[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3658 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 3658

  To reauthorize customs and trade functions and programs in order to 
 facilitate legitimate international trade with the United States, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 13, 2006

  Mr. Grassley (for himself and Mr. Baucus) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To reauthorize customs and trade functions and programs in order to 
 facilitate legitimate international trade with the United States, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Customs and Trade 
Facilitation Reauthorization Act of 2006''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
           TITLE I--CUSTOMS AND TRADE FACILITATION FUNCTIONS

        Subtitle A--Functions Other Than Investigative Functions

Sec. 101. Establishment of Bureau; Commissioner.
Sec. 102. Officer and employees.
Sec. 103. Separate budget for Bureaus.
Sec. 104. Revolving fund.
Sec. 105. Authorization of appropriations.
Sec. 106. Advances in foreign countries.
Sec. 107. Advances for enforcement of customs provisions.
Sec. 108. Certification of reason for advance.
Sec. 109. Payments in foreign countries; claims for reimbursement.
Sec. 110. Undercover investigative operations.
Sec. 111. Customs administration.
Sec. 112. Annual national trade and customs law violation estimates and 
                            enforcement strategy.
Sec. 113. Conforming amendment.
                  Subtitle B--Investigative Functions

Sec. 121. Establishment of Bureau.
           TITLE II--CUSTOMS AND TRADE FACILITATION PROGRAMS

Sec. 201. Definitions.
          Subtitle A--Bilateral and Multilateral Negotiations

Sec. 211. Bilateral customs partnerships.
Sec. 212. Multilateral customs negotiations.
                  Subtitle B--Customs Data Collection

Sec. 221. International trade data system.
Sec. 222. Authorization of appropriations.
                Subtitle C--Trade Facilitation Programs

Sec. 231. Establishment of a voluntary customs industry partnership 
                            program.
Sec. 232. Trade resumption plan.
Sec. 233. Automated Targeting System.
Sec. 234. Drawback for exported merchandise.
Sec. 235. Final authority over matters relating to customs brokers.
Sec. 236. Advisory Committee.
Sec. 237. Study and report.
                   Subtitle D--Staffing and Resources

Sec. 241. Staffing for commercial operations and revenue functions of 
                            the Bureau of Customs and Border 
                            Protection.
  TITLE III--AUTHORIZATION OF APPROPRIATIONS FOR OTHER TRADE AGENCIES

Sec. 301. Authorization of appropriations for United States 
                            International Trade Commission.
Sec. 302. Authorization of appropriations for the Office of the United 
                            States Trade Representative.
                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Methamphetamine and methamphetamine precursor chemicals.
Sec. 402. United States port and terminal operator competitiveness.
Sec. 403. Charter flights.
Sec. 404. Technical amendments to customs modernization.
Sec. 405. Articles repaired or altered.

           TITLE I--CUSTOMS AND TRADE FACILITATION FUNCTIONS

        Subtitle A--Functions Other Than Investigative Functions

SEC. 101. ESTABLISHMENT OF BUREAU; COMMISSIONER.

    The first section of the Act of March 3, 1927 (44 Stat. 1381, 
chapter 348; 19 U.S.C. 2071), is amended to read as follows:

``SECTION 1. ESTABLISHMENT OF BUREAU; COMMISSIONER.

    ``(a) Establishment of Bureau.--There shall be in the Department of 
Homeland Security a bureau to be known as the Bureau of Customs and 
Border Protection, and a Commissioner of Customs. The Commissioner of 
Customs, who shall be appointed by the President by and with the advice 
and consent of the Senate, shall--
            ``(1) be at the head of the Bureau of Customs and Border 
        Protection;
            ``(2) carry out the duties and powers prescribed by the 
        Secretary of Homeland Security and by law; and
            ``(3) report directly to the Deputy Secretary of Homeland 
        Security.
    ``(b) Compensation.--The Commissioner of Customs, Department of 
Homeland Security, shall be compensated at the rate of pay for level 
III of the Executive Schedule in section 5314 of title 5, United States 
Code.''.

SEC. 102. OFFICER AND EMPLOYEES.

    Section 2 of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 
19 U.S.C. 2072), is amended to read as follows:

``SEC. 2. OFFICERS AND EMPLOYEES OF BUREAU.

    ``(a) Deputy Commissioner and Other Officers.--The Secretary of 
Homeland Security is authorized to appoint, in the Bureau established 
by section 1, one deputy commissioner, and such other officers as are 
necessary to manage the individual offices within the Bureau. 
Appointments under this subsection shall be subject to the provisions 
of the civil service laws, and the salaries shall be fixed in 
accordance with chapter 51 and subchapter III of chapter 53 of title 5, 
United States Code.
    ``(b) Absence or Disability of Commissioner.--The Secretary of 
Homeland Security is authorized to designate an officer of the Bureau 
of Customs and Border Protection as Commissioner of Customs, during the 
absence or disability of the Commissioner of Customs, or in the event 
that there is no Commissioner of Customs.
    ``(c) Duties of Personnel.--The personnel of the Bureau of Customs 
and Border Protection shall perform any customs revenue function 
delegated by the Secretary of the Treasury to the Secretary of Homeland 
Security pursuant to section 412 of the Homeland Security Act of 2002 
(6 U.S.C. 212), other than the conduct of a commercial investigation in 
connection with such delegated function, and such other duties as the 
Secretary of Homeland Security may prescribe or are prescribed by 
law.''.

SEC. 103. SEPARATE BUDGET FOR BUREAUS.

    (a) In General.--The President shall include in each budget 
transmitted to Congress under section 1105 of title 31, United States 
Code, a separate budget request for the Bureau of Customs and Border 
Protection and a separate budget request for the Bureau of Immigration 
and Customs Enforcement.
    (b) Repeal.--Section 414 of the Homeland Security Act of 2002 (6 
U.S.C. 214) is hereby repealed.

SEC. 104. REVOLVING FUND.

    The matter under the heading ``revolving fund, bureau of customs'' 
in the Treasury and Post Office Departments Appropriations Act, 1950 
(63 Stat. 360; 19 U.S.C. 2074) (as amended by Treasury Department Order 
No. 165-23, effective August 1, 1973), is amended by striking ``United 
States Customs Service'' and inserting ``Bureau of Customs and Border 
Protection''.

SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 301 of the Customs Procedural Reform and 
Simplification Act of 1978 (19 U.S.C. 2075) is amended to read as 
follows:

``SEC. 301. APPROPRIATIONS AUTHORIZATION.

    ``(a) In General.--For the fiscal year beginning October 1, 2006, 
and each fiscal year thereafter, there are authorized to be 
appropriated to the Department of Homeland Security for the Bureau of 
Customs and Border Protection only such sums as may hereafter be 
authorized by law.
    ``(b) Merchandise Processing Fee.--The monies authorized to be 
appropriated pursuant to subsection (a) for any fiscal year, except for 
such sums as may be necessary for the salaries and expenses of the 
Bureau of Customs and Border Protection that are incurred in connection 
with the processing of merchandise that is exempt from the fees imposed 
pursuant to section 13031(a) (9) and (10) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a) (9) and (10)) shall 
be appropriated from the Customs User Fee Account.
    ``(c) Mandatory 10-Day Deferment.--No part of the funds 
appropriated under subsection (a) for any fiscal year may be used to 
provide less time for the collection of estimated duties than the 10-
day deferment procedure in effect on January 1, 1981.
    ``(d) Overtime Pay Limitations; Waiver.--No part of the funds 
appropriated pursuant to subsection (a) for any fiscal year may be used 
for administrative expenses to pay any employee of the Bureau of 
Customs and Border Protection overtime pay in an amount exceeding 
$35,000 unless the Secretary of Homeland Security, or the designee of 
the Secretary, determines on an individual basis that payment of 
overtime pay to such employee in an amount exceeding $35,000 is 
necessary for national security purposes, to prevent excessive costs, 
or to meet emergency requirements of the Bureau.
    ``(e) Pay Comparability Authorization.--For the fiscal year 
beginning October 1, 2006, and for each fiscal year thereafter, there 
are authorized to be appropriated to the Department of Homeland 
Security for salaries of the Bureau of Customs and Border Protection 
such additional sums as may be provided by law to reflect pay rate 
changes made in accordance with the Federal Pay Comparability Act of 
1970 (84 Stat. 1946, Public Law 91-656).
    ``(f) Use of Savings Resulting From Administrative 
Consolidations.--If savings in salaries and expenses result from the 
consolidation of administrative functions within the Bureau of Customs 
and Border Protection, the Commissioner of Customs shall apply the 
savings, to the extent the savings are not needed to meet emergency 
requirements of the Bureau, to strengthening the commercial operations 
of the Bureau by increasing the number of inspectors, import 
specialists, auditors, and other line operational positions.
    ``(g) Allocation of Resources; Report to Congressional 
Committees.--The Commissioner of Customs shall notify the Committee on 
Finance of the Senate and the Committee on Ways and Means of the House 
of Representatives at least 180 days prior to taking any action that 
would--
            ``(1) result in any significant reduction in force of 
        employees of the Bureau of Customs and Border Protection other 
        than by means of attrition;
            ``(2) result in any significant reduction in hours of 
        operation or services rendered at any office of the Bureau of 
        Customs and Border Protection or any port of entry;
            ``(3) eliminate or relocate any office of the Bureau of 
        Customs and Border Protection;
            ``(4) eliminate any port of entry; or
            ``(5) significantly reduce the number of employees assigned 
        to any office or any function of the Bureau of Customs and 
        Border Protection.''.
    (b) Conforming Amendments.--
            (1) In general.--Section 5(c) of the Act of February 13, 
        1911 (19 U.S.C. 267(c)), is amended to read as follows:
    ``(c) Limitations.--
            ``(1) Fiscal year cap.--The aggregate of overtime pay under 
        subsection (a) of this section (including commuting 
        compensation under subsection (a)(2)(B) of this section) and 
        premium pay under subsection (b) of this section that an 
        employee of the Bureau of Customs and Border Protection may be 
        paid in any fiscal year may not exceed $35,000 unless the 
        Secretary of Homeland Security, or the designee of the 
        Secretary, determines on an individual basis that payment of 
        overtime pay to such employee in an amount exceeding $35,000 is 
        necessary for national security purposes, to prevent excessive 
        costs, or to meet emergency requirements of the Bureau.
            ``(2) Exclusivity of pay under this section.--An employee 
        of the Bureau of Customs and Border Protection who receives 
        overtime pay under subsection (a) of this section or premium 
        pay under subsection (b) of this section for time worked may 
        not receive pay or other compensation for that work under any 
        other provision of law.''.
            (2) Basic pay.--Section 8331(3)(G) of title 5, United 
        States Code, is amended--
                    (A) by striking ``a customs officer'' and inserting 
                ``employee of the Bureau of Customs and Border 
                Protection''; and
                    (B) by striking ``customs officers'' and inserting 
                ``such employees''.

SEC. 106. ADVANCES IN FOREIGN COUNTRIES.

    The first section of the Act of May 6, 1930 (53 Stat. 660, chapter 
115; 19 U.S.C. 2076), is amended by striking ``United States Customs 
Service'' and inserting ``Bureau of Customs and Border Protection or 
the Bureau of Immigration and Customs Enforcement''.

SEC. 107. ADVANCES FOR ENFORCEMENT OF CUSTOMS PROVISIONS.

    Section 2 of the Act of August 7, 1939 (53 Stat. 1263, chapter 566; 
19 U.S.C. 2077), is amended to read as follows:

``SEC. 2. ADVANCES FOR ENFORCEMENT OF CUSTOMS PROVISIONS.

    ``The Commissioner of Customs and the Director of Immigration and 
Customs Enforcement, with the approval of the Secretary of Homeland 
Security and the Secretary of the Treasury, are each authorized to 
direct the advance of funds by the Fiscal Service in the Department of 
the Treasury, in connection with the enforcement of the customs 
laws.''.

SEC. 108. CERTIFICATION OF REASON FOR ADVANCE.

    Section 3 of the Act of August 7, 1939 (53 Stat. 1263, chapter 566; 
19 U.S.C. 2078), is amended by striking ``Commissioner of Customs'' and 
inserting ``Commissioner of Customs or the Director of Immigration and 
Customs Enforcement''.

SEC. 109. PAYMENTS IN FOREIGN COUNTRIES; CLAIMS FOR REIMBURSEMENT.

    Section 4 of the Act of August 7, 1939 (53 Stat. 1263, chapter 566; 
19 U.S.C. 2079), is amended to read as follows:

``SEC. 4. PAYMENTS IN FOREIGN COUNTRIES; CLAIMS FOR REIMBURSEMENT.

    ``The provisions of this Act shall not affect payments made for the 
Bureau of Customs and Border Protection or the Bureau of Immigration 
and Customs Enforcement in foreign countries, nor the right of any 
officer or employee of such bureaus to claim reimbursement for personal 
funds expended in connection with the enforcement of the customs 
laws.''.

SEC. 110. UNDERCOVER INVESTIGATIVE OPERATIONS.

    Section 3131 of the Customs Enforcement Act of 1986 (19 U.S.C. 
2081) is amended to read as follows:

``SEC. 3131. UNDERCOVER INVESTIGATIVE OPERATIONS OF THE BUREAU OF 
              IMMIGRATION AND CUSTOMS ENFORCEMENT.

    ``(a) Certification Required for Exemption of Undercover Operations 
From Certain Laws.--With respect to any undercover investigative 
operation of the Bureau of Immigration and Customs Enforcement (in this 
section referred to as the `Bureau') that is necessary for the 
detection and prosecution of offenses against the United States that 
are within the jurisdiction of the Secretary of Homeland Security--
            ``(1) sums authorized to be appropriated may be used--
                    ``(A) to purchase property, buildings, and other 
                facilities, and to lease space, within the United 
                States, the District of Columbia, and the territories 
                and possessions of the United States without regard 
                to--
                            ``(i) sections 1341 and 3324 of title 31, 
                        United States Code;
                            ``(ii) sections 3732(a) and 3741 of the 
                        Revised Statutes of the United States (41 
                        U.S.C. 11(a) and 22);
                            ``(iii) section 305 of the Act of June 30, 
                        1949 (63 Stat. 396; 41 U.S.C. 255);
                            ``(iv) section 8141 of title 40, United 
                        States Code; and
                            ``(v) section 304(a) of the Federal 
                        Property and Administrative Services Act of 
                        1949 (41 U.S.C. 254(a)); and
                    ``(B) to establish or to acquire proprietary 
                corporations or business entities as part of the 
                undercover operation, and to operate such corporations 
                or business entities on a commercial basis, without 
                regard to sections 9102 and 9103 of title 31, United 
                States Code;
            ``(2) sums authorized to be appropriated for the Bureau and 
        the proceeds from the undercover operation, may be deposited in 
        banks or other financial institutions without regard to the 
        provisions of section 648 of title 18 and section 3302 of title 
        31, United States Code; and
            ``(3) the proceeds from the undercover operation may be 
        used to offset necessary and reasonable expenses incurred in 
        such operation without regard to the provision of section 3302 
        of title 31, United States Code;
only upon the written certification of the Director of the Bureau (or, 
if designated by the Director, such other officer within the Bureau) 
that any action authorized by paragraph (1), (2), or (3) of this 
subsection is necessary for the conduct of such undercover operation.
    ``(b) Liquidation of Corporations and Business Entities.--If a 
corporation or business entity established or acquired as part of an 
undercover operation under subsection (a)(1)(B) of this section with a 
net value over $50,000 is to be liquidated, sold, or otherwise disposed 
of, the Bureau, as much in advance as the Director (or, if designated 
by the Director, such other officer within the Bureau) determines is 
practicable, shall report the circumstances to the Secretary of 
Homeland Security and the Secretary of the Treasury. The proceeds of 
the liquidation, sale, or other disposition, after obligations are met, 
shall be deposited in the Treasury of the United States as 
miscellaneous receipts.
    ``(c) Deposit of Proceeds.--As soon as the proceeds from an 
undercover investigative operation with respect to which an action is 
authorized and carried out under paragraphs (2) and (3) of subsection 
(a) of this section are no longer necessary for the conduct of such 
operation, such proceeds or the balance of such proceeds remaining at 
the time shall be deposited into the Treasury of the United States as 
miscellaneous receipts.
    ``(d) Audits.--
            ``(1) In general.--The Bureau shall--
                    ``(A) conduct a detailed financial audit of each 
                undercover investigative operation that is closed in 
                each fiscal year, and--
                    ``(B) submit the results of the audit in writing to 
                the Secretary of Homeland Security and the Secretary of 
                the Treasury; and
                    ``(C) not later than 180 days after such undercover 
                operation is closed, submit a report to the Congress 
                concerning such audit.
            ``(2) Report.--The Bureau shall also submit a report 
        annually to the Congress specifying as to its undercover 
        investigative operations--
                    ``(A) the number, by program, of undercover 
                investigative operations pending at the end of the 1-
                year period for which such report is submitted;
                    ``(B) the number, by program, of undercover 
                investigative operations commenced in the 1-year period 
                preceding the period for which such report is 
                submitted; and
                    ``(C) the number, by program, of undercover 
                investigative operations closed in the 1-year period 
                preceding the period for which such report is submitted 
                and, with respect to each such closed undercover 
                operation, the results obtained and any civil claims 
                made with respect thereto.
    ``(e) Definitions.--For purposes of subsection (d), the following 
applies:
            ``(1) Closed.--The term `closed' refers to the earliest 
        point in time at which--
                    ``(A) all criminal proceedings (other than appeals) 
                are concluded; or
                    ``(B) covert activities are concluded, whichever 
                occurs later.
            ``(2) Employees.--The term `employees' means employees of 
        the Bureau, as defined in section 2105 of title 5, United 
        States Code.
            ``(3) Undercover investigative operation; undercover 
        operation.--
                    ``(A) In general.--The terms `undercover 
                investigative operation' and `undercover operation' 
                mean any undercover investigative operation of the 
                Bureau--
                            ``(i) in which--
                                    ``(I) the gross receipts (excluding 
                                interest earned) exceed $50,000; or
                                    ``(II) expenditures (other than 
                                expenditures for salaries of employees) 
                                exceed $150,000; and
                            ``(ii) which is exempt from section 3302 or 
                        9102 of title 31, United States Code.
                    ``(B) Exception.--Clauses (i) and (ii) of 
                subparagraph (A) shall not apply with respect to the 
                report required under paragraph (2) of subsection (d) 
                of this section.''.

SEC. 111. CUSTOMS ADMINISTRATION.

    Section 113 of the Customs and Trade Act of 1990 (19 U.S.C. 2082) 
is amended to read as follows:

``SEC. 113. CUSTOMS ADMINISTRATION.

    ``(a) In General.--The Commissioner of Customs and the Director of 
Immigration and Customs Enforcement each shall--
            ``(1) develop and implement accounting systems that 
        accurately determine and report the allocations made of the 
        personnel and other resources of the Bureau of Customs and 
        Border Protection and the Bureau of Immigration and Customs 
        Enforcement among the various operational functions of each 
        bureau, such as merchandise processing and trade and customs 
        law enforcement; and
            ``(2) develop and implement periodic labor distribution 
        surveys of major workforce activities within the Bureau of 
        Customs and Border Protection and the Bureau of Immigration and 
        Customs Enforcement to determine the costs of the various 
        operational functions of each Bureau and the extent to which 
        any such costs are being borne by the other bureau.
    ``(b) Survey Reports.--The Commissioner of Customs and the Director 
of Immigration and Customs Enforcement each shall, not later than June 
30, 2007, submit to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives a report on 
the results of the first surveys implemented under paragraph (2) of 
subsection (a).''.

SEC. 112. ANNUAL NATIONAL TRADE AND CUSTOMS LAW VIOLATION ESTIMATES AND 
              ENFORCEMENT STRATEGY.

    Section 123 of the Customs and Trade Act of 1990 (19 U.S.C. 2083) 
is amended to read as follows:

``SEC. 123. ANNUAL NATIONAL TRADE AND CUSTOMS LAW VIOLATION ESTIMATES 
              AND ENFORCEMENT STRATEGY.

    ``(a) Violation Estimates.--Not later than 30 days after the 
beginning of each fiscal year after fiscal year 2006, the Commissioner 
of Customs and the Director of Immigration and Customs Enforcement 
shall jointly submit to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives (in this 
section referred to as the `Committees') a report that contains 
estimates of--
            ``(1) the aggregate number and extent of nonvoluntarily 
        disclosed violations of the trade and customs laws listed under 
        subsection (b) that are likely to occur during the fiscal year; 
        and
            ``(2) the relative incidence of the violations estimated 
        under paragraph (1) among the various ports of entry and 
        customs regions within the customs territory of the United 
        States.
    ``(b) Applicable Statutory Provisions.--The Commissioner of Customs 
and the Director of Immigration and Customs Enforcement, after 
consultation with the Committees--
            ``(1) shall, before the end of fiscal year 2007, prepare a 
        list of those provisions of the trade and customs laws of the 
        United States for which the Bureau of Customs and Border 
        Protection and the Bureau of Immigration and Customs 
        Enforcement have enforcement responsibilities and to which the 
        reports required under subsection (a) of this section will 
        apply; and
            ``(2) may from time to time amend the list developed under 
        paragraph (1).
    ``(c) Enforcement Strategy.--Within 90 days after submitting a 
report under subsection (a) of this section for any fiscal year, the 
Commissioner of Customs and the Director of Immigration and Customs 
Enforcement shall jointly--
            ``(1) develop a national uniform enforcement strategy for 
        dealing, during that year, with the violations estimated in the 
        report; and
            ``(2) submit to the Committees a report setting forth the 
        details of the strategy.
    ``(d) Compliance Program.--The Commissioner of Customs and the 
Director of Immigration and Customs Enforcement shall jointly--
            ``(1) devise and implement a methodology for estimating the 
        level of compliance with the laws administered by the Bureau of 
        Customs and Border Protection and the Bureau of Immigration and 
        Customs Enforcement; and
            ``(2) include as an additional part of the report required 
        to be submitted under subsection (a) of this section for each 
        of fiscal years 2007, 2008, and 2009, 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.
    ``(e) Confidentiality.--The contents of any report submitted to the 
Committees under subsection (a) or (c)(2) of this section are 
confidential and disclosure of all or part of the contents is 
restricted to--
            ``(1) officers and employees of the United States 
        designated by the Commissioner of Customs and the Director of 
        Immigration and Customs Enforcement;
            ``(2) the chairman and ranking member of each of the 
        Committees; and
            ``(3) those members of each of the Committees and staff 
        persons of each of the Committees who are authorized by the 
        chairman thereof to have access to the contents.''.

SEC. 113. CONFORMING AMENDMENT.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Homeland Security, in consultation with the 
Secretary of the Treasury, shall submit a report to the Committee on 
Finance of the Senate and the Committee on Ways and Means of the House 
of Representatives of proposed conforming amendments to the statutes 
set forth in section 412(a)(2) of the Homeland Security Act of 2002 (6 
U.S.C. 212(a)(2)) and any other statute applicable to the Customs 
Service or the Commissioner of Customs on the day before the date of 
the enactment of such Act in order to determine the appropriate 
allocation of legal authority set forth in those statutes. The 
appropriate allocation includes allocation between the Department of 
the Treasury and the Department of Homeland Security, and between the 
Bureau of Immigration and Customs Enforcement, the Bureau of Customs 
and Border Protection, and other offices within the Department of 
Homeland Security.

                  Subtitle B--Investigative Functions

SEC. 121. ESTABLISHMENT OF BUREAU.

    (a) In General.--Section 442 of the Homeland Security Act of 2002 
(6 U.S.C. 252(a)) is amended to read as follows:

``SEC. 442. ESTABLISHMENT OF BUREAU; DIRECTOR.

    ``(a) Establishment of Bureau.--There shall be in the Department of 
Homeland Security a bureau to be known as the Bureau of Immigration and 
Customs Enforcement, and a Director of Immigration and Customs 
Enforcement. The Director of Immigration and Customs Enforcement, shall 
be appointed by the President by and with the advice and consent of the 
Senate and shall--
            ``(1) head the Bureau of Immigration and Customs 
        Enforcement;
            ``(2) carry out the duties and powers prescribed by the 
        Secretary of Homeland Security and by law;
            ``(3) report directly to the Deputy Secretary of Homeland 
        Security;
            ``(4) have a minimum of 5 years professional experience in 
        law enforcement, and a minimum of 5 years of management 
        experience; and
            ``(5) advise the Secretary with respect to any policy or 
        operation of the Bureau of Immigration and Customs Enforcement 
        that may affect the Bureau of Citizenship and Immigration 
        Services established under subtitle E, including potentially 
        conflicting policies or operations.
    ``(b) Deputy Director and Other Officers.--The Secretary of 
Homeland Security is authorized to appoint, in the Bureau established 
by subsection (a), 1 Deputy Director, and such other officers as are 
necessary to manage the individual offices within the Bureau. 
Appointments under this subsection shall be subject to the provisions 
of the civil service laws, and the salaries shall be fixed in 
accordance with chapter 51 and subchapter III of chapter 53 of title 5, 
United States Code.
    ``(c) Absence or Disability of Director.--The Secretary of Homeland 
Security is authorized to designate an officer of the Bureau of 
Immigration and Customs Enforcement as Director of Immigration and 
Customs Enforcement, during the absence or disability of the Director 
of Immigration and Customs Enforcement, or in the event that there is 
no Director of Immigration and Customs Enforcement.
    ``(d) Duties of Personnel.--The personnel of the Bureau of 
Immigration and Customs Enforcement shall conduct and prosecute 
commercial investigations in connection with any customs revenue 
function delegated by the Secretary of the Treasury to the Secretary of 
Homeland Security pursuant to section 412, and perform such other 
duties as the Secretary of Homeland Security may prescribe or are 
prescribed by law.
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--For the fiscal year beginning October 1, 
        2006, and each fiscal year thereafter, there are authorized to 
        be appropriated to the Department of Homeland Security for the 
        Bureau of Immigration and Customs Enforcement only such sums as 
        may hereafter be authorized by law.
            ``(2) Enforcement of trade and customs laws.--In addition 
        to any other sums hereafter authorized to be appropriated, 
        there are authorized to be appropriated to the Department of 
        Homeland Security for the Bureau of Immigration and Customs 
        Enforcement to conduct and prosecute commercial investigations 
        in connection with any customs revenue function delegated by 
        the Secretary of the Treasury to the Secretary of Homeland 
        Security pursuant to section 412, the following sums, to remain 
        available until expended--
                    ``(A) $76,850,000 for fiscal year 2007;
                    ``(B) $83,500,000 for fiscal year 2008; and
                    ``(C) $90,750,000 for fiscal year 2009.
            ``(3) Pay comparability authorization.--For the fiscal year 
        beginning October 1, 2006, and for each fiscal year thereafter, 
        there are authorized to be appropriated to the Department of 
        Homeland Security for salaries of the Bureau of Immigration and 
        Customs Enforcement such additional sums as may be provided by 
        law to reflect pay rate changes made in accordance with the 
        Federal Pay Comparability Act of 1970 (Public Law 91-656; 84 
        Stat. 1946).
    ``(f) Program To Collect Information Relating to Foreign 
Students.--The Director of Immigration and Customs Enforcement shall be 
responsible for administering the program to collect information 
relating to nonimmigrant foreign students and other exchange program 
participants described in section 641 of the Illegal Immigration Reform 
and Immigrant Responsibility Act of 1996 (8 U.S.C. 1372), including the 
Student and Exchange Visitor Information System established under that 
section, and shall use such information to carry out the enforcement 
functions of the Bureau of Immigration and Customs Enforcement.
    ``(g) Chief of Policy and Strategy.--
            ``(1) In general.--There shall be a position of Chief of 
        Policy and Strategy for the Bureau of Immigration and Customs 
        Enforcement.
            ``(2) Functions.--In consultation with personnel in local 
        offices of the Bureau of Immigration and Customs Enforcement, 
        the Chief of Policy and Strategy shall be responsible for--
                    ``(A) making policy recommendations and performing 
                policy research and analysis on immigration enforcement 
                issues; and
                    ``(B) coordinating immigration policy issues with 
                the Chief of Policy and Strategy for the Bureau of 
                Citizenship and Immigration Services (established under 
                subtitle E), as appropriate.
    ``(h) Legal Advisor.--There shall be a principal legal advisor to 
the Director of Immigration and Customs Enforcement. The legal advisor 
shall provide specialized legal advice to the Director and shall 
represent the Bureau of Immigration and Customs Enforcement in all 
exclusion, deportation, and removal proceedings before the Executive 
Office for Immigration Review.''.
    (b) Compensation.--
            (1) In general.--Section 5314 of title 5, United States 
        Code, is amended by adding at the end the following:
            ``Director of Immigration and Customs Enforcement, 
        Department of Homeland Security.''.
            (2) Continuation in office.--The individual serving as 
        Assistant Secretary, Immigration and Customs Enforcement, in 
        the Department of Homeland Security on the day before the date 
        of the enactment of this Act may serve as Director of 
        Immigration and Customs Enforcement until the earlier of--
                    (A) the date on which such individual is no longer 
                eligible to serve as Assistant Secretary, Immigration 
                and Customs Enforcement; or
                    (B) the date on which a person nominated to be the 
                Director of Immigration and Customs Enforcement by the 
                President is confirmed by the Senate.
    (c) Conforming Amendments.--
            (1) Subtitle d.--The heading for subtitle D of title IV of 
        the Homeland Security Act of 2002 is amended by striking the 
        matter preceding section 441 and inserting the following:

                 ``Subtitle D--Enforcement Functions''.

            (2) Table of contents.--The table of contents for the 
        Homeland Security Act of 2002 is amended--
                    (A) by striking the item relating to section 442 
                and inserting the following:

``Sec. 442. Establishment of Bureau; Director.''; and
                    (B) by striking the item relating to subtitle D of 
                title IV and inserting the following:

                 ``Subtitle D--Enforcement Functions''.

            (3) Director of the bureau of citizenship and immigration 
        services.--Section 451(a)(2)(C) of the Homeland Security Act of 
        2002 (6 U.S.C. 271(a)(2)(C)) is amended by striking ``Assistant 
        Secretary of the Bureau of Border Security'' and inserting 
        ``Director of Immigration and Customs Enforcement''.

           TITLE II--CUSTOMS AND TRADE FACILITATION PROGRAMS

SEC. 201. DEFINITIONS.

    In this title:
            (1) ACE.--The term ``ACE'' means the Automated Commercial 
        Environment that is an automated trade processing system 
        designed to collect, process, and analyze commercial import and 
        export data to facilitate international trade and travel.
            (2) Bureau.--The term ``Bureau'' means the Bureau of 
        Customs and Border Protection.
            (3) CIPP.--The term ``CIPP'' means the Customs Industry 
        Partnership Program established under section 499(d) of the 
        Tariff Act of 1930, as added by section 231 or any similar 
        program such as the Customs-Trade Partnership Against Terrorism 
        Program (C-TPAT).
            (4) COAC.--The term ``COAC'' means the Advisory Committee, 
        established pursuant to section 9503(c) of the Omnibus Budget 
        Reconciliation Act of 1987, as amended by section 235, or any 
        successor Committee (19 U.S.C. 2071 note).
            (5) Commissioner.--The term ``Commissioner'' means the 
        Commissioner of Customs.
            (6) Importer self-assessment program.--The term ``importer 
        self-assessment program'' means the program of the Bureau of 
        Customs and Border Protection in effect on the date of the 
        enactment of this Act that provides benefits to those persons 
        who have made a commitment of resources and assumed 
        responsibility for--
                    (A) monitoring their own compliance and business 
                practices with respect to establishing, documenting, 
                and implementing adequate internal controls;
                    (B) performing periodic testing of transactions 
                based on risk;
                    (C) sharing test results with the Bureau;
                    (D) making appropriate adjustments to internal 
                controls; and
                    (E) maintaining an audit trail of financial records 
                and Customs declarations, or, an alternate system that 
                ensures accurate values are reported to the Bureau.
            (7) International supply chain.--The term ``international 
        supply chain'' means the end-to-end process for shipping goods 
        to or from the United States from the point of origin 
        (including manufacturer, supplier, or vendor) through the point 
        of distribution.
            (8) Revalidation; reverification.--The terms 
        ``revalidation'' and ``reverification'' mean the process by 
        which the Bureau of Customs and Border Protection reviews the 
        qualifications of a participant to continue to participate as a 
        tier 2 or a tier 3 participant in the CIPP, either on a 
        periodic or risk management basis, to determine if the 
        participant continues to adhere to established business and 
        cargo security practices.
            (9) Tier 1 participant.--The term ``tier 1 participant'' 
        means a participant in the CIPP that has been certified 
        pursuant to section 499(d) of the Tariff Act of 1930, as added 
        by section 231.
            (10) Tier 2 participant.--The term ``tier 2 participant'' 
        means a participant in the CIPP that has been validated 
        pursuant to section 499(d) of the Tariff Act of 1930, as added 
        by section 231.
            (11) Tier 3 participant.--The term ``tier 3 participant'' 
        means a participant in the CIPP that has been validated and 
        with respect to which a verification has been completed 
        pursuant to section 499(d) of the Tariff Act of 1930, as added 
        by section 231.
            (12) Validation and verification.--The terms ``validation'' 
        and ``verification'' mean the processes by which the Bureau of 
        Customs and Border Protection determines an applicant's 
        qualifications to participate in the CIPP by reviewing the 
        applicant's trade compliance history and conducting an on-site 
        review of documentation and practices of the applicant relating 
        to the importation of cargo, in order to determine if the 
        applicant's cargo security and business practices are reliable, 
        accurate, and effective.
            (13) WCO.--The term ``WCO'' means the World Customs 
        Organization.
            (14) WTO.--The term ``WTO'' means the World Trade 
        Organization established pursuant to the WTO Agreement.
            (15) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.

          Subtitle A--Bilateral and Multilateral Negotiations

SEC. 211. BILATERAL CUSTOMS PARTNERSHIPS.

    (a) In General.--Section 629(a) of the Tariff Act of 1930 (19 
U.S.C. 1629(a)) is amended--
            (1) by striking ``Secretary'' and inserting ``Secretary of 
        Homeland Security''; and
            (2) by striking ``examining persons and merchandise'' and 
        inserting ``screening and examining persons, merchandise, and 
        cargo''.
    (b) Definitions.--Section 629 of the Tariff Act of 1930 (19 U.S.C. 
1629) is amended by adding at the end the following:
    ``(h) Definitions.--In this section:
            ``(1) Appropriate federal officials.--The term `appropriate 
        Federal officials' includes the Secretaries of the Treasury, 
        State, Energy, Transportation, and Homeland Security, the 
        United States Trade Representative, the Commissioner of 
        Customs, and the Commandant of the Coast Guard.
            ``(2) Appropriate congressional committees.--The term 
        `appropriate congressional committees'' means the Committees on 
        Finance, Commerce, Science, and Transportation, and Homeland 
        Security and Governmental Affairs of the Senate and the 
        Committees on Ways and Means, Transportation and 
        Infrastructure, and Homeland Security of the House of 
        Representatives.
            ``(3) COAC.--The term `COAC' means the Advisory Committee 
        established by section 9503 of the Omnibus Budget 
        Reconciliation Act of 1987 (19 U.S.C. 2071 note).
            ``(4) Designated port.--The term `designated port' means a 
        port in a foreign country with which the United States has a 
        bilateral customs partnership agreement described in subsection 
        (i).
            ``(5) Examination.--The term `examination' means either a 
        physical inspection or the imaging and radiation screening of a 
        conveyance using nonintrusive inspection (NII) technology, for 
        the presence of contraband.
            ``(6) Inspection.--The term `inspection' means the 
        comprehensive process used by personnel of the Bureau of 
        Customs and Border Protection to assess goods entering the 
        United States for duty purposes, to detect the presence of 
        restricted or prohibited items, and to ensure compliance with 
        all applicable laws. This process may include screening, 
        conducting an examination, or conducting a search.
            ``(7) Scanning.--The term `scanning' means an examination 
        by nonintrusive means, including nuclear or radiological 
        detection technologies, x-ray or density technologies, and 
        optical character recognition technologies, for the presence of 
        misdeclared, restricted, or prohibited items.
            ``(8) Screening.--The term `screening' means a visual or 
        automated review of information about goods, including elements 
        of the manifest or entry documentation accompanying a shipment 
        being imported into the United States, to determine or assess 
        the level of threat posed by such cargo.
            ``(9) WCO.--The term `WCO' means the World Customs 
        Organization.
            ``(10) WTO.--The term `WTO' means the World Trade 
        Organization established pursuant to the WTO Agreement.
            ``(11) WTO agreement.--The term `WTO Agreement' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.
    ``(i) Bilateral Customs Partnership Agreements.--In order to 
enhance the Container Security Initiative (CSI) of the Bureau of 
Customs and Border Protection by facilitating the safe, efficient flow 
of commerce, the Secretary of Homeland Security may, in consultation 
with the appropriate Federal officials, enter into bilateral customs 
partnership agreements with foreign countries for the purpose of 
examining and screening cargo at designated ports before the cargo is 
shipped to the United States. The agreement shall identify each 
designated port in the foreign country and shall provide for--
            ``(1) the establishment of mutually agreed upon technical 
        capability, criteria, and standard operating procedures for the 
        use of nonintrusive inspection and nuclear and radiological 
        detection systems;
            ``(2) the use of nonintrusive inspection and nuclear and 
        radiological detection systems meeting the technical 
        capability, criteria, and standard operating procedures 
        established under paragraph (1); and
            ``(3) continued bilateral review of, and updating as 
        appropriate, the technologies, processes, and techniques used 
        to screen, scan, and inspect cargo at designated ports.
    ``(j) Assessment of Designated Ports.--Before the Secretary of 
Homeland Security enters into any agreement with a foreign government 
under subsection (i), the Secretary shall conduct an assessment of the 
ports in that country, in consultation with the appropriate Federal 
officials. The assessment shall include with respect to each port--
            ``(1) the level of risk for--
                    ``(A) the potential compromise of containers by 
                terrorists or terrorist weapons;
                    ``(B) smuggling of narcotics; and
                    ``(C) violations of United States trade laws, 
                including intellectual property rights and textile 
                transshipment;
            ``(2) the volume of regular container traffic that goes 
        through the port that is bound for the United States;
            ``(3) the commitment of the country to cooperate with the 
        Bureau of Customs and Border Protection in sharing critical 
        data and risk management information and to maintain programs 
        to ensure employee integrity;
            ``(4) coordination with and an assessment by the Coast 
        Guard; and
            ``(5) any limitation associated with the infrastructure of 
        the port.
    ``(k) Foreign Assistance.--The Secretary of Homeland Security, in 
consultation with the appropriate Federal officials, is authorized to 
provide appropriate assistance to designated ports, including--
            ``(1) training and other assistance that could facilitate 
        the deployment of effective cargo screening and examination 
        measures and equipment at designated ports and at foreign ports 
        that are not designated; and
            ``(2) the loan or other arrangement for use of nonintrusive 
        inspection or nuclear and radiological detection systems for 
        cargo containers at designated ports under such terms and 
        conditions as may be appropriate, and training foreign 
        personnel in the operation of such systems.
    ``(l) Staffing.--The Secretary of Homeland Security shall develop a 
human capital management plan to determine adequate staffing levels in 
foreign ports including, as appropriate, the remote location of 
personnel at the National Targeting Center in Reston, Virginia.
    ``(m) Annual Discussions.--The Secretary of Homeland Security, in 
coordination with the appropriate Federal officials, shall hold annual 
discussions with foreign governments with which the United States has a 
bilateral customs partnership agreement regarding best practices, 
technical assistance, training needs, and technological developments 
that will assist in ensuring the efficient and secure movement of 
international cargo.
    ``(n) Report.--Not later than September 30, 2007, and annually 
thereafter, the Secretary of Homeland Security shall, in consultation 
with the appropriate Federal officials and the COAC, report to the 
appropriate congressional committees on the effectiveness of, and need 
for improvements to, foreign customs partnership agreements. The report 
shall include--
            ``(1) recommendations for improvements to, and 
        effectiveness of, screening, scanning, and inspection protocols 
        and technologies at designated ports, and the effect on the 
        flow of commerce at those ports;
            ``(2) recommendations for continuing or suspending a 
        bilateral customs partnership agreement with each country and a 
        detailed evaluation of any security incident and how it was 
        handled, as well as the aggregate number and extent of trade 
        compliance lapses and how those lapses were handled;
            ``(3) a description of the technical assistance delivered 
        or needed at each designated port;
            ``(4) a description of the human capital management plan at 
        each designated port; and
            ``(5) a description of any request made by the United 
        States to a foreign country to conduct a physical and 
        nonintrusive inspection and whether that request was granted or 
        denied by the country.
    ``(o) Lesser Risk Ports.--The Commissioner of Customs may treat a 
designated port as a port that presents a lesser risk than a port that 
is not a designated port, for purposes of clearing cargo into the 
United States.''.

SEC. 212. MULTILATERAL CUSTOMS NEGOTIATIONS.

    Section 629 of the Tariff Act of 1930 (19 U.S.C. 1629), as amended 
by section 211, is amended by adding at the end the following:
    ``(p) Harmonization of Customs Procedures and Commitments.--
            ``(1) In general.--The Commissioner of Customs, the United 
        States Trade Representative, and other appropriate Federal 
        officials, shall work through appropriate international 
        organizations including the World Customs Organization, the 
        World Trade Organization, the International Maritime 
        Organization, and the Asia Pacific Economic Council, to 
        harmonize, to the extent practicable, customs procedures, 
        standards, requirements, and commitments in order to facilitate 
        the efficient flow of international trade.
            ``(2) United states trade representative.--
                    ``(A) In general.--The United States Trade 
                Representative shall seek commitments in negotiations 
                in the WTO regarding the articles of GATT 1994 that are 
                described in subparagraph (B) that result in--
                            ``(i) to the extent practicable, 
                        harmonization of import and export data 
                        collected by WTO members for customs purposes;
                            ``(ii) transparency, efficiency, and 
                        procedural fairness of WTO members;
                            ``(iii) to the extent practicable, 
                        transparent standards for the release of cargo 
                        by WTO members;
                            ``(iv) to the extent practicable, 
                        development and harmonization of standards, 
                        technologies, and protocols for physical or 
                        nonintrusive examinations that will facilitate 
                        the efficient flow of international trade; and
                            ``(v) the protection of confidential 
                        commercial data.
                    ``(B) Articles described.--The articles of the GATT 
                1994 described in this subparagraph are the following:
                            ``(i) Article V (relating to transit).
                            ``(ii) Article VIII (relating to fees and 
                        formalities associated with importation and 
                        exportation).
                            ``(iii) Article X (relating to publication 
                        and administration of trade regulations).
                    ``(C) Gatt 1994.--The term `GATT 1994' means the 
                General Agreement on Tariff and Trade annexed to the 
                WTO Agreement.
            ``(3) Customs.--The Commissioner of Customs, in 
        consultation with the United States Trade Representative, shall 
        work with the WCO to facilitate the efficient international 
        flow of trade, taking into account existing international 
        agreements and the negotiating objectives of the WTO. The 
        Commissioner shall work to--
                    ``(A) harmonize, to the extent practicable, import 
                data collected by WCO members for customs purposes;
                    ``(B) automate and harmonize, to the extent 
                practicable, the collection and storage of commercial 
                data by WCO members;
                    ``(C) develop, to the extent practicable, 
                transparent standards for the release of cargo by WCO 
                members;
                    ``(D) develop and harmonize, to the extent 
                practicable, standards, technologies, and protocols for 
                physical or nonintrusive examinations that will 
                facilitate the efficient flow of international trade; 
                and
                    ``(E) ensure the protection of confidential 
                commercial data.''.

                  Subtitle B--Customs Data Collection

SEC. 221. INTERNATIONAL TRADE DATA SYSTEM.

    (a) In General.--Section 411 of the Tariff Act of 1930 (19 U.S.C. 
1411) is amended by adding at the end the following new subsections:
    ``(d) International Trade Data System.--
            ``(1) Establishment.--
                    ``(A) In general.--The Secretary of the Treasury 
                (in this section, referred to as the `Secretary') shall 
                oversee the establishment of an electronic trade data 
                interchange system to be known as the `International 
                Trade Data System' (ITDS). The ITDS shall be 
                implemented not later than the date that the Automated 
                Commercial Environment (commonly referred to as `ACE') 
                (as defined in section 201 of the Customs and Trade 
                Facilitation Reauthorization Act of 2006) is 
                implemented.
                    ``(B) Purpose.--The purpose of the ITDS is to 
                eliminate redundant information requirements, to 
                efficiently regulate the flow of commerce, and to 
                effectively enforce laws and regulations relating to 
                international trade, by establishing a single portal 
                system, operated by the Bureau of Customs and Border 
                Protection, for the collection and distribution of 
                standard electronic import and export data required by 
                all United States Government agencies.
                    ``(C) Participation.--
                            ``(i) In general.--All Federal agencies 
                        that require documentation for clearing or 
                        licensing the importation and exportation of 
                        cargo shall participate in the ITDS.
                            ``(ii) Waiver.--The Director of the Office 
                        of Management and Budget may waive, in whole or 
                        in part, the requirement for participation for 
                        any Federal agency based on national security.
                    ``(D) Consultation.--The Secretary shall consult 
                with and assist agencies in the transition from paper 
                to electronic format for the submission, issuance, and 
                storage of documents relating to data required to enter 
                cargo into the United States.
            ``(2) Data elements.--
                    ``(A) In general.--The Steering Committee 
                established under paragraph (3) shall, in consultation 
                with the agencies participating in the ITDS, define the 
                standard set of data elements to be collected, stored, 
                and shared in the ITDS. The Steering Committee shall 
                periodically review the data elements in order to 
                update the data elements, as necessary.
                    ``(B) Harmonization.--The Steering Committee shall 
                ensure that the ITDS data requirements are compatible 
                with the commitments or obligations established by the 
                World Customs Organization (WCO) and the World Trade 
                Organization (WTO) for the entry of cargo.
                    ``(C) Coordination.--The Secretary of the Treasury 
                shall be responsible for coordinating operation of the 
                ITDS among the participating agencies and the office 
                within the Bureau of Customs and Border Protection that 
                is responsible for maintaining the ITDS.
            ``(3) Steering committee.--There is established an 
        interagency steering committee. The members of the committee 
        shall include the Secretary of the Treasury (who shall serve as 
        the chairperson of the committee), the Director of the Office 
        of Management and Budget, and the head of each agency 
        participating in the ITDS. The committee shall assist the 
        Secretary of the Treasury in overseeing the implementation of, 
        and participation in, the ITDS.
            ``(4) Report.--The Steering Committee shall submit a report 
        annually to the Committee on Finance of the Senate and the 
        Committee on Ways and Means of the House of Representatives. 
        Each report shall include information on--
                    ``(A) the status of the ITDS implementation;
                    ``(B) the extent of participation in the ITDS by 
                Federal agencies;
                    ``(C) the remaining barriers to any agency's 
                participation;
                    ``(D) the extent to which the ITDS is consistent 
                with applicable standards established by the World 
                Customs Organization and the World Trade Organization;
                    ``(E) recommendations for technological and other 
                improvements to the ITDS; and
                    ``(F) the status of the Bureau's development, 
                implementation, and management of the Automated 
                Commercial Environment.
    ``(e) Treasury Oversight.--The Secretary of the Treasury shall 
ensure that no fewer than 5 full-time equivalents in the Office of Tax, 
Trade, and Tariff Policy are available--
            ``(1) to carry out oversight of the customs revenue 
        functions delegated to the Secretary of Homeland Security 
        pursuant to section 412 of the Homeland Security Act of 2002 (6 
        U.S.C. 212); and
            ``(2) to carry out oversight of the International Trade 
        Data System established under this section.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated for each of the fiscal years 2007, 2008, and 2009, 
$750,000 for salaries and expenses required to carry out subsection 
(e).''.

SEC. 222. AUTHORIZATION OF APPROPRIATIONS.

    Section 13031(f)(5) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(f)(5)) is amended--
            (1) by striking ``2003'' each place it appears and 
        inserting ``2007'';
            (2) by striking ``2004'' each place it appears and 
        inserting ``2008'';
            (3) by striking ``2005'' each place it appears and 
        inserting ``2009''; and
            (4) by striking ``2006'' each place it appears and 
        inserting ``2010''.

                Subtitle C--Trade Facilitation Programs

SEC. 231. ESTABLISHMENT OF A VOLUNTARY CUSTOMS INDUSTRY PARTNERSHIP 
              PROGRAM.

    (a) In General.--Section 499 of the Tariff Act of 1930 (19 U.S.C. 
1499) is amended by adding at the end the following new subsection:
    ``(d) Customs Industry Partnership Program.--
            ``(1) Establishment.--The Commissioner of Customs (in this 
        section referred to as the `Commissioner') is authorized to 
        establish a voluntary government-private sector Customs 
        Industry Partnership Program to facilitate the movement of 
        cargo through the international supply chain and to provide 
        benefits to eligible participants meeting or exceeding the 
        program requirements. The program shall be known as the `CIPP'.
            ``(2) Eligible participants.--The Commissioner shall 
        establish procedures for all persons involved in the movement 
        of cargo in the international supply chain to apply for 
        participation in the CIPP, including intermodal transportation 
        system providers, contract logistics providers, air, land, and 
        sea carriers, customs brokers, importers, forwarders, and other 
        entities involved in the movement of cargo in the international 
        supply chain.
            ``(3) Minimum requirements.--The Commissioner shall 
        establish minimum requirements for participation in the CIPP. 
        The requirements for participation in the Program include the 
        following:
                    ``(A) The applicant's history of moving cargo 
                through the international supply chain.
                    ``(B) Consideration of the applicant's compliance 
                with basic requirements of customs laws and 
                regulations, including the proper maintenance of 
                importer identification numbers on file for covered 
                business entities, the maintenance of customs bonds in 
                sufficient amount, and the absence of outstanding 
                requests from the Bureau for information, notices of 
                action, liquidated damages, and civil penalties 
                unanswered by the company.
                    ``(C) The applicant's compliance with all minimum 
                physical security requirements established by the 
                Commissioner.
            ``(4) 3 tiers of customs industry partnership program.--The 
        CIPP shall include 3 levels of voluntary participation.
                    ``(A) Tier 1 participants.--
                            ``(i) Requirements.--A `tier 1 participant' 
                        means a CIPP participant that has certified to 
                        the Bureau of Customs and Border Protection 
                        that it meets the minimum requirements of the 
                        CIPP established by the Commissioner and that 
                        certification has been accepted by the Bureau 
                        of Customs and Border Protection after a review 
                        of the applicant's trade compliance history and 
                        the attestations made in the application and 
                        the completion of a verification under 
                        paragraph (5).
                            ``(ii) Benefits.--The Commissioner shall 
                        provide limited benefits to tier 1 participants 
                        for the purpose of facilitating the flow of 
                        cargo in the international supply chain.
                            ``(iii) Certification.--To the extent 
                        practicable, the Bureau of Customs and Border 
                        Protection shall conduct the certification for 
                        tier 1 participation within 90 days of receipt 
                        of the application for participation in the 
                        CIPP.
                    ``(B) Tier 2 participants.--
                            ``(i) Requirements.--A `tier 2 participant' 
                        means a CIPP participant that has been granted 
                        tier 2 status for the CIPP by the Bureau of 
                        Customs and Border Protection, after the Bureau 
                        has completed an on-site validation of the 
                        participant's trade compliance, cargo security 
                        practices, and supply chain and completed a 
                        verification under paragraph (5).
                            ``(ii) Benefits.--The Commissioner shall 
                        grant benefits in addition to the benefits 
                        granted under subparagraph (B)(i) to tier 2 
                        participants for the purpose of facilitating 
                        the flow of cargo in the international supply 
                        chain.
                            ``(iii) Validation.--To the extent 
                        practicable, the Bureau of Customs and Border 
                        Protection shall conduct and complete a 
                        validation for tier 2 participation within 1 
                        year of granting the certification described in 
                        subparagraph (A).
                    ``(C) Tier 3 participants.--
                            ``(i) Requirements.--A `tier 3 participant' 
                        means a tier 2 participant who, upon 
                        application for `tier 3' benefits and 
                        completion of a verification under paragraph 
                        (5), is found by the Bureau of Customs and 
                        Border Protection to meet the following 
                        requirements:
                                    ``(I) A demonstrated history of 
                                trade compliance, including the 
                                consistent payment of duties in an 
                                accurate and timely manner.
                                    ``(II) The consistent provision of 
                                additional advance data elements as 
                                required by the Commissioner of 
                                Customs.
                                    ``(III) The consistent use of 
                                supply chain security best practices 
                                identified by the Bureau of Customs and 
                                Border Protection.
                                    ``(IV) Participation in the Bureau 
                                of Customs and Border Protection's 
                                Importer Self-Assessment Program 
                                (described in section 201 of the 
                                Customs and Trade Reauthorization Act 
                                of 2006).
                            ``(ii) Benefits.--The Commissioner shall 
                        grant benefits in addition to the benefits 
                        granted under subparagraphs (A) and (B) to 
                        participants in the program who meet the 
                        requirements of clause (i) for the purpose of 
                        facilitating the flow of cargo in the 
                        international supply chain. The benefits shall 
                        include--
                                    ``(I) providing feedback to tier 3 
                                participants on cargo examination 
                                results to the extent that such 
                                feedback does not compromise security;
                                    ``(II) notifying tier 3 
                                participants of specific alerts and 
                                post-incident trade resumption 
                                procedures as appropriate;
                                    ``(III) providing incident 
                                management training for tier 3 
                                participants, including training with 
                                respect to protection, prevention, 
                                response, and recovery;
                                    ``(IV) permitting tier 3 
                                participants to be represented in joint 
                                incident management exercises with 
                                trade agencies and other agencies; and
                                    ``(V) permitting cargo clearance 
                                priority for participants in the post-
                                incident resumption of trade to the 
                                extent the Commissioner deems 
                                practicable.
            ``(5) Verification of participant status.--The Commissioner 
        of Customs shall develop procedures to verify the information 
        provided by persons who apply for participation in the CIPP, 
        including--
                    ``(A) in the case of a tier 1 participant, an 
                extensive documentation review;
                    ``(B) in the case of a tier 2 participant, an 
                extensive documentation review and site validation; and
                    ``(C) in the case of a tier 3 participant, an 
                extensive documentation review, site validation, and a 
                review by the Bureau of Customs and Border Protection 
                auditors of the internal controls of participants with 
                respect to commercial transactions to ensure the 
                accuracy of the data that is submitted to the Bureau.
            ``(6) Consequences for lack of compliance.--
                    ``(A) In general.--If a participant's business 
                system and documentation or supply chain security 
                practices fail to meet any of the requirements 
                established by the Commissioner of Customs under this 
                subsection, the Commissioner may deny the applicant all 
                or part of the benefits of the CIPP until the applicant 
                meets those requirements.
                    ``(B) False or misleading information.--If a 
                participant intentionally provides false or misleading 
                information to the Commissioner or a third party during 
                the certification, validation, verification, 
                revalidation, or reverification process, the 
                Commissioner shall suspend or expel the participant 
                from the CIPP for an appropriate period of time. The 
                Commissioner may publish a list of persons who have 
                been suspended and make such a list available to other 
                participants.
            ``(7) CIPP elements.--The Commissioner shall establish 
        sufficient internal quality controls and record management to 
        support the Bureau of Customs and Border Protection's 
        management systems of the CIPP. In managing the Program the 
        Commissioner shall ensure that the Program includes the 
        following:
                    ``(A) Strategic plan.--A 5-year Strategic Plan to 
                identify outcome-based goals and performance measures 
                of the Program.
                    ``(B) Annual plan.--An annual plan for each fiscal 
                year designed to match available resources to the 
                projected workload.
                    ``(C) Standardized work program.--A standardized 
                work program to be used by personnel of the Bureau of 
                Customs and Border Protection to carry out the 
                verifications under paragraph (5), with respect to 
                intermodal transportation system providers, contract 
                logistics providers, air, land and sea carriers, 
                customs brokers, importers, forwarders, and other 
                persons involved in the movement of cargo through the 
                international supply chain. The Bureau of Customs and 
                Border Protection shall keep records and monitor staff 
                hours associated with the completion of each 
                verification.
                    ``(D) Documentation of reviews.--The Commissioner 
                shall maintain a record management system to document 
                determinations on the review of each participant, 
                including certifications, validations, verifications, 
                revalidations, and reverifications.
                    ``(E) Revalidation and reverification of 
                participants.--The Commissioner shall develop and 
                implement--
                            ``(i) a revalidation process for tier 2 
                        participants;
                            ``(ii) a means to include risk-based and 
                        random sampling for identifying participants 
                        for periodic revalidation and reverification;
                            ``(iii) a reverification process for tier 3 
                        participants;
                            ``(iv) an annual plan for revalidation and 
                        reverification that includes--
                                    ``(I) performance measures;
                                    ``(II) an assessment of the 
                                personnel needed to perform the 
                                revalidation or reverification; and
                                    ``(III) the number of companies 
                                that will be revalidated or reverified 
                                during the year.
                    ``(F) Right of appeal.--An applicant for, or 
                participant in, the CIPP shall have the right to appeal 
                any decision by the Commissioner denying or suspending 
                benefits under the Program. An appeal shall be filed 
                with the Commissioner not later than 90 days after the 
                date of the suspension or denial that is being 
                appealed. The Commissioner shall make a final decision 
                with respect to the appeal within 180 days after the 
                date the appeal is filed.
            ``(8) Resource management staffing plan.--The Commissioner 
        shall--
                    ``(A) develop a staffing plan to recruit, train, 
                and retain staff (including a formalized training 
                program) to meet the objectives identified in the 
                strategic plan of the CIPP;
                    ``(B) conduct a study of the Program's training 
                needs and develop a comprehensive training program to 
                support the certification, validation, verification, 
                revalidation, and reverification processes of the 
                Program; and
                    ``(C) provide cross-training in post-incident trade 
                resumption for personnel engaged in the Program.
            ``(9) Third-party validation.--The Commissioner shall 
        consult with the Customs Commercial Operations Advisory 
        Committee (COAC), and conduct a feasibility study regarding the 
        use of third parties to conduct validations, verifications, 
        revalidations, and reverifications for participation in the 
        CIPP.
            ``(10) GAO report.--Not later than 1 year after the date of 
        the enactment of this Act, the Comptroller General shall 
        conduct a study of the CIPP. The study shall include a review 
        of the internal controls, documentation, validation, 
        verification, revalidation, and reverification processes of the 
        Program. The Comptroller General shall submit a report of the 
        results of the study to the Committee on Finance of the Senate 
        and the Committee on Ways and Means of the House or 
        Representatives.
            ``(11) Confidential information safeguards.--In 
        consultation with COAC, the Commissioner shall develop and 
        implement procedures to ensure the protection of confidential 
        data collected, stored, or shared with government agencies or 
        as part of the application, validation, verification, 
        revalidation, or reverification processes. The procedures shall 
        include--
                    ``(A) measures for protecting data shared with any 
                government agency;
                    ``(B) measures for providing a secure system for 
                document storage accessible only to the appropriate 
                personnel;
                    ``(C) measures for storing all electronic files in 
                a manner that prevents theft, copying, or deletion; and
                    ``(D) measures for labeling all records to clearly 
                mark what is considered confidential or a trade secret.
            ``(12) Definitions.--In this subsection:
                    ``(A) Contract logistics provider.--The term 
                `contract logistics provider' means an entity that 
                provides supply chain management services to third 
                parties. Such services include the design of a third 
                party's domestic or international supply chain 
                (including integrated information, consolidation, and 
                deconsolidation), as well as the actual receipt, 
                exportation, transportation, brokerage, warehousing, or 
                distribution of a third party's goods.
                    ``(B) COAC.--The term `COAC' means the Advisory 
                Committee, established pursuant to section 9503(c) of 
                the Omnibus Budget Reconciliation Act of 1987, or any 
                successor Committee (19 U.S.C. 2071 note).
                    ``(C) Importer self-assessment program.--The term 
                `importer self-assessment program' means the program of 
                the Bureau of Customs and Border Protection in effect 
                on the date of the enactment of this Act that provides 
                benefits to those persons who have made a commitment of 
                resources and assumed responsibility for--
                            ``(i) monitoring their own compliance and 
                        business practices with respect to 
                        establishing, documenting, and implementing 
                        adequate internal controls;
                            ``(ii) performing periodic testing of 
                        transactions based on risk;
                            ``(iii) sharing test results with the 
                        Bureau;
                            ``(iv) making appropriate adjustments to 
                        internal controls; and
                            ``(v) maintaining an audit trail of 
                        financial records and Customs declarations, or, 
                        an alternate system that ensures accurate 
                        values are reported to the Bureau.
                    ``(D) International supply chain.--The term 
                `international supply chain' means the end-to-end 
                process for shipping goods to or from the United States 
                from the point of origin (including manufacturer, 
                supplier, or vendor) through the point of distribution.
                    ``(E) Revalidation; reverification.--The terms 
                `revalidation' and `reverification' mean the process by 
                which the Bureau of Customs and Border Protection 
                reviews the qualifications of a participant to continue 
                to participate as a tier 2 or tier 3 participant in the 
                CIPP, either on a periodic or risk management basis, to 
                determine if the participant continues to adhere to 
                established business and cargo security practices.
                    ``(F) Validation and verification.--The terms 
                `validation' and `verification' mean the processes by 
                which the Bureau of Customs and Border Protection 
                determines an applicant's qualifications to participate 
                in the CIPP by reviewing the applicant's trade 
                compliance history and conducting an on-site review of 
                documentation and practices of the applicant relating 
                to the importation of cargo, in order to determine if 
                the applicant's cargo security and business practices 
                are reliable, accurate, and effective.''.
    (b) Additional Personnel.--In each of the fiscal years 2007 through 
2009, the Secretary shall increase by not less than 50 (over the 
previous fiscal year) the number of positions for validation, 
verification, revalidation, and reverification activities of the CIPP, 
and shall provide appropriate training and support for the positions.
    (c) Authorization of Appropriations.--In addition to any monies 
hereafter appropriated to the Bureau of Customs and Border Protection 
of the Department of Homeland Security, there are authorized to be 
appropriated for the purpose of meeting the staffing requirement 
provided for in subsection (b), to remain available until expended, the 
following:
            (1) $8,500,000 in fiscal year 2007.
            (2) $17,600,000 in fiscal year 2008.
            (3) $27,300,000 in fiscal year 2009.
            (4) $28,300,000 in fiscal year 2010.
            (5) $29,200,000 in fiscal year 2011.
    (d) Report.--
            (1) In general.--Not later than November 30, 2007, and 
        annually thereafter, the Commissioner shall report to the 
        appropriate committees on the progress of CIPP validations, 
        verifications, revalidations, and reverifications established 
        under section 499(d) of the Tariff Act of 1930.
            (2) Appropriate committees.--The term ``appropriate 
        committees'' means the Committee on Finance of the Senate and 
        the Committee on Ways and Means of the House of 
        Representatives.

SEC. 232. TRADE RESUMPTION PLAN.

    Title III of the Tariff Act of 1930 is amended by inserting after 
section 318 the following new section:

``SEC. 318A. TRADE RESUMPTION PLAN.

    ``(a) Definitions.--In this section:
            ``(1) Inspection.--The term `inspection' means the 
        comprehensive process used by the personnel of the Bureau of 
        Customs and Border Protection to assess goods entering the 
        United States for duty purposes, to detect the presence of 
        restricted or prohibited items, or to ensure compliance with 
        applicable laws. The process may include screening, conducting 
        an examination, or conducting a search.
            ``(2) Targeting.--The term `targeting' means the process 
        used by the personnel of the Bureau of Customs and Border 
        Protection to determine the risk of security or trade 
        violations associated with cargo bound for the United States.
            ``(3) Transportation disruption.--The term `transportation 
        disruption' means any significant delay, interruption, or 
        stoppage in the flow of international trade caused by a natural 
        disaster, labor dispute, heightened threat level, an act of 
        terrorism, or any transportation security incident defined in 
        section 1572.3 of title 49, Code of Federal Regulations.
    ``(b) Trade Resumption Plan.--Not later than 1 year after the date 
of enactment of this Act, the Commissioner of Customs shall develop a 
Trade Resumption Plan to provide for the resumption of trade in the 
event of a transportation disruption. The Plan shall include--
            ``(1) a program to redeploy resources and personnel, as 
        necessary, to reestablish the flow of international trade in 
        the event of a transportation disruption;
            ``(2) a training program to periodically instruct personnel 
        of the Bureau of Customs and Border Protection in trade 
        resumption functions in the event of a transportation 
        disruption;
            ``(3) a plan to revise cargo targeting and inspection 
        protocols to meet the security and trade facilitation needs of 
        the United States following a transportation disruption, 
        including, to the extent practicable, giving priority to--
                    ``(A) cargo originating from a designated port 
                described in section 629(j);
                    ``(B) cargo that has been handled, stored, shipped, 
                and imported by, or otherwise processed by, a tier 3 
                participant in the Customs Industry Partnership Program 
                established under section 499(d) (CIPP);
                    ``(C) cargo that has undergone nuclear or 
                radiological detection scan, x-ray or density scan, and 
                optical character recognition scan, at the last port of 
                departure prior to arrival in the United States;
                    ``(D) cargo transported in containers with tamper-
                proof seals;
                    ``(E) perishable cargo; and
                    ``(F) any other cargo the Commissioner considers 
                appropriate;
            ``(4) a plan to communicate any revised procedures or 
        instructions to the private sector, and in particular to tier 3 
        participants in the CIPP established pursuant to section 
        499(d), following a transportation disruption; and
            ``(5) a plan to coordinate trade facilitation efforts among 
        affected ports of entry following a transportation disruption.
    ``(c) Consultations.--
            ``(1) In general.--The Commissioner of Customs shall 
        consult with appropriate government agencies, port authorities, 
        terminal operators, and the Customs Commercial Operations 
        Advisory Committee (COAC) in the development of the Trade 
        Resumption Plan.
            ``(2) Public comment.--The Commissioner of Customs shall 
        afford port authorities, terminal operators, and the COAC 60 
        days in which to comment on a draft Trade Resumption Plan 
        before finalizing such plan.
    ``(d) Exercises.--The Commissioner of Customs shall coordinate 
annual exercises with appropriate Federal, State, and local agencies, 
port authorities, terminal operators, and tier 3 participants in the 
CIPP to practice and prepare for implementation of the Trade Resumption 
Plan. Such exercises shall be coordinated with the Coast Guard's port 
incident management plan exercises.
    ``(e) Report and Consultation.--Not later than 180 days after the 
date that the annual exercises described in subsection (d) are 
completed, the Commissioner of Customs shall submit a report to the 
Committee on Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives on the status of the Trade Resumption 
Plan required by subsection (b) and the result of exercises required by 
subsection (d), and shall consult with the committees regarding any 
proposals to revise the Plan.''.

SEC. 233. AUTOMATED TARGETING SYSTEM.

    Title III of the Tariff Act of 1930 is amended by inserting after 
section 318A, as added by section 232 of this Act, the following new 
section:

``SEC. 318B. AUTOMATED TARGETING SYSTEM.

    ``(a) Component.--The Automated Targeting System used by the Bureau 
of Customs and Border Protection to identify cargo for increased 
inspection prior to the clearance of such cargo into the United States 
shall include a component to permit--
            ``(1) the electronic comparison of similar manifest and 
        available entry data for cargo entered into or bound for the 
        United States, in order to efficiently identify cargo for 
        increased inspection or expeditious release following a 
        transportation disruption; and
            ``(2) the electronic isolation of select data elements 
        relating to cargo entered into or bound for the United States, 
        in order to efficiently identify cargo for increased inspection 
        or expeditious release following a transportation disruption.
    ``(b) Trade Resumption Plan.--The plan required by subsection 
(b)(3) of section 318A shall incorporate use of the component of the 
Automated Targeting System required by subsection (a) in order to 
minimize the disruption to the efficient flow of international trade 
following a transportation disruption.''.

SEC. 234. DRAWBACK FOR EXPORTED MERCHANDISE.

    (a) In General.--Section 313 of the Tariff Act of 1930 (19 U.S.C. 
1313) is amended to read as follows:

``SEC. 313. DRAWBACK FOR EXPORTED MERCHANDISE.

    ``(a) Definitions.--In this section:
            ``(1) Bill of materials.--The term `bill of materials' 
        means records kept in the ordinary course of business that 
        identify each component incorporated into an article.
            ``(2) Destroyed.--The term `destroyed' means a process by 
        which merchandise or an article loses all commercial value. 
        Merchandise or an article may be destroyed even if valuable 
        material is recovered from the merchandise or article.
            ``(3) Directly.--The term `directly' means a transfer of 
        merchandise or an article from 1 person to another person 
        without any intermediate transfer.
            ``(4) Formula.--The term `formula' means records kept in 
        the ordinary course of business that identify the quantity of 
        each element, material, chemical, mixture, or other substance 
        incorporated into a manufactured article.
            ``(5) Fungible.--The term `fungible' means goods that are 
        commercially identical to 1 another in all instances.
            ``(6) Good subject to chile drawback.--The term `good 
        subject to Chile drawback' has the meaning given that term in 
        section 203(a) of the United States-Chile Free Trade Agreement 
        Implementation Act (19 U.S.C. 3805 note).
            ``(7) Good subject to nafta drawback.--The term `good 
        subject to NAFTA drawback' has the meaning given that term in 
        section 203(a) of the North American Free Trade Agreement 
        Implementation Act (19 U.S.C. 3333(a)).
            ``(8) HTS.--The term `HTS' means the Harmonized Tariff 
        Schedule of the United States (19 U.S.C. 1202).
            ``(9) Incorporated into.--The term `incorporated into' 
        means any operation by which merchandise or an article becomes 
        classifiable in a different 8-digit HTS subheading number.
            ``(10) Indirectly.--The term `indirectly' means a transfer 
        of merchandise or an article from 1 person to another person 
        with 1 or more intermediate transfers.
            ``(11) Line item.--
                    ``(A) Import entry.--The term `line item' means, 
                for an import entry filed pursuant to section 484, the 
                identification of a commodity from 1 country by net 
                quantity, entered value, HTS subheading number, and 
                applicable duties, fees, and taxes.
                    ``(B) Designated export.--Line item means, for a 
                designated export, the identification of a commodity by 
                HTS subheading number, Schedule B number, declared 
                value, and quantity.
            ``(12) NAFTA country.--The term `NAFTA country' has the 
        meaning given that term in section 2 of the North American Free 
        Trade Agreement Implementation Act (19 U.S.C. 3301).
            ``(13) Schedule b.--The term `Schedule B' means the 
        Department of Commerce Schedule B, Statistical Classification 
        of Domestic and Foreign Commodities Exported from the United 
        States.
            ``(14) Substitute merchandise; substitute article.--The 
        terms `substitute merchandise' and `substitute article' mean--
                    ``(A) a good that is classifiable within the same 
                8-digit HTS subheading number as another good (the 
                Schedule B number may be used to demonstrate this 
                fact);
                    ``(B) a good demonstrated to have been classifiable 
                within the same 8-digit HTS subheading number as 
                another good at some point during the 5-year period 
                beginning on the date of importation of the designated 
                imported merchandise (the Schedule B number may be used 
                to demonstrate this fact); or
                    ``(C) for goods classifiable under headings 2710 or 
                3901 through 3914, HTS, a good demonstrated to have 
                been classifiable under the same 8-digit HTS subheading 
                number as another good according to the HTS in effect 
                on January 1, 2000 (the Schedule B number may be used 
                to demonstrate this fact).
    ``(b) In General.--
            ``(1) Drawback.--If merchandise is imported into the United 
        States and that merchandise, or substitute merchandise, is then 
        exported, or is incorporated into an article that is exported, 
        or a substitute article that is exported, duties, fees, and 
        taxes paid upon entry or importation of the merchandise shall 
        be refunded as drawback pursuant to this section.
            ``(2) Eligibility for drawback for merchandise incorporated 
        into multiple articles.--Merchandise described in paragraph (1) 
        that is incorporated into an article that is exported shall be 
        eligible for drawback under this section regardless of the 
        number of times that the merchandise is incorporated into an 
        article or an article is incorporated into another article.
    ``(c) Eligibility to Claim Drawback.--
            ``(1) Person making claim.--A person may claim drawback 
        under this section if the person--
                    ``(A)(i) imports the merchandise on which the claim 
                is based; or
                    ``(ii) obtains the importer's permission to claim 
                the drawback and meets the requirements of paragraph 
                (2); and
                    ``(B) exports the merchandise or article on which 
                the claim is based or obtains the exporter's permission 
                to claim drawback.
            ``(2) Special rules for nonimporters.--
                    ``(A) In general.--An exporter who claims drawback 
                pursuant to paragraph (1)(A)(ii), shall have received 
                the imported merchandise, substitute merchandise, 
                imported or substitute merchandise incorporated into an 
                article, or substitute article, directly or indirectly 
                from the importer.
                    ``(B) Rules for transfer.--The transfer of a claim 
                for drawback under this section shall be a private 
                transaction between parties that may not be required to 
                be governed by this section or by regulations 
                promulgated under the authority of this section, and 
                the Secretary may not require such parties to verify 
                any transfer of drawback rights, merchandise, or 
                article under this subsection.
            ``(3) Claim for drawback on merchandise incorporated.--If 
        drawback is claimed for merchandise incorporated into an 
        article, the person making the claim shall submit a bill of 
        materials or formula identifying the merchandise and article by 
        the 8-digit HTS subheading number and the quantity of the 
        merchandise. Merchandise shall be deemed incorporated into an 
        article if the bill of materials or formula for that article 
        includes such merchandise.
            ``(4) Electronic filing.--A claim for drawback under this 
        section shall be made through an electronic data interchange 
        system authorized by the Secretary. Such system may include an 
        Internet-based system.
            ``(5) Time limit for claim.--Drawback may be paid under 
        this section for merchandise only if the claim for drawback is 
        filed within 5 years after the date the merchandise was 
        imported. If the merchandise has multiple dates of importation, 
        the earliest date of importation shall be used for purposes of 
        this paragraph.
    ``(d) Amount of Drawback.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        except for drawback claims filed pursuant to subsection (g)(2), 
        the amount of a drawback made pursuant to this section shall be 
        the number of units claimed times the lesser of--
                    ``(A) the average of the duties, taxes, and fees 
                paid per unit of the designated import line item; or
                    ``(B) the average declared value per unit of the 
                designated export line item times the duties, taxes, 
                and fees that applied to the designated import line 
                item, less 1 percent.
            ``(2) Exception.--Where drawback is claimed based upon 
        imported merchandise or substitute merchandise being 
        incorporated into an article, the drawback amount shall be the 
        number of units of merchandise claimed times the average 
        duties, taxes, and fees per unit of the designated import line 
        item, less 1 percent.
            ``(3) Limitation.--The amount of duties, taxes, and fees to 
        be refunded pursuant to this subsection for merchandise shall 
        not include any duties, taxes, and fees previously refunded to 
        any person for such merchandise.
    ``(e) Refunds, Waivers, or Reductions Under Certain Free Trade 
Agreements.--
            ``(1) In general.--If an article that is exported to a 
        NAFTA country is a good subject to NAFTA drawback, no customs 
        duties on the good may be refunded, waived, or reduced in an 
        amount that exceeds the lesser of--
                    ``(A) the total amount of customs duties paid or 
                owed on the good on importation into the United States; 
                or
                    ``(B) the total amount of customs duties paid on 
                the good on importation into the NAFTA country.
            ``(2) Special rule for canada.--If Canada ceases to be a 
        NAFTA country and the suspension of the operation of the United 
        States-Canada Free-Trade Agreement thereafter terminates, then 
        for purposes of subsection (b), the shipment to Canada during 
        the period such Agreement is in operation of an article made 
        from or substituted for, as appropriate, a drawback eligible 
        good under section 204(a) of the United States-Canada Free-
        Trade Implementation Act of 1988 (19 U.S.C. 1212 note) does not 
        constitute an exportation.
            ``(3) Special rule for chile.--
                    ``(A) In general.--For purposes of subsections (a) 
                and (h), if an article that is exported to Chile is a 
                good subject to United States-Chile Free Trade 
                Agreement drawback, no customs duties on the good may 
                be refunded, waived, or reduced, except as provided in 
                subparagraph (B).
                    ``(B) Amount of customs duties.--The customs duties 
                referred to in subparagraph (A) may be refunded, 
                waived, or reduced by--
                            ``(i) 100 percent during the 8-year period 
                        beginning on January 1, 2004;
                            ``(ii) 75 percent during the 1-year period 
                        beginning on January 1, 2012;
                            ``(iii) 50 percent during the 1-year period 
                        beginning on January 1, 2013; and
                            ``(iv) 25 percent during the 1-year period 
                        beginning on January 1, 2014.
            ``(4) Fungible merchandise exported to nafta country.--
                    ``(A) In general.--The exportation to a NAFTA 
                country of merchandise that is fungible with and 
                substituted for imported merchandise, other than 
                merchandise described in paragraphs (1) through (8) of 
                section 203(a) of the North American Free Trade 
                Agreement Implementation Act (19 U.S.C. 3333(a)), shall 
                not constitute an exportation for purposes of 
                subsection (b).
                    ``(B) Fungible merchandise exported to chile.--
                Beginning on January 1, 2015, the exportation to Chile 
                of merchandise that is fungible with, and substituted 
                for imported merchandise, other than merchandise 
                described in paragraphs (1) through (5) of section 
                203(a) of the United States-Chile Free Trade Agreement 
                Implementation Act (19 U.S.C. 3805 note), shall not 
                constitute an exportation for purposes of subsection 
                (b). The preceding sentence shall not be construed to 
                permit the substitution of unused drawback under 
                subsection (b) of this section with respect to 
                merchandise described in paragraph (2) of section 
                203(a) of the United States-Chile Free Trade Agreement 
                Implementation Act.
    ``(f) Proof of Exportation.--A person claiming drawback under this 
section shall submit proof of the exportation of the merchandise or an 
article that the merchandise was incorporated into by submitting at 
least 1 of the following:
            ``(1) The appropriate record from the United States 
        Government automated export system, unless such system was 
        unable to report the exportation.
            ``(2) If the drawback claims filed pursuant to subsection 
        (e), the Canadian or Mexican entry records.
            ``(3) For a deemed exportation, any record that establishes 
        the fact of deemed exportation that includes a description of 
        the article or merchandise by the 8-digit HTS subheading number 
        (or equivalent Schedule B number) under which the article or 
        merchandise would be classifiable, quantity, and declared 
        value.
    ``(g) Special Eligibility Rules.--
            ``(1) Vessels built for residents of a foreign country.--
        Drawback under this section may be claimed for materials 
        imported and used in the construction and equipment of vessels 
        built for foreign account and ownership, or for the government 
        of any foreign country, notwithstanding that such vessels may 
        not within the strict meaning of the term be exported.
            ``(2) Destroyed merchandise.--
                    ``(A) Eligibility for drawback.--Drawback under 
                this section may be claimed for merchandise or an 
                article incorporating the merchandise that is not 
                exported because it was destroyed if the person seeking 
                the drawback uses direct identification or another 
                approved accounting method to identify the merchandise 
                that is destroyed or the merchandise incorporated into 
                the article that is destroyed.
                    ``(B) Amount of drawback.--Subject to subparagraph 
                (C), the amount of drawback paid for a claim filed 
                pursuant to subparagraph (A) shall be--
                            ``(i) the average entered value per unit of 
                        merchandise, multiplied by
                            ``(ii) the duty, tax, and fee applicable to 
                        the designated line item of the merchandise, 
                        multiplied by
                            ``(iii) the number of units claimed, minus 
                        1 percent.
                    ``(C) Offsetting amounts.--The amount of duties, 
                taxes, and fees to be refunded pursuant to this 
                paragraph shall not include any duties, taxes, and fees 
                previously refunded to an importer of record or the 
                person claiming drawback. The value of the imported 
                merchandise on which drawback is claimed shall be 
                reduced by the value of any recovered materials 
                (including the value of any tax benefit or royalty 
                payment).
            ``(3) Agricultural products.--No drawback under this 
        section may be claimed for an agricultural product subject to 
        over-quota rate of duty established under a tariff-rate quota, 
        except under a direct identification basis and when such 
        product has not been used in the United States.
            ``(4) Merchandise not regularly entered.--Imported 
        merchandise that has not been regularly entered or withdrawn 
        for consumption shall not satisfy the exportation requirement 
        of this section.
            ``(5) Flavoring extracts; medicinal or toilet preparations; 
        bottled distilled spirits and wines.--
                    ``(A) In general.--Upon the exportation of 
                flavoring extracts, medicinal, or toilet preparations 
                (including perfumery) manufactured or produced in the 
                United States in part from domestic alcohol on which an 
                internal revenue tax has been paid, there shall be 
                allowed a drawback equal in amount to the tax found to 
                have been paid on the alcohol so used.
                    ``(B) Bottled distilled spirits and wines.--Upon 
                the exportation of bottled distilled spirits and wines 
                manufactured or produced in the United States on which 
                an internal revenue tax has been paid or determined, 
                there shall be allowed, under regulations to be 
                prescribed by the Commissioner of Internal Revenue, 
                with the approval of the Secretary, a drawback equal in 
                amount to the tax found to have been paid or determined 
                on such bottled distilled spirits and wines. In the 
                case of distilled spirits, the preceding sentence shall 
                not apply unless the claim for drawback is filed by the 
                bottler or packager of the spirits and unless such 
                spirits have been stamped or restamped, and marked, 
                especially for export, under regulations prescribed by 
                the Commissioner of Internal Revenue, with the approval 
                of the Secretary of the Treasury.
    ``(h) Prohibition on Other Claims for Drawback.--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.
    ``(i) Liability for Claim.--Importers, up to the amount of duties, 
taxes, and fees on the designated import permitted by the importer for 
drawback by the claimant, and drawback claimants, for the full amount 
of the claim, are jointly and severally liable to the United States for 
drawback claims. In implementing this section, the Secretary shall 
provide by regulation that the United States attempt to recover from 
the drawback claimant before attempting to recover from the importer.
    ``(j) Payment From Receipts of Puerto Rico.--A drawback under this 
section for merchandise shall be paid from the customs receipts of 
Puerto Rico if the duties for such merchandise were originally paid 
into the Treasury of Puerto Rico.''.
    (b) Report.--Not later than 1 year after the date the drawback 
processing module is operational and the ACE (as defined in section 
201) becomes the exclusive system of record nationally for drawback 
entries, the Commissioner of the Bureau of Customs and Border 
Protection shall submit to the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of Representatives a 
report that evaluates the utilization of direct identification in 
drawback claims, including measurement of the number of non-NAFTA, 
nondestruction claims filed using direct identification, and the impact 
on personnel allocation within the Bureau.
    (c) Technical and Conforming Amendments.--
            (1) Refunds.--Section 505(b) of the Tariff Act of 1930 (19 
        U.S.C. 1505(b)), is amended by adding at the end the following: 
        ``Refunds of excess moneys deposited, as determined on a 
        liquidation or reliquidation, shall be reduced by any amount 
        paid, on an accelerated basis or otherwise, to a drawback 
        claimant pursuant to section 313.''.
            (2) Review of protests.--The second sentence of section 
        515(a) of the Tariff Act of 1930 (19 U.S.C. 1515(a)) is amended 
        by striking the period at the end and inserting ``in accordance 
        with section 505.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date that the Commissioner of the Bureau of Customs and 
Border Protection publishes a finding that the Automated Commercial 
Environment is the exclusive system of record in the United States for 
entry summaries and shall apply to drawback claims designating import 
entry summaries or reconfigured entries that are filed on or after that 
date.

SEC. 235. FINAL AUTHORITY OVER MATTERS RELATING TO CUSTOMS BROKERS.

    (a) In General.--Section 641(a) of the Tariff Act of 1930 (19 
U.S.C. 1641(a)) is amended by striking paragraph (3) and inserting the 
following:
            ``(3) The term `Commissioner' means the Commissioner of 
        Customs.''.
    (b) Conforming Amendments.--Section 641 of the Tariff Act of 1930 
(19 U.S.C. 1641) is amended by striking ``Secretary'' each place it 
appears and inserting ``Commissioner''.

SEC. 236. ADVISORY COMMITTEE.

    Section 9503(c) of the Omnibus Budget Reconciliation Act of 1987 
(19 U.S.C. 2071 note) is amended--
            (1) in paragraph (1), by striking ``Advisory Committee on 
        Commercial Operations of the United States Customs Service'' 
        and inserting ``Customs Commercial Operations Advisory 
        Committee'';
            (2) by striking ``commercial operations of the United 
        States Customs Service'' each place it appears and inserting 
        ``customs commercial operations'';
            (3) by inserting ``, in consultation with the Secretary of 
        Homeland Security,'' after ``Secretary of the Treasury'' each 
        place it appears; and
            (4) by amending paragraph (4) to read as follows:
            ``(4) The Deputy Secretary of the Treasury and the Deputy 
        Secretary of Homeland Security, or their designees, shall 
        jointly preside over meetings of the Advisory Committee.''.

SEC. 237. STUDY AND REPORT.

    (a) Feasibility Study.--Not later than 1 year after the date of the 
enactment of this Act, the Commissioner of Customs shall conduct a 
study and report to the appropriate committees (as defined in section 
231(d)(2)) regarding the feasibility of developing and employing 
nonintrusive scanning systems in foreign ports to examine and analyze 
containerized cargo destined for the United States. The report shall 
include an assessment of any such systems currently used for--
            (1) detecting and analyzing nuclear or radiological 
        materials;
            (2) producing density scans or x-ray scans of containerized 
        cargo; and
            (3) recording unique identification information for 
        specific containerized cargo.
    (b) Elements of the Report.--The report required by subsection (a) 
shall take into account--
            (1) the infrastructure requirements and limitations of a 
        port;
            (2) the size of a port;
            (3) the maintenance or improvement of the current average 
        processing speed of containerized cargo through a port;
            (4) the scalability of a nonintrusive scanning system to 
        meet both current and future forecasted trade flows;
            (5) the ability of a nonintrusive scanning system to 
        automatically detect and analyze anomalies between information 
        collected for specific containerized cargo and established 
        baselines for such or similar cargo;
            (6) the ability of a nonintrusive scanning system to 
        automatically maintain and catalog appropriate data for 
        reference and analysis in the event of a transportation 
        disruption;
            (7) the potential costs of installing and maintaining a 
        nonintrusive scanning system in a port;
            (8) the ability of administering personnel to efficiently 
        manage and utilize the data produced by a nonintrusive scanning 
        system;
            (9) the ability to safeguard commercial data generated by 
        or submitted to a nonintrusive scanning system; and
            (10) the reliability of currently available technology.

                   Subtitle D--Staffing and Resources

SEC. 241. STAFFING FOR COMMERCIAL OPERATIONS AND REVENUE FUNCTIONS OF 
              THE BUREAU OF CUSTOMS AND BORDER PROTECTION.

    (a) Findings.--Congress finds the following:
            (1) The Homeland Security Act of 2002 prohibited the 
        Secretary of Homeland Security from reducing the staffing 
        levels attributable to the customs revenue functions described 
        in section 412(b)(2).
            (2) Since the creation of the Department of Homeland 
        Security in 2003, staffing levels for various personnel in the 
        Bureau of Customs and Border Protection dedicated to customs 
        revenue, trade facilitation, and trade enforcement functions 
        have declined by as much as 16 percent.
            (3) Since 2004, the number of full-time equivalents 
        performing commercial investigations within the Bureau of 
        Immigration and Customs Enforcement declined by as much as 15 
        percent.
            (4) In 2006, customs revenue collections are expected to 
        reach $31,500,000,000, a 25 percent increase over revenue 
        collected when the Department of Homeland Security was created 
        in 2003.
            (5) More than 11,000,000 commercial cargo containers 
        entered the United States in 2005. The number of containers 
        entering the United States is expected to increase by 10 
        percent in 2006, and by 2010, containerized traffic flows into 
        the United States are expected to double.
            (6) International trade accounted for \1/10\ of United 
        States economic growth 50 years ago, and today accounts for \1/
        4\ of that growth.
            (7) An 11-day labor dispute at the Port of Long Beach, 
        California, cost the United States economy at least 
        $1,000,000,000 per day, highlighting the need for trade 
        resumption preparedness among United States Government 
        agencies, ports, and port users.
            (8) Dedicating sufficient resources to customs revenue and 
        commercial trade facilitation and enforcement functions is 
        critical to the economic security and well-being of the United 
        States.
    (b) Authorization for Commercial Operations and Revenue 
Functions.--The Act of February 13, 1911 (36 Stat. 901, chapter 46; 19 
U.S.C. 267) is amended by inserting after section 5 the following new 
section:

``SEC. 5A. AUTHORIZATION FOR COMMERCIAL OPERATIONS AND REVENUE 
              FUNCTIONS.

    ``(a) In General.--In addition to any monies hereafter appropriated 
to the Bureau of Customs and Border Protection of the Department of 
Homeland Security, there are authorized to be appropriated for the 
purpose of increasing the number of personnel in the Bureau available 
to perform commercial operations and customs revenue functions, 
described in section 412(b)(2) of the Homeland Security Act of 2002 (6 
U.S.C. 212(b)(2)), to remain available until expended, the following:
            ``(1) $105,000,000 in fiscal year 2007.
            ``(2) $162,500,000 in fiscal year 2008.
            ``(3) $168,000,000 in fiscal year 2009.
            ``(4) $174,000,000 in fiscal year 2010.
            ``(5) $180,000,000 in fiscal year 2011.
    ``(b) Additional Personnel.--The additional personnel authorized 
under subsection (a) shall include:
            ``(1) An increase of 4 percent in the number of Customs and 
        Border Protection Officers over the number of officers employed 
        on the day before the date of the enactment of this Act to 
        assist in the commercial operations of the Bureau, including 
        inspection and cargo clearance at ports of entry, of which the 
        Commissioner of Customs shall assign--
                    ``(A) at least 1 additional officer at each port of 
                entry in the United States; and
                    ``(B) the balance of the additional officers 
                authorized by this subsection among ports of entry in 
                the United States based upon the volume of trade and 
                the incidence of nonvoluntarily disclosed trade and 
                customs law violations observed among such ports of 
                entry.
            ``(2) An increase of 15 percent over the number of 
        nonsupervisory import specialists employed at the end of fiscal 
        year 2002 for the purpose of performing trade facilitation and 
        enforcement functions.
            ``(3) An increase of 15 percent over the number of auditors 
        employed at the end of fiscal year 2002 for the purpose of 
        validating, verifying, revalidating, and reverifying CIPP 
        participants pursuant to section 499(d) of the Tariff Act of 
        1930.
    ``(c) Resource Allocation Model.--Not later than 1 year after the 
date of the enactment of this Act, and every 2 years thereafter, the 
Commissioner of Customs shall prepare and submit to the Committee on 
Finance of the Senate and the Committee on Ways and Means of the House 
of Representatives a Resource Allocation Model to determine the optimal 
staffing levels required to carry out the commercial operations of the 
Bureau of Customs and Border Protection, including inspection and cargo 
clearance and the revenue functions described in section 412(b)(2) of 
the Homeland Security Act of 2002 (6 U.S.C. 212(b)(2)). The model shall 
comply with the requirements of section 412(b)(1) of such Act and shall 
take into account previous staffing models and historic and projected 
trade volumes and trends. The Resource Allocation Model shall apply 
both risk-based and random sampling approaches for determining adequate 
staffing needs for priority trade functions, including--
            ``(1) performing revenue functions;
            ``(2) enforcing antidumping and countervailing laws;
            ``(3) protecting intellectual property rights;
            ``(4) enforcing provisions of law relating to textiles;
            ``(5) conducting agricultural inspections; and
            ``(6) enforcing penalties.
    ``(d) Intellectual Property Rights Enforcement Division.--
            ``(1) Establishment.--There shall be established within the 
        Bureau of Customs and Border Protection Office of Regulations 
        and Rulings an Intellectual Property Rights Enforcement 
        Division (in this section referred to as the `Division'). The 
        Division shall be headed by a Director.
            ``(2) Purpose.--Oversight of all activities related to 
        intellectual property rights within the Bureau of Customs and 
        Border Protection shall be centralized in the Division.
            ``(3) Duties of the director.--The Director shall--
                    ``(A) increase enforcement cooperation between 
                customs agencies of foreign governments and the United 
                States;
                    ``(B) assist in intellectual property rights 
                enforcement capacity building in countries identified 
                as either a `Priority Foreign Country', or on the 
                `Priority Watch List' or the `Watch List' pursuant to 
                section 182 of the Trade Act of 1974 (19 U.S.C. 2242);
                    ``(C) consult with the private sector in training 
                officers of the Bureau of Customs and Border Protection 
                in the detection and identification of counterfeit 
                products;
                    ``(D) assist in the development and coordination of 
                intellectual property rights training at the United 
                States ports; and
                    ``(E) coordinate with other agencies, departments, 
                and personnel of the United States Government with 
                respect to the enforcement of intellectual property 
                rights.
            ``(4) Staffing.--
                    ``(A) Customs and border protection.--The 
                Commissioner shall increase the staff and resources of 
                the Bureau of Customs and Border Protection that are 
                assigned to enforce intellectual property rights--
                            ``(i) by hiring 10 additional attorneys and 
                        assigning at least 10 attorneys to the 
                        Division; and
                            ``(ii) by hiring 5 additional auditors and 
                        assigning at least 5 auditors to the Division.
                    ``(B) Bureau of immigration and customs 
                enforcement.--The Director of Immigration and Customs 
                Enforcement shall assign a senior investigative liaison 
                to be stationed within the Division with responsibility 
                for coordinating the intellectual property rights 
                enforcement efforts of the Bureau of Immigration and 
                Customs Enforcement with the enforcement efforts of the 
                Division.
            ``(5) Authorization of appropriations.--In addition to any 
        sums hereafter authorized to be appropriated, there are 
        authorized to be appropriated to the Department of Homeland 
        Security for the operations of the Division within the Bureau 
        of Customs and Border Protection the following sums, to remain 
        available until expended:
                    ``(A) $3,000,000 for fiscal year 2007.
                    ``(B) $3,400,000 for fiscal year 2008.
                    ``(C) $3,800,000 for fiscal year 2009.
                    ``(D) $4,200,000 for fiscal year 2010.
                    ``(E) $4,600,000 for fiscal year 2011.
    ``(e) Enforcement Other Than Intellectual Property Rights 
Enforcement.--The Director of Immigration and Customs Enforcement shall 
assign a senior investigative liaison to be stationed within the Office 
of Field Operations of the Bureau of Customs and Border Protection with 
responsibility for coordinating the enforcement efforts of the Bureau 
of Immigration and Customs Enforcement, other than enforcement efforts 
relating to the protection of intellectual property rights, with the 
enforcement efforts of the Bureau of Customs and Border Protection.
    ``(f) Regulations to Implement Trade Agreements.--The Commissioner 
of Customs shall designate no less than 5 attorneys within the Bureau 
of Customs and Border Protection with primary responsibility for the 
prompt development and promulgation of regulations necessary to 
implement any trade agreement entered into by the United States.''.
    (c) Report by the Comptroller General.--Not later than 1 year after 
the date of the enactment of this Act, the Comptroller General of the 
United States shall assess and report to Congress regarding--
            (1) the allocation of personnel and resources of the Bureau 
        of Customs and Border Protection to commercial operations, 
        including inspection and cargo clearance at ports of entry and 
        revenue functions described in section 412(b)(2) of the 
        Homeland Security Act of 2002;
            (2) the effectiveness of the Bureau of Customs and Border 
        Protection's enforcement of the priority trade functions 
        described in section 5A of the Act of February 13, 1911, as 
        added by section 241 of this Act;
            (3) any recommendations for the further dedication of 
        resources needed to facilitate trade, ensure compliance with 
        United States trade laws, and protect customs revenue; and
            (4) in consultation with the COAC, the extent to which the 
        merchandise processing fee and other user fees are sufficient 
        to pay for the related services provided by personnel of the 
        Bureau of Customs and Border Protection and recommendations for 
        adjusting such fees.
    (d) Hours of Operation.--
            (1) Study.--The Commissioner of Customs shall study the 
        feasibility of extending the hours of operation at ports of 
        entry into the United States, taking into account 
        differentiating factors such as geographic location, actual and 
        projected trade volume, infrastructure, and staffing level, and 
        report the results of the study to the Committee on Finance of 
        the Senate and the Committee on Ways and Means of the House of 
        Representatives no later than September 30, 2007.
            (2) Pilot program.--During fiscal year 2007, the 
        Commissioner of Customs shall extend the hours of commercial 
        operation at the Santa Teresa Port-of-Entry to a minimum of 16 
        hours per day. The Commissioner shall report to the Committee 
        on Finance of the Senate and the Committee on Ways and Means of 
        the House of Representatives no later than September 30, 2007, 
        on the impact of such extended hours of operation on the port 
        facility, staff, and trade volume handled by the port, and 
        shall determine whether to extend such hours of operation 
        beyond fiscal year 2007.

  TITLE III--AUTHORIZATION OF APPROPRIATIONS FOR OTHER TRADE AGENCIES

SEC. 301. AUTHORIZATION OF APPROPRIATIONS FOR UNITED STATES 
              INTERNATIONAL TRADE COMMISSION.

    (a) Fiscal Year 2007.--There are authorized to be appropriated for 
the salaries and expenses of the United States International Trade 
Commission not to exceed $64,200,000 for fiscal year 2007.
    (b) Fiscal Years 2008 and 2009.--Section 330(e)(2)(A) of the Tariff 
Act of 1930 (19 U.S.C. 1330(e)(2)(A)) is amended by striking clauses 
(i) and (ii) and inserting the following:
                            ``(i) $67,100,000 for fiscal year 2008.
                            ``(ii) $69,600,000 for fiscal year 2009.''.

SEC. 302. AUTHORIZATION OF APPROPRIATIONS FOR THE OFFICE OF THE UNITED 
              STATES TRADE REPRESENTATIVE.

    (a) Fiscal Year 2007.--There are authorized to be appropriated for 
the salaries and expenses of the Office of the United States Trade 
Representative not to exceed $47,800,000 for fiscal year 2007.
    (b) Fiscal Years 2008 and 2009.--Section 141(g)(1)(A) of the Trade 
Act of 1974 (19 U.S.C. 2171(g)(1)(A)) is amended by striking clauses 
(i) and (ii) and inserting the following:
                            ``(i) $49,700,000 for fiscal year 2008.
                            ``(ii) $51,600,000 for fiscal year 2009.''.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. METHAMPHETAMINE AND METHAMPHETAMINE PRECURSOR CHEMICALS.

    (a) Definition.--In this section, the term ``methamphetamine 
precursor chemicals'' means the chemicals ephedrine, pseudoephedrine, 
or phenylpropanolamine, including each of the salts, optical isomers, 
and salts of optical isomers of such chemicals.
    (b) Compliance With Performance Plan Requirements.--For each of the 
fiscal years of 2007 through 2011, as part of the annual performance 
plan required in the budget submission of the Bureau of Customs and 
Border Protection under section 1115 of title 31, United States Code, 
the Commissioner of Customs shall establish performance indicators 
relating to the seizure of methamphetamine and methamphetamine 
precursor chemicals in order to evaluate the performance goals of the 
Bureau with respect to the interdiction of illegal drugs entering the 
United States.
    (c) Study and Report Relating to Methamphetamine and 
Methamphetamine Precursor Chemicals.--
            (1) Analysis.--The Commissioner of Customs shall, on an 
        annual basis, analyze the movement of methamphetamine and 
        methamphetamine precursor chemicals into the United States. In 
        conducting the analysis, the Commissioner shall--
                    (A) consider the entry of methamphetamine and 
                methamphetamine precursor chemicals through ports of 
                entry, between ports of entry, through the mails, and 
                through international courier services;
                    (B) examine the export procedures of each foreign 
                country where the shipments of methamphetamine and 
                methamphetamine precursor chemicals originate and 
                determine if changes in the country's customs 
                provisions would alleviate the export of 
                methamphetamine and methamphetamine precursor 
                chemicals; and
                    (C) identify emerging trends in smuggling 
                techniques and strategies.
            (2) Report.--Not later than September 30, 2007, and 
        annually thereafter, the Commissioner shall submit a report to 
        the Committee on Finance and the Committee on Foreign Relations 
        of the Senate, and the Committee on Ways and Means and the 
        Committee on International Relations of the House of 
        Representatives, that includes--
                    (A) the analysis described in paragraph (1); and
                    (B) the Bureau's utilization of the analysis to 
                target shipments presenting a high risk for smuggling 
                or circumvention of the Combat Methamphetamine Epidemic 
                Act of 2005 (Public Law 109-177).
            (3) Availability of analysis.--The Commissioner shall 
        ensure that the analysis described in paragraph (1) is made 
        available in a timely manner to the Secretary of State to 
        facilitate the Secretary in fulfilling the Secretary's 
        reporting requirements in section 722 of the Combat 
        Methamphetamine Epidemic Act of 2005 (22 U.S.C. 2291h).

SEC. 402. UNITED STATES PORT AND TERMINAL OPERATOR COMPETITIVENESS.

    (a) Review and Report on Port Competitiveness.--The Commissioner of 
Customs, in consultation with the Secretary of the Treasury and the 
United States Trade Representative, shall review and compare the fees, 
charges, and standards imposed on United States ports, port terminal 
operators, and persons who use United States ports with the fees, 
charges, and standards imposed on ports and port terminal operators in 
Canada or Mexico and persons who use those ports.
    (b) Content of Review.--The review described in subsection (a) 
shall include an assessment of the impact of the fees, charges, and 
standards on the competitiveness of United States ports and an analysis 
of whether the fees, charges, and standards result in the diversion of 
cargo from United States ports to ports in Canada or Mexico.
    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Commissioner shall submit a report on the results of 
the review conducted under subsection (a) along with recommendations 
for addressing any negative impact the fees, charges, and standards 
have on the competitiveness of United States ports and port terminal 
operators. The report shall be submitted to the Committee on Finance of 
the Senate and the Committee on Ways and Means of the House of 
Representatives.

SEC. 403. CHARTER FLIGHTS.

    Section 13031(e)(1) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(e)(1)) is amended--
            (1) by striking ``(1) Notwithstanding section 451 of the 
        Tariff Act of 1930 (19 U.S.C. 1451) or any other provision of 
        law (other than paragraph (2))'' and inserting the following:
            ``(1) In general.--
                    ``(A) Scheduled flights.--Notwithstanding section 
                451 of the Tariff Act of 1930 (19 U.S.C. 1451) or any 
                other provision of law (other than subparagraph (B) and 
                paragraph (2))''; and
            (2) by adding at the end the following:
                    ``(B) Charter flights.--If a charter air carrier 
                (as defined in section 40102(13) of title 49, United 
                States Code) specifically requests that customs border 
                protection services for passengers and their baggage be 
                provided for a charter flight arriving after normal 
                operating hours at an airport that is an established 
                port of entry serviced by the Bureau of Customs and 
                Border Protection and overtime funds for those services 
                are not available, the appropriate customs border 
                protection officer may assign a sufficient number of 
                employees from the Bureau of Customs and Border 
                Protection (if available) to perform any service that 
                could lawfully be performed during regular hours of 
                operation, and any overtime fees incurred in connection 
                with such service shall be paid by the charter air 
                carrier.''.

SEC. 404. TECHNICAL AMENDMENTS TO CUSTOMS MODERNIZATION.

    (a) Entry of Merchandise.--Section 484(a) of the Tariff Act of 1930 
(19 U.S.C. 1484(a)) is amended--
            (1) in paragraph (1), by amending subparagraph (A) to read 
        as follows:
                    ``(A) make entry therefor by filing with the Bureau 
                of Customs and Border Protection such documentation or, 
                pursuant to an authorized electronic data interchange 
                system, such information as is necessary to enable the 
                Bureau of Customs and Border Protection to determine 
                whether the merchandise may be released from custody of 
                the Bureau of Customs and Border Protection;''; and
            (2) in paragraph (2)(A), in the second sentence, by 
        inserting after ``covering'' the following: ``merchandise 
        released under a special delivery permit pursuant to section 
        448(b) and''.
    (b) Refunds and Errors.--Section 520(a) of the Tariff Act of 1930 
(19 U.S.C. 1520(a)) is amended--
            (1) in paragraph (1), by striking the semicolon at the end 
        and inserting a period;
            (2) in paragraph (2), by striking ``; and'' at the end and 
        inserting a period; and
            (3) in paragraph (4)--
                    (A) by inserting ``an importer of record declares 
                or'' before ``it is ascertained''; and
                    (B) by striking ``by reason of clerical error''.
    (c) Entry From Warehouse.--Section 557(a) of the Tariff Act of 1930 
(19 U.S.C. 1557(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the second sentence, by inserting after 
                ``the date of importation'' the following: ``, or such 
                longer period of time as the Bureau of Customs and 
                Border Protection may at its discretion permit upon 
                proper request being filed and good cause shown''; and
                    (B) in subparagraph (A), by inserting after ``the 
                date of importation'' the following: ``or such longer 
                period of time as the Bureau of Customs and Border 
                Protection may at its discretion permit upon proper 
                request being filed and good cause shown''; and
            (2) in paragraph (2), by inserting after ``the date of 
        importation'' the following: ``, or such longer period of time 
        as the Bureau of Customs and Border Protection may at its 
        discretion permit upon proper request being filed and good 
        cause shown,''.
    (d) Abandoned Goods.--Section 559 of the Tariff Act of 1930 (19 
U.S.C. 1559) is amended by inserting after ``the date of importation'' 
each place it appears the following: ``, or such longer period of time 
as the Bureau of Customs and Border Protection may at its discretion 
permit upon proper request being filed and good cause shown''.
    (e) Manipulation in Warehouse.--Section 562 of the Tariff Act of 
1930 (19 U.S.C. 1562) is amended--
            (1) by amending the first sentence to read as follows: 
        ``Merchandise shall only be withdrawn from a bonded warehouse 
        in such quantity and in such condition as the Secretary of the 
        Treasury shall by regulation prescribe.''; and
            (2) in the second sentence, by striking ``All merchandise 
        so withdrawn'' and all that follows through ``except that upon 
        permission therefor'' and inserting ``Upon permission''.

SEC. 405. ARTICLES REPAIRED OR ALTERED.

    (a) In General.--U.S. Note 3 to subchapter II of chapter 98 of the 
Harmonized Tariff Schedule of the United States is amended by adding at 
the end the following:
            ``(f) For purposes of subheading 9802.00.40 or 9802.00.50, 
        an article exported and subsequently imported into the United 
        States shall be considered to retain its identity 
        notwithstanding that it may contain one or more essential 
        components recovered from other such or similar articles 
        exported from the United States.''.
    (b) Effective Date.--The amendment made by this section applies to 
articles classifiable under subheading 9802.00.40 or 9802.00.50 of the 
Harmonized Tariff Schedule of the United States that are entered, or 
withdrawn from warehouse for consumption, on or after the date that is 
60 days after the date of the enactment of this Act.
                                 <all>