[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 700 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 700

   To modernize and simplify the administration of the customs laws.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 27, 1993

Mr. Gibbons (for himself and Mr. Crane) introduced the following bill; 
         which was referred to the Committee on Ways and Means

                              June 8, 1993

   Additional sponsors: Mr. Kopetski, Mr. Jefferson, Ms. Pelosi, Mr. 
                         Lantos, and Mr. Torres

_______________________________________________________________________

                                 A BILL


 
   To modernize and simplify the administration of the customs laws.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Customs 
Modernization and Informed Compliance Act''.
    (b) Reference.--Whenever in title I, II, or III of this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a part, section, subsection, or other provision, the reference 
shall be considered to be made a part, section, subsection, or other 
provision of the Tariff Act of 1930 (19 U.S.C. 1202 et seq.).
    (c) Table of Contents.--

Sec. 1. Short title; reference; table of contents.
              TITLE I--IMPROVEMENTS IN CUSTOMS ENFORCEMENT

Sec. 101. Penalties for violations of arrival, reporting, entry, and 
                            clearance requirements.
Sec. 102. Failure to declare.
Sec. 103. Customs testing laboratories; detention of merchandise.
Sec. 104. Recordkeeping.
Sec. 105. Examination of books and witnesses.
Sec. 106. Judicial enforcement.
Sec. 107. Review of protests.
Sec. 108. Repeal of provision relating to reliquidation on account of 
                            fraud.
Sec. 109. Penalties relating to manifests.
Sec. 110. Unlawful unlading or transshipment.
Sec. 111. Penalties for fraud, gross negligence, and negligence; prior 
                            disclosure.
Sec. 112. Penalties for false drawback claims.
Sec. 113. Interpretive rulings and decisions; public information.
Sec. 114. Seizure authority.
             TITLE II--NATIONAL CUSTOMS AUTOMATION PROGRAM

Sec. 201. National Customs Automation Program.
Sec. 202. Drawback and refunds.
Sec. 203. Effective date of rates of duty.
Sec. 204. Definitions.
Sec. 205. Manifests.
Sec. 206. Invoice contents.
Sec. 207. Entry of merchandise.
Sec. 208. Appraisement and other procedures.
Sec. 209. Voluntary reliquidations.
Sec. 210. Appraisement regulations.
Sec. 211. Limitation on liquidation.
Sec. 212. Payment of duties and fees.
Sec. 213. Abandonment and damage.
Sec. 214. Customs officer's immunity.
Sec. 215. Protests.
Sec. 216. Refunds and errors.
Sec. 217. Bonds and other security.
Sec. 218. Customhouse brokers.
Sec. 219. Conforming amendments.
     TITLE III--MISCELLANEOUS AMENDMENTS TO THE TARIFF ACT OF 1930

Sec. 301. Report of arrival.
Sec. 302. Entry of vessels.
Sec. 303. Unlawful return of foreign vessel papers.
Sec. 304. Vessels not required to enter.
Sec. 305. Unlading.
Sec. 306. Declarations.
Sec. 307. General orders.
Sec. 308. Unclaimed merchandise.
Sec. 309. Destruction of merchandise.
Sec. 310. Proceeds of sale.
Sec. 311. Entry under regulations.
Sec. 312. American trademarks.
Sec. 313. Seizure.
Sec. 314. Customs Forfeiture Fund.
Sec. 315. Limitation on actions.
Sec. 316. Collection of fees on behalf of other agencies.
Sec. 317. Authority to settle claims.
Sec. 318. Use of private collection agencies.
  TITLE IV--MISCELLANEOUS PROVISIONS AND CONSEQUENTIAL AND CONFORMING 
                        AMENDMENTS TO OTHER LAWS

Sec. 401. Amendments to the Harmonized Tariff Schedule.
Sec. 402. Amendment to the Internal Revenue Code of 1986.
Sec. 403. Amendments to title 28, United States Code.
Sec. 404. Amendments to the Revised Statutes of the United States.
Sec. 405. Amendments to title 18, United States Code.
Sec. 406. Amendment to the Act to Prevent Pollution from Ships.
Sec. 407. Amendments to the Act of November 6, 1966.
Sec. 408. Repeal of obsolete provisions of law.
Sec. 409. Reports to Congress.
Sec. 410. Applicability of amendments to entry or withdrawal of goods.

              TITLE I--IMPROVEMENTS IN CUSTOMS ENFORCEMENT

SEC. 101. PENALTIES FOR VIOLATIONS OF ARRIVAL, REPORTING, ENTRY, AND 
              CLEARANCE REQUIREMENTS.

    Section 436 (19 U.S.C. 1436) is amended--
            (1) by amending subsection (a)--
                    (A) by striking out ``433'' in paragraph (1) and 
                inserting ``431, 433, or 434 of this Act or section 
                4197 of the Revised Statutes of the United States (46 
                U.S.C. App. 91)'',
                    (B) by amending paragraph (2) to read as follows:
            ``(2) to present or transmit, electronically or otherwise, 
        any forged, altered, or false document, paper information, data 
        or manifest to the Customs Service under section 431(e), 
        433(d), or 434 of this Act or section 4197 of the Revised 
        Statutes of the United States (46 U.S.C. App. 91) without 
        revealing the facts; or'', and
                    (C) by amending paragraph (3) to read as follows:
            ``(3) to fail to make entry or to obtain clearance as 
        required by section 434 or 644 of this Act, section 4197 of the 
        Revised Statutes of the United States (46 U.S.C. App. 91), or 
        section 1109 of the Federal Aviation Act of 1958 (49 U.S.C. 
        App. 1509); or''; and
            (2) by striking out ``and entry'' in the section heading 
        and inserting ``entry, and clearance''.

SEC. 102. FAILURE TO DECLARE.

    Section 497(a) (19 U.S.C. 1497(a)) is amended--
            (1) by inserting ``or transmitted'' after ``made'' in 
        paragraph (1)(A); and
            (2) by amending paragraph (2)(A) to read as follows:
                    ``(A) if the article is a controlled substance, 
                either $500 or an amount equal to 1,000 percent of the 
                value of the article, whichever amount is greater; 
                and''.

SEC. 103. CUSTOMS TESTING LABORATORIES; DETENTION OF MERCHANDISE.

    (a) Amendment.--Section 499 (19 U.S.C. 1499) is amended to read as 
follows:

``SEC. 499. EXAMINATION OF MERCHANDISE.

    ``(a) Entry Examination.--
            ``(1) In general.--Imported merchandise that is required by 
        law or regulation to be inspected, examined, or appraised shall 
        not be delivered from customs custody (except under such bond 
        or other security as may be prescribed by the Secretary to 
        assure compliance with all applicable laws, regulations, and 
        instructions which the Secretary or the Customs Service is 
        authorized to enforce) until the merchandise has been 
        inspected, appraised, or examined and is reported by the 
        Customs Service to have been truly and correctly invoiced and 
        found to comply with the requirements of the laws of the United 
        States.
            ``(2) Examination.--The Customs Service--
                    ``(A) shall designate the packages or quantities of 
                merchandise covered by any invoice or entry which are 
                to be opened and examined for the purpose of 
                appraisement or otherwise;
                    ``(B) shall order such packages or quantities to be 
                sent to such place as is designated by the Secretary by 
                regulation for such purpose;
                    ``(C) may require such additional packages or 
                quantities as the Secretary considers necessary for 
                such purpose; and
                    ``(D) shall inspect a sufficient number of 
                shipments, and shall examine a sufficient number of 
                entries, to ensure compliance with the laws enforced by 
                the Customs Service.
            ``(3) Unspecified articles.--If any package contains any 
        article not specified in the invoice or entry and, in the 
        opinion of the Customs Service, the article was omitted from 
        the invoice or entry--
                    ``(A) with fraudulent intent on the part of the 
                seller, shipper, owner, agent, importer of record, or 
                entry filer, the contents of the entire package in 
                which such article is found shall be subject to 
                seizure; or
                    ``(B) without fraudulent intent, the value of the 
                article shall be added to the entry and the duties, 
                fees, and taxes thereon paid accordingly.
            ``(4) Deficiency.--If a deficiency is found in quantity, 
        weight, or measure in the examination of any package, the 
        person finding the deficiency shall make a report thereof to 
        the Customs Service. The Customs Service shall make allowance 
        for the deficiency in the liquidation of duties.
            ``(5) Information required for release.--If an examination 
        is conducted, any information required for release shall be 
        provided, either electronically or in paper form, to the 
        Customs Service at the port of examination. The absence of such 
        information does not limit the authority of the Customs Service 
        to conduct an examination.
    ``(b) Testing Laboratories.--
            ``(1) Accreditation of private testing laboratories.--The 
        Customs Service shall establish and implement a procedure, 
        under regulations promulgated by the Secretary, for accrediting 
        private laboratories within the United States which may be used 
        to perform tests (that would otherwise be performed by Customs 
        Service laboratories) to establish the characteristics, 
        quantities, or composition of imported merchandise. Such 
        regulations--
                    ``(A) shall establish the conditions required for 
                the laboratories to receive and maintain accreditation 
                for purposes of this subsection;
                    ``(B) shall establish the conditions regarding the 
                suspension and revocation of accreditation, which may 
                include the imposition of a monetary penalty not to 
                exceed $100,000 and such penalty is in addition to the 
                recovery, from a gauger or laboratory accredited under 
                paragraph (1), of any loss of revenue that may have 
                occurred, but the Customs Service--
                            ``(i) may seek to recover lost revenue only 
                        in cases where the gauger or laboratory 
                        intentionally falsified the analysis or gauging 
                        report in collusion with the importer; and
                            ``(ii) shall neither assess penalties nor 
                        seek to recover lost revenue because of a good 
                        faith difference of professional opinion; and
                    ``(C) may provide for the imposition of a 
                reasonable charge for accreditation and periodic 
                reaccreditation.
        The collection of any charge for accreditation and 
        reaccreditation under this section is not prohibited by section 
        13031(e)(6) of the Consolidated Omnibus Budget Reconciliation 
        Act of 1985 (19 U.S.C. 58c(e)(6)).
            ``(2) Appeal of adverse accreditation decisions.--A 
        laboratory applying for accreditation, or that is accredited, 
        under this section may contest any decision or order of the 
        Customs Service denying, suspending, or revoking accreditation, 
        or imposing a monetary penalty, by commencing an action in 
        accordance with chapter 169 of title 28, United States Code, in 
        the Court of International Trade within 60 days after issuance 
        of the decision or order.
            ``(3) Testing by accredited laboratories.--When requested 
        by an importer of record of merchandise, the Customs Service 
        shall authorize the release to the importer of a representative 
        sample of the merchandise for testing, at the expense of the 
        importer, by a laboratory accredited under paragraph (1). The 
        testing results from a laboratory accredited under paragraph 
        (1) that are submitted by an importer of record with respect to 
        merchandise in an entry shall, in the absence of testing 
        results obtained from a Customs Service laboratory, be accepted 
        by the Customs Service if the importer of record certifies that 
        the sample tested was taken from the merchandise in the entry. 
        Nothing in this subsection shall be construed to limit in any 
        way or preclude the authority of the Customs Service to test or 
        analyze any sample or merchandise independently.
            ``(4) Availability of testing procedure, methodologies, and 
        information.--Testing procedures and methodologies used by the 
        Customs Service, and information resulting from any testing 
        conducted by the Customs Service, shall be made available as 
        follows:
                    ``(A) Testing procedures and methodologies shall be 
                made available upon request to any person unless the 
                procedures or methodologies are--
                            ``(i) proprietary to the holder of a 
                        copyright or patent related to such procedures 
                        or methodologies, or
                            ``(ii) developed by the Customs Service for 
                        enforcement purposes.
                    ``(B) Information resulting from testing shall be 
                made available upon request to the importer of record 
                and any agent thereof unless the information--
                            ``(i) is proprietary to the holder of a 
                        copyright or patent related to the procedures 
                        or methodologies; or
                            ``(ii) reveals information developed by the 
                        Customs Service for enforcement purposes.
            ``(5) Miscellaneous provisions.--For purposes of this 
        subsection--
                    ``(A) any reference to a private laboratory 
                includes a reference to a private gauger; and
                    ``(B) accreditation of private laboratories extends 
                only to the performance of functions by such 
                laboratories that are within the scope of those 
                responsibilities for determinations of the elements 
                relating to admissibility, quantity, composition, or 
                characteristics of imported merchandise that are vested 
                in, or delegated to, the Customs Service.
    ``(c) Detentions.--Except in the case of merchandise with respect 
to which the determination of admissibility is vested in an agency 
other than the Customs Service, the following apply:
            ``(1) In general.--Within the 5-day period (excluding 
        weekends and holidays) following the date on which merchandise 
        is presented for customs examination, the Customs Service shall 
        decide whether to release or detain the merchandise. 
        Merchandise which is not released within such 5-day period 
        shall be considered to be detained merchandise.
            ``(2) Notice of detention.--The Customs Service shall issue 
        a notice to the importer or other party having an interest in 
        detained merchandise no later than 5 days, excluding weekends 
        and holidays, after the decision to detain the merchandise is 
        made. The notice shall advise the importer or other interested 
        party of--
                    ``(A) the initiation of the detention;
                    ``(B) the specific reason for the detention;
                    ``(C) the anticipated length of the detention;
                    ``(D) the nature of the tests or inquiries to be 
                conducted; and
                    ``(E) the nature of any information which, if 
                supplied to the Customs Service, may accelerate the 
                disposition of the detention.
            ``(3) Testing results.--Upon request by the importer or 
        other party having an interest in detained merchandise, the 
        Customs Service shall provide the party with copies of the 
        results of any testing conducted by the Customs Service on the 
        merchandise and a description of the testing procedures and 
        methodologies (unless such procedures or methodologies are 
        proprietary to the holder of a copyright or patent or were 
        developed by the Customs Service for enforcement purposes). The 
        results and test description shall be in sufficient detail to 
        permit the duplication and analysis of the testing and the 
        results.
            ``(4) Seizure and forfeiture.--If otherwise provided by 
        law, detained merchandise may be seized and forfeited.
            ``(5) Effect of failure to make determination.--
                    ``(A) The failure by the Customs Service to make a 
                final determination with respect to the admissibility 
                of detained merchandise within 30 days after the 
                merchandise has been presented for customs examination, 
                or such longer period if specifically authorized by 
                law, shall be treated as a decision of the Customs 
                Service to exclude the merchandise for purposes of 
                section 514(a)(4).
                    ``(B) For purposes of section 1581 of title 28, 
                United States Code, a protest against the decision to 
                exclude the merchandise which has not been allowed or 
                denied in whole or in part before the 30th day after 
                the day on which the protest was filed shall be treated 
                as having been denied on such 30th day.
                    ``(C) Notwithstanding section 2639 of title 28, 
                United States Code, once an action respecting a 
                detention is commenced, unless the Customs Service 
                establishes by a preponderance of the evidence that an 
                admissibility decision has not been reached for good 
                cause, the court shall grant the appropriate relief 
                which may include, but is not limited to, an order to 
                cancel the detention and release the merchandise.''.
    (b) Existing Laboratories.--Accreditation under section 499(b) of 
the Tariff Act of 1930 (as added by subsection (a)) is not required for 
any private laboratory (including any gauger) that was accredited or 
approved by the Customs Service as of the day before the date of the 
enactment of this Act; but any such laboratory is subject to 
reaccreditation under the provisions of such section and the 
regulations promulgated thereunder.

SEC. 104. RECORDKEEPING.

    Section 508 (19 U.S.C. 1508) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Requirements.--Any--
            ``(1) owner, importer, consignee, importer of record, entry 
        filer, or other party who--
                    ``(A) imports, files a drawback claim, or 
                transports or stores merchandise carried or held under 
                bond, or
                    ``(B) knowingly causes the importation or 
                transportation or storage of merchandise carried or 
                held under bond into or from the customs territory of 
                the United States;
            ``(2) agent of any party described in paragraph (1); or
            ``(3) person whose activities require the filing of a 
        declaration or entry, or both;
shall make, keep, and render for examination and inspection such 
records (including, but not limited to, statements, declarations, 
documents and electronically generated or machine readable data) 
which--
            ``(A) pertain to any such activity, or to the information 
        contained in the documents, records or electronically generated 
        or machine readable data required by this Act in connection 
        with such activity; and
            ``(B) are normally kept in the ordinary course of 
        business.''; and
            (2) by amending subsection (c) to read as follows:
    ``(c) Period of Time.--The records required by subsections (a) and 
(b) shall be kept for such period of time, not to exceed 5 years from 
the date of entry or exportation, as appropriate, as the Secretary 
shall prescribe; except that records for any drawback claim shall be 
kept until the 3rd anniversary of the date of payment of the claim.''.

SEC. 105. EXAMINATION OF BOOKS AND WITNESSES.

    Section 509 (19 U.S.C. 1509) is amended as follows:
            (1) Subsection (a) is amended--
                    (A) by striking out ``and taxes'' wherever it 
                appears and inserting ``, fees and taxes'';
                    (B) by inserting ``or electronically generated or 
                machine readable data,'' after ``other document,'' in 
                paragraph (1);
                    (C) by striking out the semicolon at the end of 
                paragraph (1) and inserting ``, except that--
                    ``(A) if such record, statement, declaration, 
                document, or electronically stored or transmitted 
                information or data is required by law or regulation 
                for the entry of the merchandise (whether or not the 
                Customs Service required its presentation at the time 
                of entry) it shall be provided to the Customs Service 
                within a reasonable time after demand for its 
                production is made, taking into consideration the 
                number, type, and age of the item demanded; and
                    ``(B) if a person of whom demand is made under 
                subparagraph (A) fails to comply with the demand, the 
                person may be subject to penalty under subsection 
                (g);'';
                    (D) by amending that part of paragraph (2) that 
                precedes subparagraph (D) to read as follows:
            ``(2) summon, upon reasonable notice--
                    ``(A) the person who--
                            ``(i) imported, or knowingly caused to be 
                        imported, merchandise into the customs 
                        territory of the United States,
                            ``(ii) exported merchandise, or knowingly 
                        caused merchandise to be exported, to Canada,
                            ``(iii) transported or stored merchandise 
                        that was or is carried or held under customs 
                        bond, or knowingly caused such transportation 
                        or storage, or
                            ``(iv) filed a declaration, entry, or 
                        drawback claim with the Customs Service;
                    ``(B) any officer, employee, or agent of any person 
                described in subparagraph (A);
                    ``(C) any person having possession, custody or care 
                of records (including electronically generated or 
                machine readable data) relating to the importation or 
                other activity described in subparagraph (A); or''; and
                    (E) by striking out the comma at the end of 
                subparagraph (D) and inserting a semicolon.
            (2) Subsections (b) and (c) are redesignated as subsections 
        (c) and (d), respectively.
            (3) The following new subsection is inserted after 
        subsection (a):
    ``(b) Regulatory Audit Procedures.--
            ``(1) In conducting a regulatory audit under this section 
        (which does not include a quantity verification for a customs 
        bonded warehouse or general purpose foreign trade zone), the 
        Customs Service auditor shall provide the person being audited, 
        in advance of the audit, with a reasonable estimate of the time 
        to be required for the audit. If in the course of an audit it 
        becomes apparent that additional time will be required, the 
        Customs Service auditor shall immediately provide a further 
        estimate of such additional time.
            ``(2) Before commencing an audit, the Customs Service 
        auditor shall inform the party to be audited of his right to an 
        entry conference at which time the purpose will be explained 
        and an estimated termination date set. Upon completion of on-
        site audit activities, the Customs Service auditor shall 
        schedule a closing conference to explain the preliminary 
        results of the audit.
            ``(3) Except as provided in paragraph (5), if the estimated 
        or actual termination date for an audit passes without the 
        Customs Service auditor providing a closing conference to 
        explain the results of the audit, the person being audited may 
        petition in writing for such a conference to the appropriate 
        regional commissioner, who, upon receipt of such a request, 
        shall provide for such a conference to be held within 15 days 
        after the date of receipt.
            ``(4) Except as provided in paragraph (5), the Customs 
        Service auditor shall complete the formal written audit report 
        within 90 days following the closing conference unless the 
        appropriate regional commissioner provides written notice to 
        the person being audited of the reason for any delay and the 
        anticipated completion date. After application of any exemption 
        contained in section 552 of title 5, United States Code, a copy 
        of the formal written audit report shall be sent to the person 
        audited no later than 30 days following completion of the 
        report.
            ``(5) Paragraphs (3) and (4) shall not apply after the 
        Customs Service commences a formal investigation with respect 
        to the issue involved.''.
            (4) Subsection (d) (as redesignated by paragraph (2)) is 
        amended--
                    (A) by striking out ``or documents'' in paragraph 
                (1)(A) and inserting ``documents, or electronically 
                generated or machine readable data'';
                    (B) by inserting ``, unless such customhouse broker 
                is the importer of record on an entry'' after 
                ``broker'' in paragraph (1)(C)(i);
                    (C) by striking out ``import'' in each of 
                paragraphs (2)(B) and (4)(B);
                    (D) by inserting ``described in section 508'' after 
                ``transactions'' in each of paragraphs (2)(B) and 
                (4)(B); and
                    (E) by inserting ``, fees,'' after ``duties'' in 
                paragraph (4)(A).
            (5) The following new subsections are added at the end 
        thereof:
    ``(e) List of Records and Information.--The Customs Service shall 
identify and publish a list of the records or entry information that is 
required to be maintained and produced under subsection (a)(1)(A).
    ``(f) Recordkeeping Compliance Program.--
            ``(1) In general.--After consultation with the importing 
        community, the Customs Service shall by regulation establish a 
        recordkeeping compliance program which the parties listed in 
        section 508(a) may participate in after being certified by the 
        Customs Service under paragraph (2). Participation in the 
        recordkeeping compliance program by recordkeepers is voluntary.
            ``(2) Certification.--A recordkeeper may be certified as a 
        participant in the recordkeeping compliance program after 
        meeting the general recordkeeping requirements established 
        under the program or after negotiating an alternative program 
        suited to the needs of the recordkeeper and the Customs 
        Service. Certification requirements shall take into account the 
        size and nature of the importing business and the volume of 
        imports. In order to be certified, the recordkeeper must be 
        able to demonstrate that it--
                    ``(A) understands the legal requirements for 
                recordkeeping, including the nature of the records 
                required to be maintained and produced and the time 
                periods involved;
                    ``(B) has in place procedures to explain the 
                recordkeeping requirements to those employees who are 
                involved in the preparation, maintenance, and 
                production of required records;
                    ``(C) has in place procedures regarding the 
                preparation and maintenance of required records, and 
                the production of such records to the Customs Service;
                    ``(D) has designated a dependable individual or 
                individuals to be responsible for recordkeeping 
                compliance under the program and whose duties include 
                maintaining familiarity with the recordkeeping 
                requirements of the Customs Service;
                    ``(E) has a record maintenance procedure approved 
                by the Customs Service for original records, or, if 
                approved by the Customs Service, for alternative 
                records or recordkeeping formats other than the 
                original records; and
                    ``(F) has procedures for notifying the Customs 
                Service of occurrences of variances to, and violations 
                of, the requirements of the recordkeeping compliance 
                program or the negotiated alternative programs, and for 
                taking corrective action when notified by the Customs 
                Service of violations or problems regarding such 
                program.
    ``(g) Penalties.--
            ``(1) Definition.--For purposes of this subsection, the 
        term `information' means any record, statement, declaration, 
        document, or electronically stored or transmitted information 
        or data referred to in subsection (a)(1)(A).
            ``(2) Effects of failure to comply with demand.--Except as 
        provided in paragraph (4), if a person fails to comply with a 
        lawful demand for information under subsection (a)(1)(A) the 
        following provisions apply:
                    ``(A) If the failure to comply is a result of the 
                willful failure of the person to maintain, store, or 
                retrieve the demanded information, such person shall be 
                subject to a penalty, for each release of merchandise, 
                not to exceed $100,000, or an amount equal to 75 
                percent of the appraised value of the merchandise, 
                whichever amount is less.
                    ``(B) If the failure to comply is a result of the 
                negligence of the person in maintaining, storing, or 
                retrieving the demanded information, such person shall 
                be subject to a penalty, for each release of 
                merchandise, not to exceed $10,000, or an amount equal 
                to 40 percent of the appraised value of the 
                merchandise, whichever amount is less.
                    ``(C) In addition to any penalty imposed under 
                subparagraph (A) or (B) regarding demanded information, 
                if such information related to the eligibility of 
                merchandise for a column 1 special rate of duty under 
                title I, the entry of such merchandise--
                            ``(i) if unliquidated, shall be liquidated 
                        at the applicable column 1 general rate of 
                        duty; or
                            ``(ii) if liquidated within the 2-year 
                        period preceding the date of the demand, shall 
                        be reliquidated, notwithstanding the time 
                        limitation in section 514 or 520, at the 
                        applicable column 1 general rate of duty;
                except that any liquidation or reliquidation under 
                clause (i) or (ii) shall be at the applicable column 2 
                rate of duty if the Customs Service demonstrates that 
                the merchandise should be dutiable at such rate.
            ``(3) Avoidance of penalty.--No penalty may be assessed 
        under this subsection if the person can show--
                    ``(A) that the loss of the demanded information was 
                the result of an act of God or other natural casualty 
                or disaster beyond the fault of such person or an agent 
                of the person;
                    ``(B) on the basis of other evidence satisfactory 
                to the Customs Service, that the demand was 
                substantially complied with; or
                    ``(C) the information demanded was presented to and 
                retained by the Customs Service at the time of entry or 
                submitted in response to an earlier demand.
            ``(4) Penalties not exclusive.--Any penalty imposed under 
        this subsection shall be in addition to any other penalty 
        provided by law except for--
                    ``(A) a penalty imposed under section 592 for a 
                material omission of the demanded information, or
                    ``(B) disciplinary action taken under section 641.
            ``(5) Remission or mitigation.--A penalty imposed under 
        this section may be remitted or mitigated under section 618.
            ``(6) Customs summons.--Nothing in this subsection shall 
        limit or preclude the Customs Service from issuing, or seeking 
        the enforcement of, a customs summons.
            ``(7) Alternatives to penalties.--
                    ``(A) In general.--When a recordkeeper who--
                            ``(i) has been certified as a participant 
                        in the recordkeeping compliance program under 
                        subsection (f); and
                            ``(ii) is generally in compliance with the 
                        appropriate procedures and requirements of the 
                        program;
                does not produce a demanded record or information for a 
                specific release or provide the information by 
                acceptable alternative means, the Customs Service, in 
                the absence of willfulness or repeated violations, 
                shall issue a written notice of the violation to the 
                recordkeeper in lieu of a monetary penalty. Repeated 
                violations by the recordkeeper may result in the 
                issuance of penalties and removal of certification 
                under the program until corrective action, satisfactory 
                to the Customs Service, is taken.
                    ``(B) Contents of notice.--A notice of violation 
                issued under subparagraph (A) shall--
                            ``(i) state that the recordkeeper has 
                        violated the recordkeeping requirements;
                            ``(ii) indicate the record or information 
                        which was demanded; and
                            ``(iii) warn the recordkeeper that future 
                        failures to produce demanded records or 
                        information may result in the imposition of 
                        monetary penalties.
                    ``(C) Response to notice.--Within a reasonable time 
                after receiving written notice under subparagraph (A), 
                the recordkeeper shall notify the Customs Service of 
                the steps it has taken to prevent a recurrence of the 
                violation.
                    ``(D) Regulations.--The Secretary shall promulgate 
                regulations to implement this paragraph. Such 
                regulations may specify the time periods for compliance 
                with a demand for information and provide guidelines 
                which define repeated violations for purposes of this 
                paragraph. Any penalty issued for a recordkeeping 
                violation shall take into account the degree of 
                compliance compared to the total number of 
                importations, the nature of the demanded records and 
                the recordkeeper's cooperation.''.

SEC. 106. JUDICIAL ENFORCEMENT.

    The second sentence of section 510(a) (19 U.S.C. 1510(a)) is 
amended by inserting ``and such court may assess a monetary penalty'' 
after ``as a contempt thereof''.

SEC. 107. REVIEW OF PROTESTS.

    Section 515 (19 U.S.C. 1515) is amended by inserting at the end the 
following new subsections:
    ``(c) If a protesting party believes that an application for 
further review was erroneously or improperly denied or was denied 
without authority for such action, it may file with the Commissioner of 
Customs a written request that the denial of the application for 
further review be set aside. Such request must be filed within 90 days 
after the date of the notice of the denial. The Commissioner of Customs 
may review such request and, based solely on the information before the 
Customs Service at the time the application for further review was 
denied, may set aside the denial of the application for further review 
and void the denial of protest, if appropriate. If the Commissioner of 
Customs fails to act within 30 days after the date of the request, the 
request shall be considered denied. All denials of protests are 
effective from the date of original denial for purposes of section 2636 
of title 28, United States Code. If an action is commenced in the Court 
of International Trade that arises out of a protest or an application 
for further review, all administrative action pertaining to such 
protest or application shall terminate and any administrative action 
taken subsequent to the commencement of the action is null and void.
    ``(d) If a protest is timely and properly filed, but is denied 
contrary to proper instructions, the Customs Service may on its own 
initiative, or pursuant to a written request by the protesting party 
filed with the appropriate district director within 90 days after the 
date of the protest denial, void the denial of the protest.''.

SEC. 108. REPEAL OF PROVISION RELATING TO RELIQUIDATION ON ACCOUNT OF 
              FRAUD.

    Section 521 (19 U.S.C. 1521) is repealed.

SEC. 109. PENALTIES RELATING TO MANIFESTS.

    Section 584 (19 U.S.C. 1584) is amended--
            (1) by amending subsection (a)--
                    (A) by striking out ``appropriate customs officer'' 
                wherever it appears and inserting ``Customs Service'',
                    (B) by striking out ``officer demanding the same'' 
                in paragraph (1) and inserting ``officer (whether of 
                the Customs Service or the Coast Guard) demanding the 
                same'', and
                    (C) by inserting ``(electronically or otherwise)'' 
                after ``submission'' in the last sentence of paragraph 
                (1); and
            (2) by amending subsection (b)--
                    (A) by striking out ``the appropriate customs 
                officer'', ``he'' (except in paragraph (1)(F)), and 
                ``such officer'' wherever they appear and inserting 
                ``the Customs Service'',
                    (B) by striking out ``written'' wherever it appears 
                (other than paragraph (1)(F)),
                    (C) by inserting ``or electronically transmit'' 
                after ``issue'' wherever it appears, and
                    (D) by striking out ``his intention'' in the first 
                sentence of paragraph (1) and inserting ``intent''.

SEC. 110. UNLAWFUL UNLADING OR TRANSSHIPMENT.

    Section 586 (19 U.S.C. 1586) is amended--
            (1) by inserting ``, or of a hovering vessel which has 
        received or delivered merchandise while outside the territorial 
        sea,'' after ``from a foreign port or place'' wherever it 
        appears; and
            (2) by amending subsection (f)--
                    (A) by striking out ``the appropriate customs 
                officer of the'' and ``the appropriate customs officer 
                within the'' and inserting ``the Customs Service at 
                the''; and
                    (B) by striking out ``the appropriate customs 
                officer is'' and inserting ``the Customs Service is''.

SEC. 111. PENALTIES FOR FRAUD, GROSS NEGLIGENCE, AND NEGLIGENCE; PRIOR 
              DISCLOSURE.

    Section 592 (19 U.S.C. 1592) is amended--
            (1) by inserting ``or electronically transmitted data or 
        information'' after ``document'' in subsection (a)(1)(A)(i);
            (2) by inserting ``The mere nonintentional repetition by an 
        electronic system of an initial clerical error does not 
        constitute a pattern of negligent conduct.'' at the end of 
        subsection (a)(2);
            (3) by amending subsection (b)--
                    (A) by amending the first sentence of paragraph 
                (1)(A)--
                            (i) by striking out ``the appropriate 
                        customs officer'' and inserting ``the Customs 
                        Service'',
                            (ii) by striking out ``he'' and inserting 
                        ``it'', and
                            (iii) by striking out ``his'' and inserting 
                        ``its'', and
                    (B) by amending paragraph (2)--
                            (i) by striking out ``the appropriate 
                        customs officer'' wherever it appears and 
                        inserting ``the Customs Service'',
                            (ii) by striking out ``such officer'' 
                        wherever it appears and inserting ``the Customs 
                        Service'', and
                            (iii) by striking out ``he'' wherever it 
                        appears and inserting ``it'';
            (4) by amending subsection (c)(4)--
                    (A) by striking ``time of disclosure or within 
                thirty days, or such longer period as the appropriate 
                customs officer may provide, after notice by the 
                appropriate customs officer of his'' in subparagraphs 
                (A)(i) and (B), and inserting ``time of disclosure, or 
                within 30 days (or such longer period as the Customs 
                Service may provide) after notice by the Customs 
                Service of its''; and
                    (B) by inserting after the last sentence the 
                following: ``For purposes of this section, a formal 
                investigation of a violation is considered to be 
                commenced with regard to the disclosing party and the 
                disclosed information on the date recorded in writing 
                by the Customs Service as the date on which facts and 
                circumstances were discovered or information was 
                received which caused the Customs Service to believe 
                that a possibility of a violation of subsection (a) 
                existed.''; and
            (5) by amending subsection (d)--
                    (A) by striking out ``the appropriate customs 
                officer'' and inserting ``the Customs Service'',
                    (B) by striking out ``duties'' wherever it appears 
                and inserting ``duties, taxes, or fees'', and
                    (C) by inserting ``, Taxes or Fees'' after 
                ``Duties'' in the sideheading.

SEC. 112. PENALTIES FOR FALSE DRAWBACK CLAIMS.

    (a) Amendment.--Part V of title IV is amended by inserting after 
section 593 the following new section:

``SEC. 593A. PENALTIES FOR FALSE DRAWBACK CLAIMS.

    ``(a) Prohibition.--
            ``(1) General rule.--No person, by fraud, or negligence--
                    ``(A) may seek, induce or affect, or attempt to 
                seek, induce, or affect, the payment or credit to that 
                person or others of any drawback claim by means of--
                            ``(i) any document, written or oral 
                        statement, or electronically transmitted data 
                        or information, or act which is material and 
                        false, or
                            ``(ii) any omission which is material; or
                    ``(B) may aid or abet any other person to violate 
                subparagraph (A).
            ``(2) Exception.--Clerical errors or mistakes of fact are 
        not violations of paragraph (1) unless they are part of a 
        pattern of negligent conduct. The mere nonintentional 
        repetition by an electronic system of an initial clerical error 
        does not constitute a pattern of negligent conduct.
    ``(b) Procedures.--
            ``(1) Prepenalty notice.--
                    ``(A) In general.--If the Customs Service has 
                reasonable cause to believe that there has been a 
                violation of subsection (a) and determines that further 
                proceedings are warranted, the Customs Service shall 
                issue to the person concerned a written notice of 
                intent to issue a claim for a monetary penalty. Such 
                notice shall--
                            ``(i) identify the drawback claim;
                            ``(ii) set forth the details relating to 
                        the seeking, inducing, or affecting, or the 
                        attempted seeking, inducing, or affecting, or 
                        the aiding or procuring of, the drawback claim;
                            ``(iii) specify all laws and regulations 
                        allegedly violated;
                            ``(iv) disclose all the material facts 
                        which establish the alleged violation;
                            ``(v) state whether the alleged violation 
                        occurred as a result of fraud or negligence;
                            ``(vi) state the estimated actual or 
                        potential loss of revenue due to the drawback 
                        claim, and, taking into account all 
                        circumstances, the amount of the proposed 
                        monetary penalty; and
                            ``(vii) inform such person that he shall 
                        have a reasonable opportunity to make 
                        representations, both oral and written, as to 
                        why a claim for a monetary penalty should not 
                        be issued in the amount stated.
                    ``(B) Exceptions.--The Customs Service may not 
                issue a prepenalty notice if the amount of the penalty 
                in the penalty claim issued under paragraph (2) is 
                $1,000 or less. In such cases, the Customs Service may 
                proceed directly with a penalty claim.
                    ``(C) Prior approval.--No prepenalty notice in 
                which the alleged violation occurred as a result of 
                fraud shall be issued without the prior approval of 
                Customs Headquarters.
            ``(2) Penalty claim.--After considering representations, if 
        any, made by the person concerned pursuant to the notice issued 
        under paragraph (1), the Customs Service shall determine 
        whether any violation of subsection (a), as alleged in the 
        notice, has occurred. If the Customs Service determines that 
        there was no violation, the Customs Service shall promptly 
        issue a written statement of the determination to the person to 
        whom the notice was sent. If the Customs Service determines 
        that there was a violation, Customs shall issue a written 
        penalty claim to such person. The written penalty claim shall 
        specify all changes in the information provided under clauses 
        (i) through (vii) of paragraph (1)(A). Such person shall have a 
        reasonable opportunity under section 618 to make 
        representations, both oral and written, seeking remission or 
        mitigation of the monetary penalty. At the conclusion of any 
        proceeding under section 618, the Customs Service shall provide 
        to the person concerned a written statement which sets forth 
        the final determination, and the findings of fact and 
        conclusions of law on which such determination is based.
    ``(c) Maximum Penalties.--
            ``(1) Fraud.--A fraudulent violation of subsection (a) of 
        this section is punishable by a civil penalty in an amount not 
        to exceed 3 times the actual or potential loss of revenue.
            ``(2) Negligence.--
                    ``(A) In general.--A negligent violation of 
                subsection (a) is punishable by a civil penalty in an 
                amount not to exceed 20 percent of the actual or 
                potential loss of revenue for the 1st violation.
                    ``(B) Repetitive violations.--If the Customs 
                Service determines that a repeat negligent violation 
                occurs relating to the same issue, the penalty amount 
                for the 2d violation shall be in an amount not to 
                exceed 50 percent of the total actual or potential loss 
                of revenue. The penalty amount for each succeeding 
                repetitive negligent violation shall be in an amount 
                not to exceed the actual or potential loss of revenue. 
                If the same party commits a nonrepetitive violation, 
                that violation shall be subject to a penalty not to 
                exceed 20 percent of the actual or potential loss of 
                revenue.
            ``(3) Prior disclosure.--
                    ``(A) In general.--Subject to subparagraph (B), if 
                the person concerned discloses the circumstances of a 
                violation of subsection (a) before, or without 
                knowledge of the commencement of, a formal 
                investigation of such violation, the monetary penalty 
                assessed under this subsection may not exceed--
                            ``(i) if the violation resulted from fraud, 
                        an amount equal to the actual or potential 
                        revenue of which the United States is or may be 
                        deprived as a result of overpayment of the 
                        claim; or
                            ``(ii) if the violation resulted from 
                        negligence, an amount equal to the interest 
                        computed on the basis of the prevailing rate of 
                        interest applied under section 6621 of the 
                        Internal Revenue Code of 1986 on the amount of 
                        actual revenue of which the United States is or 
                        may be deprived during the period that--
                                    ``(I) begins on the date of the 
                                overpayment of the claim; and
                                    ``(II) ends on the date on which 
                                the person concerned tenders the amount 
                                of the overpayment.
                    ``(B) Condition affecting penalty limitations.--The 
                limitations in subparagraph (A) on the amount of the 
                monetary penalty to be assessed under subsection (c) 
                apply only if the person concerned tenders the amount 
                of the overpayment made on the claim at the time of 
                disclosure, or within 30 days (or such longer period as 
                the Customs Service may provide), after notice by the 
                Customs Service of its calculation of the amount of the 
                overpayment.
                    ``(C) Burden of proof.--The person asserting lack 
                of knowledge of the commencement of a formal 
                investigation has the burden of proof in establishing 
                such lack of knowledge.
            ``(4) Commencement of investigation.--For purposes of this 
        section, a formal investigation of a violation is considered to 
        be commenced with regard to the disclosing party and the 
        disclosed information on the date recorded in writing by the 
        Customs Service as the date on which facts and circumstances 
        were discovered or information was received which caused the 
        Customs Service to believe that a possibility of a violation of 
        subsection (a) existed.
            ``(5) Exclusivity.--Penalty claims under this section shall 
        be the exclusive civil remedy for any drawback related 
        violation of subsection (a).
    ``(d) Deprivation of Lawful Revenue.--Notwithstanding section 514, 
if the United States has been deprived of lawful duties and taxes 
resulting from a violation of subsection (a), the Customs Service shall 
require that such drawback claim be restored whether or not a monetary 
penalty is assessed.
    ``(e) Drawback Compliance Program.--
            ``(1) In general.--After consultation with the drawback 
        trade community, the Customs Service shall establish a drawback 
        compliance program in which claimants and other parties in 
        interest may participate after being certified by the Customs 
        Service under paragraph (2). Participation in the drawback 
        compliance program is voluntary.
            ``(2) Certification.--A party may be certified as a 
        participant in the drawback compliance program after meeting 
        the general requirements established under the program or after 
        negotiating an alternative program suited to the needs of the 
        party and the Customs Service. Certification requirements shall 
        take into account the size and nature of the party's drawback 
        program and the volume of claims. In order to be certified, the 
        participant must be able to demonstrate that it--
                    ``(A) understands the legal requirements for filing 
                claims, including the nature of the records required to 
                be maintained and produced and the time periods 
                involved;
                    ``(B) has in place procedures to explain the 
                Customs Service requirements to those employees that 
                are involved in the preparation of claims, and the 
                maintenance and production of required records;
                    ``(C) has in place procedures regarding the 
                preparation of claims and maintenance of required 
                records, and the production of such records to the 
                Customs Service;
                    ``(D) has designated a dependable individual or 
                individuals to be responsible for compliance under the 
                program and whose duties include maintaining 
                familiarity with the drawback requirements of the 
                Customs Service;
                    ``(E) has a record maintenance procedure approved 
                by the Customs Service for original records, or, if 
                approved by the Customs Service, for alternate records 
                or recordkeeping formats other than the original 
                records; and
                    ``(F) has procedures for notifying the Customs 
                Service of variances to, and violations of, the 
                requirements of the drawback compliance program or any 
                negotiated alternative programs, and for taking 
                corrective action when notified by the Customs Service 
                for violations or problems regarding such program.
    ``(f) Alternatives to Penalties.--
            ``(1) In general.--When a party that--
                    ``(A) has been certified as a participant in the 
                drawback compliance program under subsection (e); and
                    ``(B) is generally in compliance with the 
                appropriate procedures and requirements of the program;
        commits a violation of subsection (a), the Customs Service, 
        shall, in the absence of fraud or repeated violations, and in 
        lieu of a monetary penalty, issue a written notice of the 
        violation to the party. Repeated violations by a party may 
        result in the issuance of penalties and removal of 
        certification under the program until corrective action, 
        satisfactory to the Customs Service, is taken.
            ``(2) Contents of notice.--A notice of violation issued 
        under paragraph (1) shall--
                    ``(A) state that the party has violated subsection 
                (a);
                    ``(B) explain the nature of the violation; and
                    ``(C) warn the party that future violations of 
                subsection (a) may result in the imposition of monetary 
                penalties.
            ``(3) Response to notice.--Within a reasonable time after 
        receiving written notice under paragraph (1), the party shall 
        notify the Customs Service of the steps it has taken to prevent 
        a recurrence of the violation.
    ``(g) Repetitive Violations.--
            ``(1) A party who has been issued a written notice under 
        subsection (f)(1) and subsequently commits a repeat negligent 
        violation involving the same issue is subject to the following 
        monetary penalties:
                    ``(A) 2d violation.--An amount not to exceed 20 
                percent of the loss of revenue.
                    ``(B) 3rd violation.--An amount not to exceed 50 
                percent of the loss of revenue.
                    ``(C) 4th and subsequent violations.--An amount not 
                to exceed 100 percent of the loss of revenue.
            ``(2) If a party that has been certified as a participant 
        in the drawback compliance program under subsection (e) commits 
        an alleged violation which was not repetitive, the party shall 
        be issued a `warning letter', and, for any subsequent 
        violation, shall be subject to the same maximum penalty amounts 
        stated in paragraph (1).
    ``(h) Regulation.--The Secretary shall promulgate regulations and 
guidelines to implement this section. Such regulations shall specify 
that for purposes of subsection (g), a repeat negligent violation 
involving the same issue shall be treated as a repetitive violation for 
a maximum period of 3 years.
    ``(i) Court of International Trade Proceedings.--Notwithstanding 
any other provision of law, in any proceeding commenced by the United 
States in the Court of International Trade for the recovery of any 
monetary penalty claimed under this section--
            ``(1) all issues, including the amount of the penalty, 
        shall be tried de novo;
            ``(2) if the monetary penalty is based on fraud, the United 
        States shall have the burden of proof to establish the alleged 
        violation by clear and convincing evidence; and
            ``(3) if the monetary penalty is based on negligence, the 
        United States shall have the burden of proof to establish the 
        act or omission constituting the violation, and the alleged 
        violator shall have the burden of providing evidence that the 
        act or omission did not occur as a result of negligence.''.
    (b) Effective Date.--The amendment made by subsection (a) applies 
to drawback claims filed on and after the nationwide operational 
implementation of an automated drawback selectivity program by the 
Customs Service. The Customs Service shall publish notice of this date 
in the Customs Bulletin.

SEC. 113. INTERPRETIVE RULINGS AND DECISIONS; PUBLIC INFORMATION.

    Section 625 (19 U.S.C. 1625) is amended to read as follows:

``SEC. 625. INTERPRETIVE RULINGS AND DECISIONS; PUBLIC INFORMATION.

    ``(a) Publication.--Within 90 days after the date of issuance of 
any interpretive ruling (including any ruling letter, or internal 
advice memorandum) or protest review decision under this chapter with 
respect to any customs transaction, the Secretary shall have such 
ruling or decision published in the Customs Bulletin or shall otherwise 
make such ruling or decision available for public inspection.
    ``(b) Appeals.--A person may appeal an adverse interpretive ruling 
and any interpretation of any regulation prescribed to implement such 
ruling to a higher level of authority within the Customs Service for de 
novo review. Upon a reasonable showing of business necessity, any such 
appeal shall be considered and decided no later than 60 days following 
the date on which the appeal is filed. The Secretary shall issue 
regulations to implement this subsection.
    ``(c) Modification and Revocation.--A proposed interpretive ruling 
or decision which would--
            ``(1) modify (other than to correct a clerical error) or 
        revoke a prior interpretive ruling or decision which has been 
        in effect for at least 60 days; or
            ``(2) have the effect of modifying the treatment previously 
        accorded by the Customs Service to substantially identical 
        transactions;
shall be published in the Customs Bulletin. The Secretary shall give 
interested parties an opportunity to submit, during not less than the 
30-day period after the date of such publication, comments on the 
correctness of the proposed ruling or decision. After consideration of 
any comments received, the Secretary shall publish a final ruling or 
decision in the Customs Bulletin within 30 days after the closing of 
the comment period. The final ruling or decision shall become effective 
60 days after the date of its publication.
    ``(d) Publication of Customs Decisions That Limit Court 
Decisions.--A decision that proposes to limit the application of a 
court decision shall be published in the Customs Bulletin together with 
notice of opportunity for public comment thereon prior to a final 
decision.
    ``(e) Public Information.--The Secretary may make available in 
writing or through electronic media, in an efficient, comprehensive and 
timely manner, all information, including directives, memoranda, 
electronic messages and telexes which contain instructions, 
requirements, methods or advice necessary for importers and exporters 
to comply with the Customs laws and regulations. All information which 
may be made available pursuant to this subsection shall be subject to 
any exemption from disclosure provided by section 552 of title 5, 
United States Code.''.

SEC. 114. SEIZURE AUTHORITY.

    Section 596(c) (19 U.S.C. 1595a(c)) is amended to read as follows:
    ``(c) Merchandise which is introduced or attempted to be introduced 
into the United States contrary to law shall be treated as follows:
            ``(1) The merchandise shall be seized and forfeited if it--
                    ``(A) is stolen, smuggled, or clandestinely 
                imported or introduced;
                    ``(B) is a controlled substance, as defined in the 
                Controlled Substances Act (21 U.S.C. 801 et seq.), and 
                is not imported in accordance with applicable law; or
                    ``(C) is a contraband article, as defined in 
                section 1 of the Act of August 9, 1939 (49 U.S.C. App. 
                781).
            ``(2) The merchandise may be seized and forfeited if--
                    ``(A) its importation or entry is subject to any 
                restriction or prohibition which is imposed by law 
                relating to health, safety, or conservation and the 
                merchandise is not in compliance with the applicable 
                rule, regulation, or statute;
                    ``(B) its importation or entry requires a license, 
                permit or other authorization of an agency of the 
                United States Government and the merchandise is not 
                accompanied by such license, permit, or authorization;
                    ``(C) it is merchandise or packaging in which 
                copyright, trademark, or trade name protection 
                violations are involved (including, but not limited to, 
                violations of section 42, 43, or 45 of the Act of July 
                5, 1946 (Public Law 95-410; 15 U.S.C. 1124, 1125, or 
                1127), section 506 or 509 of title 17, United States 
                Code, or section 2318 or 2320 of title 18, United 
                States Code);
                    ``(D) it is trade dress merchandise involved in the 
                violation of a court order citing section 43 of such 
                Act of July 5, 1946 (15 U.S.C. 1125);
                    ``(E) it is merchandise which is marked 
                intentionally in violation of section 304; or
                    ``(F) it is merchandise for which the importer has 
                received written notices that previous importations of 
                identical merchandise from the same supplier were found 
                to have been marked in violation of section 304.
            ``(3) If the importation or entry of the merchandise is 
        subject to quantitative restrictions requiring a visa, permit, 
        license, or other similar document, or stamp from the United 
        States Government or from a foreign government or issuing 
        authority pursuant to a bilateral or multilateral agreement, 
        the merchandise shall be subject to detention in accordance 
        with section 499 unless the appropriate visa, license, permit, 
        or similar document or stamp is presented to the Customs 
        Service; but if the visa, permit, license, or similar document 
        or stamp which is presented in connection with the importation 
        or entry of the merchandise is counterfeit, the merchandise may 
        be seized and forfeited.
            ``(4) If the merchandise is imported or introduced contrary 
        to a provision of law which governs the classification or value 
        of merchandise and there are no issues as to the admissibility 
        of the merchandise into the United States, it shall not be 
        seized except in accordance with section 592.
            ``(5) In any case where the seizure and forfeiture of 
        merchandise are required or authorized by this section, the 
        Secretary may--
                    ``(A) remit the forfeiture under section 618, or
                    ``(B) permit the exportation of the merchandise, 
                unless its release would adversely affect health, 
                safety, or conservation or be in contravention of a 
                bilateral or multilateral agreement or treaty.''.

             TITLE II--NATIONAL CUSTOMS AUTOMATION PROGRAM

SEC. 201. NATIONAL CUSTOMS AUTOMATION PROGRAM.

    Part I of title IV is amended--
            (1) by striking out

                         ``PART I--DEFINITIONS

        and inserting

     ``PART I--DEFINITIONS AND NATIONAL CUSTOMS AUTOMATION PROGRAM

                      ``Subpart A--Definitions'';

        and
            (2) by inserting after section 402 the following:

            ``Subpart B--National Customs Automation Program

``SEC. 411. NATIONAL CUSTOMS AUTOMATION PROGRAM.

    ``(a) Establishment.--The Secretary shall establish the National 
Customs Automation Program (hereinafter in this subpart referred to as 
the `Program') which shall be an automated and electronic system for 
processing commercial importations and shall include the following 
existing and planned components:
            ``(1) Existing components:
                    ``(A) The electronic entry of merchandise.
                    ``(B) The electronic entry summary of required 
                information.
                    ``(C) The electronic transmission of invoice 
                information.
                    ``(D) The electronic transmission of manifest 
                information.
                    ``(E) Electronic payments of duties, fees, and 
                taxes.
                    ``(F) The electronic status of liquidation and 
                reliquidation.
                    ``(G) The electronic selection of high risk entries 
                for examination (cargo selectivity and entry summary 
                selectivity).
            ``(2) Planned components:
                    ``(A) The electronic filing and status of protests.
                    ``(B) The electronic filing (including remote 
                filing under section 414) of entry information with the 
                Customs Service at any location.
                    ``(C) The electronic filing of import activity 
                summary statements and reconciliation.
                    ``(D) The electronic filing of bonds.
                    ``(E) The electronic penalty process.
                    ``(F) The electronic filing of drawback claims, 
                records, or entries.
                    ``(G) Any other component initiated by the Customs 
                Service to carry out the goals of this subpart.
    ``(b) Participation in Program.--The Secretary shall by regulation 
prescribe the eligibility criteria for participation in the Program. 
Participation in the Program is voluntary.

``SEC. 412. PROGRAM GOALS.

    ``The goals of the Program are to ensure that all regulations and 
rulings that are administered or enforced by the Customs Service are 
administered and enforced in a manner that--
            ``(1) is uniform and consistent;
            ``(2) is as minimally intrusive upon the normal flow of 
        business activity as practicable; and
            ``(3) improves compliance.

``SEC. 413. IMPLEMENTATION AND EVALUATION OF PROGRAM.

    ``(a) Overall Program Plan.--
            ``(1) In general.--Before the 180th day after the date of 
        the enactment of this Act, the Secretary shall develop and 
        transmit to the Committees an overall plan for the Program. The 
        overall Program plan shall set forth--
                    ``(A) a general description of the ultimate 
                configuration of the Program;
                    ``(B) a description of each of the existing 
                components of the Program listed in section 411(a)(1); 
                and
                    ``(C) estimates regarding the stages on which 
                planned components of the Program listed in section 
                411(a)(2) will be brought on-line.
            ``(2) Additional information.--In addition to the 
        information required under paragraph (1), the overall Program 
        plan shall include a statement regarding--
                    ``(A) the extent to which the existing components 
                of the Program currently meet, and the planned 
                components will meet, the Program goals set forth in 
                section 412; and
                    ``(B) the effects that the existing components are 
                currently having, and the effects that the planned 
                components will likely have, on--
                            ``(i) importers, brokers, and other users 
                        of the Program, and
                            ``(ii) Customs Service occupations, 
                        operations, processes, and systems.
    ``(b) Implementation Plan, Testing, and Evaluation.--
            ``(1) Implementation plan.--For each of the planned 
        components of the Program listed in section 411(a)(2), the 
        Secretary shall--
                    ``(A) develop an implementation plan;
                    ``(B) test the component in order to assess its 
                viability;
                    ``(C) evaluate the component in order to assess its 
                contribution toward achieving the program goals; and
                    ``(D) transmit to the Committees the implementation 
                plan, the testing results, and an evaluation report.
        In developing an implementation plan under subparagraph (A) and 
        evaluating components under subparagraph (C), the Secretary 
        shall publish a request for comments in the Customs Bulletin 
        and shall consult with the trade community, including 
        importers, brokers, shippers, and other affected parties.
            ``(2) Implementation.--
                    ``(A) The Secretary may implement on a permanent 
                basis any Program component referred to in paragraph 
                (1) on or after the date which is 30 days after 
                paragraph (1)(D) is complied with.
                    ``(B) For purposes of subparagraph (A), the 30 days 
                shall be computed by excluding--
                            ``(i) the days either House is not in 
                        session because of an adjournment of more than 
                        3 days to a day certain or an adjournment of 
                        the Congress sine die, and
                            ``(ii) any Saturday and Sunday, not 
                        excluded under clause (i), when either House is 
                        not in session.
            ``(3) Evaluation and report.--The Secretary shall--
                    ``(A) develop a user satisfaction survey of parties 
                participating in the Program;
                    ``(B) evaluate the results of the user satisfaction 
                survey on a biennial basis (fiscal years) and transmit 
                a report to the Committees on the evaluation by no 
                later than the 90th day after the close of each 2d 
                fiscal year;
                    ``(C) with respect to the existing Program 
                component listed in section 411(a)(1)(G) transmit to 
                the Committees--
                            ``(i) a written evaluation of such 
                        component before the 180th day after the date 
                        of the enactment of this section and before the 
                        implementation of the planned Program 
                        components listed in section 411(a)(2) (B) and 
                        (C), and
                            ``(ii) a report on such component for each 
                        of the 3 full fiscal years occurring after the 
                        date of the enactment of this section, which 
                        report shall be transmitted not later than the 
                        90th day after the close of each such year; and
                    ``(D) not later than the 90th day after the close 
                of fiscal year 1993, and annually thereafter through 
                fiscal year 1999, transmit to the Committees a written 
                evaluation with respect to the implementation and 
                effect on users of each of the planned Program 
                components listed in section 411(a)(2).
        In carrying out the provisions of this paragraph, the Secretary 
        shall publish requests for comments in the Customs Bulletin and 
        shall consult with the trade community, including importers, 
        brokers, shippers, and other affected parties.
    ``(c) Committees.--For purposes of this section, the term 
`Committees' means the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate.

``SEC. 414. REMOTE LOCATION FILING.

    ``(a) Core Entry Information.--
            ``(1) In general.--A Program participant may file an entry 
        of merchandise with the Customs Service from a location other 
        than the district designated in the entry for examination 
        (hereafter in this section referred to as a `remote location') 
        if--
                    ``(A) the Customs Service is satisfied that the 
                participant has the capabilities referred to in 
                paragraph (2) regarding such method of filing; and
                    ``(B) the participant elects to file from the 
                remote location.
            ``(2) Requirements.--In order to qualify for filing from a 
        remote location, a Program participant must have the capability 
        to provide, on an entry-by-entry basis, for the following:
                    ``(A) The electronic entry of merchandise.
                    ``(B) The electronic entry summary of required 
                information.
                    ``(C) The electronic transmission of invoice 
                information (when required by the Customs Service).
                    ``(D) The electronic payment of duties, fees, and 
                taxes.
                    ``(E) Such other electronic capabilities within the 
                existing or planned components of the Program as the 
                Secretary shall by regulation require.
            ``(3) Alternative filing.--Any Program participant that is 
        eligible under paragraph (1) to file entry information 
        electronically from a remote location but chooses not to do so 
        in the case of any entry must file any paper documentation for 
        the entry at the designated location referred to in subsection 
        (d).
    ``(b) Additional Entry Information.--
            ``(1) In general.--A Program participant that is eligible 
        under subsection (a) to file entry information from a remote 
        location may, if the Customs Service is satisfied that the 
        participant meets the requirements under paragraph (2), also 
        electronically file from the remote location additional 
        information that is required by the Customs Service to be 
        presented before the acceptance of entry summary information 
        and at the time of acceptance of entry summary information.
            ``(2) Requirements.--The Secretary shall publish, and 
        periodically update, a list of those capabilities within the 
        existing and planned components of the Program that a Program 
        participant must have for purposes of this subsection.
            ``(3) Filing of additional information.--
                    ``(A) If information electronically acceptable.--A 
                Program participant that is eligible under paragraph 
                (1) to file additional information from a remote 
                location shall electronically file all such information 
                that the Customs Service can accept electronically.
                    ``(B) Alternative filing.--If the Customs Service 
                cannot accept additional information electronically, 
                the Program participant shall file the paper 
                documentation with respect to the information at the 
                appropriate filing location.
                    ``(C) Appropriate location.--For purposes of 
                subparagraph (B), the `appropriate location' is--
                            ``(i) before January 1, 1999, a designated 
                        location; and
                            ``(ii) after December 31, 1998--
                                    ``(I) if the paper documentation is 
                                required for release, a designated 
                                location; or
                                    ``(II) if the paper documentation 
                                is not required for release, a remote 
                                location designated by the Customs 
                                Service or a designated location.
                    ``(D) Other.--A Program participant that is 
                eligible under paragraph (1) to file additional 
                information electronically from a remote location but 
                chooses not to do so must file the paper documentation 
                with respect to the information at a designated 
                location.
    ``(c) Post-Entry Summary Information.--A Program participant that 
is eligible to file electronically entry information under subsection 
(a) and additional information under subsection (b) from a remote 
location may file at any remote location designated by the Customs 
Service any information required by the Customs Service after entry 
summary.
    ``(d) Definition of Designated Location.--For purposes of this 
section, the term `designated location' means a customs office located 
in the customs district designated by the entry filer for purposes of 
customs examination of the merchandise.''.

SEC. 202. DRAWBACK AND REFUNDS.

    (a) Amendments.--Section 313 (19 U.S.C. 1313) is amended as 
follows:
            (1) Subsection (a) is amended--
                    (A) by inserting ``or destruction under customs 
                supervision'' after ``Upon the exportation'';
                    (B) by inserting ``provided that those articles 
                have not been used prior to such exportation or 
                destruction,'' after ``manufactured or produced in the 
                United States with the use of imported merchandise,'';
                    (C) by inserting ``or destruction'' after 
                ``refunded upon the exportation''; and
                    (D) by striking out ``wheat imported after ninety 
                days after the date of the enactment of this Act'' and 
                inserting ``imported wheat''.
            (2) Subsection (b) is amended--
                    (A) by striking out ``duty-free or domestic 
                merchandise'' and inserting ``any other merchandise 
                (whether imported or domestic)'';
                    (B) by inserting ``, or destruction under customs 
                supervision,'' after ``there shall be allowed upon the 
                exportation'';
                    (C) by inserting ``or destroyed'' after 
                ``notwithstanding the fact that none of the imported 
                merchandise may actually have been used in the 
                manufacture or production of the exported'';
                    (D) by inserting ``, but only if those articles 
                have not been used prior to such exportation or 
                destruction'' after ``an amount of drawback equal to 
                that which would have been allowable had the 
                merchandise used therein been imported''; and
                    (E) by inserting ``or destruction under customs 
                supervision'' after ``but the total amount of drawback 
                allowed upon the exportation''.
            (3) Subsection (c) is amended to read as follows:
    ``(c) Merchandise Not Conforming to Sample or Specifications.--Upon 
the exportation, or destruction under the supervision of the Customs 
Service, of merchandise--
            ``(1) not conforming to sample or specifications, shipped 
        without the consent of the consignee, or determined to be 
        defective as of the time of importation;
            ``(2) upon which the duties have been paid;
            ``(3) which has been entered or withdrawn for consumption; 
        and
            ``(4) which, within 3 years after release from the custody 
        of the Customs Service, has been returned to the custody of the 
        Customs Service for exportation or destruction under the 
        supervision of the Customs Service;
the full amount of the duties paid upon such merchandise, less 1 
percent, shall be refunded as drawback.''.
            (4) Subsection (j) is amended to read as follows:
    ``(j) Unused Merchandise Drawback.--
            ``(1) If imported merchandise, on which was paid any duty, 
        tax, or fee imposed under Federal law because of its 
        importation--
                    ``(A) is, before the close of the 3-year period 
                beginning on the date of importation--
                            ``(i) exported, or
                            ``(ii) destroyed under customs supervision; 
                        and
                    ``(B) is not used within the United States before 
                such exportation or destruction;
        then upon such exportation or destruction 99 percent of the 
        amount of each duty, tax, or fee so paid shall be refunded as 
        drawback.
            ``(2) If there is, with respect to imported merchandise on 
        which was paid any duty, tax, or fee imposed under Federal law 
        because of its importation, any other merchandise (whether 
        imported or domestic), that--
                    ``(A) is commercially interchangeable with such 
                imported merchandise;
                    ``(B) is, before the close of the 3-year period 
                beginning on the date of importation of the imported 
                merchandise, either exported or destroyed under customs 
                supervision; and
                    ``(C) before such exportation or destruction--
                            ``(i) is not used within the United States, 
                        and
                            ``(ii) is in the possession of, including 
                        ownership while in bailment, in leased 
                        facilities, in transit to, or in any other 
                        manner under the operational control of, the 
                        party claiming drawback under this paragraph 
                        (if that party paid the duty, tax, or fee on 
                        the imported merchandise (established by means 
                        of either an entry summary or a certificate of 
                        delivery));
        then upon the exportation or destruction of such other 
        merchandise the amount of each such duty, tax, and fee paid 
        regarding the imported merchandise shall be refunded as 
        drawback, but in no case may the total drawback on the imported 
        merchandise, whether available under this paragraph or any 
        other provision of law or any combination thereof, exceed 99 
        percent of that duty, tax, or fee.
            ``(3) The performing of any operation or combination of 
        operations (including, but not limited to, testing, cleaning, 
        repacking, inspecting, sorting, refurbishing, freezing, 
        blending, repairing, reworking, cutting, slitting, adjusting, 
        replacing components, relabeling, disassembling, and 
        unpacking), not amounting to manufacture or production for 
        drawback purposes under the preceding provisions of this 
        section on--
                    ``(A) the imported merchandise itself in cases to 
                which paragraph (1) applies, or
                    ``(B) the commercially interchangeable merchandise 
                in cases to which paragraph (2) applies,
        shall not be treated as a use of that merchandise for purposes 
        of applying paragraph (1)(B) or (2)(C).''.
            (5) Subsection (l) is amended by striking out ``the fixing 
        of a time limit within which drawback entries or entries for 
        refund under any of the provisions of this section or section 
        309(b) shall be filed and completed,'' and inserting ``the 
        authority for the electronic submission of drawback entries''.
            (6) The following new subsections are inserted after 
        subsection (p):
    ``(q) Packaging Material.--Packaging material, when used on or for 
articles or merchandise exported or destroyed under subsection (a), 
(b), (c), or (j), shall be eligible under such subsection for refund, 
as drawback, of 99 percent of any duty, tax, or fee imposed under 
Federal law on the importation of such material.
    ``(r) Filing Drawback Claims.--
            ``(1) A drawback entry and all documents necessary to 
        complete a drawback claim, including those issued by one 
        customs officer to another, shall be filed or applied for, as 
        applicable, within 3 years after the date of exportation or 
        destruction of the articles on which drawback is claimed, 
        except that any landing certificate required by regulation 
        shall be filed within the time limit prescribed in such 
        regulation. Claims not completed within the 3-year period shall 
        be considered abandoned. No extension will be granted unless it 
        is established that a customs officer was responsible for the 
        untimely filing.
            ``(2) A drawback entry for refund filed pursuant to any 
        subsection of this section shall be deemed filed pursuant to 
        any other subsection of this section should it be determined 
        that drawback is not allowable under the entry as originally 
        filed but is allowable under such other subsection.
    ``(s) Designation of Merchandise by Successor.--
            ``(1) For purposes of subsection (b), a drawback successor 
        may designate imported merchandise used by the predecessor 
        before the date of succession as the basis for drawback on 
        articles manufactured by the drawback successor after the date 
        of succession.
            ``(2) For purposes of subsection (j)(2), a drawback 
        successor may designate imported merchandise upon which the 
        predecessor, before the date of succession, paid the duty, tax, 
        or fee related to the importation of the merchandise as the 
        basis for drawback on merchandise possessed by the drawback 
        successor after the date of succession.
            ``(3) For purposes of this subsection, the term `drawback 
        successor' means an entity to which another entity (in this 
        subsection referred to as the `predecessor') has transferred by 
        written agreement, merger, or corporate resolution all or 
        substantially all of the rights, privileges, immunities, 
        powers, duties, and liabilities of the predecessor, or all or 
        substantially all of the assets and other business interests of 
        a division, plant, or other business unit of such predecessor, 
        but only if in such transfer the value of the transferred 
        realty and personalty exceeds the value of all transferred 
        intangibles.
            ``(4) No drawback shall be paid under this subsection until 
        either the predecessor or the drawback successor (who shall 
        also certify that it has the predecessor's records) certifies 
        that--
                    ``(A) the transferred merchandise was not and will 
                not be claimed by the predecessor, and
                    ``(B) the predecessor did not and will not issue 
                any certificate to any other person that would enable 
                that person to claim drawback.
    ``(t) Drawback Certificates.--Any person who issues a certificate 
which would enable another person to claim drawback shall be subject to 
the recordkeeping provisions of this chapter, with the retention period 
beginning on the date that such certificate is issued.
    ``(u) Eligibility of Entered or Withdrawn Merchandise.--Imported 
merchandise that has not been regularly entered or withdrawn for 
consumption shall not satisfy any requirement for use, exportation, or 
destruction under this section.
    ``(v) Multiple Drawback Claims.--Merchandise that is exported or 
destroyed to satisfy any claim for drawback shall not be the basis of 
any other claim for drawback; except that appropriate credit and 
deductions for claims covering components or ingredients of such 
merchandise shall be made in computing drawback payments.''.
    (b) Effective Date.--The amendments made by subsection (a) apply 
to--
            (1) any drawback entry made after September 30, 1993; and
            (2) any drawback entry made before October 1, 1993, if the 
        liquidation of the entry is not final as of that date.

SEC. 203. EFFECTIVE DATE OF RATES OF DUTY.

    Section 315 (19 U.S.C. 1315) is amended--
            (1) by striking out ``appropriate customs officer in the 
        form and manner prescribed by regulations of the Secretary of 
        the Treasury,'' in the first sentence of subsection (a) and 
        inserting ``Customs Service by written, electronic or such 
        other means as the Secretary by regulation shall prescribe,'';
            (2) by striking out ``customs custody'' in the first 
        sentence of subsection (b) and inserting ``custody of the 
        Customs Service''; and
            (3) by striking out ``section 1001, paragraph 813'' in 
        subsection (c) and inserting ``chapter 98 of the Harmonized 
        Tariff Schedule of the United States''.

SEC. 204. DEFINITIONS.

    Section 401 (19 U.S.C. 1401) is amended--
            (1) by amending subsection (k) to read as follows:
    ``(k) The term `hovering vessel' means--
            ``(1) any vessel which is found or kept off the coast of 
        the United States within or without the customs waters, if, 
        from the history, conduct, character, or location of the 
        vessel, it is reasonable to believe that such vessel is being 
        used or may be used to introduce or promote or facilitate the 
        introduction or attempted introduction of merchandise into the 
        United States in violation of the laws of the United States; 
        and
            ``(2) any vessel which has visited a vessel described in 
        paragraph (1).''; and
            (2) by inserting at the end thereof the following new 
        subsections:
    ``(n) The term `electronic transmission' means the transfer of data 
or information through an authorized electronic data interchange system 
consisting of, but not limited to, computer modems and computer 
networks.
    ``(o) The term `electronic entry' means the electronic transmission 
to the Customs Service of--
            ``(1) entry information required for the entry of 
        merchandise, and
            ``(2) entry summary information required for the 
        classification and appraisement of the merchandise, the 
        verification of statistical information, and the determination 
        of compliance with applicable law.
    ``(p) The term `electronic data interchange system' means any 
established mechanism approved by the Commissioner of Customs through 
which information can be transferred electronically.
    ``(q) The term `National Customs Automation Program' means the 
program established under section 411.
    ``(r) The term `import activity summary statement' refers to data 
or information transmitted electronically to the Customs Service, in 
accordance with such regulations as the Secretary prescribes, at the 
end of a specified period of time which enables the Customs Service to 
assess properly the duties, taxes and fees on merchandise imported 
during that period, collect accurate statistics and determine whether 
any other applicable requirement of law (other than a requirement 
relating to release from customs custody) is met.
    ``(s) The term `reconciliation' means an electronic process, 
initiated at the request of an importer, under which the elements of an 
entry, other than those elements related to the admissibility of the 
merchandise, that are undetermined at the time of entry summary are 
provided to the Customs Service at a later time. A reconciliation is 
treated as an entry for purposes of liquidation, reliquidation, and 
protest.''.

SEC. 205. MANIFESTS.

    Section 431 (19 U.S.C. 1431) is amended--
            (1) by amending subsections (a) and (b) to read as follows:
    ``(a) In General.--Every vessel required to make entry under 
section 434 or obtain clearance under section 4197 of the Revised 
Statutes of the United States (46 U.S.C. App. 91) shall have a manifest 
that complies with the requirements prescribed under subsection (d).
    ``(b) Production of Manifest.--Any manifest required by the Customs 
Service shall be signed, produced, delivered or electronically 
transmitted by the master or person in charge of the vessel, aircraft, 
or vehicle, or by any other authorized agent of the owner or operator 
of the vessel, aircraft, or vehicle in accordance with the requirements 
prescribed under subsection (d). A manifest may be supplemented by bill 
of lading data supplied by the issuer of such bill. If any irregularity 
of omission or commission occurs in any way in respect to any manifest 
or bill of lading data, the owner or operator of the vessel, aircraft 
or vehicle, or any party responsible for such irregularity, shall be 
liable for any fine or penalty prescribed by law with respect to such 
irregularity. The Customs Service may take appropriate action against 
any of the parties.''; and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Regulations.--
            ``(1) In general.--The Secretary shall by regulation--
                    ``(A) specify the form for, and the information and 
                data that must be contained in, the manifest required 
                by subsection (a);
                    ``(B) allow, at the option of the individual 
                producing the manifest and subject to paragraph (2), 
                letters and documents shipments to be accounted for by 
                summary manifesting procedures;
                    ``(C) prescribe the manner of production for, and 
                the delivery for electronic transmittal of, the 
                manifest required by subsection (a); and
                    ``(D) prescribe the manner for supplementing 
                manifests with bill of lading data under subsection 
                (b).
            ``(2) Letters and documents shipments.--For purposes of 
        paragraph (1)(B)--
                    ``(A) the Customs Service may require with respect 
                to letters and documents shipments--
                            ``(i) that they be segregated by country of 
                        origin, and
                            ``(ii) additional examination procedures 
                        that are not necessary for individually 
                        manifested shipments;
                    ``(B) standard letter envelopes and standard 
                document packs shall be segregated from larger document 
                shipments for purposes of customs inspections; and
                    ``(C) the term `letters and documents' means--
                            ``(i) data described in General Headnote 
                        4(c) of the Harmonized Tariff Schedule of the 
                        United States,
                            ``(ii) securities and similar evidences of 
                        value described in heading 4907 of such 
                        Schedule, but not monetary instruments defined 
                        pursuant to chapter 53 of title 31, United 
                        States Code, and
                            ``(iii) personal correspondence, whether on 
                        paper, cards, photographs, tapes, or other 
                        media.''.

SEC. 206. INVOICE CONTENTS.

    Section 481 (19 U.S.C. 1481) is amended--
            (1) by amending subsection (a)--
                    (A) by amending the matter preceding paragraph (1) 
                to read as follows: ``In General.--All invoices of 
                merchandise to be imported into the United States and 
                any electronic equivalent thereof considered acceptable 
                by the Secretary in regulations prescribed under this 
                section shall set forth, in written, electronic, or 
                such other form as the Secretary shall prescribe, the 
                following:'',
                    (B) by amending paragraph (3) to read as follows:
            ``(3) A detailed description of the merchandise, including 
        the commercial name by which each item is known, the grade or 
        quality, and the marks, numbers, or symbols under which sold by 
        the seller or manufacturer in the country of exportation, 
        together with the marks and numbers of the packages in which 
        the merchandise is packed;'', and
                    (C) by amending paragraph (10) to read as follows:
            ``(10) Any other fact that the Secretary may by regulation 
        require as being necessary to a proper appraisement, 
        examination and classification of the merchandise.'';
            (2) by amending subsection (c) to read as follows:
    ``(c) Importer Provision of Information.--Any information required 
to be set forth on an invoice may alternatively be provided by any of 
the parties qualifying as an `importer of record' under section 
484(a)(2)(B) by such means, in such form or manner, and within such 
time as the Secretary shall by regulation prescribe.''; and
            (3) by inserting before the period at the end of subsection 
        (d) the following: ``and may allow for the submission or 
        electronic transmission of partial invoices, electronic 
        equivalents of invoices, bills, or other documents or parts 
        thereof, required under this section''.

SEC. 207. ENTRY OF MERCHANDISE.

    Section 484 (19 U.S.C. 1484) is amended to read as follows:

``SEC. 484. ENTRY OF MERCHANDISE.

    ``(a) Requirement and Time.--
            ``(1) Except as provided in sections 490, 498, 552, 553, 
        and 336(j), one of the parties qualifying as `importer of 
        record' under paragraph (2)(B), either in person or by an agent 
        authorized by the party in writing, shall, using reasonable 
        care--
                    ``(A) make entry therefor by filing with the 
                Customs Service--
                            ``(i) such documentation or, pursuant to an 
                        electronic data interchange system, such 
                        information as is necessary to enable the 
                        Customs Service to determine whether the 
                        merchandise may be released from customs 
                        custody, and
                            ``(ii) notification whether an import 
                        activity summary statement will be filed; and
                    ``(B) complete the entry by filing with the Customs 
                Service the declared value, classification and rate of 
                duty applicable to the merchandise, and such other 
                documentation or, pursuant to an electronic data 
                interchange system, such other information as is 
                necessary to enable the Customs Service to--
                            ``(i) properly assess duties on the 
                        merchandise,
                            ``(ii) collect accurate statistics with 
                        respect to the merchandise, and
                            ``(iii) determine whether any other 
                        applicable requirement of law (other than a 
                        requirement relating to release from customs 
                        custody) is met.
            ``(2)(A) The documentation or information required under 
        paragraph (1) with respect to any imported merchandise shall be 
        filed or transmitted in such manner and within such time 
        periods as the Secretary shall by regulation prescribe. Such 
        regulations shall provide for the filing of import activity 
        summary statements, covering entries made during a calendar 
        month, within such time period as is prescribed in regulations 
        but not to exceed the 20th day following such calendar month.
            ``(B) When an entry of merchandise is made under this 
        section, the required documentation or information shall be 
        filed or electronically transmitted either by the owner or 
        purchaser of the merchandise or, when appropriately designated 
        by the owner, purchaser, or consignee of the merchandise, a 
        person holding a valid license under section 641. When a 
        consignee declares on entry that he is the owner or purchaser 
        of merchandise the Customs Service may, without liability, 
        accept the declaration. For the purposes of this Act, the 
        importer of record must be one of the parties who is eligible 
        to file the documentation or information required by this 
        section.
            ``(C) The Secretary, in prescribing regulations to carry 
        out this subsection, shall establish procedures which insure 
        the accuracy and timeliness of import statistics, particularly 
        statistics relevant to the classification and valuation of 
        imports. Corrections of errors in such statistical data shall 
        be transmitted immediately to the Director of the Bureau of the 
        Census, who shall make corrections in the statistics maintained 
        by the Bureau. The Secretary shall also provide, to the maximum 
        extent practicable, for the protection of the revenue, the 
        enforcement of laws governing the importation and exportation 
        of merchandise, the facilitation of the commerce of the United 
        States, and the equal treatment of all importers of record of 
        imported merchandise.
    ``(b) Reconciliation.--A party that electronically transmits an 
entry summary or import activity summary statement may at the time of 
filing such summary or statement notify the Customs Service of his 
intention to file a reconciliation pursuant to such regulations as the 
Secretary may prescribe. Such reconciliation must be filed by the 
importer of record within such time period as is prescribed by 
regulation but no later than 15 months following the filing of the 
entry summary or import activity summary statement. Before filing a 
reconciliation, an importer of record shall post bond or other security 
pursuant to such regulations as the Secretary may prescribe.
    ``(c) Release of Merchandise.--The Customs Service may permit the 
entry and release of merchandise from customs custody in accordance 
with such regulations as the Secretary may prescribe. No officer of the 
Customs Service shall be liable to any person with respect to the 
delivery of merchandise released from customs custody in accordance 
with such regulations.
    ``(d) Signing and Contents.--Entries shall be signed by the 
importer of record, or his agent, unless filed pursuant to an 
electronic data interchange system. If electronically filed, each 
transmission of data shall be certified by an importer of record or his 
agent, one of whom shall be resident in the United States for purposes 
of receiving service of process, as being true and correct to the best 
of his knowledge and belief, and such transmission shall be binding in 
the same manner and to the same extent as a signed document. The entry 
shall set forth such facts in regard to the importation as the 
Secretary may require and shall be accompanied by such invoices, bills 
of lading, certificates, and documents, or their electronically 
submitted equivalents, as are required by regulation.
    ``(e) Production of Invoice.--The Secretary may provide by 
regulation for the production of an invoice, parts thereof, or the 
electronic equivalents thereof, in such manner and form, and under such 
terms and conditions, as the Secretary considers necessary.
    ``(f) Statistical Enumeration.--The Secretary, the Secretary of 
Commerce, and the United States International Trade Commission shall 
establish from time to time for statistical purposes an enumeration of 
articles in such detail as in their judgment may be necessary, 
comprehending all merchandise imported into the United States and 
exported from the United States, and shall seek, in conjunction with 
statistical programs for domestic production and programs for achieving 
international harmonization of trade statistics, to establish the 
comparability thereof with such enumeration of articles. All import 
entries and export declarations shall include or have attached thereto 
an accurate statement specifying, in terms of such detailed 
enumeration, the kinds and quantities of all merchandise imported and 
exported and the value of the total quantity of each kind of article.
    ``(g) Statement of Cost of Production.--Under such regulations as 
the Secretary may prescribe, the Customs Service may require a verified 
statement from the manufacturer or producer showing the cost of 
producing the imported merchandise, if the Customs Service considers 
such verification necessary for the appraisement of such merchandise.
    ``(h) Admissibility of Data Electronically Transmitted.--Any entry 
or other information transmitted by means of an authorized electronic 
data interchange system shall be admissible in any and all 
administrative and judicial proceedings as evidence of such entry or 
information.''.

SEC. 208. APPRAISEMENT AND OTHER PROCEDURES.

    Section 500 (19 U.S.C. 1500) is amended--
            (1) by striking out ``The appropriate customs officer'' and 
        inserting ``The Customs Service'';
            (2) by striking out ``appraise'' in subsection (a) and 
        inserting ``fix the final appraisement of'';
            (3) by striking out ``ascertain the'' in subsection (b) and 
        inserting ``fix the final'';
            (4) by amending subsection (c)--
                    (A) by inserting ``final'' after ``fix the'', and
                    (B) by inserting ``, taxes, and fees'' after 
                ``duties'' wherever it appears; and
            (5) by amending subsections (d) and (e) to read as follows:
            ``(d) liquidate the entry and reconciliation, if any, of 
        such merchandise; and
            ``(e) give or transmit, pursuant to an electronic data 
        interchange system, notice of such liquidation to the importer, 
        his consignee, or agent in such form and manner as the 
        Secretary shall by regulation prescribe.''.

SEC. 209. VOLUNTARY RELIQUIDATIONS.

    Section 501 (19 U.S.C. 1501) is amended--
            (1) by striking out ``the appropriate customs officer on 
        his own initiative'' and inserting ``the Customs Service'';
            (2) by inserting ``or transmitted'' after ``given'' 
        wherever it appears; and
            (3) by amending the section heading to read as follows:

``SEC. 501. VOLUNTARY RELIQUIDATIONS BY THE CUSTOMS SERVICE.''.

SEC. 210. APPRAISEMENT REGULATIONS.

    Section 502 (19 U.S.C. 1502) is amended--
            (1) by amending subsection (a)--
                    (A) by inserting ``(including regulations 
                establishing procedures for the issuance of binding 
                rulings prior to the entry of the merchandise 
                concerned)'' after ``law'',
                    (B) by striking out ``ports of entry, and'' 
                inserting ``ports of entry. The Secretary'',
                    (C) by inserting ``or classifying'' after 
                ``appraising'' wherever it appears, and
                    (D) by striking out ``such port'' and inserting 
                ``any port, and may direct any customs officer at any 
                port to review entries of merchandise filed at any 
                other port''; and
            (2) by striking out subsection (b) and redesignating 
        subsection (c) as subsection (b).

SEC. 211. LIMITATION ON LIQUIDATION.

    Section 504 (19 U.S.C. 1504) is amended--
            (1) by amending subsection (a)--
                    (A) by striking out ``Except as provided in 
                subsection (b),'' and inserting ``Unless an entry is 
                extended under subsection (b) or suspended as required 
                by statute or court order,'',
                    (B) by striking out ``or'' at the end of paragraph 
                (2),
                    (C) by inserting ``or'' after the semicolon at the 
                end of paragraph (3), and
                    (D) by inserting the following new paragraph after 
                paragraph (3):
            ``(4) if a reconciliation is filed, or should have been 
        filed, the date of the filing under section 484 or the date the 
        reconciliation should have been filed;''; and
            (2) by amending subsections (b), (c), and (d) to read as 
        follows:
    ``(b) Extension.--The Secretary may extend the period in which to 
liquidate an entry if--
            ``(1) the information needed for the proper appraisement or 
        classification of the merchandise, or for insuring compliance 
        with applicable law, is not available to the Customs Service; 
        or
            ``(2) the importer of record requests such extension and 
        shows good cause therefor.
The Secretary shall give notice of an extension under this subsection 
to the importer of record and the surety of such importer of record. 
Notice shall be in such form and manner (which may include electronic 
transmittal) as the Secretary shall by regulation prescribe. Any entry 
the liquidation of which is extended under this subsection shall be 
treated as having been liquidated at the rate of duty, value, quantity, 
and amount of duty asserted at the time of entry by the importer of 
record at the expiration of 4 years from the applicable date specified 
in subsection (a).
    ``(c) Notice of Suspension.--If the liquidation of any entry is 
suspended, the Secretary shall by regulation require that notice of the 
suspension be provided, in such manner as the Secretary considers 
appropriate, to the importer of record and to any authorized agent and 
surety of such importer of record.
    ``(d) Removal of Suspension.--When a suspension required by statute 
or court order is removed, the Customs Service shall liquidate the 
entry within 6 months after receiving notice of the removal from the 
Department of Commerce, other agency, or a court with jurisdiction over 
the entry. Any entry not liquidated by the Customs Service within 6 
months after receiving such notice shall be treated as having been 
liquidated at the rate of duty, value, quantity, and amount of duty 
asserted at the time of entry by the importer of record.''.

SEC. 212. PAYMENT OF DUTIES AND FEES.

    (a) Amendment to Section 505.--Section 505 (U.S.C. 1505) is amended 
to read as follows:

``SEC. 505. PAYMENT OF DUTIES AND FEES.

    ``(a) Deposit of Estimated Duties, Fees, and Interest.--Unless 
merchandise is entered for warehouse or transportation, or under bond, 
the importer of record shall deposit with the Customs Service at the 
time of making entry, or at such later time as the Secretary may 
prescribe by regulation, the amount of duties and fees estimated to be 
payable thereon. Such regulations may provide that estimated duties and 
fees shall be deposited before or at the time an import activity 
summary statement is filed. If an import activity summary statement is 
filed, the estimated duties and fees shall be deposited together with 
interest, at a rate determined by the Secretary, accruing from the 
first date of the month the statement is required to be filed until the 
date such statement is actually filed.
    ``(b) Collection or Refund of Duties, Fees, and Interest Due Upon 
Liquidation or Reliquidation.--The Customs Service shall collect any 
increased or additional duties and fees due, together with interest 
thereon, or refund any excess moneys deposited, together with interest 
thereon, as determined on a liquidation or reliquidation. Duties, fees, 
and interest determined to be due upon liquidation or reliquidation are 
due 30 days after issuance of the bill for such payment. Refunds of 
excess moneys deposited, together with interest thereon, shall be paid 
within 30 days of liquidation or reliquidation.
    ``(c) Interest.--Interest assessed due to an underpayment of 
duties, fees, or interest shall accrue, at a rate determined by the 
Secretary, from the date the importer of record is required to deposit 
estimated duties, fees, and interest to the date of liquidation or 
reliquidation of the applicable entry or reconciliation. Interest on 
excess moneys deposited shall accrue, at a rate determined by the 
Secretary, from the date the importer of record deposits estimated 
duties, fees, and interest to the date of liquidation or reliquidation 
of the applicable entry or reconciliation.
    ``(d) Delinquency.--If duties, fees, and interest determined to be 
due or refunded are not paid in full within the 30-day period specified 
in subsection (b), any unpaid balance shall be considered delinquent 
and bear interest by 30-day periods, at a rate determined by the 
Secretary, from the date of liquidation or reliquidation until the full 
balance is paid. No interest shall accrue during the 30-day period in 
which payment is actually made.''.
    (b) Conforming Amendment.--Subsection (d) of section 520 (19 U.S.C. 
1520(d)) is repealed.

SEC. 213. ABANDONMENT AND DAMAGE.

    Section 506 (19 U.S.C. 1506) is amended--
            (1) by striking out ``the appropriate customs officer'' and 
        ``such customs officer'' wherever they appear and inserting 
        ``the Customs Service'';
            (2) by amending paragraph (1)--
                    (A) by striking out ``not sent to the appraiser's 
                stores for'' and inserting ``released without an'',
                    (B) by striking out ``of the examination packages 
                or quantities of merchandise'',
                    (C) by striking out ``the appraiser's stores'' and 
                inserting ``the Customs Service'', and
                    (D) by inserting ``or entry'' after ``invoice'', 
                and
            (3) by amending paragraph (2)--
                    (A) by inserting ``, electronically or otherwise,'' 
                after ``files'', and
                    (B) by striking out ``written''.

SEC. 214. CUSTOMS OFFICER'S IMMUNITY.

    Section 513 (19 U.S.C. 1513) is amended to read as follows:

``SEC. 513. CUSTOMS OFFICER'S IMMUNITY.

    ``No customs officer shall be liable in any way to any person for 
or on account of--
            ``(1) any ruling or decision regarding the appraisement or 
        the classification of any imported merchandise or regarding the 
        duties, fees, and taxes charged thereon,
            ``(2) the collection of any dues, charges, duties, fees, 
        and taxes on or on account of any imported merchandise, or
            ``(3) any other matter or thing as to which any person 
        might under this Act be entitled to protest or appeal from the 
        decision of such officer.''.

SEC. 215. PROTESTS.

    Section 514 (19 U.S.C. 1514) is amended--
            (1) by amending subsection (a)--
                    (A) by striking out ``appropriate customs officer'' 
                in the text preceding paragraph (1) and inserting 
                ``Customs Service'',
                    (B) by inserting ``or reconciliation as to the 
                issues contained therein,'' after ``entry,'' in 
                paragraph (5),
                    (C) by striking out ``and'' and inserting ``or'' at 
                the end of paragraph (6),
                    (D) by striking out the comma at the end of 
                paragraph (7) and inserting a semicolon, and
                    (E) by striking out ``appropriate customs officer, 
                who'' in the text following paragraph (7) and inserting 
                ``Customs Service, which'';
            (2) by amending subsection (b) by striking out 
        ``appropriate customs officer'' and inserting ``Customs 
        Service'';
            (3) by amending the first sentence of subsection (c)(1) to 
        read as follows: ``A protest of a decision made under 
        subsection (a) shall be filed in writing, or transmitted 
        electronically pursuant to an electronic data interchange 
        system, in accordance with regulations prescribed by the 
        Secretary. A protest must set forth distinctly and 
        specifically--
                    ``(A) each decision described in subsection (a) as 
                to which protest is made;
                    ``(B) each category of merchandise affected by each 
                decision set forth under paragraph (1);
                    ``(C) the nature of each objection and the reasons 
                therefor; and
                    ``(D) any other matter required by the Secretary by 
                regulation.'';
            (4) by redesignating paragraph (2) of subsection (c) as 
        paragraph (3) and by striking out ``such customs officer'' in 
        such redesignated paragraph and inserting ``the Customs 
        Service'';
            (5) by designating the last sentence of paragraph (1) of 
        subsection (c) as paragraph (2);
            (6) by striking out ``customs officer'' in subsection (d) 
        and inserting ``Customs Service''; and
            (7) by amending the section heading to read as follows:

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

SEC. 216. REFUNDS AND ERRORS.

    Section 520 (19 U.S.C. 1520) is amended--
            (1) by inserting ``or reconciliation'' after ``entry'' in 
        paragraphs (1) and (4) of subsection (a); and
            (2) by amending subsection (c)--
                    (A) by striking out ``appropriate customs officer'' 
                wherever it appears and inserting ``Customs Service'',
                    (B) by inserting ``or reconciliation'' after 
                ``reliquidate an entry'', and
                    (C) by inserting ``, whether or not resulting from 
                or contained in electronic transmission,'' after 
                ``inadvertence'' the first place it appears in 
                paragraph (1).

SEC. 217. BONDS AND OTHER SECURITY.

    Section 623 (19 U.S.C. 1623) is amended--
            (1) by inserting ``and the manner in which the bond may be 
        filed with or, pursuant to an authorized electronic data 
        interchange system, transmitted to the Customs Service'' after 
        ``form of such bond'' in subsection (b)(1); and
            (2) by inserting at the end of subsection (d) the following 
        new sentence: ``Any bond transmitted to the Customs Service 
        pursuant to an authorized electronic data interchange system 
        shall have the same force and effect and be binding upon the 
        parties thereto as if such bond were manually executed, signed, 
        and filed.''.

SEC. 218. CUSTOMHOUSE BROKERS.

    Section 641 (19 U.S.C. 1641) is amended--
            (1) by adding at the end of subsection (a)(2) the following 
        new sentence: ``It also includes the preparation of documents 
        or forms in any format and the electronic transmission of 
        documents, invoices, bills, or parts thereof, intended to be 
        filed with the Customs Service in furtherance of such 
        activities, whether or not signed or filed by the preparer, or 
        activities relating to such preparation, but does not include 
        the mere electronic transmission of data received for 
        transmission to Customs.'';
            (2) by amending subsection (c)(1) to read as follows:
            ``(1) In general.--Each person granted a customs broker's 
        license under subsection (b) shall be issued, in accordance 
        with such regulations as the Secretary shall prescribe, either 
        or both of the following:
                    ``(A) A national permit for the conduct of such 
                customs business as the Secretary prescribes by 
                regulation.
                    ``(B) A permit for each customs district in which 
                that person conducts customs business and, except as 
                provided in paragraph (2), regularly employs at least 1 
                individual who is licensed under subsection (b)(2) to 
                exercise responsible supervision and control over the 
                customs business conducted by that person in that 
                district.'';
            (3) by inserting at the end of subsection (c) the following 
        new paragraph:
            ``(4) Appointment of subagents.--Notwithstanding subsection 
        (c)(1), upon the implementation by the Secretary under section 
        413(b)(2) of the component of the National Customs Automation 
        Program referred to in section 411(a)(2)(B), a licensed broker 
        may appoint another licensed broker holding a permit in a 
        customs district to act on its behalf as its subagent in that 
        district if such activity relates to the filing of information 
        that is permitted by law or regulation to be filed 
        electronically. A licensed broker appointing a subagent 
        pursuant to this paragraph shall remain liable for any and all 
        obligations arising under bond and any and all duties, taxes, 
        and fees, as well as any other liabilities imposed by law, and 
        shall be precluded from delegating to a subagent such 
        liability.'';
            (4) by amending subsection (d)(2)(B)--
                    (A) by striking out ``appropriate customs officer'' 
                and inserting ``Customs Service'' in the first and 
                third sentences,
                    (B) by striking out ``he'' and inserting ``it'' in 
                the third sentence,
                    (C) by striking out ``15 days'' and inserting ``30 
                days'' in the third sentence,
                    (D) by striking out ``the appropriate customs 
                officer and the customs broker; they'' and inserting 
                ``the Customs Service and the customs broker; which'' 
                in the sixth sentence,
                    (E) by striking out ``his'' and inserting ``the'' 
                in the seventh sentence, and
                    (F) by striking out ``for his decision'' and 
                inserting ``for the decision'' in the eighth sentence; 
                and
            (5) by amending subsection (f) by striking out ``United 
        States Customs Service.'' and inserting ``Customs Service. The 
        Secretary may not prohibit customs brokers from limiting their 
        liability to other persons in the conduct of customs business. 
        For purposes of this subsection or any other provision of this 
        Act pertaining to recordkeeping, all data required to be 
        retained by a customs broker may be kept on microfilm, optical 
        disc, magnetic tapes, disks or drums, video files or any other 
        electrically generated medium. Pursuant to such regulations as 
        the Secretary shall prescribe, the conversion of data to such 
        storage medium may be accomplished at any time subsequent to 
        the relevant customs transaction and the data may be retained 
        in a centralized basis according to such broker's business 
        system.''.

SEC. 219. CONFORMING AMENDMENTS.

    (a) Place of Entry and Unlading.--Section 447 (19 U.S.C. 1447) is 
amended by striking out ``the appropriate customs officer shall 
consider'' and inserting ``the Customs Service considers''.
    (b) Unlading.--Section 449 (19 U.S.C. 1449) is amended by striking 
out ``appropriate customs officer of such port issues a permit for the 
unlading of such merchandise or baggage,'' and inserting ``Customs 
Service issues a permit for the unlading of such merchandise or baggage 
at such port,''.

     TITLE III--MISCELLANEOUS AMENDMENTS TO THE TARIFF ACT OF 1930

SEC. 301. REPORT OF ARRIVAL.

    Section 433 (19 U.S.C. 1433) is amended--
            (1) by amending subsection (a)(1)--
                    (A) by striking out ``or'' at the end of 
                subparagraph (B),
                    (B) by inserting ``or'' after the semicolon at the 
                end of subparagraph (C), and
                    (C) by adding after subparagraph (C) the following:
                    ``(D) any vessel which has visited a hovering 
                vessel or received merchandise while outside the 
                territorial sea;'';
            (2) by striking out ``present to customs officers such'' in 
        subsection (d) and inserting ``present, or transmit pursuant to 
        an electronic data interchange system, to the Customs Service 
        such information, data,''; and
            (3) by amending subsection (e) to read as follows:
    ``(e) Prohibition on Departures and Discharge.--Unless otherwise 
authorized by law, a vessel, aircraft or vehicle after arriving in the 
United States or Virgin Islands may, but only in accordance with 
regulations prescribed by the Secretary--
            ``(1) depart from the port, place, or airport of arrival; 
        or
            ``(2) discharge any passenger or merchandise (including 
        baggage).''.

SEC. 302. ENTRY OF VESSELS.

    Section 434 (19 U.S.C. 1434) amended to read as follows:

``SEC. 434. ENTRY; VESSELS.

    ``(a) Formal Entry.--Within 24 hours (or such other period of time 
as may be provided under subsection (c)(2)) after the arrival at any 
port or place in the United States of--
            ``(1) any vessel from a foreign port or place;
            ``(2) any foreign vessel from a domestic port;
            ``(3) any vessel of the United States having on board 
        bonded merchandise or foreign merchandise for which entry has 
        not been made; or
            ``(4) any vessel which has visited a hovering vessel or has 
        delivered or received merchandise while outside the territorial 
        sea;
the master of the vessel shall, unless otherwise provided by law, make 
formal entry at the nearest customs facility or such other place as the 
Secretary may prescribe by regulation.
    ``(b) Preliminary Entry.--The Secretary may by regulation permit 
the master to make preliminary entry of the vessel with the Customs 
Service in lieu of formal entry or before formal entry is made. In 
permitting preliminary entry, the Customs Service shall board a 
sufficient number of vessels to ensure compliance with the laws it 
enforces.
    ``(c) Regulations.--The Secretary may by regulation--
            ``(1) prescribe the manner and format in which entry under 
        subsection (a) or subsection (b), or both, must be made, and 
        such regulations may provide that any such entry may be made 
        electronically pursuant to an electronic data interchange 
        system;
            ``(2) provide that--
                    ``(A) formal entry must be made within a greater or 
                lesser time than 24 hours after arrival, but in no case 
                more than 48 hours after arrival, and
                    ``(B) formal entry may be made before arrival; and
            ``(3) authorize the Customs Service to permit entry or 
        preliminary entry of any vessel to be made at a place other 
        than a designated port of entry, under such conditions as may 
        be prescribed.''.

SEC. 303. UNLAWFUL RETURN OF FOREIGN VESSEL PAPERS.

    Section 438 (19 U.S.C. 1438) is amended--
            (1) by striking out ``section 435'' and inserting ``section 
        434'';
            (2) by inserting ``, or regulations issued thereunder,'' 
        after ``of this Act''; and
            (3) by striking out ``the appropriate customs officer of 
        the port where such vessel has been entered.'' and inserting 
        ``the Customs Service in the port in which such vessel has 
        entered.''.

SEC. 304. VESSELS NOT REQUIRED TO ENTER.

    Section 441 (19 U.S.C. 1441) is amended--
            (1) by amending the text preceding paragraph (1) to read as 
        follows: ``The following vessels shall not be required to make 
        entry under section 434 or to obtain clearance under section 
        4197 of the Revised Statutes of the United States (46 U.S.C. 
        App. 91):'';
            (2) by amending paragraph (3) to read as follows:
    ``(3) Any vessel carrying passengers on excursion from the United 
States Virgin Islands to the British Virgin Islands and returning, if--
            ``(A) the vessel does not in any way violate the customs or 
        navigation laws of the United States;
            ``(B) the vessel has not visited any hovering vessel; and
            ``(C) the master of the vessel, if there is on board any 
        article required by law to be entered, reports the article to 
        the Customs Service immediately upon arrival.'';
            (3) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively, and inserting after paragraph (3) 
        the following:
    ``(4) Any United States documented vessel with recreational 
endorsement or any undocumented United States pleasure vessel not 
engaged in trade, if--
            ``(A) the vessel complies with the reporting requirements 
        of section 433, and with the customs and navigation laws of the 
        United States;
            ``(B) the vessel has not visited any hovering vessel; and
            ``(C) the master of, and any other person on board, the 
        vessel, if the master or such person has on board any article 
        required by law to be entered or declared, reports such article 
        to the Customs Service immediately upon arrival;''; and
            (4) by amending the section heading to read as follows:

``SEC. 441. EXCEPTIONS TO VESSEL ENTRY AND CLEARANCE REQUIREMENTS.''.

SEC. 305. UNLADING.

    Section 448(a) (19 U.S.C. 1448(a)) is amended--
            (1) by amending the first sentence--
                    (A) by striking out ``enter)'' and inserting 
                ``enter or clear)'',
                    (B) by striking out ``or vehicle arriving from a 
                foreign port or place'' and inserting ``required to 
                make entry under section 434, or vehicle required to 
                report arrival under section 433,'',
                    (C) by inserting ``or transmitted pursuant to an 
                electronic data interchange system'' after ``issued'', 
                and
                    (D) by striking out the colon after ``officer'' and 
                the proviso and inserting a period;
            (2) by amending the second sentence--
                    (A) by striking out ``, preliminary or 
                otherwise,'', and
                    (B) by inserting ``, electronically pursuant to an 
                authorized electronic data interchange system or 
                otherwise,'' after ``may issue a permit'';
            (3) by striking out the last sentence and inserting the 
        following: ``The owner or master of any vessel or vehicle, or 
        agent thereof, shall notify the Customs Service of any 
        merchandise or baggage so unladen for which entry is not made 
        within the time prescribed by law or regulation. The Secretary 
        shall by regulation prescribe administrative penalties not to 
        exceed $1,000 for each bill of lading for which notice is not 
        given. Any such administrative penalty shall be subject to 
        mitigation and remittance under section 618. Such unentered 
        merchandise or baggage shall be the responsibility of the 
        master or person in charge of the importing vessel or vehicle, 
        or agent thereof, until it is removed from the carrier's 
        control in accordance with section 490.''; and
            (4) by striking out ``the appropriate customs officer'' and 
        ``such customs officer'' wherever they appear and inserting 
        ``the Customs Service''.

SEC. 306. DECLARATIONS.

    Section 485 (19 U.S.C. 1485) is amended--
            (1) by amending subsection (a)--
                    (A) by inserting ``or transmit electronically'' 
                after ``file'', and
                    (B) by inserting ``and manner'' after ``form'';
            (2) by amending subsection (d)--
                    (A) by striking out ``A importer'' and inserting 
                ``An importer'', and
                    (B) by striking out ``a importer'' and inserting 
                ``an importer''; and
            (3) by inserting after subsection (f) the following new 
        subsection:
    ``(g) Exported Merchandise Returned as Undeliverable.--With respect 
to any importation of merchandise to which General Headnote 4(e) of the 
Harmonized Tariff Schedule of the United States applies, any person who 
gained any benefit from, or met any obligation to, the United States as 
a result of the prior exportation of such merchandise shall, in 
accordance with regulations prescribed by the Secretary, within a 
reasonable time inform the Customs Service of the return of the 
merchandise.''.

SEC. 307. GENERAL ORDERS.

    Section 490 (19 U.S.C. 1490) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Incomplete Entry.--
            ``(1) Whenever--
                    ``(A) the entry of any imported merchandise is not 
                made within the time provided by law or by regulation 
                prescribed by the Secretary;
                    ``(B) the entry of imported merchandise is 
                incomplete because of failure to pay the estimated 
                duties, fees, or interest;
                    ``(C) in the opinion of the Customs Service, the 
                entry of imported merchandise cannot be made for want 
                of proper documents or other cause; or
                    ``(D) the Customs Service believes that any 
                merchandise is not correctly and legally invoiced;
        the carrier (unless subject to subsection (c)) shall notify the 
        bonded warehouse of such unentered merchandise.
            ``(2) After notification under paragraph (1), the bonded 
        warehouse shall arrange for the transportation and storage of 
        the merchandise at the risk and expense of the consignee. The 
        merchandise shall remain in the bonded warehouse until--
                    ``(A) entry is made or completed and the proper 
                documents are produced;
                    ``(B) the information and data necessary for entry 
                are transmitted to the Customs Service pursuant to an 
                authorized electronic data interchange system; or
                    ``(C) a bond is given for the production of 
                documents or the transmittal of data.'';
            (2) by amending subsection (b)--
                    (A) by amending the heading for subsection (b) to 
                read as follows: ``(b) Request for Possession by 
                Customs.--'', and
                    (B) by striking out ``appropriate customs officer'' 
                and inserting ``Customs Service''; and
            (3) by adding at the end the following new subsection:
    ``(c) Government Merchandise.--Any imported merchandise that--
            ``(1) is described in any of paragraphs (1) through (4) of 
        subsection (a); and
            ``(2) is consigned to, or owned by, the United States 
        Government;
shall be stored and disposed of in accordance with such rules and 
procedures as the Secretary shall by regulation prescribe.''.

SEC. 308. UNCLAIMED MERCHANDISE.

    Section 491 (19 U.S.C. 1491) is amended--
            (1) by amending subsection (a)--
                    (A) by striking out ``customs custody for one 
                year'' in the first sentence and inserting ``in a 
                bonded warehouse pursuant to section 490 for 6 
                months'',
                    (B) by striking out ``public store or bonded 
                warehouse for a period of one year'' in the second 
                sentence and inserting ``pursuant to section 490 in a 
                bonded warehouse for 6 months'',
                    (C) by striking out ``estimated duties and 
                storage'' in the first sentence and inserting 
                ``estimated duties, taxes, fees, interest, storage,'',
                    (D) by inserting ``taxes, fees, interest,'' after 
                ``duties,'' wherever it appears, and
                    (E) by striking out ``duties'' in the last sentence 
                and inserting ``duties, taxes, interest, and fees''; 
                and
            (2) by redesignating subsection (b) as subsection (e) and 
        inserting after subsection (a) the following new subsections:
    ``(b) Notice of Title Vesting in the United States.--At the end of 
the 6-month period referred to in subsection (a), the Customs Service 
may, in lieu of sale of the merchandise, provide notice to all known 
interested parties that the title to such merchandise shall be 
considered to vest in the United States free and clear of any liens or 
encumbrances, on the 30th day after the date of the notice unless, 
before such 30th day--
            ``(1) the subject merchandise is entered or withdrawn for 
        consumption; and
            ``(2) payment is made of all duties, taxes, fees, transfer 
        and storage charges, and other expenses that may have accrued 
        thereon.
    ``(c) Retention, Transfer, Destruction, or Other Disposition.--If 
title to any merchandise vests in the United States by operation of 
subsection (b), such merchandise may be retained by the Customs Service 
for official use, transferred to any other Federal agency or to any 
State or local agency, destroyed, or otherwise disposed of in 
accordance with such regulations as the Secretary shall prescribe. All 
transfer and storage charges or expenses accruing on transferred 
merchandise shall be paid by the receiving agency, otherwise the 
charges and expenses on such merchandise shall be paid out of the 
Customs Forfeiture Fund.
    ``(d) Petition.--Whenever any party, having lost a substantial 
interest in merchandise by virtue of title vesting in the United States 
under subsection (b), can establish such title or interest to the 
satisfaction of the Secretary within 30 days after the day on which 
title vests in the United States under subsection (b), or can establish 
to the satisfaction of the Secretary that the party did not receive 
notice under subsection (b), the Secretary may, upon receipt of a 
timely and proper petition and upon finding that the facts and 
circumstances warrant, pay such party out of the Customs Forfeiture 
Fund the amount the Secretary believes the party would have received 
under section 493 had the merchandise been sold and a proper claim 
filed. The decision of the Secretary with respect to any such petition 
is final and conclusive on all parties.''; and
            (3) by amending subsection (e) (as so redesignated) by 
        striking out ``appropriate customs officer'' in paragraph (3) 
        and inserting ``Customs Service''.

SEC. 309. DESTRUCTION OF MERCHANDISE.

    Section 492 (19 U.S.C. 1492) is amended--
            (1) by inserting ``, retained for official use, or 
        otherwise disposed of'' after ``destroyed''; and
            (2) by striking out ``appropriate customs officer'' and 
        inserting ``Customs Service''.

SEC. 310. PROCEEDS OF SALE.

    Section 493 (19 U.S.C. 1493) is amended--
            (1) by inserting ``taxes, and fees,'' after ``duties,'';
            (2) by striking out ``by the appropriate customs officer in 
        the Treasury of the United States'' and inserting ``in the 
        Customs Forfeiture Fund''; and
            (3) by striking out ``such customs officer'' and inserting 
        ``the Customs Service''.

SEC. 311. ENTRY UNDER REGULATIONS.

    Section 498(a) (19 U.S.C. 1498(a)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) Merchandise, when--
                    ``(A) the aggregate value of the shipment does not 
                exceed an amount specified by the Secretary by 
                regulation, but not more than $2,500; or
                    ``(B) different commercial facilitation and risk 
                considerations that may vary for different classes or 
                kinds of merchandise or different classes of 
                transactions may dictate;''; and
            (2) by striking out ``$10,000'' in paragraph (2) and 
        inserting ``such amounts as the Secretary may prescribe''.

SEC. 312. AMERICAN TRADEMARKS.

    Section 526(e)(3) (19 U.S.C. 1526(e)(3)) is amended--
            (1) by striking out ``1 year'' and inserting ``90 days''; 
        and
            (2) by striking out ``appropriate customs officers'' and 
        inserting ``the Customs Service''.

SEC. 313. SEIZURE.

    Section 612 (19 U.S.C. 1612) is amended--
            (1) by amending subsection (a)--
                    (A) by striking out ``the appropriate customs 
                officer'', ``such officer'' and ``the customs officer'' 
                wherever they appear and inserting ``the Customs 
                Service'', and
                    (B) by striking out ``the appraiser's return and 
                his'' and inserting ``its''; and
            (2) by amending subsection (b) to read as follows:
    ``(b) If the Customs Service determines that the expense of keeping 
the vessel, vehicle, aircraft, merchandise, or baggage is 
disproportionate to the value thereof, the Customs Service may promptly 
order the destruction or other appropriate disposition of such property 
under regulations prescribed by the Secretary. No customs officer shall 
be liable for the destruction or other disposition of property made 
pursuant to this section.''.

SEC. 314. CUSTOMS FORFEITURE FUND.

    (a) Amendment.--Section 613A (19 U.S.C. 1613b) is amended--
            (1) by redesignating subparagraphs (E) and (F) of 
        subsection (a)(3) as subparagraphs (G) and (H), respectively;
            (2) by inserting after subparagraph (D) of subsection 
        (a)(3) the following new subparagraphs:
                    ``(E) the payment of transfer and storage charges 
                and expenses under section 491(c);
                    ``(F) the payment of claims against employees of 
                the Customs Service settled by the Secretary under 
                section 630;''; and
            (3) by striking out ``shall'' in subsection (d) and 
        inserting ``may''.
    (b) Reference.--After the effective date of section 9703 of title 
31, United States Code, any reference in the Tariff Act of 1930 to the 
Customs Forfeiture Fund shall be treated as being a reference to the 
Department of the Treasury Forfeiture Fund established by such section 
9703.

SEC. 315. LIMITATION ON ACTIONS.

    Section 621 (19 U.S.C. 1621) is amended--
            (1) by inserting ``any duty under section 592(d), 593A(d), 
        or'' before ``any pecuniary penalty''; and
            (2) by striking out ``discovered:'' and all that follows 
        thereafter and inserting the following: ``discovered; except 
        that--
            ``(1) in the case of an alleged violation of section 592 or 
        593A, no suit or action (including a suit or action for 
        restoration of lawful duties under subsection (d) of such 
        sections) may be instituted unless commenced within 5 years 
        after the date of the alleged violation or, if such violation 
        arises out of fraud, within 5 years after the date of discovery 
        of fraud, and
            ``(2) the time of the absence from the United States of the 
        person subject to the penalty or forfeiture, or of any 
        concealment or absence of the property, shall not be reckoned 
        within the 5-year period of limitation.''.

SEC. 316. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES.

    The Tariff Act of 1930 is amended by inserting after section 528 
the following new section:

``SEC. 529. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES.

    ``The Customs Service shall be reimbursed from the fees collected 
for the cost and expense, administrative and otherwise, incurred in 
collecting any fees on behalf of any government agency for any 
reason.''.

SEC. 317. AUTHORITY TO SETTLE CLAIMS.

    The Tariff Act of 1930 is amended by inserting after section 629 
the following new section:

``SEC. 630. AUTHORITY TO SETTLE CLAIMS.

    ``(a) In General.--Notwithstanding any other provision of law and 
subject to subsection (b), the Secretary may settle, for not more than 
$50,000 in any one case, a claim for personal injury, death, or damage 
to, or loss of, privately owned property caused by an investigative or 
law enforcement officer (as defined in section 2680(h) of title 28, 
United States Code) who is employed by the Customs Service and acting 
within the scope of his or her employment.
    ``(b) Limitations.--The Secretary may not pay a claim under 
subsection (a) that--
            ``(1) concerns commercial property;
            ``(2) is presented to the Secretary more than 1 year after 
        it occurs; or
            ``(3) is presented by an officer or employee of the United 
        States Government and arose within the scope of employment.
    ``(c) Final Settlement.--A claim may be paid under this section 
only if the claimant accepts the amount of settlement in complete 
satisfaction of the claim.''.

SEC. 318. USE OF PRIVATE COLLECTION AGENCIES.

    The Tariff Act of 1930 is amended by inserting after section 630 
the following new section:

``SEC. 631. USE OF PRIVATE COLLECTION AGENCIES.

    ``(a) In General.--Notwithstanding any other provision of law, the 
Secretary, under such terms and conditions as the Secretary considers 
appropriate, shall enter into contracts and incur obligations with one 
or more persons for collection services to recover indebtedness arising 
under the customs laws and owed the United States Government, but only 
after the Customs Service has exhausted all administrative efforts, 
including all claims against applicable surety bonds, to collect the 
indebtedness.
    ``(b) Contract Requirements.--Any contract entered into under 
subsection (a) shall provide that--
            ``(1) the Secretary retains the authority to resolve a 
        dispute, compromise a claim, end collection action, and refer a 
        matter to the Attorney General to bring a civil action; and
            ``(2) the person is subject to--
                    ``(A) section 552a of title 5, United States Code, 
                to the extent provided in subsection (m) of such 
                section; and
                    ``(B) laws and regulations of the United States 
                Government and State governments related to debt 
                collection practices.''.

  TITLE IV--MISCELLANEOUS PROVISIONS AND CONSEQUENTIAL AND CONFORMING 
                        AMENDMENTS TO OTHER LAWS

SEC. 401. AMENDMENTS TO THE HARMONIZED TARIFF SCHEDULE.

    (a) Return Shipments.--General Note 4 of the Harmonized Tariff 
Schedule of the United States is amended--
            (1) by striking out ``and'' at the end of subdivision (c);
            (2) by inserting ``and'' after ``1930,'' in subdivision 
        (d);
            (3) by inserting after subdivision (d) the following:
            ``(e) articles exported from the United States which are 
        returned within 45 days after such exportation from the United 
        States as undeliverable and which have not left the custody of 
        the carrier or foreign customs service,''; and
            (4) by adding at the end the following new sentence: ``No 
        exportation referred to in subdivision (e) may be treated as 
        satisfying any requirement for exportation in order to receive 
        a benefit from, or meet an obligation to, the United States as 
        a result of such exportation.''.
    (b) Entry Not Required for Locomotives and Railway Freight Cars.--
            (1) The Notes to chapter 86 of such Schedule are amended by 
        inserting after note 3 the following new note:
``4. Railway locomotives (provided for in headings 8601 and 8602) and 
railway freight cars (provided for in heading 8606) on which no duty is 
owed are not subject to the entry or release requirements for imported 
merchandise set forth in sections 448 and 484 of the Tariff Act of 
1930. The Secretary of the Treasury may by regulation establish 
appropriate reporting requirements, including the requirement that a 
bond be posted to ensure compliance.''.
            (2) The U.S. Notes to subchapter V of chapter 99 of such 
        Schedule are amended by inserting after note 8 the following 
        new note:
``9. Railway freight cars provided for in subheadings 9905.86.05 and 
9905.86.10 are not subject to the entry or release requirements for 
imported merchandise set forth in sections 448 and 484 of the Tariff 
Act of 1930. The Secretary of the Treasury may by regulation establish 
appropriate reporting requirements, including the requirement that a 
bond be posted to ensure compliance.''.
    (c) Instruments of International Traffic.--The U.S. Notes to 
subchapter III of chapter 98 of such Schedule is amended by inserting 
after note 3 the following new note:
``4. Instruments of international traffic, such as containers, life 
vans, rail cars and locomotives, truck cabs and trailers, etc. are 
exempt from formal entry procedures but are required to be accounted 
for when imported and exported into and out of the United States, 
respectively, through the manifesting procedures required for all 
international carriers by the United States Customs Service. Fees 
associated with the importation of such instruments of international 
traffic shall be reported and paid on a periodic basis as required by 
regulations issued by the Secretary of the Treasury and in accordance 
with 1956 Customs Convention on Containers (20 UST 30; TIAS 6634).''.

SEC. 402. AMENDMENT TO THE INTERNAL REVENUE CODE OF 1986.

    Section 9505(c) of the Internal Revenue Code of 1986 is amended to 
read as follows:
    ``(c) Expenditures From the Harbor Maintenance Trust Fund.--
            ``(1) Amounts in the Harbor Maintenance Trust Fund shall be 
        available, as provided by appropriations Acts, for making 
        expenditures--
                    ``(A) to carry out section 210(a) of the Water 
                Resources Development Act of 1986 (as amended by the 
                Water Resources Development Act of 1990),
                    ``(B) for payments of rebates of tolls or charges 
                pursuant to section 13(b) of the Act of May 13, 1954 
                (as in effect on April 1, 1987), and
                    ``(C) for the payments of all administrative 
                expenses incurred by the Department of the Army, the 
                Department of the Treasury and the Department of 
                Commerce in administering the tax imposed by section 
                4461.
            ``(2) There are authorized to be appropriated to the 
        Department of the Army, out of the Harbor Maintenance Trust 
        Fund established by subsection (a), for each fiscal year not to 
        exceed $5,000,000 to be used by the Department of the Army to 
        provide payment of all administrative expenses incurred by the 
        Department of the Army, the Department of the Treasury, and the 
        Department of Commerce in administering the tax imposed by 
        section 4461.''.

SEC. 403. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

    (a) Amendments Relating to Accreditation of Private Laboratories.--
Title 28 of the United States Code is amended as follows:
            (1) Section 1581(g) is amended by--
                    (A) striking out ``and'' at the end of paragraph 
                (1);
                    (B) by striking out the period at the end of 
                paragraph (2) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) any decision or order of the Customs Service to deny, 
        suspend, or revoke accreditation of a private laboratory under 
        section 499(b) of the Tariff Act of 1930.''.
            (2) Section 2631(g) is amended by inserting at the end the 
        following new paragraph:
    ``(3) A civil action to review any decision or order of the Customs 
Service to deny, suspend, or revoke accreditation of a private 
laboratory under section 499(b) of the Tariff Act of 1930 may be 
commenced in the Court of International Trade by the person whose 
accreditation was denied, suspended, or revoked.''.
            (3) Section 2636 is amended--
                    (A) by redesignating subsection (h) as subsection 
                (i); and
                    (B) by inserting after subsection (g) the following 
                new subsection:
    ``(h) A civil action contesting the denial, suspension, or 
revocation by the Customs Service of a private laboratory's 
accreditation under section 499(b) of the Tariff Act of 1930 is barred 
unless commenced in accordance with the rules of the Court of 
International Trade within 60 days after the date of the decision or 
order of the Customs Service.''.
            (4) Section 2640 is amended--
                    (A) by redesignating subsection (d) as subsection 
                (e); and
                    (B) by inserting after subsection (c) the following 
                new subsection:
    ``(d) In any civil action commenced to review any order or decision 
of the Customs Service under section 499(b) of the Tariff Act of 1930, 
the court shall review the action on the basis of the record before the 
Customs Service at the time of issuing such decision or order.''.
            (5) Section 2642 is amended by inserting before the period 
        the following: ``or laboratories accredited by the Customs 
        Service under section 499(b) of the Tariff Act of 1930''.
    (b) Application of Subsection (a) Amendments.--For purposes of 
applying the amendments made by subsection (a), any decision or order 
of the Customs Service denying, suspending, or revoking the 
accreditation of a private laboratory on or after the date of the 
enactment of this Act and before regulations to implement section 
499(b) of the Tariff Act of 1930 are issued shall be treated as having 
been denied, suspended, or revoked under such section 499(b).
    (c) Jurisdiction of Court.--Section 1582(1) of title 28, United 
States Code, is amended by inserting ``593A,'' after ``592,''.
    (d) Filing of Official Documents.--Section 2635(a) of title 28, 
United States Code, is amended to read as follows:
    ``(a) In any action commenced in the Court of International Trade 
contesting the denial of a protest under section 515 of the Tariff Act 
of 1930 or the denial of a petition under section 516 of such Act, the 
Customs Service, as prescribed by the rules of the court, shall file 
with the clerk of the court, as part of the official record, any 
document, paper, information or data relating to the entry of 
merchandise and the administrative determination that is the subject of 
the protest or petition.''.

SEC. 404. AMENDMENTS TO THE REVISED STATUTES OF THE UNITED STATES.

    (a) Enrolled or Licensed Vessels.--Section 2793 of the Revised 
Statutes of the United States (19 U.S.C. 288; 46 U.S.C. App. 111, 123) 
is amended by striking out the first semicolon and all the text that 
follows thereafter and inserting a period.
    (b) Registered Vessels at Foreign Ports.--Section 3126 of such 
Revised Statutes (19 U.S.C. 293) is amended--
            (1) by striking out ``Any vessel, on being duly registered 
        in pursuance of the laws of the United States,'' and inserting 
        ``Any United States documented vessel with a registry and 
        coastwise endorsements''; and
            (2) by striking out all the text occurring after the first 
        sentence.
    (c) Clearance Requirements.--Section 4197 of such Revised Statutes 
(46 U.S.C. App. 91) is amended to read as follows:

``SEC. 4197. CLEARANCE; VESSELS.

    ``(a) When Required; Vessels of the United States.--Except as 
otherwise provided by law, any vessel of the United States shall obtain 
clearance from the Customs Service before proceeding from a port or 
place in the United States--
            ``(1) for a foreign port or place;
            ``(2) for another port or place in the United States if the 
        vessel has on board bonded merchandise or foreign merchandise 
        for which entry has not been made; or
            ``(3) outside the territorial sea to visit a hovering 
        vessel or to receive merchandise while outside the territorial 
        sea.
    ``(b) When Required; Other Vessels.--Except as otherwise provided 
by law, any vessel that is not a vessel of the United States shall 
obtain clearance from the Customs Service before proceeding from a port 
or place in the United States--
            ``(1) for a foreign port or place;
            ``(2) for another port or place in the United States; or
            ``(3) outside the territorial sea to visit a hovering 
        vessel or to receive or deliver merchandise while outside the 
        territorial sea.
    ``(c) Regulations.--The Secretary of the Treasury may by 
regulation--
            ``(1) prescribe the manner in which clearance under this 
        section is to be obtained, including the documents, data or 
        information which shall be submitted or transmitted, pursuant 
        to an authorized data interchange system, to obtain the 
        clearance;
            ``(2) permit the Customs Service to grant clearance for a 
        vessel under this section before all requirements for clearance 
        are complied with, but only if the owner or operator of the 
        vessel files a bond in an amount set by the Secretary of the 
        Treasury conditioned upon the compliance by the owner or 
        operator with all specified requirements for clearance within a 
        time period (not exceeding 4 business days) established by the 
        Secretary of the Treasury; and
            ``(3) authorize the Customs Service to permit clearance of 
        any vessel to be obtained at a place other than a designated 
        port of entry, under such conditions as he may prescribe.''.

SEC. 405. AMENDMENTS TO TITLE 18, UNITED STATES CODE.

    Section 965(a) of title 18, United States Code, is amended--
            (1) by striking out ``sections 91, 92, and 94 of Title 46'' 
        and inserting ``section 431 of the Tariff Act of 1930 (19 
        U.S.C. 1431) and section 4197 of the Revised Statutes of the 
        United States (46 U.S.C. App. 91),'';
            (2) by striking out ``the collector of customs for the 
        district wherein such vessel is then located'' and inserting 
        ``the Customs Service''; and
            (3) by striking out ``the collector like'' and inserting in 
        lieu thereof ``the Customs Service like''.

SEC. 406. AMENDMENT TO THE ACT TO PREVENT POLLUTION FROM SHIPS.

    Section 9(e) of the Act to Prevent Pollution from Ships (94 Stat. 
2301, 33 U.S.C. 1908(e)) is amended by striking out ``shall refuse or 
revoke'' and all of the text following thereafter and inserting ``shall 
refuse or revoke the clearance required by section 4197 of the Revised 
Statutes of the United States (46 U.S.C. App. 91). Clearance may be 
granted upon the filing of a bond or other surety satisfactory to the 
Secretary.''.

SEC. 407. AMENDMENTS TO THE ACT OF NOVEMBER 6, 1966.

    Sections 2(e) and 3(e) of the Act of November 6, 1966 (46 U.S.C. 
App. 817d(e) and 817e(e)) are each amended--
            (1) by striking out ``The collector of customs at'' and 
        inserting ``At''; and
            (2) by inserting ``, the Customs Service'' after 
        ``subsection (a) of this section''.

SEC. 408. REPEAL OF OBSOLETE PROVISIONS OF LAW.

    (a) Revised Statutes.--The following provisions of the Revised 
Statutes of the United States are repealed:
            (1) So much of section 2792 as is codified at 19 U.S.C. 289 
        and 46 U.S.C. App. 110 and 112 (as in effect on the date of the 
        enactment of this Act).
            (2) Section 3111 (19 U.S.C. 282).
            (3) Section 3118 (19 U.S.C. 286).
            (4) Section 3119 (19 U.S.C. 287).
            (5) Section 3122 (19 U.S.C. 290).
            (6) Section 3124 (19 U.S.C. 291).
            (7) Section 3125 (19 U.S.C. 292).
            (8) Section 4198 (46 U.S.C. App. 94).
            (9) Section 4199 (46 U.S.C. App. 93).
            (10) Section 4201 (46 U.S.C. App. 96).
            (11) Section 4207.
            (12) Section 4208 (46 U.S.C. App. 102).
            (13) Section 4213 (46 U.S.C. App. 101).
            (14) So much of section 4221 as is codified at 46 U.S.C. 
        App. 113 (as in effect on the date of the enactment of this 
        Act).
            (15) Section 4222 (46 U.S.C. App. 126).
            (16) Section 4332 (46 U.S.C. App. 274).
            (17) Section 4348 (46 U.S.C. App. 293).
            (18) Section 4358 (46 U.S.C. App. 306).
            (19) Section 4361 (46 U.S.C. App. 307).
            (20) Sections 4362 through 4369 (46 U.S.C. App. 308 through 
        315).
            (21) Sections 4573 through 4576 (46 U.S.C. App. 674 through 
        677).
    (b) Tariff Act of 1930.--The following sections of the Tariff Act 
of 1930 are repealed:
            (1) Section 432 (19 U.S.C. 1432).
            (2) Section 435 (19 U.S.C. 1435).
            (3) Section 437 (19 U.S.C. 1437).
            (4) Section 439 (19 U.S.C. 1439).
            (5) Section 440 (19 U.S.C. 1440).
            (6) Sections 443, 444, and 445 (19 U.S.C. 1443, 1444, and 
        1445).
            (7) Section 465 (19 U.S.C. 1465).
            (8) Section 482 (19 U.S.C. 1482).
            (9) Section 583 (19 U.S.C. 1583).
            (10) Section 585 (19 U.S.C. 1585).
    (c) Miscellaneous Provisions.--The following provisions are 
repealed:
            (1) The last undesignated paragraph of section 201 of the 
        Act of August 5, 1935 (19 U.S.C. 1432a), is repealed.
            (2) The Act of June 16, 1937 (19 U.S.C. 1435b).
            (3) Section 1 of the Act of July 3, 1926 (46 U.S.C. App. 
        293a).
            (4) The Act of May 4, 1934 (46 U.S.C. App. 91a).
            (5) Section 1403(b) of the Water Resources Development Act 
        of 1986 (Public Law 99-662; 26 U.S.C. 4461 note).

SEC. 409. REPORTS TO CONGRESS.

    (a) Antidumping and Countervailing Duty Collections.--The 
Commissioner of Customs shall before the 60th day of each fiscal year 
after fiscal year 1992 submit to Congress a report regarding the 
collection during the preceding fiscal year of duties imposed under the 
antidumping and countervailing duty laws.
    (b) CES Fee Report.--
            (1) Amendment.--Section 9501(c) of the Omnibus Budget 
        Reconciliation Act of 1987 (19 U.S.C. 3 note) is amended by 
        adding at the end the following new paragraph:
            ``(3) The Commissioner of Customs is authorized to obtain 
        from the operators of centralized cargo examination stations 
        information regarding the fees paid to them for the provision 
        of services at these stations.''.
            (2) Report.--Within 9 months after the date of the 
        enactment of this subsection, the Commissioner of Customs shall 
        submit to the Committees referred to in section 9501(c) of the 
        Omnibus Budget Reconciliation Act of 1987, a report setting 
        forth--
                    (A) an estimate of the aggregate amount of fees 
                paid to operators of centralized cargo examination 
                stations during fiscal year 1992; and
                    (B) the variations, if any, among customs districts 
                with respect to the amounts of the fees charged for 
                centralized cargo examination station services.
    (c) Compliance With Customs Laws.--Section 123 of the Customs and 
Trade Act of 1990 (19 U.S.C. 2083) is amended--
            (1) by redesignating subsection (d) as subsection (e), and
            (2) by inserting after subsection (c) the following:
    ``(d) Compliance Program.--The Commissioner of Customs shall--
            ``(1) devise and implement a methodology for estimating the 
        level of compliance with the laws administered by the Customs 
        Service; and
            ``(2) include as an additional part of the report required 
        to be submitted under subsection (a) for each of fiscal years 
        1993, 1994, and 1995, an evaluation of the extent to which such 
        compliance was obtained during the 12-month period preceding 
        the 60th day before each such fiscal year.''.
    (d) Courier Services Compliance Report.--The Commissioner of 
Customs shall initiate a compliance review of certain courier services 
which may not be eligible for benefits under the regulations of the 
Customs Service prescribed in part 128 of title 19 of the Code of 
Federal Regulations and shall submit a report to Congress on the 
results of such review within 1 year after the date of the enactment of 
this Act.

SEC. 410. APPLICABILITY OF AMENDMENTS TO ENTRY OR WITHDRAWAL OF GOODS.

    Any amendment made by this title that is applicable to the entry, 
or withdrawal from warehouse for consumption, of goods applies to any 
such entry or withdrawal that is made on or after the 15th day after 
the date of the enactment of this Act.

                                 <all>

HR 700 SC----2
HR 700 SC----3
HR 700 SC----4
HR 700 SC----5
HR 700 SC----6
HR 700 SC----7
HR 700 SC----8
HR 700 SC----9