1.Short
title; table of contents
(a)This Act may be cited
as the Customs and Trade Facilitation
Reauthorization Act of 2006
.
(b)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.
<enum>I</enum><header>Customs and trade
facilitation functions</header>
<subtitle id="id27FE87EA3866473D95AEA1173A0F98F0"><enum>A</enum><header>Functions other
than investigative functions</header>
<section id="ID6630ee6f77464ec69eb0c9dacdd73be1"><enum>101.</enum><header>Establishment
of Bureau; Commissioner</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id0C13F0D50D3346EE9D8B18665CAA350C" style="OLC">
<section id="idA227BB0C8E614194A0A8AA28F0F5743A" section-type="section-one"><enum>1.</enum><header>Establishment of Bureau;
Commissioner</header>
<subsection id="ID077c937fe5ca4a30a67b5bd46b618883"><enum>(a)</enum><header>Establishment
of Bureau</header><text>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—</text>
<paragraph id="IDa24e605a320e42b3a7a67e2fc28562cc"><enum>(1)</enum><text>be at the head of
the Bureau of Customs and Border Protection;</text>
</paragraph><paragraph id="ID95bde4fb59994967a04d95544b59f323"><enum>(2)</enum><text>carry out the
duties and powers prescribed by the Secretary of Homeland Security and by law;
and</text>
</paragraph><paragraph id="IDccc0773976464324b1cb399acd002a54"><enum>(3)</enum><text>report directly
to the Deputy Secretary of Homeland Security.</text>
</paragraph></subsection><subsection id="IDf5b91700399442d2beca9e0f0bb8c0c1"><enum>(b)</enum><header>Compensation</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID854ce9836ba94968ae072013e202cd25"><enum>102.</enum><header>Officer and
employees</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id60C192005F574D3AB99DDF468739A39C" style="OLC">
<section id="IDafa0449ee10242d680f7851134903b29"><enum>2.</enum><header>Officers and
employees of Bureau</header>
<subsection id="ID28639de1dca749ed8409ea04c6bb6cfc"><enum>(a)</enum><header>Deputy
commissioner and other officers</header><text>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.</text>
</subsection><subsection id="IDe58aa2c99e6d447095db9b39a344e874"><enum>(b)</enum><header>Absence or
disability of Commissioner</header><text>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.</text>
</subsection><subsection id="IDb08ff2c49796431eb03099922e960d9f"><enum>(c)</enum><header>Duties of
personnel</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="ID80321e485f624868b4a8ee0215355fa8"><enum>103.</enum><header>Separate
budget for Bureaus</header>
<subsection id="id4884F8073449467BB37F675BE1182538"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection commented="no" id="id0B5E22DC0A80464CBAE01C2D8AFF1CD0"><enum>(b)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 414 of the Homeland Security Act of
2002 (6 U.S.C. 214) is hereby repealed.</text>
</subsection></section><section id="ID6dfa0c0304194fd281894bfdc4c4cee4"><enum>104.</enum><header>Revolving
fund</header><text display-inline="no-display-inline">The matter under the
heading <quote><header-in-text level="section" style="traditional">revolving
fund, bureau of customs</header-in-text></quote> 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 <quote>United States Customs Service</quote> and inserting
<quote>Bureau of Customs and Border Protection</quote>.</text>
</section><section id="IDadca8e1d3787470c86a18167ce635952"><enum>105.</enum><header>Authorization
of appropriations</header>
<subsection id="ID85ce41fded384a8089cc3ad3290066b1"><enum>(a)</enum><header>In
general</header><text>Section 301 of the Customs Procedural Reform and
Simplification Act of 1978 (19 U.S.C. 2075) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idFB1D3AE5605F45A999B09B8DE27E3263" style="OLC">
<section id="ID21a1a193c21e440ab0d194ffa7adf464"><enum>301.</enum><header>Appropriations
authorization</header>
<subsection id="IDe6d4d966e7834cc5893208c183f413a9"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="ID210cc93287f64517914b21ef0a026e87"><enum>(b)</enum><header>Merchandise
processing fee</header><text>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.</text>
</subsection><subsection id="ID98a569ea66ca45759d8ddd9b3b75620d"><enum>(c)</enum><header>Mandatory
<enum-in-header>10</enum-in-header>-day deferment</header><text>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.</text>
</subsection><subsection id="IDf84ab9b1ae9f4d6582675e3958755be7"><enum>(d)</enum><header>Overtime pay
limitations; waiver</header><text>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.</text>
</subsection><subsection id="IDebe1a82352624616872a9422fc16fec4"><enum>(e)</enum><header>Pay
comparability authorization</header><text>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).</text>
</subsection><subsection id="ID0050e1b2759148c7960739e8be66b8f6"><enum>(f)</enum><header>Use of savings
resulting from administrative consolidations</header><text>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.</text>
</subsection><subsection id="ID1aaabbc241eb4ea9a6cc4c04994d8442"><enum>(g)</enum><header>Allocation of
resources; report to congressional committees</header><text>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—</text>
<paragraph id="IDe40deeeb11c041bea7711529d09726c5"><enum>(1)</enum><text>result in any
significant reduction in force of employees of the Bureau of Customs and Border
Protection other than by means of attrition;</text>
</paragraph><paragraph id="ID52aa4d4e3bf2426098fc0c55e34da071"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="ID373eee957ceb49a4a47916b57827f468"><enum>(3)</enum><text>eliminate or
relocate any office of the Bureau of Customs and Border Protection;</text>
</paragraph><paragraph id="IDa7bbd8e7569e4f498a9a21f29281e716"><enum>(4)</enum><text>eliminate any
port of entry; or</text>
</paragraph><paragraph id="IDa2d8138fb5e74bb68e61a060a7f0bbeb"><enum>(5)</enum><text>significantly
reduce the number of employees assigned to any office or any function of the
Bureau of Customs and Border
Protection.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID0f6ae1db27334014aacb38b77ad32542"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="idC0192A2E5CBD4EB582E30EB21E70696D"><enum>(1)</enum><header>In
general</header><text>Section 5(c) of the Act of February 13, 1911 (19 U.S.C.
267(c)), is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id248D1AEFD7C64B8194A72CF5799A5BE6" style="OLC">
<subsection id="id0D30406EF32741629445D0AF098B6A50"><enum>(c)</enum><header>Limitations</header>
<paragraph id="id79B8FA67D513404298BC77140E664DA7"><enum>(1)</enum><header>Fiscal year
cap</header><text>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.</text>
</paragraph><paragraph id="IDbbd38c81bbd3473894dbe09fbd0f4eab"><enum>(2)</enum><header>Exclusivity of
pay under this Section</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id15B91D4EA3C3499DA8A7C3716C5D155D"><enum>(2)</enum><header>Basic
pay</header><text>Section 8331(3)(G) of title 5, United States Code, is
amended—</text>
<subparagraph id="id6FF86726A5AD428584A923C360B541FA"><enum>(A)</enum><text>by striking
<quote>a customs officer</quote> and inserting <quote>employee of the Bureau of
Customs and Border Protection</quote>; and</text>
</subparagraph><subparagraph id="idFBD698363F44494C9D94E7E2E7CC46CD"><enum>(B)</enum><text>by striking
<quote>customs officers</quote> and inserting <quote>such
employees</quote>.</text>
</subparagraph></paragraph></subsection></section><section id="IDe77e5a435e32461d8feb8a86d2cda4d7"><enum>106.</enum><header>Advances in
foreign countries</header><text display-inline="no-display-inline">The first
section of the Act of May 6, 1930 (53 Stat. 660, chapter 115; 19 U.S.C. 2076),
is amended by striking <quote>United States Customs Service</quote> and
inserting <quote>Bureau of Customs and Border Protection or the Bureau of
Immigration and Customs Enforcement</quote>.</text>
</section><section id="ID2a6b119151634d1a8a25f9ca1465d02e"><enum>107.</enum><header>Advances for
enforcement of customs provisions</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id8B80935450C8425388DA6A63FFBB39C3" style="OLC">
<section id="ID80116ec094434a0cb36768ede7caa204"><enum>2.</enum><header>Advances for
enforcement of customs provisions</header><text display-inline="no-display-inline">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.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDf1b07ad3539d462fbc3a93c895e19555"><enum>108.</enum><header>Certification
of reason for advance</header><text display-inline="no-display-inline">Section
3 of the Act of August 7, 1939 (53 Stat. 1263, chapter 566; 19 U.S.C. 2078), is
amended by striking <quote>Commissioner of Customs</quote> and inserting
<quote>Commissioner of Customs or the Director of Immigration and Customs
Enforcement</quote>.</text>
</section><section id="ID82c1c61fa4ed42ceacbce11c7fa0f0d2"><enum>109.</enum><header>Payments in
foreign countries; claims for reimbursement</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id0E9FB8839A414159A6244911D2BC85F0" style="OLC">
<section id="ID4ca723ccbb394b7498fd0c3742683818"><enum>4.</enum><header>Payments in
foreign countries; claims for reimbursement</header><text display-inline="no-display-inline">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.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID3e03f04b16684f598ccf184f70b39421"><enum>110.</enum><header>Undercover
investigative operations</header><text display-inline="no-display-inline">Section 3131 of the Customs Enforcement Act
of 1986 (19 U.S.C. 2081) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idE7DC8E6AB7564A2E84FEFF75234F308A" style="OLC">
<section id="ID17a22af0164f419487e6d18c236b477c"><enum>3131.</enum><header>Undercover
investigative operations of the Bureau of Immigration and Customs
Enforcement</header>
<subsection id="ID993b2d5aa1e1497caf2d8ddb892f30cd"><enum>(a)</enum><header>Certification
required for exemption of undercover operations from certain
laws</header><text>With respect to any undercover investigative operation of
the Bureau of Immigration and Customs Enforcement (in this section referred to
as the <quote>Bureau</quote>) 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—</text>
<paragraph id="ID6c5c11dcc01449728117dc7a3fb7371b"><enum>(1)</enum><text>sums authorized
to be appropriated may be used—</text>
<subparagraph id="IDfdfd88afa4494b4b9a22bc499925b424"><enum>(A)</enum><text>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—</text>
<clause id="ID29efb27884fd46a3a3d557ba16fd99d7"><enum>(i)</enum><text>sections 1341 and
3324 of title 31, United States Code;</text>
</clause><clause id="ID3ef6a517df6a47ed98754112b2994978"><enum>(ii)</enum><text>sections 3732(a)
and 3741 of the Revised Statutes of the United States (41 U.S.C. 11(a) and
22);</text>
</clause><clause id="IDb7a51593a7b94869ad092eb719753eb2"><enum>(iii)</enum><text>section 305 of
the Act of June 30, 1949 (63 Stat. 396; 41 U.S.C. 255);</text>
</clause><clause id="IDaa31da60b378443e99ef446aeba2fc97"><enum>(iv)</enum><text>section 8141 of
title 40, United States Code; and</text>
</clause><clause id="IDde7bde9f9a904fe4a2cb0989e7b2e345"><enum>(v)</enum><text>section 304(a) of
the Federal Property and Administrative Services Act of 1949 (41 U.S.C.
254(a)); and</text>
</clause></subparagraph><subparagraph id="IDfbd3b9fb1b004d769a7f530e1e0c6b8f"><enum>(B)</enum><text>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;</text>
</subparagraph></paragraph><paragraph id="ID0168e8faab9b449b94c6b130672fe3af"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="ID7120181ea0b447a4920e02c53ad0c1a1"><enum>(3)</enum><text>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;</text>
</paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection><subsection id="ID6e44d42ed0a141fabb36c3ddbe403a30"><enum>(b)</enum><header>Liquidation of
corporations and business entities</header><text>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.</text>
</subsection><subsection id="ID13fb0b05b2a448dc9bbc4021ef7a05da"><enum>(c)</enum><header>Deposit of
proceeds</header><text>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.</text>
</subsection><subsection id="ID3f287cb06aa04d18931575c993a77b81"><enum>(d)</enum><header>Audits</header>
<paragraph id="id5B560318C72C4FB698BDD4394BEF34C0"><enum>(1)</enum><header>In
general</header><text>The Bureau shall—</text>
<subparagraph id="idCE740E3956FF493DA16D9413F4DE7D49"><enum>(A)</enum><text>conduct a
detailed financial audit of each undercover investigative operation that is
closed in each fiscal year, and—</text>
</subparagraph><subparagraph id="ID0cbe49037ac04072831aed28ed33dd37"><enum>(B)</enum><text>submit the
results of the audit in writing to the Secretary of Homeland Security and the
Secretary of the Treasury; and</text>
</subparagraph><subparagraph id="ID7fed71dcebad4061a82970aa5bc9059b"><enum>(C)</enum><text>not later than
180 days after such undercover operation is closed, submit a report to the
Congress concerning such audit.</text>
</subparagraph></paragraph><paragraph id="IDbb279b88ed3342a6b294d0a245ec8834"><enum>(2)</enum><header>Report</header><text>The
Bureau shall also submit a report annually to the Congress specifying as to its
undercover investigative operations—</text>
<subparagraph id="ID99070f65751c49e0b49852d131eb6a60"><enum>(A)</enum><text>the number, by
program, of undercover investigative operations pending at the end of the
1-year period for which such report is submitted;</text>
</subparagraph><subparagraph id="IDba677837b436487c908d2a5fd11ca0c5"><enum>(B)</enum><text>the number, by
program, of undercover investigative operations commenced in the 1-year period
preceding the period for which such report is submitted; and</text>
</subparagraph><subparagraph id="ID731105be0ec34efeb01ffa13b75b055d"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="ID0a3a8839ae69413e9eae277a281dc40a"><enum>(e)</enum><header>Definitions</header><text>For
purposes of subsection (d), the following applies:</text>
<paragraph id="ID4ae86bf9806648b78d3edfbcae923770"><enum>(1)</enum><header>Closed</header><text>The
term <term>closed</term> refers to the earliest point in time at which—</text>
<subparagraph id="ID5e1a678e415443b8b9023350523e2621"><enum>(A)</enum><text>all criminal
proceedings (other than appeals) are concluded; or</text>
</subparagraph><subparagraph id="IDf56556ba5c984a56a5890dd2daa240be"><enum>(B)</enum><text>covert activities
are concluded, whichever occurs later.</text>
</subparagraph></paragraph><paragraph id="IDf8fc4cc81d604daa8571317caad78413"><enum>(2)</enum><header>Employees</header><text>The
term <term>employees</term> means employees of the Bureau, as defined in
section 2105 of title 5, United States Code.</text>
</paragraph><paragraph id="ID7d50200066374452948cb8dbabbbcabb"><enum>(3)</enum><header>Undercover
investigative operation; undercover operation</header>
<subparagraph id="idC07C9FE9F8434EC781BDF4625AFA9E5B"><enum>(A)</enum><header>In
general</header><text>The terms <term>undercover investigative operation</term>
and <term>undercover operation</term> mean any undercover investigative
operation of the Bureau—</text>
<clause id="IDe80cdff2ab97487eabafc8a25c05394c"><enum>(i)</enum><text>in which—</text>
<subclause id="IDc68a311b0a91401e900e7db713540bc2"><enum>(I)</enum><text>the gross
receipts (excluding interest earned) exceed $50,000; or</text>
</subclause><subclause id="IDc1161423c2d04755bdbc382686d20fd5"><enum>(II)</enum><text>expenditures
(other than expenditures for salaries of employees) exceed $150,000; and</text>
</subclause></clause><clause id="ID664aab47f16a46f4a2799cacc710755d"><enum>(ii)</enum><text>which is exempt
from section 3302 or 9102 of title 31, United States Code.</text>
</clause></subparagraph><subparagraph id="id9C53DE147AA34D5FB95BC5967E4EF337"><enum>(B)</enum><header>Exception</header><text>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.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID8d59f75dbac244918a253bff34652857"><enum>111.</enum><header>Customs
administration</header><text display-inline="no-display-inline">Section 113 of
the Customs and Trade Act of 1990 (19 U.S.C. 2082) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idFCDB48FBE32540C6AD79A82562DCECEA" style="OLC">
<section id="ID41358d3857a248afa7bc20f9eb626f9f"><enum>113.</enum><header>Customs
Administration</header>
<subsection id="ID60323181b9624ce99ee0c59a52120009"><enum>(a)</enum><header>In
general</header><text>The Commissioner of Customs and the Director of
Immigration and Customs Enforcement each shall—</text>
<paragraph id="IDace6dbbec95d429aae880a200dd6d9cb"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="ID393cb3c87704444e8d8f9ff1910b3367"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="IDc251cb0ea27b46588a954944e61059c8"><enum>(b)</enum><header>Survey
reports</header><text>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).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDa38820c9873c409c84a725fdb6dd81cf"><enum>112.</enum><header>Annual
national trade and customs law violation estimates and enforcement
strategy</header><text display-inline="no-display-inline">Section 123 of the
Customs and Trade Act of 1990 (19 U.S.C. 2083) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id0E8EFA718AC04805A8A7E2F659D92E68" style="OLC">
<section id="ID3003c53864ed4f2daf95737c1dfe6dfc"><enum>123.</enum><header>Annual
national trade and customs law violation estimates and enforcement
strategy</header>
<subsection id="ID4a9e33c6e3b84740a2e65b29f256051c"><enum>(a)</enum><header>Violation
estimates</header><text>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
<quote>Committees</quote>) a report that contains estimates of—</text>
<paragraph id="IDb9e1491f856341299cbd8e722851f6c9"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="IDc9b765ac4cec4eb6b316c6e4bfcc1203"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="ID4226271d0a1d4384b2aae0e09074a059"><enum>(b)</enum><header>Applicable
statutory provisions</header><text>The Commissioner of Customs and the Director
of Immigration and Customs Enforcement, after consultation with the
Committees—</text>
<paragraph id="IDe253152fc1f64566b3c4548da4116536"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="ID9159652da2114ae1848f7a05ffc26f09"><enum>(2)</enum><text>may from time to
time amend the list developed under paragraph (1).</text>
</paragraph></subsection><subsection id="ID0d3e5a7cfa7a4dbf853bb6843f831e9c"><enum>(c)</enum><header>Enforcement
strategy</header><text>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—</text>
<paragraph id="ID8168e50e7ee54a3780028cf8454b1d9a"><enum>(1)</enum><text>develop a
national uniform enforcement strategy for dealing, during that year, with the
violations estimated in the report; and</text>
</paragraph><paragraph id="IDcb1b5d4f303e4ed6b0a30e43acc76edd"><enum>(2)</enum><text>submit to the
Committees a report setting forth the details of the strategy.</text>
</paragraph></subsection><subsection id="ID4b0f2541756c4cb8a85bca26b4e7a77e"><enum>(d)</enum><header>Compliance
program</header><text>The Commissioner of Customs and the Director of
Immigration and Customs Enforcement shall jointly—</text>
<paragraph id="ID01751b4b8fb64f1ab18e9cc3d85d6ac4"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="IDdcf97ea7ce094bde971a8460f516e74d"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="ID6eae2638114e4d08841038d1882ffe0a"><enum>(e)</enum><header>Confidentiality</header><text>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—</text>
<paragraph id="IDd7c472c2dc6842f691f56f4f2b222730"><enum>(1)</enum><text>officers and
employees of the United States designated by the Commissioner of Customs and
the Director of Immigration and Customs Enforcement;</text>
</paragraph><paragraph id="ID35bb3a92bb794bf5ba52c88f12b44f41"><enum>(2)</enum><text>the chairman and
ranking member of each of the Committees; and</text>
</paragraph><paragraph id="IDa90df565dab24eccbf60e896e3401581"><enum>(3)</enum><text>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.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="id820B472143414F14B20A41E3542CCF24"><enum>113.</enum><header>Conforming
amendment</header><text display-inline="no-display-inline">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.</text>
</section></subtitle><subtitle id="idC72BD77CFCB946638B35334EE927A449"><enum>B</enum><header>Investigative
functions</header>
<section id="ID8082e06380dc4953951fa8ee85f31c30"><enum>121.</enum><header>Establishment
of Bureau</header>
<subsection id="id7E239E6C969040E29233A321646DF3B0"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 442 of the
Homeland Security Act of 2002 (6 U.S.C. 252(a)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id80CE6DDFEA9741BFB46B50CD0D57CABF" style="OLC">
<section id="ID67de3f9fbf7b4ce79ea53cfd14024eb2"><enum>442.</enum><header>Establishment
of Bureau; Director</header>
<subsection id="ID46ffd8c102564b2da86ba44aab73b77e"><enum>(a)</enum><header>Establishment
of bureau</header><text>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—</text>
<paragraph id="IDf1881487c58743d6bf6e804677ed2d48"><enum>(1)</enum><text>head the Bureau
of Immigration and Customs Enforcement;</text>
</paragraph><paragraph id="ID73d8af41a5a14069ad5b1537ccbd0ce6"><enum>(2)</enum><text>carry out the
duties and powers prescribed by the Secretary of Homeland Security and by
law;</text>
</paragraph><paragraph id="ID42277e1069e8461bb68c83fb3027b54d"><enum>(3)</enum><text>report directly
to the Deputy Secretary of Homeland Security;</text>
</paragraph><paragraph id="ID0e57970536bf4dc5803873a3ce65ab6f"><enum>(4)</enum><text>have a minimum of
5 years professional experience in law enforcement, and a minimum of 5 years of
management experience; and</text>
</paragraph><paragraph id="IDd37e7bdb601a4af483fb681bf4b72609"><enum>(5)</enum><text>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.</text>
</paragraph></subsection><subsection id="ID742fadc67f7f429d87c04fae6c98d6c0"><enum>(b)</enum><header>Deputy director
and other officers</header><text>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.</text>
</subsection><subsection id="ID87f9829bd44140278292176479af0146"><enum>(c)</enum><header>Absence or
disability of Director</header><text>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.</text>
</subsection><subsection id="IDcafdebf7eaa246acbae9518d2c0ce04b"><enum>(d)</enum><header>Duties of
personnel</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="ID65146bc9f74f40a7a52312db30666559"><enum>(e)</enum><header>Authorization
of appropriations</header>
<paragraph id="id517B52FE3DC94D5188C3BC41B9E7D8AC"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="ID05d8015833d14a5782c1bb6aa52d63ad"><enum>(2)</enum><header>Enforcement of
trade and customs laws</header><text>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—</text>
<subparagraph id="ID2b020212546144bc95aaf5fa70eacb56"><enum>(A)</enum><text>$76,850,000 for
fiscal year 2007;</text>
</subparagraph><subparagraph id="ID311bec8fdc89402a944d3816cf5d4b9b"><enum>(B)</enum><text>$83,500,000 for
fiscal year 2008; and</text>
</subparagraph><subparagraph id="ID5b9f7cbc5ce94eb29b2656c55fe4154e"><enum>(C)</enum><text>$90,750,000 for
fiscal year 2009.</text>
</subparagraph></paragraph><paragraph id="IDe46c77bd3c224009b1fd7aa4ecbf0fc1"><enum>(3)</enum><header>Pay
comparability authorization</header><text>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).</text>
</paragraph></subsection><subsection id="IDa4a1723b24cc4977ad49729218afe1b4"><enum>(f)</enum><header>Program
<enum-in-header>T</enum-in-header>o collect information relating to foreign
students</header><text>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.</text>
</subsection><subsection id="ID0a76a3f96db340ff88c07fd05fa8e9bc"><enum>(g)</enum><header>Chief of Policy
and Strategy</header>
<paragraph id="IDcaad2813c4b4430694b1ca1a93f4a3b6"><enum>(1)</enum><header>In
general</header><text>There shall be a position of Chief of Policy and Strategy
for the Bureau of Immigration and Customs Enforcement.</text>
</paragraph><paragraph id="ID2f71a697af9740f6a1c03c8861ec7bca"><enum>(2)</enum><header>Functions</header><text>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—</text>
<subparagraph id="ID505ade58fd594570b3d023a4588753f7"><enum>(A)</enum><text>making policy
recommendations and performing policy research and analysis on immigration
enforcement issues; and</text>
</subparagraph><subparagraph id="IDfd69d73ada8e4d4ab376f7e2e80172e7"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="ID9a1d11838ec54a45b20e8d9e170d6490"><enum>(h)</enum><header>Legal
advisor</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID2984843d02254f79a4eb6a59ea1055b6"><enum>(b)</enum><header>Compensation</header>
<paragraph id="id97B50554C6574E51A24488D6046509BB"><enum>(1)</enum><header>In
general</header><text>Section 5314 of title 5, United States Code, is amended
by adding at the end the following:</text>
</paragraph><paragraph id="id5FADC7C475FC4CD1AB47A2F751263349"><enum></enum><text><quote>Director
of Immigration and Customs Enforcement, Department of Homeland
Security.</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID42780fea776d438980770e77a5f8a167"><enum>(2)</enum><header>Continuation in
office</header><text>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—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id56926C72F51C4427ABD6EB72153CFBD7"><enum>(A)</enum><text>the date on which
such individual is no longer eligible to serve as Assistant Secretary,
Immigration and Customs Enforcement; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id629190E6136A4EDCBE9DAAE84B331DBC"><enum>(B)</enum><text>the date on which
a person nominated to be the Director of Immigration and Customs Enforcement by
the President is confirmed by the Senate.</text>
</subparagraph></paragraph></subsection><subsection id="ID061507152cd84ee0bb0d52c780986efe"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="idC2047FD9A7DB4D1893306AD1F672C79E"><enum>(1)</enum><header>Subtitle
D</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id6F169A49B03A4FCC97C485875C92403F" style="OLC">
<subtitle id="idE6802C9A5D5641C68B7021EF0DAEEAC9"><enum>D</enum><header>Enforcement
functions</header>
</subtitle><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id215335D14DF949CB9D37E4FF818B61C9"><enum>(2)</enum><header>Table of
contents</header><text>The table of contents for the Homeland Security Act of
2002 is amended—</text>
<subparagraph id="idF44927437ACB405CABB869DDDA5DC164"><enum>(A)</enum><text>by striking the
item relating to section 442 and inserting the following:</text>
<quoted-block id="id4cb1ee08-6b0f-45f5-9c4a-7dac6d54eb25" style="OLC">
<toc>
<toc-entry idref="ID67de3f9fbf7b4ce79ea53cfd14024eb2" level="section">Sec. 442. Establishment of Bureau;
Director.</toc-entry>
</toc>
<after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idBA2C911E06034786AEBA7DEA160F1BCA"><enum>(B)</enum><text>by striking the
item relating to subtitle D of title IV and inserting the following:</text>
<quoted-block id="id8812f833-f777-4589-9b64-c9689de73c0f" style="OLC">
<toc>
<toc-entry level="subtitle">Subtitle D—Enforcement
functions</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id2E97FE1BEED146F18C866FDA878F96A2"><enum>(3)</enum><header>Director of the
Bureau of Citizenship and Immigration Services</header><text>Section
451(a)(2)(C) of the Homeland Security Act of 2002 (6 U.S.C. 271(a)(2)(C)) is
amended by striking <quote>Assistant Secretary of the Bureau of Border
Security</quote> and inserting <quote>Director of Immigration and Customs
Enforcement</quote>.</text>
</paragraph></subsection></section></subtitle><enum>II</enum><header>Customs and
trade facilitation programs</header>
<section id="idD83137D85FD74BF99FCAD03A44F3AACC"><enum>201.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="id3DB9F60EFC564DF1823DACD3237C96B5"><enum>(1)</enum><header>ACE</header><text display-inline="yes-display-inline">The term <term>ACE</term> 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.</text>
</paragraph><paragraph id="id55BD5B4505274CB6AB87A8F952527D2D"><enum>(2)</enum><header>Bureau</header><text>The
term <term>Bureau</term> means the Bureau of Customs and Border
Protection.</text>
</paragraph><paragraph id="id11D8796565B147C5AFEE343640F4E50D"><enum>(3)</enum><header>CIPP</header><text>The
term <term>CIPP</term> 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).</text>
</paragraph><paragraph id="idF2FDBB9CD1D0450789185DCEEF7EFDE5"><enum>(4)</enum><header>COAC</header><text>The
term <term>COAC</term> 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).</text>
</paragraph><paragraph id="id7629B917590849CA9877B652CB9C01AF"><enum>(5)</enum><header>Commissioner</header><text>The
term <term>Commissioner</term> means the Commissioner of Customs.</text>
</paragraph><paragraph commented="no" id="idA33187CDFBED43BB86B6F1B2A76DFB58"><enum>(6)</enum><header>Importer
self-assessment program</header><text>The term <term>importer self-assessment
program</term> 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—</text>
<subparagraph commented="no" id="idA861E1FBD92F4924A29E6096A777F12D"><enum>(A)</enum><text>monitoring their
own compliance and business practices with respect to establishing,
documenting, and implementing adequate internal controls;</text>
</subparagraph><subparagraph commented="no" id="id21B398CBC096461FB615C0159A748C59"><enum>(B)</enum><text>performing
periodic testing of transactions based on risk;</text>
</subparagraph><subparagraph commented="no" id="id957E6EEE3CB7484CBCF26BD13D0DD2EE"><enum>(C)</enum><text>sharing test
results with the Bureau;</text>
</subparagraph><subparagraph commented="no" id="idACD198B9150444B1872852C6FC825A8D"><enum>(D)</enum><text>making
appropriate adjustments to internal controls; and</text>
</subparagraph><subparagraph commented="no" id="id618ADE6D1044439F83140239DBAE750F"><enum>(E)</enum><text>maintaining an
audit trail of financial records and Customs declarations, or, an alternate
system that ensures accurate values are reported to the Bureau.</text>
</subparagraph></paragraph><paragraph commented="no" id="idA4B4C640D74444739DEF4B0C4C26F54F"><enum>(7)</enum><header>International
supply chain</header><text>The term <term>international supply chain</term>
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.</text>
</paragraph><paragraph commented="no" id="idF57D63AEEB234996909812B979C12823"><enum>(8)</enum><header>Revalidation;
reverification</header><text>The terms <term>revalidation</term> and
<term>reverification</term> 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.</text>
</paragraph><paragraph id="id7F2E89D72DBB4266A3CB9A1187704A0E"><enum>(9)</enum><header>Tier 1
participant</header><text>The term <term>tier 1 participant</term> 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.</text>
</paragraph><paragraph id="idD972CE3498294BC59153117EBF30073B"><enum>(10)</enum><header>Tier 2
participant</header><text>The term <term>tier 2 participant</term> 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.</text>
</paragraph><paragraph id="id1340C794A1784B5A80FBB405752C086B"><enum>(11)</enum><header>Tier 3
participant</header><text>The term <term>tier 3 participant</term> 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.</text>
</paragraph><paragraph id="idEEC50FA5B894401590FC117ADE68478D"><enum>(12)</enum><header>Validation and
verification</header><text>The terms <term>validation</term> and
<term>verification</term> 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.</text>
</paragraph><paragraph id="idD16BC42925E14409BD49363184A25552"><enum>(13)</enum><header>WCO</header><text>The
term <term>WCO</term> means the World Customs Organization.</text>
</paragraph><paragraph id="id40EC9DFF03404BEDBF75020F3A2A225B"><enum>(14)</enum><header>WTO</header><text>The
term <term>WTO</term> means the World Trade Organization established pursuant
to the WTO Agreement.</text>
</paragraph><paragraph id="idC3EA3566CC844FBD88B3353AEE54673A"><enum>(15)</enum><header>WTO
Agreement</header><text>The term <term>WTO Agreement</term> means the Agreement
Establishing the World Trade Organization entered into on April 15,
1994.</text>
</paragraph></section><subtitle id="idBA37964111DD42329B3E420685F209B4"><enum>A</enum><header>Bilateral and
multilateral negotiations</header>
<section id="idD4AFC0AC622C43BCABB637B9C4B24442"><enum>211.</enum><header>Bilateral
customs partnerships</header>
<subsection id="id2AFCB26A602C4F61B800F956040541E4"><enum>(a)</enum><header>In
general</header><text>Section 629(a) of the Tariff Act of 1930 (19 U.S.C.
1629(a)) is amended—</text>
<paragraph id="idBB6DF4A03F12481D8DBDDC8ABFAE0F49"><enum>(1)</enum><text>by striking
<quote>Secretary</quote> and inserting <quote>Secretary of Homeland
Security</quote>; and</text>
</paragraph><paragraph id="id93C457E7267C427A8DA9CA8450258D2D"><enum>(2)</enum><text>by striking
<quote>examining persons and merchandise</quote> and inserting <quote>screening
and examining persons, merchandise, and cargo</quote>.</text>
</paragraph></subsection><subsection commented="no" id="id11941EF94E3F439E9A2E871270B5AA52"><enum>(b)</enum><header>Definitions</header><text>Section
629 of the Tariff Act of 1930 (19 U.S.C. 1629) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="idF8CEF92522E7427A801B0491C0373C32" style="OLC">
<subsection commented="no" id="id41B6E2FA8A794EC0B8D92076941690C9"><enum>(h)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph commented="no" id="idF52C0F01235A481990F3D80B17B92782"><enum>(1)</enum><header>Appropriate
Federal officials</header><text>The term <term>appropriate Federal
officials</term> 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.</text>
</paragraph><paragraph id="IDe2cae9b0f24f4a74ae611b678c05eb4e"><enum>(2)</enum><header>Appropriate
congressional committees</header><text>The term <term>appropriate congressional
committees</term>’ 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.</text>
</paragraph><paragraph id="idFA88038DCFC244768B5C05ACB4F1080A"><enum>(3)</enum><header>COAC</header><text>The
term <term>COAC</term> means the Advisory Committee established by section 9503
of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note).</text>
</paragraph><paragraph commented="no" id="id9FD85177060A49F485C60BD608C3CAB4"><enum>(4)</enum><header>Designated
port</header><text>The term <term>designated port</term> means a port in a
foreign country with which the United States has a bilateral customs
partnership agreement described in subsection (i).</text>
</paragraph><paragraph commented="no" id="id28D25CD7C8AF418CB66604114F654817"><enum>(5)</enum><header>Examination</header><text>The
term <term>examination</term> means either a physical inspection or the imaging
and radiation screening of a conveyance using nonintrusive inspection (NII)
technology, for the presence of contraband.</text>
</paragraph><paragraph commented="no" id="idCA450A84BB144D8094E94F28E54902A8"><enum>(6)</enum><header>Inspection</header><text>The
term <term>inspection</term> 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.</text>
</paragraph><paragraph commented="no" id="idDC8901D0CA2F4B23835C8C0409410096"><enum>(7)</enum><header>Scanning</header><text>The
term <term>scanning</term> 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.</text>
</paragraph><paragraph commented="no" id="idC03170F796BA4ED99E1277D471FF3A9E"><enum>(8)</enum><header>Screening</header><text>The
term <term>screening</term> 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.</text>
</paragraph><paragraph id="id3718BC5607894973AC198EE4D8A4546A"><enum>(9)</enum><header>WCO</header><text>The
term <term>WCO</term> means the World Customs Organization.</text>
</paragraph><paragraph id="id63CF75EABDDC438694D8237F46BF7A92"><enum>(10)</enum><header>WTO</header><text>The
term <term>WTO</term> means the World Trade Organization established pursuant
to the WTO Agreement.</text>
</paragraph><paragraph id="idFEBDD46417FC4290A52E6BB4A6EE4BA3"><enum>(11)</enum><header>WTO
Agreement</header><text>The term <term>WTO Agreement</term> means the Agreement
Establishing the World Trade Organization entered into on April 15,
1994.</text>
</paragraph></subsection><subsection id="ID2d8e83f57c564023a53f743ff63d061f"><enum>(i)</enum><header>Bilateral
customs partnership agreements</header><text>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—</text>
<paragraph id="IDf7227862763847efa4ed9aa8def31e49"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="IDe44e8aa12aba48ec856abd7183cb6820"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="ID8ee9a4b132f543aabf87739363d5a082"><enum>(3)</enum><text>continued
bilateral review of, and updating as appropriate, the technologies, processes,
and techniques used to screen, scan, and inspect cargo at designated
ports.</text>
</paragraph></subsection><subsection id="ID1592c0bf42a84d27b9025b6075c5de5a"><enum>(j)</enum><header>Assessment of
designated ports</header><text>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—</text>
<paragraph id="ID0c85a7ca08ad498b85c7656c06054765"><enum>(1)</enum><text>the level of risk
for—</text>
<subparagraph id="idEDDBD2C4004C40868A18199F14A291B8"><enum>(A)</enum><text>the potential
compromise of containers by terrorists or terrorist weapons;</text>
</subparagraph><subparagraph id="id6CDA0EFC0BEC445C9121E43B225A8DCE"><enum>(B)</enum><text>smuggling of
narcotics; and</text>
</subparagraph><subparagraph id="id1211D7EABFA948E5A1837B460B3CC3A0"><enum>(C)</enum><text>violations of
United States trade laws, including intellectual property rights and textile
transshipment;</text>
</subparagraph></paragraph><paragraph id="ID4ed381d4f49a4312974bbbf7b1c7f7e0"><enum>(2)</enum><text>the volume of
regular container traffic that goes through the port that is bound for the
United States;</text>
</paragraph><paragraph id="IDb56f16c5f4834e7b925b727d17d866d1"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="IDb8a07573823444228eab203251f069f6"><enum>(4)</enum><text>coordination with
and an assessment by the Coast Guard; and</text>
</paragraph><paragraph id="ID270a983814b848a3b2d15dab97b5397d"><enum>(5)</enum><text>any limitation
associated with the infrastructure of the port.</text>
</paragraph></subsection><subsection id="IDc8adcbfecfdf4c00b6b337f9afd2f705"><enum>(k)</enum><header>Foreign
assistance</header><text>The Secretary of Homeland Security, in consultation
with the appropriate Federal officials, is authorized to provide appropriate
assistance to designated ports, including—</text>
<paragraph id="ID156130ca676e4115a886dfd7f527df95"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="ID84856ae04e0b4763ab8c6fd1fbb905bb"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="ID03d6a61c81b7451bb33bb300b652e5fa"><enum>(l)</enum><header>Staffing</header><text>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.</text>
</subsection><subsection id="ID3f49cff67dd34abd888ae5c042ed1b4a"><enum>(m)</enum><header>Annual
discussions</header><text>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.</text>
</subsection><subsection id="ID10a195e300f34494a4398296bf1f54d8"><enum>(n)</enum><header>Report</header><text>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—</text>
<paragraph id="IDe95c890c51664ea396f7a6d8a8a1ae36"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="IDb6fc9c2b7919409ca586bc1db51af32c"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="IDe9b296f45b084e218508777003d8a23c"><enum>(3)</enum><text>a description of
the technical assistance delivered or needed at each designated port;</text>
</paragraph><paragraph id="ID01b77948273a4bbe92219396f48cc543"><enum>(4)</enum><text>a description of
the human capital management plan at each designated port; and</text>
</paragraph><paragraph id="IDf3e74974622b4673a3092eb3ac74980d"><enum>(5)</enum><text>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.</text>
</paragraph></subsection><subsection id="ID4c2054b3b1f34645ab38bb5d52a3f9b5"><enum>(o)</enum><header>Lesser risk
ports</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idE54075AA602845BBBB1D9E1C1C5B9F6A"><enum>212.</enum><header>Multilateral
customs negotiations</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="idCFA5948D16C848C5845AD897C27827DE" style="OLC">
<subsection id="ID03fcafffd0c04a48ad65e3cf54ae8b05"><enum>(p)</enum><header>Harmonization
of customs procedures and commitments</header>
<paragraph id="id1922F01C4B5C4D688A436605106DEC04"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="id465BB33C6D1041AC940D38C72C593FE2"><enum>(2)</enum><header>United States
Trade Representative</header>
<subparagraph id="id20940BA677124C64AAE88FF9FAEF068B"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="id50EF5A5368D6459A9126E17F542EF493"><enum>(i)</enum><text>to the extent
practicable, harmonization of import and export data collected by WTO members
for customs purposes;</text>
</clause><clause id="id1891F24817FA4114BD90D0EEADFACF79"><enum>(ii)</enum><text>transparency,
efficiency, and procedural fairness of WTO members;</text>
</clause><clause id="idFFFD04CC79854904BAD19CE71C01A94C"><enum>(iii)</enum><text>to the extent
practicable, transparent standards for the release of cargo by WTO
members;</text>
</clause><clause id="id12AB5BACCC7E4EA589946608394C3A2E"><enum>(iv)</enum><text>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</text>
</clause><clause id="idC1400038934E4CD684D4E924DB3092EF"><enum>(v)</enum><text>the protection of
confidential commercial data.</text>
</clause></subparagraph><subparagraph id="id79F8B637D26346D78B3506BF96860B20"><enum>(B)</enum><header>Articles
described</header><text>The articles of the GATT 1994 described in this
subparagraph are the following:</text>
<clause id="id17A574AF78CC47EAB486586CA82067FF"><enum>(i)</enum><text>Article V
(relating to transit).</text>
</clause><clause id="id636FBF7DE91C40E7A8937CE067B0EAC3"><enum>(ii)</enum><text>Article VIII
(relating to fees and formalities associated with importation and
exportation).</text>
</clause><clause id="id40046674C802404795B15C759AED925B"><enum>(iii)</enum><text>Article X
(relating to publication and administration of trade regulations).</text>
</clause></subparagraph><subparagraph id="id5415F2EEBC614BA3ADA137ABF87A53ED"><enum>(C)</enum><header>Gatt
1994</header><text>The term <term>GATT 1994</term> means the General Agreement
on Tariff and Trade annexed to the WTO Agreement.</text>
</subparagraph></paragraph><paragraph id="IDf91c36f329904980942b6acbfe75ba5a"><enum>(3)</enum><header>Customs</header><text>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—</text>
<subparagraph id="id786A41DE17674D669458ACFBA6719260"><enum>(A)</enum><text>harmonize, to the
extent practicable, import data collected by WCO members for customs
purposes;</text>
</subparagraph><subparagraph id="id261B0C0D9E27490BAA20BF444895A946"><enum>(B)</enum><text>automate and
harmonize, to the extent practicable, the collection and storage of commercial
data by WCO members;</text>
</subparagraph><subparagraph id="id0BAC25D8FB3040A790594126BD6DB37A"><enum>(C)</enum><text>develop, to the
extent practicable, transparent standards for the release of cargo by WCO
members;</text>
</subparagraph><subparagraph id="id53E474F9162C424CA629BEF5A89D1090"><enum>(D)</enum><text>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</text>
</subparagraph><subparagraph id="id76CF61D25B484E02AB66CB8AF76FB589"><enum>(E)</enum><text>ensure the
protection of confidential commercial
data.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="idA3DACAEF7A374B9285B16F295FD4BC04"><enum>B</enum><header>Customs data
collection</header>
<section id="id23FE62D6914C484E9DBD600561453F3E"><enum>221.</enum><header>International
trade data system</header>
<subsection id="idCF82B42AA4C5402BBE91D2F1712636A9"><enum>(a)</enum><header>In
general</header><text>Section 411 of the Tariff Act of 1930 (19 U.S.C. 1411) is
amended by adding at the end the following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="id58ED61ED5004427BBB83577830B16BCA" style="OLC">
<subsection id="id14F028C2580746B88BE6CFF7DBC8FE80"><enum>(d)</enum><header>International
trade data system</header>
<paragraph id="id8C8C50017E3E40EC87D0D03FC2976F6C"><enum>(1)</enum><header>Establishment</header>
<subparagraph id="id6AFFA77256F54ACEB5CAFACB8005C762"><enum>(A)</enum><header>In
general</header><text>The Secretary of the Treasury (in this section, referred
to as the <quote>Secretary</quote>) shall oversee the establishment of an
electronic trade data interchange system to be known as the
<quote>International Trade Data System</quote> (ITDS). The ITDS shall be
implemented not later than the date that the Automated Commercial Environment
(commonly referred to as <quote>ACE</quote>) (as defined in section 201 of the
Customs and Trade Facilitation Reauthorization Act of 2006) is
implemented.</text>
</subparagraph><subparagraph id="IDd5223070aa11413ebccbfe89bde57ac2"><enum>(B)</enum><header>Purpose</header><text>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.</text>
</subparagraph><subparagraph id="ID3abaf6100f5b41609b2b55aeb1efbd09"><enum>(C)</enum><header>Participation</header>
<clause id="idFA44A2303D874C8C8A590E9F1E484C4A"><enum>(i)</enum><header>In
general</header><text>All Federal agencies that require documentation for
clearing or licensing the importation and exportation of cargo shall
participate in the ITDS.</text>
</clause><clause id="id02939A3248F54963BF488D625DF72CB2"><enum>(ii)</enum><header>Waiver</header><text>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.</text>
</clause></subparagraph><subparagraph id="ID35afb3aa19014eab95dbbad71d8b3a6f"><enum>(D)</enum><header>Consultation</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID7fbd9abc0ae14ffca633dec922ab2697"><enum>(2)</enum><header>Data
elements</header>
<subparagraph id="id5DF4DAA130564771A05CEDF48AA84A22"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="idB15775029C8246F887F396F89DAEE781"><enum>(B)</enum><header>Harmonization</header><text>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.</text>
</subparagraph><subparagraph commented="no" id="IDf651dcf4d31c489c8645755e241862b9"><enum>(C)</enum><header>Coordination</header><text>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.</text>
</subparagraph></paragraph><paragraph commented="no" id="ID31111bd1ed5b4bd6a6ab936047a32f39"><enum>(3)</enum><header>Steering
Committee</header><text>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.</text>
</paragraph><paragraph id="ID123443a56f9f42f79c529f3781a47883"><enum>(4)</enum><header>Report</header><text>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—</text>
<subparagraph id="ID11fa0aa8d04d48fd8c142847b8679473"><enum>(A)</enum><text>the status of the
ITDS implementation;</text>
</subparagraph><subparagraph id="ID66fe83dbb39141b09570a9e1a3f8751d"><enum>(B)</enum><text>the extent of
participation in the ITDS by Federal agencies;</text>
</subparagraph><subparagraph id="IDc68e904b671a432fb59046306798c712"><enum>(C)</enum><text>the remaining
barriers to any agency’s participation;</text>
</subparagraph><subparagraph id="ID5d5f6aa3b7314553a2832b5e00888da5"><enum>(D)</enum><text>the extent to
which the ITDS is consistent with applicable standards established by the World
Customs Organization and the World Trade Organization;</text>
</subparagraph><subparagraph id="ID5622773b9c844920acfc9c915a7e6732"><enum>(E)</enum><text>recommendations
for technological and other improvements to the ITDS; and</text>
</subparagraph><subparagraph id="id58C8EECA43B54C30AD9A38A8B4236CE1"><enum>(F)</enum><text>the status of the
Bureau's development, implementation, and management of the Automated
Commercial Environment.</text>
</subparagraph></paragraph></subsection><subsection id="id2B37ACB5EE564274A2948FF31278A199"><enum>(e)</enum><header>Treasury
oversight</header><text>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—</text>
<paragraph id="id7C0B5812E633444882FB72553D1E018F"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="id29677BDED3DB4DD1B87216948182ADB3"><enum>(2)</enum><text>to carry out
oversight of the International Trade Data System established under this
section.</text>
</paragraph></subsection><subsection id="id6B4DE13E7AFE4864A29123669D9034B3"><enum>(f)</enum><header>Authorization
of appropriations</header><text>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).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="id48387F75B0154E39AC2F50981F294C35"><enum>222.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">Section
13031(f)(5) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(f)(5)) is amended—</text>
<paragraph id="id22342B911A0848C59A941EDFABE97041"><enum>(1)</enum><text>by striking
<quote>2003</quote> each place it appears and inserting
<quote>2007</quote>;</text>
</paragraph><paragraph id="idC2C75D63F0234AD18C5C21DC9BEEF262"><enum>(2)</enum><text>by striking
<quote>2004</quote> each place it appears and inserting
<quote>2008</quote>;</text>
</paragraph><paragraph id="idE924D4DE0FFF467AA10555847FFE4BC0"><enum>(3)</enum><text>by striking
<quote>2005</quote> each place it appears and inserting <quote>2009</quote>;
and</text>
</paragraph><paragraph id="idC451522A042449FA82234C04D930DE31"><enum>(4)</enum><text>by striking
<quote>2006</quote> each place it appears and inserting
<quote>2010</quote>.</text>
</paragraph></section></subtitle><subtitle id="id29B0CD01C9E849879694DBA7BB09FF6B"><enum>C</enum><header>Trade
facilitation programs</header>
<section id="id5657954116C741428AB27F290D4027C6"><enum>231.</enum><header>Establishment
of a voluntary customs industry partnership program</header>
<subsection id="id8A5D3D55CCE740149524A8520DADC366"><enum>(a)</enum><header>In
general</header><text>Section 499 of the Tariff Act of 1930 (19 U.S.C. 1499) is
amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="idFFF436CCBB554623A8C171A6E624151C" style="OLC">
<subsection id="idF99A931DCA4546F29FC94818DBBE55CB"><enum>(d)</enum><header>Customs
Industry Partnership Program</header>
<paragraph id="IDbb0083e8065a4e85a62d61ca1f993af4"><enum>(1)</enum><header>Establishment</header><text>The
Commissioner of Customs (in this section referred to as the
<quote>Commissioner</quote>) 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 <quote>CIPP</quote>.</text>
</paragraph><paragraph id="IDd9315db1c42f4b61a17f84ec659ab38f"><enum>(2)</enum><header>Eligible
participants</header><text>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.</text>
</paragraph><paragraph id="ID21983257199d4c6685301475556f7d69"><enum>(3)</enum><header>Minimum
requirements</header><text>The Commissioner shall establish minimum
requirements for participation in the CIPP. The requirements for participation
in the Program include the following:</text>
<subparagraph id="IDe6fec10cc6e643208a2ab6350008010b"><enum>(A)</enum><text>The applicant's
history of moving cargo through the international supply chain.</text>
</subparagraph><subparagraph id="ID4ff3791a492b4cca8ca977f941e4216b"><enum>(B)</enum><text>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.</text>
</subparagraph><subparagraph id="IDc4bdda175380459a83424c107223fce0"><enum>(C)</enum><text>The applicant's
compliance with all minimum physical security requirements established by the
Commissioner.</text>
</subparagraph></paragraph><paragraph id="idADBACFDC8DB64F73B293E1F0DF01BA1E"><enum>(4)</enum><header>3 tiers of
Customs industry partnership program</header><text>The CIPP shall include 3
levels of voluntary participation.</text>
<subparagraph id="ID3a344ed3eed54a638eab3b26c7548034"><enum>(A)</enum><header>Tier 1
participants</header>
<clause id="ID91ccc464234a4bf2bf151b6352d8007c"><enum>(i)</enum><header>Requirements</header><text>A
<term>tier 1 participant</term> 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).</text>
</clause><clause id="IDc90f44e87a5a4f65867f0382cdd302db"><enum>(ii)</enum><header>Benefits</header><text>The
Commissioner shall provide limited benefits to tier 1 participants for the
purpose of facilitating the flow of cargo in the international supply
chain.</text>
</clause><clause id="IDe2e664f8dc174bbfa51abd02a6e57f64"><enum>(iii)</enum><header>Certification</header><text>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.</text>
</clause></subparagraph><subparagraph id="IDa8bbcf614505485bae9711f1a8550009"><enum>(B)</enum><header>Tier 2
participants</header>
<clause id="ID297799536899418e963b3103bed3543a"><enum>(i)</enum><header>Requirements</header><text>A
<term>tier 2 participant</term> 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).</text>
</clause><clause id="IDa284757979b44bc6af8733a9792a2a21"><enum>(ii)</enum><header>Benefits</header><text>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.</text>
</clause><clause id="ID47602bc5d5a24a7499bc8bb76fdfcfbd"><enum>(iii)</enum><header>Validation</header><text>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).</text>
</clause></subparagraph><subparagraph id="ID64387e0358aa40299744e7aad4b2f916"><enum>(C)</enum><header>Tier 3
participants</header>
<clause id="idE04B0DCDB45240969C37BCA040DBF9D5"><enum>(i)</enum><header>Requirements</header><text>A
<term>tier 3 participant</term> means a tier 2 participant who, upon
application for <term>tier 3</term> benefits and completion of a verification
under paragraph (5), is found by the Bureau of Customs and Border Protection to
meet the following requirements:</text>
<subclause id="IDd24e046b4c1242a6ab31dc7dd73e357b"><enum>(I)</enum><text>A demonstrated
history of trade compliance, including the consistent payment of duties in an
accurate and timely manner.</text>
</subclause><subclause id="ID418f380a97184d82b53baabd2d04454e"><enum>(II)</enum><text>The consistent
provision of additional advance data elements as required by the Commissioner
of Customs.</text>
</subclause><subclause id="ID05fe4761eba14a289ba7e58b109dbd78"><enum>(III)</enum><text>The consistent
use of supply chain security best practices identified by the Bureau of Customs
and Border Protection.</text>
</subclause><subclause id="ID677e7e3a72574dc1a1ff75523f2199b6"><enum>(IV)</enum><text>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).</text>
</subclause></clause><clause id="ID742bb5d557f1453bb9b4a76ceec25973"><enum>(ii)</enum><header>Benefits</header><text>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—</text>
<subclause id="id9E8B7CEDDC6A450697C52A50FB565182"><enum>(I)</enum><text>providing
feedback to tier 3 participants on cargo examination results to the extent that
such feedback does not compromise security;</text>
</subclause><subclause id="IDcb1f128ed4d748fcbf66ee8d3a29bc29"><enum>(II)</enum><text>notifying tier 3
participants of specific alerts and post-incident trade resumption procedures
as appropriate;</text>
</subclause><subclause id="IDa6758d10e2ed49a3a9fcc0df8223487b"><enum>(III)</enum><text>providing
incident management training for tier 3 participants, including training with
respect to protection, prevention, response, and recovery;</text>
</subclause><subclause id="ID61c1170f75a24925bfcab63b733da0e7"><enum>(IV)</enum><text>permitting tier
3 participants to be represented in joint incident management exercises with
trade agencies and other agencies; and</text>
</subclause><subclause id="IDe99a5316fa664f83aa8675b2c061d61e"><enum>(V)</enum><text>permitting cargo
clearance priority for participants in the post-incident resumption of trade to
the extent the Commissioner deems practicable.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="IDccae53495d7f444eade6c45f76ed0a14"><enum>(5)</enum><header>Verification of
participant status</header><text>The Commissioner of Customs shall develop
procedures to verify the information provided by persons who apply for
participation in the CIPP, including—</text>
<subparagraph id="ID69c4ffc645364ccdb3b590ceaa0860bd"><enum>(A)</enum><text>in the case of a
tier 1 participant, an extensive documentation review;</text>
</subparagraph><subparagraph id="IDed2602eefec74b2f96f9942c0b648ff8"><enum>(B)</enum><text>in the case of a
tier 2 participant, an extensive documentation review and site validation;
and</text>
</subparagraph><subparagraph id="IDf72e646333db4a7f9ec16a008f02cf1d"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="IDb4e22dd497394e94992f2c8facf2733a"><enum>(6)</enum><header>Consequences
for lack of compliance</header>
<subparagraph id="idFCC4805F31BE48639D5219C158D98B2B"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="id3C1D4ADFA5FE44E09221BB9EC71D5D9B"><enum>(B)</enum><header>False or
misleading information</header><text>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.</text>
</subparagraph></paragraph><paragraph id="IDf81aa142d16b42d8afc96786baffc006"><enum>(7)</enum><header>CIPP
elements</header><text>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:</text>
<subparagraph id="ID38fd6d134c674a79b25f614a8a4db105"><enum>(A)</enum><header>Strategic
plan</header><text>A 5-year Strategic Plan to identify outcome-based goals and
performance measures of the Program.</text>
</subparagraph><subparagraph id="ID6890357b34864a9abd2d4d6465d40eb4"><enum>(B)</enum><header>Annual
plan</header><text>An annual plan for each fiscal year designed to match
available resources to the projected workload.</text>
</subparagraph><subparagraph id="IDd2c0b376b7984d5290c98a316e6ff582"><enum>(C)</enum><header>Standardized
work program</header><text>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.</text>
</subparagraph><subparagraph id="IDfa33232454944f67b0d65102cee7b9d4"><enum>(D)</enum><header>Documentation
of reviews</header><text>The Commissioner shall maintain a record management
system to document determinations on the review of each participant, including
certifications, validations, verifications, revalidations, and
reverifications.</text>
</subparagraph><subparagraph id="id76E780D392894519A5FD1589FCB89810"><enum>(E)</enum><header>Revalidation
and reverification of participants</header><text>The Commissioner shall develop
and implement—</text>
<clause id="idBAE64D94BA294A968AA3BCBE5AAE485F"><enum>(i)</enum><text>a
revalidation process for tier 2 participants;</text>
</clause><clause id="idE92A7CFC42984411A35DAEA21709BF51"><enum>(ii)</enum><text>a means to
include risk-based and random sampling for identifying participants for
periodic revalidation and reverification;</text>
</clause><clause id="id0F2BE489C834485BA8B47E651D63CC27"><enum>(iii)</enum><text>a
reverification process for tier 3 participants;</text>
</clause><clause id="idBCD4F2D390AB4CDDAF54CBAD9905C33A"><enum>(iv)</enum><text>an annual plan
for revalidation and reverification that includes—</text>
<subclause id="id506646218570471DB99D889829675837"><enum>(I)</enum><text>performance
measures;</text>
</subclause><subclause id="idC719C40477274B2C803B6BDF13D4E605"><enum>(II)</enum><text>an assessment of
the personnel needed to perform the revalidation or reverification; and</text>
</subclause><subclause id="id7AF2156820954A40A6AF28990BCCECAE"><enum>(III)</enum><text>the number of
companies that will be revalidated or reverified during the year.</text>
</subclause></clause></subparagraph><subparagraph id="id67BA64B6F4D64606A4ACFBC6E340769F"><enum>(F)</enum><header>Right of
appeal</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID3d2aa8c5480e421596d9e319724ea097"><enum>(8)</enum><header>Resource
management staffing plan</header><text>The Commissioner shall—</text>
<subparagraph id="IDdaadfbc0378e4ac18e87d4c1544a855f"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="ID73451b42550044af9490e9c515e65c8f"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="ID00cf5def42e64765acbf5a55695ac812"><enum>(C)</enum><text>provide
cross-training in post-incident trade resumption for personnel engaged in the
Program.</text>
</subparagraph></paragraph><paragraph id="IDac4cfed7cef24814956ab19ce1c091f9"><enum>(9)</enum><header>Third-party
validation</header><text>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.</text>
</paragraph><paragraph id="IDbf4faba25cf64ed6b9bbe27d95650cc2"><enum>(10)</enum><header>GAO
report</header><text>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.</text>
</paragraph><paragraph id="ID318d5db3fcdb40c7aeb67ee05ccb393c"><enum>(11)</enum><header>Confidential
information safeguards</header><text>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—</text>
<subparagraph id="ID6ff885d9724f4f1498f2330d331200a8"><enum>(A)</enum><text>measures for
protecting data shared with any government agency;</text>
</subparagraph><subparagraph id="IDe4bcf693f9a643ce91a865018cdae010"><enum>(B)</enum><text>measures for
providing a secure system for document storage accessible only to the
appropriate personnel;</text>
</subparagraph><subparagraph id="idD34DACE458424D818D51C6509C2910A0"><enum>(C)</enum><text>measures for
storing all electronic files in a manner that prevents theft, copying, or
deletion; and</text>
</subparagraph><subparagraph id="IDcf78877e2bc844cc8e905a3cf73d4ea9"><enum>(D)</enum><text>measures for
labeling all records to clearly mark what is considered confidential or a trade
secret.</text>
</subparagraph></paragraph><paragraph id="idE7AD14CBF8594B4EB55E3B1002B3522F"><enum>(12)</enum><header>Definitions</header><text>In
this subsection:</text>
<subparagraph id="idF432B3181A68446CBCD3DE2D02827AB9"><enum>(A)</enum><header>Contract
logistics provider</header><text>The term <term>contract logistics
provider</term> 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.</text>
</subparagraph><subparagraph id="id7CCE5C190A5C45AABCABE5BF39628CD6"><enum>(B)</enum><header>COAC</header><text>The
term <term>COAC</term> 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).</text>
</subparagraph><subparagraph id="id778DB2FF2D2A4B4D892FD6D7F151177D"><enum>(C)</enum><header>Importer
self-assessment program</header><text>The term <term>importer self-assessment
program</term> 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—</text>
<clause commented="no" id="id9D9E27C4BBAB4835A7079D6AB55D9FF8"><enum>(i)</enum><text>monitoring their
own compliance and business practices with respect to establishing,
documenting, and implementing adequate internal controls;</text>
</clause><clause commented="no" id="idF3074430D7A14F73A3D7AA8D64D4C2D0"><enum>(ii)</enum><text>performing
periodic testing of transactions based on risk;</text>
</clause><clause commented="no" id="id7785EDBB554A40E5B1E95A5C533B92DE"><enum>(iii)</enum><text>sharing test
results with the Bureau;</text>
</clause><clause commented="no" id="id2B2B8A537A9C49CB9D1443E87C88D1D0"><enum>(iv)</enum><text>making
appropriate adjustments to internal controls; and</text>
</clause><clause commented="no" id="id05186BDCB336400B9FAFB2962103DBAF"><enum>(v)</enum><text>maintaining an
audit trail of financial records and Customs declarations, or, an alternate
system that ensures accurate values are reported to the Bureau.</text>
</clause></subparagraph><subparagraph id="id85E4535D1CD942E2BA141F70C679B48E"><enum>(D)</enum><header>International
supply chain</header><text>The term <term>international supply chain</term>
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.</text>
</subparagraph><subparagraph commented="no" id="id3BA9D5ECBA834F06B54EB9F6FF439181"><enum>(E)</enum><header>Revalidation;
reverification</header><text>The terms <term>revalidation</term> and
<term>reverification</term> 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.</text>
</subparagraph><subparagraph id="id489983C2906E498EAA91F0681CD71D3A"><enum>(F)</enum><header>Validation and
verification</header><text>The terms <term>validation</term> and
<term>verification</term> 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.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID58ecdcf101d648adb927cb96266dfe0f"><enum>(b)</enum><header>Additional
personnel</header><text>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.</text>
</subsection><subsection id="ID9bf0f405a5554f7aa658a72cd3113f23"><enum>(c)</enum><header>Authorization
of appropriations</header><text>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:</text>
<paragraph id="id59A7FF150E9845C0A1A0E98561817A5E"><enum>(1)</enum><text>$8,500,000 in
fiscal year 2007.</text>
</paragraph><paragraph id="id56210C4EFE8C46F3819134111821D334"><enum>(2)</enum><text>$17,600,000 in
fiscal year 2008.</text>
</paragraph><paragraph id="idAB10116851594A05BF1EDF4A04E0BB3E"><enum>(3)</enum><text>$27,300,000 in
fiscal year 2009.</text>
</paragraph><paragraph id="id0A749868DAE74240ADC2828B9467D4EB"><enum>(4)</enum><text>$28,300,000 in
fiscal year 2010.</text>
</paragraph><paragraph id="id50B2F2F360CB4190B58730E47F8C50EA"><enum>(5)</enum><text>$29,200,000 in
fiscal year 2011.</text>
</paragraph></subsection><subsection id="ID8a53def6f86f4a9ca43a6931e170652b"><enum>(d)</enum><header>Report</header>
<paragraph id="id6F3174946888418CB3850E72EC15D255"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="idF6B1DFEFC68B4917A8B1A991E38CCC74"><enum>(2)</enum><header>Appropriate
committees</header><text>The term <term>appropriate committees</term> means the
Committee on Finance of the Senate and the Committee on Ways and Means of the
House of Representatives.</text>
</paragraph></subsection></section><section id="id735282CEF969417CAED1F4C669519192"><enum>232.</enum><header>Trade
resumption plan</header><text display-inline="no-display-inline">Title III of
the Tariff Act of 1930 is amended by inserting after section 318 the following
new section:</text>
<quoted-block display-inline="no-display-inline" id="idEFB4F7E2E7D44A508C35CADF9615D855" style="OLC">
<section id="id042A64AD744F4396B40E35DC8DFC36A5"><enum>318A.</enum><header>Trade
resumption plan</header>
<subsection id="idD9A60B9FB0454C75900BAF6F189779D9"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="id97F37512C96F4639897E3C3C371138EE"><enum>(1)</enum><header>Inspection</header><text display-inline="yes-display-inline">The term <term>inspection</term> 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.</text>
</paragraph><paragraph id="id1714762DDFD947FB81027F03DA0DDFCC"><enum>(2)</enum><header>Targeting</header><text>The
term <term>targeting</term> 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.</text>
</paragraph><paragraph id="id5275D708A831443FBD375DE2FBE41BBD"><enum>(3)</enum><header>Transportation
disruption</header><text>The term <term>transportation disruption</term> 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.</text>
</paragraph></subsection><subsection id="id1D4DD716B7B14B4E96FBE682FB3780AA"><enum>(b)</enum><header>Trade
resumption plan</header><text display-inline="yes-display-inline">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—</text>
<paragraph id="ID27b2086cd9ee46918e12e0a3e9aa83d1"><enum>(1)</enum><text>a program to
redeploy resources and personnel, as necessary, to reestablish the flow of
international trade in the event of a transportation disruption;</text>
</paragraph><paragraph id="IDd647695f8e954e599b4f46151efe19e2"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="ID4166a098c69e472f8af61f1de79ed7fd"><enum>(3)</enum><text>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—</text>
<subparagraph id="ID8f85feb55de448948e40420522037c01"><enum>(A)</enum><text>cargo originating
from a designated port described in section 629(j);</text>
</subparagraph><subparagraph id="IDf51f4e30411f40c99655f3c778bb78fd"><enum>(B)</enum><text>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);</text>
</subparagraph><subparagraph id="ID49c6f71a4ed2453b95f149a4d443f5d8"><enum>(C)</enum><text>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;</text>
</subparagraph><subparagraph id="ID766b28e6b3024ec6b94f1469c80936c5"><enum>(D)</enum><text>cargo transported
in containers with tamper-proof seals;</text>
</subparagraph><subparagraph id="IDe9d6b06865d9441a963420960b35f0c0"><enum>(E)</enum><text>perishable cargo;
and</text>
</subparagraph><subparagraph id="ID6829cc5c7a534b1088e4599bb949e3d4"><enum>(F)</enum><text>any other cargo
the Commissioner considers appropriate;</text>
</subparagraph></paragraph><paragraph id="ID6646b280343149f3945dbd7d86e25bf4"><enum>(4)</enum><text>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</text>
</paragraph><paragraph id="ID96aa893a8aa942d2a5ebb1253e4b8f0c"><enum>(5)</enum><text>a plan to
coordinate trade facilitation efforts among affected ports of entry following a
transportation disruption.</text>
</paragraph></subsection><subsection id="ID6eecb7a1c2ac4cd4a71a962239da1f94"><enum>(c)</enum><header>Consultations</header>
<paragraph id="id1128F974A8A04356B6A5D61C1BFCC181"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="IDe10c8e127d1a49bc9d18cc3b6998ea55"><enum>(2)</enum><header>Public
comment</header><text>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.</text>
</paragraph></subsection><subsection id="id397B000480404E12969E1A120A06D9E6"><enum>(d)</enum><header>Exercises</header><text>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.</text>
</subsection><subsection id="id3D135B93B3D64F7B81E34265754C7187"><enum>(e)</enum><header>Report and
consultation</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idE474F0F566A9408C8DC45396C99F2F1A"><enum>233.</enum><header>Automated
Targeting System</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id29E14E7503F647979286E5041511D326" style="OLC">
<section id="idDA34FB0FBA174095829C67EF6A77CE19"><enum>318B.</enum><header>Automated
Targeting System</header>
<subsection id="id915E082CB9B943068D5FFFFC7FB01C99"><enum>(a)</enum><header>Component</header><text>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—</text>
<paragraph id="idAB47C3E99C4E45AFA93A7F134E1E08A3"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="idE8E266FF88BD42D892E70338626C1D41"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="id76A5F2D5853C4383B9242E2006C23ED0"><enum>(b)</enum><header>Trade
resumption plan</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id50115FD0CDAB485DA6CC3119C5A116C9"><enum>234.</enum><header>Drawback for
exported merchandise</header>
<subsection id="id80C7CDEBDF174363BCC07E305CE488E2"><enum>(a)</enum><header>In
general</header><text>Section 313 of the Tariff Act of 1930 (19 U.S.C. 1313) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idCB001CB2ACA949A685EFC1CA82FF15D0" style="OLC">
<section id="id6A8F889996BF4D40A83B83BAC91C1101"><enum>313.</enum><header>Drawback for
exported merchandise</header>
<subsection id="ID36c433545794427ba84cfe184968be6a"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="ID828b6092ff4d491184dee839db520b40"><enum>(1)</enum><header>Bill of
materials</header><text>The term <term>bill of materials</term> means records
kept in the ordinary course of business that identify each component
incorporated into an article.</text>
</paragraph><paragraph id="IDf76dbc8e0330471694bcd1de0e97edb7"><enum>(2)</enum><header>Destroyed</header><text>The
term <term>destroyed</term> 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.</text>
</paragraph><paragraph id="IDdf047035ff3843ad8ec9714312403a57"><enum>(3)</enum><header>Directly</header><text>The
term <term>directly</term> means a transfer of merchandise or an article from 1
person to another person without any intermediate transfer.</text>
</paragraph><paragraph id="IDfb0ea2396add4825922d18952212a091"><enum>(4)</enum><header>Formula</header><text>The
term <term>formula</term> 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.</text>
</paragraph><paragraph id="ID1123701c05864d459048d0c2a80f5efc"><enum>(5)</enum><header>Fungible</header><text>The
term <term>fungible</term> means goods that are commercially identical to 1
another in all instances.</text>
</paragraph><paragraph id="IDf45a75061e3b4c549833f44727ee06d4"><enum>(6)</enum><header>Good subject to
Chile drawback</header><text>The term <term>good subject to Chile
drawback</term> 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).</text>
</paragraph><paragraph id="id3EAB1118DA1D48E7ADB074C7F13B49B4"><enum>(7)</enum><header>Good subject to
NAFTA drawback</header><text>The term <term>good subject to NAFTA
drawback</term> 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)).</text>
</paragraph><paragraph id="ID04fd94a923424ead941220e88b84b4bf"><enum>(8)</enum><header>HTS</header><text>The
term <term>HTS</term> means the Harmonized Tariff Schedule of the United States
(19 U.S.C. 1202).</text>
</paragraph><paragraph id="IDab3e27bd25004503a264408a1ff8bfa5"><enum>(9)</enum><header>Incorporated
into</header><text>The term <term>incorporated into</term> means any operation
by which merchandise or an article becomes classifiable in a different 8-digit
HTS subheading number.</text>
</paragraph><paragraph id="ID6f47358783f2454eb10884cc1f5e1030"><enum>(10)</enum><header>Indirectly</header><text>The
term <term>indirectly</term> means a transfer of merchandise or an article from
1 person to another person with 1 or more intermediate transfers.</text>
</paragraph><paragraph id="ID5af34f3779a24d6b8b8ee6523f266a18"><enum>(11)</enum><header>Line
item</header>
<subparagraph id="id5E14809EB25C42829F73CF7326168894"><enum>(A)</enum><header>Import
entry</header><text>The term <term>line item</term> 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.</text>
</subparagraph><subparagraph id="idD00B11897D704E9E9521F5B3516B9444"><enum>(B)</enum><header>Designated
export</header><text>Line item means, for a designated export, the
identification of a commodity by HTS subheading number, Schedule B number,
declared value, and quantity.</text>
</subparagraph></paragraph><paragraph id="ID46391749a2cc4068935020614c13d294"><enum>(12)</enum><header>NAFTA
country</header><text>The term <term>NAFTA country</term> has the meaning given
that term in section 2 of the North American Free Trade Agreement
Implementation Act (19 U.S.C. 3301).</text>
</paragraph><paragraph id="ID75b4006daadd41f0912788cf0ffb49f3"><enum>(13)</enum><header>Schedule
B</header><text>The term <term>Schedule B</term> means the Department of
Commerce Schedule B, Statistical Classification of Domestic and Foreign
Commodities Exported from the United States.</text>
</paragraph><paragraph id="ID893b9c0a4b5f4e279d664b0f55b60274"><enum>(14)</enum><header>Substitute
merchandise; substitute article</header><text>The terms <term>substitute
merchandise</term> and <term>substitute article</term> mean—</text>
<subparagraph id="id06A0F94725A8429C99A919F692B65E33"><enum>(A)</enum><text>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);</text>
</subparagraph><subparagraph id="id314BC61B6E4A455C9F2671C73EDE392B"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="id1287A726AB5044A59ED1A43A2CEA1BFA"><enum>(C)</enum><text>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).</text>
</subparagraph></paragraph></subsection><subsection id="id3F02A765C4B64988B861744E442BDC14"><enum>(b)</enum><header>In
general</header>
<paragraph id="id57808DD5785B48329B5D3D2E94721505"><enum>(1)</enum><header>Drawback</header><text>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.</text>
</paragraph><paragraph id="id48C8D56835954D21AA40688C9507AA51"><enum>(2)</enum><header>Eligibility for
drawback for merchandise incorporated into multiple
articles</header><text>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.</text>
</paragraph></subsection><subsection id="IDc9bc397b2da14c18a99cc7b8d81a26c0"><enum>(c)</enum><header>Eligibility to
claim drawback</header>
<paragraph id="id89240C113DE54F67AA113BA3CF7DF13E"><enum>(1)</enum><header>Person making
claim</header><text>A person may claim drawback under this section if the
person—</text>
<subparagraph id="idCD786C1E65A34BA499D77E2B6808CC74"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id0C593AE615BB4611A934C6614AD00856"><enum>(i)</enum><text>imports the merchandise
on which the claim is based; or</text>
</clause><clause id="id2DE8945E02EA4C1DBA387D2474B0493F" indent="up1"><enum>(ii)</enum><text>obtains the importer’s permission
to claim the drawback and meets the requirements of paragraph (2); and</text>
</clause></subparagraph><subparagraph id="idB2FF12C79E9D4904A539A42B63F9335B"><enum>(B)</enum><text>exports the
merchandise or article on which the claim is based or obtains the exporter’s
permission to claim drawback.</text>
</subparagraph></paragraph><paragraph id="ID5d4579cedc044123bda49c1a70a7bdc4"><enum>(2)</enum><header>Special rules
for nonimporters</header>
<subparagraph id="idEA52FFBDCCAF47B7AED875D8EC745EEC"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="id3C229F4C915E4DE5AC5FB8C591A41A41"><enum>(B)</enum><header>Rules for
transfer</header><text>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.</text>
</subparagraph></paragraph><paragraph id="IDf5882bcf2d4d4ddd9694fe052267c7d3"><enum>(3)</enum><header>Claim for
drawback on merchandise incorporated</header><text>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.</text>
</paragraph><paragraph id="ID0a1b543791fa4e548dbd0598ab7ef8a2"><enum>(4)</enum><header>Electronic
filing</header><text>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.</text>
</paragraph><paragraph id="ID50f528bb36694e669fb50de7c0de1028"><enum>(5)</enum><header>Time limit for
claim</header><text>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.</text>
</paragraph></subsection><subsection id="IDf184e1283c4e44168e3a8a90dee28479"><enum>(d)</enum><header>Amount of
drawback</header>
<paragraph id="id63D7FFC4B94844C8A1250855846A7F85"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="id6749C1D823814375B8460FE8386B98BC"><enum>(A)</enum><text>the average of
the duties, taxes, and fees paid per unit of the designated import line item;
or</text>
</subparagraph><subparagraph id="id525BB99D63E94C0BAA5B1D79E0EF505E"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="ID733b564129764ad79e6833b4b9bd722e"><enum>(2)</enum><header>Exception</header><text>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.</text>
</paragraph><paragraph id="ID744f3804aac94bba9b816bc18be1b3d9"><enum>(3)</enum><header>Limitation</header><text>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.</text>
</paragraph></subsection><subsection id="ID84b969ef45a94374a4f92856b9d342e3"><enum>(e)</enum><header>Refunds,
waivers, or reductions under certain free trade agreements</header>
<paragraph id="ID738e3333d96d4b16bf55bc1a574d4d33"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="ID4d385ed2b8034cf588caf09988e4f66f"><enum>(A)</enum><text>the total amount
of customs duties paid or owed on the good on importation into the United
States; or</text>
</subparagraph><subparagraph id="ID22f6df3a84a746b89ee52a1512f1c055"><enum>(B)</enum><text>the total amount
of customs duties paid on the good on importation into the NAFTA
country.</text>
</subparagraph></paragraph><paragraph id="IDaecd03b177144f9090ddf6ffd4d954d8"><enum>(2)</enum><header>Special rule
for Canada</header><text>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.</text>
</paragraph><paragraph id="IDeafe0ba199fb4b3ab3ccb09c9e384453"><enum>(3)</enum><header>Special rule
for Chile</header>
<subparagraph id="idEFFCC07D07434762B60A10664B939157"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="ID28b081adcb404c60a41afa3c5c1fd200"><enum>(B)</enum><header>Amount of
Customs duties</header><text>The customs duties referred to in subparagraph (A)
may be refunded, waived, or reduced by—</text>
<clause id="ID29b769cd70e04f5a8067ec16d67c24f3"><enum>(i)</enum><text>100 percent
during the 8-year period beginning on January 1, 2004;</text>
</clause><clause id="ID6418133ab4c94b91ad6b721e533dbe8b"><enum>(ii)</enum><text>75 percent
during the 1-year period beginning on January 1, 2012;</text>
</clause><clause id="ID5e6e07bc49124d4c8cd50332e381e1d3"><enum>(iii)</enum><text>50 percent
during the 1-year period beginning on January 1, 2013; and</text>
</clause><clause id="ID0878b5269bc3432d92913257f6dc3b27"><enum>(iv)</enum><text>25 percent
during the 1-year period beginning on January 1, 2014.</text>
</clause></subparagraph></paragraph><paragraph id="ID936e3a8569a845b093028d2e58febbb2"><enum>(4)</enum><header>Fungible
merchandise exported to NAFTA country</header>
<subparagraph id="idD99089150EB940ECAD3A3B8F520ECBE0"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="IDe7b1cb4dd4e64445b892f2c57186ba55"><enum>(B)</enum><header>Fungible
merchandise exported to Chile</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="ID998699e4ba254b95b274d5763b18da34"><enum>(f)</enum><header>Proof of
exportation</header><text>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:</text>
<paragraph id="id7BAD3DC451A34850A4B62A7BF408996F"><enum>(1)</enum><text>The appropriate
record from the United States Government automated export system, unless such
system was unable to report the exportation.</text>
</paragraph><paragraph id="id468026E5540F45D7BD4D15691D71191F"><enum>(2)</enum><text>If the drawback
claims filed pursuant to subsection (e), the Canadian or Mexican entry
records.</text>
</paragraph><paragraph id="idE198272DC46D47798684E48B44DC0E8B"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="ID1c217180590c415f8ab93e08aaa8377f"><enum>(g)</enum><header>Special
eligibility rules</header>
<paragraph id="id589742F4BD2943938FAD83748E5F602C"><enum>(1)</enum><header>Vessels built
for residents of a foreign country</header><text>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.</text>
</paragraph><paragraph id="IDa2eb99a1f25740a6b8eff30a15dc60a5"><enum>(2)</enum><header>Destroyed
merchandise</header>
<subparagraph id="id42D51F15DA6E4ABBB489AC2D9DF75E71"><enum>(A)</enum><header>Eligibility for
drawback</header><text>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.</text>
</subparagraph><subparagraph id="idEF92DA7B34A548A690D570B2B52B3D58"><enum>(B)</enum><header>Amount of
drawback</header><text>Subject to subparagraph (C), the amount of drawback paid
for a claim filed pursuant to subparagraph (A) shall be—</text>
<clause id="id9D11EF4B353F420F9C1DFA1C6D77FD69"><enum>(i)</enum><text>the average
entered value per unit of merchandise, multiplied by</text>
</clause><clause id="id93EBB98B33BB4AC583D521081440DE34"><enum>(ii)</enum><text>the duty, tax,
and fee applicable to the designated line item of the merchandise, multiplied
by</text>
</clause><clause id="id29BC9F19F7E74FE880AF66286CA3BBD1"><enum>(iii)</enum><text>the number of
units claimed, minus 1 percent.</text>
</clause></subparagraph><subparagraph id="id90CD6C272F59482188DFDE24011502CF"><enum>(C)</enum><header>Offsetting
amounts</header><text>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).</text>
</subparagraph></paragraph><paragraph id="ID688e76f45bcc4973986af2975f240e76"><enum>(3)</enum><header>Agricultural
products</header><text>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.</text>
</paragraph><paragraph id="ID95dd2d1a265a4f86a1c71244229385b4"><enum>(4)</enum><header>Merchandise not
regularly entered</header><text>Imported merchandise that has not been
regularly entered or withdrawn for consumption shall not satisfy the
exportation requirement of this section.</text>
</paragraph><paragraph id="IDea55dd88a2284f9e80a828bfe876ac3e"><enum>(5)</enum><header>Flavoring
extracts; medicinal or toilet preparations; bottled distilled spirits and
wines</header>
<subparagraph id="idE024124AA96640DF802C2F65A5A27E98"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="idC5E7A76AF2F549B0AF8C58491907A939"><enum>(B)</enum><header>Bottled
distilled spirits and wines</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="ID7af9b04ac369443d9d96652666654895"><enum>(h)</enum><header>Prohibition on
other claims for drawback</header><text>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.</text>
</subsection><subsection id="IDff54e420ac724e8b944f55716e5ad14a"><enum>(i)</enum><header>Liability for
claim</header><text>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.</text>
</subsection><subsection id="ID9cec0a000a4d4245bc32d9dc1b339c4f"><enum>(j)</enum><header>Payment from
receipts of Puerto Rico</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id1477EC903F044F17819AF7DF4FF682A3"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="IDfdb208a2724a43e29c9c554d8522b544"><enum>(c)</enum><header>Technical and
conforming amendments</header>
<paragraph id="idD9CF5C1CBA214B3A9467792BB3FCF497"><enum>(1)</enum><header>Refunds</header><text>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.”.</text>
</paragraph><paragraph id="idCC4F2316820C466E9B86450CC118F58A"><enum>(2)</enum><header>Review of
protests</header><text>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 <quote>in accordance with section 505.</quote>.</text>
</paragraph></subsection><subsection id="ID55b96010c04b415a9fd632d261c386c8"><enum>(d)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section id="idF863C292740444C6BF181AC31C32E359"><enum>235.</enum><header>Final
authority over matters relating to customs brokers</header>
<subsection id="id7A7356F7DD354CFAB0115D5D5C6C1CE2"><enum>(a)</enum><header>In
general</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id1A57BFEFD47C4B72B431A75348388F7C" style="OLC">
<paragraph id="id0533A72DA59544FC8AE28D62F486A945"><enum>(3)</enum><text>The term
<term>Commissioner</term> means the Commissioner of
Customs.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id8BFF49FE84434259AEB51B94F788C0C0"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 641 of the Tariff Act of 1930 (19 U.S.C. 1641)
is amended by striking <quote>Secretary</quote> each place it appears and
inserting <quote>Commissioner</quote>.</text>
</subsection></section><section id="id8CC18A97E1084907ABE7FCB30F9DB7C6"><enum>236.</enum><header>Advisory
Committee</header><text display-inline="no-display-inline">Section 9503(c) of
the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) is
amended—</text>
<paragraph id="id45F0AB8FD7F4421EB812EF99B0D574B4"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>Advisory Committee on Commercial Operations of the United
States Customs Service</quote> and inserting <quote>Customs Commercial
Operations Advisory Committee</quote>;</text>
</paragraph><paragraph id="idD0532E344C3845539EB168C4E7989350"><enum>(2)</enum><text>by striking
<quote>commercial operations of the United States Customs Service</quote> each
place it appears and inserting <quote>customs commercial
operations</quote>;</text>
</paragraph><paragraph commented="no" id="id98929B4938F847AB903D6A19D5140328"><enum>(3)</enum><text>by inserting
<quote>, in consultation with the Secretary of Homeland Security,</quote> after
<quote>Secretary of the Treasury</quote> each place it appears; and</text>
</paragraph><paragraph id="id99D1F3A75CE54B07A4799188E6EDE40C"><enum>(4)</enum><text>by amending
paragraph (4) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idA792768AE4394D08AA19BC1E33500AB5" style="OLC">
<paragraph id="id6628FB7C97694D948694DD5FD4C7B4FA"><enum>(4)</enum><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idD099D6D8BF484E75BBF41B73D3D05D16"><enum>237.</enum><header>Study and
report</header>
<subsection id="id38D37A70B1AD4C3AB174639C0AC617EF"><enum>(a)</enum><header>Feasibility
study</header><text>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—</text>
<paragraph id="IDc154601f34fd490d846305173752841a"><enum>(1)</enum><text>detecting and
analyzing nuclear or radiological materials;</text>
</paragraph><paragraph id="ID401c9b4dc276460bbdfe387db7d94b17"><enum>(2)</enum><text>producing density
scans or x-ray scans of containerized cargo; and</text>
</paragraph><paragraph id="IDa167644ab277464a97397980d8bfcf6e"><enum>(3)</enum><text>recording unique
identification information for specific containerized cargo.</text>
</paragraph></subsection><subsection id="ID450052cb385b44d2bc142e9784d85013"><enum>(b)</enum><header>Elements of the
report</header><text>The report required by subsection (a) shall take into
account—</text>
<paragraph id="ID67c5d3b394c943e3a8d6d1988c6084df"><enum>(1)</enum><text>the
infrastructure requirements and limitations of a port;</text>
</paragraph><paragraph id="ID89c4be23221f4f21bd87448235ebe225"><enum>(2)</enum><text>the size of a
port;</text>
</paragraph><paragraph id="IDec16ca979a724d72a8164951da9a0326"><enum>(3)</enum><text>the maintenance
or improvement of the current average processing speed of containerized cargo
through a port;</text>
</paragraph><paragraph id="ID8e4894daa235495db12be4c2bc025056"><enum>(4)</enum><text>the scalability
of a nonintrusive scanning system to meet both current and future forecasted
trade flows;</text>
</paragraph><paragraph id="ID93c75ab637a84a5886f04909fb149768"><enum>(5)</enum><text>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;</text>
</paragraph><paragraph id="IDed6eb998b06147ee87e0b353aba4f27f"><enum>(6)</enum><text>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;</text>
</paragraph><paragraph id="IDe44b09178bd945f3afdd563769b17aac"><enum>(7)</enum><text>the potential
costs of installing and maintaining a nonintrusive scanning system in a
port;</text>
</paragraph><paragraph id="IDd13221d8587644eea49da0232e9a773c"><enum>(8)</enum><text>the ability of
administering personnel to efficiently manage and utilize the data produced by
a nonintrusive scanning system;</text>
</paragraph><paragraph id="IDc04562075a6d4aec82a2adc031a78e45"><enum>(9)</enum><text>the ability to
safeguard commercial data generated by or submitted to a nonintrusive scanning
system; and</text>
</paragraph><paragraph id="IDe7ccdf49f1c34e839c521bb52c8e3237"><enum>(10)</enum><text>the reliability
of currently available technology.</text>
</paragraph></subsection></section></subtitle><subtitle id="id2996271E7BCA4A95AD4232785AFA7FE3"><enum>D</enum><header>Staffing and
resources</header>
<section id="id69F0ADC15B8E407FBF0044E40B4ABA07"><enum>241.</enum><header>Staffing for
commercial operations and revenue functions of the Bureau of Customs and Border
Protection</header>
<subsection id="ID0f34873798d947b49ca22e1aa961c26a"><enum>(a)</enum><header>Findings</header><text>Congress
finds the following:</text>
<paragraph id="ID2a724543a31e4d39b73b17b91beb9c61"><enum>(1)</enum><text>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).</text>
</paragraph><paragraph id="ID7e0e3e1b5575478eaaebc2b55724dd59"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="IDe5f696b7fd8642cd8965e542075d5cac"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="ID63e5882b75844d44826bfe2375633609"><enum>(4)</enum><text>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.</text>
</paragraph><paragraph id="IDe71d55a7f6944227877e1304f989c54c"><enum>(5)</enum><text>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.</text>
</paragraph><paragraph id="ID098f310f99bc44a0b9c010301b5e9afa"><enum>(6)</enum><text>International
trade accounted for <fraction>1/10</fraction> of United States economic growth
50 years ago, and today accounts for <fraction>1/4</fraction> of that
growth.</text>
</paragraph><paragraph id="ID050d951977044af2a75b080a0d04775b"><enum>(7)</enum><text>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.</text>
</paragraph><paragraph id="ID31b1e3cd27d14f8c8ea660b6a04b8075"><enum>(8)</enum><text>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.</text>
</paragraph></subsection><subsection id="ID6baeb93e9f244d28a4a89c8ab5810028"><enum>(b)</enum><header>Authorization
for commercial operations and revenue functions</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="idF4C4492253FF4C37A79D84A46F6C240C" style="OLC">
<section id="idB4C38735F66447E6AF56F18F05828C0B"><enum>5A.</enum><header>Authorization
for commercial operations and revenue functions</header>
<subsection id="id189D24B9A15943D5B7A5BF10F67B45FA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<paragraph id="id1E8AAD432E974294AD91CDFAC12356FD"><enum>(1)</enum><text>$105,000,000 in
fiscal year 2007.</text>
</paragraph><paragraph id="id908E5CF4BCF64A83AA7DB7B5763B8858"><enum>(2)</enum><text>$162,500,000 in
fiscal year 2008.</text>
</paragraph><paragraph id="idA586754877DE471B8C6DCA5166E2BCDC"><enum>(3)</enum><text>$168,000,000 in
fiscal year 2009.</text>
</paragraph><paragraph id="id174FDD2DCF214A81B361622FBF9C8860"><enum>(4)</enum><text>$174,000,000 in
fiscal year 2010.</text>
</paragraph><paragraph id="id3A7D66DAAEA3457FBF5B3E009FB33A55"><enum>(5)</enum><text>$180,000,000 in
fiscal year 2011.</text>
</paragraph></subsection><subsection id="id062A911C06B6466C800A5AF647912486"><enum>(b)</enum><header>Additional
personnel</header><text>The additional personnel authorized under subsection
(a) shall include:</text>
<paragraph id="IDb0d965c1d5ae4352978b66df71089552"><enum>(1)</enum><text>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—</text>
<subparagraph id="idFF153D8413424EADA5AC71E706B4DB87"><enum>(A)</enum><text>at least 1
additional officer at each port of entry in the United States; and</text>
</subparagraph><subparagraph id="id4C119E1237CD4E2EAC201E45A2DDC10F"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="ID08e3c484a2eb44e1b4850e6fc70d66c5"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="IDf8a63ced14024880930cb1a89ef4dc90"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="ID4453b761369c479eb939b8412e94e0ed"><enum>(c)</enum><header>Resource
Allocation Model</header><text>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—</text>
<paragraph id="ID67d19050b0824605978e4c1a0664fb20"><enum>(1)</enum><text>performing
revenue functions;</text>
</paragraph><paragraph id="ID7c7bea279034425b877acb5f56fb0e01"><enum>(2)</enum><text>enforcing
antidumping and countervailing laws;</text>
</paragraph><paragraph id="ID2e4a49b3429446489e4eac944de746b0"><enum>(3)</enum><text>protecting
intellectual property rights;</text>
</paragraph><paragraph id="IDa7029a78a98d48f482a865f2153af185"><enum>(4)</enum><text>enforcing
provisions of law relating to textiles;</text>
</paragraph><paragraph id="IDdb4322dbf2184b588c33630b1ce09c98"><enum>(5)</enum><text>conducting
agricultural inspections; and</text>
</paragraph><paragraph id="ID3cefa4b971994a26a7fe9fe246d5fe74"><enum>(6)</enum><text>enforcing
penalties.</text>
</paragraph></subsection><subsection id="idCC54D4B76B664E10B0399638AF8B508D"><enum>(d)</enum><header>Intellectual
property rights enforcement division</header>
<paragraph id="id55423C5DCF9246F082954EEEDAF5CF07"><enum>(1)</enum><header>Establishment</header><text>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 <quote>Division</quote>). The Division
shall be headed by a Director.</text>
</paragraph><paragraph id="ID058bdde3b4094e73aee55ba2749602ca"><enum>(2)</enum><header>Purpose</header><text>Oversight
of all activities related to intellectual property rights within the Bureau of
Customs and Border Protection shall be centralized in the Division.</text>
</paragraph><paragraph id="id5A4F12A63D054D279C8E5066E5EF8A8F"><enum>(3)</enum><header>Duties of the
Director</header><text>The Director shall—</text>
<subparagraph id="id12D64181C1884187B5DE11A161AF3503"><enum>(A)</enum><text>increase
enforcement cooperation between customs agencies of foreign governments and the
United States;</text>
</subparagraph><subparagraph id="id8CC5B5E09C8B4BFE95745B474CFC4DE1"><enum>(B)</enum><text>assist in
intellectual property rights enforcement capacity building in countries
identified as either a <quote>Priority Foreign Country</quote>, or on the
<quote>Priority Watch List</quote> or the <quote>Watch List</quote> pursuant to
section 182 of the Trade Act of 1974 (19 U.S.C. 2242);</text>
</subparagraph><subparagraph id="idCA3A870BECFA4E15870596FE88DA1C1D"><enum>(C)</enum><text>consult with the
private sector in training officers of the Bureau of Customs and Border
Protection in the detection and identification of counterfeit products;</text>
</subparagraph><subparagraph id="idC4654ADD24094CDA96E84FC70D27255E"><enum>(D)</enum><text>assist in the
development and coordination of intellectual property rights training at the
United States ports; and</text>
</subparagraph><subparagraph id="idDE30A2B334054299AFA04720CD7451BC"><enum>(E)</enum><text>coordinate with
other agencies, departments, and personnel of the United States Government with
respect to the enforcement of intellectual property rights.</text>
</subparagraph></paragraph><paragraph id="IDa3827331a98c438788f37070bb1a9223"><enum>(4)</enum><header>Staffing</header>
<subparagraph id="idF57E09434B9345C0855437BCAFFBB6E2"><enum>(A)</enum><header>Customs and
Border Protection</header><text>The Commissioner shall increase the staff and
resources of the Bureau of Customs and Border Protection that are assigned to
enforce intellectual property rights—</text>
<clause id="ID30487b9fcebd4f55bc456ece73cb5c4f"><enum>(i)</enum><text>by hiring 10
additional attorneys and assigning at least 10 attorneys to the Division;
and</text>
</clause><clause id="ID8acda3acb0e74d868a3c076ee3b4d498"><enum>(ii)</enum><text>by hiring 5
additional auditors and assigning at least 5 auditors to the Division.</text>
</clause></subparagraph><subparagraph id="idA66F799332C44E3C9ED9940A1B9107BD"><enum>(B)</enum><header>Bureau of
Immigration and Customs Enforcement</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID7653a95a297d44e49ea9751a35c16121"><enum>(5)</enum><header>Authorization
of appropriations</header><text>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:</text>
<subparagraph id="IDd58e34cfc83649b6a2a7e6219334c782"><enum>(A)</enum><text>$3,000,000 for
fiscal year 2007.</text>
</subparagraph><subparagraph id="IDcff5400afae942d5aaeeb95ea00a1a73"><enum>(B)</enum><text>$3,400,000 for
fiscal year 2008.</text>
</subparagraph><subparagraph id="ID69d75079b4f9490e9dad925e113ec81c"><enum>(C)</enum><text>$3,800,000 for
fiscal year 2009.</text>
</subparagraph><subparagraph id="ID2e9af480fe7547f3b58c1e259cc23294"><enum>(D)</enum><text>$4,200,000 for
fiscal year 2010.</text>
</subparagraph><subparagraph id="idCBFAB2255DC044CDBFC8F5E6DF5A607A"><enum>(E)</enum><text>$4,600,000 for
fiscal year 2011.</text>
</subparagraph></paragraph></subsection><subsection id="ID2571a2ff301c40b2b00830e40950f2e9"><enum>(e)</enum><header>Enforcement
other than intellectual property rights enforcement</header><text>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.</text>
</subsection><subsection id="IDd29c61591b924f9eab47847068f4c64a"><enum>(f)</enum><header>Regulations to
implement trade agreements</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDd4a2155cc89c41e0b47e6780fa14d147"><enum>(c)</enum><header>Report by the
Comptroller General</header><text>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—</text>
<paragraph id="ID353ef84864ad4ed0bad2b5410f33e67e"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="ID292d738906414dcd97e1ebf51b861706"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="IDe1b4ca624830471eaae049ee7985d31a"><enum>(3)</enum><text>any
recommendations for the further dedication of resources needed to facilitate
trade, ensure compliance with United States trade laws, and protect customs
revenue; and</text>
</paragraph><paragraph id="id362087B4D3324CA5B2078FBFF5369CCB"><enum>(4)</enum><text>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.</text>
</paragraph></subsection><subsection id="id9977B44B46F54ED0BE50958EB5E009EB"><enum>(d)</enum><header>Hours of
operation</header>
<paragraph id="id29C93AEE13A044E9B6F536C9165DCB91"><enum>(1)</enum><header>Study</header><text>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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC1CBC9E860734D35B27AE8CAB828592E"><enum>(2)</enum><header>Pilot
program</header><text>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.</text>
</paragraph></subsection></section></subtitle><enum>III</enum><header>Authorization
of appropriations for other trade agencies </header>
<section id="id8448B467667840289D48C94EA12BE93A"><enum>301.</enum><header>Authorization
of appropriations for United States International Trade Commission</header>
<subsection id="IDda535432b7eb42caa59710015b3edb2d"><enum>(a)</enum><header>Fiscal year
2007</header><text>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.</text>
</subsection><subsection id="IDf56033514f974c9bb00453eb1de0d015"><enum>(b)</enum><header>Fiscal years
2008 and 2009</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id952BB32AEFFC449ABE122B4647BEBF08" style="OLC">
<clause id="ID58a27f5a9413415c8f1ccc2414e7981d"><enum>(i)</enum><text>$67,100,000 for
fiscal year 2008.</text>
</clause><clause id="IDd87636f691e34c9abd6c7cea8ec8b108"><enum>(ii)</enum><text>$69,600,000 for
fiscal year
2009.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID69756329b29243569f2a85051f30232e"><enum>302.</enum><header>Authorization
of appropriations for the Office of the United States Trade
Representative</header>
<subsection id="IDf5449c706dd64f25bb99f033c0f72787"><enum>(a)</enum><header>Fiscal year
2007</header><text>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.</text>
</subsection><subsection id="ID0236a6a7525848958cd70d077580bead"><enum>(b)</enum><header>Fiscal years
2008 and 2009</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id11BAAD74200E4D5AAD54B41E253D012C" style="OLC">
<clause id="ID00852086be724754ab0c977d63478160"><enum>(i)</enum><text>$49,700,000 for
fiscal year 2008.</text>
</clause><clause id="ID142af9636c644a1096513e102b961b88"><enum>(ii)</enum><text>$51,600,000 for
fiscal year
2009.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>IV</enum><header>Miscellaneous
Provisions</header>
<section id="id9A60F8C2A943407F99F2410338ED7A9B"><enum>401.</enum><header>Methamphetamine
and methamphetamine precursor chemicals</header>
<subsection id="ID1fbf007977ff406cb81dfe7eff279ed7"><enum>(a)</enum><header>Definition</header><text>In
this section, the term <term>methamphetamine precursor chemicals</term> means
the chemicals ephedrine, pseudoephedrine, or phenylpropanolamine, including
each of the salts, optical isomers, and salts of optical isomers of such
chemicals.</text>
</subsection><subsection id="id707D099B85AB44AC824B4271D9A7B622"><enum>(b)</enum><header>Compliance with
performance plan requirements</header><text>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.</text>
</subsection><subsection id="idB8234DB357184C84BB022CF34F8624EB"><enum>(c)</enum><header>Study and
report relating to methamphetamine and methamphetamine precursor
chemicals</header>
<paragraph id="idA66C9E8CDE074C64941971ED6D1D3F9C"><enum>(1)</enum><header>Analysis</header><text>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—</text>
<subparagraph id="idD3C61C6DAF5B4FAE9D8F535E3A49AC6A"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="idCE30046BFB7D44B287FF441EEB514FB4"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="idA80FD389453F4AB48085B0112B1C9B48"><enum>(C)</enum><text>identify emerging
trends in smuggling techniques and strategies.</text>
</subparagraph></paragraph><paragraph id="id51AACD935B174B4DAD5DB9779557E2D9"><enum>(2)</enum><header>Report</header><text>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—</text>
<subparagraph id="id5686C950308F4FDAA903CD59241E25AB"><enum>(A)</enum><text>the analysis
described in paragraph (1); and</text>
</subparagraph><subparagraph id="id9934703BA267418BA561F2BAE65E4BA4"><enum>(B)</enum><text>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).</text>
</subparagraph></paragraph><paragraph id="idAADCE5553E994D0CAA8BEAABB36D26C9"><enum>(3)</enum><header>Availability of
analysis</header><text>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).</text>
</paragraph></subsection></section><section id="id4D20E4A9186E485599B7E43E03257FBC"><enum>402.</enum><header>United States
port and terminal operator competitiveness</header>
<subsection id="IDc490524c92404c568cc482669165e61f"><enum>(a)</enum><header>Review and
report on port competitiveness</header><text>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.</text>
</subsection><subsection id="IDe051be6203c74ee49c5c8ca9622547c2"><enum>(b)</enum><header>Content of
review</header><text>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.</text>
</subsection><subsection id="IDbd990323cd4e48e9b28683325b66e787"><enum>(c)</enum><header>Report</header><text>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.</text>
</subsection></section><section id="id4C73715A443B4791AB23D54E4C5957E6"><enum>403.</enum><header>Charter
flights</header><text display-inline="no-display-inline">Section 13031(e)(1) of
the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(e)(1)) is amended—</text>
<paragraph id="id173B00D49AB6461DBCE4EBDD68E2D58B"><enum>(1)</enum><text>by striking
<quote>(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))</quote> and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idE4F9D3A3925E4A39979576FCB1FB03DC" style="OLC">
<paragraph id="id8307CC55EA3D422FB3181D57F6FF499F"><enum>(1)</enum><header>In
general</header>
<subparagraph id="id385E1A3CC7C241C49A29F6DE5AED1A93"><enum>(A)</enum><header>Scheduled
flights</header><text>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))</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID879cc37e0d57479ea01b0c4331ab38db"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idFAD43F1AF4B048B9B735D0776C51FC0B" style="OLC">
<subparagraph id="IDb31410b7070340b5a828458de76ebdc3"><enum>(B)</enum><header>Charter
flights</header><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idA7ED16B098164A90AD9FF441D979441A"><enum>404.</enum><header>Technical
amendments to customs modernization</header>
<subsection id="IDc0025e15d8374a61a83161ff0e619e2c"><enum>(a)</enum><header>Entry of
merchandise</header><text>Section 484(a) of the Tariff Act of 1930 (19 U.S.C.
1484(a)) is amended—</text>
<paragraph id="id53637C56C800462A9E9E0DFA358253CB"><enum>(1)</enum><text>in paragraph (1),
by amending subparagraph (A) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id355CFBDE564B48489DFBC0CDBE765B85" style="OLC">
<subparagraph id="id5B61F51725BD4C61B7345BAA094C5B28"><enum>(A)</enum><text>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;</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDbbf7825ec33e443897d51ad04210dca6"><enum>(2)</enum><text>in paragraph
(2)(A), in the second sentence, by inserting after <quote>covering</quote> the
following: <quote>merchandise released under a special delivery permit pursuant
to section 448(b) and</quote>.</text>
</paragraph></subsection><subsection id="ID8aa818f579dc4658ace626dd94d63e5f"><enum>(b)</enum><header>Refunds and
errors</header><text>Section 520(a) of the Tariff Act of 1930 (19 U.S.C.
1520(a)) is amended—</text>
<paragraph id="IDad47bbdf037b4769a88cc781b8eea94d"><enum>(1)</enum><text>in paragraph (1),
by striking the semicolon at the end and inserting a period;</text>
</paragraph><paragraph id="ID80266555ab32490eb41fd2e43c44de03"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>; and</quote> at the end and inserting a period; and</text>
</paragraph><paragraph id="IDe45c7fd46e5244c3802372ba188579fa"><enum>(3)</enum><text>in paragraph
(4)—</text>
<subparagraph id="IDa421f156912d4dbda3e43e0ff075073a"><enum>(A)</enum><text>by inserting
<quote>an importer of record declares or</quote> before <quote>it is
ascertained</quote>; and</text>
</subparagraph><subparagraph id="IDbbd8179ed8e74e08b332e0b0b6f24919"><enum>(B)</enum><text>by striking
<quote>by reason of clerical error</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID8edcc58605a84ccb90df965aab9dcc2e"><enum>(c)</enum><header>Entry from
warehouse</header><text>Section 557(a) of the Tariff Act of 1930 (19 U.S.C.
1557(a)) is amended—</text>
<paragraph id="ID3720ced3076d44a083ce868e22b36fba"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="ID4aa1016782c843e79383d19ce616a756"><enum>(A)</enum><text>in the second
sentence, by inserting after <quote>the date of importation</quote> the
following: <quote>, 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</quote>; and</text>
</subparagraph><subparagraph id="IDe7e41420df5c4a31a9b105fd953d9ea7"><enum>(B)</enum><text>in subparagraph
(A), by inserting after <quote>the date of importation</quote> the following:
<quote>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</quote>; and</text>
</subparagraph></paragraph><paragraph id="ID5a8febbd446447a3828512fed69f9e8d"><enum>(2)</enum><text>in paragraph (2),
by inserting after <quote>the date of importation</quote> the following:
<quote>, 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,</quote>.</text>
</paragraph></subsection><subsection id="ID15c292c30bfc4d24be5dc2dbb1e59ce0"><enum>(d)</enum><header>Abandoned
goods</header><text>Section 559 of the Tariff Act of 1930 (19 U.S.C. 1559) is
amended by inserting after <quote>the date of importation</quote> each place it
appears the following: <quote>, 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</quote>.</text>
</subsection><subsection id="ID50339f06e6114786a91b0880a90dda72"><enum>(e)</enum><header>Manipulation in
warehouse</header><text>Section 562 of the Tariff Act of 1930 (19 U.S.C. 1562)
is amended—</text>
<paragraph id="ID03ca18af1ae84b9084cac8d99796baa2"><enum>(1)</enum><text>by amending the
first sentence to read as follows: <quote>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.</quote>; and</text>
</paragraph><paragraph id="ID4b26de45985d47dfa93c66b635562b8b"><enum>(2)</enum><text>in the second
sentence, by striking <quote>All merchandise so withdrawn</quote> and all that
follows through <quote>except that upon permission therefor</quote> and
inserting <quote>Upon permission</quote>.</text>
</paragraph></subsection></section><section id="idCE070FD7BD2D4989A9E326CE220E7D00"><enum>405.</enum><header>Articles
repaired or altered</header>
<subsection id="idDAB3A1CEB17C40629DAB3C0C5A15AD9D"><enum>(a)</enum><header>In
general</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id6775DCC94BD2413FB4BEA92860F7C53D" style="OLC">
<subsection id="ID69848fd2e0c6499584b55095f3356eeb" indent="down1"><enum>(f)</enum><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID6b26b98637584dfca3d40bb9e6a64f2a"><enum>(b)</enum><header>Effective
date</header><text>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.</text>
</subsection></section>