C. 1127).
``(4) The term `registered mark' has the meaning given that
term in section 45 of the Lanham Act (15 U.S.C. 1127).
``(5) The term `Secretary' means the Secretary of Homeland
Security, acting through the Commissioner of U.S. Customs and
Border Protection.
``(6) The term `work' means a work within the meaning of
title 17, United States Code.
``(7) The term `without redaction' means without
modification, deletion or omission.''.
TITLE III--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY
ORDERS
SEC. 301. SHORT TITLE.
This title may be cited as the ``Preventing Recurring Trade Evasion
and Circumvention Act'' or ``PROTECT Act''.
SEC. 302. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Finance and the Committee on
Appropriations of the Senate; and
(B) the Committee on Ways and Means and the
Committee on Appropriations of the House of
Representatives.
(2) Commissioner.--The term ``Commissioner'' means the
Commissioner of U.S. Customs and Border Protection.
(3) Covered merchandise.--The term ``covered merchandise''
means merchandise that is subject to--
(A) a countervailing duty order issued under
section 706 of the Tariff Act of 1930; or
(B) an antidumping duty order issued under section
736 of the Tariff Act of 1930.
(4) Eligible small business.--
(A) In general.--The term ``eligible small
business'' means any business concern which, in the
Commissioner's judgment, due to its small size, has
neither adequate internal resources nor financial
ability to obtain qualified outside assistance in
preparing and submitting for consideration allegations
of evasion.
(B) Non-reviewability.--Any agency decision
regarding whether a business concern is an eligible
small business for purposes of section 311(b)(3) is not
reviewable by any other agency or by any court.
(5) Enter; entry.--The terms ``enter'' and ``entry'' refer
to the entry, or withdrawal from warehouse for consumption, in
the customs territory of the United States.
(6) Evade; evasion.--The terms ``evade'' and ``evasion''
refer to entering covered merchandise into the customs
territory of the United States by means of any document or
electronically transmitted data or information, written or oral
statement, or act that is material and false, or any omission
that is material, and that results in any cash deposit or other
security or any amount of applicable antidumping or
countervailing duties being reduced or not being applied with
respect to the merchandise.
(7) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(8) Trade remedy laws.--The term ``trade remedy laws''
means title VII of the Tariff Act of 1930.
SEC. 303. APPLICATION TO CANADA AND MEXICO.
Pursuant to article 1902 of the North American Free Trade Agreement
and section 408 of the North American Free Trade Agreement
Implementation Act (19 U.S.C. 3438), this title and the amendments made
by this title shall apply with respect to goods from Canada and Mexico.
Subtitle A--Actions Relating to Enforcement of Trade Remedy Laws
SEC. 311. TRADE REMEDY LAW ENFORCEMENT DIVISION.
(a) Establishment.--
(1) In general.--The Secretary of Homeland Security shall
establish and maintain within the Office of International Trade
of U.S. Customs and Border Protection, established under
section 2(d) of the Act of March 3, 1927 (44 Stat. 1381,
chapter 348; 19 U.S.C. 2072(d)), a Trade Remedy Law Enforcement
Division.
(2) Composition.--The Trade Law Remedy Enforcement Division
shall be composed of--
(A) headquarters personnel led by a Director, who
shall report to the Assistant Commissioner of the
Office of International Trade; and
(B) a National Targeting and Analysis Group
dedicated to preventing and countering evasion.
(3) Duties.--The Trade Remedy Law Enforcement Division
shall be dedicated--
(A) to the development and administration of
policies to prevent and counter evasion;
(B) to direct enforcement and compliance assessment
activities concerning evasion;
(C) to the development and conduct of commercial
risk assessment targeting with respect to cargo
destined for the United States in accordance with
subsection (c);
(D) to issuing Trade Alerts described in subsection
(d); and
(E) to the development of policies for the
application of single entry and continuous bonds for
entries of covered merchandise to sufficiently protect
the collection of antidumping and countervailing duties
commensurate with the level of risk of noncollection.
(b) Duties of Director.--The duties of the Director of the Trade
Remedy Law Enforcement Division shall include--
(1) directing the trade enforcement and compliance
assessment activities of the U.S. Customs and Border Protection
Agency that concern evasion;
(2) facilitating, promoting, and coordinating cooperation
and the exchange of information between the U.S. Customs and
Border Protection Agency, U.S. Immigration and Customs
Enforcement, and other relevant agencies regarding evasion;
(3) notifying on a timely basis the administering authority
(as defined in section 771(1) of the Tariff Act of 1930 (19
U.S.C. 1677(1))) and the Commission (as defined in section
771(2) of the Tariff Act of 1930 (19 U.S.C. 1677(2))) of any
finding, determination, civil action, or criminal action taken
by the U.S. Customs and Border Protection Agency or other
Federal agency regarding evasion;
(4) serving as the primary liaison between the U.S. Customs
and Border Protection Agency and the public regarding United
States Government activities concerning evasion, including--
(A) receive and transmit to the appropriate U.S.
Customs and Border Protection Agency office allegations
from parties of evasion;
(B) upon request by the party or parties that
submitted an allegation of evasion, provide information
to such party or parties on the status of the U.S.
Customs and Border Protection Agency's consideration of
the allegation and decision to pursue or not pursue any
investigations or other actions, such as changes in
policies, procedures, or resource allocation as a
result of the allegation;
(C) as needed, request from the party or parties
that submitted an allegation of evasion any additional
information that may be relevant for the U.S. Customs
and Border Protection Agency determining whether to
initiate an investigation or take any other action
regarding the allegation;
(D) notify on a timely basis the party or parties
that submitted such an allegation of the results of any
civil or criminal actions taken by the U.S. Customs and
Border Protection Agency or other Federal agency
regarding evasion as a direct or indirect result of the
allegation;
(E) upon request, provide technical assistance and
advice to eligible small businesses to enable such
businesses to prepare and submit allegations of
evasion, except that the Director may deny assistance
if the Director concludes that the allegation, if
submitted, would not lead to the initiation of an
investigation or any other action to address the
allegation;
(F) in cooperation with the public, the Commercial
Customs Operations Advisory Committee, the Trade
Support Network, and any other relevant parties and
organizations, develop guidelines on the types and
nature of information that may be provided in
allegations of evasion; and
(G) regularly consult with the public, the
Commercial Customs Operations Advisory Committee, the
Trade Support Network, and any other relevant parties
and organizations regarding the development and
implementation of regulations, interpretations, and
policies related to countering evasion.
(c) Preventing and Countering Evasion of the Trade Remedy Laws.--In
carrying out its duties with respect to preventing and countering
evasion, the National Targeting and Analysis Group dedicated to
preventing and countering evasion shall--
(1) establish targeted risk assessment methodologies and
standards--
(A) for evaluating the risk that cargo destined for
the United States may constitute evading covered
merchandise; and
(B) for issuing, as appropriate, Trade Alerts
described in subsection (d); and
(2) to the extent practicable and otherwise authorized by
law, use information available from the Automated Commercial
System, the Automated Commercial Environment computer system,
the Automated Targeting System, the Automated Export System,
the International Trade Data System, and the Treasury
Enforcement Communications System, and any successor systems,
to administer the methodologies and standards established under
paragraph (1).
(d) Trade Alerts.--Based upon the application of the targeted risk
assessment methodologies and standards established under subsection
(c), the Director of the Trade Remedy Law Enforcement Division shall
issue Trade Alerts or other such means of notification to directors of
United States ports of entry directing further inspection, or physical
examination or testing, of specific merchandise to ensure compliance
with the trade remedy laws.
SEC. 312. COLLECTION OF INFORMATION ON EVASION OF TRADE REMEDY LAWS.
(a) Authority To Collect Information.--To determine whether covered
merchandise is being entered into the customs territory of the United
States through evasion, the Secretary, acting through the
Commissioner--
(1) shall exercise all existing authorities to collect
information needed to make the determination; and
(2) may collect such additional information as is necessary
to make the determination through such methods as the
Commissioner considers appropriate, including by issuing
questionnaires with respect to the entry or entries at issue
to--
(A) a person who filed an allegation with respect
to the covered merchandise;
(B) a person who is alleged to have entered the
covered merchandise into the customs territory of the
United States through evasion; or
(C) any other person who is determined to have
information relevant to the allegation of entry of
covered merchandise into the customs territory of the
United States through evasion.
(b) Adverse Inference.--
(1) In general.--If the Secretary finds that a person who
filed an allegation, a person alleged to have entered covered
merchandise into the customs territory of the United States
through evasion, or a foreign producer or exporter of covered
merchandise that is alleged to have entered into the customs
territory of the United States through evasion, has failed to
cooperate by not acting to the best of the person's ability to
comply with a request for information, the Secretary may, in
making a determination whether an entry or entries of covered
merchandise may constitute merchandise that is entered into the
customs territory of the United States through evasion, use an
inference that is adverse to the interests of that person in
selecting from among the facts otherwise available to determine
whether evasion has occurred.
(2) Adverse inference described.--An adverse inference used
under paragraph (1) may include reliance on information derived
from--
(A) the allegation of evasion of the trade remedy
laws, if any, submitted to the U.S. Customs and Border
Protection Agency;
(B) a determination by the Commissioner in another
investigation, proceeding, or other action regarding
evasion of the unfair trade laws; or
(C) any other available information.
SEC. 313. ACCESS TO INFORMATION.
(a) In General.--Section 777(b)(1)(A)(ii) of the Trade Act of 1930
(19 U.S.C. 1677f(b)(1)(A)(ii)) is amended by inserting ``negligence,
gross negligence, or'' after ``regarding''.
(b) Additional Information.--Notwithstanding any other provision of
law, the Secretary is authorized to provide to the Secretary of
Commerce or the U.S. International Trade Commission any information
that is necessary to enable the Secretary of Commerce or the U.S.
International Trade Commission to assist the Secretary to identify,
through risk assessment targeting or otherwise, covered merchandise
that is entered into the customs territory of the United States through
evasion.
SEC. 314. COOPERATION WITH FOREIGN COUNTRIES ON PREVENTING EVASION OF
TRADE REMEDY LAWS.
(a) Bilateral Agreements.--
(1) In general.--The Secretary shall seek to negotiate and
enter into bilateral agreements with the customs authorities or
other appropriate authorities of foreign countries for purposes
of cooperation on preventing evasion of the trade remedy laws
of the United States and the trade remedy laws of the other
country.
(2) Provisions and authorities.--The Secretary shall seek
to include in each such bilateral agreement the following
provisions and authorities:
(A) On the request of the importing party, the
exporting party shall provide, consistent with its
laws, regulations, and procedures, production, trade,
and transit documents and other information necessary
to determine whether an entry or entries exported from
the exporting party are subject to the importing
party's trade remedy laws.
(B) On the written request of the importing party,
the exporting party shall conduct a verification for
purposes of enabling the importing party to make a
determination described in subparagraph (A).
(C) The exporting party may allow the importing
party to participate in a verification described in
subparagraph (B), including through a site visit.
(D) If the exporting party does not allow
participation of the importing party in a verification
described in subparagraph (B), the importing party may
take this fact into consideration in its trade
enforcement and compliance assessment activities
regarding the compliance of the exporting countries'
exports with the importing countries' trade remedy
laws.
(b) Consideration.--The Commissioner is authorized to take into
consideration whether a country is a signatory to a bilateral agreement
described in subsection (a) and the extent to which the country is
cooperating under the bilateral agreement for purposes of trade
enforcement and compliance assessment activities of U.S. Customs and
Border Protection that concern evasion by such country's exports.
(c) Report.--Not later than December 31 of each year beginning
after the date of the enactment of this Act, the Secretary shall submit
to the appropriate congressional committees a report summarizing--
(1) the status of any ongoing negotiations of bilateral
agreements described in subsection (a), including the
identities of the countries involved in such negotiations;
(2) the terms of any completed bilateral agreements
described in subsection (a); and
(3) bilateral cooperation and other activities conducted
pursuant to or enabled by any completed bilateral agreements
described in subsection (a).
SEC. 315. TRADE NEGOTIATING OBJECTIVES.
The principal negotiating objectives of the United States shall
include obtaining the objectives of the bilateral agreements described
under section 314(a) for any trade agreements under negotiation as of
the date of the enactment of this Act or future trade agreement
negotiations.
Subtitle B--Other Matters
SEC. 321. ALLOCATION AND TRAINING OF PERSONNEL.
The Commissioner shall, to the maximum extent possible, ensure that
the U.S. Customs and Border Protection Agency--
(1) employs sufficient personnel who have expertise in, and
responsibility for, preventing and investigating the entry of
covered merchandise into the customs territory of the United
States through evasion;
(2) on the basis of risk assessment metrics, assigns
sufficient personnel with primary responsibility for preventing
the entry of covered merchandise into the customs territory of
the United States through evasion to the ports of entry in the
United States at which the Commissioner determines potential
evasion presents the most substantial threats to the revenue of
the United States; and
(3) provides adequate training to relevant personnel to
increase expertise and effectiveness in the prevention and
investigation of entries of covered merchandise into the
customs territory of the United States through evasion.
SEC. 322. ANNUAL REPORT ON PREVENTION OF EVASION OF ANTIDUMPING AND
COUNTERVAILING DUTY ORDERS.
(a) In General.--Not later than February 28 of each year, beginning
in 2013, the Commissioner, in consultation with the Secretary of
Commerce and the Assistant Secretary for U.S. Immigration and Customs
Enforcement, shall submit to the appropriate congressional committees a
report on the efforts being taken to prevent and investigate evasion.
(b) Contents.--Each report required under subsection (a) shall
include--
(1) for the calendar year preceding the submission of the
report--
(A) a summary of the efforts of the U.S. Customs
and Border Protection Agency to prevent and investigate
evasion;
(B) the number of allegations of evasion received
and the number of allegations of evasion resulting in
investigations by the U.S. Customs and Border
Protection Agency or any other agency;
(C) a summary of the completed investigations of
evasion, including the number and nature of the
investigations initiated, conducted, or completed, as
well as their resolution;
(D) with respect to investigations that lead to the
issuance of a penalty notice, the penalty amounts;
(E) the amounts of antidumping and countervailing
duties collected as a result of any investigations or
other actions by the U.S. Customs and Border Protection
Agency or any other agency;
(F) a description of the allocation of personnel
and other resources of the U.S. Customs and Border
Protection Agency and U.S. Immigration and Customs
Enforcement to prevent and investigate evasion,
including any assessments conducted regarding the
allocation of such personnel and resources; and
(G) a description of training conducted to increase
expertise and effectiveness in the prevention and
investigation of evasion; and
(2) a description of the U.S. Customs and Border Protection
Agency processes and procedures to prevent and investigate
evasion, including--
(A) the specific guidelines, policies, and
practices used by the U.S. Customs and Border
Protection Agency to ensure that allegations of evasion
are promptly evaluated and acted upon in a timely
manner;
(B) an evaluation of the efficacy of such existing
guidelines, policies, and practices;
(C) identification of any changes since the last
report that have materially improved or reduced the
effectiveness of the U.S. Customs and Border Protection
Agency to prevent and investigate evasion;
(D) a description of the development and
implementation of policies for the application of
single entry and continuous bonds for entries of
covered merchandise to sufficiently protect the
collection of antidumping and countervailing duties
commensurate with the level of risk on noncollection;
(E) the processes and procedures for increased
cooperation and information sharing with the Department
of Commerce, U.S. Immigration and Customs Enforcement,
and any other relevant Federal agencies to prevent and
investigate evasion; and
(F) identification of any recommended policy
changes of other Federal agencies or legislative
changes to improve the effectiveness of the U.S.
Customs and Border Protection Agency to prevent and
investigate evasion.
SEC. 323. ADDRESSING CIRCUMVENTION BY NEW SHIPPERS.
Section 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C.
1675(a)(2)(B)) is amended--
(1) by striking clause (iii);
(2) by redesignating clause (iv) as clause (iii); and
(3) inserting after clause (iii), as redesignated by
paragraph (2) of this section, the following:
``(iv) Any weighted average dumping margin
or individual countervailing duty rate
determined for an exporter or producer in a
review conducted under clause (i) shall be
based solely on the bona fide United States
sales of an exporter or producer, as the case
may be, made during the period covered by the
review. In determining whether the United
States sales of an exporter or producer made
during the period covered by the review were
bona fide, the administering authority shall
consider, depending on the circumstances
surrounding such sales--
``(I) the prices of such sales;
``(II) whether such sales were made
in commercial quantities;
``(III) the timing of such sales;
``(IV) the expenses arising from
such sales;
``(V) whether the subject
merchandise involved in such sales were
resold in the United States at a
profit;
``(VI) whether such sales were made
on an arms-length basis; and
``(VII) any other factor the
administering authority determines to
be relevant as to whether such sales
are, or are not, likely to be typical
of those the exporter or producer will
make after completion of the review.''.
TITLE IV--MISCELLANEOUS PROVISIONS
SEC. 401. PENALTIES FOR CUSTOMS BROKERS.
(a) In General.--Section 641(d)(1) of the Tariff Act of 1930 (19
U.S.C. 1641(d)(1)) is amended--
(1) in subparagraph (E), by striking ``; or'' and inserting
a semicolon;
(2) in subparagraph (F), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(G) has been convicted of committing or
conspiring to commit an act of terrorism described in
section 2332b of title 18, United States Code.''.
(b) Technical Amendments.--Section 641 of the Tariff Act of 1930
(19 U.S.C. 1641) is amended--
(1) in subsection (g)(2)(B), by striking ``Secretary's
notice'' and inserting ``notice under subparagraph (A)''; and
(2) by striking ``Customs Service'' each place it appears
and inserting ``U.S. Customs and Border Protection Agency''.
SEC. 402. DE MINIMIS VALUE AND ENTRY UNDER REGULATIONS.
(a) De Minimis Value.--Section 321(a)(2)(C) of the Tariff Act of
1930 (19 U.S.C. 1321(a)(2)(C)) is amended by striking ``$200'' and
inserting ``$800''.
(b) Entry Under Regulations.--Section 498 of the Tariff Act of 1930
(19 U.S.C. 1498) is amended--
(1) in subsection (a), by striking paragraph (1) and
inserting the following:
``(1) Merchandise, when different commercial facilitation
and risk considerations that may vary for different classes or
kinds of merchandise or different classes of transactions may
dictate;'';
(2) by redesignating subsection (b) as subsection (c); and
(3) by inserting after subsection (a) the following:
``(b) Entry of Merchandise Valued at $2,500 or Less.--The Secretary
of the Treasury shall prescribe rules and regulations for the
declaration and entry of merchandise if the aggregate value of the
shipment of merchandise does not exceed $2,500.''.
(c) Effective Date.--The amendments made by this section apply to
articles entered, or withdrawn from warehouse for consumption, on or
after the 90th day after the date of the enactment of this Act.
SEC. 403. COLLECTION AND REMITTANCE OF CERTAIN CUSTOMS USER FEES.
(a) In General.--Section 13031(d) of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(d)) is amended--
(1) in the subsection heading, by inserting ``and
Remittance'' after ``Collection'';
(2) in paragraph (3)--
(A) by inserting ``required to be collected under
such paragraph'' after ``shall remit those fees''; and
(B) by striking ``31 days after the close of the
calendar quarter in which the fees are collected'' and
inserting ``30 days after the end of the month in which
the fees are required to be collected''; and
(3) by adding at the end the following:
``(5) The refund of any fee collected under subsection
(a)(5) shall not be payable from the Customs User Fee Account.
``(6)(A) A person who collects fees under paragraph (1) or
(2) and does not remit those fees to the Secretary of the
Treasury as required by paragraph (3) shall be subject to a
penalty in accordance with the requirements of this paragraph.
``(B) The amount of such penalty shall be equal to 2 times
the amount of the fee that was required to be remitted to the
Secretary of the Treasury. The Secretary of the Treasury may
establish and impose additional penalties through rulemaking
for failure to comply with any provision of this subsection.
``(C) Any penalty collected under this paragraph shall be
used to directly reimburse each appropriation for the amount
paid out of that appropriation for the costs described in
subsection (f)(3)(A).''.
(b) Effective Date.--The amendments made by subsection (a) take
effect on the date of enactment of this Act and apply with respect to
fees that are required to be collected and remitted to the Secretary of
the Treasury under section 13031(d) of the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended by subsection (a), on or after
such date of enactment.
SEC. 404. DRAWBACK AND REFUNDS.
(a) Articles Made From Imported Merchandise.--Section 313(a) of the
Tariff Act of 1930 (19 U.S.C. 1313(a)) is amended--
(1) by striking ``under customs supervision''; and
(2) by inserting ``as calculated under subsection
(r)(4)(A),'' after ``less 1 per centum of such duties,''.
(b) Substitution for Drawback Purposes.--Section 313(b) of the
Tariff Act of 1930 (19 U.S.C. 1313(b)) is amended--
(1) by striking ``If imported'' and inserting the
following:
``(1) In general.--If imported'';
(2) by striking ``and any other merchandise (whether
imported or domestic) of the same kind and quality'' and
inserting ``and substitute merchandise'';
(3) by striking ``three years'' and inserting ``5 years'';
(4) by striking ``the receipt of such imported merchandise
by the manufacturer or producer of such articles'' and
inserting ``the date of importation of such imported
merchandise by the importer'';
(5) by striking ``under customs supervision'' each place it
appears;
(6) by inserting after ``merchandise used therein been
imported,'' the following: ``as calculated under subsection
(r)(4)(A),'';
(7) by striking the period at the end and inserting ``, as
calculated under subsection (r)(4)(A).''; and
(8) by adding at the end the following:
``(2) Requirements relating to transfer of merchandise.--
``(A) Manufacturers and producers.--Drawback may be
allowed under paragraph (1) in the amount referred to
under paragraph (1) only if the manufacturer or
producer of articles has received the imported, duty-
paid merchandise or substitute merchandise, directly or
indirectly, of imported duty-paid merchandise or
substitute merchandise.
``(B) Exporters and destroyers.--Drawback may be
allowed under paragraph (1) in the amount referred to
under paragraph (1) only if the exporter or destroyer
of articles has received the manufactured or produced
article or substitute article, directly or indirectly,
of a substitute article.
``(C) Evidence of transfer.--Transfers of
merchandise under subparagraph (A) and transfers of
articles under subparagraph (B) may be evidenced by
business records kept in the normal course of business
and no additional certificates of transfer or
manufacture shall be required.''.
(c) Merchandise Not Conforming to Sample or Specifications.--
Section 313(c) of the Tariff Act of 1930 (19 U.S.C. 1313(c)) is
amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``under the supervision of the Customs
Service'';
(B) in subparagraph (D)--
(i) by striking ``3'' and inserting ``5'';
and
(ii) by striking ``under the supervision of
the Customs Service''; and
(C) in the text immediately following subparagraph
(D), by inserting ``as calculated under subsection
(r)(4)(A),'' after ``merchandise,''; and
(2) in paragraph (2)--
(A) by striking ``under the supervision of the
Customs Service'';
(B) by striking the last sentence and inserting the
following: ``Transfers of merchandise may be evidenced
by business records kept in the normal course of
business and no additional certificates of transfer
shall be required.''.
(d) Proof of Exportation.--Section 313(i) of the Tariff Act of 1930
(19 U.S.C. 1313(i)) is amended to read as follows:
``(i) Proof of Exportation.--A person claiming drawback under this
section shall, as proof of exportation, maintain the record of
exportation entered in the automated export system of the United States
Government or, if the exporter is unable to use that system, records
kept in the normal course of business similar to the information
contained in such record of exportation.''.
(e) Unused Merchandise Drawback.--Section 313(j) of the Tariff Act
of 1930 (19 U.S.C. 1313(j)) is amended--
(1) in paragraph (1)(A)--
(A) by striking ``3-year'' and inserting ``5-
year''; and
(B) by inserting ``and before filing the drawback
claim'' after ``the date of importation''; and
(2) in paragraph (2)--
(A) in subparagraph (B)--
(i) by striking ``3-year'' and inserting
``5-year'';
(ii) by inserting ``and before filing the
drawback claim'' after ``the imported
merchandise''; and
(iii) by striking ``under customs
supervision'';
(B) in subparagraph (C)(ii)(II)--
(i) by inserting ``, directly or
indirectly,'' after ``received''; and
(ii) by inserting ``, tax, or fee'' after
``duty''; and
(C) in the text immediately following subparagraph
(C)--
(i) by inserting ``, as calculated under
subsection (r)(4),'' after ``under this
subsection''; and
(ii) by adding at the end the following:
``Merchandise shall be considered to be
received directly or indirectly from a person
who imported and paid any duty, tax, or fee due
on the imported merchandise if the recipient
received any imported merchandise, any other
merchandise (whether imported or domestic), or
any combination of imported merchandise and
such other merchandise, from the importer
through a transfer directly to the recipient,
or a transfer from the importer through one or
more intermediate transfers involving one or
more parties of any combination of imported
merchandise or such other merchandise.
Transfers of merchandise may be evidenced by
business records kept in the normal course of
business and no additional certificates of
transfer shall be required.''.
(f) Certificate of Delivery.--Section 313 of the Tariff Act of 1930
(19 U.S.C. 1313) is amended by striking subsection (k).
(g) Regulations.--Section 313(l) of the Tariff Act of 1930 (19
U.S.C. 1313(l)) is amended by striking ``and the designation of the
person to whom any refund or payment of drawback shall be made'' and
inserting ``and the authority to require that all drawback entries be
filed electronically''.
(h) Substitution of Finished Petroleum Derivatives.--Section 313(p)
of the Tariff Act of 1930 (19 U.S.C. 1313(p)) is amended--
(1) by striking ``Harmonized Tariff Schedule of the United
States'' each place it appears and inserting ``HTS''; and
(2) the text immediately following paragraph (3)(A)(ii), by
striking ``Commissioner of Customs'' and inserting
``Commissioner of U.S. Customs and Border Protection''.
(i) Packaging Material.--Section 313(q)(3) of the Tariff Act of
1930 (19 U.S.C. 1313(q)(3)) is amended by striking ``they contain'' and
inserting ``it contains''.
(j) Filing and Calculation of Drawback Claims.--Section 313(r) of
the Tariff Act of 1930 (19 U.S.C. 1313(r)) is amended--
(1) in the heading, by inserting ``and Calculation of''
after ``Filing'';
(2) in paragraph (1)--
(A) by striking the first sentence and inserting
the following: ``A drawback entry shall be filed or
applied for, as applicable, not later than 5 years
after the date on which merchandise on which drawback
is claimed was imported. If merchandise summarized on
an entry summary line item with respect to which
drawback is claimed was imported on more than one date,
the earliest date of importation of the merchandise
contained on that entry summary line item shall be used
for purposes of this paragraph.'';
(B) in the second sentence, by striking ``3-year''
and inserting ``5-year''; and
(C) in the third sentence, by striking ``the
Customs Service'' and inserting ``U.S. Customs and
Border Protection'';
(3) in paragraph (3)(A)--
(A) in the matter preceding clause (i), by striking
``The Customs Service'' and inserting ``U.S. Customs
and Border Protection''; and
(B) in clauses (i) and (ii), by striking ``the
Customs Service'' each place it appears and inserting
``U.S. Customs and Border Protection''; and
(4) by adding at the end the following:
``(4) The amount used for purposes of determining a drawback entry
for refund filed under subsection (a), (b), or (c) shall equal the
amount determined by multiplying--
``(A) the amount determined by dividing--
``(i) the total amount of duties, taxes, and fees
on the entry summary line item under which imported
merchandise is reported; by
``(ii) the number of units of imported merchandise;
and
``(B) the number of units of imported merchandise claimed
for drawback.''.
(k) Drawbacks for Recovered Materials.--Section 313(x) of the
Tariff Act of 1930 (19 U.S.C. 1313(x)) is amended by striking ``and
(c)'' and inserting ``(c), and (j)''.
(l) Definitions.--Section 313 of the Tariff Act of 1930 (19 U.S.C.
1313) is amended by adding at the end the following:
``(z) Definitions.--In this section:
``(1) Directly.--The term `directly' means a transfer of
merchandise or an article from 1 person to another person
without any intermediate transfer.
``(2) HTS.--The term `HTS' means the Harmonized Tariff
Schedule of the United States.
``(3) Indirectly.--The term `indirectly' means a transfer
of merchandise or an article from 1 person to another person
with 1 or more intermediate transfers.
``(4) Schedule b.--The term `Schedule B' means the
Department of Commerce Schedule B, Statistical Classification
of Domestic and Foreign Commodities Exported from the United
States.
``(5) Substitute merchandise; substitute article.--The
terms `substitute merchandise' and `substitute article' mean--
``(A) a good that is classifiable within the same
8-digit HTS subheading number as another good (the
Schedule B number may be used to demonstrate this fact)
whether imported or domestic; or
``(B) a good demonstrated to have been classifiable
within the same 8-digit HTS subheading number as
another good at some point during the 5-year period
beginning on the date of importation of the designated
imported merchandise (the Schedule B number may be used
to demonstrate this fact) whether imported or
domestic.''.
(m) Effective Date.--
(1) In general.--The amendments made by this section
shall--
(A) take effect on the date of the enactment of
this Act; and
(B) except as provided in paragraph (2), apply to
drawback claims filed with respect to merchandise that
enters the United States on or after such date of
enactment.
(2) Transition rule.--During the 2-year period beginning on
the date described in paragraph (1)(A), a person may elect to
file a claim for drawback under--
(A) section 313 of the Tariff Act of 1930, as
amended by this section; or
(B) section 313 of the Tariff Act of 1930, as in
effect on the day before the date described in
paragraph (1)(A).
(n) Government Accountability Office Report.--Not later than one
year after the date of enactment of this Act, the Comptroller General
of the United States shall submit to the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of the Senate
a report that contains--
(1) a description of the implementation of section 313 of
the Tariff Act of 1930 (19 U.S.C. 1313), as amended by this
section;
(2) an evaluation of the modernization of drawback and
refunds under subsection (b) of section 313 of such Act
(relating to substitution for drawback purposes), as amended by
this section;
(3) an evaluation of extending the modernization of
drawback and refunds to subjection (j) of section 313 of such
Act (relating to unused merchandise drawback), as amended by
this section; and
(4) recommendations for the processing of drawback claims
under the Automated Commercial Environment computer system
authorized under section 13031(f)(5) of the Consolidated
Omnibus Budget and Reconciliation Act of 1985 (19 U.S.C.
58c(f)(5)).
SEC. 405. AMENDMENTS TO CHAPTER 98 OF THE HARMONIZED TARIFF SCHEDULE OF
THE UNITED STATES.
(a) Articles Exported and Returned, Advanced or Improved Abroad.--
(1) In general.--U.S. Note 3 to subchapter II of chapter 98
of the Harmonized Tariff Schedule of the United States is
amended by adding at the end the following:
``(f)(i) For purposes of subheadings 9802.00.40 and
9802.00.50, fungible goods exported from the United States for
the purposes described in such subheadings--
``(A) may be commingled; and
``(B) the origin, value, and classification of such
goods may be accounted for using an inventory
management method.
``(ii) If a person chooses to use an inventory management
method under this paragraph with respect to fungible goods, the
person shall use the same inventory management method for any
other goods with respect to which the person claims fungibility
under this paragraph.
``(iii) For the purposes of this paragraph--
``(A) the term `fungible good' means any good that
is commercially interchangeable with another good and
that has properties that are essentially identical to
the properties of another good; and
``(B) the term `inventory management method' means
any method for managing inventory that is based on
generally accepted accounting principles.''.
(2) Effective date.--The amendment made by this subsection
applies to articles classifiable under subheading 9802.00.40 or
9802.00.50 of the Harmonized Tariff Schedule of the United
States that are entered, or withdrawn from warehouse for
consumption, on or after the date that is 60 days after the
date of the enactment of this Act.
(b) Modification of Provisions Relating to Returned Property.--
(1) In general.--The article description for heading
9801.00.10 of the Harmonized Tariff Schedule of the United
States is amended by inserting after ``exported'' the
following: ``, or any other products when returned within 3
years after having been exported''.
(2) Effective date.--The amendment made by paragraph (1)
applies to goods entered, or withdrawn from warehouse for
consumption, on or after the 15th day after the date of the
enactment of this Act.
(c) Duty Free Treatment for Certain United States Government
Property Returned to the United States.--
(1) In general.--Subchapter I of chapter 98 of the
Harmonized Tariff Schedule of the United States is amended by
inserting in numerical sequence the following new heading:
`` 9801.00.11 United States Free ............... ............... ............... ''.
Government
property,
returned to the
United States
without having
been advanced in
value or improved
in condition by
any means while
abroad, entered
by the United
States Government
or a contractor
to the United
States
Government, and
certified by the
importer as
United States
Government
property.........
(2) Effective date.--The amendment made by paragraph (1)
applies to goods entered, or withdrawn from warehouse for
consumption, on or after the 15th day after the date of the
enactment of this Act.
TITLE V--OTHER TRADE AGENCIES
SEC. 501. UNITED STATES INTERNATIONAL TRADE COMMISSION.
(a) Fiscal Year 2013.--There are authorized to be appropriated for
the salaries and expenses of the United States International Trade
Commission not to exceed $82,800,000 for fiscal year 2013.
(b) Fiscal Years 2014 and 2015.--Section 330(e)(2)(A) of the Tariff
Act of 1930 (19 U.S.C. 1330(e)(2)(A)) is amended by striking clauses
(i) and (ii) and inserting the following:
``(i) $86,800,000 for fiscal year 2014.
``(ii) $88,900,000 for fiscal year 2015.''.
SEC. 502. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.
(a) Fiscal Year 2013.--There are authorized to be appropriated for
the salaries and expenses of the Office of the United States Trade
Representative not to exceed $51,300,000 for fiscal year 2013.
(b) Annual Report on Trade Agreements Program and National Trade
Policy Agenda.--Section 163(a) of the Trade Act of 1974 (19 U.S.C.
2213(a)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting a semicolon; and
(C) by adding at the end the following:
``(C) the operation of all United States Trade
Representative-led interagency programs during the
preceding year and for the year in which the report is
submitted.''; and
(2) by adding at the end the following:
``(4) The report shall include, with respect to the matters
referred to in paragraph (1)(C), information regarding--
``(A) the objectives and priorities of all United
States Trade Representative-led interagency programs
for the year, and the reasons therefor;
``(B) the actions proposed, or anticipated, to be
undertaken during the year to achieve such objectives
and priorities, including actions authorized under the
trade laws and negotiations with foreign countries;
``(C) the role of each Federal agency participating
in the interagency program in achieving such objectives
and priorities and activities of each agency with
respect to their participation in the program;
``(D) the United States Trade Representative's
coordination of each participating Federal agency to
more effectively achieve such objectives and
priorities;
``(E) any proposed legislation necessary or
appropriate to achieve any of such objectives or
priorities; and
``(F) the progress that was made during the
preceding year in achieving such objectives and
priorities and coordination activities included in the
statement provided for such year under this
paragraph.''.
(c) Resource Management and Staffing Plans.--
(1) Annual plan.--
(A) In general.--The United States Trade
Representative shall on an annual basis develop a
plan--
(i) to match available resources of the
Office of the United States Trade
Representative to projected workload and
provide a detailed analysis of how the funds
allocated from the prior fiscal year to date
have been spent;
(ii) to identify existing staff of the
Office and new staff that will be necessary to
support the trade negotiation and enforcement
functions and powers of the Office (including
those of the Trade Policy Staff Committee) as
described in section 141 of the Trade Act of
1974 (19 U.S.C. 2171) and section 301 of the
Trade Act of 1974 (19 U.S.C. 2411);
(iii) to identify existing staff of the
Office and staff of other Federal agencies who
will be required to be detailed to support
United States Trade Representative-led
interagency programs, including any associated
expenses; and
(iv) to provide a detailed analysis of the
budgetary requirements of United States Trade
Representative-led interagency programs for the
next fiscal year and provide a detailed
analysis of how the funds allocated from the
prior fiscal year to date have been spent.
(B) Report.--The United States Trade Representative
shall submit to the Committee on Ways and Means and the
Committee on Appropriations of the House of
Representatives and the Committee on Finance and the
Committee on Appropriations of the Senate a report that
contains the plan required under subparagraph (A). The
report required under this subparagraph shall be
submitted in conjunction with the annual budget of the
United States Government required to be submitted to
Congress under section 1105 of title 31, United States
Code.
(2) Quadrennial plan.--
(A) In general.--Pursuant to the goals and
objectives of the strategic plan of the Office of the
United States Trade Representative as required under
section 306 of title 5, United States Code, the United
States Trade Representative shall every 4 years develop
a plan--
(i) to analyze internal quality controls
and record management of the Office;
(ii) to identify existing staff of the
Office and new staff that will be necessary to
support the trade negotiation and enforcement
functions and powers of the Office (including
those of the Trade Policy Staff Committee) as
described in section 141 of the Trade Act of
1974 (19 U.S.C. 2171) and section 301 of the
Trade Act of 1974 (19 U.S.C. 2411);
(iii) to identify existing staff of the
Office and staff in other Federal agencies who
will be required to be detailed to support
United States Trade Representative-led
interagency programs, including any associated
expenses;
(iv) to provide an outline of budget
justifications, including salaries and expenses
as well as non-personnel administrative
expenses, for the fiscal years required under
the strategic plan; and
(v) to provide an outline of budget
justifications, including salaries and expenses
as well as non-personnel administrative
expenses, for United States Trade
Representative-led interagency programs for the
fiscal years required under the strategic plan.
(B) Report.--
(i) In general.--The United States Trade
Representative shall submit to the Committee on
Ways and Means and the Committee on
Appropriations of the House of Representatives
and the Committee on Finance and the Committee
on Appropriations of the Senate a report that
contains the plan required under subparagraph
(A). Except as provided in clause (ii), the
report required under this clause shall be
submitted in conjunction with the strategic
plan of the Office as required under section
306 of title 5, United States Code.
(ii) Exception.--The United States Trade
Representative shall submit to the
congressional committees specified in clause
(i) an initial report that contains the plan
required under subparagraph (A) not later than
February 1, 2013.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committees on Homeland Security, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Homeland Security, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Homeland Security, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Border and Maritime Security.
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